A Report On An Overview Of Renewable Energy Scenario And Its Share To The Total Energy Demand In Nepal

A Report on An Overview of Renewable Energy Scenario and its share to the total energy demand in Nepal. By Indra Kumar Maharjan [email protected]

Executive Summary Nepal is known for its difficult terrain and immense hydro potential. The country‟s population is about 26 million of which 84% live in rural areas. They are distributed along hilly and difficult terrains comprising of more than 4000 villages. This makes the distribution of the generated electrical energy more challenging and uneconomical. Only 40% of the population is said to be electrified and 33% of them are supplied through national grid and 7% gets their electrical power from alternative energy. Electricity consumption in Nepal is among the lowest among Asian countries both in terms of per capita and per unit of GNP. Energy is the crucial input into the development process. The current energy system is not sustainable in particular because of the more consumption of biomass and fossil fuels. The huge demand for energy to facilitate socioeconomic development is largely fulfilled with biomass fuels. The current energy consumption scenario shows that large portion of the energy consumption is supplied by traditional fossil fuels. Due to which there is extra burden on the forests and threat to environmental stability of the country. Development of national grid to rural areas seems not possible till date. In this situation, the only alternative is renewable energy technologies (RETs) like solar, micro hydro, bio gas and wind. Though RETs contribute only 0.26% in the year 2004/05 of the total consumption it is projected to increase to 0.56 % in the year 2005/06. The various organisations involved in this sector have also triggered in the development of this sector with the government formulation an act. The total energy consumption of the country is increasing rapidly each year. In the year 1995/96, the total energy consumed was 9.25 GW which has increased to 12.03 GW in the year 2005/06 by 32 % in these 10 years. In rural areas the energy is required mostly for cooking purposes and a significant portion (65%) of the total energy consumed in rural areas is used for cooking. So these needs are basically fulfilled by the use of woods, coal, crop residues, animal residues, livestock manure, animal wastes and biogas etc which can be seen clearly as the consumption of energy through traditional sources is 86.7% of the total energy consumption in the year 2005/06. The dependence upon traditional

energy sources is decreasing each year with the energy produced by RETs is replacing these sources. Energy consumption in the FY 2004/2005has increased by 1.4 percent to 8616 Tons of Oil Equivalents (TOE) as compared to previous year and expected to increase by 3.34 percent to 8904 TOE in the FY 2005/2006. Similarly energy consumption in the FY 2003/2004has increased by 2.3 percent to 8491 Tons of Oil Equivalents (TOE) as compared to previous year 2002/2003 with 8294 Tons of Oil Equivalents (TOE). When we divide source of energy in to two parts - traditional and commercial- of the total energy consumption in the FY 2004/2005, traditional energy occupies 87.7 percent while the portion of commercial energy was 11.76 percent. In the FY 2005/2006, consumption of traditional energy is expected to remain at 86.7 percent while the portion of commercial energy will remain at 12.7 percent, which shows Nepalese economy still heavily relying on traditional source of energy. Of the total traditional energy consumption in the FY 2004/2005, share of fuel wood was 89.0 percent, agriculture and cattle residue was 4.3 percent and 6.5 percent respectively, while in the FY 2005/2006 it is expected that the consumption of fuel wood will remain at 89.0 percent while that of agriculture and animal residue will be 4.34 percent and 6.7 percent respectively. Similarly, of the total commercial energy consumption in the FY 2004/2005, the share of Petroleum was 69.5 percent, Coal 14.9 percent and electricity 15 percent, while in the FY 2005/2006 the share of Petroleum is expected to remain at 63.8 percent, Coal 21.3 percent, and electricity 14.8 percent. The above table shows that the energy consumption trend of renewables is very low as compared to other energy sources. Though the contribution of renewables to the total energy demand seems very low, the consumption pattern has increased to 0.53% in the year 2004/05 compared to 0.11% in the year 1995/96. The consumption is estimated to increase to 0.56% of the total energy consumption in year 2005/06.

