Urja Khabar
Kathmandu: Stakeholders have point out that the cooperation between the government and the private sector is indispensable in context of proper management of the power supply at a time when the energy distribution is unstable due to lack of infrastructure construction and inadequate structures despite sufficient production.
Speaking at an interaction entitled 'Electricity Consumption and Trade: Possibilities and Challenges' organized by Hydro Power Engineering Program (M.Sc.) of Institute of Engineering, Pulchok, member of parliaments of the House of Representatives (HoR), sector’s experts and analysts and representatives of the private sector emphasized on the need for collaboration between the government and the private sector for this purpose. The program observed Nepali Congress Lawmaker Gagan Thapa as the chief guest.
The program was aimed at taking the discussion on solutions to the problems encountered in the construction of electricity related infrastructure at the government, parliamentary committees and the HoR levels. Participants stressed on need for drawing special attentions at various levels for the expansion of the domestic market for electricity consumption, along with selling excess electricity during the dry season in India.
Gagan Kumar Thapa
MP, House of Representatives
There should be an open debate for energy development, so that the policy makers can think about it in a broader way. One cannot think about electricity trade without talking about overall Nepal's energy sector. In the current situation, if the financial management of private sector projects is not addressed and if there is no investment, the private sector will face a heave loss. Loss to the private sector obviously means a loss to the country itself. We are the private sector; it is a government agency.
The government has set a goal to produce 40,000 megawatts of electricity by 2050. For that, production will have to be increased successively. In the meantime, as we need profit, we will have to increase our consumption while flourishing electricity trade. There should be such a strategy. Both production and consumption should be taken together. There will be a problem if only production is focused and also, the problem arises if there is only consumption. While talking about increasing consumption, the use of electric kitchens and electric vehicles comes as a key priority.
In order to increase electricity consumption, there should be electrical structures and implementation of proper policies and laws accordingly. The policy and law should include plans to increase electricity consumption, electrical infrastructure development, use of electric vehicles and installation of charging stations. Talking about industry, now we should move towards producing adequate electricity in Nepal. And only with the development of the industrial sector, the consumption also increases. So far, the industrial sector has not been able to get reliable electricity. Reservoir and semi-reservoir pump projects are important in power generation.
Who will build which project? We have to think broadly about this keeping mind that private sector is also a public.
Thakur Prasad Gaire
Member, Parliamentary Infrastructure Development Committee
We have to move forward in a way that tackles the political and geopolitical challenges. There should be national unity for this. The main basis of prosperity of the country is electricity. There is a huge potential in electricity generation and it should be fully utilized.
What are the underlying problems of the promoters involved in energy production? We will fully support from our side if a report covering all aspects need improvement for energy development is endorsed. While taking forward the talk about boosting electricity trade and increasing consumption, we should render our priority to those rural areas where there is still no electricity and even though electricity is available, there is still load shedding going on.
We should be aware in advance about the problems that may come due to climate change, new technologies that may be introduced in the power sector along with the problems that may be associated while using the new technologies. While creating the policies and acts, it should be able to solve current problems and easily overcome the challenges and problems of the future.
Deepak Gyawali
Former Water Resource Minister
India possesses huge demand for electricity. India is trying to buy electricity at lowest possible cost from Nepal. At present, India has decided to buy electricity only from the projects it has invested in and not to buy the produce from projects associated with other countries. India has created a demand for Nepal's electricity but has not created a market for it.
Laws related to electricity production, consumption and trade are necessary. The Electricity Act could not be enacted even in the past one and a half decades. We have not paid proper attention to distribution and transmission lines. The transmission and distribution lines can be improved only if the imbalance of the social problems related to the issue can be fixed.
Dr Mukesh Raj Kafle
Coordinator,
Hydro Power Engineering Program (MSc), Pulchok Campus
We have to look at five scenarios while talking about current energy development. Now our production capacity is more than 2,800 MW. The peak demand is around 1,800 MW. The second scenario--electricity business. Now we have got permission to sell 452 MW of electricity in the Indian exchange market in the competitive market but we are not able to sell it. If we look at the data of July, only around 340 to 350 megawatts are being sold.
The third scenario, we are wasting electricity. We are exporting as well as importing electricity. The fourth scenario is that there is load shedding in many industries even now. The fifth scenario is that there is a problem of intermittent electricity supply in electrified areas.
These scenarios are different but the reason for all of them is infrastructure-- inadequate infrastructure and weak infrastructure. The infrastructure built in the past has taken us till present. In the meantime, due to lack of focus on infrastructure, this problem has arisen. We have 22 interconnection lines connecting with India but only one at Dhalkebar-Muzaffarpur line can be used for trade. When talking about electricity trade, China is also coming up as key player in South Asia, but the idea to trade with China should be dropped for now.
When we talk about South Asia, we have to talk about regional countries. Out of which, Afghanistan's hydropower production is 540 MW. Its potential production capacity is 23,000 MW. Pakistan has good potential in hydropower. Currently, it has a production capacity of 44,000 MW, of which 10,066 MW is contributed by hydropower.
