---
title: "Industrial power supply structure; industrialization in Nepal"
subject: "Utilization of Electrical Energy"
chapter: 1
key: "semester_7/utilization_of_electrical_energy:industrial-supply-structure-industrialization-nepal"
source: https://www.bctengineer.com/q/semester_7/utilization_of_electrical_energy/industrial-supply-structure-industrialization-nepal
site: BCT Engineering
---

# Industrial power supply structure; industrialization in Nepal

Utilization of Electrical Energy · Chapter 1: Introduction

- Asked in: 2080 Bhadra, 4+4 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/utilization_of_electrical_energy/industrial-supply-structure-industrialization-nepal
- Whole chapter: https://www.bctengineer.com/md/semester_7/utilization_of_electrical_energy/chapter-1

## Question

Explain about the electric power supply system structure in industries with neat and clean system configuration diagram. Discuss the possibilities of industrialization in Nepal for the development as per present scenario.

## Short answer

Industry receives power from the utility at 132, 66, 33 or 11 kV, steps it down to 400 V, and distributes through PCC, MCCs, lighting boards, capacitors, DG and earthing; radial or ring feeders improve reliability. Nepal can industrialize using surplus hydropower, minerals, agro products, SEZs and EVs, though weak T&D and dry-season shortages remain challenges.

## Answer

#### 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.

```text
   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**

| Area | Examples |
|---|---|
| Energy-intensive | Cement, steel rolling, electric arc furnace, ferro-alloys |
| Agro-based | Tea, coffee, dairy, food processing, cold storage |
| Electro-chemical | Hydrogen production, fertilizer (green ammonia), electrolysis |
| Forest/herbs | Paper, furniture, herbal medicine |
| E-mobility | EV assembly, battery service, charging infrastructure |
| IT and services | Data centres, software outsourcing |
| Construction materials | Bricks (electric kilns), tiles |

**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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. In an industry's supply, what follows the incoming metering and CB/isolator?
   A. MCC directly
   B. Motors directly
   C. Main step-down transformer to 0.4 kV feeding the main LV switchboard (PCC)
   D. Standby DG set
   Answer: C. Grid supply goes through metering and CB to the main transformer, then to the PCC, then MCCs. (Key point: Supply chain order)

2. Why are power factor correction capacitors installed at the PCC or near motors?
   A. To increase voltage dips
   B. To avoid the power factor penalty
   C. To act as standby supply
   D. To provide earthing
   Answer: B. Capacitors improve power factor and avoid utility PF penalties. (Key point: Role of capacitor bank)

3. What does the diesel generator with ATS provide?
   A. Metering
   B. Lightning protection
   C. Standby supply when the utility fails
   D. Motor starting
   Answer: C. The DG set with an automatic transfer switch supplies standby power; UPS covers critical controls. (Key point: Standby supply)

4. Which is a favourable factor for industrialization in Nepal?
   A. Weak transmission at industrial corridors
   B. Policy instability
   C. Dry-season shortage
   D. Surplus wet-season hydropower and raw materials like limestone
   Answer: D. Surplus hydropower, raw materials, market access and policies favour industry; the others are challenges. (Key point: Industrialization challenges)

## Related in Utilization of Electrical Energy

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- [Block diagram of electric drive; series vs shunt starting](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Adrive-block-diagram-motor-starting) — Utilization of Electrical Energy, chapter 2
- [Types of traction system by supply source](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Atraction-systems-supply-source) — Utilization of Electrical Energy, chapter 4
- [Key components of electric traction system](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Acomponents-electric-traction-system) — Utilization of Electrical Energy, chapter 4
- [Areas of utilization of electrical energy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Autilization-areas-nepal-improve-consumption) — Utilization of Electrical Energy, chapter 1
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