Power Sector Overview Nepal Anil Rajbhandary, NEA Capacity Building Program for SARPEX Mock Exercise 07 February, 2017; New Delhi
Legislative and Regulatory Framework Key Acts and Regulations that govern Nepal s Power Sector: Nepal Electricity Authority Act, 1984 Electricity Act, 1992 Electricity Regulations, 1993 Electricity Tariff Fixation Commission Regulation,1993
Institutional Arrangement Ministry of Energy Department of Electricity Development Water and Energy Commission Electricity Tariff Fixation Commission Nepal Electricity Authority Role of Private Sector
Ministry of Energy Line Ministry of the Power Sector Responsible for framing legislation for submission to Cabinet and Parliament Regulatory oversight for issuing licenses for power generation, transmission and distribution under the Electricity Act 1992
Department for Electricity Development Department under the Ministry of Energy as the official one-stop window for interested private investors to facilitate the development of private sector power generation, transmission and distribution projects. Functions: Private Power Development Promotion and Facilitation Inspectorate Technical Support
Water and Energy Commission Policy Advisory Body to the Government Formulates Short and Long Term Water and Energy Development Policies Analyses and advises on bi-lateral and multi-lateral energy development programs as well as hydropower development treaties with neighboring countries
E Electricity Tariff Fixation Commission Reviews and approves retail electricity tariff rates and other fees for electrical service at the consumer level. Comprises a full time Chairman, and members representing the line ministry, private sector, regulated entities, industry and the consumers.
Nepal Electricity Authority Established in August 1985 under NEA Act 1984 Wholly Government of Nepal undertaking Responsible for generation, transmission and distribution of electricity throughout Nepal
Roles of NEA Project Execution Power Purchaser Operation & Maintenance of National Grid Scheduling and Dispatching
Organizational Structure of Nepal Electricity Authority NEA Board Audit Committee MD'S Secretariat, L- 11 T Managing Director NEA Subsidiary Companies Internal Audit Department L-11 Acc. Loss Reduction Division L-10 Electrical Distribution & Consumer Services Directorate, DMD L-12 T Generation Directorate, DMD L-12 T Transmision Directorate, Planning, Monitoring & IT Directorate, DMD L-12 T Engineering Directorate, DMD L-12 T Project Mgmt. Directorate, DMD L-12 T Administration Directorate, DMD L-12 A F Dir DM Planning & Technical Services Department, Community & RE Department Finance Division, L-10 Acc. Administration Division, L-10 Adm Material Management Div, L-10 Electrical Monitoring & MIS Section, L-9, Electrical Biratnagar Regional Office, Janakpur Regional Office, Hetauda Regional Office, Kathmandu Regional Office, Butwal Regional Office, Pokhara Regional Office, Nepalgunj Regional Office, Attaria Regional Office, Large Generation Operation & Maintenance Department, Medium Generation Operation & Maintenance Department, Technical Support Department, Generation Development Department, Administration Division, L-10 Adm Finance Division, L-10 Acc Monitoring & MIS Section, L-9, Electrical Grid Operation Department, Grid Development Department, System Operation Department, Administration Division, L-10 Adm Finance Division, L-10 Acc Monitoring & MIS Section, L-9, Electrical Power Trade Department, Information Technology Department, System Planning Department, Corporate Planning & Monitoring Department, Economic Analysis Department, L-11 Adm/Misc. Project Development Department, L- 11 T Environment & Social Study Department, L- 11 T Soil Rock and Concrete Laboratory, L- 11 T NEA Training Centre, L- 11 Adm. Electromechanical Design Division, L- 10 Electrical Administration Section, L-9 Adm Finance Section, L-9 Acc Project Preparation Department, L-11 Adm. Human Resource Department, L-11 Adm. General Service Department, L-11 Adm. Legal Department, L-11 Adm Recruitment Department, L-11 Adm Accou Depar L-11 A Corpo Depar L-11 A Note : T = Technical Services; A = Administration Services: Adm = Administration Group: Acc=Account Group
Role of Private Sector Availability of concessional loans for the power sector, particularly in generation projects, is lately on the decline. Electricity Act 1992, provides a legal framework for the private sector participation in electricity generation, transmission and distribution. Today, IPPs share is nearly 45 percent of the total installed generating capacity.
