Kathmandu. Some important progress has been made this year in the energy sector, which has been established as the mainstay of the country’s economic development. The ambitious ‘Energy Roadmap’, which aims to generate a total of 28,500 megawatts of electricity by 2035, has been implemented.
The roadmap, which is considered important for the development of Nepal’s energy sector, also clearly mentions the volume of internal consumption and external sales. For the first time, Nepal’s electricity has reached Bangladesh. Although it is in the form of a ‘token’, 40 megawatts of electricity have been delivered to Bangladesh using the Indian transmission network.
Some important plans included in the government’s policies and programs and budget have not yet been started. Although the goal was to start large projects like Budhi Gandaki, Nalgad, Upper Arun, Dudhkoshi, it has not been implemented.
Meanwhile, the leadership of the Nepal Electricity Authority has changed. The long-standing unresolved tariff dispute of dedicated and trunk lines is moving towards resolution. The report prepared by a committee led by former Supreme Court Justice Girish Chandra Lal to resolve the same dispute has been made public.
The progress of national pride projects under the Ministry of Energy, Water Resources and Irrigation is satisfactory, although not remarkable. The progress of the Bheri Babai Diversion Project, which is a river diversion project, has been expected this year.
Although the tunnel construction of the Sunkoshi Marine Diversion Project has been completed, there are complaints that the work on the dam site and power house has not progressed in any significant way. This year, the ministry has taken forward the process of constructing transmission lines in public-private partnership.
Through the People’s Hydropower Program, a policy arrangement has been made to provide shares of Rs. 200,000 to Rs. 500,000 to the poor and disadvantaged citizens at a subsidized rate without collateral. The national grid has been expanded through an 11 kV line in Susta, which has been lagging behind for a long time.
The construction of Trishuli 3B Hub Substation and Chilime 220 kV line has been completed. Through this, the electricity generated from the Rasuwagadhi and Sanjen projects has been connected to the national system. The projects damaged by the floods of Asoj 11 and 12 have been reconstructed and the electricity generation and transmission systems have been repaired, making the electricity system sound.
The Upper Tamakoshi Hydropower Project, which was hit by the flood, is also being reconstructed and generating electricity. The work of the Electricity Regulatory Commission has been made more effective. The ‘Document Management System’ has been implemented as an online system.
The Electricity Bill, Water Resources Bill and Renewable Energy and Energy Efficiency Bill have also progressed in the parliamentary process. The long-stalled Power Purchase Agreement (PPA) has been opened and a positive initiative has been taken by extending the period for completing financial management.
The People’s Hydropower Program has been further revised and taken forward. In the meantime, irrigation facilities have been provided to 14,300 hectares through the Rani-Jamara-Kulariya Irrigation Project. The same project has also produced 4.71 megawatts of electricity.
Policy arrangements have been made that only the recommendation of the local government is sufficient to issue a license for a solar power project. From providing additional electricity to the industrial sector to creating an additional environment for investment in Nepal’s energy sector through diplomatic initiatives and efforts, work has been done in the meantime.
Bangladesh Electricity Export
After long diplomatic efforts, the historic inauguration of 40 megawatts of electricity flow from Nepal to Bangladesh through the Indian grid was held virtually on November 30.
The Minister for Energy, Water Resources and Irrigation, Deepak Khadka, Minister of Power, Government of India, Hon. Manohar Lal, and Advisor to the Ministry of Energy, Power and Minerals, Government of Bangladesh, Muhammad Fauzul Kabir Khan jointly inaugurated the project on behalf of Nepal.
The 400 MW electricity was transmitted through the Dhalkebar-Muzaffarpur 400 kV cross-border transmission line to the Indian grid and the Baharampur (India)-Bheramara (Bangladesh) cross-border transmission line.
A tripartite agreement on the purchase and sale of electricity was signed between the Nepal Electricity Authority, Bangladesh Power Development Board and NTPC Vidyut Vyapar Nigam Limited on 3 October 2024. According to the same agreement, the electricity generated by Nepal is sent to Bangladesh through the Indian transmission line.
This is the first agreement by Nepal to sell electricity in US dollars. This trilateral energy cooperation has further expanded the possibilities of electricity trade between Nepal, India and Bangladesh and has taken the energy cooperation between Nepal, India and Bangladesh to a new height.