The most significant increasing trend was seen in the consumption of electricity which was 89 MW in the year 1995/96 to GW in 2004/05. The contribution of electricity in total energy consumption in the year 1995/96 was 1% which increased to 1.82% in 2004/05. This consumption is expected to increase to 227 MW in year 2005/06. Of the total renewable energy consumption in the FY 2004/2005, share of biogas was 97.3 percent, microhydro was 2.5 percent and solar was 0.1 percent respectively, while in the FY 2005/2006 it is expected that the consumption of biogas will remain at 97.3 percent while that of microhydro and solar 2.48 percent and 0.14 percent respectively.

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The major factor for hindering the increasing pace of renewables is the ongoing conflict in the country due to which the foreign investment has nearly come to halt. Among the renewable energy sources also, biogas has larger share than other energy sources like microhydro and solar PV‟s in the total energy consumption. Most of the renewable energy generated is consumed by residential consumers and it must be remembered that 90.28% of the total energy is consumed by residential sector. The share of the renewables was 0.11% in 1995/96 and it increased to 0.53% in year 2005. Similarly biogas consumption in the year 1995/96 was 298 GJ increased to 1903 GJ in the year 2004/05. Energy consumed through microhydro in the year 1995/96 was 21 GJ which increased to 50 GJ in 2004/05. In the same year, 2.0 GJ of energy was consumed through solar energy sources.

The sectoral energy consumption pattern has changed only marginally in 2004/05 as compared to previous years. Of the total energy consumption in the FY 2004/05, share of residential sector was 90.28 percent, industrial sector 3.47 percent, commercial sector 1.4 percent, transportation sector 3.8 percent and agriculture sector 0.8 percent whereas in the FY 2000/2001, share of residential sector was 88.9 percent, industrial sector 4.8 percent, commercial sector 1.2 percent, transportation sector 4 percent and agriculture sector 0.9 percent. In the FY 2005/06, this energy consumption pattern is expected to remain with residential sector comprising of was 89.26 percent, industrial sector 4.5 percent, commercial sector 1.5 percent, transportation sector 3.7 percent and agriculture sector 0.8 percent. It can be observed that share of residential sector in the total energy consumption is decreasing in a steady rate while other sectors have a increasing trend. With the establishment of industries, industrial sector has maintained the third position in the total energy consumption. The total energy consumption in the FY 2004/05 was 11.64 GW. Out of this substantial portion was in residential sector in which traditional energy occupies 95.8 percent and that of petroleum 2.7 percent. Of the total energy consumption in the FY 2004/05, share of traditional alternative energy was 0.6 percent. Till now, renewable energy sources are not used by other sectors. So it can be concluded that the sole consumer of renewable energy sources is residential sector. As we know residential sector accounts for 90% of total energy consumption, renewable energy sources can be used the traditional energy sources. In the year 2004/05 this sector consumed about 331 million GJ of energy. Biomass resources are the major fuels in this sector Renewable sources like biogas and electricity from micro hydro and solar home systems are slowly substituting the conventional fuels which are mainly used for Page | 3

cooking and lighting. The commercial sources of fuel used in urban areas are nominal. The population growth rates as well as economic situation of the households are reflected in the pattern of residential energy consumption. The overall growth pattern in the residential sector is about 1.2 % each year. About 3.5% of the total energy consumption is accounted by industrial sector and this rate has been increasing each year. In the year 2004/05, 12.7 millions GJ of energy has been consumed by this sector. This sector relies mostly on fuelwoods and agricultural residues. The main end uses in this sector are process heating, motive power, water boiling and lighting. This sector does not consume renewable energy sources. Consumers like school, hotels, restaurants, government and non-governmental institutions etc. are categorized as commercial sector. The energy consumption in this sector in the year 2004/05 is 5.3 millions GJ with an increase of 8% each year. Fuelwoods, LPG, kerosene and electricity are the main sources used by this sector. Transport sector and agricultural sector also has an increasing energy consumption trend. Transport sector is heavily dependent on imported fossil fuels. Diesel contributes 65.7% followed by petrol with 18.9%. Aviation Turbine Fuel contributes 15% where as the share of electricity and coal is negligible. These all facts indicate that the energy demand in the country is rising at a speedy rate and to cater the demand of energy new strategy are to be formulated and implemented. A total number of 1588 MHPPs (Pico-hydro included) have been installed in different parts of country from 1962 to mid July 2005, generating 8827.5 kW of electrical energy. Till 2005, 11905 households (about 130kW) have installed Solar PV Home System in 67 districts. Solar program of Energy Sector Assistance Program (ESAP) has succeeded in installing 58,131 systems with installed capacity of about 2 MW peak. Beside this there has been also 293 Solar Dryer used for the purpose of cooking or drying foods in 21 districts. Solar Dryer is used for drying up fruits or any agro products. There are 150,000 Improved Cooking Stove (ICS) installed in 32 mid hill districts benefiting 54731 households till July 2005. Till year 2005, 96129 people of 17478 households in 56 districts has benefited from biogas support program. There are about ten biogas companies and 152,373 biogas plants have been installed till July 2005. Considering the high temperature requirement for biogas generation and minimum number of livestock per household, about 640,000 biogas plants are the potential. Small credit fund has also installed 829 plants in 19 districts. The involvement of different private institutions along with donor agencies and government agencies has assisted in the rapid development of RETs. With the government introducing the renewable policy 2000, with provision of subsidy upto Page | 4

