Guwahati: The Asian Development Bank (ADB) is helping Sikkim by introducing a climate- and disaster-resilient power system network, which will have a transformational impact in the state.
“The power system in the state is vulnerable to climate change and faces critical system expansion challenges. project will be the first major step and will have a transformational impact in the state,” the Bank said, approving a $148.5 million loan to help strengthen, modernize, and climate-proof distribution system to enhance reliability, quality, and resilience of the electricity supply in Sikkim.
The total project cost is $186.00 million of which ADB will give $148.50 million.
“Investments in Sikkim’s power systems have not kept pace with the growing electricity demand, in particular the steady demand growth in some industrial activities such as pharmaceuticals and distilleries. A large proportion of electricity transmission and distribution network infrastructure was constructed during the 1970s and 1980s and so is old and obsolete, causing increased outages and delays in fault location and restoration. The substation equipment and protective devices are overloaded and need replacement or upgrade. Frequent power disruptions in various switching substations have adversely impacted grid reliability and security,” the Bank said.
The total climate financing for the project is $105.4 million, with an estimated $68.5 million in adaptation costs and $36.9 million in mitigation costs.
The state’s per capita electricity consumption in FY2022 was 905 kilowatt-hours, much lower than the national per capita consumption of 1,255 kilowatt-hours that year. This is attributed to the prevalence of power system constraints in rural areas, which result from ageing distribution assets and lack of effective operation and maintenance, exacerbated by the challenging terrain.
Climate change impact on power system
Sikkim has a very rugged topography with a series of mountain ranges with varied peaks, valleys, and deep gorges. The state has 28 mountain peaks, more than 80 glaciers, 227 high-altitude lakes, and more than 100 rivers and streams. The state of Sikkim is susceptible to climate and disaster risks, landslides, and mudslides, especially during periods of intense rainfall. Sikkim is prone to heavy rainfall, occasional flash floods and heavy downpours. Over the last 15 years, the state has witnessed rapid hydropower development that, if not planned well, is prone to seismicity, landslides, and climate-change-related disasters. On the night of 3 October 2023, the South Lhonak Lake in north Sikkim breached, causing a glacial lake outburst flood, which along with excess rainfall led to the destruction of the 1,200 MW Teesta III dam, resulting in the devastation of downstream areas and communities, and affecting many districts of Sikkim and downstream areas of the northern part of the state of West Bengal.
The project will improve the climate resilience of distribution networks in the state by upgrading the power system with approximately 770 km of climate-resilient, medium-voltage underground and/or covered conductors.
Although electricity peak load demand has increased from 41 megawatts (MW) in FY20154 to 134 MW in FY2022, the state’s per capita electricity consumption in FY2022 was 905 kilowatt-hours, much lower than the national per capita consumption of 1,255 kilowatt-hours that year. “This is attributed to the prevalence of power system constraints in rural areas, which result from ageing distribution assets and lack of effective operation and maintenance, exacerbated by the challenging terrain,” it said.
The population of Sikkim does not enjoy uninterrupted and quality power supply, particularly in rural areas. During FY2021, power in Sikkim was supplied for 21 hours and 10 minutes per day in rural areas and 22 hours and 5 minutes in urban areas. It is forecast that by FY2032, electricity consumption will more than double from 441 gigawatt-hours per year to 911 gigawatt-hours, and the peak load demand will increase from 134 MW to 241 MW (footnote 10), exerting tremendous pressure on power networks.
“This project fully supports Sikkim’s Power for All initiative, ensuring round-the-clock uninterrupted access to quality electricity for households, industries, businesses, and the public. Additionally, it synergizes with the Government of India’s Revamped Distribution Sector Scheme by enhancing the distribution network, thereby boosting operational efficiency and financial sustainability of the distribution business in the state,” said ADB Principal Energy Specialist Jaimes Kolantharaj.
Additionally, it will replace 580 kilometres of ageing and low-capacity bare conductors with new ones to increase distribution network capacity. It will upgrade 26 existing power substations, including the installation of a supervisory control and data acquisition system, install 15,000 units of public street lighting in remote areas, and conduct electricity conservation and safety awareness programs in 28 villages.
The project will enhance the livelihoods of a minimum of 1,100 women, comprising self-help groups, producer groups, and individual businesses, through the installation of tailored renewable energy systems and the improvement of their vocational skills. Additionally, it will deploy solar energy systems and energy-efficient electrical equipment in 24 primary healthcare subcenters to enhance the capacity of rural healthcare facilities to offer in-patient treatments, especially during the winter months.
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