IEEJ：July 2017 © IEEJ2017

Country ReportNepal

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General Information
Energy Reserves
Current Energy Policy and measuresgy Demand and Supplypp yPast Energy
Energy outlook
Energy Related Investment
Major Difficulties and bottlenecks

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LLocation
ti3

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F t aboutFacts
b t NepalNl Total area 147,181 square km.
 Population around 28.51
28 51 million
 Lowest land 80 meters above
sea level
 Highest 8994 m Mount Everest
 Mountain 35%
 Hills 42%
 Tarai plane 23%
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PPopulationl ti andd Household
Hh ld

Number of household : 5,423,297(2)5IEEJ：July 2017 © IEEJ2017

GDP andd Growth
Gth

Nepal GDP

Last

Previous

HighestLowestUnit

GDP Annual Growth Rate

7.50

0.40

8.60

0.10

percent

GDP

21.20

19.80

21.20

0.50

USD Billion

GDP per capita

689 50689.50679 30679.30689 50689.50267 23267.23USD6

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Energy Mix
Modern Renewables 3%
Coal 4%
Petroleum Products12%
Electricity 3%

Biomass78%%Economic Survey, 2014/2015
475 PJ (11.3 mtoe)
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EEnergy
ReservesR• Nepal’s economic and social development isbeing hampered by its inadequate energy
supply.
pp y• The country till now does not have its own
reserves of gas, coal or oil. Some investigationwork
k isi goingion.
• Its most significant energy resource is water orhydropower just more than one percent of its
hydropower,
potential 84,000 megawatts of hydropower iscurrently
y harnessed.

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Th Hydropower
TheH dDevelopment
Dlt Policy,P li
2001
1 To
1.
T generatet electricity
l t i it att lowl
costt byb utilizing
tili itheth watert resources
available in the country.
2. To extend reliable and qualitative electric service throughout theKingdom of Nepal at a reasonable price.
price
3. To tie-up electrification with the economic activities.
4. To render support to the development of rural economy byextending the rural electrificationelectrification.
5. To develop hydropower as an exportable commodity.

ELECTRICITY ACT, 2049 (1992)
1. Competitive environment and invite private sector
2. Build own operate and transfer (BOOT) for private sector
py and subsidy
y for pprivate sector
3. One window policy

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ActioniPlanl"Action
Action Plan on National Energy
Crisis Prevention and Electricity
Development Decade,
Decade 20162016"
To end the load shedding going on inth country
thet andd makek theth countrytable to export the power to its
neighboringi hb icountries
t itot its
it optimum
ticapacity. Load shading has ended inK thKathmandu
d withith theth increaseiini
import of electricity from India fornow.
no10

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F t aboutb t theth hydroh dt ti l
Factspotential
 Total length of rivers and streams
more than 45,000
45 000 km.
km
g rain fall 1500-2500 mm.
 Average
 Theoretical hydro potential
84 000 MW
84,000 Economical hydro potential
43,000 MW
Installed capacity around 900 MW
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MMajorjrivers
ioff N
Nepall12

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P kD
PeakDemandd El
Electricityt i it13

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P k DemandPeakD
d off Electricity
El t i it

20122012-13

20132013-14

20142014-15

1094.62 MW 1200.98MW 1291.1 MW

2015--16
2015

1385.3 MW

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L d Forecast
LoadFt15

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G
Generationtitrendtd
2016-17
2015-16900 MW
697 MW

2011 122011-12747 MW

2010-11705 MW

Economic Survey

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UpcomingiHydropowerdProjectsj
 Within 3 months about 45 Mega Watts
 Next year about 200 Mega Watts
 Upper Tamakoshi 456 Megawatts expected
next year
Source DoED17

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Import off Petroleum
lProductsdPetroleuml
Productsdin K.L.

Kerosene

Aviation
Turbine
Fuel
Furnace Oil LPG IN MT

SN

Fiscal Year

PetrolDiesel

12071/72 (2014‐15)(2014 15)287 473
287,473921 714921,71419 653
19,653

141 404
141,404883

258 299
258,2992

2070/71 (2013‐14)

253,381808,567

18,409125,6782172

232,6603

2069/2070 (2012‐2013)

223,087

721,20324065

115,8962456

207,0384

2068/069(2011‐2012)

202,467

653,560

41609

109,904440

181,4115

2067/068 (2010‐2011 )

188,082

652,764

43,39999,990228

159,286

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PetroleumlIssues
Nepali is increasingly dependent on
petroleum product for its energy
requirement
May be due to the increase inconstruction
tti
activities
ti itiShould focus more on biofuels and inhouse available hydropower forenergy.

