NEA projects energy sufficiency by 2021

Kathmandu, Nov. 28: Nepal Electricity Authority (NEA) has projected power production of about 3,309 MW by 2020/21, sufficient to meet the domestic energy demand.

Currently, the country has an installed energy capacity of 991 MW – 933.1 MW of hydroelectricity and 53.4 MW of thermal energy. But the actual production goes down to as low as one third the installed capacity during the winter months.

According to NEA’s statistics, the state-owned electricity monopoly and its subsidiary companies will produce 1010.3 MW of hydroelectricity, while independent power producers (IPPs) will add an additional 1298.7 MW of energy to the national grid in the next four years.

 “About 102 hydroelectricity projects of 2309 MW capacity are under construction. Of them Kulekhani III and Chameliya of 14 MW and 30 MW capacity respectively will start electricity generation by the end of this fiscal year,” says Managing Director of the NEA Kulman Ghishing.

The 30 MW Chameliya is set to commence generation from December.

The project is currently going through a ‘dry test’, and from December, a ‘wet test’ will begin, said Ajay Kumar Dahal, chief of the project.

The hydroelectricity project in Darchula district is jointly funded by the government and South Korea through its Economic Development Cooperation Fund.

Although the civil works of the project were supposed to have been completed by the end of the fiscal year 2016/17, the contractor, China Gezhouba Group Corporation (CGGC), had pledged to finish all works by August, six weeks beyond the deadline.

Chameliya was started in 2007 and was scheduled to be completed by 2011, but the deadline of the project was extended thrice in 2013, 2015 and 2016.  The NEA has missed about Rs. 2 billion in revenue due to the project delay.

Kulekhani III is also scheduled to be completed by January next year. The project has also been delayed by five years.

The NEA is constructing four projects - Kulekhani III, Chameliya, Trishuli 3 ‘A’ of 60 MW and Rahughat of 40 MW.

The NEA’s subsidiary companies are also developing six projects of 866.3 MW capacity, of which the Upper Tamakosi (456 MW) is the largest one, and it will start power generation from next year.

Other projects are the Tanahun, Upper Sanjen, Sanjen, Madhya Bhotekoshi and Rasuwagadhi.

The country currently has an installed capacity of 991 MW against a demand of 1500 MW.

It’s importing 380 MW electricity from India to reduce the load-shedding hours.

Ghishing said that this year the supply situation has comparatively improved because of enhanced transmission capacity, demand side management and loss reduction, import augmentation and operation management.

“In the next couple of years, power deficit is likely to be eliminated during the wet season without having to import power from India, and by 2019/20 there will be surplus in energy. But due to the seasonality of hydro power generation, there may be need of importing a small amount of electricity to meet the peak demand during dry season,” said Ghishing.

Nepal’s electricity demand is projected to grow at an average of 10 per cent per annum.