Nepal Energy in the News: August 15-31

Power wastage amounts to 50m units due to lack of transmission lines (The Kathmandu Post, accessed September 4, 2013)

I have raised the issue about the consequences of lack of transmission infrastructure in Nepal.  NEA reports that the total loss due to insufficient transmission lines in 2012-13 fiscal year is worth of Rs 420 millions. The posts cites Bhuwan Chettri, chief of Load Dispatch Center (LDC), and writes that NEA’s loss was due to the delay  in construction of three power line projects, including Khimti- Dhalkebar (220kv), Suchayatar-Matathirtha-Kulekhani – 2 (132kv) and Bharatpur-Hetaunda (220kv). The delay affected power generated from hydro power projects like Kaligandaki, Marysandi, Madhya Marsyandi, Trishuli, Chilime, Indrawati and Spring Khola to connect to the national grid. The news reiterates the fact that Nepal should focus on building new transmission and distribution lines to accommodate additional generation if it seriously wants to solve the energy crisis.

Power Grid preparing road map for SAARC electricity grid (The Economic Times, accessed August 30 2013)

This is a very welcoming news indeed. An electricity grid connecting South Asian countries will not only increase reliability, but also will help to harness each SAARC nation’s capacities and resources to address growing energy needs in the region. India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka are part of SAARC.  The Indian State-run Power Grid is finalizing the construction of transmission line between India and Nepal for transfer of bulk power.

Other News articles:

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Nepal’s Electricity Crisis: Are there any short-term solutions?

Nepal is facing severe power crisis at the moment. Even with the proper planning, it takes several years to develop necessary infrastructures for power generation and transmission. With Nepal’s never ending political turmoil, Nepal Government’s plans of reducing power shortages may take few more years than anticipated. Let’s explore some short-term plans of reducing power shortage. Besides increasing generation, are there any other ways to reduce power shortages in Nepal?

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Economic Analysis of Nepal’s Transmission Power Loss

For sometime, I have been writing about the transmission power losses and its significance in Nepal’s electricity sector. Read about the annual power loss here. The causes of transmission losses and comparison with other countries of the world can be found here. In this blog, I will try quantifying the losses in terms of monetary values. What would the savings be if the loss was just 15 percent? How much has Nepal Electricity Authority (NEA) spent in expanding transmission and distribution network in the last decade?
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Nepal’s Transmission Power Loss: Causes and Comparision with the Rest of the World

Nepal’s energy situation is marred with massive power shortages. Besides low production of electricity, the other cause for the shortage of electricity is the amount of power lost during the transmission and distribution process. The average annual transmission loss in Nepal’s electricity market is about 28 percent of total electricity generation (Nepal Electricity Authority, 2011), whereas the average power loss among 134 countries that are in World Bank’s database is 13.67%.

Reducing transmission loss is very important because the saved power can be sold to consumers and thus can generate extra revenue. It is even crucial in Nepal’s case, since we have not been able to produce enough electricity to meet the demand. Thus, decreasing transmission losses not only generates additional revenue, it can also be an alternative for saving capital cost from building new infrastructures.

Causes

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Nepal Electricity Authority’s annual electricity purchases and sales

This post will focus on Nepal Electricity Authority’s (NEA) annual electricity purchases and sales. NEA is government regulated and sole electric utility company of Nepal. It is responsible for distribution and transmission of grid connected electricity. Although private sectors are allowed to participate in the generation sector, NEA is the major electricity producer of Nepal.

The annual total purchase amount is the sum of the electricity bought from different producers. The total electricity sale is the sum of metered electricity of all customer types. In other words, it is the source of NEA’s revenue and uses it to pay for its purchases and transmission and distribution costs.

Electricity_purchased_sales_diff_amt_2
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