The plan will identify necessary corridors for extension of transmission lines including cross-border projects and strengthen existing networks keeping in view possibilities of future power generations from several upcoming projects. [break]
"The master plan will be completed by June-July 2011," Energy Minister Prakash Sharan Mahat told Republica.
Mahat said power generation and transmission line extension should go hand in hand in order to promote the energy sector.
"We will identify those river basins that have potentials to generate more power and prioritize them in the master plan," Mahat said, adding the government will then seek funds for its implementation. Koshi, Gandaki, Karnali and Tamakoshi river basins have more potential to generate power.
Currently, extension of transmission lines in the country has been going on haphazardly. Rajendra Kishor Chhetri, under-secretary at the Ministry of Energy, told Republica that with such master plan a proper network will be established taking into consideration the areas of priority.
"Haphazard construction of transmission lines will be stopped by this mater plan," Chhetri said.
NEA plans to construct about 3,280 km of transmission line within the next few years in the light of several hydro projects, whose total installed capacity is about 5000 MW, nearing the construction phase. Currently, the country has only 1980 km of transmission line.
NEA has been incurring a loss of about three billion rupees every year due to inadequate transmission line network and it has forecasted an additional loss of the same amount after four years. It also laments that the government has doled out inadequate fund this year for extension of transmission lines. It had demanded Rs 1.28 billion from the government but was provided only Rs 400 million.
The government enters Power Purchase Agreements (PPA) with developers under "take or pay" policy and failure of the former to evacuate power from plants owing to the inadequacy of transmission lines will incur a heavy losses to NEA.
Earlier, NEA Executive Director Jivendra Jha had announced that he will present a proposal at the NEA board to stop PPA deals with developers fearing additional loss.
NEA aims to complete construction of two cross-border projects (400 kV) -- Mujaffarpur-Dhalkebar (130 km) and Duhabi-Hetauda-Butwal (300 km) -- within three years with funding from the World Bank. The completion of this project will facilitate adequate power exchange between Nepal and India.
Export-oriented mega projects like Upper Karnali (900 MW), Tamakoshi 3 ´A´ (880MW), Upper Marshyangdi (600 MW), Arun III (402 MW), Lower Arun (400 MW), Balefi (50 MW) and Likhu (34 MW), which have been expressing skepticism over power evacuation issues, are said to be encouraged by this plan.
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