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The Nepal Electricity Authority (NEA) has prioritized the construction of pumped storage hydropower projects to manage daily electricity demand fluctuations and enhance the country’s energy security. The NEA’s Project Development Department has identified 156 potential pumped storage projects nationwide.

Of these, 33 projects with a combined capacity of 42,000 MW have been shortlisted and categorized. A feasibility study is underway for a 332 MW pumped storage project in Syarphu Lake, Rukum (West), after obtaining a survey permit. Additionally, the 670 MW Dudhkoshi Reservoir Hydropower Project is studying a 200 MW pumped storage component.

A feasibility study is also being conducted for the 1,596 MW Hulingtar-Dukim Pumped Storage Project in Dhading’s Benighat Rorang and Chitwan’s Ichhakamana rural municipalities. Located near Kathmandu, this project benefits from access to roads, transmission lines, and other necessary infrastructure. The NEA’s Project Development Department is currently conducting a Detailed Engineering Study (DEX) for the project.

The project involves constructing two reservoirs by building 45-meter and 103-meter-high dams on the Hugdi (upper) and Mowa (lower) rivers, respectively. The power plant will be situated on the Mowa River. Electricity will be generated using water stored in the Hugdi reservoir, and after generation, the water will be pumped back from the Mowa reservoir to Hugdi. The project is designed to operate at full capacity for six hours during peak demand periods.

Pumped storage projects store water in an upstream reservoir during off-peak hours when energy prices are low. This stored water is later used to generate electricity during peak hours when demand and prices are higher. These projects play a crucial role in power system stability, peak demand management, and surplus energy utilization. They also enable Nepal to generate and consume electricity efficiently while exporting surplus energy to India at premium rates during peak periods.

On Saturday, NEA Executive Director Kulman Ghising, Project Development Director Nasibman Pradhan, and other officials inspected the Hulingtar-Dukim project site. Ghising highlighted the project’s advantages over others due to its strategic location, favorable environmental and social conditions, accessibility, infrastructure availability, and proximity to transmission lines and power demand centers.

Ghising stated that the project would initially be developed with a capacity of 510 MW in the first phase, eventually expanding to full capacity. “The process of obtaining a survey permit will be prioritized to accelerate construction,” he said. The project is expected to generate approximately 3.36bn units of electricity annually, with an estimated cost of $587,000 per megawatt.

The Nepal Electricity Authority (NEA) is constructing six 132/11 kV substations at various locations in Kathmandu and Bhaktapur to enhance the adequacy, reliability, quality, and safety of electricity transmission and distribution within the valley. Among these, the Teku substation in Kathmandu is already operational. The Futung and Mulpani substations are in their final stages, with work underway to bring them into operation within two months. The Changunarayan substation in Bhaktapur has been completed. The Chobhar substation is expected to be operational by June, while the Thimi substation in Bhaktapur will be completed within eight months.

Each substation has a capacity of 90 MVA. Once all are completed and operational, the infrastructure will be capable of handling 500 MW of electricity, meeting the Kathmandu Valley’s current demand. To address future demand, the NEA has set a 2050 deadline and is advancing plans for phased construction of transmission and distribution infrastructure in key areas of the valley. With peak electricity demand projected to reach 3,100 MW by 2050, the NEA is developing 20 new substations at 220, 132, 33, and 11 kV levels.

Land has been acquired for these substations, and preliminary work, including surveying, has been completed to construct a 220 kV transmission ring around Kathmandu Valley’s perimeter. The Lapsiphedi substation, currently under construction, will supply electricity to the valley from hydropower projects in the Tamakoshi and Sunkoshi river basins.

To improve the reliability, quality, and modernization of Kathmandu Valley’s electricity supply, the NEA is implementing various projects, including the construction of new substations, automation of existing ones, underground cabling, and the addition and strengthening of feeders and transformers.

NEA Managing Director Kulman Ghising inspected the substations under construction on Friday, urging their timely completion to meet growing electricity demand. He emphasized that once these substations are operational, electricity demand management and supply in Kathmandu will become significantly more efficient and reliable.

