Government's attention is not on domestic electricity consumption

The government's '100 Agenda' for governance reforms prioritizes electricity generation, transmission, distribution, and export.

Chaitra 15, 2082

Seema Tamang

Government's attention is not on domestic electricity consumption

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The government has said that it will take decisions on power purchase agreements (PPA) and licenses for projects within 180 days. Although the government has prioritized electricity generation, transmission, distribution and export in the '100 agenda' on governance reforms made public by the government, it has not given priority to domestic production.

With the aim of developing the country's energy sector as the main basis for economic transformation, and ensuring development by immediately removing obstacles related to electricity generation, transmission, distribution and export, the government has mentioned in its agenda that it will take decisions on all pending PPAs and licenses within a maximum of 180 days.

Energy entrepreneurs are confident that the PPAs for all pending projects that have not been done regularly since 2075 will be done. Ganesh Karki, Chairman of the Independent Power Producers Association of Nepal (IPPAN), said that the PPAs for projects with an estimated 13,000 MW that have applied for PPA with the Nepal Electricity Authority will be done within at least 6 months. He believed that the way will be paved for opening the PPAs for the remaining projects.

Energy Secretary Chiranjivi Chataut said that discussions are underway with the Nepal Electricity Authority and the Department of Electricity Development for PPAs and licenses. ‘We are in discussions with the authority and development, we will find a solution and implement it,’ he said.

Former government secretary Dwarikanath Dhungel said that the PPA should be done, keeping in mind that the government will be criticized if the electricity generated in the future is wasted by making a PPA under pressure. He also urged the government to do it only by looking at the Indian government’s policy when making a PPA.

Since there are many obstacles related to electricity generation, distribution, transmission and export, IPPAN has been demanding that the private sector participate not only in production, but also in transmission, distribution and export to solve them. IPPAN believes that it will help solve the difficulties seen in the construction of transmission and distribution lines on time due to the lack of a private sector at present, as well as the problems seen in electricity trade.

The government has said that it will prepare an energy export strategy within a month. Energy Secretary Chataut said that discussions are underway in the ministry to prepare the strategy. ‘A separate committee should be formed to formulate the strategy, it will be done from tomorrow,’ he said. IPPAN has stated that the strategy to be prepared by the government will move forward in a way that the private sector will participate in the construction of trade and transmission lines. The government has also said that it will immediately proceed with the implementation process by preparing a roadmap for structural reform of the NEA.

It has been announced that the necessary structure and rapid response mechanism for strengthening industrial and commercial security will be developed within 30 days. Karki said that since the construction of the project has been difficult due to strikes and sabotage by various groups in the past, it is expected that this will completely restore peace and security in the project and create an environment for investors to invest with confidence.

The government has an action plan to move forward the process related to environmental study approval of projects of national pride through an integrated automatic approval system under the fast track by setting a clear deadline. Karki said that this will help in getting environmental impact assessment (EIA) approval and tree felling permission for hundreds of hydropower projects in parks and conservation areas as soon as possible and completing the projects on time. Karki expressed his belief that such announcements by the government will also help in solving the problems seen in the current energy sector, from peace and security, procedural delays, structural problems to financial management.

The RSVP's pledge states that the Nepal government will provide the necessary land for establishment and extend the transmission line to the industry to increase domestic electricity consumption. The RSVP's pledge states that it will attract large energy-based industries such as steel, cement, herbal processing, data servers, stations and chemical fertilizer industries and that it will make extensive improvements in the distribution system to increase domestic electricity consumption, restructure the electricity tariff and determine and implement domestic electricity rates to increase household consumption.

The agenda also mentions an ambitious plan to increase annual electricity consumption to 1,500 kilowatt hours by 2035 by implementing a strong and effective strategy to increase energy consumption. However, the 100-day agenda made public by the government does not mention anything about increasing domestic electricity consumption.

Former Secretary Dwarikanath Dhungel says that the current government should not be under the illusion that it will get rich by selling electricity. He says that Nepal's electricity is being used more for domestic purposes than for industrial purposes. "The current government should not be under the illusion that it will get rich by selling electricity," he said. "Water and energy should be used for job creation and economy in the country. We should work to improve the living standards of Nepalis."

He said that there should be coordination between electricity production and national plans and an emphasis on domestic consumption. Dhungel also said that neighboring markets should be found to sell excess electricity. He argues that water should be used as a strategic tool and negotiations should be held with India, which has the most treaties and agreements, for the sale of electricity. He said that electricity should be imported during the dry season and reservoir projects should be taken forward to balance the excess electricity during the rainy season.

The Federation of Nepalese Chambers of Commerce and Industry has stated that the issue of encouraging energy production and export is positive. Chandra Dhakal, President of the Federation, said that if energy can be taken as raw material and provided to manufacturing industries at a concessional rate, it will have double benefits. The government's list mentions that the strategy of focusing electricity exports on markets where it fetches high prices (especially in the evening peak hours) will be implemented immediately.

The NEA has been exporting electricity to India at any time when production exceeds domestic demand. On the other hand, it has been selling electricity to Bangladesh every year from June 15 to November 15. Earlier, 40 megawatts of electricity was being exported to Bangladesh, but from June 15 onwards, the government will export 60 megawatts of electricity.

Seema

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