I was appointed as the Managing Director of Nepal Electricity Authority for the second time for 4 years by the decision of the Council of Ministers of Nepal Government on 25th Shrawan 2078. It has been three years since he was appointed as the Managing Director of the Authority.

Based on the decision of the Council of Ministers, the Ministry of Energy, Water Resources and Irrigation and I had a performance agreement with various indicators of authority reform. In the evaluation of the performance agreement made by the Ministry of Energy, 94.23 and 98.94 percentage points were obtained in the financial year 2078/79 and 2079/80 respectively. A.W. 2080-81 is under evaluation.

Three years ago, during my assumption of office, I announced that I have accepted the biggest challenge of my personal life and returned to the NEA for a second term to fulfill the responsibility given by the Government of Nepal.

To accomplish this, further improvement in the financial condition of the authority, good governance within the organization, electrification to bring electricity to every citizen's home, expansion and strengthening of infrastructure for transmission and distribution to make electricity supply sufficient, reliable, quality and safe, advancing large hydropower projects for generation, increasing domestic consumption. The work was carried forward keeping the export of excess electricity as a high priority.

After the country became free from load shedding and regular electricity supply started, to address the challenges in the system and to expand, improve and power, the infrastructure of the system for reliable and quality electricity supply to the consumers, the task of automating it through technology has been carried forward with special priority.

Eight years ago, i.e. in the financial year 2072-73, the electrification coverage was only 58 percent. Among the achievements made during the three years, the achievement in electrification is important. Electrification was 89.7 percent three years ago and now it has reached 99 percent.

Eight years ago, the number of electricity customers, which was 2.97 million, has now reached 5.93 million, including communities supply. Now the country has reached the stage of declaring that it is fully electrified.

For electrification, the authority has invested heavily from its own resources. Free meters have also been distributed to provide electricity to poor households like squatter settlements and Chepang, Musahar. Not only the electrification of villages, but also in the partnership with local bodies, smart street lights have been expanded and a large investment has been made to lighten the city.

Eight years ago, 3.72 billion units of electricity were consumed annually, but now it has reached 10.23 billion units. Per capita energy consumption has increased from 131 units to 400 units. Not only to light the lights in homes and residences, but also in the campaign to enrich the country by increasing internal consumption by supplying electricity to industries, businesses and factories.

As there is sufficient electricity supply in the country, the use of electric vehicles has also increased, electric stoves have started to be lit in kitchens for cooking, which has contributed to reducing carbon emissions due to the reduction in the consumption of petroleum products. In order to promote and encourage the use of electric vehicles to increase electricity consumption, the NEA itself has constructed 62 charging stations and put them into operation in all over Nepal.

More than four hundred charging stations built by the private sector are in operation.

In the period of three years, the authority has achieved great success in making profit by improving institutional governance to reduce technical and non-technical electricity leakage, increase access to maximum customers, reduce financial expenses, increase revenue, expand transmission and distribution lines and substations.

In the financial year 2072-73, the authority had a net loss of 8.89 billion rupees in one year, but since then, it has not looked back at those days. In the financial year 2073-74, NEA started its glorious history of making a net profit of 1.5 billion rupees. It has reached Rs. 31 billion. Eight years ago, the authority had an accumulated loss of Rs 34.61 billion, now it has reached an accumulated profit of Rs. 47.41 billion.

During this period, the electricity tariff has been reduced 3 times by about 25 percent, but the profit is still increasing. Out of about 5.9 lakh customers of the authority, about 2.2 lakh customers have been given free energy by maintaining at a minimum charge of Rs 30 only.

Similarly, for irrigation, electricity is available at 2 rupees per unit, while there is no demand charge for drinking water and concessions have been arranged for energy charges. To encourage electric vehicles, concessional tariff rates have been established at charging stations. In this way, the authority is not only making profit, but also fulfilling its social responsibility with equal responsibility.

In the credit rating done by ICRA Nepal, the authority is continuously getting a 'Double A Plus' rating. This shows that the Authority is able to discharge its financial and economic obligations with confidence. In this way, the profit earned by the authority is not just a blank number appearing in the graph, but it has also become a reliable source of investment in infrastructure construction and service expansion of electricity development, which will also ensure more profit in the future. For the time being, the NEA has moved towards investing 10 percent of its capital shares in large hydropower projects. A large investment has been mobilized in the expansion and strengthening of the infrastructure for electricity transmission and distribution.

In the last 8 years alone, the NEA has been able to invest approximately 100 billion rupees. In addition, in the last eight years, the authority has invested more than 56.68 billion rupees in its subsidiaries and related companies. It is clear from this that the profit of the authority seen from the last audit of the Office of the Auditor General, a constitutional body, is not a paper, but it is a source of internal investment.

The NEA's income has increased to 1116 billion rupees. The total assets of the authority were 211 billion rupees eight years ago and now it has reached 632 billion rupees. The authority has done a real assessment of its property through an international consultant, from which it is seen that the property of the authority will increase further.

Around 40,200 ropanis of land have been identified by uniting the lands all over the country, while last year alone, around 72 ropanis and 12 annas of land have been acquired within the Kathmandu Valley.

The surplus electricity consumed within the country is being exported according to the day-ahead and real-time market of the Indian competitive market and according to the mid-term agreement. The amount of electricity export is increasing every year. Nepal officially started exporting electricity from November 2021. The amount of exports increased last year. 1.94 billion units of electricity have been exported and earned 17.7 billion rupees.

During the rainy season, more than 700 megawatts of electricity is being exported daily. During the dry season, the flow of water in the river decreases and the electricity production from the run-of-the-river hydropower plants in the country decreases, so it is difficult to meet the demand. Therefore, electricity worth 1.91 billion units or 16.93 billion rupees was imported from India last year.

In this way, in the last fiscal year, electricity worth about 13 million rupees more than import was exported, so that from the fiscal year 2080-81, Nepal has succeeded in making a glorious history by becoming a net exporter of electricity itself. It is a milestone, an important starting point for Nepal's hydropower development.

Nepal's clean green energy will soon be exported to Bangladesh. For this, the necessary homework has been completed and a tripartite agreement has been reached between Nepal, India and Bangladesh. Although the agreement has been postponed due to the political unrest created in Bangladesh, we believe that as soon as the situation eases, the agreement will be concluded and the electricity export will start this year.

Expansion of Transmission

Another area where the NEA has made a qualitative leap in the eight years is the transmission line. Significant progress has been achieved in the construction of transmission lines by overcoming challenges such as local obstacles, land acquisition, forest area land use and tree felling approval procedures, and the need to transport construction materials by people, carts and helicopters to work in geographically extremely risky and difficult areas where there is no road. Is

Nepal's national system running on 132 kV transmission line is currently running on 400 kV and 220 kV. The construction of Koshi, Tamakoshi and Kaligandaki Corridor, Masryangdi-Kathmandu, Trishuli-Kathmandu and Hetaunda-Bharatpur-Bardghat 220 kV transmission lines which are dilapidated due to various reasons have been completed. Under the Hetaunda-Dhalkebar-Inruwa 400 kV transmission line, the construction of the Dhalkebar-Inruwa section has been completed and put into operation.

Kabeli Corridor, Solu Corridor, Chamelia Corridor and many other 132 kV transmission lines are completed and operational.

The construction of Khimti-Bahrbise-Kathmandu 400 kV, Masryangdi Corridor 220 kV and Chilime-Trishuli 220 kV transmission lines are in final stage. Apart from these, many transmission lines of 132 kV are under construction. The transmission line which was 2,900 circuit kilometers eight years ago has now increased to 6,500 circuit kilometers.

The construction process of the 400 kV transmission line from Butwal to West Attaria and the South Corridor transmission line passing through the major load centers of the country has been secured by securing investment from various development agencies. The major cities of the country have been divided into 11 clusters and a master plan of transmission and distribution structure that can supply the demand till 2050 has been prepared and implemented gradually.

Dhalkebar-Muzaffarpur 400 kV first international transmission line was built for electricity trade with India, but 220 kV substations at Dhalkebar was left standing. Not only the construction of 220 kV substation was completed within the last 8 years, 400 kV Hetaunda and Inaruwa substations were also completed and put into operation in the meantime.

