NEA, German partners break ground on Lekhnath-Damauli 220 kV Transmission Line Project

DAMAULI: The groundbreaking for Lekhnath-Damauli 220 kV Transmission Line Project took place on Wednesday at the Damauli Substation, the Nepal Electricity Authority (NEA) and German partners said.

Officials said the development will strengthen Nepal’s regional grid and speed up the evacuation of hydropower generation.

Co‑financed by Germany through KfW Development Bank, the project includes the construction of a 45 km, 220 kV double‑circuit transmission line and the development of modern gas‑insulated substations in Lekhnath and Damauli. With an estimated transmission capacity of around 1,000 MW, the line is expected to improve grid reliability and enable efficient evacuation of electricity from hydropower plants in the region, including the Tanahun Hydropower Project.

The ceremony was attended by NEA Managing Director Hitendra Dev Shakya, German Ambassador to Nepal Udo Volz, Michael Sumser, Director of KfW Development Bank for Bangladesh and Nepal, and senior representatives from the German Embassy, KfW, GIZ, local governments and other stakeholders.

“The expansion of reliable transmission infrastructure is essential for Nepal’s growing energy needs,” Ambassador Udo Volz said. “Germany is proud to partner with Nepal in strengthening its electricity grid and enabling the use of its vast renewable energy potential. Projects like this ensure that clean energy reaches homes, businesses and industries, contributing to sustainable economic growth.”

Officials said the project is part of a long‑standing energy partnership between Nepal and Germany. German financial cooperation has supported hydropower development in Nepal for decades, beginning with projects such as Lower Marsyangdi and Middle Marsyangdi, and later shifting focus towards transmission strengthening and system management, including the Chilime-Trishuli transmission line and the National Load Dispatch Centre.

German technical cooperation implemented by GIZ will complement the infrastructure investments by supporting policies, systems and skills to ensure that expanded electricity infrastructure delivers benefits for people and businesses. In Gandaki Province, GIZ has supported Pokhara Metropolitan City in developing a five‑year Municipal Energy Plan, helped establish electric vehicle charging stations in Pokhara and Damauli, and assisted integration of two micro‑hydropower plants in Baglung into the national grid.

Project backers said the Lekhnath-Damauli line will provide the foundation for greater use of clean electricity, including electric mobility and other low‑carbon solutions, and will help reduce Nepal’s reliance on imported fossil fuels. KfW’s financing together with GIZ’s technical support was presented as a comprehensive approach by German Development Cooperation to support Nepal’s transition towards a reliable, sustainable and climate‑friendly energy system.