Pacts with China being drafted for transmission lines, energy trade

KATHMANDU, AUGUST 22

Prime Minister Pushpa Kamal Dahal has hinted at the imminent conclusion of a power trade agreement with Bangladesh.

During the inauguration of the Bharatpur 220-132 kilovolt substation and Hetauda-Bharatpur-Bardghat 220 kV double circuit transmission line, he highlighted the theoretical agreement reached among Nepal, India and Bangladesh to export electricity from Nepal to Bangladesh.

"A preliminary agreement has been signed with India to trade 10,000 megawatts of electricity in 10 years," PM Dahal said. "I am going to visit China, soon. Agreements are being drafted with China regarding transmission lines and electricity trade. This will greatly help the country's economy."

In addressing environmental concerns related to hydropower and transmission line projects, PM Dahal emphasised the need to amend existing laws and create new ones.

He also mentioned that the 1,200 MW Budhigandaki Reservoir Hydropower Conversion Project and the 10,800 MW Karnali Chisapani Project will undergo updated studies.

The Bharatpur substation and transmission line were constructed with investments from the Nepal government, Nepal Electricity Authority, European Investment Bank (EIB), and the World Bank, at the costs of Rs 1.52 billion and Rs 5.94 billion, respectively. These infrastructure developments hold strategic importance for the east-west electricity supply.

Minister for Energy, Water Resources, and Irrigation Shakti Bahadur Basnet emphasized efforts to enhance electricity consumption and supply quality.

"This includes improving the transmission and distribution system and constructing cross-border transmission lines for exporting surplus electricity. Plans are being formulated with short-, medium-, and long-term strategies," Minister Basnet said.

Both Dinesh Kumar Ghimire, secretary of the Ministry of Energy, Water Resources, and Irrigation, and Kulman Ghising, managing director of the Nepal Electricity Authority, expressed optimism about how these infrastructure projects will improve the overall electricity supply in the country.

Additionally, PM Dahal inaugurated a substation based on 'Gas Insulated Substation (GIS)' technology as part of the Masryangdi Corridor 220 kV transmission line project.

A version of this article appears in the print on August 23, 2023, of The Himalayan Times.