Overview

The Upper Bhotekoshi Hydropower Project (UBHP) is a run-of-the-river hydropower plant situated in the Sindhupalchok District of central Nepal. Built on the Bhotekoshi River, a steep, glacier-fed tributary of the Sun Koshi River, this project is renowned for its high hydraulic head and significant contribution to Nepal’s private-sector-led electricity generation.

• Installed Capacity: 45 MW

• Commissioned: 2001

• Project Type: Run-of-the-river

• Owner: Bhotekoshi Power Company Pvt. Ltd. (subsidiary of Himal International Energy)

• River: Bhotekoshi River

Project Highlights

• Location: Near Barhabise, Sindhupalchok District, approx. 110 km northeast of Kathmandu

• Hydraulic Head: ~135 meters

• Turbines: 2 x 22.5 MW Francis turbines

• Annual Generation: Approx. 246 GWh

• Grid Connection: 132 kV transmission line to Lamosanghu substation

• License Type: Independent Power Producer (IPP) under BOOT model

Significance of the Project

1. Nepal’s First Major IPP Project

UBHP is widely regarded as Nepal’s first large-scale private sector hydropower project. Its successful development under a Build-Own-Operate-Transfer (BOOT) model helped pave the way for future Independent Power Producer (IPP) investments in Nepal’s energy sector.

2. Strategic Location

The Bhotekoshi River, originating near the Tibetan border, offers steep gradients and high water velocity—ideal for efficient energy generation through a compact system.

3. High Reliability and Quick Payback

With a relatively short tunnel and high head, the plant achieved high operational efficiency, making it attractive for private investment with quicker returns.

Technical Specifications

Development History

• Developed by Himal International Energy Pvt. Ltd., in partnership with foreign investors

• One of the first projects to benefit from foreign direct investment (FDI) in Nepal’s energy sector

• Construction completed and operations began in 2001

• Built under a 30-year BOOT agreement, after which the plant will be transferred to the Government of Nepal

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Natural Disasters and Resilience

1. 2015 Gorkha Earthquake

• The plant suffered structural damage and partial shutdown

• Powerhouse and transmission infrastructure were affected

• Rehabilitated and brought back online with support from NEA and private insurers

2. Glacial Flooding & Sediment Load

• The Bhotekoshi River, being glacier-fed, poses challenges due to high sedimentation during monsoon

• Upgrades in sediment traps and protective measures are ongoing

Socio-Economic Impact

• Employment Generation: Provided local job opportunities during construction and maintenance phases

• Infrastructure Development: Roads and facilities around the project area improved accessibility in upper Sindhupalchok

• Power Supply: Helps stabilize voltage and frequency in central and eastern regions of Nepal’s grid

• Foreign Investment Model: Set precedent for policy reforms in Nepal’s energy sector regarding FDI, licensing, and private participation

Future Prospects

• With the BOOT license expiring around 2031, discussions are underway for future operation, possible upgrades, or integration with other cascade projects

• Increasing focus on disaster resilience, automated controls, and climate-adaptive infrastructure

Conclusion

The Upper Bhotekoshi Hydropower Project stands out as a pioneer of Nepal’s private sector hydropower revolution. Despite challenges from natural disasters and extreme terrain, it continues to contribute clean, renewable electricity to the national grid. As one of the earliest successful IPP models in Nepal, UBHP has helped shape policies and inspire investment in hydropower development throughout the Himalayas.