To enhance electricity supply in the southeastern region of Kathmandu, the construction of a 132/11 kV substation in Mulpani, Kageshwori Manohara Municipality, is in its final stage. The Chapali-Bhaktapur 132 kV transmission line will be connected to the Mulpani substation, ensuring electricity distribution. Eight 11 kV feeders from the substation will supply power to areas such as Jadibuti, Pepsicola, Kandaghari, Gothatar, Mulpani, Jorpati, Sankhu, and Thimi. Work is underway to make the substation operational by March.

The construction of a 132/11 kV substation in Futung is also in its final stages. The Balaju-Chapali 132 kV double circuit transmission line will be tapped at the Futung substation to supply electricity to the surrounding areas. Once operational, power supply to Balaju, Nepaltar, Goldhunga, and other areas will improve.

A 132/11 kV substation has also been constructed in Chobhar, Kathmandu, following disruptions in construction at Khokana, Bungmati, Harisiddhi, and Lamatar under the Thankot-Chapagaun-Bhaktapur 132 kV transmission line, a crucial project for improving Kathmandu Valley’s electricity supply. The substation will receive electricity from the Matatirtha Substation, with work progressing to make it operational by June.

Additionally, a 132 kV underground transmission line will be built from the Chobhar Substation along the Ring Road to connect with the Lagankhel Substation in Lalitpur, which is being upgraded to 132 kV. The underground line will later extend to Chapagaun and Harisiddhi.

The Nepal Electricity Authority (NEA) has announced that there will be disruption in supply of power in Kuleshwor, Baneshwor, Jorpati, and Kirtipur distribution centers in Kathmandu for eight days starting from today.

The electricity supply to these areas is being cut off in order to underground the electrical distribution lines, NEA stated.

NEA Project Management Directorate has stated that electricity supply will be cut off from 11 am to 4 pm in the locations under those feeders today.

According to the Directorate, there will be power outages in the areas around the Bhatkekopul bridge (Chabahil) on Monday, the areas around the Kalanki Land Revenue Office on Tuesday, the areas of Balkumari, Imadol, and Lubhu on Wednesday, the areas from Naikap to Balambu on Thursday, the areas from Balkhu to Chobhar Gate on Friday, and the areas under the Jorpati feeder from Baba Chowk to the Cricket Stadium on Sunday.

Similarly, it has been announced that the area from Gaushala Chowk to Old Baneshwor on Monday and the area from Ratopul to Gaushala on Tuesday will experience power outages.

Apologizing for the disruption of electricity supply over eight days, the authority has stated that there will be no 'shutdown' if the weather remains unfavorable.

The Nepal Electricity Authority (NEA) is arranging alternative power supplies to ensure uninterrupted construction of the Kathmandu-Tarai/Madhes Fast Track in Bhimphedi Rural Municipality-8 and Indra Sarovar Rural Municipality-3, Makawanpur.

To facilitate ongoing construction of bridges, tunnels, and other structures, the NEA will require approximately 12 MW of electricity in these areas. The plan involves operating the previously used 66 kV line from the Kulekhani First Hydropower Station at 11 kV, relocating a 22.5 MVA power transformer from Jageda to the Dhorsing Substation, and supplementing the supply with a higher-capacity transformer.

Floods and landslides on Sept 19-20 severely damaged the 22 MW Bagmati Khola Small Hydropower Plant and the 2 MW Khanikhola project, cutting power to the Malta Substation and halting electricity supply to the fast track. Reconstruction of these projects is underway, with completion expected by next Chaitra.

A high-level NEA team, led by Managing Director Kulman Ghising, inspected the affected areas and explored immediate power solutions. Ghising emphasized the importance of ensuring power supply through alternative measures to avoid delays in this national pride project.

Deputy Managing Director Manoj Silwal instructed local distribution heads to expedite restoration efforts. Once the damaged hydropower projects resume operations, the previous power supply arrangements will be reinstated.

The 132/33 kV substation constructed in Markichowk, Tanahun, has officially come into operation. The Nepal Electricity Authority (NEA) recently completed the substation’s construction, marking the conclusion of the Madhyamsyangdi-Dumre-Damauli 132 kV transmission line project. Additionally, the Madhyamsyangdi-Damauli-Marsyangdi 132 kV double circuit transmission line is now operational.

