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Sagar Raj Goutam Senior Divisional Engineer Ministry of Energy Government of Nepal [email protected] www.moen.gov.np Nepal Country Report Workshop on Energy Connectivity and Transboundary Power Trade in Asia and Pacific: Concept, Barriers and Opportunities 7-9 November 2015, Suzhou, China

Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

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Page 1: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Sagar Raj GoutamSenior Divisional Engineer

Ministry of Energy Government of Nepal

[email protected]

Nepal Country Report

Workshop on Energy Connectivity and Transboundary Power Trade in Asia and Pacific: Concept, Barriers and

Opportunities7-9 November 2015, Suzhou, China

Page 2: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Presentation Outline

I. Country Context

II. Water Resource

III. Sectoral and Institutional Context

IV. Demand and Supply Scenario

V. Cross border Power Trading

VI. Forward Looking

Page 3: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

I. Country Context

Landlocked country in South Asia

Geographical Area : 147,181 Sq. Km

Highest Elevation : Mount Everest

Lowest Elevation : 76 masl

Nepal

Population : 27.8 million

GNI Per Capita : USD 730

GDP : 19.64 BUSD

HDI Ranking : 145

Economic Growth Rate : ~5% (Expected to decline)

Foreign Direct Investment : 0.2% of GDP

Page 4: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

ConstitutionCountry Context……

• New Constitution of Nepal came into effect from Sept 20 ,2015• Federal Democratic Republican System of Governance• Three tier of governance structure

• Federal• State• Local

• National Natural Resource and Fiscal Commission• Royalty distribution modality formulation• Basis for investment and return• Dispute resolution

• Jurisdiction of Federal Authority

• Policy and standard on protection and multipurpose use of water resources• Cross border and cross state transmission line• International border rivers• Mega projects( Power, Irrigation, etc)

Page 5: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Geographical Regions

Terai Region – 14%

Country Context……

Hilly Region – 64%

High Mountain -19%

Page 6: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Geological Cross Section

11th Most Earthquake prone country First recorded earthquake 1255AD: Killed

1/3rd of Kathmandu population Last great Earthquake of magnitude 8.4 in

1934; 10,000 deaths in Kathmandu Valley

7.6 Magnitude Earthquake April 25 2015 76 Km NW of Kathmandu

Earthquake followed by hundreds of aftershocks of magnitude > 4 and continuing

8790 people lost lives Devastating damages throughout

Data Source : Nepal Earthquake 2015, Post Disaster Needs Assessment, National Planning Commission, Nepal

Country Context….

Page 7: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

II. Water Resource

Page 8: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Total Water available per year: 225 BCM

Around 4% of Nepal’s total area is covered by glaciers (Mool P. et al.2001) and there are 3,252 number of glaciers.

Rivers types in Nepal: Perennial (Snow Fed) and Non-Perennial

Four Major Rivers Basins: Koshi, Gandaki, Karnali and Mahakali

6000 rivers and rivulets and 5,358 natural lakes including glacial lakes

78% flow in four major basins

Climate Variation : Tropical to artic depending upon elevation

Water Resource….

Some Figures

Page 9: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

III. Sectoral and Institutional Context

Energy Consumption

By Sector

376.3 million GJSource: WECS survey 2011/12

By Fuel type

Page 10: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Availability of Natural Resources

Sectoral and institutional …..

• Economically viable hydro potential : 43000 MW• Commercial solar power potential : 2100 MW • Wind power potential : Yet to be mapped

• Limited Fossil fuel resources • Fully relies on import of petroleum products (POL) to meet transportation &

cooking needs• POL imports : 1.34 BUSD (2014); 10% increment from last year

• Hydropower : least-cost generation option

Access to Electricity Services

• Grid connected population : 50%• Off grid connected population : 25 %

Page 11: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Institutional Framework

Sectoral and institutional …..

Alternative Energy Promotion Center under Ministry of Environment looks after other renewables

Page 12: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

IV. Demand and Supply Scenario

689 698 706 719 762 787

2774 27133164

3433 3468 3559

0

500

1000

1500

2000

2500

3000

3500

4000

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Installed Capacity (MW) Domestic Generation (Million KWh)

Sources: NEA Annual Report

Installed Capacity & Generation

• Slow growth• Hydro dominated system with 7 % multifuel• One storage and mostly ROR plants• Around 1/3rd contribution from IPPs

Page 13: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

• Annual Energy Demand growth : 9%

• Electricity Generation annual growth rate: 4.3 %

Demand and Supply …….Electricity Imports v/s Demand Deficit (GWh)

• Demand Supply gap partly mitigated by import : 150 MW to 170 MW

• Import – Annual Growth rate : 17%

Page 14: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

• Demand outgrown the supply• Increased dependency in import• 35 % of peak demand is unmet.

Demand and Supply …….Electricity Demand Supply Position

Page 15: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

• Short to medium term, the power deficit in dry season likely to persist

• Deficit is projected to come down during the wet season with the commissioning of hydro projects

• By 2020-2021, expected generation addition would result in surplus –opportunity for export

• Short term : Additional import to bridge the gap.

Demand and Supply …….

Future Scenario as per NEA forecast

Page 16: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

V. Cross Border Power TradingCross border power infrastructure

• Indo Nepal Power exchange (5MW) in 1971

• Receives power in three modes• River Treaties• Border Town exchange

program• Commercial power trading

with PTC India

• 21 interconnections for power exchange through 11 kv, 33 kvand 132 kv transmission line

Page 17: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

Proposed Cross Border Interconnection

• C/B trade to be facilitated through development of T/L that connects Indian NationalGrid with Nepal’s National Grid.

• Opens up and facilitate opportunity for trade.

• One interconnection of 400 KV is in advance stage of completion (D-M T/L)

• Two JV companies established to develop, own, operate and maintain T/L in respective territory

• NEA entered in Power Sale Agreement with PTC India and two separate Implementation and Transmission Service Agreement with JV Companies.

• Other interconnections are also being worked out as Power Trade Agreement between Nepal and India came in to effect.

Cross border power trading….

Page 18: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

VI. Forward Looking

National Front• Implementing New Constitution• Drafting laws and legislations in tune with constitution vis a vis energy / water

resource• Establishment of Regulatory framework• Make functional and operationalization of National Grid Company and Public

Generation Company• Establish Power Trading Company• Commissioning of hydropower projects under construction and cross border

T/L (DM)

GON Commitment in broader cooperation

• PDAs of export oriented projects (targeted to India )• Power Trade Agreement between Nepal and India (Bilateral)• SAARC Framework Agreement on Cooperation in energy (Regional)

And Beyond• Very much Open to the concept of broader connectivity

Page 19: Nepal Country Report...• Establishment of Regulatory framework • Make functional and operationalization of National Grid Company and Public Generation Company • Establish Power

THANK YOU !!!