40 MW Upper Chameliya Hydropower Project Begins Testing Phase

July 23, 2023 | Investopaper

The 40 MW Upper Chameliya Hydropower Project, constructed in Chameliya river in Darchula District, has begun its testing phase after the completion of the construction work.

API Power Company, the developer company of the project, initiated the testing procedures starting from Friday. The commercial production is expected to commence in about two weeks, with the official inauguration of the project scheduled for Sunday.

The generated electricity will be connected to Balanch substation of Nepal Electricity Authority.

Completed within a timeframe of 30 months and costing approximately eight billion rupees, the Upper Chameliya Hydropower Project is a major venture that holds considerable promise for the region’s power supply and overall development.

The project is being developed with 70 percent debt and 30 percent equity.

Various banks and financial institutions have provided loan financing to the project. Employees’ Provident Fund, Rastriya Banijya Bank Limited, Nepal Bank Limited, Nepal Bangladesh Bank Limited and Century Commercial Bank Limited have invested in the project under the leadership of Himalayan Bank Limited. The remaining fund is injected by the promoter company Api Power as equity.

Api Power Company had completed the construction of Naugarh Gad Hydropower Project with a capacity of 8.5 MW and connected it to the national transmission grid from Bhadra 2, 2072 BS. Similarly, the company had used the water of the same river as the second project to connect the 8-megawatt Upper Naugarh Gad Hydropower Project to the national grid on Karthik 13, 2076 BS. The electricity generated from both the projects is flowing through the Attaria-Balanch 132 KV transmission line of Nepal Electricity Authority.

About Upper Chameliya Hydropower Project

Upper Chameliya Hydropower Project will generate 264.1 million units of electricity annually. Out of the total  electricity production, the project will generate 30 percent in the dry season and the remaining 70 percent in the wet season.

The project has constructed the dam at Okhal of Api Himal Rural Municipality. It has rerouted the water from the Chameliya River with the help of a 6 kilometer-long 3.2 meter diameter penstock pipe. The project has built a powerhouse at Ghattegadh and bring the generated 40 MW electricity to Balanch Substation through a 16 kilometer 132 kV transmission line and connect to the national grid.

The project’s estimated first-year revenue from electricity sales is projected to be around Rs. 1.62 billion, with an annual growth rate of three percent for the following eight years.

Suggested Readings:

List Of Hydropower Projects In Nepal (Developed By Private Sector)

List Of Hydro-power Projects With Construction License


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