May 9, 2025
Commissioned for the Project for Promoting Import and Export of Electricity and Improving Power System Stabilization in Nepal
Oriental Consultants Global Co., Ltd. (OC Global, Headquarters: Shinjuku-ku, Tokyo) and the Chugoku Electric Power Co., Inc. (Head Office: Hiroshima City, Hiroshima Prefecturea) have been jointly commissioned by the Japan International Cooperation Agency (JICA) to implement “the Project for Promoting Import and Export of Electricity and Improving Power System Stabilization in Nepal.” The contract was signed on May 8, 2025. OC Global has a track record in Nepal, including disaster prevention projects. For Chugoku Electric Power, this project represents its first engagement in the country.
The project will span three years and involves providing consulting services aimed at enhancing the Nepal Electricity Authority’s (NEA) capacity in areas such as forecasting electricity demand and adjusting supply capacity. Through these efforts, the project will contribute to the stable supply of electricity within Nepal, while also promoting and optimizing cross-border electricity trade.
In Nepal, challenges remain in the accuracy of electricity demand forecasting and supply capacity adjustment, creating a need for improvements to ensure a stable power supply. Furthermore, in cross-border electricity trade with neighboring India, there is a persistent discrepancy between planned and actual power exchange volumes. This discrepancy has resulted in recurring penalty payments to India, posing an additional issue to be addressed.
On the other hand, Nepal is endowed with abundant water resources, and further development of hydropower plants is expected. In light of this, it is becoming increasingly important for the country to consider strategic electricity trade with neighboring countries.
By addressing these challenges and enhancing capacity in forecasting electricity demand and adjusting supply capacity, the project is also expected to promote the export of hydropower-generated electricity to neighboring countries, thereby contributing to decarbonization efforts across the South Asia region.
Both companies will leverage their respective expertise and technological strengths to implement this project, contributing to Nepal’s development and the realization of decarbonization in South Asia.