The commissioning of the Markichowk Substation is expected to significantly reduce issues such as voltage drops, frequent line trips, and voltage loss in Gorkha, according to Kulman Ghising, Executive Director of NEA. He explained that electricity was previously supplied to Gorkha through a 33 kV line via Damauli-Dumre-Ambukhaireni, which presented challenges due to the long distance. With the new substation, electricity will now flow from Markichowk to Gorkha via Ambukhaireni, shortening the 33 kV line, reducing system leakage, improving voltage stability, and ensuring a more reliable supply.

Ghising also noted that electricity from the 132 kV line at Markichowk Substation can be stepped up to 220 kV through the 132/220 kV substation under construction as part of the Marsyangdi-Matatirtha 220 kV transmission line project. This ongoing project includes the development of a 132/220 kV substation at Markichowk itself.

The project, initiated in fiscal year 2012/13, involved a contract with the Chinese company Pinggao Group Co Ltd. The scope included constructing the Markichowk Substation, expanding GIS bays at Madhyamsyangdi and Damauli substations by one and two, respectively, and adding GIS bays at Lower Marsyangdi. The total estimated cost, funded by the Government of Nepal, NEA, and a concessional loan from the Asian Development Bank, was Rs 600m. According to project chief Shah, the construction was completed within the estimated budget.

The NEA is pursuing a nationwide campaign to build new substations and expand the distribution system to provide quality and reliable electricity. Following the successful elimination of load-shedding in Nepal, the NEA plans to construct and upgrade 30 grid substations and 20 distribution substations during the current fiscal year. Additionally, the authority aims to complete 600 circuit kilometers of transmission lines and 8,000 circuit kilometers of distribution lines within this period.

The government has also adopted a policy of developing high-capacity transmission lines to ensure a consistent power supply for existing and upcoming industrial areas and corridors. To support this, the NEA is actively upgrading substations, building new transmission lines, and strengthening the overall power distribution network.

The Nepal Electricity Authority (NEA) has announced that industrial customers will face power cuts during evening peak hours until the Upper Tamakoshi Hydropower Project resumes operations. The project, which was damaged by flooding and landslides on Sept 27 and 28, has been temporarily shut down.

NEA Managing Director Kul Man Ghising stated that managing power supply during winter has become challenging due to the closure of the 456 MW-capacity Upper Tamakoshi Project, the largest hydroelectric facility connected to the National Transmission Grid.

He explained that power cuts are necessary for industrial customers during evening peak hours, as electricity demand surges and supply management becomes difficult. However, NEA assured that power supply to other customers will remain unaffected.

The NEA clarified that these cuts are exacerbated by a seasonal drop in electricity production from run-of-the-river hydropower projects, which generate one-third less power in winter due to reduced water flow. Additionally, the NEA has been unable to import sufficient electricity from India to meet peak-hour domestic demand.

Repair and maintenance work at the Upper Tamakoshi Project is underway, with power generation expected to resume by Dec 25.

To address winter demand, the Central Electricity Authority of India has permitted Nepal to import up to 654 MW of electricity daily until 15 March 2025. This includes 600 MW via the 400 kV Dhalkebar-Muzaffarpur Cross-border Transmission Line and 54 MW via the 132 kV Tanakpur-Mahendranagar Transmission Line.

However, electricity imports are restricted during peak hours (5 pm to 9 pm), further complicating power supply management, the NEA added.

The Nepal Electricity Authority (NEA) has earned a profit of Rs 9.11 billion in the first three months of the current fiscal year. This is the profit before tax deduction.

A total income, including interest and other revenue from mid-July to mid-September of the current fiscal year was Rs 41.80 billion and spending accounted for Rs 32.69 billion. 

During the reporting period, NEA spent Rs 32.69 billion for operating maintenance. Similarly, the electricity sale from various distribution centers was Rs 28.95 billion.

The NEA has purchased a total of 4.10 billion units from its own and subsidiary companies as well as other private manufacturing companies. NEA Managing Director Kulman Ghising informed that a payment of Rs 21.09 billion was made for this purpose.

Nepal Electricity Authority (NEA) has said the industrial customers would have to bear with power cuts in the evening time until the re-operation of Upper Tamakoshi Hydropower Project which was damaged by flooding and landslide on September 27 and 28.

