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Nepal Electricity Authority 1 a YEAR in REVIEW FISCAL YEAR 2016/17

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Nepal Electricity Authority 1 a YEAR in REVIEW FISCAL YEAR 2016/17 FISCAL YEAR 2016/17 Nepal Electricity Authority 1 A YEAR IN REVIEW FISCAL YEAR 2016/17 2 Nepal Electricity Authority FISCAL YEAR 2016/17 CONTENTS COMPLIMENTARY COPY Message from the Minister 2 Message from the Chairperson 4 Board of Directors 6 Corporate structure of NEA 7 Deputy Managing Directors 8 Managing Director’s Report 9 Generation Directorate 17 Transmission Directorate 39 Distribution and Consumer Services Directorate 57 Planning, Monitoring and Information Technology Directorate 82 Engineering Services Directorate 87 Project Management Directorate 110 NEA’s Subsidiary & Associate Companies 117 Central Activities 132 Administration Directorate 135 Finance Directorate 137 System Load Curve of Peak Load Day 154 Tariff Rates 155 Appendix 159-169 Maps 170-172 Front cover photo: Newly constructed Chapali Substation NEPAL ELECTRICITY AUTHORITY Head Of¿ ce: Durbar Marg, Kathmandu, Nepal Phone: +977-1-4153007/4153013, Fax: +977-1-4153009 Email: [email protected] Website: www.nea.org.np Nepal Electricity Authority 3 A YEAR IN REVIEW FISCAL YEAR 2016/17 4 Nepal Electricity Authority FISCAL YEAR 2016/17 Nepal Electricity Authority 5 A YEAR IN REVIEW FISCAL YEAR 2016/17 6 Nepal Electricity Authority FISCAL YEAR 2016/17 Nepal Electricity Authority 7 A YEAR IN REVIEW FISCAL YEAR 2016/17 Board of Directors Mr. Anup Kumar Upadhyay Secretary Ministry of Energy, Chairman Dr. Shanta Raj Subedi Mr. Chandra Tandon Secretary Member Ministry of Finance, Member Mr. Umesh Prasad Thani Mr. Bhakta Bahadur Pun Member Member Mr. Chet Raj Joshi Mr. Kul Man Ghising Member Managing Director, NEA Member Secretary 8 Nepal Electricity Authority FISCAL YEAR 2016/17 Organization Structure NEPAL ELECTRICITYNEPAL AUTHORITY Nepal Electricity Authority 9 A YEAR IN REVIEW FISCAL YEAR 2016/17 Deputy Managing Directors Mr. Sunil Kumar Dhungel Mr. Rajeev Sharma Deputy Managing Director Deputy Managing Director Distribution & Consumer Services Directorate Transmission Directorate Mr. Lekha Nath Koirala Ms. Shanti Laxmi Shakya Mr. Jagadishwar Man Singh Acting Deputy Managing Director Acting Deputy Managing Director Acting Deputy Managing Director Finance Directorate Administration Directorate Planning, Monitoring & IT Directorate Mr. Mohan Ratna Shakya Mr. Hara Raj Neupane Mr. Manoj Silwal Off. Deputy Managing Director Off. Deputy Managing Director Off. Deputy Managing Director Engineering Services Directorate Generation Directorate Project Management Directorate 10 Nepal Electricity Authority MANAGING DIRECTOR’S REPORT FISCAL YEAR 2016/17 MANAGING DIRECTOR’S REPORT It gives me immense pleasure to state that The À nancial performance of Nepal Electricity Authority (NEA) has successfully the year under review recorded completed thirty-two years of glorious journey positive operating surplus in Power sector. The 32nd Anniversary is an and net loss stood below one billion. We are now opportune event to share our performance and conÀ dent enough on our endeavor to make NEA achievements during last year and reafÀ rm our as a proÀ t earning organization by next year. commitment to lead the organization ahead with It is a matter of great honor for us to receive excellent results by building upon its strengths overwhelming support and recognition from and turning challenges into opportunities. public and institutions for our deeds. It has Under the “Ujjyalo Nepal Abhiyaan” initiative load boosted the morale and conÀ dence of our team shedding mitigation and various other activities and has helped a lot in creating amenable working were introduced. As a result, the year 2016/17 was environment for growth and transformation of the historic one in terms of load shedding management, Organization. loss reduction and À nancial performance. It was our At this annual day, I would also like to pay my great satisfaction to supply 24 hours of continuous sincere tribute to all individuals and employees power to our esteemed consumers, except industrial who lost their lives due to electric hazards and consumers, even in the driest months. The capital shocks in pursuing their duty. city-Kathmandu and city of tourist-Pokhara were With these notes, I now present the highlights of made load shedding free for entire period and the performance and achievements made by the remaining areas of the country also felt minimum organization during FY 2016/17. power cuts during dry season. The industries' supply Operational Performance was curtailed during peak hours only. This became possible due to effective and efÀ cient demand and The total number of consumers increased from supply side management with augmentation of 2.97 million to 3.26 million including community transmission and distribution facilities. and bulk buyers during the year. As in the previous year, the domestic consumer category with 3.06 We feel great pride to state that we have