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Wheeling charge more than constructing a hydropower plant

  1 min 16 sec to read

April 5: Nepal has been paying Rs 1.8 billion to India annually as wheeling charge just for using the 78-km Dhalkebar-Muzaffarpur transmission line. The amount excludes per unit charge of electricity that Nepal imports from India.

The Dhalkebar-Muzaffarpur transmission line was constructed for both import and export of electricity between Nepal and India. The transmission line was constructed by a joint venture (JV) of Power Transmission Company Nepal (PTCN) and Cross Border Power Transmission Company (CBPT) of India. Nepal signed the Implementation and Transmission Service Agreement (ITSA) with both the companies for 25 years on December 13, 2011.

Nepal has been importing electricity since the inauguration of the transmission line on February 20, 2016. Nepal signed the agreement to ease the power-cuts which the country had been facing at the time, said Prabal Adhikari, spokesperson of Nepal Electricity Authority (NEA)

"Nepal has been bearing the entire cost for utilising the transmission line since it is dependent on India for electricity," said Adhikari.

"We must learn lesson from this experience and adopt other modalities while construction inter-country transmission lines in the future," he added.

The average cost of producing 1MW of electricity is Rs 190 million.

The annual wheeling charge that the country is paying for the transmission line is enough to construct hydropower project of 5.38 MW. With the amount Nepal pays in 25 years for the transmission line, Nepal could have constructed a hydropower project of 142 MW.

 

 

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