Upper Piluwa Khola-3 Hydroelectric Project is located along the Piluwa Khola between confluence area with Sikhuwa Khola and confluence area with Lakhuwa Khola. The Project, optimized at an installed capacity of 4.95 MW, is a run-of-the-river type project with gross head of 128 m and design discharge of 5.02 m3/s. Net annual marketable energy to be generated from the Project is 28.41 GWh, out of which 4.90 GWh is dry season energy (Poush to Baiskah).

The riparian release for environmental requirement is considered as 0.096 m3/s for Piluwa Khola and 0.021 m3/s for Sikhuwa Khola which corresponds to 10% of the driest month’s flow of the river.