For the past eight years, Kul Man Ghising has played a crucial role in transforming Nepal's energy sector as the Managing Director of Nepal Electricity Authority. Under his leadership, NEA has improved its institutional capacity, eliminated load shedding, and turned Nepal into a net electricity exporter, earning a 'Double A Plus' rating.

Overseeing pumping storage projects to completing the 400 kV Transmission line to evacuate power from hydropower projects and expanding distribution systems to increase domestic power consumption and export surplus electricity to India, MD Ghising has faced obstacles in the last six months. Despite facing pressure from Minister of Energy, Water Resources, and Irrigation Deepak Khadka to make questionable decisions, MD Ghising remains dedicated to improving the country's electricity situation. Recent reports suggest that Minister Khadka holds a personal grudge against MD Ghising for not complying with his personal wishes. MD Ghising has devoted more than 60% of his time to conducting on-site visits and inspection tours, which has accelerated the progress of numerous projects and enhanced NEA's reputation with international donors.

Thanks to his efforts, Nepal's energy sector, which suffered significant damage from last September's flood, has been revitalized with the successful restoration of the 456 MW Upper Tamakoshi Hydropower project. Several transmission line projects, including the 400 kV Inaruwa-Hetauda Transmission Line project, are nearing completion under his leadership.

MD Ghising has been proactive in recovering dues from industrialists using dedicated feeder lines, despite facing obstacles from the minister. His efforts have garnered support from the people, but he has been unable to persuade Prime Minister KP Sharma Oli and Minister of Energy, Water Resources, and Irrigation Deepak Khadka.

Since the new government was formed under Oli's leadership six months ago, their primary objective has been to replace MD Ghising with someone of their choosing. Minister Khadka, who has interests in hydropower projects, is advocating for Ghising's removal because he believes Ghising is not working in his favor.

The US Government's decision to temporarily halt support for Nepal under the Millennium Challenge Compact (MCC) has increased uncertainty in the country's energy sector. The delay in the MCC project has raised worries about future investments in Nepal.

Keeping MD Ghising in his current role could benefit the Nepalese government by ensuring ongoing support from development partners, including neighboring India, and the successful completion of various projects. However, the focus on personal interests can overshadow individual accomplishments and efforts.

A source from a bilateral donor in Nepal emphasized that the government has the authority to make decisions, and they have expressed concerns about the potential negative impact of replacing MD Ghising at this crucial time. They highlighted that significant investments and future commitments are tied to NEA's performance, and any disruption in project implementation is undesirable.

Rumors have been circulating since Sunday (February 23) about the possible removal of Kulman Ghising, the Managing Director of Nepal Electricity Authority, despite his ongoing official duties. Energy Minister Deepak Khadka has been pushing for his removal since the formation of the government under UML President KP Sharma Oli with the support of the Congress last June. Despite multiple proposals submitted by the Ministry to the Council of Ministers for his dismissal, a decision has yet to be reached.

During the Council of Ministers meeting on Tuesday (18), a proposal to remove Kulman was presented but was halted due to opposition from Congress ministers. Minister Khadka raised concerns about Kulman's removal, which was supported by Home Minister Ramesh Lekhak from the Congress party.

Despite MD Ghising’s efforts completing the rehabilitation and reconstruction work of the flood-damaged projects, including the 456 MW Upper Tamakoshi, minister Khadka frustration with MD Ghising persists. Rather than recognizing his contributions, Minister Khadka publicly criticized MD Ghising in parliament for not following his directives.

As a senior government official, MD Ghising is limited in his ability to act when faced with Minister Khadka's influential position.

The potential dismissal of MD Ghising may not have a personal impact on him, but it could impact the government's popularity and Nepal's current progress in the power sector, potentially leading it back down a dark path.

The Nepal Electricity Authority has once again received a 'Double A Plus' rating this year from ICRA Nepal Limited (ICRA Nepal), marking the third consecutive time the authority has achieved this rating.

The rating is based on an evaluation of the authority's financial health, assets, business and financial risks, management capabilities, and internal and external factors affecting operational efficiency.

Institutions with a double A plus rating are considered to have a strong ability to meet their financial commitments on time, indicating a low risk of default. Credit ratings provide an assessment of an individual's or organization's creditworthiness and offer an opinion on their ability to repay debts. It serves as a clear and easily understandable measure of the risk associated with an organization's debt repayment capacity.