been million consumers remained the largest consumer successful in completing many substations and category with 93.96 % share of the entire transmission lines including Khimti-Dhalkebar consumers. Domestic and Industrial consumer 220 kV Transmission Line, which is the À rst in category contributed 41.85 % and 35.61 % to the its voltage level playing pivotal role in eradicating gross revenue from electricity sales respectively. load shedding in Kathmandu. All generation Rest of the consumer Category accounted for the projects have resumed their construction works in remaining 22.54 % of the gross sales revenue. full swing. Chamelia Hydroelectric Project is at the Only 65% of the population has access to grid À nal stage of completion and will be completed electricity. within next couple of months. Nepal Electricity Authority 11 A YEAR IN REVIEW FISCAL YEAR 2016/17 NEA’s hydropower plants including small power in power purchase cost and staff salary. NEA stations generated a total of 2,305.17 GWh, an achieved an operational proÀ t, after many years, increase of 8.06% from previous year's À gure of amounting to NRs 2,407.38 million as against 2,133.14 GWh. The total energy imported from the operational loss of NRs 3,063.98 million in India has reached 2,175.04 GWh, an increase of previous year. However, NEA incurred Net Loss 22.35% from previous year's À gure of 1,777.68 in the FY 2016/17 amounted to NRs 978.92 GWh. Kaligandaki, Marshyangdi and Middle million whereas the same for the previous year Marshyangdi power plants were run for peaking was NRs 8,890.19 million. Reduction in system operation during the dry season to meet the peak losses, reduction in average rate of power import, demand of the system, which has supported a lot increment in retail tariff, continuous supply of to minimize the load shedding at the peak time. power in major cities and partial endorsement of The average power import for the last year was À nancial restructuring all contributed to decrease about 250 MW through various transmission lines À nancial losses for the year under review. including Dhalkebar-Muzaffarpur transmission The cost for purchasing power has again been line. The total power purchased from Independent the largest component in the total operating Power Producers (IPPs) within Nepal was 1777.24 expenses in the year under review. NEA spent GWh, an increase of 52.39% from previous year's NRs 28,457.34 million in purchasing power from À gure of 1,166.24 GWh. The total energy available the various Independent Power Producers (IPPs) in NEA’s system increased by 23.25 % to 6,257.73 and import from India. GWh over the previous year’s À gure of 5,077.14 GWh. Out of the total available energy, NEA’s own Energy from purchased power amounted to 63.16 generation contributed 36.84 % whereas those % of the total available energy and NEA paid imported from India and local IPPs accounted for 61.67% of the net electricity sales revenue for 34.76 % and 28.40 % respectively. this purpose. The total cost of purchased power increased by 27.43 % in the FY 2016/17 due to A nationwide drive launched to reduce system the increase in the volume of import and domestic losses showed positive results reducing the purchase and to some extent because of normal system losses from 25.78 % in the previous year price escalation for power purchase from IPPs. to 22.90% in the year under review. The amount of loss that still persists is not to the acceptable Other operating expenses for generation, standard and continued drive to minimize it is transmission, distribution and administration in underway nationwide. the last year amounted to NRs. 1,823.98 million, NRs 1,907.15 million, NRs. 7,457.82 million and Financial Performance NRs 1,306.72 million respectively. After many years, NEA has managed to generate Reduction in long term borrowing interest rate operational proÀ t in the À scal year 2016/17. The from 8% to 5% for the GoN funded loans and total revenue generated from energy sales and conversion of some loan into equity shares has other income reached NRs 50,229.48 million reduced interest amount by about NRs. 1,200 as compared to NRs 35,073.54 million in the million. Interest expense for this year is calculated previous year. This is an increase of 43.21 % from as NRs. 3879.39 million as compared to NRs. previous year's À gure. NEA's overall operating 5,079.73 million in the previous year 2015/16. expenses including power purchase increased from NRs 36,087.53 million in the FY 2015/16 The growth in the revenue from energy sales to NRs 45,572.09 million in the FY 2016/17, an should also be attributed to the decrease in the increase of 26.28 %. This is mainly due to increase prevalent load shedding. The main load centers, 12 Nepal Electricity Authority MANAGING DIRECTOR’S REPORT FISCAL YEAR 2016/17 the urban areas, have been gradually made 'load site that was made inaccessible by the April 2015 shedding free", hence the increase in the energy earthquake; both the Contractors CGGC and CWE sales.
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