Laxmi Capital News
Nepal Electricity Authority plans to end industrial load-shedding from mid-May

Nepal Electricity Authority is planning to end industrial load-sheddingfrom mid-May as the utility will be able to supply power as per demand from thewet season onwards.

It will be able to sustain the supply during winter as well as the456-megawatt Upper Tamakoshi Hydroelectric Project will start generating powerby the end of this year and some private sector projects will also becompleted, according to Kul Man Ghising, managing director of NEA.

Currently, the power utility has been cutting electricity to industriesfor three hours a day during peak time to meet the domestic demand fromavailable electricity supply. However, NEA Managing Director Ghising saidindustrial users would also get regular power to operate industries after threemonths.

NEA had announced elimination of load-shedding for domestic users frommid-April 2017. The power utility has taken various measures to optimiseavailable electricity by controlling leakage and encouraging the use of LEDlights, among others.

Currently, the peak time load is around 1,300 megawatts whereas supplystands at around 964 megawatts. Electricity generation from snow-fed riversgoes down to one-third of the installed capacity of run-of-the-river hydropowerplants and most of the hydroelectricity projects are of this type.

Elimination of load-shedding in the industrial sector is expected toboost industrial output. Capacity utilisation of Nepali industries picked up inthe last fiscal as electricity supply to industrial units improved. Accordingto a study carried out by Nepal Rastra Bank in major industrial blocks, namely,Kathmandu, Biratnagar, Birgunj, Janakpur, Pokhara, Butwal, Nepalgunj andDhangadi, the average capacity utilisation of industries in fiscal 2016-17stood at 57.3 per cent against 48.2 per cent in 2015-16. Industrial GDP infiscal 2016-17 recorded double digit growth, according to the central bankreport.

Ghising further said NEA could supply regular electricity to the BirgunjIndustrial Corridor immediately as power import from India had gone upfollowing upgradation of the Raxaul-Parwanipur cross-border transmission line.Along with supply capacity enhancement, the power utility has been upgradingand augmenting the distribution system. This will meet the increased demand infuture, according to NEA. It is reported that NEA has been developingdistribution system eyeing the potential of industrialisation.

As per NEA, 80 per cent of the total electricity supplied is beingconsumed by domestic users and the industry sector consumes only eight per centof the total electricity. Industries were compelled to use diesel generators tooperate before the NEA improved electricity supply to industries. Along withbringing down the production cost, regular power supply to industries will alsoincrease the lifespan of machines, said industrialists.

Source: The Himalayan Times 25th February, 2018



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