Minister inaugurates Butwal-Lumbini transmission line and substation

Minister for Energy, Water Resources and Irrigation Pampha Bhusal today inaugurated the 132 kV double circuit transmission line that has already been in operation.

As the election code of conduct is coming in effect, Nepal Electricity Authority (NEA) has decided only yesterday to inaugurate the double circuit transmission line that runs from Yogikuti at Butwal to Mainahiya for reliable and quality power supply, increase transmission capacity and control technical leakage in Bhairahawa. The double circuit transmission line and the Mainahiya substation was constructed with the investment of the government and NEA.

“With the construction of transmission lines and substations, the infrastructure for supplying about 200 megawatts (MW) of electricity has been prepared in the Bhairahawa,” the NEA claimed, adding that the power supply in the Bhairahawa area has also improved.

The 132 kV double circuit transmission line is also being constructed from Manhia substation to Uttar Pradesh state of India. The construction of a transmission line connecting Mainhia substation with Asatiya (New Nautanuwa) substation in Uttar Pradesh, India is in the final stages. Currently, Uttar Pradesh has only 33 kV transmission infrastructure, after the construction of Manhiya-Samptiya, internal power trade between Nepal and India will be ease.

“We are working with the goal of building a self-sufficient economy by selling the surplus electricity,” she said, adding that Nepal will be electricity sufficient within two years, and is building infrastructures as well for quality and reliable electricity supply.  “Along with this, large hydropower projects like Budhi Gandaki will be built.”

On the occasion, managing director of NEA Kulman Ghising said that the power supply of Butwal-Bhairahawa area through the transmission line has improved. “The industries are also supplied with as much power,” he said.

The construction of the 18-km Butwal-Lumbini transmission line from the Butwal substation to the Mainahiya substation was started in the fiscal year 2014-15 but it took long time complete due to various reasons, informed project head Hari Pandey. “There was delay in the construction of the project due to diversion of route, Covid-19 pandemic, he said, adding that the estimated cost of the project is $9.5 million. “The 132/33/11 kV Mainahiya Substation was brought into operation and power was supplied to that area.”

On, the occasion, secretary at the Ministry of Energy, Water Resources and Irrigation Sushil Chandra Tiwari expressed confidence that the power supply in the region will improve after the construction of transmission lines and substations.

For local power supply, 10 feeders of 33 KV will be removed from Mainhia substation. Out of these 4 feeders are operational and 2 capacitor banks are placed to rectify the power voltage. Some 57 towers have been constructed with 18 km transmission line.

IBN approves Rs 39 billion worth investments for hydel projects

 The Investment Board of Nepal (IBN) – chaired by Prime Minister KP Sharma Oli today – approved a total of Rs 38.68 billion worth of investments for three hydropower projects with a total capacity of around 200 megawatts (MW).

The 45th meeting of the board decided to approve investments worth Rs 38.68 billion for three hydropower projects that will be built on public private partnership (PPP) modality, according to a press note issued by the board.

The hydropower projects getting the approval from the Investment Board are 77.5 MW Ghunsakhola Hydropower Project (Rs 17.62 billion), 57 MW Himchuli Dordi Hydropower Project (Rs 10.62 billion) and 65 MW capacity Dudhkhola Hydropower Project (Rs 10.44 billion), the press note reads, adding that 

At the first meeting – after the government appointed Sushil Bhatta as its new chief executive officer in August – the Prime Minister also said that the board meeting could not be held regularly due to Covid-19. 

He also assured to continue the meeting regularly. The board – on the occasion – also welcomed newly appointed finance minister Bishnu Paudel as the board vice chair today.

AEPC, NEA seal a deal to construct mini-grid

 Alternative Energy Promotion Centre (AEPC) and Nepal Electricity Authority (NEA) signed an agreement to construct a mini-grid with a capacity of 1.624 megawatts (MW) connecting micro and small hydroelectricity projects unreached by the national grid.

AEPC’s executive director Madhu Sudan Adhikari and NEA Engineering Company director and NEA deputy manager Hitendra Dev Shakya, recently signed the agreement on behaf of their respective institutions. 

The NEA Engineering Company and the AEPC signed the agreement aiming at carrying out the detailed feasibility study for the construction of a mini-grid by connecting the seven micro and small hydel projects being developed in Jumla of Karnali Province, a press note from the NEA reads.

The company will carry out the detailed feasibility study as well as the engineering design of the mini-grid project, the press note reads, adding that the AEPC will bear the financial cost. “Under the project, six projects developed with the AEPC’s grant assistance and one developed with NEA’s support will be connected to the mini-grid which will, in turn, be connected to the National Transmission Line.”

