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NEPAL ENERGY SECTOR ASSESSMENT, STRATEGY, AND ROAD MAP

March 2017

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

2017 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Tel +63 2 632 4444; Fax +63 2 636 2444

www.adb.org

Some rights reserved. Published in 2017.

ISBN 978-92-9257-897-8 (Print), 978-92-9257-898-5 (e-ISBN)

Publication Stock No. TCS178936-2

DOI http://dx.doi.org/10.22617/TCS178936-2

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess

This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

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Notes:

In this publication, $ refers to US dollars.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda

Contents

Tables and Figures

Acknowledgments

Abbreviations

I Sector Assessment: Context and Issues

Introduction

Sector Overview

Institutional Setup

Core Sector Issues, Constraints, and Opportunities

II Strategy

Government Sector Strategy, Policy, and Plans

Development Partners Sector Experience and Assistance Program

III Plans and Supporting Analysis

Appendixes

1 Existing Power Plants and Installed Capacity, Fiscal Year 2016

2 Planned Installed Generation Capacity until Fiscal Year 2022

3 Electricity Tariff Rates

4 Action Plan on National Energy Crisis Prevention and Electricity Development Decade, 2016

5 ADB Lending and Technical Assistance to the Nepal Energy Sector, 19992016

Tables and Figures

Tables
1	Key Data and Economic Profile, 19902015
2	Energy Supply and Consumption Trend, 19902014
3	Electricity Demand and Supply, Fiscal Year 2011Fiscal Year 2016
4	Generation Mix, Fiscal Year 2016
5	Transmission Network
6	Transmission Line Losses
7	Breakdown of Nepal Electricity Authority Consumers, Sales and Revenue, Fiscal Year 2016
8	Energy Intensity Trend in Selected Countries
9	Energy Outlook, 2020 and 2035
10	National Electricity Authority Operational Performance, Fiscal Year 2011Fiscal Year 2015
11	Nepal Rural Renewable Energy Programme Targets
12	Energy Sector Results Framework, 20132017
A1.1	Summary of Installed Capacity, Fiscal Year 2016
A1.2	Grid-Connected Power Plants Owned by Nepal Electricity Authority
A1.3	Isolated Small Hydropower Plants Owned by Nepal Electricity Authority
A1.4	Non-Hydro Power Plants Owned by Nepal Electricity Authority
A1.5	Existing Power Plants Owned by Independent Power Producers
A2.1	Summary of Planned Installed Generation Capacity
A2.2	Power Plants Owned by the Nepal Electricity Authority
A2.3	Power Plants Owned by Independent Power Producers
A3.1	Service and Energy Charges (Single Phase)
A3.2	Service and Energy Charges (Three Phase), Low Voltage (230/400 V)
A3.3	Service and Energy Charges (Three Phase), Medium Voltage (33/11kV)
A3.4	Billing Method (For 5 Amperes)
A3.5	Demand and Energy Charges, Low Voltage (230/400V)
A3.6	Demand and Energy Charges, Medium and High Voltage
A3.7	Time of Day Tariff Rate, Baishakh to Mangsir
A3.8	Time of Day Tariff Rate, Paush to Chaitra
A3.9	Energy Charge, Low and Medium Voltage
A5.1	ADB Loan Projects
A5.2	ADB Technical Assistance Projects
Figures
1	Domestic Energy Production and Import Trend, 19902014
2	Primary Energy Supply Mix, 2014
3	Final Energy Consumption Mix, 2014
4	Electricity Load Forecast, Fiscal Year 2017-Fiscal Year 2034
5	Institutional Setup in the Energy Sector
6	Problem Tree Analysis of the Energy Sector

Acknowledgments

This energy sector assessment, strategy, and road map was prepared by the South Asia Energy Division of the Asian Development Bank (ADB), under the technical supervision of Aiming Zhou (senior energy specialist and team leader). The study team was composed of the following: Hiroki Kobayashi (principal portfolio management specialist), Jiwan Acharya (senior energy specialist), and Hongwei Zhang (finance specialist, energy)all from the divisionas well as Pushkar Manandhar (project officer) from ADBs Nepal Resident Mission. Pil-Bae Song (consultant) provided valuable input. Anthony Jude (former director of the South Asia Energy Division) and Kenichi Yokoyama (former country director, Nepal Resident Mission) guided and supported the study team, and Yongping Zhai (technical advisor, energy) and Priyantha Wijayatunga (former principal energy specialist, now director of South Asia Energy Division), both from ADBs Sector Advisory Service Cluster, reviewed the report and provided technical direction.

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