Sri Lanka's hydropower production capacity is only 2,000 megawatts of which it has so far produced 1,700 megawatts of electricity. The demand there is almost the same as that of
Nepal. So, it seems no market there either. Now, talking about India, Bangladesh, Bhutan and Nepal; these four nations are connected by basins like Brahmaputra Ganga. Bangladesh has power generation capacity of 25,000 MW. India has a potential of 150,000 megawatts of hydroelectricity generation. Currently, the power generation capacity is around 420,000 megawatts.
Bhutan and Nepal are hydro-abundant countries. When it comes to Nepal produced electricity, there is talk of producing and consuming 40,000 megawatts of electricity by 2050. Electricity consumption has been linked with the country's gross domestic product. A study has shown that only 19 thousand megawatts of electricity can be consumed by the year 2040. We have the potential and the demand. When it comes to India, the contribution of hydropower is only 11 percent.
India is in dire need of hydropower now, so there may be a market for Nepal’. India also needs hydropower to fulfill its international commitments on carbon emissions. However, its policy of making a personal agreement with everyone seems to be a problem.
Udaya Kumar Bhandari
Secretary, Parliamentary Infrastructure Development Committee
What are the problems in the hydropower sector and energy development? Come up with a detail and approach to the parliamentary committee, which will resolve the problems with thorough discussion. It might be due to inadequate discussion and poor presentation on the part of Nepal while negotiating about electricity trade. We need to explore on where actually we are lagging. Hydropower should be made useful from multiple perspectives.
Hitendra Dev Shakya
Former Executive Director, NEA
There has been a cyclical imbalance between demand for and supply of electricity since long. We are leaving the reality aside and lost in an illusion. Nepal has not been able to expand its internal consumption, while it cannot give up selling its surplus electricity to India during rainy season. Even after the electricity trade agreement with India in 2014, Nepal has not been able to get the right to sell electricity without being impartial.
We should not forget the fact that if we will be selling electricity because we have in excess today, how will we manage when there is a shortage tomorrow. The private sector has been insisting on to sell their electricity to India, but they have to first settle the export duty as per the law. The matter should be made clear first, otherwise the question might be raised from the Indian side too. Therefore, it is necessary to focus on these issues and to emphasize the expansion of the market within the country.
Sher Singh Bhat
Former Deputy Executive Director, NEA
In order to increase the electricity consumption, in the first step, we should start from the present customers. They should be encouraged to use electronic devices and vehicles. Also, the related structure should be made reliable. Due to the fact that the electricity infrastructure is not reliable, the demand for electricity has not increased. At the same time, consumers who are using gas have not been able to switch instantly to electricity. While taking these works forward, the consumption will gradually increase.
Kumar Pandey
Energy Entrepreneur
When making policy, it should be made fit for all types of projects. Currently, some projects are in operation, some are under construction, some are under study and some are preparing to go into construction. Therefore, the policy to be devised should be made compatible for all these types of projects. Nepal has largely become free from load shedding, where the private sector has contributed a lot in the line. The private sector is indispensable for energy development. Now, the private sector should also be allowed to involve in the electricity business. Nepal's electricity market is India and for this it is necessary to have a reliable infrastructure. We have been insisting for a long time to increase consumption. For this, a concrete plan is necessary, a reliable and well-planned long-term structure is required.
Ganesh Karki
Chairman, IPPAN
The produced electricity has not been fully connected to the national grid; industries are demanding electricity but unable to get it. Electricity consumption cannot be increased. The main reason for all these, is the lack of transmission lines. This problem has arisen due to the inability of Nepal Electricity Authority to build and upgrade electricity related structures. The projects being constructed by private energy producers have not been able to operate at their full capacity. The authority is not purchasing electricity, due to which electricity is being wasted.
The construction of transmission lines should be given first priority in order to increase domestic electricity demand. Now the private sector should also be allowed to trade electricity, so that the state will receive the benefit and the authority's burden will be reduced to some extent.
Next year, the installed capacity will reach 4,000 MW. Now, we should proceed with a policy of consuming 10,000 MW of electricity in 10 years and producing 30,000 MW of electricity in the same period. Electricity is the primary mean to develop the country. Therefore, the act related to electricity should be passed, the electrical infrastructure should be made reliable for electricity transmission and distribution and electricity trade.
Susan Karmacharya
Executive Member, IPPAN
While discussion for increasing electricity consumption is widespread, electric vehicles, electric kitchens and industries are the main ones. The use of electric vehicles and electric appliances in the kitchen is on the rise, but as soon as multiple electric appliances are used at home, the lights go out. If this problem continues, consumption cannot be increased. The main reason for this is the lack of electrical infrastructure.
There are many problems in distribution lines and transmission lines. It should be resolved. If the authority allows the private sector to build electrical infrastructure, we can build it too. Due to this, the authority is also somewhat relieved. Only production of electricity is not enough, there should also be a transmission line for its consumption, distribution and quality flow. Therefore, the government and the private sector should work together for energy development.
Semanta Dahal
Legal Expert
Electricity trade with India has challenges and problems. India has been reducing the use of black energy including coal by boosting the use of clean energy. India now needs continuous clean energy, which is hydropower. Due to this, India can be the market for Nepal generated electricity. While India has been stating that it will sign a long-term power purchase agreement, there is no doubt that it will be a long-term PPA. India needs Nepal's electricity. Therefore, electricity trading should be made free from obstacles. For this, we should take forward a diplomatic debate.