The 200-kilowatt (KW) Ghughuti Small Hydroelectricity Project at Chandannath Municipality in the district headquarters is constructed with the NEA assistance, whereas the 200-KW Girikhola Small Hydroelectricity Project at Tatopani Rural Municipality, the 100-KW Juwanadi Thinkebandh Micro Hydroelectricity Project at Chandannath Municipality and the 45-KW Triveni Micro Hydroelectricity Project at Patarashi Rural Municipality are being constructed with the assistance of AEPC.

Similarly, the 31-KW Luma Micro Hydroelectricity Project, the 50-KW Dillichaur Micro Hydel Project and the 198-KW Chukeni Khola Small Hydroelectricity Project are developed with AEPC support. 

Investment board completes pre-qualification assessment of Rs 1.18 trillion worth projects

The Investment Board Nepal (IBN) claimed that it has completed the pre-qualification process of 14 projects worth Rs 1.18 trillion, out of the 50 projects that the investors showed interest during the Investment Summit 2019 held last March.
The board has already selected the company to conduct detailed feasibility study (DFS) of 756-megawatt (MW) Tamor Hydropower Project, IBN’s chief executive officer Maha Prasad Adhikari informed at a press meet orgainsed by the board today.
Likewise, the board has signed the initial investment agreement with Korean company Motrex to set up a vehicle manufacturing and assembly plant project worth Rs 10.54 billion, he said, adding that of the 77 projects that the government had showcased at the Nepal Investment Summit held in March, investors had submitted expression of interest (EoI) for 31 different projects amounting to more than $25.3 billion. “The board is continuously signing agreements with investors, who had expressed their interest in projects showcased at the investment summit.”
The board has also signed an agreement with a foreign firm to develop the Rs 64.6 billion worth Nepal-China Friendship Park Project in Province 1. “Similarly, the board has inked an agreement with two separate companies to conduct the DFS for developing the Rs 13 billion worth Multi-Model Logistic Parks in Biratnagar, Birgunj and Bhairahawa,” he said, adding that the board – as of today – is in the phase of implementing nine different projects worth Rs 565 billion. “Of this, development of Arun-III hydroelectric project is ongoing, while Hongshi Cement will soon start the second phase of production.”
These projects also include Kathmandu Outer Ring Road Project with a proposed cost of $1.87 billion, Lower Arun Hydro Power Project ($1.3 billion) and Nijgadh International Airport ($3.45 billion). Likewise, the applications for remaining 16 projects were not qualified during the evaluation process. “Similarly, the screening report has been prepared for Kathmandu Sky Train Project ($310 million) and Integrated National Agriculture Infrastructure ($70 million).”
Out of the total applications, the board disqualified 16 proposals and 20 did not receive any applications,” he said, adding that those projects which did not draw any eligible applicants will be still in the 'project list' of the board.
Adhikari, on the occasion, also sought government’s support in addressing few difficult legal processes that has been creating hassles in approving projects in a timely manner.

Local bodies to issue licence for hydel projects below 3MW

The Electricity Act 2076 Bill has proposed delegating the authority to issue licence for the construction and operation of electricity projects up to the capacity of 3 megawatt (MW) to the local governments.
At a meeting on the draft of the Electricity Act 2076 Bill in Kathmandu today, joint secretary of the Ministry of Energy, Water Resources and Irrigation Toyanath Adhikari confirmed that the Bill has proposed to give local level governments the authority to issue license to electricity generating project up to 3 MW. “ If the project lies in two or more than two local level territories, the project has to get the license from the provincial government,” he said, quoting the draft. “An electricity project with generation capacity of 3MW to 20MW should get license from provincial government, whereas if the project falls in more than one province, the project would need to be licensed from the central government's secretary."
According to the draft, a project gets the license for electricity generation within 15 days after operator submits needed documents. Likewise, the license for electricity transmission or distribution will be issued within 120 days and for electricity trade or customer service license, it will take 45 days, the draft reads, adding that it has also reduced the term of license to be issued for generation of hydroelectricity to 40 years, which is 10 years less than the one mentioned in Electricity Act 2049. “The licensee generating electricity from sources other than hydro can operate the project for 25 years,” the draft reads, adding that the term of license to be issued for generations, transmission or distribution of electricity may be of 50 years in maximum.
Speaking on the occasion, Minister for Energy, Water Resources and Irrigation Barshaman Pun said that the government will not ignore provincial and local level governments, and stakeholders while getting the 'Electricity Act 2076' Bill endorsed in the parliament.

