The Basochhu project uses water from two streams. The Basochhu, at 1800m above sea level, is tapped and brought to the Rurichhu basin to produce 24MW – the Upper Stage. The 40MW Lower Stage uses the tailrace water of the Upper Stage combined with the Rurichhu that has been diverted into a 74,000m3 reservoir. The water is piped through a 2.5km long penstock line to the second powerhouse. Basochhu Upper Stage was started in 1997 and was officially commissioned in January 2002, generating 24MW of power. According to the Bhutan Electricity Authority, the 64MW Basochhu project will help to meet the growing demand for and increase the reliability of power supply for western Bhutan.