NEA Managing Director Kul Man Ghising said it has been difficult to manage power supply in the winter, as the 456 MW-capacity Upper Tamakoshi Project's power generation has been closed due to the damage caused by the floods and landslide. Upper Tamakoshi is the largest among the hydroelectricity projects connected to the National Transmission Grid.

According to him, power supply to the industrial customers had to be cut down during the peak hour in the evening when there is high electricity consumption due to the problem to do with managing the demand.  

The NEA said although there will be some power cuts to the industrial sector with high power demand until power generation is started from the Upper Tamakoshi Project, power supply will be continued to other customers.

It clarified that power supply to the industrial zones had to be cut down to some extent because power production of the run-of-the-river hydropower projects decreases by one-third of their capacity in the winter season as the volume of water in the rivers and streams reduces, and the NEA has not been able to import power from India to meet the domestic demand in the peak hour.

Repair and maintenance of the Upper Tamakoshi Hydropower Project is being carried out with the target of starting power generation by December 25.

According to NEA, the Central Electricity Authority of India has given permission to import up to 654 megawatts power daily, including 600 megawatts via the 400 kV Dhalkebar-Muzzafarpur Cross-border Transmission Line and 54 megawatts via the 132 kV Tanakpur-Mahendranagar Transmission Line, until March 15, 2025, for managing the power demand during the winter season.

However, there is the provision that electricity cannot be imported during the peak hour from 5p, to 9 pm, according to NEA.

Kulman Ghising, Executive Director of Nepal Electricity Authority (NEA), has announced that industries failing to pay their dedicated and trunk line dues will face power cuts again within 15 days. Ghising stated that although service was temporarily restored based on a Council of Ministers decision, industries were given a 15-day window to settle outstanding dues.

In a press conference on Wednesday, Ghising explained that the government has instructed NEA to collect arrears within this period, requiring industries to pay according to the government’s decision. He maintained that the discounted bills for dedicated and trunk lines are accurate, as they are based on Time of Day (TOD) meters, and clarified that NEA will not issue new bills. Industrialists are expected to settle dues based on the current bills.

Some industrialists have contested the accuracy of these bills, taking the matter to court. However, both the Electricity Regulatory Commission and the Public Accounts Committee, along with other bodies, have upheld the disputed bills as correct, dismissing approximately 90 cases. Ghising reiterated that as NEA is bound by its legal framework as a commission, decisions on such bills should not come from other administrative bodies.

The Electricity Regulatory Commission has instructed NEA to offer installment payments but not reconnect service until the first installment is paid. Despite repeated offers to pay in installments, Ghising claims that industries continue to politicize the issue instead of paying their dues.

Following a three-month grace period without payment, NEA disconnected power to delinquent industries on October 24. The authority reconnected service with a plan for 28 installment payments. As of now, approximately 14 industries have paid their first installment, and NEA has again issued a 15-day ultimatum after a cabinet decision on November 10 to reconnect within 24 hours, collect arrears within 15 days based on TOD meters, and implement the Lal Commission report on the dedicated and trunk line arrears.

The Lal Commission Report, established by former judge Girish Chandra Lal under the Prachanda government, aims to resolve the arrears dispute. In response to the government’s directive, NEA’s board of directors reconnected lines on Tuesday and set a deadline to collect dues within 15 days.

Initially, 339 industries were dedicated trunkline customers, most of whom paid their dues, according to NEA data. Of the remaining 39 industries, seven are under a court-ordered stay, while about 28 have yet to pay any installments. Ghising warned that if dues are not settled within the 15-day period, NEA will initiate the disconnection process once more.

Ghising emphasized the need for a long-term solution to avoid the recurring cycle of disconnections and unpaid dues, noting that NEA's financial health is increasingly at risk. “We cut about 200,000 lines each year for overdue payments, even for as little as Rs 1,000. Due to these arrears, collection rates have dropped from over 95% to around 80-85%. If this continues, NEA’s financial position may reach a critical state,” Ghising said.