75% acted as a catalyst for the success. Organisations like Alternative Energy Promotion Centre (AEPC), Rural Energy Development Project (REDP) and Energy Sector Assistance Program (ESAP) with support of donor agencies like DANIDA, UNDP are playing a vital role in this sector. The awareness among the people about the energy sources they have been using is overwhelming and they are switching the energy sources as far as possible. Beside this many private companies have been established providing services in installation, maintenance and trainings in RETs. The production of local manpower in this sector has proved to be an additional advantage. In conclusion, it can be said that the future of RETs is promising in the coming years. Nepal cannot remain isolated with the changing global energy consumption pattern which shows a good prospect of RETs in replacing other types of energy sources.

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Table of Contents

S no.

Description

1.0 1.1 1.2 1.3 2.0 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 3.0 3.1 3.2 3.3 3.3.1 3.3.2 3.4

Introduction Background Demographic Settings Energy and Economy Energy Resource Base Traditional Energy Sources Fuel Wood Charcoal Supply Agricultural Residue Animal Waste Commercial energy Hydropower Petroleum, Natural Gas and Coal Alternate Energy Resources Solar Wind Biogas Micro Hydro Power Plant Energy Consumption Scenario Consumption Pattern Total Energy Demand of the Country Energy Consumption History of Renewables Resource wise Energy Consumption of Renewables Sector Wise Energy Consumption Scenario Growth and Future Potential of the Renewable Energy Consumption Institutions involved for the support of Renewable Energy Policies and Organization

4.0 4.1

Page no. 1 1 1 2 3 3 3 4 4 4 4 4 5 6 6 7 8 8 9 9 10 14 15 16 19 21 21 Page | 6

4.1.1 4.1.2 4.1.2.1 4.1.2.2 4.1.2.3 4.1.2.4 4.2 5.0 6.0

Institutions involved in Renewable Energy Sector Private Sector Institutions Independent Power Producers Utilities Distributing Institutions Private Companies (specialized in supplies/trainings and education) Energy Policies of Government of Nepal (GoN) Conclusion References

22 23 23 24 25 26 26 30 31

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List of Tables

S. no.

Description

Page no.

3.1

Historical Trend of Energy Consumption by Fuel Type

9

3.2

Energy Consumption Pattern from year 1995/96 to 2005/06

12

3.3

Energy Consumption Pattern of Renewables

15

3.4

Sector Wise Energy Consumption Scenario

16

3.5

Resource Wise/ Sector Wise Energy Consumption Scenario in year 2004/05

17

List of Figure

S. no.

3.1

Description

Sectoral Energy Consumption by Fuel Type, 2004/05

Page no.

