Nepal has a very high potential for developing hydropower, which is a perfect source of clean energy. Theoretically, this mountainous country has the potential to produce 83,000.00MW, however projects that are technically and financially viable is estimated to be around 45,000.00MW.

In recent years, the Government of Nepal has formulated policies to encourage private sectors to develop hydropower projects. Hence Dhaulagiri Kalika Hydro Limited (DKHL) was established with the aim of developing hydropower projects in Nepal.

Darbang Myagdi Hydro-Electric Project (DMHEP) is one of the projects being developed by Dhaulagiri Kalika Hydro Ltd. This is a 25MW, Run-of-River type hydropower project located in Darbang, Malika Gaon Palika, Myagdi District, Gandagi Province of Nepal.

The project utilizes the water from Myagdi River which is a snow-fed perennial river having its sources at Dhaulagiri, Churen and Gurja Himal. The catchment area is 893km2 and the design discharge of 31.4m3/s through the gross head of 104m. The installed capacity of the project is 25 MW and the estimated annual energy generation is 150.08 GWh.