Electricity demand surges to record 1,338 MW

Though the government is planning to promote use of electric vehicles as well as electric stoves for cooking to increase consumption of electricity, Nepal Electricity Authority (NEA) has started facing a problem in its distribution system due to increasing power consumption.
Of late consumers have started facing frequent power cuts also due to high demand, confirmed state power utility. “The distribution system is overloaded and feeders are tripping due to record high demand of 1,338 megawatts (MW) because of increasing cold weather, especially in Kathmandu valley, and subsequently due to the increase in the use of electrical appliances like air-conditioners and electric heaters,” the NEA informed, adding that transformers, especially, in Kathmandu valley are facing problems of overload and distribution cables are catching fire, though the NEA is managing supply by repairing the problematic feeders and distribution lines.
According to managing director of NEA Kul Man Ghising, most of the transformers, feeders and cables are overloaded at present due to increasing demand. But he assured that they are trying to address the issue of electricity tripping by upgrading and replacing the local distribution system.
The authority but claims that it has already replaced all the transformers in the Valley to ease the situation but the electricity tripping – commonly referred as power fluctuations – has equally affected the household consumers, industries and other businesses. “The power utility has also given top priority to augment the transmission and distribution system and is installing double-circuit high-capacity transmission network to enhance the quality of power supply,” Ghising said, adding that the NEA has already replaced almost 7,000 transformers in the last fiscal and 1,041 in the first four months of this fiscal year. “The process to replace over 6,000 transformers across the country is ongoing, which will increase the capacity of the distribution system by 20 per cent.”
NEA is upgrading 100 substations across the country, particularly in the major load centres and other major problematic areas. “The authority will also upgrade the transmission and distribution system to handle additional 1,000 MW of power next year, he added. “The NEA will have to upgrade the transmission lines as some 5,000 MW of electricity will be connected to the national grid by 2024, and NEA needs to install 15,000 new transformers by then.”
Kathmandu Valley’s demand has increased to above 400 MW at present from 250 MW to 325 MW in normal times peak demand. Likewise, the country’s peak demand stands at 1,338 MW currently but NEA has been generating 508 MW and independent power producers are generating 332 MW, whereas import from India stands at 498 MW. “But Nepal has also been exporting 40 MW to Bihar in India.”

NEA plans to minimise energy wastage

Nepal Electricity Authority (NEA) is planning to add new transformers to increase the power consumption. The state power utility has directed the distribution centres across the country to upgrade their transformers to maintain the electrical load to 50 per cent to let the consumers use as much electricity.
Speaking at a performance agreement ceremony held today with NEA’s Province 3 division, the NEA executive director Kulman Ghising said that it has become challenging to utilise the generated electricity and not let the produced power to go into waste.
He said that the NEA is gearing up to encourage people to use induction stoves instead of LPG gas for cooking and electric vehicles. “NEA is also preparing to establish charging stations for electric vehicles,” he said, directing all the chiefs of electricity distribution centres to upgrade their distribution systems to ensure smooth supply of electricity to the public.
The authority, currently, has been using 50, 100, 200, 300 and 500 kVA transformers to distribute electricity. In the last three years, it has added around 10,000 transformers across the country, increasing its distribution capacity by 1,000 megawatts (MW), according to a press note issued by the power utility. “The authority has added distribution substations with the capacity of 765 MVA to the system by either building a new one or upgrading in three years.”
The NEA has projected that 1,000 MW power will be added to the national grid after the completion of under-construction Upper Tamakoshi Hydropower Project in the current fiscal year. However, electricity is projected to be generated within a year-and-half can easily fulfill the domestic demand, which has been recorded at a peak of 1,320 MW in the last fiscal year and at 1,089 MW without factoring industries during Tihar festival, not accounting the currently generated quantum of power which would remain a surplus. Likewise, the power utility has already entered into take-or-pay arrangements with private power producers with run-of-river schemes with a combined capacity of around 5000 MW.
The power utility has launched a strategic campaign targeting households – in line with the surplus projections and the government strategic plan – to increase per capita consumption of electricity from 245-kilowatt hours to 400-kilowatt hours by the fiscal year 2021-22.
According to the government target to ensure access to electricity for all Nepalis within three years, the NEA is preparing to fully electrify 40 districts within this fiscal year. “Increasing its consumption is the only way of minimising energy wastage in the country,” the press note reads, adding that the NEA is trying to distribute three phase meter connections to every household and ease electricity supply to the industries to increase electricity consumption in the country.
Meanwhile, NEA has signed performance agreement with provincial office of Province 3 to control electricity leakage, increase revenue collection and improve its services.

