Nepal Distribution System/Rural Electrification Master Plan

CONTEXT

Following a comprehensive international tender procedure including the top worldwide consulting firms of the energy sector, Gesto was awarded a contract with the Nepal Electricity Authority (NEA) for the development of Nepal’s Distribution System and Rural Electrification Master Plan.

The contract was signed on September 20, 2017 in Kathmandu and will be sponsored by the Asian Development Bank through a grant funded by the Government of Norway.

OBJECTIVES

The main objective of the assignment is to support NEA to bring reliable, affordable and sustainable electricity services to all households and businesses in Nepal until 2027. This will be achieved using the most appropriate, efficient and least cost on or off-grid technological solutions to optimize allocation of resources from the country’s perspective, and will provide a detailed roadmap with strong consensus from the different stakeholders and encompassing the necessary regulatory, institutional, technical and financial arrangements.

DESCRIPTION

The Government of Nepal has a policy of providing all district headquarters with grid electricity as soon as practicable and of providing electricity to all the households by 2027. A clear policy on priorities and an execution plan for rural electrification is required. NEA does not have an Electrification Master Plan (master plan) though some sporadic works have been done in the past to prepare ad hoc electrification and distribution projects. This has resulted in unplanned and improper electrification using suboptimal technical solutions, and has contributed to high distribution system loss.

The required master plan will then include policy recommendations, a comprehensive electrification and distribution augmentation program and detailed case studies.

SUMMARY OF SERVICES

• review of existing legislation, regulation and policy relating to distribution system expansion and rural electrification and recommendations for enhancement and streamlining;
• development of planning process and prioritization criteria;
• data collection and preparation of demand forecasts;
• desktop identification and evaluation of areas for grid extension and areas for off-grid electrification;
• execution of sample physical and socio-economic surveys in selected un-electrified areas and preparation of standardized and sample designs;
• economic and financial analysis;
• identification of social and environmental safeguarding requirements;
• design of business models and promotion policy;
• consolidation of the master plan.