Energy Crisis

Any great bottleneck in the supply of energy resources in an economy is energy crisis. Energy is considered as the most strategic resources in the 21st century. Energy crisis is simply the state of insufficient supply of energy or fuel to match the demand of energy at a specific time. Energy crisis is one of the world-wide problem for the under-developed countries like ours.

why energy crisis?

1. Political myopia in the issues of energy resources and fuel.
2. Unresolved dilemma of fossil fuel dependence.
3. Oil and gas reserves in the hands of a small group of nations- Africa, Russia and the Caspian Basin and the Persain gulf.
4. Heavy dependence on non-renewable sources of energy.
5. Under-utilization of renewable and perpetual sources of energy.\

Energy situation in Nepal

• Nepal`s more than 6000 rivers and rivulets have hydro-electricity potential of 83000MW, but even 5 percent is not utilized.
• According to 15th Plan, Nepal`s annual per capita consumption of electricity is 245 KWH which is the least in South Asia.
• According to the Mid-Term review of the 15th plan, 95% of the households have access to electricity.
• About 15 percent electricity is off-national-grid.
• According to Economic Survey of the fiscal year 2079/80, electricity production (installed capacity) in Nepal is 2666 Megawatt. However, the hydroelectricity production declines in the dry season and the deficit is fulfilled by importing electricity form India through cross-border transmission lines.
• Types of fuel used by the population for cooking firewood – 51%, LP Gas 44.3%, cow-dung 2.9%, biogas 1.2% and electricity 0.5% according to National Census of 2078.
• There is huge possibility of biofuel as forest covers 44.7% percent of total area.
• Poor use of alternative renewable sources of energy such as solar, wind, biogas, etc.
• Bangladesh has expressed its interest to invest in Nepal`s hydropower.
• Nepal is a mountainous country, so there is high possibility of wind energy.
• Average solar energy received in Nepal is 4.5 KWH per square meter.

Provisions for addressing Energy crisis

Pharping, hydropower is the first hydropower built in 1968 B.S. in Nepal. Since construction of Pharping hydropower, several efforts have been made for addressing energy crisis in Nepal.

• Constitution of Nepal has embraced policy for prioritizing domestic investment based on public participation in utilization of natural resources.
• Electricity Act, 2049, Nepal Electricity Authority Act, 2041, Water Resource Act, 2049, Hydropower policy, 2049, Nepal Petroleum Act, 2040, have been enacted.
• The Fifteenth plan and annual budget have provisions for addressing energy crisis.
• Action plan to eliminate national energy crisis has come to force. Many hydroelectricity projects including Upper Tamakoshi Hydropower project are operationalized and connected to national grid that is helping Nepal to get rid of power shortage currently.
• Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority, Alternative Energy Promotion Centre, etc. are the institutions working for addressing energy crisis.
• Hydroelectricity Investment and Development Company Limited established to promote investment in hydroelectric projects.
• Water and Energy Commission has been established for the promotion of energy sector in Nepal.
• SAARC Framework Agreement on Energy Cooperation signed in 2016 has opened broader avenue for electricity trade.

Problems of Energy Crisis in Nepal

• Local obstruction in hydropower project,
• Fragile policy base and frequent policy turnover,
• Infrastructure deficit-access roads, transmission and distribution lines are not sufficient,
• Ambitious plan, apathy in implementation,
• Prevalence of run-of-river hydro projects cause power shortage in dry season,
• Alternative energy is not connected to national grid system,
• Lack of investment from public, private and cooperative sector,
• Low foreign investment in mega and multipurpose project,
• Lack of budget and resources,
• Low capacity and ethics of contractors,
• Electricity leakage has become a perennial problem,
• Overdue electricity bill, leakage of power,
• Solar panel imported is so expensive for solar energy production in Nepal,
• Lack of adequate data and research regarding Hydrology, Metrology. Geology and Topography,
• Diplomatic deficit and inferiority complex for just inter-nations power trading agreement with neighboring countries.

Measures for solving energy crisis

Sufficient energy supply is a key to achieve economic growth and development goals. Energy crisis can be managed by –

1. Conducting energy audits to monitor usage.

• Review energy policy
• Rethink about the investment
• Use renewable energy
• Control leakages
• Manage internal and cross-border transmission lines
• Make manpower effective
• Check malpractice of buying and selling of rivers.

2. Changing Consumer behavior.

3. Research, develop and deploy a board range of energy sources.

4. Fast-tracking the construction of under-construction and planned hydropower projects.

5. Expedite reconstruction of plants damaged by last year`s earthquake.

6. Upgrade and enhance cross-border transmission lives.

7. Resolve issues related to land acquisition, forest-clearance and compensation in hydropower projects and transmission lines at the earliest.

8. Attract foreign investment in energy sector with lucrative incentives.

9. Control Energy Leakages.

10. Economic utilization of energy.

11. Building vibrant cross-border transmission for energy trade with neighboring countries.

12. Emphasize alternative and renewable energy resources.

13. Invest in Mega energy projects through Public-Private Partnership.