Hydel firms not allowed more than 17 per cent profit

The government has restricted the hydropower developers from taking more than 17 per cent profit but the small power developers no longer need to pay additional fines to the NEA, if the power generation drops due to change in hydrology, according to new bylaws.
According to the bylaw ‘Conditions for People with Licence for Power Purchases and Sales-2019’ issued today by Nepal Electricity Regulatory Commission (NERC), hydropower developers are barred from taking more than 17 per cent return on equity but it has also exempted the hydropower projects – of less than 10 MW – of additional fines in case of generation drop.
“If the profit made by any hydropower project is higher than 17 per cent, it will be managed by reducing the rate agreed upon in the power purchase agreement (PPA),” confirmed chairman of the commission Dilli Bahadur Singh.
The commission will assess the tentative investment, source of money and its interest rate, clearance of loans and interests, ratio of equity and loan, recurrent expenditure, operational expenditure, maintenance costs, revenue and taxes and other service charges, additional capital that will be required, among others, to calculate the return and income before issuing approval to the developers to sign PPA with Nepal Electricity Authority (NEA), the bylaw reads, adding that the developer will need to submit technical and financial aspects of their power project and tentative rates for the final approval of PPA from the regulatory commission. “Before submitting the documents, they will have to hold discussions with NEA for the tentative rates.”
After the commission approves the final power purchase rate, the developer and NEA will sign the final agreement, it adds. “The commission will finalise the PPA rates within 90 days by assessing the projects’ technical and financial aspects but the financial assessment is not required for projects with installed capacity of up to 100 megawatts (MW).”
More than 40 hydropower projects have been waiting to sign the PPA were waiting for the bylaw as the PPA with NEA has been stalled since the last six months due to delay in issuing the bylaws. “The hydel projects will now be able to sign the PPA with NEA,” Singh said, adding that the power developers will, however, have to get a go-ahead from the commission – according to the bylaws – beforehand. “Earlier, the NEA could independently negotiate and determine the power purchase rates with developers.”
Though, not fixed, the NEA had been signing PPA with power developers earlier at around 17 per cent of return on equity. Singh, however, said that the new PPAs will be based on old tariff till the commission comes up with a new tariff rate.
Likewise, small hydropower plants with an installed capacity of less than 10 MW will not be penalised for falling short of production forecasts, the Electricity Regulatory Commission said. “The developers no longer need to pay additional fines to the NEA, if the power generation drops due to change in hydrology,” the bylaws read, adding that they were penalised up to 80 per cent of the deficit electricity, earlier. “Hence, the developers had been expressing strong reservations against the earlier rule and demanding that it be scrapped.”
Last month, the operators of 20 hydel projects with a combined capacity of 69.8 MW urged the government to acquire their projects citing heavy financial stress, besides calling for the removal of the availability declaration system for plants below 10 MW. “The projects are witnessing a 55 per cent fall in the power projections stated in the PPA, and their income has declined in line with the fall in output,” according to the troubled developers.
According to the bylaws, the provisions requiring developers to produce electricity up to a maximum of 70 per cent of the total annual energy output in the dry season will not be implemented for 10-MW schemes. Likewise, the NEA must pay compensation for undelivered energy to small hydel schemes by calculating the amount using a uniform formula for transmission lines, the bylaws reads.
Independent power producers welcomed the move by the Electricity Regulatory Commission.

