Nepal is second richest country in water resources in the world. It has total hydropower potential of 83000 MW. Out of which 44000 MW is found economically feasible and about 600 MW is developed which is about 1.5 % of economically feasible capacity. Hydro-electricity sector has only 1 % contribution on total energy demand. About 25% of the people of Nepal have access to electricity. General rural energy demand is fulfilled from forest and agricultural residues. Commercial and industrial energy demand is fulfilled by imported petroleum products or by coal.

It is necessary to reduce the use of imported fuel so as to reduce stress in foreign trade and to conserve greenery also. To promote the use of renewable hydro energy in affordable manner, mobilization of domestic fund and other support is necessary. So Government of Nepal has given priority in hydropower development and rural electrification in the country. In this regard, GoN has promulgated Hydropower Policy, Water Resources Act, Water Resources Regulation, Electricity Act and Electricity Regulation and Other Legal Provision to facilitate private investors.

Api Power Company Limited is comitted to operational excellance and believes in good governance, corporate citizenship and creating value for Stakeholders. Being a Leading and Responsible hydropower company of Nepal, Api has aligned its hydropower development plans as demanded by the ambitious hydropower goals of nation.

Api has numbers of Hydro Projects under development as mentioned below.

1. Naugarh Gad Hydroelectric Project (8.5 MW)

The Company undertook the task of developing a 8.5 MW Naugarh Gad Small Hydroelectric Project on Naugarh Gad river at Dethala VDC of Darchula district of Far Western Development Region as its 1^st  Project. This river originates from Api Himalayan Range and is a tributary of Chameliya River. The Power Purchase Agreement for the project was signed on B.S. 19^th Baisakh 2067 with Nepal Electricity Authority (NEA) and the power generation license was obtained from Ministry of Energy on B.S. 10^th Chaitra 2068. The company started its construction works of 8.5 MW Naugarh Gad Small Hydroelectric project on Magh 2070 and completed successful construction and began its commercial operation on 2^nd Bhadra 2072. The Project was successfully operated just in 18 months. The power evacuated is connected to 132 KV Balanch-Attariya Transmission line constructed by Chamelya Hydroelectric Project, Balanch Substation, Nepal Elecricity Authority through 4.5 km long 33 kV transmission line constructed by the Company.

The Project is financed under the Lead Management of Nepal Bank Limited (as a Lead Bank) with Nepal SBI Bank Limited, Prime Bank Limited, Global IME Bank Limited and Bank of Kathmandu Limited. 

2. Upper Naugarh Gad Small Hydroelectric Project (8 MW)

Upper Naugarh Gad Small Hydroelectric Project 8 MW is a Run-Off-River type Project. The Project is located at 5km upstream of Naugarh Gad Hydroelectric Project Intake which had been successfully operated by the Company. The Project is located in Naugarh Gaupalika (Previously known Dhuligada and Shikhar VDC's) of Darchula district in Far Western State. The Headworks and the Powerhouse are located at an elevation of 1040.2m and 877m from mean sea level. The Project has installed capacity of 8MW with 163.44m of gross head and 6.43m³/s at 40% of exceedence. The Company has obtained the Survey Licence of the Project on dated 7^th Jestha 2071 from Ministry of Energy through Department of Electricity Development and completed the detailed Survey of the Project. The Company has entered a Power Purchase Agreement PPA for the Project with Nepal Electricity Authority on dated 12^th Kartik, 2073. Company has also obtained the Generation License from Ministry of Energy, Department of Electricity Development on dated 14^th Poush, 2073. The Project has started its Commercial Operation from 13th Kartik, 2076 B.S.(30th October, 2019). The Powerhouse consits of two units of 4150 kVA generators which generate the electricity. The Power evacuated is connected to 132 KV Balanch-Attariya Transmission line constructed by Chamelya Hydroelectric Project, Balanch Substation, Nepal Elecricity Authority through 9 km long 33 kV transmission line constructed by the Company.

The Project is financed under the Lead Management of Nepal SBI Bank Limited (as a Lead Bank) with Prabhu Bank Limited. 

3. Upper Chameliya Hydroelectric Project (40 MW)

The 40 MW Project lies in darchula district of Mahakali zone in Far Western development region of Nepal. This project utilizes the 22.79 m³/s with gross head of 215m to generate 40MW power. The generated power will be evacuated through 17km long, 66kV double circuit transmission line from the project switchyard to Balanch Substation. The intake and weir site is proposed downstream of the confluence of Rugru Gad and Chameliya River at Tapoban VDC. Major structures of the project are diversion weir and Intake, Headrace Pipe, Surge Tank, Penstock pipe, Powerhouse and Tailrace canal. The powerhouse site is proposed at Guljar VDC, Darchula district at the confluence of Nwa Gad and Chameliya River The alignment runs along the left bank of the river. The Company had obtained the Survey Licence of the Project on dated 17^th Falgun, 2072 from Ministry of Energy through Department of Electricity Development and completed the detailed Survey of the Project. The Company has entered a Power Purchase Agreement PPA for the Project with Nepal Electricity Authority on dated 15th Falgun, 2075 B.S. Company has also obtained the Generation License from Ministry of Energy, Department of Electricity Development on dated 12th Ashwin, 2076 B.S.

Construction Work of the Project had been started from 1st Kartik, 2077 B.S. The project is financed under the Lead Management of Himalayan Bank Limited (as a Lead Bank) with Employee Provident Fund, Nepal Bank Limited, Rastriya Banijya Bank Limited, Nepal Bangladesh Bank Limited and Century Commercial Bank Limited.