Gagan Thapa
Kathmandu,Nepal
Anyone who looks at the figures should be worried. Nepal produces only 600MW of power and demand is 800MW. Since most projects are non-storage type, generation capacity depends on the flow of the rivers. Even in the monsoon, the rivers generate only 692 MW, and with energy demand rising at 80 MW a year, power rationing is here to stay for at least three more years. In fact, there may only be power for three hours a day in coming winters. Load-shedding is no just a nuisance to consumers, the fall in productivity and increase in diesel imports is ruining the economy.
The government has declared an energy emergency up to December 2015 during which period it hopes to fast track projects to generate 2,500 MW of additional power, including from reservoir projects. Parliament's Committee on Natural Resources, of which I am a member, has just completed a detailed study and has made some recommendations in a preliminary report.
At present, hydropower development is stymied by inadequate incentives for domestic and foreign investors, poor governance at the regulating agencies and line ministry. Politicisation of the NEA has now reached unprecedented levels: there are 13 unions affiliated to various parties in the NEA. Even if there is enough generation capacity, there isn't the transmission capacity to take the power to consumers. NEA's monopoly in generation, transmission and distribution has hindered competition and hampered efficiency. Some projects are being delayed because their environmental impact assessment isn't complete.