The government has prepared a new Integrated Power System Development (IPSD) plan with an aim of generating 36,326.9 megawatt electricity and investment requirement of US$ 61.75 billion (NPR 8,249.80 billion) by 2040.

The new IPSD plan has estimated that the country's energy consumption will reach 62,390 GWh as per which the per capita consumption would be 1779/KWh. The country's power consumption in 2022/23 was 9,347 GWh (320.5 kWh/capita).

According to it, the per capital energy consumption in Nepal from 15 years now will be increased by more than five times.

The global average of power consumption is 3,265 kWh. Given this scenario, the Plan said that although growth rate shows remarkable expansion, consumption per capita is a realistic value compared to neighbouring countries. "It is a high target but recognised as a feasible one," read the report.

The IPSD outlined the energy development for the next one and a half decades into three phases – at the interval of five years each. The installed capacity for power generation was 2,247.7 MW in 2022 and it is estimated to reach 28,215.1 MW in 2035.

According to the IPSD Plan formulated by the Japan International Cooperation Agency (JICA) for the Ministry of Energy, Water Resources and Irrigation (MoEWRI), after 15 years, Nepal will have 410.7 MW installed capacity of solar energy (11 per cent), 9429.9 MW of storage-based hydroelectricity projects (26 per cent), 11,832.4 MW from run-of-the-river projects (33 per cent) and 10,930 MW from the Peaking RoR projects (30 per cent).

JICA handed over the report to MoEWRI at a programme organised in Kathmandu on Friday.

The new plan has also presented a scenario of the development of about 23,817 km long transmission lines by 2040 from current 4,068 km.

JICA has prepared the IPSD Plan in three years and said that the new plan is consistent with the current development plans or studies conducted in the power sector.

It has presented 27 projects as the priority ones of which five – Tanahun, Arun III, Tila I, Tila II and Upper Marsyangdi – are in the construction phase. Eight identified priority projects are in the phase of obtaining construction license, nine in survey phase, and one in survey license phase. Four (Bharbung, SR-06 Storage, Sunkoshi III and West Seti Storage) are the government projects.

Speaking at the programme, Senior Divisional Engineer of the MoEWRI, Ashish Shrestha, said that current energy development action plan has estimated that the country will need about US$ 46.5 billion by 2035.

The action plan included the activities in legal and policy reform such as the approval of Electricity Act, dam safety guidelines, inter-agency coordination and compensation measures.

It also has plans to develop storage projects like Dudhkoshi, Budhi Gandaki, Nalgad, Naumure and Jagdulla, 400 kV transmission lines including Inaruwa-Purniya and Dodhara-Bareli, and substation capacity to 40,000 MVA. The action plan also envisions developing cross-border transmission lines for the exchange of 10,000 MW electricity with India and 5,000 MW with Bangladesh and China, rural electrification and energy audit for large consumers.

By: Modnath Dhakal