To enhance the Kathmandu Valley's power transmission and distribution system, the Nepal Electricity Authority (NEA) is building eight high capacity substations. In the Kathmandu Valley, substations with capacities of 400, 200, and 132 KV are being built.

The NEA has established a deadline of 2050 and is moving on with the construction of transmission and distribution infrastructure in Kathmandu Valley's key areas in a staged way to accommodate the anticipated demand for energy that could increase in the future.

The Kathmandu Valley is expected to have a peak demand for electricity of 3,100 megawatts by the year 2050. The process of acquiring land for substation building has begun.

A survey is being carried out in order to build a 220 KV ring with a 220 KV transmission structure around the Kathmandu Valley's outside boundary.

At Lapsiphedi, Matatirtha, Chobhar, Futung, Teku, Mulpani, and Thimi in Bhaktapur in Kathmandu, substations are being built. The building of the substations in Teku and Changunarayan is complete. To be operational by next June, both substations are now being built.

The NEA's Managing Director, Kulman Ghising, said that the land purchase procedure for building the Kathmandu Valley substation had begun.

During a inspection visit to the under-construction substations at Teku, Futung, and Changunarayan, MD Ghising gave instructions to the project management and construction experts to finish the substations' construction within the allotted time.

"The management of electricity supply became easier this winter because the demand for electricity in the Kathmandu valley did not increase as much. The substation should be finished by the winter of the following year, according to MD Ghising. At Tekustiti 66/11 KV, the 132/11 KV substation is being upgraded, while at Futung, a new 132/11 KV substation is being built. There will be two 45–45 MVA power transformers installed in each substation. At Futung substation, the Balaju-Chapli 132 KV double circuit transmission line will be "tapped," supplying power to the nearby region. 9 new feeders will be removed from Teku substation for local power supply, facilitating the provision of electricity in Kathmandu's central region.

Projects including the construction of new substations, automation of existing substations, undergrounding of electric cables, addition and strengthening of new feeders, and transformers are all underway to improve the reliability, quality, and modernity of the power supply in the Kathmandu Valley.

With the help of the Nepali government's investment, a concessional loan from the Asian Development Bank (ADB), and a loan from the Japan International Cooperation Agency (JICA), the transmission and distribution system improvement has advanced.

Following the interruption of the Thankot-Chapagaon-Bhaktapur 132 KV transmission line's construction in the Khokna, Bummati, Harisidhi, and Lamatar areas of Lalitpur, which is thought to be crucial for improving the Kathmandu Valley's electricity supply, the process of building a 132-11 KV substation in Chobhar, Kathmandu, has advanced. In the substation, there will be two power transformers with a combined 45 MVA capacity.

On the area owned by Himal Cement next to the dry port, the process of acquiring the 12 ropani of land needed for substation building is under progress.

Following the interruption of the Thankot-Chapagaon-Bhaktapur 132 KV transmission line's construction in the Khokna, Bummati, Harisidhi, and Lamatar Lalitpur areas, which is thought to be crucial for improving the Kathmandu Valley's electricity supply, the process of building a 132-11 KV substation in Chobhar, Kathmandu, has advanced. The substation will contain two 45 MVA power transformers.

On the area owned by Himal Cement next to the dry port, the process of acquiring the 12 ropani of land needed for substation building is under progress.

Due to regional challenges, work on the 400 and 220 132 11 KV substations in Lapsifedi was halted. To distribute the electricity generated by the hydroelectric dams constructed in the Kathmandu valley's Tamakosi and Sunkosi river watersheds, the Lapsiphedi substation will be constructed. The installation of a 10 kilometer transmission line from Lapsiphedi to Changunarayan substation is hampered by a local problem.