Future of Nepal’s Electricity: long-term policy suggestions

Main points

  • Electricity supply and demand varies at different time intervals
  • Electricity supply side is heavily based on renewable sources increasing the challenges of creating reliable electricity system
  • Demand side management programs, storage systems, trade agreements with India can be some of the long-term solutions

Let’s start with few questions: What determines the supply and demand of electricity? Does the demand remain same throughout the year? What about the supply? Is it possible, technically and economically, to generate electricity as required to serve the load? These are few questions to consider before thinking about developing a reliable and adequate electric system.

In this post, I discuss issues that Nepal’s electricity sector may face in future. One of the previous posts discusses the short-term solutions of current power shortage problems. Moreover, the recent post talks about electricity sector’s possible issues in the future.

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Energy Efficiency as an Energy Resource for Nepal

Guest Author: Achyut Shrestha

In the long run, Nepal may overcome the present power crisis with the help of largely untapped natural resources – hydro power potential up to 83 GWh (Shrestha, 1968) and significant potential from wind and solar energy (Upreti et al). However, it is imperative that we also try to seek immediate solutions to mitigate the energy shortage. Energy efficiency (EE) provides an opportunity to reduce power shortages in the short run.

What is Energy Efficiency?

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Nepal’s Electricity Crisis: Are there any short-term solutions?

Nepal is facing severe power crisis at the moment. Even with the proper planning, it takes several years to develop necessary infrastructures for power generation and transmission. With Nepal’s never ending political turmoil, Nepal Government’s plans of reducing power shortages may take few more years than anticipated. Let’s explore some short-term plans of reducing power shortage. Besides increasing generation, are there any other ways to reduce power shortages in Nepal?

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Economic Analysis of Nepal’s Transmission Power Loss

For sometime, I have been writing about the transmission power losses and its significance in Nepal’s electricity sector. Read about the annual power loss here. The causes of transmission losses and comparison with other countries of the world can be found here. In this blog, I will try quantifying the losses in terms of monetary values. What would the savings be if the loss was just 15 percent? How much has Nepal Electricity Authority (NEA) spent in expanding transmission and distribution network in the last decade?
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