Group 5
Group 5
DEPARTMENT OF CIVILENGINEERING
PRESENTATION ON
NEA & DoED
PRESENTED BY: PRESENTED TO:
GROUP 5 ASST. PROF. SANTOSH CHAUDHARY
SUYOG GAUTAM DEPARTMENT OF CIVIL ENGINEERING
AYUSH MALLA
PRABIN SHAH
RHEA DEVI THAPA 20th DECEMBER 2024 1
VIJAY RAJ WAIBA
Overview
• Hydropower Development Institutions in Nepal
• NEA- Nepal Electricity Authority
• Objectives of NEA
• How do NEA functions?
• Recent NEA Achievements & Progress
• Transmission & Distribution
• Power Trade Agreement
• PROJECTS OF NEA (Transmission and Distribution)
• Challenges
• DOED- Department of Electricity Development , Functions , Missions, Challenges,
Achievements
• Recent Project Under DoED
• References
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Hydropower Development Institutions in Nepal
Private Sectors
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Nepal Electricity Authority (NEA)
Nepal Electricity Authority (NEA) was created on August 16, 1985 (Bhadra 1, 2042) under the
Nepal Electricity Authority Act. 1984.
NEA was created through the merger of the Department of Electricity of the Ministry of Water
Resources, the Nepal Electricity Corporation, and related Development Board
This merger was necessary to address the weaknesses associated with fragmented electricity
organizations, which included overlapping and duplication of work. The goal was to achieve
efficiency and provide a reliable service
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Objectives of NEA
✔ The principal objectives of the Nepal Electricity Authority (NEA) include the generation,
transmission, and distribution of adequate, reliable, and affordable electric power.
✔ These objectives are achieved by planning, constructing, and operating the necessary
facilities within Nepal's power system, both interconnected and isolated.
✔ NEA aims to ensure a smooth flow of electricity from generating stations to load centers.
✔ In addition, NEA is committed to meeting its main objective of satisfying its consumers
with reliable, quality, and affordable electricity while also maintaining sound financial
health for further development.
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Responsibilities of NEA
In addition to achieving above primary objective, NEA's major responsibilities are:
✔ To recommend to Government of Nepal, long and short- term plans and policies in the
power sector.
✔ To recommend, determine and realize tariff structure for electricity consumption with
prior approval of Government of Nepal.
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Board of Directors
Honorable Minister, Ministry of Energy, Water Resource and Irrigation: Mr. Dipak Khadka
Secretary, Ministry of Energy, , Water Resource and Irrigation: Mr. Suresh Acharya
Secretary, Ministry of Finance GoN: Mr. Dinesh Kumar Ghimire
One prominent person from commerce, industry, or financial sector: Mr. Bharat Raj
Acharya
One person from consumers group: Dr Bal Bahadur Parajuli
Two prominent persons with experience in power sector from outside government: Mr.
Ratan Bahadur Ayer, Mr. Laxman KC
Managing Director, NEA: Mr. Kul Man Ghising
The Managing Director acts as member secretary as well as chief executive officer.
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Organizational Structure
1. Generation on Directorate
2. Transmission Directorate
3. Distribution and Consumer Services Directorate
4. Planning, Monitoring and Information Technology Directorate
5. Engineering Services Directorate
6. Project Management Directorate
7. Business Development Directorate
8. Administration Directorate
9. Finance Directorate
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Generation directorate
The Generation Directorate of the Nepal Electricity Authority (NEA) is responsible for
the efficient operation and maintenance of hydropower stations owned by NEA.
It manages twenty hydropower stations and two thermal power plants with a total installed
capacity of 627 MW.
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Generation directorate
The Generation Directorate is led by a Deputy Managing Director and is structured into
three departments:
1. Large Generation Operation and Maintenance Department: oversees power plants
with an installed capacity of 30 MW and above, including seven hydropower plants
totaling 465 MW.
2. Medium Generation Operation and Maintenance Department: responsible for
power plants with an installed capacity of less than 30 MW, which includes one
pumped storage, twelve run-of-river (ROR), one diesel power plant, and one multi-fuel
power plant.
3. Generation Development and Support Department: responsible for the development
and construction of new power projects and provides support for operational and
maintenance issues.
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Generation directorate
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Transmission Directorate
The Transmission Directorate of the Nepal Electricity Authority (NEA) is responsible for
planning, constructing, upgrading, operating, and maintaining high-voltage transmission
lines and substations, ranging from 66 kV to 400 kV, across Nepal.