Independent power producers to hand over keys of their project

Putting forth 12-point charter of demands, Independent Power Producers’ Association Nepal (IPPAN) has announced second phase of protest programme against the government.
Organising a press conference in Kathmandu today, the private power producers also warned that they will hand over keys of all sick hydropower projects to the government, if their demands are not met even after the second-stage of their protest. “We will hand over the key of sick projects to the Minister for Energy, Water Resources and Irrigation on October 18, if our demands are not fulfilled by then,” the IPPAN said, adding that some 25 hydropower projects developed by them are ‘sick’ as they have either failed to service their debts or reeling under financial crisis.
“The demands that we have put forth to the government are for implementation of facilities and pledges that the government and the Nepal Electricity Authority have made,” the coordinator of the sick project coordination committee of IPPAN Surya Prasad Adhikari said, adding that they have not got even those facilities and incentives that the government has provided to the foreign investors.
Independent power producers have launched their agitation in mid-August. In the first stage, they put forth their demands with concerned government agencies and held interaction with authorities to press them for fulfilling their demands. Some of their demands include immediate reimbursement of the subsidy announced for hydropower projects, which have already started commercial production as announced in the budget speech for fiscal year 2014-15, lowering of bank lending rates for hydropower projects to single-digit and 5 per cent for mini hydropower projects, which are in operation, and providing posted rate (Rs 4.8 per unit in wet season and Rs 8.4 per unit in dry season) even for small hydropower projects having capacity below 25 MW.
The IPPAN has also demanded increment in compensation resulting from outage losses due to fault of transmission lines of the Nepal Electricity Authority (NEA). “The NEA provides us a maximum of 5 per cent of outage losses in line with the power purchase agreement,” the IPPAN informed, adding that many small hydropower projects, however, are facing 17 per cent to 21 per cent outage losses out of total generation due to problem in transmission lines of the NEA.
“There cannot be construction of projects until there is transmission line,” according to the executive director of Aarati Power Company Ltd – the developer of Upper Irkhuwa Hydropower Project (14.5MW) – Prakash Dulal. “But, the NEA penalises power producers, if they do not supply energy in line with the agreement.”
Likewise, chief executive of Khanikhola Hydropower Company Bijay Man Sherchan said that power producers are facing losses due to lack of transmission lines. “We are supplying electricity from 11 kV transmission lines as the NEA has not provided 33 kV transmission line,” he said, adding that they have to pay compensation to the NEA, if they fail to supply required amount of energy.

Kabeli B1 starts test power production

The 25-megawatt (MW) Kabeli B1 Hydropower project has started testing electricity generation.
The power project in the Kabeli River – that divides Panchthar and Taplejung districts – has been constructed by Arun Kabeli Power Limited.
After the Kabeli Corridor conducted testing, the hydro power started testing power generation, informed director at the Arun Kabeli Power Limited Ramesh Neupane. “The preparations are on to start regular power generation within a month, if the test production succeeded,” he said, adding that Arun Kabeli Power Limited has completed work from its side. “Power will be evacuated to central transmission line after Nepal Electricity Authority (NEA) gives us permission,” said Neupane.
Due to delay in the construction of the power project, construction cost had jumped to Rs 5 billion from Rs 4 billion.

India proposes to construct Lower Arun Hydro Project

India has again proposed to construct 400-megawatt (MW) Lower Arun Hydropower Project in Sankhuwasabha district.
The government of India has again expressed interest to construct the Lower Arun Hydropower Project in a meeting with minister for Energy, Water Resources and Irrigation Barshaman Pun in the Capital today. Indian Minister of State for Power RK Singh has proposed that the new project can be developed adopting the same model of 900-MW Arun III Project, according to a press note issued by the ministry. “The Indian government had earlier proposed to build the project when minister Pun had visited India in February.”
Singh mentioned that India has proposed to build Lower Arun as per all conditions set in Arun III. According to the agreement on Arun III, the government – apart from shares being allocated to the locals and free energy to the affected areas – will get Rs 330 billion as royalty over a period of 20 years and the project will also provide 21.9 per cent of the generated energy free of cost to Nepal. “The developer will hand over the ownership of the project to Nepal after 20 years of commercial operation.”
According to the Energy Ministry, New Delhi has also submitted a proposal to develop Lower Arun. “Nepal has said that further discussions on Lower Arun will be based on the work progress of Arun III,” the officials said, adding that construction work of 900-MW Arun III hydropower project has been completed some 25 per cent till date.
The energy minister had previously scrapped the licence granted to a Brazilian company ‘Brass Power’ for construction of Lower Arun Project according to the directive from the Commission for the Investigation of Abuse of Authority (CIAA). The company had failed to make any progress in the project in the 15 years duration after the licence was awarded to it.
The project cost for Lower Arun is estimated at over Rs 100 billion. But according to the initial study conducted by Brass Power, the installed capacity of the project can be enhanced to around 1,000 MW, if it is developed as a storage-type project. “But the Department of Electricity Development is carrying out the feasibility and detailed study of the project at present.”