Agreement to build high-capacity transmission lines
The meeting of the Joint Steering Committee at the level of Energy Secretary of Nepal and India was held last Falgun. The meeting agreed on some important issues. Nepal and India agreed on the construction of high-capacity transmission lines for inter-country electricity trade.
In the context of the government’s ambitious plan to generate 28,500 megawatts of electricity by 2035, the two countries also reached an agreement this year on the construction of a high-capacity transmission line. It is believed that the latest agreement will have an important meaning in providing further convenience in electricity trade through the expansion of the transmission network.
According to the Ministry of Energy, Water Resources and Irrigation, an important agreement has been reached regarding the capacity increase of two new and one currently operating transmission line to be constructed by 2034-35.
The meeting of the Joint Steering Committee at the level of Energy Secretaries of Nepal and India had agreed to construct a 400 kV transmission line between Nijgadh-Harnaiya-Motihari. Similarly, a 400 kV transmission line will be constructed between Kohalpur-Lucknow.
The currently operational Dhalkebar-Muzaffarpur 400 kV transmission line will be replaced with a high-capacity conductor. 800 MW of electricity is currently being imported and exported through that transmission line. Up to 1,000 megawatts of electricity will be imported and exported through the transmission line. The two countries have already agreed to construct the Inaruwa-Purnia and Dododhara-Bareilly transmission lines.
The capacity of both the transmission lines will be 400 kV. Similarly, the construction of the New Butwal-Gorakhpur 400 kV transmission line is currently underway. Since it is not enough to just generate electricity and a high-capacity transmission line is required to supply it to the regional market, the two countries have given it priority.
During the visit of the then Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India, the construction of a high-capacity transmission line had become necessary and urgent in the context of the agreement to export 10,000 megawatts of electricity to India.
Nepal Electricity Authority has been exporting electricity to India during the rainy season. Similarly, Satluj Vidyut Nigam, the promoter of the Arun III Hydropower Project, is also constructing a 400 kV transmission line. It can also be used in electricity trade.
A ‘construction joint venture’ will be decided for the construction of the proposed Inaruwa-Purnia and Dododhara-Bareilly 400 kV transmission lines. It will take necessary initiatives to complete the construction by 2028/29 and 2029/30 respectively.
The transmission line on the Nepal side will be constructed by Nepal Electricity Authority and Power Grid on the Indian side through a joint venture. The Authority will have 51 percent equity in it and Power Grid will have 49 percent equity. Similarly, a Chameliya-Jalijivi 220 kV transmission line will be constructed for easy electricity import and export in the Far West Province. A detailed project report is being prepared for that. The transmission line will be double circuit.
The Nepal side transmission line will be constructed by the Nepal Electricity Authority and the Indian side by Power Grid. The target is to complete the construction of the transmission line by December 2027. In the context of the Indian company Grandi Mallikarjuna Rao (GMR) having made final preparations for the financial management for the construction of the Upper Karnali Hydropower Project, a high-capacity transmission line will also be constructed in the Karnali Corridor.
It is believed that this will also pave the way for electricity trade between the two countries. The NEA has exported 1.66 billion 7.892 billion units of electricity to India, earning an income of Rs 12.71 billion 9.459 billion.
The NEA had exported electricity to India at an average of Rs 7.63 per unit. In a context where the private sector is seeking permission to export electricity, the agreement reached between Nepal and India on the construction of additional high-capacity transmission lines will pave the way.
The government is preparing to grant permission to the private sector to export electricity after passing the Electricity Bill currently under consideration in the parliament. The government and the private sector are taking meaningful initiatives in the energy sector with the aim of increasing production and expanding trade.
Overall, meaningful efforts have been made to accelerate the country’s energy sector this year. This will yield more results in the coming days. An initiative has been taken to accelerate the Pancheshwor Multipurpose Project. The necessary work of the New Butwal Substation and transmission line construction, which is a US aid project, has also begun.
The government has made a planned effort to reduce the delays in irrigation and river control projects as well as national pride projects and produce meaningful results.
प्रतिक्रिया दिनुहोस्