Nepal energy infrastructure and grid development

Nepal is advancing its energy infrastructure through both international funding and domestic policy reforms. An 18-kilometre, 400 kV transmission line linking the New Butwal substation to the Indian border was completed in approximately nine months. This project, funded by the US-based Millennium Challenge Corporation (MCC), cost US$12.8 million and is intended to strengthen the national grid and facilitate cross-border power connectivity.

Following this development, the Ministry of Energy, Water Resources and Irrigation has moved to expedite 12 national transmission line projects by coordinating with forestry and road departments to resolve construction obstacles. Additionally, the Electricity Regulatory Commission has opened the national transmission grid to the private sector by establishing specific wheeling charges for electricity trading, allowing third-party entities to utilize the Nepal Electricity Authority’s lines.

Recent progress includes the completion of the Matatirtha–Chobhar section of the 132 kV Thankot–Chapagaun–Bhaktapur Transmission Line Project. This six-kilometre line is scheduled to be energized to help balance electricity demand and supply in the Kathmandu Valley, specifically for the upcoming winter season. Furthermore, the Hetauda-Dhalkebar 400 kV transmission line, which has been stalled for 12 years, is nearing completion. With 14 of the 16 required towers finished, the final two multi-circuit towers are expected within 10 to 15 days. Once operational, this line is intended to serve as a backbone for the national power system to improve reliability and increase electricity exports.