Nepal Infrastructure Bank invests in 32-MW hydel project

Nepal Infrastructure Bank (NIB) has started to make investments in projects with an aim to accelerate the development of infrastructure in the country.
The bank has invested in the 32-megawatt (MW) Karuwa-Seti hydropower project in Machhapuchhre Village Municipality of Kaski district. The project – worth Rs 5.8 billion – is being financed by a consortium of banks led by Nepal Infrastructure Bank.
The first project that the infrastructure bank is investing in will be co-led by Himalayan Bank and Sanima Bank, which will together be chipping in Rs 2.56 billion. The remaining cost of the project will be financed by the promoter of the project. “The consortium of banks will be investing a total of Rs 4.06 billion in the project with Nepal Infrastructure Bank providing Rs 1.5 billion,” according to a press note of Nepal Infrastructure Bank. “
Nepal Infrastructure Bank also has several projects in pipeline and will soon sign agreements to implement five mega projects, the Nepal Infrastructure Bank press note reads, adding that it will very soon sign investment pacts to construct a star rated hotel and another hydropower project.
Established with an aim to bridge the infrastructure financing gap by raising resources from domestic and international market including blended financing, Nepal Infrastructure Bank is the first private sector-led financial institution in the country solely focused on financing infrastructure development.
Nepal Infrastructure Bank received a national level infrastructure development bank operation licence from the central bank to conduct financial transactions on February 10. The bank was established with joint investment from the government along with various commercial banks, insurance firms, microfinance companies, private businesses and a group of entrepreneurs.
The Nepal Infrastructure Bank has authorised capital of Rs 40 billion, issued capital of Rs 20 billion and paid-up capital of Rs 12 billion, though other private banks have also increased their paid up capital more than the Nepal Infrastructure Bank.
The Nepal Infrastructure Bank – that includes 10 per cent government and 90 per cent private sector share – has been established with an objective to play a vital role in the infrastructure development of the nation, more specifically in the areas of construction and development of transportation, agriculture, energy, tourism, special economic zones, advanced urbanisation infrastructure and information technology along with other areas of infrastructure.

Nepalis consume 245-KW of electricity every hour

Due to regular supply of the power, a Nepali household consumes 245 kilowatts (KW) of electricity every hour in 2018-19 – some 38 per cent more than in the fiscal year 2017-18 when they used to consume 117 KW – according to a study. The government has, however, aimed to increase the per capita electricity consumption to 700 KW per hour by the fiscal year 2021-22.
The study ‘Energy Progress Report,’ also revealed that the increased use of gadgets and electrical appliances lately has also fuelled the power consumption of the Nepali households.
Earlier, demand for electricity was concentrated only during peak hours but with the regular supply of electricity, the consumer behavior has also changed, it reads, adding that the electricity network has expanded and upgraded projects connecting 420,000 new households to the national grid in the fiscal year 2018-19 leading to hike in power consumption.
Though, hydropower projects with a combined capacity of 195 megawatts (MW) were concluded in the fiscal year 2018-19, only 78 MW was added to the national grid and some 117 MW is in the testing and commissioning phase. The electricity demand as of Tuesday stood at 1,061 MW against the generaton of 1,073 MW in the fiscal year 2018-19. The government has, though, targeted to add 760 MW in the last fiscal year it could add only 10 per cent of the target to the national grid by the end of the fiscal year.
The Nepal Electricity Authority (NEA) expects to connect around 43 hydropower projects with a combined capacity of 1,150 MW to the national grid in the current fiscal year.
The hydropower projects promoted by the state generated some 420 MW, whereas private hydel plants generated 434 MW, imports from India stood at 207 MW, and the power utility exported 50 MW, the NEA report claimed, adding that with increased power generation, transmission lines also were expanded in the last fiscal year. “The government has been able to add more than 600 kilometres of transmission lines and 30 new distribution substations – domestically and cross border electricity transmission network – in the last fiscal year,” the report reads adding that the electricity has reached 95.5 per cent of the population. “Some 99 per cent of urban population enjoys access to electricity but some 95 per cent of rural people are receiving power through a mix of grid and off-grid systems.”
In 2010, only 65 per cent of the population had an electricity connection, according to the report, “Some 1.3 million – out of the 29 million Nepalis – remain to be connected to the electricity supply at present.”
The NEA also claimed that Nepal’s access to electricity has also increased at an annual rate of 4.3 per cent, which is much higher than the global average of 0.8 per cent. But it’s not surprising as Nepal had the least access to electricity compared to global access to electricity. Nepal has been recently starting to connect to the electricity. The NEA has targeted 100 per cent access to electricity within a few years, well ahead of the target year 2030 set by Sustainable Development Goal (SDG) 7.
Currently, only eight districts – Bajura, Humla, Jumla, Kalikot, Mugu, Dolpa, Rukum (East) and Solukhumbu – remain to be connected to the national grid, out of the 77 districts, the NEA added.