18

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1. Introduction 1.1

Background

Nepal is known for its difficult terrain and its immense hydropower potential. But the use of these renewable resources is limited by the difficult landscape and terrain. The country‟s population is about 23 million of which 86% live in rural areas. They are distributed along hilly and difficult terrains comprising of more than 4000 villages (CBS, 2002). This makes the distribution of the generated electrical energy more challenging and uneconomical. Only 40% of the population is said to be electrified and 33% of them are supplied through national grid and 7% gets their electrical power from alternative energy (NEA, 2006). Electricity consumption in Nepal is among the lowest among Asian countries both in terms of per capita and per unit of GNP (WECS, 2006). Energy is the crucial input into the development process. The current energy system is not sustainable in particular because of the more consumption of biomass and fossil fuels. The huge demand for energy to facilitate socioeconomic development is largely fulfilled with biomass fuels. Energy in Nepal is obtained largely from biomass resources, from imported fossil fuel resources, hydropower and renewable energy resources (WECS, 2006). With the greater and renewed approach and policy of the government with formulation of Energy Perspective Plan (1991-2017) and Renewable Energy Perspective Plan (2000-2020) emphasis on the development and importance of isolated generation in small scale as micro hydro power plants and solar PV systems in order to cater the surging demand for energy in remote villages. A very critical and challenging issue faced by Nepal is to generate and supply cost effective, environmentally sound energy services to its rural inhabitants. 1.2

Demographic Setting

Nepal is one of smallest countries in terms of land surface area. It has land area of only 147,181 sq km. Likewise, it has an average width of about 200 km (northsouth) and an average length of about 800 km (east-west) but it has high altitudinal variation from south to north. The lowest place is only about 161 m above sea level (masl) and the highest is the Mount Everest at 8,848 (masl) at the eastern part of Nepal. Nepal is a land-locked country and its difficult mountainous terrain has created a strong barrier for the infrastructure development. Nepal can be divided into 5 major physiographic zones, viz. Terai (< 300 masl), Siwalik (300- 1000 masl), mid-mountain (1000-3000 masl), high-mountain (30005000 masl) and high Himal (>5000 masl). About 23% of the area of Nepal is High Himal, which is covered by snow and ice all the time of the year. Terai is the main sources of agriculture production required for feeding the whole population over Nepal but it occupies only about 19% of the total area. The climate of Nepal varies according to the physiographic regions. Nepal has tropical and sub-tropical climates in the Terai and Siwaliks whereas temperate, sub-alpine, alpine and arctic Page | 10

climates in the mid-mountains, high mountains and high Himals respectively (CBS, 2002a. p14). Currently, there are about 23 million people living in Nepal, out of which about 86% live in rural areas (CBS, 2002b). The population growth is still quite high despite the enormous efforts for family planning. Currently, the population is growing by about 2.24% per year. Overall economic development by providing basic infrastructure services to the growing population has become one of the major challenges for current Nepal. Of the total population only 40% have access to electricity. Administratively, Nepal is divided in five developmental regions, fourteen zones and seventy-five districts. Each district is further subdivided into Municipalities and developments. At present there are 3992 Village Development Committees (VDCs) and 58 Municipalities in the country. 1.3

Energy and Economy

Energy is the basic necessity for survival. It is necessary for development activities to promote education, health care, transportation, and infrastructure for attaining a reasonable standard of living, and is also a critical factor economic development and employment. Till today Nepal has no other sources of energy beside the immense water resources. It has been recognized that Nepal‟s main natural resources is its abundant hydropower potential. The distinct topography of Nepal with its high hills and more than 6,000 rivers and innumerable rivulets crisscrossing the country provides many opportunities for the development of this field. Nepal is estimated to have theoretical hydro potential of 83,000 MW of which 42,000 MW is economically feasible. (Warnock, J.G., (1989), pp 26-32.) Energy plays a significant role in the economical development and technological advancement of societies and plays a crucial role in human welfare. The supply of energy is often a major constraining factor in the development of a country‟s economy. Many developing countries spent a large proportion of their development budgets on energy, and, while the developed nations debate the sustainability of the fossil fuel sources, for many developing countries the sustainability of these energy sources is more immediately a question of funds with which to buy them. This is the case in Nepal. The living of the people of the country is determined by the economy of the country. Energy is one of the driving factors of the economy. Basically three factors contribute to the economic growth namely capital, labour and energy. These three components determine the country‟s Gross Domestic Product (GDP). Hence to drive a country‟s economy energy supply and availability is a crucial factor. Nepal also relies heavily on energy for implementing various developmental activities. But the supply of the energy has not been sufficient in the current years which have a direct impact on the economic growth of the country. Page | 11

A supply of energy in a suitable form is considered to be one of the main inputs required to raise the standards of living of the people in mountain areas and to minimize damage to ecosystem. Per capita consumption of-energy has to increase significantly in order to develop the systems and infrastructure necessary for improvement of living conditions and increase in incomes. At home also, more energy consumed in a suitable form would improve the quality of life drudgery as well as health hazards. To cater the growing energy demand and trigger the economic development, Nepal is in the need of huge energy supply and to achieve it different approach should be taken in order to change the tradition consumption pattern. Supply of the energy to the rural place should be implemented with an integrated approach of promoting the renewable energy sources and isolated generation and distribution.

