In the year 2009, as an immediate measure to address the impending energy crisis, Government of Nepal through Department of Electricity Development (DoED) forwarded eight projects (varying in capacity from 5 MW to 40 MW) studied by the Government (DoED) including Solu HEP for development by private developers (domestic and international) through a competitive bidding process. After meeting all technical and financial requirements of the bidding process and after bidding the highest amount (NPR 66 million), the joint venture of ICTC Group and Blue Energy secured the license for the development of this project in April 2010 and hence Upper Solu Hydro Electric Company (USHEC) was formed. 

USHEC started construction of the project in February 2015 and completed it in December 2019. Power generation from the project was started and evacuated to Grid from the month of March 2020.