Ghising, the Managing Director of the authority, highlighted that Redding has maintained a double A plus rating consistently for the past three years, demonstrating the organization's robust financial health and its capacity to repay loans. He also emphasized that the authority is confident in meeting its financial obligations.

Ghising elaborated that the organization's rating, a crucial factor for issuing shares to the public, has been finalized after evaluating the actual assets of the organization.

With government approval, the share issuance process can move forward, and the funds raised from this initiative will be invested in the development of large electricity and hydropower projects.

Furthermore, he outlined plans to complete electricity generation projects aimed at improving the reliability, quality, and safety of electricity supply. These initiatives will involve necessary system enhancements and expansions funded by profits from the organization's substantial capital and proceeds from the share issuance.

The proposal suggests issuing primary shares to the general public while keeping the authority's paid-up capital at around 3 billion rupees and adding a premium of up to 20 percent.

The shares would be priced at Rs 300 each, including the premium. The authority's annual income is 1 trillion 16 billion, and its assets are valued at over 7 trillion rupees.

Established under full government ownership, the authority aims to improve the efficiency, reliability, and accessibility of electricity generation, transmission, and distribution. It is involved in both domestic and cross-border electricity trading.

The government supports the authority through annual budget allocations, share investments, and other necessary funds to advance its electricity development programs. As a strategic government entity, the authority holds a monopoly on electricity transmission, distribution, and trading within and outside the country.

NEA has entered into a long-term power purchase agreement (PPA) for nearly 11,000 megawatts with hydropower projects developed by both domestic and foreign investors. The rating results indicate that there is minimal investment risk, given the authority's strong financial capacity to finance such projects.

To reduce technical and non-technical power losses, increase access to a larger customer base, decrease financial costs, increase revenue, improve institutional governance, and expand transmission and distribution infrastructure, the authority has made significant progress in generating profits.

NEA reported a net profit of 1.55 billion rupees in the fiscal year 2073-74, a positive change from the 8.89 billion rupees net loss in the previous fiscal year 2072-73.

the fiscal year 2080-81, the authority achieved a profit of 14 billion 46 crore rupees. After accumulating a loss of 34 billion 61 million rupees in 2072-73, the authority has now accumulated a total profit of 47 billion 41 million rupees.

The authority successfully reduced electricity losses in the system to around 12.73 percent last year, a significant improvement from the 25.78 percent loss recorded in 2072-73.

NEA To Construct Pump Storage Hydropower Project

The Nepal Electricity Authority is focusing on developing pumped storage hydropower projects to manage fluctuations in electricity demand and ensure energy security for the country.

The project development department has identified 156 pump storage projects nationwide, with 33 projects totaling 42,000 megawatts selected and graded.

Feasibility studies are currently underway for a 332 MW pumped storage project at Syarpu Lake in Rukum (West) after obtaining a survey permit. Additionally, the Dudhkoshi Reservoir Hydropower Project is exploring a 200 MW Pumped Storage Project as well, aiming to produce about 3.36 billion units of energy annually. The estimated cost of the project per megawatt is around USD 587,000 (approximately Rs. 77.5 million).

A feasibility study is also planned for the Hulingtar-Dukim Pump Storage Project, with a capacity of approximately 1596 megawatts, in the Hoogdi and Mowa rivers in Ichchakamana Rural Municipality of Chitwan, Benighat Rorang of Dhading, and Ichchakamana Rural Municipality of Chitwan. These locations have existing access roads, transmission lines, and proximity to the Kathmandu Valley.

The project is designed to operate at full capacity for 6 hours during peak electricity demand. In pump storage projects, water is pumped and stored in reservoirs in the upper part of the river during periods of low electricity demand (off-peak) or when energy prices are low. This stored water is then used to generate electricity during peak demand or high-price periods.

Pump storage projects are essential for power system stability, managing surplus energy, and ensuring energy security during peak demand and consumption.

During the off-peak period, the pumped and stored water can be used to generate electricity during the peak period and consume it internally, and the surplus energy can be sold to India at a high price during the peak period.

NEA’s managing director Ghising, department director Naseebman Pradhan, and other teams inspected the Hulingtar-Dukim pump storage project in Dhading and Chitwan on Saturday and received information about the situation in that area.

Managing Director Ghising stated that the Hulingtar-Dukim project is appealing for construction due to its geographical location, environmental and social conditions, accessibility to necessary infrastructure, proximity to transmission lines for electricity distribution, and its proximity to the electricity load center.

He also mentioned that the project will initially have a capacity of around 510 megawatts, with the potential for gradual expansion to full capacity. Ghising emphasized that obtaining the survey permit will be prioritized to move forward with the construction of the project.

