EU-Nepal Partnership Launches Global Gateway for Rural Electrification

128

Today, a new Global Gateway energy flagship project was launched in Nepal with the inauguration of a 28 km extension of Chilime-Trishuli 220 kV double circuit electricity transmission line and sub-stations that allow distribution of electricity from hydropower. The flagship project “Efficient Transmission of Electricity from Renewable Energy Sources in Nepal” will support electrification of rural households and provision of clean, affordable and reliable energy to the Nepali population.

European Commissioner for International Partnerships Jutta Urpilainen said: “Marking 50 years of the ever-growing EU-Nepal partnership, this Global Gateway flagship is an excellent example of us setting common goals, providing opportunities for local communities and boosting climate resilience in Nepal. I was privileged to visit Nepal last year and could sense the potential. The successful EU-Nepal Business Forum is another milestone, as we continue to strengthen ties to foster sustainable investments and support Nepal’s graduation from the Least Developed Country category.”

The project “Efficient Transmission of Electricity from Renewable Energy Sources in Nepal” includes:

  • Construction of the 28 km Chilime-Trishuli 220 kV double circuit electricity transmission line, with 78 transmission towers. The Chilime-Trishuli transmission line is linking two locations: Chilime, a small village close to the Chinese border in the north of Kathmandu in Rasuwa district, and Trishuli, a smaller town towards Kathmandu from Chilime in Nuwakot district. With a length of about 28 kilometres, the line is with capacity to evacuate about 650 MW of hydropower projects in the Trishuli river corridor. Currently there is an existing transmission line from Trishuli to Kathmandu. Once the project is completed, this will connect Chilime directly to Kathmandu where the system meets with the National grid allowing all the hydropower projects in the region to get into the mainstream.
  • Two 220/132 kV substations at Chilime and Trishul.
  • Rural electrification component through a neighbourhood support programme. It foresees the electrification of the communities and households located in Nuwakot and Rasuwa districts, in the vicinity of the transmission line and sub-stations that are not being supplied by the national grid or have unreliable grid connection.

The €65 million project is jointly financed in a Team Europe approach by the Government of Nepal, German government through its Development Bank KfW (grant €14 million), European Investment Bank (loan €25 million) and the European Union under its Asia Investment Facility (€2.25 million).

The inauguration followed the EU-Nepal Business Forum held on 15-16 May and took place in Team Europe format. The EU was represented by Deputy Director General for International Partnerships at the European Commission and EU Ambassador to Nepal, together with the Director of EIB Global’s International Partnership Department, the Ambassador of Germany and representatives of Nepal and the German Development Bank KfW.

Background

Global Gateway is the EU’s positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.

The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.

The European Union supports Nepal in its economic transition and green recovery through the priorities for green growth, human capital development and good governance. In particular, the EU is partnering with Nepal to support the implementation of renewable energy and energy efficiency targets of Nepal’s Nationally Determined Contribution.

 

Source: European Union