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Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said that although electricity generation is expanding in Nepal, the country must expand the capacity of transmission and distribution infrastructure and increase electricity consumption in productive sectors to fully realize its economic benefits.

Speaking at an event held yesterday evening to mark the 11th anniversary of the National Transmission Grid Company Limited (RPGCL), Shrestha said Nepal has entered a decisive phase of expanding electricity generation, transmission, domestic consumption and cross-border electricity trade. He said the construction of a modern, reliable, safe and adequately capacitated transmission system must be given high priority to fully benefit from electricity generation.

“Growing electricity generation is a positive achievement, but if the generated electricity cannot be transmitted reliably and consumption cannot be increased in productive sectors, its full economic benefits cannot be realized,” he said.

Shrestha said the government’s policy is to develop electricity as a major driver of industrialization, job creation, increased production and overall economic transformation. He said the necessary policy and infrastructure arrangements would be made to increase electricity consumption in industries, agriculture, irrigation, electric transportation, information technology and other productive sectors.

Shrestha also said there is potential to increase foreign exchange earnings and contribution to the national economy by taking surplus electricity that cannot be consumed domestically to regional markets through electricity exports. He said the electricity sector could become an important foundation of the country’s economic prosperity if Nepal’s hydropower potential can be connected to regional energy markets.

Stating that large investments are required to expand high-capacity transmission lines, substations and cross-border transmission infrastructure, Shrestha said the government must effectively mobilize the private sector, development partners, financial institutions and international cooperation alongside the public sector.

He also said the use of modern technology is essential to make the transmission system capable of meeting future electricity generation and demand. According to him, the transmission system should be made more reliable, efficient and sustainable through modern grid management systems.

Shrestha said the government is committed to developing open access to the electricity transmission system, transparent regulatory arrangements and a cost-based transmission service system while creating a competitive and dynamic electricity market. He said a clear, stable and investment-friendly policy environment is necessary to attract investment in the energy sector.

11 Years of Responsibility for Expanding Transmission Infrastructure

The National Transmission Grid Company was established in 2015 with the responsibility of developing the transmission infrastructure required to connect electricity generated from hydropower projects to the national grid. The company aims to prepare a transmission master plan based on long-term demand and supply, construct, expand and modernize transmission lines and substations, and ensure access to the grid.

The company’s current project portfolio includes the Phukot-Karmadev, West Seti-Dodhara, Haitar-Shitalpati (Arun Corridor), Tamor-Dhungesaghu, Mewa-Change, Bheri Corridor, Kerabari-New Marsyangdi, Lamabagar-Barhabise, Shitalpati-Dhungesaghu, Humla-Phukot and Sanfebagar-Basti-Betan transmission line projects.

Under its long-term transmission master plan, the company intends to develop transmission infrastructure based on integrating 38 GW of generation into the transmission system, 18 GW of domestic load and 16 GW of electricity exports. The master plan includes the construction of 132 kV, 220 kV and 400 kV transmission lines and substations of various capacities.

Recently, the company has also moved forward with the process of procuring consulting services for detailed surveys, geological studies, tower location determination and cost estimation for the Humla-Phukot 400 kV transmission line project.

Shrestha said the National Transmission Grid Company must further strengthen its institutional capacity in line with its founding objective and play an effective and leading role in developing strategically important transmission infrastructure.

Jalasarokar