Its main objective is to ensure a reliable and quality power supply to consumers by
efficiently transmitting electricity from generating stations to load centers.
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Transmission Directorate
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Transmission Directorate
3. Power System Operation Department (PSOD), also known as the Load Dispatch Centre
(LDC)
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Transmission Directorate
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Distribution and Consumer Services Directorate
Distribution and Consumer Services Directorate (DCSD), the largest directorate of NEA,
is striving to provide safe, reliable and quality electricity at affordable price to all its
consumers.
Responsible for the planning, expansion, operation, maintenance, and rehabilitation of
distribution networks, including substations up to 33 kV voltage level, and for consumer
services activities.
This includes new consumer connections, meter reading, billing, revenue collection, and
handling consumer grievances.
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Distribution and Consumer Services Directorate
The DCSD operates through seven provincial offices, each with a varying number of
consumers and operational specifics. For example:
Koshi Provincial Office: Serves 1,044,191 consumers, with 89.41% in the domestic
category.
Madhesh Provincial Office: Serves 1,148,674 consumers, with 86.81% domestic.
Bagmati Provincial Office: Serves 898,202 consumers, with 95.47% domestic.
Gandaki Provincial Office: Serves 498,132 consumers, with 95.19% domestic.
Lumbini Provincial Office: Serves 551,836 consumers, with 94.03% domestic.
Karnali Provincial Office: Serves 162,385 consumers, with 96.09% domestic.
Sudurpaschim Provincial Office: Serves 372,512 consumers, with 92.74% domestic
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Distribution and Consumer Services Directorate
The DCSD also operates through two divisional offices, each with a varying number of
consumers and operational specifics. For example:
Bagmati Province Division Office, Hetauda: Serves 339,795 consumers, with 90.39%
domestic.
Lumbini Province Division Office, Nepalgunj: Serves 443,548 consumers, with 91.90%
domestic.
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Planning, Monitoring, and Information Technology
Directorate
Planning, Monitoring, and Information Technology Directorate (PMITD) acts as a
corporate wing of the Nepal Electricity Authority (NEA).
It is responsible for directing and monitoring the functions of three departments:
1. Power System Management Department,
2. Information Technology Department, and
3. Corporate Planning and Monitoring Department.
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Planning, Monitoring, and Information Technology
Directorate
1. Power System Management Department (PSMD)
Responsible for load forecasting and generation and transmission line planning, balancing
the need for reliability, efficiency, sustainability, and regulatory compliance of the
Integrated Power System (INPS) of Nepal
Identifies constraints in the grid that could pose operational risks and reduce efficiency
due to outages
Develops transmission configurations for evacuating power from planned generation
projects through technical studies such as load flow, short circuit, and steady-state and
transient stability analysis
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Planning, Monitoring, and Information Technology
Directorate
2. Information Technology Department (ITD)
Responsible for enabling digital transformation and enhancing operational efficiencies
within NEA
Focuses on leveraging Information Technology (IT) and Operational Technology (OT) to
reduce redundancies and errors and improve workflows
Customer Interaction: NEA Mobile App and Customer Relationship Management (CRM)
system to enhance customer interaction, allowing customers to view bill payments and
access other information
Data Management
Cybersecurity Measures
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Planning, Monitoring, and Information Technology
Directorate
3. Corporate Planning and Monitoring Department (CPMD)
Assists NEA management in devising corporate development plans, preparing annual
budgets, and monitoring NEA’s development and operational activities
Monitors the status of ongoing and planned projects and activities and reports to
management on a monthly, trimester-wise, and annual basis
Provides necessary indicators to the Office of the Prime Minister and the Council of
Ministers (OPMCM), including updates on installed capacity, per capita consumption of
electricity, loss, electrification ratio, MVA capacity of substations, and transmission line
lengths
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Engineering Services Directorate (ESD)
ESD is responsible for conducting engineering studies for the development of hydropower
and transmission line projects, from the initial identification to the feasibility study,
including geological and geotechnical studies, detailed engineering design, and
environmental impact assessments.
The directorate also provides consulting and advisory services in the hydropower and
transmission line sectors, as well as other infrastructure projects of NEA
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Engineering Services Directorate (ESD)
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Project Management Directorate (PMD)
The goals of these projects include enhancing the capacity of transmission and
distribution systems, automating these systems, digitizing operations, and strengthening
NEA's institutional capabilities.
