Nepal’s energy situation is marred with massive power shortages. Besides low production of electricity, the other cause for the shortage of electricity isthe amount of power lost during the transmission and distribution process. The average annual transmission loss in Nepal’s electricity market is about 28 percent of total electricity generation (Nepal Electricity Authority, 2011), whereas the average power loss among 134 countries that are in World Bank’s database is 13.67%.
Reducing transmission loss is very important because the saved power can be sold to consumers and thus can generate extra revenue. It is even crucial in Nepal’s case, since we have not been able to produce enough electricity to meet the demand. Thus, decreasing transmission losses not only generates additional revenue, it can also be an alternative for saving capital cost from building new infrastructures.
View original post 749 more words