Nepal will be upgrading its power transmission and distribution system, with the help of a $156 million concessional loan from the Asian Development Bank (ADB). With most of the country already having access to grid-supplied electricity, the Electricity Grid Modernization Project will increase the capacity and reach of power distribution networks to meet current and future demands, improve reliability and quality of supply, and reduce losses.

The project will automate grid substations throughout the country, modernize distribution and transmission systems in various areas, complete the installation of smart meters in the Kathmandu Valley, and support sector reform and institutional strengthening of the Nepal Electricity Authority (NEA). It will finance construction of a total of 113 kilometers (km) of new transmission lines and installation of 220-kilovolt (kV) and 132-kV automated grid substations. The project will construct a new electricity distribution system command and control center in Kathmandu.

The project will also automate 34 existing grid substations, upgrade 144 km of existing transmission lines with efficient conductors, and expand the installation of smart meters for 350,000 electricity consumers in the Kathmandu Valley.

Under the project, the NEA’s staff will be trained to manage the automated grid substations. Awareness-raising on the safe and efficient use of electricity will also be conducted, especially for women and disadvantaged groups. Mr. Jiwan Acharya, ADB Principal Energy Specialist, said that the project will position Nepal "to be better prepared in its post-pandemic economic rebuilding."

Related Link:

• ADB Approves Loan to Upgrade Power Grids in Nepal