Kathmandu, December 26:

Use of electricity may actually be cheaper than using petroleum products, the prices of which are rising by the day, says a research commissioned by the government on formulating an integrated energy policy.

Researchers say they have come up with a draft of the finding on energy needs of Nepal and they will come up with a concrete framework for an integrated energy policy soon. According to Ram Krishna Tiwari, secretary at the Water and Energy Commission Secretariat, researches so far have shown that electricity might now actually be cheaper than petroleum products. Tiwari added Nepal can also earn carbon credits by adopting eco-friendly policies in the integrated strategy.

The government had called for bids for the study a year ago and a joint venture between the Centre for Energy Studies of the Pulchowk Engineering College and Consolidated Management Systems, a private company, was awarded with the contract.

Jagannath Shrestha, team leader of the venture, said: “Fifty-four per cent of our income from exports is being used in importing petroleum products. By 2015, it will be 100 per cent if the trend continues and if we don’t reduce dependence on petroleum products.” Shrestha also rued the lack of coordination between different government bodies on energy. “If someone gets a licence for hydroelectricity generation, he or she has to go to six other ministries to finally start the project.” He emphasised on the need for a single mechanism to deal with the energy sector.

The draft says energy safety and endurance; economic development and environmental impact and impact on HDI should be analysed while formulating a new policy.

The draft projects three scenarios for Nepal for the next 22 years. If average GDP growth remains at 4.4 per cent in the normal scenario, then the commercial sector will be consuming about 47 per cent of total energy. Ten per cent of which will come from petroleum products while 35 per cent will come from hydroelectricity and 45 per cent from firewood. The per capita energy consumption will remain at 34 Giga Joules per year. In 2005, this figure was 15 GJ.

In the second scenario, the GDP growth will remain at 7 per cent with per capita energy consumption remaining 71 GJ, and a rise in commercial use of energy by 12 per cent a year and electricity generation by 19 per cent. In an accelerated growth scenario of 10 per cent annual growth in GDP, the per capita energy consumption will be 162 GJ by 2030. Shrestha says this will, however, be possible only when there is political stability and a government with a will to implement the vision.