Nepal's main source of energy is hydropower. Year after year, demand for electricity and peak loads of Nepalese hydroelectric power plants rise by 8-9%. Construction of hydroelectric power plant began with the support of the KfW (Development Bank of Germany - Financial Cooperation) 20 years ago on three dams on the Marsyangdi River. The middle dam, Middle Marsyangdi, is located approximately 170km west of Kathmandu.