Nepal's 40 MW Rahughat Hydropower Project Initiates Final Testing, Set for Commercial Operation

The much-anticipated 40-megawatt (MW) Rahughat Hydropower Project in Myagdi, a crucial infrastructure development for Nepal's energy sector, has successfully completed its physical construction and equipment installation phases. The project, spearheaded by Raghu Ganga Hydropower, a subsidiary of the state-owned Nepal Electricity Authority (NEA), is now in its final stages of testing before commencing commercial electricity production.

According to Ganesh KC, Managing Director of Raghu Ganga Hydropower, the project is on the cusp of full operation. Comprehensive testing of critical components, including the dam, desander, tunnel, and switchyard, has been successfully concluded. Furthermore, one of the two 20 MW generating units has undergone successful testing, with the second unit commencing its trial run on Sunday. This final testing phase is expected to last between seven to ten days, after which the project aims to begin feeding electricity into the national grid.

The Rahughat project's infrastructure is impressive, featuring a dam located at the confluence of Raghu Ganga-4 Dagnam and Ward No. 5 Jhi, a 6.27-kilometer-long main tunnel, and two water-desanding basins. The powerhouse, situated at Tilkenichaur, has also been completed, and the installed electro-mechanical equipment is currently undergoing rigorous testing. Crucially, the switchyard, which facilitates the connection of generated electricity to the central transmission line, has been operational since May 25, ensuring a seamless integration into the national grid via the 220 kV (double circuit) Dana-Kushma transmission line, part of the Kaligandaki Corridor.

This project has a long and challenging history. The initial civil works contract was awarded to Indian contractor Jayprakash Associates (JP) on November 17, 2017, with a target completion of 45 months and a contract value of NPR 6 billion. However, the project faced significant delays due to a confluence of factors, including the COVID-19 pandemic, devastating floods and landslides, and persistent shortages of essential river-based construction materials. Project Manager Harish Agarwal of JP noted that the deadline was extended multiple times, with the project now nearing completion within its fourth extended period. The electromechanical contract, valued at USD 10.29 million, was signed with Bharat Heavy Electricals Limited (BHEL) in October 2019.

Financially, the Rahughat Hydropower Project has been supported by a USD 67 million concessional loan from the Indian Export-Import (Exim) Bank, complemented by joint investments from the Nepal Electricity Authority and the Government of Nepal. This public-private partnership model underscores the strategic importance of the project. Earlier attempts to develop the project faced setbacks, with an initial contract signed with IVRCL in 2009 being terminated in 2015 due to the contractor's financial difficulties, necessitating a new procurement process.

The completion of Rahughat is a momentous occasion for Myagdi district and the nation. Subin Shrestha, President of the Myagdi Chamber of Commerce and Industry, highlighted Rahughat's historical significance, considering it the 'gateway' for hydropower development in the region, being the first government-invested project there. Its initiation paved the way for numerous other hydropower ventures in Myagdi, with ten projects already completed since Rahughat began. The news of its long-awaited completion, after two decades, has generated considerable excitement among local communities and stakeholders.

Upon full operation, the Rahughat Hydropower Project is projected to generate an impressive 240.59 million units of electricity annually, as per the Power Purchase Agreement (PPA) signed in March 2019. This substantial contribution to the national energy supply will play a vital role in reducing Nepal's reliance on imported electricity, bolstering energy security, and supporting the country's broader economic development goals. The successful commissioning of Rahughat will serve as a testament to Nepal's commitment to harnessing its vast hydropower potential and attracting further investment in the renewable energy sector.