Six substations under construction

Six substations are currently being constructed in Kathmandu Valley by the Nepal Electricity Authority to enhance the electricity supply, ensuring it is sufficient, reliable, high-quality, and safe. These substations, operating at 132 ÷ 11 KV, are strategically located in Kathmandu and Bhaktapur. The Teku substation in Kathmandu is already operational, while the Futung and Mulpani substations are in the final stages of completion. Efforts are underway to bring these substations online within the next two months. The Changunarayan substation in Bhaktapur has been fully constructed and is awaiting activation.

The Chobhar substation is scheduled for construction in June, and the Thimi substation in Bhaktapur is expected to be operational within 8 months. Each substation has a capacity of 90-90 MVA.

Once the substation construction is finished and operational, the infrastructure in Kathmandu Valley will be capable of supplying approximately 500 megawatts of electricity, matching the current demand of around 500 MW. To prepare for potential future increases in electricity demand, the Authority has set a target of 2050 and is progressing with the construction of transmission and distribution infrastructure in key areas of Kathmandu Valley in stages. By 2050, the expected peak electricity demand in Kathmandu Valley is estimated to reach 3,100 megawatts.

To meet this demand, the authority is expediting the construction of 20 new substations at 220, 132, 33, and 11 kV levels. Additionally, a 132 kV underground line will be installed from the Chobhar substation to the Lagankhel substation in Lalitpur via the roundabout. The Lagankhel substation is being upgraded to 132 kV, and future plans include extending the underground line from there to Chapagaon and Harsiddhi.

The improvement of the transmission and distribution system has been enhanced through investments from the Nepal government, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), and concessional loans from the World Bank. Nepal Electricity Authority (NEA) has reported a profit of Rs. 11.36 billion in the last six months. According to information disclosed under the Right to Information Act, the authority generated a total revenue of Rs. 70.44 billion from electricity sales, interest, and other sources during this period. Expenditures totaling Rs. 59.8 billion were incurred on electricity purchases, administration, and various projects. Therefore, the projected unadjusted profit of the authority from July to December of the current year is Rs. 11.36 billion.

In the fiscal year 2072-73, the authority incurred an annual loss of 8.89 billion rupees but has been consistently profitable in the subsequent years. In the most recent fiscal year 2080-81, the authority recorded a profit of 14.046 billion rupees.

The profits earned are being utilized for infrastructure expansion, strengthening, and electrification projects by the Authority.

In the current year, the NEA has generated revenue of Rs 53.18 billion from the sale of electricity in the first 6 months.

During this period, a total of 6.31 billion units of electricity were purchased from the authority's subsidiary and related companies for 1.15 billion rupees and 5.16 billion units from other private production companies.

An amount of 34.84 billion rupees was paid for the purchased electricity, with an additional 1.065 billion rupees spent on importing 242 million units of electricity from India.

From July to December of the previous year, 1.777 billion units of electricity were exported to India, generating an income of 13.9 billion rupees.

During this period, the authority has spent 13.35 billion rupees on various projects and electrification using the development budget received from the government and foreign aid. Additionally, 10.49 billion rupees have been directly allocated to Bhutan as foreign aid.

The construction of the 400 kV Lapsiphedi substation is currently in progress in Shankharapur Municipality-3 Bozhini, situated in the eastern part of Kathmandu. The substation is being built based on gas insulated substation (GIS) technology with voltage levels of 400 kV, 220 kV, 132 kV, and 11 kV. This infrastructure aims to provide electricity to Kathmandu valley and support local hydroelectric projects on the Tamakoshi and Sunkoshi rivers and their tributaries.

The construction of the Lapsiphedi substation is scheduled to be completed by December 2025.

Despite local challenges, the construction of the substation, which began approximately a year ago, is currently in its final phase. The Lapsiphedi substation, being built on around 172 ropani of land, is set to become the primary power supply hub for the Kathmandu valley. Some residents have raised concerns about the location of the substation, advocating for it to be situated away from residential areas. However, following proper procedures, including land acquisition and environmental assessments, the site in Bozini was chosen as the most suitable location for the substation. The construction of the substation is a response to the legitimate requests of the local community.

Despite the significant progress made by NEA in adding new projects and completing existing ones, MD Ghising, who spearheaded these successes, received a zero rating in the evaluation conducted by Minister Khadka. This highlights the impact of Minister Khadka's personal vendetta on the assessment of MD Ghising.