LATEST DEVELOPMENTS IN NEPAL POWER SECTOR

INCLUDING THE STATUS OF D-M 400 KV CBTL

Third Meeting of Taskforce 2, February 25-26, 2015; Colombo, Sri Lanka

Surendra RajbhandariChief, Project Management Directorate, Nepal Electricity Authority

Overview of Nepal Power System as of Feb 2015

• Total installed capacity: 792 MW• Under Construction: 1200 MW • Transmission Lines: 2848 cct km • 40 Grid Substations of 2000 MVA • Average annual growth rate of peak: 9%• Average annual growth rate of energy: 8.5%• Access to grid electricity: 63%• Peak Load in FY 2014/15= 1200 MW• Capacity shortage in FY 2014/15= 600 MW

Total NEA (ROR)

Total IPP

Total NEA STORGE

Total IMPORT

Total DIESEL

LOAD SHEDDING

0255075

100125150175200225250275300325350375400425450475500525550575600625650675700725750775800825850875900925950975

1000102510501075110011251150117512001225

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hrs

System Load Curve Kartik 17, 2070 (Nov 3, 2013) Sunday

Peak Load 1200.98 MW at 18:25 hr

Installed Capacity: 792.9 MW

In Grid 786.4MW Off Grid 4.5 MW

Hydro 734.99 MW Thermal 53.41 MW

ROR 640.99 MW Storage 92 MW

IPP 262.5 MW NEA 380.99 MW

Developments in Nepal Power System

• The Government of Nepal is finalizing:• Revised Electricity Act 1992 • Nepal Electricity Regulatory Commission Act• Process for establishing National Transmission

Company• Committees set up to review/draft the provisions of

the Acts and Articles of Association • Committees comprise of representatives from various

stakeholders/fields• Stakeholders consultations and meetings held

Status of Project Development Agreement (PDA) as of Feb 2015

• PDA signed:• 900 MW Upper Karnali with GMR India• 900 MW Arun -3 with SJVNL

• PDA in the pipelines:• 600 MW Upper Marsyangdi - GMR• 750 MW West Seti – CWE ( Three

Gorges )• 880 MW Tamakosi III (SN Power)

Development in Nepal Power Sector Reform Initiatives

• Government is also studying the establishment of a power trading company.

• Power trading company will provide the platform to developers for exploring energy markets.

• The revised Electricity Act will facilitate development of generation, transmission, trade of electricity.

• The Transmission Company will be responsible for planning, development, operation and maintenance of transmission facilities and for running/maintaining the system.

Updates in Nepal Power System

• Power System Study Report on Nepal India: 2020-21 Scenario finalized prepared by PGCIL

• Bardaghat- Gorakhpur 400 kV cross border HVDC has been proposed.

• NEA is in the process of procuring consultant for detail design.

• The Nationwide Master Plan Study on Storage Hydroelectric Projects finalized. The plan identified 31 projects with total capacity of 9000 MW.

Updates in Nepal Power System

• NEA is updating the Transmission System Master Plan. The draft report to be ready by April 2015

• The revised TSMP based on 6 zones and north south connection.

• TSMP to cover all the river basins• NEA is also in the process of developing

Distribution System Plan

Features of Revised Electricity Act

• One business at a time in grid connected area• Benchmarks for issuance of licenses. • Generation license for domestic supply:35 years

and for export oriented projects: 30 years • Trans., dist and trade license valid for 25 years • Government reserves the right to develop hydro

projects on competitive basis.• Facilities to be handed over to GoN after expiry

of license.• No nationalization of facilities.

