Country Presentation on Power System of Nepal Arun Kumar Jha, Sr. - - PowerPoint PPT Presentation
April 29 and 30, 2015 Country Presentation on Power System of Nepal Arun Kumar Jha, Sr. Divisional Engineer Ministry of Energy Kedar Raj Silwal, Deputy Manager Nepal Electricity Authority Outline of Presentation Location and total
Arun Kumar Jha, Sr. Divisional Engineer Ministry of Energy Kedar Raj Silwal, Deputy Manager Nepal Electricity Authority April 29 and 30, 2015
Location and total potential Institutional arrangements for power sector
Initiatives of Power Sector Reform Overview of Nepal Power System
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since 2008
valley of 360 km2 dwelling place of 0.7 million people
Nepal
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Source: Great Rivers of the World, National Geographic Society, 1984
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Location :Lat 28022’N To 30026’N :Long 80004’E To 88012’E Population :28.3 Million (83% urban, 17% rural) > 10 religion & >93 ethnic groups Area :147,181 Km2 (landlocked) Length : 885 Km, Width :193 Km, Elev. : 60 m - 8848 Climate
(June-Sept). Ave. Rainfall : 1530 mm, Physiographic region :Terai Plain (< 1000 m Elv. Land Coverage 47%) Hills (1000 m – 1500 m Elv. Land Coverage 46%.) Mountain (>1500 m Elv. Land Coverage 7%)
⚫ NEA and subsidiary companies = 1044.1 MW ⚫ IPPs
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Investment Board Nepal
⚫ The Investment board is entrusted to promote economic
development of the country by creating an investment-friendly environment by means of mobilizing and managing public-private partnership, cooperative and domestic and foreign private investments.
⚫ The IBN is headed by the Prime Minister, while the office of the
IBN is headed by the CEO who is also member secretary of the IBN.
⚫ Have concluded PDA for large hydropower projects like Arun-III
(900 MW) and Upper Karnali (900 MW). PDA of few other projects are on the process.
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Ministry of Energy ⚫ Development of plan and policies ⚫ Co-ordinate activities of institutions related to
hydropower development
⚫ Survey, feasibility study ⚫ Construction, operation and maintenance of
multipurpose electricity projects
⚫ Promotion of private parties for hydropower
development
⚫ Matters related to bilateral agreements, dialogues etc.
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Department of Electricity Development
⚫ Develop and promote electricity sector ⚫ Attract private sector for hydropower
⚫ Provide one window service to private
⚫ Main tasks are:
distribution (Survey and Construction License)
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Project Study
⚫
Screening and ranking study of hydropower projects
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Master plan of river basins, Pre-feasibility and Feasibility study of new projects, Multipurpose projects
⚫
Preparation of Guidelines for feasibility studies
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Initial review of environmental studies
Privatization
⚫
Processing license applications
⚫
Evaluating technical proposals for issuance of license
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Monitoring of projects developed by public and private sectors
Inspection
⚫
Collection of royalties and distribution to concerned agencies
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Inspection of projects for compliance and recommend for tax exemption, and land acquisitions etc.
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Preparation of safety standards
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Objectives
>> To formulate and assist in developing policies and strategies in the water resources and energy sector. >> To provide suggestions, recommendations and guidance in the development of irrigation, hydropower, and drinking water projects. >> To provide assistance to the concerned ministries in formulating policies and objectives to be included in the perspective/periodic plan relating to the water resources and energy sector. >> To render opinion, advice and recommendations on bilateral and multilateral issues relating to water resources and energy. >> To act as a documentation center for all regional water resources and energy related issues.
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Objectives of NEA:
⚫
The primary objective of NEA is to generate, transmit and distribute adequate, reliable and affordable power by planning, constructing,
facilities in Nepal's power system both interconnected and isolated.
Responsibilities:
⚫ a. to recommend to Government of Nepal, long and short- term
plans and policies in the power sector.
electricity consumption with prior approval of Government of Nepal.
manpower in generation, transmission, distribution and other sectors.
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Government of Nepal on 6 July 2011 decided to set up a special purpose vehicle (SPV) in the form of Hydroelectricity Investment and Development Company Limited (HIDCL).
Established as a public investment company, 80% equity belongs to Government of Nepal (50%) and three state owned companies (30%). 20% has been set aside for general public.
The broader objective of the Company is be to mobilize funds for investment in generating, transmitting and distributing hydroelectricity to free the country from the chronic power shortage.
