Nepal’s hydropower history is over a century old. However, Nepal is yet to able to generate more than 700 MW of power. Some 40 percent people, who are receiving power from the national grid, are facing uncertain hours of power cuts. However, only seven percent of the population gets the power from alternative energy sources, including solar, micro-hydro and others. There is no access to power for the 58 percent of population.
Electricity Department is the sole institution responsible for construction, generation, transmission and distribution of power; it is also given the authority to construct the east-west transmission lines. Without construction of transmission lines, one cannot expect any private investment and even Electricity Department cannot build any project. Electricity Department has monopoly over the transmission line. Due to its service oriented nature, Electricity Department is compelled to sell the electricity for which it pays a much higher price. Electricity Department is now busy to construct 592 MW project, including 456 MW Tamakosi.