2.

Energy Resource Base

Energy sources have been categorized under three broad types: (i) traditional (ii) commercial and (iii) alternate energy sources. Traditional energy sources include biomass fuels particularly, agriculture residue and animal dung used in a traditional way – direct combustion. Commercial sources of energy are fossil fuels (coal and petroleum fuels) and electricity. Alternative or renewable energy sources include micro hydro, solar power, wind power, biogas, briquettes etc. The three major indigenous energy bases in the country are biomass, hydropower and solar power. There is also some possibility of sporadic deposits of natural gases and coal reserves still to be exploited. Biomass sector has been dominating the energy supply and consumption since many years and will continue to dominate as exploitation of other sources of energy is still minimal. 2.1 Traditional Energy Sources Nepal relies heavily on traditional sources of energy such as the agricultural residues and animal waste. The main sources of these are from the forest and shrub land. These are mostly used for cooking and heating purposes in the domestic sector. 2.1.1 Fuel wood Most of the rural and residential sectors of the country which contribute hugely in total energy system use fuel wood as major source of energy. These are obtained from forest area, shrub land, grassland, non cultivated inclusions, cultivated land and others. The sustainable fuel wood supply from accessible and reachable area

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of Nepal in the year 1978/79 was about 6.8 million tons as compared to 6.4 million tons in year 2003/04 (WECS, 1988). The supply of fuel wood has been depleting each year which has resulted in the misbalance between supply and demand. Higher consumption than sustainable energy found in Nepal is also contributing in this. 2.1.2 Charcoal Supply Charcoal also is a form of wood fuel which is directly derived from the burning of wood components. Charcoal is consumed by local restaurant, goldsmiths, metal crafters and clay producers. Beside these industries also consumes charcoal. In some cases residential sectors uses it for space heating. However charcoal supply practices in Nepal are very limited and illegal. 2.1.3 Agricultural Residue Agricultural residues coming directly from the agricultural crops is third largest indigenous biomass source of energy. Supply potential of agricultural residues is estimated at 19.5 million toms for the year 2003/04. This amount is equivalent to 244 million GJ in terms of energy that becomes about 67% of the total energy consumption in the same year (MOAC, 2004). 2.1.4 Animal Waste Animal dung is a second largest source of indigenous energy but it also occupies second largest position in consumption terms. The total dung for fuel available in the year 2004/05 is 509 million tons. About 24% of the total energy requirement of the country can be met by animal dung if used for energy purpose only. 2.2

Commercial Energy

Petroleum fuels (kerosene, LPG, motor spirit, diesel, aviation fuel and fuel oil), coal and electricity are considered as commercial energy sources. 2.2.1 Hydropower Nepal has immense hydropower potential. This potential is used in two forms: mechanical and electrical. The mechanical application through traditional water wheels has been used since long time back. Hydropower is exploited about 1.5% of the potential. The electricity production efforts in Nepal focus only on the construction of large hydroelectric power plants to harness some of Nepal‟s gigantic hydroelectric resources. Nepal has an estimated 83,000 MW of hydroelectric potential, of which only 397.89 MW has

