CA Election of Nepal: Are parties’ energy sector promises feasible?

The second Constitution Assembly (CA) election in Nepal  is scheduled for Nov 19, 2013 due to the inability to draft a constitution after the first election. What are the election manifestos of the parties? Even though parties are used to making lofty promises during election campaign and not fulfilling most of them after, the manifesto indicates the parties’ future direction. Let’s discuss and compare major political parties’ election manifestos regarding Nepal’s energy and environmental sectors.

Almost all major parties have announced unrealistic plans claiming to eliminate current power shortage problems between 3 – 5 years. The manifestos give priority to the country’s hydropower sector and also aim to exploit renewable sources to increase electricity generating capacity.

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Nepal Energy in the News: August 15-31

Power wastage amounts to 50m units due to lack of transmission lines (The Kathmandu Post, accessed September 4, 2013)

I have raised the issue about the consequences of lack of transmission infrastructure in Nepal.  NEA reports that the total loss due to insufficient transmission lines in 2012-13 fiscal year is worth of Rs 420 millions. The posts cites Bhuwan Chettri, chief of Load Dispatch Center (LDC), and writes that NEA’s loss was due to the delay  in construction of three power line projects, including Khimti- Dhalkebar (220kv), Suchayatar-Matathirtha-Kulekhani – 2 (132kv) and Bharatpur-Hetaunda (220kv). The delay affected power generated from hydro power projects like Kaligandaki, Marysandi, Madhya Marsyandi, Trishuli, Chilime, Indrawati and Spring Khola to connect to the national grid. The news reiterates the fact that Nepal should focus on building new transmission and distribution lines to accommodate additional generation if it seriously wants to solve the energy crisis.

Power Grid preparing road map for SAARC electricity grid (The Economic Times, accessed August 30 2013)

This is a very welcoming news indeed. An electricity grid connecting South Asian countries will not only increase reliability, but also will help to harness each SAARC nation’s capacities and resources to address growing energy needs in the region. India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka are part of SAARC.  The Indian State-run Power Grid is finalizing the construction of transmission line between India and Nepal for transfer of bulk power.

Other News articles:

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Nepal Energy in the News: August 1-15

Nepal Electricity Authority (NEA) posted loss of Rs 4.56 billion in 2012/13 (Republica, accessed August 15, 2013).

However, loss is half of the previous year, thanks to the tarrif hike last August. In 2011/2012, NEA’s net loss was 8.55 billion. “Presenting the NEA´s financial report at 28th anniversary on Saturday, NEA´s Managing Director Rameshwar Yadav said that the annual loss came down due to an increment in tariff revenue by 22.5 percent. … The NEA has earned Rs 26.2 billion in total and the expense went up by 12.46 percent in the fiscal year as the energy purchase volume increased while the Nepali currency weakened against the dollar. It posted a total expense of Rs 25.07 billion in the year. And the total power purchase expense amounted to Rs 13.49 billion, which accounted for 53.82 percent of the total operating expense.  ”

11 hydro projects stalled as Nepal Electricity Authority (NEA) refuses to do Power Purchasing Agreement (PPA). (Karobar daily news, accessed August 5, 2013)

NEA has not signed PPA with these projects based on its assumption that surplus electricity will be wasted during the monsoon season six years down the line and it will face annual losses of billions. Six projects are Kali Gandaki Kovang (180 MW), Budi Gandaki A (90 MW), Budi Gandaki B (207 MW), six projects under Super Six (210 MW) Projects, and Upper Trishuli 1 (216 MW).

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Nepal Energy in the News: Week of July 22

Energy For Nepal will bring you news related with Nepal’s energy sector in biweekly basis. We will summarize important news and also provide links of other the published news during the period. We hope to make this blog a one-stop source  for news and analysis of Nepal’s energy sector.

First, some of the news article published some time ago but are still relevant:

Here are some of the energy related news from this week:

  • Energy sector gets highest Foreign aid commitment (ekantipur, accessed July 24 2013). Ekantipur writes that “The sector received Rs 42 billion out of total commitments worth Rs 115.15 billion, thanks to a huge commitment of Rs 33 billion for Tanahun hydropower project. Earlier news about ADB lending $150 million to this same project (ekantipur, accessed July 24 2013) .
  • Government failed to achieve energy targets – both in generation and transmission sectors –  set in the 12th Development Plan. In the three-year plan, Nepal government planned to add 184 MW of electricity to the national grid, but only succeeded in adding 21 MW. According to the National Public Commission’s  report published on myrepublica, government added only 500 m of transmission lines when it planned for building 500 km! Read the article in myrepblica, accessed July 24 2013.

Other News articles: