Impact of Unreliable Electricity Supply on Energy Efficiency and Economic Performance in Nepal’s TMT Steel Industry: A Case Study of Premier Steels

Nepal’s unreliable electricity supply, characterized by voltage fluctuations and irregular power availability, disrupts production and reduces efficiency in Nepal’s manufacturing industries, particularly the metal and steel sector. This study aims to quantify the impact of unreliable electricity on Specific Energy Consumption (SEC) and economic performance in Nepal’s TMT steel sector, using Energy Audit of Premier Steels as a case study. The study employs a detailed energy audit, including metered energy consumption data, production logs, and material flow analysis, to calculate SEC and assess the impact of power outages on production. Unreliable power increases SEC, causes material waste due to process halts, and results in annual financial losses, constraining industrial output and economic growth. Addressing electricity unreliability could increase the capacity utilization of steel industries, reduce reliance on TMT imports, and enhance domestic production. This study offers policymakers actionable strategies to enhance energy security and economic resilience.