NEA Transforms Power Sector

With energetic leader like Kul Man Ghising at the helm of affairs, NEA, which has incurred heavy loss and damage in transmission line and substation, make a big progress last year making it one of the best fiscal years in its history in FY2015/16.

Aug. 18, 2017, 12:05 p.m.

As Nepal Electricity Authority (NEA) reaches at 32, the institution gets matured and professional with a big capacity. With energetic leader like Kul Man Ghising at the helm of affairs, NEA, which has incurred heavy loss and damage in transmission line and substation, make a big progress last year making it one of the best fiscal years in its history in FY2015/16.

Not only had the technical capability to fight at the time of crisis, the energy utility posted an impressive 42 percent growth in revenue to Rs 50 billion. According to the annual report it managed to bring down its annual loss to a 10-year low in the review period.

Under the leadership of Ghising, NEA has made progress in many sectors. Many incomplete transmission lines come to operation during his tenure. Two hydropower Chameliya and Kulekhani III, which were under chronic trouble, is now moving.

Though the NEA had planned to bring its new projects -- Kulekhani III (14 MW) and Chameliya (30 MW) in the last fiscal year, it could not happen. Likewise, work of Upper Trishuli 3A (60 MW) remained halted for about two years because of the 2015 earthquakes. Work of the project resume recently, according to the NEA’s annual report

With overall progress in all sectors, the NEA earned revenue of Rs 50 billion in FY2016/17, up from Rs 35 billion in the previous fiscal year thanks to the ending loads heeding. For years, the public utility suffered a heavy loss. However, its net loss plunged to Rs 978 million in FY2016/17, down from a whopping Rs 8.89 billion in 2015/16.

With the power availability, NEA’s total energy sales grew by 28 percent to 4,776 GWh, while its technical loss fell by a record 2.88 percentage points to 22.90 percent.  In FY2015/16, NEA posted revenue growth of only 4.28 percent, while its technical losses had come down by 1.34 percentage points.

Since FY2006/07 when it posted net profit of Rs 240 million, NEA continues to suffer the loss. Along with other, hike in energy tariff by 18 percent from mid-July 2016 is one of the factors that helped the NEA to put impressive revenue growth.

 “The past fiscal year was historic for the NEA in terms of load-shedding management, loss reduction and financial performance,” said Ghising unveiling the Annual report of the NEA at a function organized to celebrate its 32nd anniversary.

Lived decade under the power cut, NEA made Kathmandu and Pokhara load shedding free almost throughout the fiscal year. Power cut to other areas of the country was also reduced significantly.

“We operated projects like Kaligandaki, Marshyangdi and Middle Marshyangdi for peaking operation during dry season to meet the peak demand of the system,” said Ghising.

This is also very happy year for Independent Power Producers as their contribution continues to rise. Energy output by plants developed by IPP increased by 52 percent to 1,777 GWh as 10 new projects started generation in the review year. Likewise, NEA’s energy generation grew by 8.06 percent to 2,305 GWh even though no new project was connected to the national grid.

A total of 10 projects with installed capacity of 116.61 MW, including Upper Marshyangdi ‘A’ Hydropower Project (50 MW) started generation in the review year. Power generation from plants promoted by IPPs had posted negative growth of 7.55 percent to 1173.14 GWh last year.  With these 10 new projects, IPPs now have 60 projects having total installed capacity of 441.05 MW.

Despite managing the load shedding, NEA’s electricity import declined compared to last year. The NEA’s annual report shows that electricity import increased by only 22 percent to 1,777 GWh in FY2016/17 compared to growth of 28 percent in the previous fiscal year.  However, total share of imported energy in total available energy, however, remained the same at 35 percent in FY2016/17 and the previous fiscal year.

Although Nepal Electricity Authority has also incurred heavy loss and damage in transmission line and substation, it is able to maintain almost all damaged transmission line and substations earlier than expected.

 As NEA is celebrating its annual day on August 17, it is a matter of joy and pleasure for them as they are able to restore damaged transmission line and substation earlier than expected.

NEA’s management under the leadership of Ghising has shown that it has capability to maintain at the time of emergency. One of the example how they work depicted by restoring Duhabi substation, a backbone of the eastern region electricity supply, within 24 hours.

 

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