Grid based Rural Electrification

Grid based rural electrification

A grid is an interconnection of multiple power generating units, transmission lines and loads such that electric power flows efficiently from the power sources to the load. Along with the power sources and loads, a grid also contains various protection devices and transformers which change the voltage levels for economical reasons.

An example of rural electrification through a grid is shown in the figure below.

Utility operated grid based rural electrification

The two major grid based utilities contributing to rural electrification in Nepal are NEA (Nepal Electricity Authority) and BPC (Butwal Power Company). NEA is owned by the government of Nepal while BPC is a public limited company.

Voltage levels

NEA has adopted 11/0.4 KV primarily as its voltage level while BPC has adopted a voltage level of 33/0.4 KV in the majority of its distribution systems.

Investment modality

The funding of NEA is carried out by GoN along with public support which may include support from DDC (District Development Committee), VDC (Village Development Committee), communities, etc.

The funding in BPC is carried out by the company itself. The company also receives financial support from donor agencies. Along with that, the company also receives additional support from public.

Construction modality

The contracting in NEA during construction is done either full or partially i.e. labor contract only and the materials are supplied from NEA.

In the case of BPC, the contracting is done for labor only while the necessary materials are provided by the company. Labor contribution is done by the community while skilled manpower and materials are provided by the company.

Operation and consumer services

The maintenance, repair works, meter reading, billing and revenue collection are carried out by both NEA and BPC. In addition to that, the utility also provides no light service to its consumers.

The tariff structure of NEA can be found in the annual report which is available on the company's website or the readers can also find the tariff structure in this link http://www.nepalenergyforum.com/nea-electricity-tariff-rates/.

Community operated grid based rural electrification

In community-based electrification system, the community establishes a distribution institution which purchases electric power from the utilities. A reasonable price of electricity is set and the institution supplies electricity to the community members. The collected revenue is then submitted to the utilities.

Consumers requiring the power of 50 KVA and above are regarded as the consumers of NEA and they have to submit an application to the utility. The application should contain:

1. A copy of the registration certificate of the distribution institution
2. Information regarding the distribution area
3. Constitution of the institution
4. Executive committee member list
5. Human, technical and financial resources, etc

The updated records of the names of new customers, address, contact information, etc. should be provided to the distribution institutions. The records of the customers who have not paid their bills should also be provided along with technical particulars of the lines.

Registration of the distribution institution

The legal registration of the distribution institution in case of BPC is not mandatory but in case if NEA, the registration is done as per any of the following laws.

1. Company act, 2053
2. Cooperatives Act, 2048
3. Association registration Act, 2034
4. Social Welfare Act, 2049

Voltage levels

NEA has adopted 11/0.4 KV primarily as its voltage level while BPC has adopted a voltage level of 33/0.4 KV in majority of its distribution systems.

Investment modality

In the case of NEA, 80% of the investment is done by government and 20% of the investment is done by the community.

In the case of BPC, the investment is done by the company itself with the help from donor agencies along with public support.

Construction modality

The contracting in NEA during construction is done either full or partially i.e. labor contract only and the materials are supplied from NEA.

In the case of BPC, the contracting is done for labor only while the necessary materials are provided by the company. Labor contribution is done by the community while skilled manpower and materials are provided by the company.

Operation and management

NEA

In NEA community, the distributing institution provides services to new customers and in turn makes payment to NEA for the power purchased. Regular and emergency repairs, as well as the extension of distribution of transmission lines, are also carried out. The functions are carried out based on electricity laws (2041 and 2049), electricity regulations2050 and other legal frameworks.

The distribution institution is required to establish a separate fund for repair and maintenance purpose. At least 10 percent of the monthly income must be allocated for repair and maintenance.

It is the function of NEA to upgrade the capacity of the transformer. The distribution institution has to make an appeal to the authority if the existing transformer cannot meet the demand of increased number of customers. After a proper investigation is carried out, the authority (NEA) upgrades the capacity of the transformer. In case, a transformer gets damaged due to overload due to inadequate capacity or due to improper repair, the distribution institution is held responsible and must bear the costs of repair. The authority provides new transformers or other electrical equipment are the existing ones are damaged by natural calamities.

NEA provides necessary training free of cost for one year from the date of the agreement in case an appeal is made by the community. The training period can be extended beyond one year with reasonable charges.

A separate fund commonly known as Community Rural Electrification Fund is established for the purpose of electrification, line extension, and system improvement. Any subsidiary or grant obtained by the community is deposited in such fund.

BPC

The case with distribution institution of BPC is also similar. The community also aids BPC in repair and maintenance work. The functions are carried out pertaining to the acts made in agreement with the company.

It is the responsibility of BPC to upgrade the capacity of the transformer. After a proper investigation, the utility upgrades the transformer capacity to meet the increased demand.

Tariff

NEA

The tariff for the community members is set in accordance with the agreement made by the distributing institution with NEA. The geographical location, investment participation, and technical aspects are also kept in consideration while fixing the tariff rates. The revenues are deposited in the bank account designated by the authority or the nearest office of NEA.

BPC

The tariff applicable to the direct customers of the utility is also applicable to the community consumers. 10% of the collected revenue is refunded to the community.

References

This article was prepared on the basis of class notes and the handouts provided by my lecturer Mr. Gopal Joshi Subedi. The image was taken from his handout and the tariff structure of the utilities can be found on their website.