NEFPORT ISSUE 47 – DECEMBER 2021
Energy and Environment The review period witnessed some key developments in the Energy and Environment sectors of Nepal. The Nepal Electricity Authority (NEA) has set some ambitious investment targets for the next four years with plans to invest as much as NPR 364.71 billion (USD 3.06 billion) for power generation, transmission lines, distribution systems, and subsidiary companies. Similarly, Nepal has received approval to export its surplus power to India through competitive bidding. The Upper Tamakoshi Hydropower Project also started production in full capacity. Similarly, several large hydropower projects are in the pipeline. To increase domestic consumption, the Nepal Electricity Regulatory Commission reduced the tariff rates for electricity in the country as well. In terms of key developments in the environment sector, Nepal and its development partners signed the ‘Kathmandu Declaration’ to promote Nepal’s Green, Resilient and Inclusive Development action plan. POLLUTION AND EMISSIONS
receiving grants for the program.
Environment Protection Programs to be Launched in Schools: Aiming to make the government’s ‘Nepal Clean Environment’ campaign a success, the Department of Environment (DoE) has made plans to conduct environmental protection programs in 25 schools across Nepal.90 The program involves expansion of greenery and pollution control activities in the community and schools in all seven provinces to develop sanitation as a culture in the country. The department has invited applications from community, government, and private schools along with proposals, implementation plans, activities, and estimated costs. A seven-member committee chaired by the Deputy DirectorGeneral of the DoE would evaluate the applications and select schools that would be
PROJECTS AND PROGRAMS Asian Development Bank Approved a USD 60 million (NPR 7.15 billion) Loan to Support the Electricity Grid Modernization Project: The Asian Development Bank (ADB) approved additional support of USD 60 million (NPR 7.15 billion) loan for the ongoing Electricity Grid Modernization Project. The project is working on upgrading power transmission and distribution systems in Nepal. This includes automating 34 existing grid substations across Nepal, completing the installation of smart meters in the Kathmandu Valley, upgrading 144 km, and constructing 113 km of transmission lines, and establishing an electricity distribution system command The and control center.91 additional funding would help expand the original project’s
scope through the construction of 16 km of 132-kilovolt transmission lines from Nepalgunj to Kohalpur, and from Chovar to Lagankhel. It would also introduce an additional 477 mega volt-amperes of substation capacity through the construction of substations in Dumkibas, Lagankhel, Mulpani, and Nepalgunj. The First Section of Koshi Corridor Transmission Line Completed: The first section of the 220 KV double circuit Koshi Corridor transmission line linking Inaruwa-BasantapurBaneshwar-Tumlingtar was completed and handed over to the Nepal Electricity Authority (NEA) on October 6, 2021. The completion of the power line allowed 550 megawatts of electricity to flow from hydropower plants in the eastern region into the national grid.92 The 106 km long Koshi Corridor transmission line costing NPR
37
