KATHMANDU: The National Transmission Grid Company (NTGC) has projected a need for Rs 910 billion in investment by 2040 to support the electricity supply system for the anticipated production of 28,500 MW of electricity. This estimate is part of a revised master plan submitted to Energy Minister Deepak Khadka, outlining the financial requirements for building transmission infrastructure within the specified timeframe.
Netra Prasad Gyawali, the CEO of NTGC, said that the master plan is in line with the government's aggressive goal of producing 28,500 MW of power by 2035. After being given to the ministry, the draft plan may be further improved in response to input from important parties before being finalized.
The new master plan anticipates that Rs 720 billion will be needed by that year, with a further Rs 190 billion needed by 2040. The previous master plan, prepared in 2018, predicted requirements until 2035. In order to handle the nation's rising power generation, the adjustment takes into account the growing demand for investment in the transmission sector.
The objective of the master plan is to create a strong and well-balanced transmission system in order to avoid redundant investments and inadequate infrastructure. Additionally, it describes how common transmission corridors will be developed and how a legal framework will be established to support this, enabling the private sector to use the system as a hub for connections.
Currently, Nepal faces significant electricity wastage due to the lack of adequate transmission lines, especially during peak production seasons. In the last two years, 20 electricity projects with a combined capacity of 339.07 MW have experienced electricity wastage because of insufficient transmission infrastructure. This issue is expected to worsen as electricity production grows.
To address this, the master plan emphasizes the importance of providing private power producers with timely access to transmission lines. It also suggests improved management of land and forest areas affected by transmission line construction, which is essential for reducing electricity wastage and ensuring the optimal use of produced electricity.
The plan also envisions investment models involving the government, private sectors, and public-private partnerships to fund transmission infrastructure development. This is key to securing the financial resources necessary to prevent electricity wastage and support future power generation.
At 6,507 circuit kilometers, Nepal's transmission lines have now more than doubled in length during the last eight years. The increase of the nation's transmission infrastructure is reflected in the 1,213 circuit kilometers of 220 kV lines and the 644 circuit kilometers of 400 kV lines.
To optimize the advantages of exporting electricity, 400 kV transmission line development is particularly important. In the future, when exporting huge amounts of power, 400 kV lines will be essential since they can carry over 1,200 MW, while 220 kV lines can only handle 300–400 MW.
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