The 40 MW Rahughat Hydropower Project in Myagdi has been connected to Nepal’s national transmission system, with both of its 20 MW units beginning electricity generation.

Developed by Raghuganga Hydropower Limited, a subsidiary of the Nepal Electricity Authority (NEA), the project is located in Raghuganga Rural Municipality. Electricity generated from the project has been connected to the national grid through the Kaligandaki Corridor 220 kV transmission line.

The project has an annual generation capacity of 247.9 million units, with around 34% of its total energy expected to be generated during the dry season. It can also operate at full capacity for four hours during evening peak demand, supporting electricity supply when demand is highest.

Trial generation has started under the project's power purchase agreement with the NEA. Commercial operation will begin after 15 days of successful test production.

NEA Executive Director and Raghuganga Hydropower Chairman Dirghayu Kumar Shrestha said the project was completed despite challenging geographical conditions, the COVID-19 pandemic and flood-related difficulties.

The project is estimated to have cost Rs. 9.17 billion, excluding interest during construction. It was financed through investments from the Government of Nepal and the NEA, along with a concessional loan under the Exim Bank of India's Line of Credit.

Construction was carried out under an Engineering, Procurement and Construction (EPC) model. Jayaprakash Associates Limited of India was contracted for civil and hydromechanical works, while Bharat Heavy Electricals Limited handled electromechanical works. WAPCOS Limited provided construction supervision.

The project was initially planned as a 32 MW NEA project. After the construction contractor's poor performance led to termination of the initial contract, the project was restructured as a 40 MW project and advanced through Raghuganga Hydropower Limited, an NEA subsidiary.

With trial generation now underway, Rahughat is set to add 40 MW of capacity to the national grid and provide additional generation during Nepal's dry season.