PMD also conducts detailed engineering, environmental, and social studies for various
transmission lines up to 400 kV with a combined length of more than 1000 km and
associated substations, with financial assistance from ADB.
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Project Management Directorate (PMD)
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Business Development Directorate
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Business Development Directorate
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Administration Directorate
This directorate also coordinates the activities of different directorates and acts as a focal
point for government and other oversight agencies in relation to the administrative
activities of NEA.
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Administration Directorate
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Administration Directorate
2. Recruitment Department:
Responsible for recommending qualified candidates for key organizational roles,
including external hires and internal transfers.
Also manages the promotion of deserving employees through a structured and
merit-based system.
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Administration Directorate
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Administration Directorate
4. Legal Department:
Involved in arbitration, legal drafting, bid evaluation, investigation, case studies, and
negotiations.
It registered 348 cases in different courts, with 175 cases finalized, of which 133 were in
favor of NEA and 42 against NEA.
In FY 2023/24, the department provided 192 legal advices to different NEA offices.
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Finance Directorate
The Finance Directorate is led by a Deputy Managing Director (DMD) and is responsible
for all of NEA's financial operation.
Its core responsibilities include managing revenue streams, monitoring and supervising
books of accounts, planning and controlling budgets and expenditures, handling the
organization's overall finances, and ensuring regulatory compliance.
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Finance Directorate
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Performances and achievements of NEA
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Operational Performance
The number of consumers has been increasing gradually over the years and, in the FY
2023/24, it has reached 5.46 million, an increase by 6.33 % against 5.14 million in the
previous year.
NEA’s hydropower plants generated 2,911 GWh of electricity in the year
The energy purchased from Independent Power Producers (IPPs) and NEA’s subsidiaries
was 6,564 GWh and 2,597 GWh
The total energy imported from India was 1,895 GWh in FY 2023/24
The total domestic consumption in FY 2023/24 was 10,243 GWh
The total export to India soared to 1,946 GWh in FY 2023/24 against the previous year’s
figure of 1,346 GWh only, an increase of 44.57%
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Financial Performance
Net Profit Before Tax (2023/24): NRs 13,307 million, a 10.19% increase from NRs
12,077 million in 2022/23.
Gross Revenue from Energy Sales (2023/24): NRs 115,798 million (includes NRs 17,066
million from power exports), up 15.40% from NRs 100,346 million in 2022/23.
Revenue from Other Sources (2023/24): NRs 10,911 million, increased from NRs 10,321
million in 2022/23.
Operating Expenses (2023/24): NRs 88,529 million, a 9.92% rise from NRs 80,538
million in 2022/23.
Power Purchase Costs: NRs 69,054 million, up 11.64% from NRs 61,855 million in
2022/23.
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Financial Performance
Interest Expenses (2023/24): NRs 6,130 million, a 7.17% increase from NRs 5,720
million in 2022/23.
Other Operating Expenses: Generation: NRs 2,210 million; Transmission: NRs 2,376
million; Distribution: NRs 12,268 million; Royalty: NRs 1,636 million.
Depreciation and Amortization (2023/24): NRs 8,871 million, up from NRs 8,148 million
in 2022/23.
Foreign Exchange Loss (2023/24): NRs 1,528 million, slightly reduced from NRs 1,542
million in 2022/23.
Capital Works in Progress (CWIP) Investment: Reached NRs 221,631 million with an
addition of NRs 45,207 million in 2023/24.
Retirement Fund Balance (2023/24): NRs 6,824 million, with NRs 1,045 million provided
as loans to contributors.
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Ongoing Projects
42,000 MW of Pumped Storage Projects have been identified throughout the country
NEA has signed MOU with Sutlej Jalvidyut Nigam (SJVN), India, for the formation of a
Joint Venture Company to develop Arun 4 HEP with an indicative capacity of 490.2 MW
Nepal’s first three major grid substations of 400kV voltage level at Hetauda, Dhalkebar
and Inaruwa has been completed
Dhalkebar 400kV substation is connected to Muzaff arpur (India) substation via
Dhalkebar- Muzaff arpur 400kV cross border transmission line.
NEA commissioned 9 new 33/11 kV distribution substations of total capacity 91 MVA in
FY 2023/24.
