NTGC projects Rs 910 billion investment to support 28,500 MW electricity by 2040

KATHMANDU: The National Transmission Grid Company (NTGC) has estimated a total investment of Rs 910 billion by 2040 to build and support Nepal’s electricity transmission system, with a target of producing 28,500 MW of electricity by then.

In a master plan prepared by the NTGC, the state-owned company revised the cost estimation for developing the electricity transmission lines. The draft of the master plan was handed over to Energy Minister Deepak Khadka on Wednesday.

Netra Prasad Gyawali, CEO of NTGC, stated that the plan was based on the government’s ambitious goal to generate 28,500 MW of electricity by 2035. “We will finalize the draft based on stakeholder inputs,” Gyawali said.

The NTGC had initially prepared a master plan in 2018, targeting up to 2035. In the revised plan, Rs 720 billion investment is required by 2035, with an additional Rs 190 billion over the next five years to meet the 2040 goal.

The master plan also addresses Nepal’s significant electricity wastage, which has become critical during peak production seasons due to inadequate transmission lines. Over the past two years, 20 projects, totaling 339 MW of power, have faced electricity wastage problems. Without proper infrastructure development, this issue is expected to worsen as the country ramps up electricity production.

The plan also focuses on the timely provision of transmission lines for private power producers and the sustainable management of land and forest areas in transmission line alignments. NTGC proposes a balanced transmission system that eliminates investment duplication and infrastructure inadequacies. It also recommends establishing a legal framework to promote private sector involvement and public-private partnership (PPP) models to secure necessary investments.

Nepal Electricity Authority records show the total transmission line length has more than doubled in the last eight years, reaching 6,507 circuit kilometers. The development of 400 kV transmission lines is crucial for maximizing electricity exports, as these lines can carry over 1,200 MW of power, compared to 300-400 MW on 220 kV lines.

The NTGC’s plan is vital for addressing current transmission constraints and unlocking Nepal’s full potential as a major electricity producer and exporter in South Asia.