Thermal plant idea doesn't click: Experts

PRAGATI SHAHI

KATHMANDU, Dec 18 - The production of an additional 200 MW of electricity from thermal plants, as decided by the government on Wednesday, will not only be a huge financial burden but is also challenging logistically and environmentally. According to Danda Pani Bashyal, spokesman for the Nepal Electricity Authority (NEA), the per unit production of electricity from Nepal's two thermal plants is Rs. 34 against about Rs. 8 for per unit production of electricity from hydro plant. There are currently two thermal plants in operation in Nepal -- the 39 MW plant at Duhabi and the 14.4 MW in Hetauda. The NEA stopped operation of another one because it was facing a loss of Rs. 27 per unit.

One litre of diesel produces 3 to 3.5 units and at present each of the two plants spends Rs 3.5 million per week. . According to Sashi Sagar Rajbhandari, head of NEA's maintenance and repair department, the 39 MW thermal plant in Duhabi, established more than a decade ago, has a capacity of only 12 MW due to lack of maintenance and repairing of the damaged parts. He said, three machine parts each worth Rs 30 million and six spare parts are needed for the thermal plant to work to its full capacity.

"There is a need of minimum Rs 350 million for the thermal plant in Duhabi," said Rajbhandari. Unable to bear the costs of thermal power generation two years ago the NEA auctioned a 1.5 MW diesel plant. Dr Jivendra Jha, director of NEA's civil and planning department, said the government has come up with the decision to set up the thermal plant without any homework. According Uttar Kumar Shrestha, NEA managing director, the government has not consulted the NEA on the matter of installation of thermal plant and its infrastructure development.

If only 200 MW of power is used up to 10 hours a day, two million power units will be generated which will need 700,000 litres of diesel a day. This will need at least 60 trucks to transport the diesel for a day's energy production. "This will definitely not only be a huge loss to the NEA but also to the government," said Jha. "The NEA is not capable to buy the power unit generated by the thermal plant unless the government provides subsidy," says Shrestha.

Sources within the NEA said that it is already losing Rs. 7 billion a year. There is also lack of trained manpower to manage and operate the thermal plant in the country. Transporting diesel will create traffic congestion and add security concerns, said Jha. Shrestha said either the private sector should buy the thermal plant and sell the units to the NEA or government should provide huge subsidy in diesel to operate the thermal plant.

With no significant hydro power plants dues to start operation in the next few years, if the government wants to reduce the energy problem, thermal power is the only option, said Shrestha.

According to Shrestha, 14 MW Kulekhnai III and 15 MW Chamelia are the only major two hydro project to be completed in coming five years. Businesspersons say the government has come up with the plan to set up thermal plants.

Source: The Kathmandu Post, 19 December 2008