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EEnergy
SectorS t off Nepal
Nl
Ministry of Energy

Ministry of Supply

Department of Electricity
DDevelopment
lt
Nepal Electricity
A th itAuthority
Nepal oil corporation
Private sector
Electricity Tariff Fixation
Commission
Water and Energygycommission Secretariat

Energy Sectorof Nepal

Other line Ministry
Ministry of Forest and soil
conservation
Ministry of AgrcultureDevelopment
Ministry of Livestock Development
National Planning commission
Investment board Nepalp
District Development Committee,Village Development Committee
and Municipalities

OthersOther Organization•
Donors•Consumer right group•
Cooperatives•
Community Electricity Group•
OthersAlternate energy
Promotion Center20

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IPPs' Hydropower Projects (Under Construction )D lDevelopers

P jProjectsLLocationi

1 Upper Tamakoshi Hydropower Ltd.

Upper Tamakoshi

Dolkha456000 2067.09.14

2 Green Ventures Pvt. Ltd.
3 Robust Energy Ltd.

Likhu-IV
Mistri Khola

Ramechhap
Myagdi

52400 2067.10.19
42000 2067.10.20
2073.01.15
20000 2068.05.20
102000 2068.07.28
111000 2068.07.28
42500 2068.08.19
27000 2069.03.01
30000 2069.03.25

4 Manang Trade Link Pvt. Ltd.
Lower Modi
5 Middle Bhotekoshi Jalbidhyut Company Ltd. Middle Bhotekoshi
6 Chilime Hydro Power Company Ltd.
Rasuwagadhi
7 Sanjen Hydropower Company Limited
Sanjen8 Himalayan Power Partner Pvt. Ltd.
Dordi Khola
9 Sasa Engingeering Hydropower (P). Ltd
Khani Khola
10 Arun Kabeli Power Ltd.
Ltd
11 Liberty Hydropower Pvt. Ltd.
12 Essel-Clean Solu Hydropower Pvt. Ltd.
13 Peoples' Hydropower Company Pvt. Ltd.
14 Nyadi Hydropower Limited

Kabeli B-1
B 1
Upper Dordi A
Lower Solu
Super Dordi 'Kha'
Nyadi

ParbatSindhupalchowk
RasuwaRasuwaLamjung
DolakhaTaplejung andPanchthar
Lamjung
Solu Solukhumbu
Lamjung
Lamjung

15 Kabeli Energy Limited

Kabeli-A

Panchthar andTaplejungC
Capacity(KW)PPAi (KW)PPA Date
D25000 2069.03.29
2069 03 29
25000 2069.06.02
82000 2070.07.15
49600 2071.11.13
30000 2072.02.12
2072 02 12
37600 2072.06.07

Around 1132 Megawatts
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MajorjDifficulties
iffi l iandd bottlenecks
blk Technical and environmental
1. Sedimentation carrying rivers flowing through the young and fragile
mountain.
mountain
2. Huge difference of flow in river between the rainy and dry season
3. Effect of climate change and global warming. Mountains snow quantity isdecreasing and will hamper the river flow of snow fed rivers Economic and Financial
1. Return on investment for the investor of hydropower is low
2 Time2.
Tirequiredi d tto bbuild
ild theth infrastructure
i ftt
likelik roads
d andd transmission
t
i ili
line
leads to long project building time
3. Developer should be responsible for the roads and transmission line andas there is only one buyer NEA with whom developer should do the PPA

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Major Difficulties and bottlenecks contd.
 Political and Regulatory
1.
2.

3.

A lack of political stability, good governance and law and order issues
are important factors hindering progress and economic growth.
Frequentqchanges
g of ministers and the ggovernment,, lack of intergovernmental agency co-ordination, prolonged processes andprocedures for environmental clearances from the government.
Long list of local demands to be fulfilled by hydropower developers.

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P i itPriority
How to formulate energy policy
Best energy policy for NepalNepal needs a good policy and apply
it in order to develop the country sothat people who are now forced to goand work outside the country for theiliving can get work within thecountry.

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LOGOIEEJ：July 2017 © IEEJ2017

R fReferences[1] http://www.tradingeconomics.com/nepal/gdp-growth-annual
http://www tradingeconomics com/nepal/gdp growth annual[2] http://cbs.gov.np/image/data/Population/National%20Report/National%20Report.pdf[3] NEA Annual Report[4] http://www.nepalenergyforum.com/hydropower-promise-in-nepal/[5] http://www.nepaloil.com.np/import-and-sales-22.html
http://www nepaloil com np/import and sales 22 html
[6] http://www.tradingeconomics.com/nepal/gdp-growth-annual[7] http://www.mof.gov.np/uploads/document/file/Economic%20Survey%202015-16%20%20English_20160812062624.pdf[8] Nepal Energy Outlook 2016: Current Status and Prospect

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