Energy target hinges on Upper Tamakoshi

Kathmandu, June 2:  Finance Minister Dr. Yuba Raj Khatiwada, while unveiling the budget for fiscal year 2018/19 on Tuesday, had announced there would be an increase in electricity production by almost 73 per cent during the year.

According to the budget statement, the country has an installed capacity of 1,045 megawatts, which will be increased to 1,805 MW.

To achieve the target, the government would need to expedite the hydroelectricity projects under construction with full budget implementation.

Achieving the energy target solely rests on the Upper Tamakoshi Hydropower Project.

If all goes as planned, the 456-MW Upper Tamakoshi, the largest hydroelectricity project in the country, will come into operation by the end of 2018, and the entire project will come online by April 2019.

Similarly, the 14.8 MW Upper Sanjen Hydroelectricity Project, being developed by Nepal Electricity Authority’s (NEA) subsidiary company, will come into operation next year.

The government expects to generate the remaining 289 MW of energy from independent power producers (IPPs).

But there are signs that the Tamakoshi might not get completed within the given deadline.

Due to the dillydallying by the Indian contractor, Texmaco Limited, which is carrying out the hydromechanical work, the project’s deadlines cannot be met, says the project.

The contractor has not begun installing the penstock pipes yet.

In case the project misses the deadline, the government’s plan to generate 1,805 MW of energy will fail.

Likewise, the immediate past president of IPPAN, Khadga Bahadur Bisht, said that IPPs might not be able to generate about 300 MW additional electricity within the next fiscal year.

IPPs are developing about 92 hydroelectricity projects of 1298.7 MW capacity, which will come into operation from next year to 2021.

The NEA says that the target is achievable, and the work on the Upper Tamakoshi would be expedited even if it required hiring another company through subcontracting.

The budget also says that households having access to electricity would reach 4.3 million from the current 4 million by the end of the next fiscal, and the population having access to power would reach 78 per cent from the existing 69 per cent.

Similarly, the transmission lines of capacity higher than 66 kV would reach 4,257 kilometres from 3,496 km. Likewise, an additional 555 km and 900 km of 33 kV and 11 kV distribution lines respectively are to be developed.

About 3 MW of energy will be generated from micro and small hydropower, and domestic solar energy installations will reach 914,976 people.

Finance Minister Dr. Khatiwada said in his budget speech had mentioned that emphasis would be given to the development and expansion of hydroelectricity and all types of renewable energy to provide modern energy to all households in the coming three years and make available electricity to all households as per the demand within the next five years.

The energy sector has been allocated a budget of Rs. 83.9 billion.

Published in The Rising Nepal daily on 3 June 2018.