Revised Electricity Act 1992

• Section 1:Preliminary provision and definitions• Section 2: Licensing • Section 3: National Transmission Grid• Section 4: Electricity sales, export and import

provision• Section 5: Royalty and Electricity Tariff

Section 6: Quality of electricity and safety• Section 7: Water rights and Environment

Revised Electricity Act 1992

• Section 8: Land acquisition, compensation, resettlement

• Section 9: Investment management• Section 10: Provisions of Facilities• Section 11: Provision of micro hydro and

rural electrification• Section 12: Compensation and Penalties• Section 13: Miscellaneous

Proposed Electricity Regulatory Commission Act

• The objectives are to:• Maintain balance between demand and supply

by managing generation, transmission, distribution and trade of electricity in transparent way.

• Regulate electricity tariff• Protect the rights of the consumers• Promote competitive electricity markets

Proposed Electricity Regulatory Commission Act

• The proposed Act has 7 Sections:• Section 1: Preliminary provisions and Definitions• Section 2: Establishment and Institutional Set up• Section 3: Duties, Responsibilities and Authorities Section 4: Duties, Responsibilities and Authorities

of Chairman and Members of the Commission• Section 5: Secretariat and Employees• Section 6: Budget and Audit• Section 7: Miscellaneous

Hydropower Potential and Licensing Status

• Storage capacity plants: 21,400 MW• Survey license issued: 6000 MW• Government reserved: 5584 MW• Survey application :3096 MW• Generation license issued: 2156 MW• Projects under construction: NEA and subsidiary companies = 1002 MW IPPs = 297 MW

Existing Power Exchange Arrangement

• Nepal and India has been exchanging power for many years. Power is being exchanged and traded mainly through 8 points along the Indo-Nepal border.

• Present level of exchange: 50 MW, trading: 180 MW.

• Power exchanges mainly through 33kV and 132kV links.

• To facilitate power exchange, two committees exist: Power Exchange Committee constituted in 1992 and Joint Commission on Water Resources (2000).

Existing Interconnections with India

Transmission Link Evacuation Cap. (MW)

Traded, MW

Voltage Level, kV

Kusaha--Kataiya 130 80 132Gandak -Rampur 50 25 132Mahendranagar-Tanakpur

50 30 132

Kataiya- Rajbiraqj 10 8 33Raxual- Birgunj 10 10 33Sitamadhi-Jaleswor 10 8 33Nepalgunj-Nanpara 10 8 33Jayanagar-Siraha 8 8 33

Under Construction and Planned Interconnections

with India Transmission Link Transfer

Cap. (MW)

Voltage Level, kV

Status

Dhalkebar- Muzaffarpur 1200 400 Under cons.

Bardaghat- Gorakhpur (HVDC)

2500 400 Planned, Consultant procurement initiated

Duhabi- Jogbani 1800 400 Proposed

Other Links To be identified

Load Forecast

-

1,000

2,000

3,000

4,000

5,000

6,000

-

5,000

10,000

15,000

20,000

25,000

30,000

Pea

k L

oad

(M

W)

En

ergy

(G

Wh

)

Fiscal Year

Energy

Peakload

Hydropower Potential of Nepal, MWRiver Basin Gross Economical

Sapta Koshi Basin 22,350 10,860

Sapta Gandaki Basin 20,650 5,270Karnali and Mahakali Basin 36,180 25,125

Southern River Basin 4,110 878

Total 83,290 42,133

Projection of Generation Capacity Addition

Year Installed capacity, MW

RoR Storage2014/15 102 142015/16 241 02016/17 992 02017/18 291 02018/19 499 02019/20 97 1402020/21 535 02022/23 300 4002024/25 4002025/26 530

Total 3057 1484

Projection of Transmission Line Addition

S. N. Year Transmission Line, cct km132 kV 220 kV 400 kV

1 2014/15 354 440 802 2015/16 414 172 5703 2016/17 500 400 2004 2017/18 710 370 4705 2018/19 100 2306 2019/20 807 2020/21 6508 2022/23 180

Total 2078 1612 2230

Dhalkebar – Muzaffarpur CB Transmission Line: Background

• In 2006 IL&FS, NEA and PTC India took initiative for the first Nepal India EHV link.

