The Nepal Electricity Authority (NEA) aims to bring down distribution losses to 8.5 per cent within this fiscal year by checking the electricity pilferage.
According to NEA managing director Kulman Ghising, the NEA has shifted its focus to improve the reliability of energy supply, adopting stern governance measures at consumer touchpoints, and enhancing financial discipline at distribution centres. “We plan to achieve the reduction targets by optimum utilisation of sealed conductor cables in loss-prone areas, upgrading overloaded transformers and coordinating with the local administration to investigate cases of meter tampering and electricity pilferage,” he said, adding that the country has witnessed energy leakage of 11.28 per cent – in the fiscal year 2018-19 – resulting in financial losses amounting to millions, though the pilferage has come almost half down in last five fiscal year. “In the fiscal year 2014-15, the NEA had recorded some 19.87 per cent energy leakages due to weak power delivery infrastructure including substations and transformers.”
To check the pilferage and meet the new target to curb it, the state power utility has issued circulars to eight distribution centres and its division offices asking them to upgrade the capacity of transformers and balance the power load. The NEA has asked Janakpur, Attariya, Nepalgunj, Biratnagar and Butwal centres – that have recorded high distribution losses – to reduce more losses – whereas Hetauda, Kathmandu and Pokhara distribution centres – with low losses – have received low targets.
Likewise, the Province 1 office at Biratnagar with 24 distribution centre has been asked to bring down system losses to 8.8 per cent from the existing 12.15 per cent. The Province 2 office with 23 distribution centres has been directed to cut back losses from 23.36 per cent to 10.97 per cent. Similarly, the Butwal wing of the power utility with 11 distribution centres is expected to reduce losses to 9.26 per cent from 12.36 per cent. “And the Attariya office with 12 distribution centre is expected to bring losses down to 10.69 per cent from 14.39 per cent.”
Though, a 10 per cent reduction in energy loss has resulted in an increase in revenue of Rs 7 billion, the NEA has been able to reduce transmission and distribution losses to 15.32 per cent, according to the Distribution and Consumer Service Directorate of the NEA. “We aim to cut losses by strengthening the network, upgrading the capacity of the transformers, bringing new substations into operation to balance the load and keep tabs on electricity pilferage,” he said, adding that the reduction of distribution losses is considered by energy officials to be a fundamental effort consistent with achieving Sustainable Development Goal 7 (Sustainable Energy for All) and Nepal’s Nationally Determined Contributions for the United Nations Framework Convention on Climate Change.
Nepal has added more than 600 kilometres of power lines to domestic and cross-border electricity transmission network, and built 30 new distribution substations in the last fiscal year. The NEA plans to spend more than 50 per cent of its budget for the current fiscal year on increasing the capacity of transmission lines and power distribution infrastructure as the old system cannot manage the increasing power supply and distribution.
The NEA needs to overhaul current distribution system and existing substation, apart from new transmission lines construction with distribution grids in strategic industrial zones, the reliability of electricity transmission throughout the grid could be improved.
According to a report by the Asian Development Bank – the financier of the Power Transmission and Distribution Efficiency Enhancement Project – Nepal's power supply is expected to increase rapidly during the next several years because of commissioning of the 456 MW Upper Tamakoshi hydropower project and an additional 1,635 MW from multiple hydropower projects with planned commissioning by 2022.
The ADB has provided $150 million as a 32-year term concessional loan at 1 per cent interest during the eight-year grace period and 1.5 per cent interest after the grace period under the distribution enhancement project.
The lost electricity
Fiscal Year – Distribution Loss (per cent of available energy)
2014-15 – 19.87 per cent
2015-16 – 19.80 per cent
2016-17 – 16.83 per cent
2017-18 – 14.82 per cent
2018-19 – 11.28 per cent
According to NEA managing director Kulman Ghising, the NEA has shifted its focus to improve the reliability of energy supply, adopting stern governance measures at consumer touchpoints, and enhancing financial discipline at distribution centres. “We plan to achieve the reduction targets by optimum utilisation of sealed conductor cables in loss-prone areas, upgrading overloaded transformers and coordinating with the local administration to investigate cases of meter tampering and electricity pilferage,” he said, adding that the country has witnessed energy leakage of 11.28 per cent – in the fiscal year 2018-19 – resulting in financial losses amounting to millions, though the pilferage has come almost half down in last five fiscal year. “In the fiscal year 2014-15, the NEA had recorded some 19.87 per cent energy leakages due to weak power delivery infrastructure including substations and transformers.”
To check the pilferage and meet the new target to curb it, the state power utility has issued circulars to eight distribution centres and its division offices asking them to upgrade the capacity of transformers and balance the power load. The NEA has asked Janakpur, Attariya, Nepalgunj, Biratnagar and Butwal centres – that have recorded high distribution losses – to reduce more losses – whereas Hetauda, Kathmandu and Pokhara distribution centres – with low losses – have received low targets.
Likewise, the Province 1 office at Biratnagar with 24 distribution centre has been asked to bring down system losses to 8.8 per cent from the existing 12.15 per cent. The Province 2 office with 23 distribution centres has been directed to cut back losses from 23.36 per cent to 10.97 per cent. Similarly, the Butwal wing of the power utility with 11 distribution centres is expected to reduce losses to 9.26 per cent from 12.36 per cent. “And the Attariya office with 12 distribution centre is expected to bring losses down to 10.69 per cent from 14.39 per cent.”
Though, a 10 per cent reduction in energy loss has resulted in an increase in revenue of Rs 7 billion, the NEA has been able to reduce transmission and distribution losses to 15.32 per cent, according to the Distribution and Consumer Service Directorate of the NEA. “We aim to cut losses by strengthening the network, upgrading the capacity of the transformers, bringing new substations into operation to balance the load and keep tabs on electricity pilferage,” he said, adding that the reduction of distribution losses is considered by energy officials to be a fundamental effort consistent with achieving Sustainable Development Goal 7 (Sustainable Energy for All) and Nepal’s Nationally Determined Contributions for the United Nations Framework Convention on Climate Change.
Nepal has added more than 600 kilometres of power lines to domestic and cross-border electricity transmission network, and built 30 new distribution substations in the last fiscal year. The NEA plans to spend more than 50 per cent of its budget for the current fiscal year on increasing the capacity of transmission lines and power distribution infrastructure as the old system cannot manage the increasing power supply and distribution.
The NEA needs to overhaul current distribution system and existing substation, apart from new transmission lines construction with distribution grids in strategic industrial zones, the reliability of electricity transmission throughout the grid could be improved.
According to a report by the Asian Development Bank – the financier of the Power Transmission and Distribution Efficiency Enhancement Project – Nepal's power supply is expected to increase rapidly during the next several years because of commissioning of the 456 MW Upper Tamakoshi hydropower project and an additional 1,635 MW from multiple hydropower projects with planned commissioning by 2022.
The ADB has provided $150 million as a 32-year term concessional loan at 1 per cent interest during the eight-year grace period and 1.5 per cent interest after the grace period under the distribution enhancement project.
The lost electricity
Fiscal Year – Distribution Loss (per cent of available energy)
2014-15 – 19.87 per cent
2015-16 – 19.80 per cent
2016-17 – 16.83 per cent
2017-18 – 14.82 per cent
2018-19 – 11.28 per cent
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