KATHMANDU, Nov 2: Koshi Province is emerging as a major hub for Nepal’s energy sector, with its total installed electricity generation capacity reaching 994 megawatts (MW) by the end of Fiscal Year (FY) 2025/26.
According to the latest Regional Economic Activity Study Report published by Nepal Rastra Bank (NRB), 64 completed hydropower projects across the province have a combined generation capacity of 977.2 MW. The addition of two solar power projects has further increased the province’s total capacity.
A 6.8 MW grid-connected solar project in Morang and a 10 MW solar project developed by Jhapa Energy Limited in Jhapa have contributed to the rise in total generation capacity.
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The province recorded a significant increase compared to the previous fiscal year 2024/25, when its total electricity generation capacity stood at 786.7 MW. Seven new hydropower projects were completed during the last fiscal year, adding 206.2 MW to the national electricity grid.
Among the districts, Solukhumbu leads Koshi Province in hydropower generation, with 10 operational projects producing 349.8 MW. Ilam ranks second, with 18 projects generating 200.8 MW, followed by Sankhuwasabha, where 10 projects contribute 136.7 MW.
Similarly, Taplejung generates 98.5 MW from nine projects, while Panchthar produces 71.9 MW from four projects. Okhaldhunga contributes 65.1 MW through five projects, and Bhojpur generates 31.9 MW from four projects. Tehrathum and Khotang produce 12.3 MW and 10.2 MW, respectively.
Meanwhile, construction of the 900 MW Arun III Hydropower Project is progressing, with the project expected to make a substantial contribution to both the provincial economy and Nepal’s overall electricity production.
According to the report, the project has achieved 75.81 percent physical progress and 61.28 percent financial progress as of mid-July. With an estimated investment of Rs. 188 billion, construction began in April 2018, and the project is targeted for completion by December 2028.
In addition, two major reservoir-based hydropower projects—the 1,063 MW Upper Arun and the 635 MW Dudhkoshi Hydropower Project—are currently in their preliminary stages of development.
The growing number of completed projects, alongside major hydropower developments in the pipeline, is expected to further strengthen Koshi Province’s position in Nepal’s energy sector and expand the country’s electricity generation capacity.