Nepal Power System Installed Capacity: 960.6 MW 1700 Micro HP, 15 MW On Grid 956.1 MW Off Grid 4.5 MW Hydro 902.7 MW Thermal 53.4 MW ROR 810.7 MW Storage 92 MW IPP 429.7 NEA 381 Import from India 350 MW
NEA Power System Status On Grid Installed Capacity 956.1 MW Transmission Line 132 kv 2,417 Circuit Km NEA Power System Status Substation 132 kv : 29 1,765 MVA Transmission line 66 kv 511 Circuit Km Substation 66 kv : 12 458 MVA Number of consumers 2.97 Million Population Coverage 58 %
Total Energy Available and Peak Demand Particulars FY 2011/12 2012/13 2013/14 2014/15 2015/16* Sales (GWh) 3,044.7 3,156.0 3,496.3 3,743.7 3,746.0 Peak Demand (MW) 1,026.65 1,094.62 1,200.98 1,291.10 1,385.30 NEA Hydro Generation 2,357.43 2,273.11 2,288.23 2,365.64 2,168.49 NEA Thermal Generation 1.56 18.85 9.65 1.24 0.07 NEA Generation Total (GWh) 2,358.99 2,291.96 2,297.88 2,366.88 2,168.56 Power Purchase from India 746.07 790.14 1,318.75 1,369.89 1,758.41 Power Purchase from IPPs 1,073.57 1,175.98 1,070.46 1,268.93 1,173.14 Power Purchase Total (GWh) 1,819.64 1,966.12 2,389.21 2,638.82 2,931.55 Available Energy (GWh) 4,178.63 4,258.08 4,687.09 5,005.70 5,100.11
Nepal Supply/Demand(MW) System Load Curve of Peak Load Day (October 30, 2016) Sunday 1300 1200 1100 1000 900 800 700 600 500 0 3 6 9 12 15 18 21 24 Time Hr Supply Demand
Breakdown of Supply Option in Meeting the System Peak Supply Option Contribution (MW) NEA Hydro 430.1 IPP - Hydro 241.0 Import 230.1 Total 901.2 Peak System Demand 1291.2 Deficit 390
Percentage Energy Share of Different Supply Options Fiscal Year - 2015/2016 (Total : 7,328.9 GWh) IMPORT 1,758.4 GWh 24.0% IPP 1,173.1 GWh 16.0% NEA HYDRO 2,168.5 GWh 29.6% ENERGY SHEDDED 2,228.8 GWh 30.4% NEA THERMAL 0.1 GWh 0.0%
Electricity Demand Peak Electricity Demand of Nepal is nearly 1300 MW Prolonged Load Shedding throughout the year was enforced to cope with Supply Demand Imbalance since last couple of years This year supply situation is comparatively improved Increased import Commissioning of number of IPP Projects Demand Side Management Being a Developing Country and with more than a third of the population still without access to electricity, electricity demand is projected to grow on an average by 8.2 percent annually based on target GDP growth rate of 6 percent
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Energy (GWh) Peak Load(MW) 30,000.00 Load Forecast 5785.3 28,329.85 6000 25,000.00 4280.7 20,811.80 5000 20,000.00 2978.3 4000 14,349.25 15,000.00 2071.5 3000 1559.7 9,889.91 10,000.00 7,491.08 2000 5,000.00 1000 0.00 0 Fiscal Year Energy (GWh) System Peak Load(MW)
Projects Under Construction Projects Installed Capacity (MW) Commissioning Year NEA Chameliya 30 2017/18 Kulekhani III 14 2017/18 Trisuli 3 A 60 2019/20 Rahughat 40 2020/21 Total 144
Projects Projects Under Construction Installed Capacity (MW) Commissioning Year NEA Subsidiary Upper Tamakosi 456 2018/19 Tanahu 140 2022/23 Upper Sanjen 14.8 2018/19 Sanjen 42.5 2019/20 Madhya Bhotekosi 102 2020/21 Rasuwagadhi 111 2020/21 Total 866.3 Total (NEA + Sub.) 1010.3 IPPs (83 Projects) 890.0 2017/18-2020/21 Grand Total 1900.3