It can borrow loans and receive grants from foreign and international financial institutions so as to invest in projects
It can issue financial instruments such as bonds, debentures, and certificate of deposit for long term capital mobilization
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Composition:
Person nominated by Nepal Government from non-governmental Sector - Chairman
Representative , Ministry of Energy-Member
Economist nominated by Nepal Government from non-government Sector
Person nominated by Nepal Government among the licensee of the electricity generation, transmission or distribution-Member
Representative, Federation of Nepal Chamber of Commerce and Industry- Member
Person nominated by Nepal Government from among the Consumers- Member
Director General, Department of Electricity Development-Member- Secretary
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Rate of Depreciation,
Reasonable profit
Mode of the operation of the plant
Change in the consumer’s price index,
Royalty and the policy adopted by Government to the development of electricity
Marginal cost of electricity generation
The exchange rate of convertible foreign currency
The cost of fuel to be used for the production of electricity
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Hydropower Development Policy - 1992, 2001
Industrial Policy - 1992
Foreign Investment & One-Window Policy-1992
Electricity Act - 1992 (Regulations - 1993)
Industrial Enterprises Act - 1992
Foreign Investment and Technology Transfer Act - 1992
Environment Protection Act - 1996 (Regulation-1997)
Nepal Electricity Authority Act 1984
Proposed Electricity Act 2008 (2065 BS)
Proposed Nepal Electricity Regulatory Commission Act 2008 (2065)
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Develop Large storage type multi-purpose projects
Contribute environment protection by developing
Focus on mitigation of adverse environmental
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Emphasis on mobilization of internal capital market and
rural electrification through people’s participation
Emphasis on Unauthorized leakage of electricity
and provide appropriate benefits at the local level while
38% district in the development region)
Provide Attention to safeguard the consumers' interests
providing reliable and qualitative electricity service to the consumers at a reasonable price making electricity tariff fixation rational and transparent
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Hydropower Development through participation of private
sector, PPP and Foreign Investment.
License procedure and issuance of License for Generation,
Transmission and Distribution.
Issuance of License through competition Provision for export and import License Provision for land acquisition, compensation, resettlement etc. Provision for tax exemption Provision for foreign investment Provision for development of multipurpose project through
bilateral and multilateral agreement.
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Functions of NERC:
⚫ Regulation of Generation, Transmission, Distribution and Trade
as main function of NERC
⚫ To assist and recommend GoN in formulation of policy and work
plan for effective and reliable electricity supply system
⚫ To set operation and maintenance standard and work procedure ⚫ To approve codes for transmission and distribution ⚫ To fix tariff ⚫ Review and approval of PPA ⚫ Fixation of Wheeling Charge ⚫ Protection of consumer rights ⚫ Inspection, investigation and monitoring ⚫ Conflict settlement (between licencees)
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Power Sector Reform for economic benefits from efficient services and attracting private investment
New Electricity Act and Nepal Electricity Regulatory Commission Act drafted and submitted to parliament for approval to separate policy, promotional, regulatory and implementation roles
Unbundling of Vertically integrated NEA initiated by establishment of National Transmission Grid Company
Power Trade Agreement concluded between India and Nepal on 21st October 2014 for cooperation in cross-border power exchange and trading through enhanced transmission interconnections and grid connectivity
PDA signed with few export oriented projects such as Upper Arun (900 MW), Upper Karnali (900 MW)
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Existing Transmission Line Capacity: ⚫ 132 kV line: 2129.7 circuit km ⚫ 66 kV line: 511.16 circuit km Existing Substation Capacity: ⚫ 132 kV Substations: 1721.8 MVA ⚫ 66 kV substations: 437.75 MVA
Demand: 5,909.96 GWh (supressed) ⚫ Supplied: 4,631.51 GWh (78.4%)
⚫ Load shedded: 1,278.45 GWh (21.6%) [up
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Total consumers: 2.71 million
⚫ Domestic consumers: 2.56 million (94.37%). ⚫ Others: 0.15 million (5.63%)
Total Sales: 3,447.58 GWh Sales Revenue: NRs. 27,624.28 million Total Revenue: NRs. 29,221.12 million Total expenses: NRs. 34925.36 million Net loss: NRs 5,704.24 million System Loss: 24.79%
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signed PPA for projects of total capacity of 2039.415 MW
development (construction stage and study stage),
NEA and subsidiary companies = 1044.1 MW IPPs = 297.506 MW
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Enforcement of GoN’s National Energy Crisis
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Managing power shortages in the present Managing power surplus in wet season and
Overcoming huge accumulated loss which is
Non revision of Electricity Tariff for years is
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NEA is 100% government owned vertically integrated utility having monopoly in transmission and distribution till now.
It also works as dispatcher
In generation there is involement of private sector (IPPs) i.e. Monopsony market. IPPs sign PPA with NEA to sell their electricity.
Grid Code Prepared by NEA itself is enforced and followed by NEA and IPPs.
DOED provides license and does the inspection & monitoring. ETFC fixes the tariff.
NEA’s regulatory compliance are:
⚫
to follow tariff fixed by ETFC,
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Pay royalty and license fees as per existing laws (DOED is the regulator)
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