400 kV substations are under construction at New Khimti, Bahrbise and Lapsiphedi. 220 kV Hetaunda, Dhalkebar, Inaruwa, Trishuli 3B Hub, Chilime Hub, Matatirtha, New Kushma, New Butwal, Bharatpur, Tumlingtar, Vasantpur, Tatopani Dana, New Khimti, Markichoke, Udipur substations have been completed. Many substations of 132 kV have been constructed. The substation capacity has increased to 13,000 MVA, which was 2,200 MVA eight years ago.

New Butwal-Gorakhpur 400 kV, second - transmission line is under construction for electricity trade with India, which can transmit about 2,500 megawatts of electricity. For electricity import and export between Nepal and India, the transmission line capacity of eight years ago was about 350 MW, but now it has reached about 2,000 MW.

Inaruwa-Purnia and Lamki-Bareli 400 kV transmission lines are under implementation. Also, the possibility of building more transmission lines between Nepal and India is being studied. In order to facilitate the electricity trade between Nepal, India and Bangladesh, the construction process of 400 kV transmission line from Inaruwa to Anaramani has been advanced.

Thus, by the year 2035, it is ensured that the transmission line network capable of exporting 20,000 megawatts of electricity will be expanded.

The Chilime-Kerung transmission line has also been advanced for electricity trade with the neighboring country China.

Until 8 years ago, there were 80 distribution substations for electricity distribution, but now it has increased to 197. The substation capacity was only 640 MVA, but now it has reached 2500 MVA. Similarly, eight years ago, the distribution line was 121,000 circuit kilometers, but now it has increased to 28,000 circuit kilometers.

Due to problems in the agreement and coordination of various bodies including roads, there was some delay in the laying of underground wires in the main roads of Kathmandu Valley, Pokhara and Bharatpur Metropolitan City. However, the work has continued to be completed in some time. Until 8 years ago, 25.78 percent electricity was leaking from the system. By making the measures taken for leakage control more systematic and effective, the leakage of the system has been reduced to about 12.73 percent in the last financial year. NEA has earned an additional income of about 12 billion rupees per year during this period only from leakage control.

The total connected capacity of the NEA's subsidiary companies and private sector power projects has reached 3157 megawatts, while in the last eight years 2300 megawatts have been added. Out of this,1706 megawatts have been added in the last 3 years. About 95 percent i.e. 2991 megawatts of connected capacity is the contribution of hydropower. Thermal energy is 53 MW, solar energy is 107 MW and biomass energy is 6 MW.

The Power Purchase Agreement (PPA) with the private sector power projects, which was stalled for various reasons until eight years ago, has been opened and separate rates have been set for reservoir-based, peaking run-of-river, run-of-the-river and solar energy. This has increased the attraction of domestic and foreign investors in Nepal's hydropower.

Eight years ago, a power purchase agreement of only 2,800 megawatts was signed. Due to the policy taken to encourage private sector projects, now a power purchase agreement of more than 10,300 MW has been signed. Within the next five years, i.e. in the year 2028-29, the connected capacity of Nepal is projected to reach nearly 10,000 MW. About 7,000 megawatt projects are in various stages of construction to meet the above target.

About 10,000 MW projects are in the process of PPA. The NEA has invited bids for the PPA of 800 megawatt solar power, giving priority to solar power generation.

NEA In Generation

The NEA, which has been increasing its income, has increased its investment not only in transmission lines, but also in power generation. Through the NEA's subsidiary company, 140 MW Tanahun Reservoir, 40 MW Rahughat and 37 MW Upper Trishuli 3B, Rollwalling 20 MW projects are under construction

Under the leadership of Chilime, NEA's subsidiary company, the 270 MW projects under construction are in the final stages of operation. Chilime Hydroelectricity Company has advanced more hydroelectricity projects of about 300 megawatts.

Construction of 42 MW Upper Modi 'A', 18.2 MW Upper Modi, 210 MW Chainpur Seti, 99 MW Tamakoshi V has started.The 1,63 MW upper Arun and 670 MW Dudhkoshi storage hydropower projects have reached the stage of construction after financial management. Pre-construction preparations for both projects are underway.

The 683 MW Sunkoshi-3 reservoir hydropower project has been advanced to be built with the investment of the government bodies of Nepal and Bangladesh.

