Industrial power supply structure; industrialization in Nepal

Power supply structure in industries

An industry receives power from the utility grid at a voltage depending on its size and distributes it internally through substations, switchboards and feeders to motors, heaters and lighting.

   Utility grid 132/66/33/11 kV
            |
     [Metering + CB/isolator]
            |
     [Main step-down transformer]
        33 or 11 kV / 0.4 kV
            |
   ==== Main LV switchboard (PCC) ==== <- capacitor
     |           |           |       |   bank (PFC)
   [MCC-1]    [MCC-2]    [Lighting  [Standby
   motors     motors      DB]        DG set +
    |  |        |  |       |          ATS]
    M  M        M  M     lamps,
                         sockets

Main parts

1. Incoming supply: from the utility at 11 kV (medium), 33 kV or 66/132 kV (large industries), with metering (energy, maximum demand, reactive energy).
2. HV switchgear: isolator, circuit breaker, lightning arrester, protection relays.
3. Main transformer: steps down to 400 V (or 6.6/3.3 kV for large HV motors).
4. Power control centre (PCC) / main LV switchboard: busbars and ACBs/MCCBs feeding sub-boards.
5. Motor control centres (MCC): starters, contactors, overload relays, VFDs for groups of motors.
6. Distribution boards for lighting, sockets and small loads.
7. Power factor correction capacitors (fixed or automatic) at PCC or near motors, to avoid PF penalty.
8. Standby supply: diesel generator with automatic transfer switch (ATS); UPS for critical control.
9. Earthing system and lightning protection.

Radial distribution is used in small plants; ring or duplicate feeders in large or continuous-process plants for reliability.

Possibilities of industrialization in Nepal

Favourable factors (present scenario)

• Surplus hydropower, especially in the wet season; installed capacity has grown rapidly and supply interruptions due to load shedding ended around 2018.
• Raw materials: limestone (cement), agro and forest products, herbs, minerals, water.
• Market access to India and China; growing domestic demand.
• Government policies: Industrial Enterprises Act, special economic zones (SEZs) and industrial estates, investment board, energy-intensive industry promotion.
• Young labour force.

Promising industries

Challenges: weak transmission and distribution at industrial corridors, voltage and reliability problems, dry-season shortage, high tariff and demand charges for some categories, poor road infrastructure, labour issues, policy instability and limited capital.

Measures: dedicated industrial feeders and substations, concessional tariff for energy-intensive industries during the wet season, time-of-day tariffs, improved infrastructure and investment-friendly policies. With these, Nepal can use its hydropower internally for industrial growth instead of relying only on power export.