Electricity for whom? - Nepali Times

From The Nepali Press
Electricity for whom?
Editorial in Arthik Abhiyan, 8 January

FROM ISSUE #536 (14 JAN 2011 - 20 JAN 2011) | TABLE OF CONTENTS

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When we talk about Nepal's water resources, the first thing that comes to mind is electricity. A crucial question we should ask while formulating policy for water is, for whom is the electricity being generated? Though Nepal's water policy should be for the welfare of the country, it looks as though it is made for foreigners.

Nepal's per capita consumption of electricity is 70 units per annum; it is 10,000 units per annum in developed countries. Experts say Nepal would require between 55,000 to 60,000MW if its people consumed as many units as in developed countries. This means if Nepal's economy grows at a rate of 7 to 8 per cent per annum, there is no question of exporting electricity at all. If we think we have enough energy to export it for money, we are just being plain stupid. But the Ministry of Energy has not accepted this truth.

A study conducted by Somnath Poudel shows that Nepal needs at least 10,000MW by 2018 if economic growth is to maintain its momentum. In this context, if we invite foreign investors for hydro projects and export 90 per cent of generated power, how can we meet even domestic demand for energy? We need to generate an additional 1,000MW per year to meet the demand. But existing energy policy has not acknowledged this fact.

For instance, 270MW of the 300MW to be generated from the Upper Karnali project is for export. We will get only 30MW. Besides, the electricity that we export at Rs 2 per unit will be imported at Rs 10 per unit later. What kind of energy economy is this that generates electricity at Rs 2 per unit to export it then imports it at Rs 10 per unit? Who is to answer this question? In fact, even if the energy is generated by foreign developers, the first priority should be to meet domestic demand. The government has not even thought about downstream benefits, which is unfortunate.

Nepali people and the Nepali economy should benefit from hydro projects irrespective of whoever makes the investment. We can only export surplus electricity after meeting domestic demand. Nepal has the first right to consume electricity generated within its borders, no matter who produces it.

Nepal should not only expect foreign investors to produce electricity for us. It should develop big projects like West Seti for domestic consumption instead of export. Where is the money? Nepal receives Rs 3 billion in remittances alone, most of which is spent on luxury goods. If we are able to divert just 10 per cent of this to infrastructure, Nepal will not have to live in darkness. For this, we need to develop a mechanism. All we need is the will and accountability towards people. But there is not much we can expect from the government.

1. Sanket Tandon
yeah....you are definately right. but who will listen you, all are like dumb and selfish here!

Posted on: 14 JAN 2011 | 11:13 AM NST

2. who cares
another one who is trying to make their master/donor happy by sabotaging hydro development.

first of all which development country are you talking- china, us, malaysia, s korea................ trust me, we are never going to have their kind of economy so we shall never going to need their kind of power.

and again, countries like china, us, malaysia, s korea ----- the electricity they consume are not just consumed by them, it is rather the consumption of the entire world in the form of goods and services they export.

i think, US's per capita energy consumption must be declining.

Posted on: 14 JAN 2011 | 2:16 PM NST

3. Arthur
If hydro electricity was exported for Rs 2 and imported for Rs 10 the article would be quite right.

But that could only happen if India was in control through finance and construction.

If India was simply the customer for export and supplier for import of hydro electricity then one would expect exports of hydro to India to be at a much higher price than imports of power from India.

This is because hydro energy is stored in dams and can be used to supply more expensive peak period (and "spinning reserve") requirements.

Coal or nuclear generated power can be imported more cheaply to supply "baseload" but would cost more if it had to provide additional peak capacity that stands unused most of the time.

In addition of course the other benefits of hydro projects such as flood control and irrigation should also be paid for by the beneficiaries, including India.

There is nothing wrong with exporting hydro "peak" power while also importing coal or nuclear "baseload" power. What matters is the price, and therefore the financing and control.

There are many projects, including small run of the river hydro power stations that could be built using Nepalese capital including remittances.

But it is obviously ridiculous to imagine big hydro storage dams built without foreign direct investment.

In addition foreign construction and management expertize would be needed.

There are many countries that could provide the finance and the construction and management expertize for a "reasonable" slice of the benefits.

They would have the same interest as Nepal in ensuring that India as a simple customer and supplier pays appropriate prices for exports and charges appropriate prices for imports.

Posted on: 14 JAN 2011 | 9:41 PM NST

4. Dreamer
Nepal has little or no prospect in hydro energy anymore. The people in the government are just power hungry and excessively materialistic. These politicians know what they are doing to this country, but they are just too greedy to be moral in their deeds. We have good intellectuals and think tanks within Nepal but all their suggestions and complains are turned into deaf ear. However, I still have a little bit of faith, I just hope the private- public policy which is being adapted will create the will and accountability we all are looking forward of. It is high time, this country learns to recognize the assertion of India and use that assertion for our own benefit and not just let them lead our energy and foreign policies. that doesn't mean we are ought to become anti- Indians. The government should do more home- work before getting into any agreement, else we would look stupid in the eyes of our neighbors for years and years to come. Where have you seen a country deprive its citizen of its basic necessity while it sells the electricity in cheaper rate to India and buy it back in an expensive rate? I truly don't see the logic behind it. We need to learn to be more assertive on what we know is right. Generate the will to launch this country ahead to the path of development.

Posted on: 16 JAN 2011 | 6:18 AM NST

5. CONSUMERS
POLICIES MAKERS DECISION MAKERS SHOULD LEARN FROM
BHUTAN . HOW THEY SOLVE THIS. CURRENTLY NO OTHER WAYS.

Posted on: 17 JAN 2011 | 1:11 PM NST

6. BIDUTYA MAFIYA
Why you jounalist want to kill us .we are serving on this scheme sice one decade if production wILL be SUFFICIENT WHO WILL PAY US?

Posted on: 20 JAN 2011 | 1:23 PM NST