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Nepal Anil Rajbhandari 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 Managing Director Internal Audit Department L-11 Acc. MD'S Secretariat, NEA Subsidiary L- 11 T Companies Loss Reduction Division L-10 Electrical Distribution & Consumer Services Generation Transmision Planning, Monitoring & IT Engineering Directorate, Project Mgmt. Administration Finance DMD L-12 T , , Directorate, Directorate, Directorate, Directorate, Directorate, Directorate Directorate DMD L-12 T DMD L-12 T DMD L-12 T DMD L-12 T DMD L-12 A DMD L Grid Operation Large Generation Operation Planning & Technical Biratnagar Regional Office, Department, Power Trade Department, Project Development Services Department, L-11 T & Maintenance Department, Department, L-11 T L-11 T Accounts L-11 T L-11 T L- 11 T Project Preparation Human Resource Department, Department, Janakpur Regional Office, Grid Development Department, L-11 Acc. Community & RE L-11 Adm. L-11 T Medium Generation Operation Department, Information Technology Environment & Social L-11 Adm. Department & Maintenance Department, Department, L-11 T L-11 T Study Department, L-11 T L-11 T Hetauda Regional Office, L- 11 T General Service Corporate Finance System Operation L-11 T Department, Department, Finance Division, Department, Technical Support L-11 Adm. L-11 Acc. L-10 Acc. Department, L-11 T System Planning Department, L-11 T Soil Rock and Concrete Kathmandu Regional L-11 T Laboratory, Office, L-11 T Administration Division, L- 11 T Legal Department, Administration Division, L-10 Adm L-11 Adm Generation Development L-10 Adm Corporate Planning & Department, Monitoring Department, Butwal Regional Office, Finance Division, NEA Training Centre, L-11 T L-11 T L-11 T L-10 Acc L- 11 Adm. Recruitment Material Management Div, Department, L-10 Electrical Administration Division, Monitoring & MIS L-11 Adm L-10 Adm Economic Analysis Pokhara Regional Office, Section, L-9, Electrical Electromechanical Design Department, L-11 Adm/Misc. Monitoring & MIS Section, L-11 T Division, L-9, Electrical Finance Division, L- 10 Electrical L-10 Acc Nepalgunj Regional Office, L-11 T Monitoring & MIS Administration Section, Section, L-9, Electrical L-9 Adm Attaria Regional Office, L-11 T Finance Section, L-9 Acc 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 2,358.99 2,291.96 2,297.88 2,366.88 2,168.56 (GWh) 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 1,819.64 1,966.12 2,389.21 2,638.82 2,931.55 (GWh) Available Energy (GWh) 4,178.63 4,258.08 4,687.09 5,005.70 5,100.11 System Load Curve of Peak Load Day (October 30, 2016) Sunday 1300 1200 1100 1000 900 800 Nepal Supply/Demand(MW) 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 Contribution Supply Option (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 Load Forecast 5785.3 28,329.85 30,000.00 6000 4280.7 25,000.00 5000 20,811.80 20,000.00 4000 2978.3 14,349.25 15,000.00 3000 2071.5 Energy Energy (GWh) Peak Load(MW) 1559.7 9,889.91 10,000.00 2000 7,491.08 5,000.00 1000 0.00 0 2025/26 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Fiscal Year Energy (GWh) System Peak Load(MW) Projects Under Construction Installed Capacity Commissioning Projects (MW) Year NEA Chameliya 30 2017/18 Kulekhani III 14 2017/18 Trisuli 3 ‘A’ 60 2019/20 Rahughat 40 2020/21 Total 144 Projects Under Construction… Installed Capacity Commissioning Projects (MW) 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 Voltage Level Import Capacity Interconnections (kV) (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 cross- border transmission line being implemented under PPP Model D – M 400 kV Cross Border Line Implemented under commercial mode i.e.
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