Ministry mulls 200MW diesel plant

KATHMANDU, DEC 15 -

With power shortage peaking up, the Ministry of Energy (MoE) is conducting groundwork to set up a 200MW diesel plant to cut down power cuts hours.

Though the government is yet to take a final call, the ministry is making a technical assessment of the plan that could reduce load-shedding hours to 8-9 hours a day. Minister of State for Energy Suryaman Dong said on Wednesday that the ministry is working to import the diesel plant. “Apart from holding talks with India for additional power import, the government is working on the diesel plant plan,” Dong told an interaction here on Wednesday.

As no big hydropower project under construction will be generating power any time soon, MoE officials believe that the only way out is to import a diesel plant for now. Nepal Electricity Authority has already predicted that the power-cut hours will go up to 19 hours a day this winter if measures are not taken immediately.

Energy Secretary Balananda Poudel said it is up to the Cabinet to decide on whether to import the plant as operation of such a plant is expensive. “Consumers will have to pay around Rs 22 per unit as tariff,” Poudel said. Ministry sources say the plant will cost around Rs 12 billion. Poudel said a 200 MW plant as back-up is a must, however expensive that may be.

Joint secretary at the ministry Arjun Karki said the ministry is preparing a technical report on the installation of the diesel plant. He said the MoE will submit the report to the government within a couple of days. “Our move further will depend on the decision of the government,” Karki said. “If the government gives a nod to

import the plant, we are in the position to introduce it in the country at the earliest.”

However, former Energy Minister Gokarna Bista said diesel plants in the country should not be introduced at any cost as it would put an additional burden on the people. “The government has not been able to operate multi-fuel plants that are already there,” Bista told an interaction on Wednesday. “The high operation cost of such plants will add to the burden of the people.” There are currently two diesel plants in operation in the country—the 39 MW plant at Duhabi and the 14.4 MW in Hetauda.

Experts say production of 200 MW of electricity from diesel plants as planned by the MoE will put further financial burden on the NEA that is bearing a loss of Rs 2.39 per unit currently.

However, MoE officials say the ministry is also planning to negotiate with the private sector to bring in the diesel plant with their contribution. “This way, we can bring down power-cut hours in the industrial sector,” an MoE official said.

The idea of diesel plants in the country is not new. The former UCPN (Maoist)-led government had proposed setting up a 200MW thermal plant in 2008.

Source: Kantipur