Energy

AGRICULTURE ENERGY ENERGY

During the review period, meetings have been held to develop rules and guidelines for Nepali power producers to gain access to Indian markets, to strengthen and expand the power sector in the country, with an ambitious inter-continental pipeline project in the process, the energy sector has experienced positive changes, and Nepal now looks forward on building cleaner and sustainable sources of energy.

Meeting held to strengthen the power sector cooperation between India and Nepal by investing in Nepal’s power projects, developing transmission lines, and integrated

power grids: The 8th meeting between the joint steering committee and joint working group of Nepal-India cooperation in power sector was held virtually in the presence of the power secretaries of both the neighboring countries. The meeting assisted in developing suitable rules and guidelines for allowing Nepali power producers access to Indian markets, development of energy banking mechanism and development of crossborder high-voltage transmission lines. The meeting also reviewed the progress of the SJVN Ltd-developed 900MW Arun-III Hydro Electric Project in Nepal. The joint meeting further helped in strengthening and expanding the power sector cooperation by investing in Nepal’s hydro and solar power projects, building more cross border transmission lines, and developing integrated power grids. The cooperation between the two parties set a positive example with projects such as completion of South Asia’s first cross-border 400 KV Muzaffarpur-Dhalkebar transmission line, agreement on funding modality for Gorakhpur-Butwal 400 KV line for which the construction will commence soon, and the brisk progress on the 900MW Arun-III Hydro Electric Project19 .

NOC uninformed of the diesel theft that happened 100 kilometers away

from Nepal: Indian daily newspaper, Navbharat Times reported that over 1000 liters of diesel has been stolen from Nawijung, Bihar around 100 kilometers away from Nepal however, Nepal Oil Corporation (NOC) denies any loss although it had been informed that the pipeline was attacked. The corporation further clarified that it has been getting diesel in the expected amount regularly and those responsible for the attack on the pipeline has been arrested by the Indian police.20

NOC to construct country’s second inter-continental pipeline project:

The second inter-continental pipeline project in the country, SiliguriCharaali petroleum pipeline is set to begin soon. Out of the total 50 km long pipeline, 15 km lies on the Nepali side and the remaining 35 km in the Indian side. Once completed it will have the capacity to store 12,050 kiloliters petrol, 28,050 kiloliters diesel, 450 kiloliters kerosene and 250 kiloliters air fuel.21

OUTLOOK

With approximately 1 GW of installed capacity, hydropower provides almost all of Nepal's domestic electricity generation on the grid. The economy is experiencing a rise in power demand. According to a research22, the installed capacity requirement will reach up to 18,000 MW by 2025 which is more than double of what Nepal is producing now (6012GWh).23 Along with this, the government must hold meetings/talks to amend the power sector cooperation with other neighboring countries (apart from India) for development of energy banking mechanism, development of cross-border high-voltage transmission lines.