Mugu Karnali Storage HEP

At a proposed 1,902 MW, Mugu Karnali is one of Nepal's largest storage projects in feasibility development. VUCL's official project page publishes a detailed current design basis; NEA Engineering Company describes the feasibility work as ongoing. Neither source establishes construction commencement, financial close or a firm commissioning date.

Summary

Mugu Karnali Storage HEP is a proposed 1,902 MW conventional storage project in the Karnali basin. The current primary project page does not describe it as pumped storage. It gives eight Francis units and 6,291.8 GWh of annual design energy, correcting the earlier wiki values of ten units and 5,883 GWh.

Specifications

Parameter	Value
Capacity	1,902 MW
Status	Pre-construction / feasibility under review
River	Karnali (Karnali Basin)
District	Mugu (registry primary); Bajura referenced in early materials
Province	Karnali Pradesh

Engineering

VUCL publishes a 283 m dam, 793.45 m³/s design discharge, eight 242.67 MW Francis units, 4,843.2 MCM of total storage and 2,238.95 MCM of live storage. NEA Engineering publishes a 276 m gross-head figure. These remain feasibility-stage design parameters rather than final construction quantities.

Parameter	Value
Units	8 × 242.67 MW Francis
Gross head	276 m
Dam height	283 m
Design discharge	793.45 m³/s
Total / live storage	4,843.2 / 2,238.95 MCM
Type	Storage

Output

VUCL publishes 6,291.8 GWh of annual design energy, split into 2,415 GWh dry-season and 3,876.8 GWh wet-season energy. These are design outputs, not an operating forecast.

Parameter	Value
Annual design energy	6,291.8 GWh
Dry-season design energy	2,415 GWh

Governance

VUCL is the licensed state-owned developer and NEA Engineering Company is the design consultant in the current official record. Public EOI and PPP reporting should be logged as dated procurement events; expressions of interest do not establish a selected partner, ownership control or financing close.

Parameter	Value
Developer	Vidhyut Utpadan Company Limited (VUCL)
Design consultant	NEA Engineering Company Limited
Development model	PPP proposals reported; final partner not established

Financial

VUCL publishes a base-2024 project cost described as "46,000 Crore" and a 75:25 debt/equity assumption. The currency and cost basis must be verified from the feasibility report before conversion into USD or cost-per-MW comparisons, so the wiki does not publish a converted total.

Schedule

VUCL describes a ten-year implementation duration. The current source set does not establish a firm construction-start or commissioning year.

Parameter	Value
Construction start	Not established
Commercial operation	Not established
Published duration	10 years

Current Status

As of 10 July 2026: pre-construction, with feasibility material under expert review and a separate 271.5 MW re-regulating-dam application visible in the current DoED register.

Dimension	Current position	Evidence
Design	1,902 MW storage; eight units; 6,291.8 GWh	VUCL project page
Feasibility	Ongoing / under expert review	NEA Engineering current project and annual-report material
Cascade	Separate 271.5 MW re-regulating-dam application	DoED application register
Construction	Not started	10 Jul 2026 verification

Recent Updates

Date	Update
2 Jul 2026	Current DoED register verified the separate re-regulating-dam application
10 Jul 2026	Wiki specification record reconciled to the current VUCL design page

Active Blockers

Blocker	Prevents	Required evidence
Feasibility basis remains under review	Final design and investment decision	Approved feasibility report
Main project, re-regulating dam and overlapping licence boundaries are not reconciled in one public record	Stable cascade and licence definition	DoED/VUCL boundary decision
Evacuation, financing and partner selection are not established	Construction readiness	Approved transmission and financing package

Top-Capacity Comparison

Mugu Karnali belongs to a small class of projects that individually exceed Nepal's entire current operating fleet:

Project	MW	Type	Status	Developer
Mugu Karnali	1,902	Storage	Feasibility / pre-construction	VUCL
Budhigandaki Hydroelectric Project	1,200	Storage	Pre-construction	Budhigandaki Co. Ltd.
Arun 3	900	Peaking RoR	Under construction	SJVN (India)
Upper Karnali	900	RoR	Stalled (18 yrs)	GMR (India)
Karnali Chisapani Project	10,800	Storage	Conceptual	None
Pancheshwar Multipurpose Project	6,720	Storage / multipurpose	Stalled before final DPR	Bilateral (Nepal/India)

Mugu Karnali is distinguished by its scale and published seasonal storage parameters. The current primary page does not establish pumped storage capability.

Significance

Mugu Karnali is relevant to long-horizon Storage Deficit and Firm Power analysis because its current design combines 1,902 MW with 2,415 GWh of dry-season energy. Its scale also makes transmission, financing, reservoir operation and the downstream cascade part of the project definition rather than secondary details. None of that design value should be counted as available capacity while feasibility and investment decisions remain pending.

Limitations & Controversies

Horizon risk. A ten-year implementation duration and the absence of a firm start date place the project outside near-term capacity planning.

Transmission gap. The official design includes an approximately 40 km, 400 kV double-circuit connection to the proposed Regil/Rengil hub. The downstream grid path and capacity needed to move 1,902 MW are not yet established in the project dossier; without them the asset would face Stranded Generation risk.

Feasibility depth. Published capacity, head, storage and energy figures remain subject to the approved feasibility and detailed design.

Partner and financing uncertainty. Expressions of interest and PPP reporting do not establish selected ownership, financing or reservoir dispatch control.

Competing Karnali priorities. The Karnali basin has multiple large projects competing for limited development and transmission bandwidth: Upper Karnali (900 MW, stalled), Phukot Karnali (426 MW, survey), Nalsyau Gad (410 MW, survey), Karnali Chisapani Project (10,800 MW, conceptual). Mugu Karnali must compete for developer attention, financing, and — critically — transmission capacity with projects at varying stages of readiness.