NEA urges international community to spur investment in energy sector

The Nepal Electricity Authority (NEA) has urged the international development partners of the country to spur investment in energy sector.

In view of the need of mega investment for energy production, transmission, distribution, expansion and reform, the NEA called for Switzerland, the United Kingdom, the United States, European Union, World Bank and Asian Development Bank that have been aiding Nepal for expanding the assistance.

A team comprising Swiss Ambassador Danielle Meuwly, World Bank Country Director for Nepal, Maldives and Sri Lanka Faris Hadad-Zerbos, ADB's Nepal Resident Mission Director Arnaud Cauchois, representatives of European Union and USAID, among other development partners on Friday monitored the 220-KV New Butwal Sub-Station at Sunwal municipality-13, Suryabasti of Nawalparasi (Bardaghat-Susta-East).

The new Butwal substation has been constructed under the Kaligandaki Corridor 220 KV transmission line project with the investment of the Government of Nepal (GoN) and NEA and a concessional loan from ADB.

The NEA has urged the monitoring team that visited the substation to increase assistance in the energy sector. Lauding Nepal's achievements in the energy sector, the team pledged to further increase investment.

Informing about hydropower generation, transmission distribution situation in Nepal and export of electricity to India and Bangladesh, NEA Managing Director Kulman Ghising said investment over 13 billion US Dollars is required in the next 5-6 years.

"In order to increase power generation and expand and strengthen the system, in the next 5-6 years, more than six billion USD will be needed for electricity generation, five billion USD for transmission and over two billion dollars for distribution," Ghising said.

He further told the development partners, "Only the excess electricity after consuming here is exported to the neighboring countries. Mega investment is required for the construction of infrastructure for the export of electricity."

World Bank Country Director Faris said investment in the 1,063 MW Upper Arun Hydropower Project led by the Bank has reached the final stage. He stressed the need of paying special attention to the implementation of environmental and social protection provisions during the implementation of the project.

ADB's Resident Mission Director Arnaud said the Bank has been partnering in Nepal's energy sector for the last 50 years and the bank-led 635 MW Dudhkoshi Reservoir Hydropower Project is working to manage its finances by 2024.

The monitoring team had obtained information about the control room of the substation. The team also took information about the status of power transmission and distribution.

Kaligandaki Corridor 220 kV double circuit transmission line and three substations have been constructed to integrate the electricity of the hydropower projects to be constructed in Kaligandaki and its tributaries into the national system.

Under the Kaligandaki Corridor 220 KV Double Circuit Transmission Line Project, about 130 kilometers double circuit transmission line has been constructed from Dana substation of Annapurna Rural Municipality-3 of Myagdi and passing through Parbat, Baglung, Syangja, Palpa, Rupandehi to New Butwal substation of Nawalparasi (Bardaghat Susta West).

The transmission line has the capacity to carry about 2,000 MW of electricity. The Kaligandaki Corridor transmission line project has been constructed with the investment of the GoN and NEA and a concessional loan received from the Electricity System Expansion Project under ADB's Asia Sub-Regional Economic Cooperation (SASEC). New Butwal-Gorakhpur for power trade with India

A new Butwal-Gorakhpur 400 kV second cross-country transmission line is also being constructed for power trade with India. The surplus electricity after consuming within the country will be exported to India through the same transmission line.