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Subsidiary Companies
NEA has invested an additional NRs 56 Billion in its subsidiary and associate companies
The successful implementation of Chilime Hydropower Project under a subsidiary
company of NEA encouraged the development of more projects under the company mode
to ensure early decision making, public participation and mobilizing domestic fund. The
major projects operating under the Company mode are as follows;
1) Chilime Hydropower Company Limited (CHCL)
2) Upper Tamakoshi Hydropower Limited (UTKHPL)
3) Tanahu Hydropower Limited (THL)
4) Trishuli Jal Vidhyut Company Limited (TJVCL)
5) Raghuganga Hydropower Limited (RGHPL)
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Subsidiary Companies (contd.)
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Private Sector Participation
A total of 23 new projects developed by the Independent Power Producers (IPPs) with a
combined installed capacity of 463.255 MW were commissioned in FY 2023/24.
This has increased the total number of IPP owned projects in operation to 182 with a
combined installed capacity of 2,496 MW, with NEA’s subsidiary company projects
contributing 492.9 MW.
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Cross Border Power Trading
Total imports were 1,895 GWh, while exports reached 1,946 GWh, translating to NPR
16.93 billion in imports and NPR 17.06 billion in exports
NEA also entered into two medium-term agreements: supplying 200 MW to Haryana
Discom and exporting up to 200 MW to Bihar State Power Holding Co. Ltd. via the
Nepal- Bihar 132 kV transmission infrastructure.
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Conclusion
A total generation capacity in the last FY reached 3,157 MW with the commissioning of
new projects equivalent to the capacity of 473 MW.
Indian authorities have permitted the sale of around 700 MW of electricity through Indian
Energy Exchange Limited (IEX) and bilateral contracts.
Despite decreasing the tariff by around 25 %, NEA has been able to make profit
continuously for the last eight years.
Profit earned is due to operational and managerial efficiency, reduction in system loss and
increase in export of surplus energy. NEA’s total asset increased from NRs 211 Billion to
632 Billion in the last eight years.
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DoED- Department of Electricity Development
• Electricity Development Center (EDC) was
established on July 16, 1993 (2050 Shrawan 1)
under the then Ministry of Water Resources
(MOWR) to develop and promote electricity sector
and to improve financial effectiveness of this
sector at the national level by attracting private
sector investment.
• It was later renamed as Department of Electricity
Development (DoED) on February 7, 2000 (2056
Magh 24).
• Responsible for assisting the Ministry in
implementation of overall government policies
related to power/electricity sector.
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Objectives of the DoED
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Functions
• Preparation of standards for transmission and distribution of electricity and inspection and
monitoring for its compliance.
• Advisory assistance to Ministry of Energy.
• Acts as secretariat of Tariff Fixation Commission.
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Renewable Energy Initiatives
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Challenges
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Achievements
•Hydropower Development:
✔ Several hydropower projects, both large and small-scale, have been developed to
contribute to the country's power supply.
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Contd…
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Contd…
✔ Nepal, India, and Bangladesh signed a trilateral agreement in October 2024, enabling
Nepal to export electricity to Bangladesh via Indian transmission lines
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Recent Projects under DoED
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1. Sapta Koshi High Dam Multipurpose Project
• Ambitious multi-billion dollar project will provide irrigation, control floods and
generate 3,000 MW of electricity. The Saptakoshi River has seven tributaries and is
one of the biggest rivers in Nepal.
• Joint Project Office- Saptakoshi Sunkoshi Investigation (JPO-SKSKI) was
established on 17th August 2004 at Biratnagar, Nepal.
• Joint technical team representing Nepal and India has started a feasibility study for
the construction of a high dam on the Saptakoshi River which will provide year-round
irrigation facility to a dozen districts from Jhapa to Parsa.
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2. Pancheshwar Multipurpose Project
• Bi-national hydropower project to be developed in Mahakali River bordering Nepal
and India
• Mutual interest project between two countries, and is covered under integrated
Mahakali Treaty signed between Nepal and India according to which, equal sizes of
underground power house i.e. of 3240MV will be constructed on each side of
Mahakali river in India and Nepal
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3. Budhiganga Hydropower Project
• Aims at contributing to the social and economic development of Nepal through
increasing electricity generation capacity of the country
• Project is a peaking run-of-river type that lies within the Achham and Bajura districts
on the Budhi Ganga River
• Install capacity of 20 MW
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4. Naumure Multipurpose Project
• There are three hydro schemes under the Naumure Multi-purpose Project, namely
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References
• http://www.doed.gov.np/
• https://www.nea.org.np/admin/assets/uploads/supportive_docs/72250302.pdf
• https://www.nea.org.np/
• https://www.nea.org.np/admin/assets/uploads/annual_publications/Transmission_2080.pdf
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THANK YOU
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