According to him, NEA must raise about Rs 10-11 billion in revenue monthly, with Rs 7-8 billion allocated to pay independent power producers under Power Purchase Agreements (PPAs), and Rs 2 billion for administrative and maintenance costs. The reduced budget provided by the government, down from Rs 30 billion to Rs 3-4 billion, is insufficient even to cover taxes.

He noted that NEA circulates about Rs 1.5 billion in the market, significantly impacting the broader economy.

The same authority that used to release load shedding routines eight years ago is now earning
Rs 4.19bn monthly through export of electricity. 

Nepal Electricity Authority (NEA) has around 3,300 MW of electricity in its system. From that, a total of 1,929 MW is being internally consumed. Similarly, the total demand of the country lies at 2,633 MW, according to the authority. However, such demand is only for a couple of hours, mostly during mornings and evenings. The authority has managed to earn the mentioned amount by exporting the excess electricity at night, informed Managing Director Kulman Ghising. 

The amount was raised in the first month of the current fiscal year, as announced by the authority. The authority has succeeded in earning income by exporting excess electricity after consumption in the country to India during the rainy season. According to daily records, electricity equal to Rs 131.1m has been exported to India between July 16 and Aug 16. Trade with India is done through the Indian currency. Therefore, around Indian Rs 2.62bn was earned through electricity export in
July 16-Aug 16. 

The average rate of electricity exported from July 16 to Aug 16 was Rs 8.52 per unit. While eight years ago, people had to face 8-9 hours of load shedding during rainy seasons and even up to 24 hours during dry seasons, today more than 700 MW is exported during monsoon, per Managing Director Ghising. 

He mentioned that although, due to natural and technical reasons, lights go off sometimes, today there is no load shedding because of the ability to supply the demanded amount of electricity.

Ghising claimed, “Our first priority is to increase the consumption of electricity in the country. To increase the consumption, the work of reforming and expanding the transmission and distribution system is being implemented as a campaign. The surplus electricity will be exported to neighboring countries India and Bangladesh.”

Ghising informed that the export of electricity to India during the rainy season and significant foreign exchange earnings are making a positive contribution to the country’s foreign exchange reserves and reducing Nepal’s trade deficit with India. “Even though we have to import electricity for a few more months during the winter, the amount of imports will gradually decrease. We have become a net exporter from net importer by selling the excess electricity consumed in the country from last year”, says Ghising. 

The authority is selling the surplus electricity to the Indian company NTPC Vidyut Vyapar Nigam Ltd (NVVN) at a competitive rate in the ‘day ahead’ and real-time market of the Indian Energy Exchange (IEX) and in accordance with the bilateral medium-term electricity sales agreement. NVVN is selling the electricity in the state of Haryana. 

The authority has so far received approval to sell 941 MW of electricity produced by 28 projects in the Indian market in accordance with the competitive market and the medium-term electricity sale agreement. A few days ago, in accordance with the bilateral agreement, an additional 251 MW of electricity was approved for the Indian states, Bihar and Haryana. Out of this, 125.89 MW of electricity from two additional hydroelectric projects will be sold to Haryana through NVVN while 109.61 MW from two projects is currently being sold to Haryana. A total of 125 MW generated from 10 hydropower projects will be exported to the state of Bihar as per the mid-term agreement. The first export of electricity to Bihar and additional to Haryana will start soon after completing the technical process. 

Currently, 580.89 MW of electricity generated by 14 projects are being sold at competitive rates. Since the export of electricity in the amount approved a few days ago has not yet started, currently 690.50 MW of electricity is being exported to IEX and Haryana on a daily basis.

An additional 10 percent of the sanctioned quantity of electricity can be exported. Therefore, currently more than 700 MW of electricity is not being exported on a daily basis. Last year, electricity worth
Rs 16.93bn was imported from India. In the same period, electricity worth Rs 17.06bn was exported.

In the last year, Nepal became a net exporter of electricity from being a net importer by exporting
Rs 130m more than imports. The authority started exporting electricity from 3 June 2022. In the first stage, 39 MW was exported to India from Trishuli and Devighat hydropower stations. 

A long-term electricity agreement has also been signed between the two countries to export 10,000 MW of electricity in 10 years. Due to the political changes in Bangladesh, although final preparations to export 40 MW have been made, the export remains postponed.