Nepal’s largest hydropower project, the 456-megawatt Upper Tamakoshi Hydropower Project, began operating one of its six 76-megawatt units on 5 July 2021. Located on the Tamakoshi River in Dolakha district, the project is set to turn Nepal into a power surplus country during the wet season once it starts generating power from all its six units to the national grid. As a power surplus country, it will be capable of exporting electricity. Nepal Prime Minister KP Sharma Oli inaugurated the project via video conference.

The project will contribute to Nepal's national gross domestic product and reduce the import of electricity from India in the dry season. In the dry season—the winter months of December-February—Nepal’s Himalayan peaks do not melt, and low water flows lead to lower energy availability. The Upper Tamakoshi plant can generate electricity at full capacity for four hours during these winter months.

Mr. Bishnu Paudel, Minister of Energy of the Government of Nepal, estimates that the full project operation will contribute around 1% to the GDP and help boost industrial production.

The majority share (51%) of the Upper Tamakoshi Hydropower Limited is held by four public entities—Nepal Electricity Authority, Nepal Telecom, Citizen Investment Trust and Rastriya Beema Sansthan.

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Nepal starts operating its largest hydropower station