Nepal starts work on $50 M New Butwal substation
Construction of a 400 kV substation and 18 km transmission line begins, strengthening Nepal’s grid and enabling cross-border clean energy trade with India.
Image for illustrative purposes
Nepal, Sunwal: Construction has begun on the 400 kV New Butwal substation and a new 18-km high-voltage transmission line that will connect the facility to the Nepal–India border. With an investment of around $50 M, the project is designed to support future energy exports, including up to 10,000 MW of clean hydropower over the next decade.
The initiative forms part of the MCC Nepal Compact and aims to reinforce Nepal’s electricity grid, reduce power leakage, and unlock regional energy trade opportunities. Once operational, the system will enable more reliable supply for households and businesses, while lowering operational costs and improving long-term energy security.
A launch ceremony was held in Sunwal, in the Nawalparasi (Bardaghat Susta West) district. The event was attended by Finance Minister Rameshwor Prasad Khanal, US Ambassador Dean R Thompson, MCC Resident Country Director Diane Francisco, MCA Nepal Executive Director Khadga Bahadur Bista and local representatives.
Minister Khanal said the project demonstrates Nepal’s commitment to expanding access to clean energy and boosting regional trade. Ambassador Thompson highlighted the broader impact of such infrastructure, noting that it “not only helps light homes and businesses but also creates opportunities for trade, growth, and progress across the region.”
MCA Nepal’s Executive Director Bista stated that the substation and transmission line mark a new chapter in strengthening Nepal’s energy security and will “deliver long-term benefits for Nepalis.”
Source: Online Khabar
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