Likewise, the detailed study process of the Karnali Chisapani multi-purpose reservoir project of 10,800 MW, which can be carried forward as a model project in the South Asian Region, has been started. In order to manage the fluctuations between daily demand and supply, to make the system reliable and quality, the pump storage hydropower projects of about 42,000 MW have been identified in different parts of the country and further study of some of the best projects has been carried forward.

Improvement In Service Delivery

To make the services of the NEA more effective, to automate the system and to ensure reliable and quality electricity supply, digitization of the organization has been given high priority. By effectively implementing the information technology roadmap, every activity of the NEA has been started to be converted into digital technology according to the 'Digital NEA' concept.

International level distribution system control and data center with state-of-the-art facilities has been completed and put into operation. The necessary process to implement smart meter, SCADA, ERP system has been advanced. Good governance within the organization is strictly enforced.

The financial achievements made by the NEA have been possible only with the continuous support and goodwill of the Nepal government and our development partners.

World Bank, Asian Development Bank ADB, Japan International Cooperation Agency JICA, European Union, European Investment Bank EIB, Asian Infrastructure Investment Bank, AIIB), KFW, Norwegian Cooperation Agency, Saudi Fund, OPEC Fund, U. .US Ed., Exim Bank India, Exim Bank Korea, Exim Bank China, etc., have contributed very significantly to the development of Nepal's energy sector. We expect more support in the future.

With every success comes a new challenge, that's why the journey of Nepal Electricity Authority is moving forward by crossing a new milestone in the journey of Bright Nepal. It is also the national duty of a public institution like Nepal Electricity Authority to implement the declared plan of the government as paramount.

The achievements of the Electricity Authority are not only a matter of the progress of the special institute, but also the energy of awakening national confidence.

Nepal Electricity Authority feels proud to provide reliable services to the common people, increase the income of public institutions and implement all its commitments in the resolution of national prosperity.

Challenges Ahead

The coming days are more challenging for the NEA. The first challenge is to institutionalize the benefits received so far, while the second challenge is the market management of the produced electricity. The third challenge is to increase the regularity and quality of electricity supply.

I also express my commitment to solve the challenges and focus every possible effort to supply sufficient, regular, reliable and quality electricity to the citizens of the country in the future and to create a competent and powerful authority with profits.

In the coming years as well, the net profit will be increased by cost reduction, increase in electricity sales, leakage control, increase in internal production, export if the produced electricity is not consumed in the internal market, increase in other income etc.

The NEA will be active to complete the government's action plan with the target of 28,000 MW electricity generations within the year 2035. The government's directives and consumer's interests are paramount for Nepal Electricity Authority.

NEA Is Grateful To Prime Minister and Energy Minister

Prime Minister, Minister of Energy, Water Resources and Irrigation, Honorable Members of Parliament, Heads and Officers of Constitutional Bodies, Senior Officials of the Government of Nepal, Officials and Employees of Government Agencies, Local Level Officials, Donor Agencies, etc. I want to thank all dignitaries who helped.

I am confident that the same guidance, support and facilitation will be received in the future as well.

I would like to express my special thanks to the media houses and journalists who have provided support by communicating accurate information about the regular operations of the authority.

Kulman Ghising

Managing Director

Nepal Electricity Authority

Major achievements in three years

1. Towards financial and administrative reforms

● Net profit approx. In 2078-79, 2079-80 and 2080-81 Rs. 13.34 billion, 9.42 billion and 13.31 billion (unrefined).

● Retained earnings In 2078-79, 2079-80 and 2080-81 respectively Rs. 24.77 billion, 33.64 billion and 47.41 billion (unrefined).

● Income is Rs. In 2078-79, 2079-80 and 2080-81 respectively, Rs. 87.15 billion, 103 billion and 116 billion.

● Movable immovable property etc. 522 billion, 577 billion and 632 billion in 2078-79, 2079-80 and 2080-81 respectively.

● The actual valuation of the NEA's property was done by an international consultant. The NEA's assets are Rs. 632 billion rupees.

● Assets across the country have been searched. Necessary initiatives have been taken to bring back the encroached lands and the lands that have not yet been registered in the name of the authority have been registered and started to be brought under their ownership.

Around 40,200 ropanis of land have been identified by uniting the lands all over the country, while last year alone, around 72 ropanis and 12 annas of land have been acquired within the Kathmandu Valley.

