Nepal’s electricity production capacity tripled to 3,157 MW in past eight years

Out of 2,300 MW of electricity connected to national grid over the period, 1,700 MW of electricity was added in the past three years

KATHMANDU, Aug 12:  Nepal’s electricity production capacity has reached 3,157 MW with the addition of around 1,700 MW in the past three years alone.

The records with the Nepal Electricity Authority (NEA) show that the country’s production capacity grew by around 2,300 MW in the past eight years. By the end of the fiscal year 2014/15, the total installed capacity was Rs 855.88 MW.

According to the NEA, out of the installed electricity capacity of 3,157 MW, 95 percent is contributed by hydropower plants. Likewise, 53 MW of electricity comes from thermal plants, 107 MW from solar energy and six megawatt is generated from biomass.

Of the 2,991 MW of the installed hydropower capacity, around 1,900 MW is produced by the private sector. The remaining amount is produced by the NEA and its subsidiary companies.  

Kulman Ghising, managing director of the NEA, informed that the peak electricity demand of the country has reached 2,650 MW. Five decades ago, the electricity demand was only around 40 MW.

Ghising said the NEA has carried out power purchase agreements (PPAs) of 10,300 MW till date. “Eight years ago, the PPA for only 2,800 MW was done,” said Ghising in a press meet organized on Friday.

According to Ghising, the government policy to promote the private sector in hydroelectricity production has increased the PPA to around four-folds over the period.

The NEA reports show that hydropower projects totaling the capacity of 7,000 MW are now under construction. Similarly, other projects of around 10,000 MW are in the process of signing the PPA. In addition, the power utility has called for signing PPAs of 800 MW of solar power.

The NEA has aimed to take the country’s electricity production capacity to 10,000 MW by fiscal year 2028/29. Currently, 270 MW projects led by the NEA’s subsidiary Chilime Hydropower Company are at the final stage of their completion. Likewise, the subsidiary company has planned to construct another 300 MW projects soon.

According to the NEA, the construction of 42 MW Upper Modi A, 18.2 MW Upper Modi, 210 MW Chainpur Seti and 99 MW Tamakoshi V has been started. The 1,063 MW Upper Arun and 670 MW Dudhkoshi Storage Hydropower plants have completed their financial closures.