1.
Hydro power potential -
Nepal is naturally endowed with huge potential for hydropower.
Its steep terrain and the snow-capped mountains in the north provide
ample opportunity for the production of hydroelectricity. Nepal
is said to have a techno-economically feasible hydropower capacity
of 43,000 MW of which only 549 MW has been harnessed (2004). In
addition to the hydro generation 57 MW has been generated from
thermal resources. One can therefore conclude that there is a
lot of untapped resources available in the country for augmenting
hydropower generation.
2. High Population (Energy
per-capita lowest needs highest growth Etc.). -
At the present, electricity is enjoyed by only 40% of the population
of the country. Our coverage of the rural areas is a meager 5
%. The total generation in the year 2004 was 2261 GWh in the entire
grid system. Nepal’s per capita consumption of energy is
about 60 kWh. The electricity consumers in Nepal pay, on average
9.5 US Cents per unit of electricity consumed. The loss in the
systems is estimated to be 24 %.
Nepal’s energy demand is
growing at the rate 12 % per annum. This demand rate will increase
if cheaper electricity can be provided to more of the country.
It will further increase if the industrial sector can be assured
of uninterrupted power supply at reasonable prices. Add to that
the rapid growth in population of the country and we could have
a very high growth of demand for electricity in this country.
3. Big market inside /outside,
India/China -
Nepal is strategically located between two power hungry nations.
In addition to its own growth, Nepal’s neighbors too have
extremely high level of energy requirements. India is said to
be deficient of 25,000 MW of power to continue its growth. Likewise
China is also seeing huge industrial growth and will require substantial
amounts of power to sustain this growth. So both China and India
are potential buyers of power Nepal can produce.
4.
Clean Energy. -
The table provides a glimpse of various energy resources of Nepal.
Energy sources of Nepal in `000 tons of oil equivalent
| Source |
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
2000-2001 |
%
of total |
| Traditional |
6185 |
6321 |
6458 |
6743 |
6900 |
|
| Fuel
wood |
5525 |
5646 |
5769 |
6023 |
6165 |
77.2% |
| Agri
waste |
248 |
254 |
259 |
272 |
278 |
3.5% |
| Animal
Dung |
412 |
421 |
430 |
448 |
475 |
5.9% |
| Commercial |
677 |
791 |
892 |
1003 |
1087 |
|
| Petroleum |
533 |
554 |
635 |
709 |
756 |
9.5% |
| Coal |
72 |
160 |
174 |
205 |
223 |
2.8 |
| Electricity
(Hydro) |
72 |
77 |
83 |
89 |
108 |
1.4% |
| Total
energy used |
6862 |
7112 |
7440 |
7746 |
7987 |
|
Nepal
has an estimated energy need of about 7,000,000 ton of oil equivalent.
Of this over 80 % of the energy needs are met through fuel wood
and animal waste. Almost 10 % of our energy needs is met through
imported petroleum and less than 2 % is met through electricity.
One
can therefore conclude that Nepal is relying excessively on fuel
wood as its primary energy resource. It is clear that this is
not sustainable because no sustained effort has been made to continue
the usage of this resource. It is therefore imperative to convert
our fuel consumption pattern from non-renewable to renewable sources.
Hydro-electricity is the most attractive and obvious form of renewable
energy that can be harnessed in Nepal.
5.
Major Shareholder of only private utility in Nepal-
The Major shareholder of only private utility in Nepal Shangri-La
Energy Limited (SEL) in partnership with a Norwegian company called
Interkraft Nepal AS, bought 75 % of the shares of the Butwal Power
Company (BPC), the only private utility in Nepal. BPC presently
owns the 5.1 MW Andhi Khola Hydropower Plant, 12 MW Jhimruk Hydropower
Plant and provides electricity to over 20,000 households in the
vicinity of these two power plants. Likewise BPC also has an approximately
14 % share in the Himal Power Limited which owns the 60 MW Khimti
I Hydropower Project.
BPC
is established as a major hydropower produces and electricity
distributor in Nepal. It also has a very competent engineering
division specializing in hydropower design and engineering.
SEL
is formed of seven indigenous, successful and highly reputed Nepali
business houses. This group is already involved in manufacturing
of Steel, cables etc., information technology, carpets, electronics,
construction etc. The group’s entry into the energy market
is seen as a major development in the energy sector, which the
government is trying to hand over to competent private partners.
|
