Increase energy consumption: Experts

Kathmandu, Nov. 16

Experts have pointed out the urgency to develop strategy for the consumption of surplus energy.

Since the Nepal Electricity Authority witnessed a loss of Rs. 5 billion in three months due to spill of 600 MW energy during wet season, they suggested that alternatives to increase energy consumption within the country should be sought.

Speaking at a discussion on 'Market for Nepal's green power and way forward' organised on the occasion of the Annual General Meeting of Independent Power Producers Association of Nepal (IPPAN) on Tuesday that recommended to create a robust structure to promote efficient and clean energy.

Amrit Man Nakarmi, Professor at the Institute of Engineering, said that Nepal's per capita energy consumption is way down compared to its neighbours and global average.

While global average of per capita energy consumption is 3,265 kWh and India 1,000 kWh, Nepal has just 231 kWh.

Norway has the highest per capita energy consumption - 23,762 kWh while the United States of America has 12,744 kWh.

Stating that while neighbouring countries India and China are relying on coal for 60 and 70 per cent of their energy generation Nepal has been using clean energy, Professor Nakarmi said that Nepal should capitalize this achievement in terms of carbon trading and reduction of emissions.

He suggested creating a marketing department within the NEA to promote the use of induction cookers and other electric appliances at homes and offices and supply energy to electricity-intensive industries.

"Induction cooker is 45-50 per cent cheaper than the LP gas but people do not know this fact. The NEA should act now to create the market for the electricity that will be generated in the future as well," said Professor Nakarmi.

According to him, Nepal's fossil fuel imports were equal to 157 per cent of the total exports of the country in 2019. He said, "Our dependency is massively increasing. It was just 24 per cent of the total exports in 2004."

Ashish Garg, Vice president of IPPAN, said that there was a confusion in the part of the private sector that whether they should stop developing any new projects. "Should we generate energy and look for the market or we should ensure the market first and generate electricity?" he questioned the government.

According to him, electric stove, electric vehicles and industry are the main sectors to consume a large amount of energy. 

President of IPPAN, Krishna Prasad Acharya, said that the private sector has long been joining hands with the government in supporting the latter's aim to generate 15,000 MW hydroelectricity in the next 10 years.

He said that the private sector has invested Rs. 1 trillion in the past 27 years and additional more than Rs. 1.7 trillion investment is in the implementation process.

The country has about 2,000 MW installed capacity where NEA projects contribute 1190 MW and private sector 825 MW.

Seven projects of government with 610 MW capacity are under construction while 138 private sector projects of 3506 MW are in the pipeline, said Acharya.

Likewise, 99 projects of 1852 MW are in the construction phase after PPA and 45 projects of 2141 MW capacity are waiting for the PPA. Approximately, 7200 MW capacity projects are waiting for the electricity connection agreement.

Ram Prasad Dhital, Spokesperson of Electricity Regulatory Commission (ERC), said that carbon emission could be reduced by up to 97 per cent in a year if the country applied new measures of clean energy and its use.

Similarly, Pradip Thike, Deputy Managing Director of NEA, informed that additional 500 MW is industrial demand. "We recently began supplying 30 MW to Hongshi Cement and ready to provide another 30 MW soon. The NEA has a target to increase the demand in agriculture/irrigation sector as well," he said.

He indicated that the power purchase agreement could be based on auction in the future.

Shailendra Guragain, past President of IPPAN, suggested the government to create a dedicated desk at the energy ministry to follow up the power trade agreement with India and Bangladesh in order to ensure market for the energy produced in Nepal.

  Published in The Rising Nepal daily on 17 November 2021.