Koshi Province Emerging as Power Hub; Produces 206.2 MW in a Year

Kathmandu: Koshi Province has been emerging as a key hub for the energy sector in the country, with the total generation capacity of 64 hydropower projects completed across various districts in Koshi Province reached 977.2 megawatts.

The latest annual 'Regional Economic Activity Study Report' released by Nepal Rastra Bank (NRB) shows the progress being seen in the province as of the fiscal year 2025/26.

With an addition of a 6.8 MW grid-connected solar project in Morang district and a 10 MW solar power project developed by Jhapa Energy Limited in Jhapa district, the province's total electricity generation capacity has reached 994.0 MW.

In the previous fiscal year 2024/25, the total generation capacity of electricity projects operating within the province stood at only 786.7 MW. During last year alone, seven new hydropower projects were completed in Koshi Province, adding a total of 206.2 MW to the national power system.

In district-wise generation, Solukhumbu district leads in Koshi Province, with 10 operational projects producing a total of 349.8 MW—the highest in the province. This is followed by Ilam district, where 18 projects generate 200.8 MW and Sankhuwasabha district, where 10 projects generate 136.7 MW.

Additionally, 98.5 MW of electricity is being generated from nine projects in Taplejung, 71.9 MW from four projects in Panchthar, 65.1 MW from five projects in Okhaldhunga, 31.9 MW from four projects in Bhojpur, 12.3 MW from two projects in Tehrathum and 10.2 MW from two projects in Khotang.

Meanwhile, construction of the 900 MW Arun III Hydropower Project—a venture with a significant impact on both the provincial economy and national production—is progressing rapidly. With an estimated total cost of Rs 188 billion, the project has witnessed 75.81 percent physical progress and 61.28 percent financial progress as of mid-July. Arun III Hydropower Project was commenced in April 2018 and the project is targeted for completion by December 2028.

Besides, construction of two large reservoir-based hydropower projects including 1,063 MW Upper Arun and the 635 MW Dudhkoshi hydropower projects are in the preliminary stage.