● In the credit rating done by ICRA Nepal, the authority is continuously getting a 'Double A Plus' rating. The capital of the organization has been maintained at Rs. 300 billion and the necessary process to issue 10 percent of its shares to the public has been advanced.

● Based on the concept of "the right person at the right place" to improve the service provided to the customer, the system of performance has been continued as a standard for electricity leakage control, electricity tariff arrears recovery, etc.

● Centralized payment and online payment system has been made effective for budget and expenditure control.

● In the government's fund, capital interest, income tax, royalty etc. In 2078-79, 2079-80 and 2080-81, 15.74 billion, 15.70 billion and 10.70 billion were collected respectively.

1. Delivery and Customer Service

●A.V. Electricity leakage in 2077-78 was 17.38 percent. In 2078-79, 2079-80 and 2080-81 it was reduced to 15.38, 13.46 and 12.73 percent respectively.

● The work started to underground the power distribution system of Kathmandu Valley, Bharatpur and Pokhara metropolitan areas due to the coordination problem with the relevant agencies, although there was some delay, the construction work has been carried forward to complete the work.

● The international level distribution system with state-of-the-art facilities and data center construction has been completed and put into operation.

● Arranged to provide single phase connection to customers in 3 days and 3 phase meter in 1 day except GIS. Arrangements have been made to apply online for three phase connection. Smart meter installed for three phase customers. ●Introduced its own app to provide various information and other services to customers including electricity tariff payment.

● Established and operationalized call centers in every state to address customer complaints regarding electricity supply.

● In order to promote and encourage electric vehicles to increase electricity consumption, the authority itself has constructed and put into operation 62 charging stations. More than 400 charging stations built by the private sector are operating.

●In partnership with local levels, the work of installing smart lights on the streets has been carried forward and the bright city program has been advanced.

● Until 8 years ago, there were 80 distribution substations for electricity distribution, but now they have increased to 197. The substation capacity was only 640 MVA, but now it has reached 2500 MVA. Similarly, in the distribution line, eight years ago there were 1 lakh 21 thousand circuit kilometers, now it has increased to 2 lakh 8 thousand circuit kilometers.

● Online payment has been made more organized and easy to eliminate the situation where the customer has to go to the office to pay the electricity tariff.

1. Construction and Engineering

The total connected capacity of the Authority, its subsidiary companies and private sector power projects has reached 3 thousand 157 megawatts. In the last 3 years only 1706 MW has been added to the system. About 95 percent i.e. 2991 megawatts contribution in connected capacity is from hydropower.

After the performance of the construction contractor of the 37 MW Upper Trishulitri Bijalvidyut project was not satisfactory, the contract was terminated and a new contract process was started.

● 456 MW upper Tamakosi project completed the contract of 20 MW Rolwaling river and construction started.

● 111 MW Rasuwagadhi, 102 MW Madhyabhotekosi, 42.5 MW Sangen under subsidiary company Chilime Hydropower have been completed and are in the final stage of operation. Construction of 14.8 MW Upper Sanjen Project has been completed.

●1063 MW Upper Arun and 670 MW Dudhkoshi Reservoir hydropower projects have reached the stage of construction after financial management. Pre-construction works of both projects are going on.

● Construction of 42 MW Upper Modi 'A', 18.2 MW Upper Modi, 210 MW Chainpur Seti, 99 MW Tamakoshi Panchau has started.

● 683 MW Sunkoshi-3 Reservoir Hydropower Project has been advanced to be built by government agencies of Nepal and Bangladesh and 490 MW Arun Char Authority and India's Sutlej Jalvidyut Nigam in partnership.

A detailed study process of 10,800 MW Karnali (Chisapani) Multi-Purpose Reservoir Project, which can be developed as a model project in the South Asian region, has been started.

● Detailed engineering of the 126 MW Lower Seti (Tanahun) hydropower project has been completed and pre-construction preparations are being carried out.

● The study of pump storage hydropower projects in different parts of the country has been advanced to make the system reliable and quality by managing the fluctuations between daily demand and supply.

1. broadcasting
   1. internal

● 400, 220, 132 and 66 kV transmission line 6 thousand 500 circuit kilometers and substation capacity increased to 13 thousand MVA. Last year only 3000 MVA substation capacity was added.