• Power Transmission Company Nepal Limited (PTCN) and Cross Border Power Transmission Company India (CPTC) were established .

• PTCN to construct, operate and maintain about 41.5 km of transmission line from Dhalkebar to Bitthamod in the Nepalese territory. CPTC to construct, operate and maintain 87 km of line from Muzaffarpur to Sirsand in the Indian territory.

Dhalkebar – Muzaffarpur CB Transmission Line: Background

• To be initially charged at 220kV; operated in synchronous mode between Indian and Nepalese power grids.

• Implementation and Transmission Service Agreement (ITSA) signed on 12 Dec 2011.

• Power Sale Agreement (PSA) with PTC India for the purchase of 150 MW of power in long term basis has been signed on December 13 December 2011.

Dhalkebar – Muzaffarpur CB Transmission Line: Background

• Joint Venture cum Share Purchase Agreement signed on 5 April 2014 among NEA, PGCIL, Hydroelectricity Investment and Development Company Ltd. and IEDCL India.

• The shareholder pattern is as follows: NEA -50%, PGCIL India - 26%, HIDCL - 14% and IEDCL - 10%

• The shareholder of CPTC : IEDC: 38%, PGCIL: 26%, SJVNL: 26%, NEA: 10%

• SHA signed on 9 July 2012

Contract Award and Completion DatesNIT Zero

dateComp. Period

Comp.Date

Transmission LineMuzaffarpur – Sursand

CPTC)Feb’13 Feb’14 16 mnths June’15

Dhalkebar – Bhittamod(PTCN)

Feb’13 May’14 16 mnths Sept’15

Substation worksDhalkebar substation Nov’13 Aug’14 15 mnths Nov’15Transfrmer at Dhalkebar Feb’14 Oct’14 12 mnths Oct’15

Dhalkebar- Muzaffarpur Cross Border Line, Nepal Portion

Implementing Agency Power Transmission Company Nepal Ltd (PTCN)

Scope of Work 400 kV D/C Bhittamod – Dhalkebar Trans. Line

Length 41.5 km

Date of Award 12/19/2012, modified to 1 May 2014

Name of Vendor Tata Projects India Limited

Commissioning date June 2015 (16 months)

Cost of Award US$ 7.03 million

Dhalkebar- Bhittamod Section: Status as of 15 February 2015

Item Quantity Completed till date

Balance Quantity

Foundation(No) 112 71 41

Erection(No) 112 41 71

Stringing(km) 42.2 - 42.2

Dhalkebar- Muzaffarpur Cross Border Line, India PortionImplementing

AgencyCross Border Power Transmission

company Limited (CPTC)Scope of Work 400 kV D/C Muzaffarpur – Sursand

Transmission Line with 220 kV S/S at Muzaffarpur

Length 87 kmDate of Award 4-Feb-14

Name of Vendor KEC International LimitedProject

Commissioning dateJune 2015 (16 months)

Cost of Award RS 123.71 Crores

0 10

5780 85 86 87

100

138

170184 194

219233

15

55

115

145 150 155 160 170

200

233

Status of Foundation – CumulativeIndia Portion

Actual L2

10

47

23

51 1

13

3832

1410

25

1415

40

60

30

5 5 510

30 33

Foundation – Monthly, India PortionActual L2

2449 52 52 53

69100

126157

182215

233

3055 58 61 64

79

129

179

229 233

Erection – Cumulative, India PortionActual L2

24 25

3 0 1

16

3126

3125

3025

3 3 3

15

50 50 50

4

Erection – Monthly, India PortionActual L2

0 216

2737

57

7787

214

2944

5974

86 87

Stringing – cumulative, India PortionStringing - Cumulative Actual Stringing - Cumulative L2

02

1411 10

20 20

10

2

1215 15 15 15

12

1

Stringing – Monthly, India PortionActual L2

THANK YOU