Immense Power Potential

Having 111-year long history of electricity generation since the construction of the first Chandrajyoti Hydroelectric power station back in 1911, Nepal has now graduated to being capable of selling its surplus energy. Currently, electrification covers more than 92 per cent of population nationwide. Until five years ago, the country had to suffer power outages extending up to 18 hours a day. Based on the data of NEA till December 18, the country has been exporting 364 megawatts of power to India daily.

The installed capacity of hydropower plants has now reached about 2,300 megawatts with the addition of 735-MW power generation capacity in 2021/22 alone. Similarly, out of about 811 megawatts of electricity estimated to be added to the national grid in the current fiscal year 2022/23, about 192-MW have so far been connected to the central transmission.

With the operation of 456-MW Upper Tamakoshi, the country's largest hydroelectricity project, Nepal has been able to export power to India and also to remarkably improve the power supply situation within the country. Starting with export of 364-MW electricity to India, Nepal has now set a historic milestone. Around 1.35 billion units of electricity worth Rs. 11.16 billion has been exported to India as of December 18. NEA, the sole power utility authority of the country, started selling surplus electricity in the rainy season since June 2 this year on competition basis. NEA had received approval to export 408 MW electricity to India, accumulating power produced by eight hydropower stations.

Nepal's ability to export electricity is greatly supportive to its economy. Its benefit is tremendous at a time when the nation is witnessing a depletion of foreign exchange reserve. Electricity export is not only earning foreign currencies but will also help save billions that would otherwise go out of the country to import petroleum products. Many of the households have installed electric powered induction stoves in their kitchens replacing LPG fueled stoves. More electric cars are now running on the road and more charging stations are being set up.

The government needs to encourage operation of electric transport services which will keep the environment clean and help reduce the import of petrol and diesel. The planned East-west railway can also opt for electric.

A notable feature of electric power is that it cannot be stored for future use. So the best way would be to sell it during excess generation season. Power generation reaches its peak during the rainy season. But during the dry season, we may likely to face power deficit. But this situation will not remain forever. Construction of mega power projects like Budhigandaki will drastically change the energy scenario, making the nation self-reliant in power.  

Due to a decrease in power generation in winter, the country faces a deficit of electricity and has to import power from India to meet the demand. Once the dry season is over, the country can resume power export. In the previous years, the amount of electricity export was less than that of its import.  From this year, however, the export is expected to exceed import.

It took many years for Nepal to produce power to meet the domestic demand. In the next two years, the remaining eight per cent Nepali populace is expected to get access to power. NEA is working to meet the government's goal of ensuring access to electricity to all citizens by 2024 through expanding transmission and distribution lines.