Supply Demand Scenario In the next two years, with the commissioning of number of Hydro Projects Power Deficit Likely to be eliminated during the wet season But likely to persist in the dry season By 2019-20 Likely to become surplus in energy terms Need for Import to meet Peak Demand during Dry Season Seasonality of hydro power generation Comparatively higher load
Power Exchange between Nepal & India Started with the signing of Koshi River Treaty in 1954. Nepal s entitlement 10 MW Power Exchange Agreement concluded in 1971 for a 5 MW power exchange at present it stands at 50 MW level. Other River Treaties: Gandak Treaty: 15 MW Gandak Power Station Built Mahakali Treaty: 12 16 MW (70 GWh per annum) being drawn from the Tanakpur Power Station Import beyond the 50 MW level under commercial terms Import of power by India from Nepal is lately on decline Extension of Indian Grid to rural areas adjoining Nepal Border
Existing Import Interconnections Interconnections Voltage Level (kv) Import Capacity (MW) Kataiya - Kusaha 132 125 Kataiya - Rajbiraj 33 10 Sitamadi-Jaleshwor 33 12 Kataiya-Inaruwa 33 5 Raxaul-Birgunj 33 12 Ramnagar-Gandak 132 25 Jaynagar-Siraha 33 7 Nanpara-Nepalgunj 33 12 Tanakpur-Mahendranagar 132 40 Muzaffarpur-Dhalkebar 132 120 Total 368
New Interconnections Kataiya - Kusaha 132 kv single circuit 15 km 50 MW Raxaul - Parwanipur 132 kv single circuit 17 km 50 MW Both transmission lines are being implemented under Government of India Grant Assistance Dhalkebar Muzzaffarpur 400 kv double circuit crossborder transmission line being implemented under PPP Model
D M 400 kv Cross Border Line Implemented under commercial mode i.e. PPP Model The JV companies will develop, own, operate and maintain the transmission line in their respective territory. PTC India signed Power Sales Agreement (PSA) with NEA on 12 December, 2011 for the bulk sale of 150 MW of power to NEA With the commissioning of mega hydro projects in Nepal, this high capacity interconnection will facilitate in exporting surplus power from Nepal to India
D M Line Project Features Voltage: 400 kv (initially charged at 220 kv) and will be operated in synchronous mode with the Indian grid Line length: 40 Km in Nepal and 86 km in India Transmission Capacity: ~ 1,000 MW Pending commissioning of 220 kv Dhalkebar substation the Transmission Line was operated at 132 kv level for importing 80 MW power from 18 February, 2016 Presently 120 MW is being drawn
Wholesale Tariff For bulk purchase by NEA from IPPs NRs 4.80/kWh for 8 wet months (mid April mid December) NRs 8.40/kWh for 4 dry months (mid December mid April) increment at 3 % simple rate per year for 5 times for projects upto 25 MW increment at 3 % simple rate per year for 8 times for projects > 25 MW and upto 100 MW Koshi Agreement : IRs 4.36/kWh Mahakali Treaty : NRs 5.41/kWh payable to GoN Power Exchange Agreement : IRs 5.63/kWh at 132 kv IRs 6.08/kWh at 33 kv IRs 6.54/kWh at 11 kv
Wholesale Tariff Power Purchase from North Bihar Power Distribution Company Ltd : IRs 5.55/kWh Power Purchase from Power Trading Corporation of India Ltd : IRs 3.44/kWh RTC Power Purchase from NTPC Vidyut Vyapar Nigam Ltd : IRs 3.60/kWh RTC Average Consumer Retail Price : NRs 8.60/kWh in FY 2015/16
anil_rajbhandary@hotmail.com