KATHMANDU, NOVEMBER 15

Nepal, which had been facing power cuts until some years back, is now not only in a position to meet the domestic demand for power, but also capable enough to export power during monsoon.

Nepal is moving on the path of transition to electric energy from its dependence on fossil fuels at a relatively fast pace.

This will contribute to reducing the emission of greenhouse gases and will also reduce economic risks.

Ninety-eight per cent of electricity in Nepal is produced from hydropower and other renewable energy sources. Nepal produces 2,200 megawatts power from these sources at present while power plants with the capacity of generating total 5,000 megawatts are under construction.

This clean energy can reduce carbon dioxide emission resulting from the energy sector in Nepal down to 8.6 million metric tonnes by 2,030 and to 3,500 million metric tonnes by 2045.

With significant use of the clean energy, Nepal will be reducing the amount of domestic emission of greenhouse gases in the South Asia region as well.

For this, Nepal needs to manage clean energy during the dry season. By doing so, Nepal can earn revenue of nine billion USD annually from 45 gigawatt hydropower and nine gigawatt solar power. This trade can help reduce over 100 million tonnes carbon dioxide per year.

Last year at COP26, the Government of Nepal announced its target of net-zero carbon emission by 2045. However, the mainstay of Nepal's energy sector is traditional biomass and imported fossil fuels which have adverse impacts on the environment, health, and the national economy.

Therefore, Nepal can achieve its long-term strategy for net-zero emission goal only if there is major shift in energy use from traditional biomass and imported fossil fuel to clean energy sources because the energy sector is the largest contributor to Nepal's total carbon dioxide (CO2) emission accounting for 54 per cent of total emission.

Hydropower plays a predominant role in Nepal's electricity system. However, variability in hydropower generation in Nepal is a major challenge. There is surplus electricity generation during the wet season and insufficient electricity generation and/or significant electricity import from India during dry season.

Smoothening Nepal's electricity generation curve, meeting Nepal's rising electricity demand and exporting surplus electricity are major policy challenges facing hydropower development in Nepal.

Nepal can rapidly shift from polluting energy sources to cleaner electricity to reduce its GHG emission as well as to reduce its economic vulnerability as 98 per cent of its electricity generation already comes from hydropower and other renewable energy sources.

Besides domestic emission reduction, Nepal can offset GHG emission in the South Asian region by exporting its significant clean electricity generation.

By doing so, Nepal can manage its surplus during the wet season as well as earn revenues of up to $9 billion per year from the 45 GW hydropower and nine GW solar power.

A version of this article appears in the print on November 16, 2022 of The Himalayan Times.