KATHMANDU, Feb 1: Nepali hydropower developers may face the wastage of up to 1,200 MW of electricity during the peak production period of the upcoming monsoon season due to poor transmission lines and an inadequate distribution system.
According to energy sector analysts, Nepal’s power generation capacity has grown to around 4,000 MW. However, the distribution side has remained weak due to various problems, including forest-related issues, a lack of coordination between the Nepal Electricity Authority (NEA) and the private sector, and high compensation costs for land use for transmission lines.
Surya Prasad Adhikari, chairman of Green Energy Entrepreneurs Nepal, said the energy sector contributes around 15 percent to the country’s GDP. “This ratio can be doubled if the government focuses on making the distribution system efficient,” Adhikari said while speaking at a programme organised in the capital.
Construction of three int’l power transmission lines underway a...
The lack of transmission lines has been hindering the evacuation of electricity generated by many small hydropower projects with capacities of less than 10 MW. “If most of them are forced to shut down, it will create serious problems in electricity supply across the country,” Adhikari said.
In recent years, Nepal has become a net exporter of electricity, generating revenue of over Rs 18 billion by exporting power to neighbouring countries, including India and Bangladesh. Despite this, the country is facing a significant energy surplus, with 700–800 MW of electricity wasted daily, particularly during the monsoon, due to limited domestic demand, inadequate transmission infrastructure and, at times, limited export capacity to India.
The government has set a target of producing 10,000 MW of electricity in the next five years. So far, a total of 700 circuit kilometres of transmission lines have been installed to distribute electricity across the country.
Adhikari said government authorities lack a master plan to enhance the efficiency of existing transmission lines. “Due to poor coordination between the NEA and the private sector, there is also a mismatch between the capacity of installed transmission lines and the actual volume of electricity produced for distribution,” he said.
In several cases, transmission line capacity is limited to 132/220 kV where 400 kV lines are required. Rajan Dhakal, spokesperson for the NEA, said this has led to infrastructure problems in the Dordi Corridor and the Marsyangdi Corridor, among others.
Meanwhile, domestic manufacturers of steel towers used for transmission lines said government apathy has hindered efforts to achieve self-reliance in transmission-related infrastructure. Himansu Golchha, director of Hulas Steel, said the government has imposed a 7.5 percent excise duty and 13 percent VAT on the import of raw materials used for manufacturing steel towers.