● Under the Hetaunda-Dhalkebar-Inruwa 400 KV transmission line project, which has not been completed for a long time, the construction of the Dhalkebar-Inruwa section has been completed and 400 KV has been put into operation for the first time for internal power supply. The remaining construction work of Dhalkebar-Hetaunda section has been started by removing the obstruction in the construction of the transmission line at Lalbandi in Sarlahi.

●The construction of new Khimti-Bahrbise-Kathmandu 400 kV transmission line has reached its final stage. The obstacles in the construction of transmission lines and substations in Lapsiphedi of Kathmandu have been solved and the construction work has started.

●Chilime-Trishuli 220 KV transmission line construction has reached the final stage. Construction of Trishuli 3B Hub and Chilime Hub Substation has been completed under the project.

● Construction of Hetaunda and Inaruwa 400 KV substations has been completed.

● Construction of Koshi Corridor transmission line has been completed.

●Many transmission lines of 132 kV have been completed and many are under construction.

● The construction process of the 400 KV transmission line from Butwal to West Attaria and the South Corridor transmission line passing through the major load centers of the country has been secured by securing investment from various donor agencies.

●New Butwal – Lamki – Kohalpur – New Attaria 440 KV, Tinla Hub – Likhu Hub – New Khimti – Sunkoshi Hub – Dhalkebar 400 KV, Budhigandaki Corridor 400 KV, Damauli – Kushma – Burtibang – Bafikot 400 KV, Tumlingtar – Sittalpati 220 KV, Borang-Ratmate Trishuli 3B Hub-Ratmate 220 KV, Dailekh-Kalikotkot-Jumla 132 KV transmission lines are in various stages of study.

● Load dispatch center established and put into operation at Hetaunda.

B. International

● The capacity of Dhalkebar-Muzaffarpur 400 KV transmission line has been increased from 600 to 1000 as decided through various mechanisms related to energy between Nepal and India.

Construction of the new Butwal-Gorakhpur 400 KV second international transmission line, which can transmit about 2,500 megawatts of electricity, has been started for electricity trade with India. ●For electricity import and export between Nepal and India, eight years ago, the transmission line capacity was about 350 megawatts, but now it has reached about 2,000 megawatts.

●Inaruwa-Purnia and Lamki-Bareli 400 KV transmission lines have reached the stage of implementation. Also, the feasibility of building more transmission lines between Nepal and India is being studied.

To facilitate the electricity trade between Nepal, India and Bangladesh, the construction process of 400 kV transmission line from Inaruwa to Anaramani has been advanced.

It has been ensured that the transmission line network capable of exporting 20,000 megawatts of electricity will be expanded by 2035.

The Chilime-Kerung transmission line has also been advanced for electricity trade with the neighboring country China.

●Through the Nepal-India meetings, additional transmission lines have been proposed to connect with India's Uttar Pradesh and Uttarakhand, and study and construction work has also been carried out in this regard. Mainhia-New Nautanuwa (Sampatiya) 132 kV transmission line connecting Nepal and Uttar Pradesh has been constructed and put into operation. Construction of Kohalpur-Nanpara 132 KV transmission line has been started.

This has created a background for Nepal to export electricity to India's Uttar Pradesh during the rainy season in the future.

1. Electricity business
   1. internal

● With 340 private sector projects. In 2072-73, only 2829 megawatts were installed, while 10,300 megawatts were installed during this period. Out of this, 4,000 megawatts of PPP has been completed in 3 years.

During this period, an additional 1500 megawatts of hydroelectric power projects have been opened.

● Bids have been invited for 800 megawatt PPI through competition, with a base rate of Rs. 5.94 per unit for solar energy.

● 700 megawatts of electricity is being exported daily according to the day-ahead and real-time and mid-term contracts of India's competitive market.

●Participating in the competition for the export of 40 megawatts of electricity in Bangladesh and the bid has been accepted, it has reached the stage of buying and selling electricity between the entities of Nepal, India and Bangladesh. Due to the uncomfortable situation that has arisen in Bangladesh, the agreement will be reached as soon as the situation eases

An electricity purchase and sale agreement was signed between Nepal and India's Vihar 132 kV transmission lines through the interstate transmission structure of Bihar. A proposal has been submitted to the Central Electricity Authority of India for approval to start exporting electricity.

Unofficial translation