ADB delivers strong climate and gender results: Report

The Asian Development Bank (ADB) is delivering on its goal to increase development finance to the Asia and Pacific region and is making good progress towards achieving its development and operational targets, especially in climate change and gender, according to a new ADB performance review.
The 2017 Development Effectiveness Review (DEfR) was released in Manila, Philippines at the 51st Annual Meeting of ADB's Board of Governors. The report measures how well ADB is executing its corporate strategy, Strategy 2020, and the strategic priorities of the midterm review of the strategy across 85 results indicators. It is the first report under the 2017–2020 transitional results framework.
“The report clearly shows that ADB is delivering on its commitment to helping the Asia and Pacific region reduce poverty and achieve more inclusive and sustainable growth,” said director general of ADB’s Strategy, Policy, and Review Department Tomoyuki Kimura. "ADB continues to focus on its operational and organizational effectiveness, while scaling up its operations.”
The 2017 DEfR found that the share of ADB operations supporting climate change mitigation and/or adaptation rose to 49 per cent in 2015–2017, exceeding the 45 per cent 2020 target. Climate change finance, including external sources mobilised by ADB, reached a record $5.16 billion in 2017. This puts ADB in a good position to achieve its $6 billion annual climate financing target by 2020.
Gender was another area where ADB exceeded its targets. Nearly half or 48 per cent, of all ADB projects supported gender mainstreaming last year. The share of ADB projects successfully delivering gender equality results has increased to 77 per cent, above the target of 70 per cent.
During the 2015–2017 period, ADB-financed operations connected 2.7 million new households to electricity and installed 1,400 megawatts (MW) of energy generation capacity. This includes 340 MW from renewable sources through projects in Bhutan, Thailand, and Viet Nam, which will achieve an annual greenhouse gas emission reduction of 4.1 million tonnes of carbon dioxide-equivalent.
In the same period, ADB’s transport projects helped build or upgrade 7,100 kilometers (km) of roads, including 5,300 km in rural areas. ADB also provided 205,000 households with new or improved water supply and more than 142,000 households with new or improved sanitation. In addition, ADB provided 1.6 million students with new or improved educational facilities and trained 73,000 teachers.
ADB committed a record $20.1 billion in its own financing in 2017, nearly $7 billion more than in 2016. A total of $11.8 billion of direct value-added cofinancing was signed in 2017, while disbursements were $11.4 billion.
The 2017 DEfR also noted that the strong growth in commitments has contributed to challenges in meeting certain targets. Commitments for private sector operations reached $2.3 billion in 2017, but they accounted for only 13.3 per cent of overall signed regular ordinary capital resources financing. Cofinancing was almost unchanged from the previous year, but the share declined to 59 per cent of ADB financing, down from the 2014–2016 average of 71 per cent and below the ambitious 2020 target of 100 per cent. Performance on some strategic alignment indicators, such as health and education financing and support for social protection, will require additional efforts to reach 2020 targets.
ADB has taken concrete steps to ensure that it maintains its strategic alignment during this period of growth. ADB has also been focusing on ensuring the quality of its operations through, for example, expanding its quality review function and increasing staff resources in resident missions, operations departments, and operational support departments.
ADB has started to work on a results framework that is aligned with Strategy 2030. The framework will have targets that reflect the priorities of the Strategy 2030 and will be aligned with the Sustainable Development Goals. It will also rationalise the number of indicators and use innovative methods to more accurately assess ADB’s performance.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members; 48 from the region.

Power producers ask to increase PPA rate for 27 hydel projects

The power producers have asked the government to walk the talk.

Meeting with the finance minister Shankar Prasad Koirala at his office today, representatives of the Independent Power Producers Association of Nepal (IPPAN) asked to implement the amended agreement between the government and power producers to reduce risk of power projects that have already done Power Purchase Agreement (PPA) and are under construction.

According to the latest agreement, the PPA rate has been revised to Rs 8.40 per unit in the dry season and Rs 4.40 per unit in rainy season.

Some 27 hydropower projects currently under construction have been incurring the loss due to price hike of the construction materials and machinery equipments, they said, asking the government to hike the PPA rate also.

The government had agreed to hike their PPA rate, but not implemented yet, they added.

Likewise, they also asked the government to provide at least Rs 200 million in six per cent interest – per megawatt (MW) – for at least 10 years.

The government is ready to help solve the problems of energy sector as it is a priority sector also, the finance minister told them, on the occasion.

The budget for the current fiscal year has promised to end the load-shedding in three years, he said, asking the power producers' help to end the load-shedding.

The minister, who was once energy secretary also, said that the Finance Ministry has for the first time overstepped in the jurisdiction of Energy Ministry and fixed the term for making the country energy surplus.

