NEA's failure to build power lines has forced private sector to produce energy at low level
The private sector has played a major role in producing electricity, but it always faces prolonged procedural delays from the concerned agencies under the Ministry of Energy. The procedural delays have caused significant financial losses to the private sector when it comes to developing hydropower projects, which take a long time to complete. Currently, the private sector generates almost two-thirds of the total electricity generated in the country. The stateowned Nepal Electricity Authority (NEA) has an installed capacity of around 1,150 MW whereas the private sector is far ahead of the NEA, generating clean energy up to 1,900 MW. As a result of the private sector's contribution to the energy sector, the NEA is now able to export energy to India and, possibly to Bangladesh, during the wet season. The private sector could generate more energy provided the government overcomes the procedural delays, especially from the NEA itself and the Department of Electricity Development (DoED), which issues the generation licences. Energy entrepreneurs spend a lot of time in getting approval from the DoED while the NEA also causes delay when it comes to issuing connection agreement and reaching Power Purchase Agreement (PPA). The NEA also does not pay the private sector as per the PPA after a hydel project starts operation.
In response to the serious grievances raised by the private entrepreneurs, Energy Minister Shakti Baha-dur Basnet on Wednesday instructed his staffers in the NEA and DoED to proactively address any identified weaknesses or any structural or legal impediments that may be contributing to the delays.
The government's target of generating 10,000 MW of electricitywithin the next 10 years will not be achieved unless the government employees work diligently. He emphasised the need to construct transmission lines along the major river corridors and upgrade the sub-stations so that energy produced from the power plants could be evacuated to the areas where a large amount of energy is consumed. The NEA has, however, been able to construct the 220kV Kaligandaki Corridor transmission line in six years. But transmission lines and sub-stations in other river corridors have yet to be completed.
The NEA needs to make huge investment in building transmission lines and sub-stations to fully utilise energy in the industrial and other productive sectors.
Due to delay in constructing the Pathlaiya-Birgunj and Dhalkebar-Inaruwa transmission line sections, most industries in Sunsari and Morang districts have been operating below capacity. Energy entrepreneurs have been complaining that the NEA's failure to build transmission lines in time has forced them to evacuate electricity at low capacity under the NEA's "contingency plan", under which many private developers are paid as per the "take and pay" principle, not as per the "take or pay" principle. As per the PPA, the NEA is legally bound to purchase electricity from the private sector under the 'take or pay' model, which means the NEA has to pay for the energy it has generated even if the state utility cannot fully consume it. If the private power producers are paid under the 'take and pay' model for a long time, they will not be able to recoup their investment within 30 years and pay back the bank loans.
Female foeticide
That female foeticide is widespread in Sudurpaschim Province is shocking to say the least. Female foeticide has figured as the topmost challenge at a girls' convention organised in Sudurpaschim Province recently. Discrimination against girls begins even before birth when female foetuses are aborted as soon as they are identified. Female foeticide is not only about discrimination against girls, it also impacts the sex ratio, which could lead to women trafficking and increased sexual violence and abuse against women and children in society. Forced abortions also increases maternal mortality.
Stakeholders at the conclave suggested the government introduce additional policy to stop the scourge of female foeticide. Hospitals and clinics, especially private ones, must be strictly prohibited from disclosing the sex of the foetus during an ultrasound test, which has become common during prenatal check-ups. Creating awareness and quality education for all children will help do away with many of the ills plaguing Nepal's society. The government cannot be faulted for everything that goes wrong in society.
The malaise seen in Sudurpaschim shows that the NGOs have failed utterly in their mission to change society.
A version of this article appears in the print on October 13, 2023, of The Himalayan Times
