Applications of smart grid technology in Nepal: status, challenges, and opportunities

Abstract

Energy transformation and sustainability have become a challenge, especially for developing countries, which face broad energy-related issues such as a wide demand-supply gap, extensive fossil fuel dependency, and low accessibility to clean energy. Globally, smart grid technology has been identified to address these affairs and enable a smooth transition from traditional to smart energy systems, ensuring energy security. This paper studies the critical role in strengthening the power system, integrating renewable sources, electrifying the transport sector, and harnessing bioenergy. Evaluating the current energy scenario in Nepal, this article presents the smart grid as a solution to existing and future energy issues and the associated challenges during its implementation, urging concerned authorities to launch initiatives to promote it. Moreover, this study also lays the foundation for future research into the smart grid's potential to reform the power sector in other developing nations with abundant renewable energy sources and similar energy-related barriers.

Keywords: Challenges; Energy transition; Microgrid; Nepal; Renewable energy; Smart grid technology.

Fig 1

a Global share of renewable energy 2020, and b Globally generated annual renewable energy over the past years (Data Source: (IRENA 2021b))

Fig. 2

Key causes and consequences of Nepal insufficient and unreliable power supply (Data Source: ADB 2017)

Fig. 3

Electricity demand at different scenarios with predicted ones (Data Source: (WECS 2017))

Fig. 4

Required installed capacity under different scenarios with predicted ones (Data Source:(WECS 2017))

Fig. 5

Power transmission network map of Nepal, 2020 (Data Source: (The World Bank ; RPGCL 2020))

Fig. 6

Roles of FACTS and RACDS in transition into a smart grid in Nepal

Fig. 7

Schematic illustration of the transmission network in a smart grid (modified after (Peng and Wang 2019))

Fig. 8

Schematic illustration of a radial distribution network in Nepal

Fig. 9

Diagrammatic illustration of a distribution network in a smart grid (modified after Peng and Wang 2019)

Fig. 10

Structure of inception cost for the application of FACTS devices

Fig. 11

Issues associated with the existing microgrids in Nepal (Shrestha et al. 2019)

Fig. 12

Policy roadmap/framework for implementing recommended solutions against EVs barriers (GGGI 2018)

Fig. 13

Electric vehicle concept (V2G and V2H) in a smart grid (modified after Khan et al. 2019a)

Fig. 14

Energy breakdown of various components of a typical WWTP (data source: Lemar and De Fontaine 2017)

Fig. 15

Net-zero energy concept in WWTPs ( adapted from Yan et al. 2017a)

Fig. 16

Major challenges associated with the application of a smart grid in Nepal