The government that has been taking responsibility of the billions of losses of Nepal Electricity Authority (NEA) is serious on increased investment in hydropower, said finance secretary Shanta Raj Suibedi, on the occasion.

Likewise, joint secretaries Rajan Khanal and Baikuntha Aryal suggested the power producers to take advantage of the government's incentives.

The power producers on the occasion, asked to clarify the revenue confusion, though the government has prioritised the energy.

Dangote cement seeks help to acquire land, electricity

Dangote Cement has sought government help to acquire land for its $800 million cement industry in Nepal.

In a meeting with finance minister Shankar Prasad Koirala, here at his office today, the Nigerian company's chief executive K R Rao said that the company is looking for the land in Dang, Dhading and Makwanpur districts to establish the cement factory.

Dangote Cement needs 60 megawatt (MW) of electricity for full capacity operation of the plant, he said, asking government's help in providing 30 MW of electricity from the national grid as the company is planning to install Thermal Plant of 30 MW capacity to operate cement industry.

Of the three proposed districts to establish cement industry, Dhading has no bridge to access the industry, Rao added.

Koirala, who is also trade, commerce and supplies minister, said the government has prioritised foreign investment and ready to help promote them. "There will be no scarcity of energy, when the industry will come into operation," the minister added.

The government has also focused on developing infrastructure for the cement industries, he said, asking the Nigerian company to look for more investment potential in Nepal.

The Nigerian company – Dangote Group – had applied to the Investment Board with a $800 million cement factory proposal in Nepal. The board had on February 13 accepted the company’s foreign direct investment (FDI) proposal. The Cabinet had also endorsed the Dangote Group – one of Nigeria’s most diversified business conglomerates – proposal.

Dangote Group president and chief executive Aliko Dangote has been ranked as the world’s 76th richest person – with a networth of $12billion – by the Forbes magazine. Headquartered in Lagos of Nigeria, the group’s Dangote Cement is the largest cement producer in Africa.

Nepal ranks at bottom in Global Energy Architecture Performance Index

With a score of 0.39 out of one, the country ranked at the bottom — at 101st out of 105 countries — in the Global Energy Architecture Performance Index 2013 published by the World Economic Forum (WEF).

Despite caretaker prime minister Dr Baburam Bhattarai's tall claims of reducing load-shedding hours, the country is reeling under acute power shortage of 10 hours per day that has bled the industries blue. "Industries are underutilising their production capacity," according to the central bank's report that has revealed that industries are utilising only 58 per cent of their capacity, largely due to the chronic power shortage.

The contribution of the industrial sector has dropped drastically to under six per cent to gross domestic product (GDP).

The International Monetary Fund (IMF) projected the country's growth rate at 3.8 per cent for the current fiscal year due to increasing power cuts, erratic rainfall, and the government's inability to provide fertilisers during the harvesting season.

The Global Energy Architecture Performance Index is composed of three sub-indices — economic growth and development, environment sustainability, and energy access and security.

The country ranked 89 — among 105 countries — in economic growth and development that is measured on the basis of energy intensity, cost of energy imports, share of mineral products in export, and a combination of GDP per capita and Human Development Index (HDI).

Likewise, Nepal ranked 13 in environment sustainability that is measured through carbon intensity of energy use, share of non-carbon energy sources in the energy mix, levels of outdoor air pollution, and water scarcity, whereas the country ranked at the bottom at 103 in energy access and security that is measured on the basis of import dependence, diversity of supply, quality of electricity supply and access to modern forms of energy.

The index benchmarks and ranks 105 countries globally on how well their energy system delivers economic growth and development, environmental sustainability, and energy security and access.

In a changing global energy landscape, countries are seeking ways to manage the transition to new energy systems that better deliver on these core goals. The index offers a tool for decision makers to monitor the performance of their energy system and a basis for assessing areas to improve on.

The index revealed the poor state of energy security and access in the country. It has further reinforced the argument that the country needs to urgently ramp up investments in energy generation, basically in large hydropower projects to achieve faster and inclusive economic growth and a competitive economic base.

The country is claimed to have huge hydropower potential that would fuel economic growth by supporting industrialisation and generating huge employment. Demand for energy has been increasing at 12 per cent every year, but it has been able to generate around 700 MW only against a demand of 1,200 MW in the dry season.

Nepal ranks at the bottom five with Mozambique (102), Lebanon (103), Tanzania (104) and Ethiopia (105), according to the index that has listed Norway, Sweden, France, Switzerland and New Zealand as the top five.