The govt must tackle internal and external hurdles to generate 20,000 MW of energy in the next decade
Encouraged by Indian Prime Minister Narendra Modi's pledge to import 10,000 MW of electricity from Nepal in the next 10 years, the Ministry of Energy, Water Resources and Irrigation is preparing to announce "Energy Decade" to produce 20,000 MW of clean energy within the next decade. However, the ministry needs to overcome many internal and external hurdles before achieving the goal of generating the said amount of energy in the next decade. Energy Minister Shakti Bahadur Basnet said the other day that preparations to announce the energy decade were in the final stage, and that various problems faced by the private sector would also be addressed. Currently Nepal has been generating around 3,100 MW of electricity, and around 2,000 MW of energy is produced by the private sector. The private sector is particularly concerned with Nepal Electricity Authority's (NEA) inability to build transmission lines along major river corridors, a situation which has prevented some hydropower projects from operating at full capacity. The private sector has also demanded that the government extend the deadline of the generation licences for power production from the current 30 years to 50 years as per the existing law. The private sector has also demanded the resumption of the power purchase agreement if the government were to generate 20,000 MW of clean energy in the next decade and beyond.
NEA's Managing Director Kulman Ghising has also admitted that there was a problem with electricity evacuation in Dordi, Koshi, Tamakoshi and Chilime corridors. The energy generated from these river corridors has remained under-utilised due to lack of full capacity transmission lines. In order to generate 20,000 MW of energy in the next decade, the government should also amend the existing Electricity Act, allowing the private sector to also build transmission lines and sell electricity. Due to lack of proper transmission lines along the major river corridors, banks and financial institutions are wary of making further investment in the hydropower sector, which is touted as a game changer in economy.
Given the existing scenario, it is not possible to generate the said amount of energy within the next decade as India, which is averse to third country involvement in Nepal's energy sector, has put one condition after another even for supplying explosives needed for the hydel projects. India has been delaying in issuing the "no-objection letter" to many hydel projects for the last six months. Not only this, India has now started seeking details about the board of directors of hydel projects, bank and financial institutions making investments in the energy sector, contractors and shareholders before issuing the NOC to them for the import of explosives. However, India has supplied explosives to the Indian-funded projects totalling 4,636 MW. This kind of obstacle will not augur well even for India, which has been reeling under an acute power crisis. Should India continue stopping the supply of explosives, Nepal should also look for options for importing them from third countries.
Don't give in
Trucks carrying Kathmandu's waste have been halted from proceeding to the landfill site at Bancharedanda by the locals yet once again, after Kakani Municipality on the way decided to levy entry fees for the vehicles. Kakani municipal council is demanding Rs 1000- Rs 1,500 from each of the 200 vehicles that come laden with Kathmandu's waste every day. These new demands are nothing short of blackmail resorted to by the municipality, understanding fully well that even a day's obstruction of the trucks would pile of garbage in the streets of Kathmandu. The demands also go against the deal reached with Kathmandu Metropolitan City a year ago, following which the metropolis had spent more than Rs 150 million on the education, health, jobs and other incentives of the locals.
KMC should not bow down to Kakani's extortion. The genuine demands of the locals of Kakani and Bancharedanda have been met, and giving in to new demands every time the locals block the trucks will only encourage them to seek more. In the meantime, the KMC should find a solution to the garbage generated in the city itself. It's surprising why it does not make use of Nepal-made waste incinerating machines that are even exported to Japan.
A version of this article appears in the print on July 19, 2023, of The Himalayan Times.
