The Ministry of Energy, Water Resources and Irrigation has made public the draft of the ‘Energy Consumption Growth and Export Strategy, 2083’. The ministry has issued a notice on 11 Baisakh, urging stakeholders to submit their opinions and suggestions on the draft strategy within three days. 

The ministry has stated that the draft will be finalized after including the opinions and suggestions that need to be included. The ministry also says that it will be implemented after being approved by the Council of Ministers. On 13 Chaitra, Energy Minister Biraj Bhakta Shrestha had formed a high-level study committee to address the energy consumption and export strategy in accordance with points 74 (a) and (c) under the 100-point agenda on governance reform approved by the Council of Ministers. The strategy prepared by the committee, coordinated by Joint Secretary of the Ministry, Sandeep Kumar Dev, was submitted to the Energy Minister on 10 Baisakh.

The strategy also presents a long-term roadmap to promote the export of electricity saved after consumption, emphasizing on significantly increasing domestic electricity consumption. The strategy emphasizes comprehensive improvements in the transmission and distribution system by electrifying 100 percent of households. The strategy emphasizes the need to attract more people to use electrical household appliances, improve the capacity of meters and transformers, and gradually reduce the use of LP gas. The draft states that the current per capita energy consumption is about 450 kilowatt hours, but it can be increased to 1,500 kilowatt hours within the next 10 years. 

The strategy states that a target of 24,500 megawatts of electricity generation has been set in the next 10 years. The target of 24,500 megawatts of electricity generation has been set from 18 projects by 2092/93 (2035). In this, a target of more than 1,000 megawatts of solar energy promoted by the Nepal Electricity Authority has been set. The deadline for completion has been set by 2085. A target of about 14,000 megawatts of electricity generation has been set by 2092 from projects promoted by the Independent Power Producers Association (IPPAN). The target is to generate 3,500 MW from projects promoted by government companies and the Authority and its subsidiaries.

The draft strategy sets a deadline for the completion of the projects promoted by the government and the Authority. The target is to complete the 40 MW Raghuganga Hydropower Project within the next 100 days. The 140 MW Tanahun Hydropower Project is to be completed by the fiscal year 2085/86, the 42 MW Upper Modi-A, the 18.2 MW Upper Modi Economic Class by the fiscal year 2086/87, and the 37 MW Upper Trishuli 3B by the fiscal year 2084/85. The target is to complete the construction of the 1,200 MW Budhigandaki Reservoir Project, the 670 MW Dudhkoshi Reservoir Project, the 1,061 MW Upper Arun and the 417 MW Nalgad Hydropower Projects by 2091. The 490 MW Arun-4 Hydropower Project is targeted to be completed by 2090. 

The goal is to resolve the production imbalance between the dry and rainy seasons by increasing the share of reservoir and semi-reservoir hydropower projects in the production side. Along with the expansion of the nationwide transmission system, a plan has also been put forward to increase electricity exports to the regional market through international transmission lines. A strategy has been made to focus exports especially on the evening hours when demand is high and to gain greater economic benefits. In which the target has been set to export 15,000 MW of electricity within the next 10 years.

The government has been suggested to give priority to electric vehicles in the public transport sector to increase electricity consumption and to expand the network of charging stations. A policy has been taken to replace coal and petroleum-based boilers used in industries with electric systems. It has also been stated that electric buses and trolley buses will be operated in major cities.

The draft strategy also mentions the abolition of subsidies on LP gas and providing subsidies on electric stoves to increase electricity consumption in the household sector. The draft strategy mentions providing tariff concessions in the agricultural sector and converting to 100 percent electric irrigation pumps.  The

strategy has identified potential risks and proposed clear measures for their management. Expanding private sector participation in electricity trading and enhancing efficiency through structural reforms in the Nepal Electricity Authority have also been prioritized. Issues such as implementing the arrangement related to private sector participation in electricity trading within one year, restructuring the Nepal Electricity Authority within the next two years, and making power purchase agreement (PPA) and license decisions within 180 days have also been specified with time limits.  Mohan Dangi, Senior Vice President of IPPAN, said that the draft strategy prioritizes involving the private sector in electricity trading and transmission lines. ‘The private sector should not delay even a single day in issuing electricity trading licenses and permission for transmission lines,’ he said. ‘What will be the model of the transmission line now, which model should be given with an additional two paisa in the PPA, or what should be done, will be another topic of discussion.’ Dangi said that while increasing domestic electricity consumption, only electricity that benefits the country and is in excess should be sold. ‘The draft strategy is good, we always fail in implementation,’ he said. ‘Now, the previous government also said that on the one hand, 28,500 will be built in 10 years by 2035. On the other hand, they stopped the PPA by introducing take and pay in the budget.’