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been currently exploited (NEA, 2006). These hydroelectric plants are built to provide electricity to urban areas, or to sell power to India. Environmental problems with the dams such as inundation, siltation, negative impacts to river water quality, harm to riparian ecosystems, controversies over India‟s position as a price-determining buyer of Nepalese electricity, and the fact that these large projects rely on expensive foreign contracting firms have raised opposition against large-scale hydroelectric projects in Nepal (Pokhrel, Murali D.). Medium -scale hydropower remains the likely choice for meeting Nepal‟s urban electricity demand, which is growing at an annual rate of 14% to 15%. For remote areas, the Nepal Electricity Authority (NEA) frequently uses diesel power stations. Currently the NEA has an estimated 55.66 MW of diesel power stations in regular use. These are noisy, smelly, expensive, and further increase reliance on fossil fuel imports. The total installed electricity generation is about 613.5 MW out of which hydroelectric generation capacity is around 557 MW. The national grid is supplied with 603 MW and the remaining are an isolated system comprising 40 small/mini hydro plants, about 2000 micro hydro and 1200 peltric sets serving remote areas of the country. (CADEC, 2004) Demands are changing and consumption of electricity has risen significantly over the past twenty years. The commissioning of Kulekhani 1 and other large hydro stations in the early 1980‟s enabled rapid expansion of supply and a dramatic growth in consumption. Hydroelectricity- generation capacity in Nepal has raised approximately two hundred fold over last thirty years. Total peak demand is expected to increase from 369 MW to 1548 MW during 2005-19 without considering any future export to India. (NEA. (2002), pp-40) But the challenge of providing energy to the rural areas seems impossible using these overburdened power sources. Because of the difficult terrain, large distances and low population densities, many rural residents in Nepal cannot expect electricity in the next coming 30 years. Traditionally, developing on rural areas especially the more remote mountain areas has lagged behind out of the preferred urban centers, whereas substantial investment were made to develop adequate infrastructure in the main urban centers, including the setting-up of special facilities. The rural areas did not even have basic facilities such as drinking water sanitation, roads, schools, or health centers. Economic and employment opportunities such as industries local processing of rural products and transportation infrastructure were practically nonexistent in the past.

2.2.2 Petroleum, Natural Gas and Coal Page | 14

All the petroleum products consumed in Nepal are imported from India and other countries. Till now no proven reserves of petroleum suitable for commercial exploitation have been found in Nepal. In the year 2004/05 Nepal imported about 280 thousand tons from India. Kathmandu alone consumes about 40% of the imported (WECS, 2006). 2.3

Alternate Energy Resources

Most of the population lives in the rural areas where economic bases for large scale investments for harnessing hydro potentials and erecting a transmission and distribution lines seems not possible in near future. In this case, alternative or renewable energy technologies (RET) like solar, microhydro, wind and biogas plays a vital role in fulfilling the energy needs of these people. Likewise it also assists in raising socioeconomic standard of rural people by creating many opportunities. The extension of distribution lines is even made worse since the lines in the rural areas have poor reliability, high line losses (27% reported as a countrywide average by Nepal Electricity Authority (NEA)), and have a very high cost (typically $10,000 to $30,000 per kilometer. Line extensions are often awarded as political favors, leading to inefficient service area growth. Metering individual customers is prohibitively costly in rural areas, and customers are charged a flat rate (or not billed at all), leaving no incentive to conserve electricity which leads to the discontinuation of rural electrification by NEA. As a result rural electrification is likely to proceed at a very slow pace in the coming decades which will eventually lead to the dependence on fossil fuels (CRE, 2005). An estimated 50% of Nepal‟s forests have been cut down in the past 30 years, deteriorating the fragile ecology. Rural energy consumption contributes about 87% of total consumption and residential cooking (using wood or dung) accounts for 65% of rural energy consumption (PREGA, 2004). 2.3.1 Solar Nepal, being located in favorable latitude, receives ample solar radiation of 3.6-6.2 kWh/m2/day, and the sun shines for about 300 days a year. There is a viability of this technology in many parts of the country. Unlike hydroelectricity or wind, solar electricity is fairly evenly distributed spatially and temporally, so every area in Nepal has adequate sunlight in all seasons for a solar electric system. One significant advantage of solar electricity is that it is convenient and cost effective to install solar electric systems on the scale of a single household. Looking this prospect different non governmental organizations (NGO) have been involved in installation of solar electric systems for various community development projects in conjunction with the NEA installed three large centralized village-scale PV station of 30-50 kW capacity in Simikot in Humla, Gamgadi in Mugu, and Tatopani in Page | 15

Sindhupalchowk (CADEC, 2005). These systems performed poorly due to poor component design, and "overly elaborate and expensive centralized design and lack of proper maintenance support". The uses of solar energy is for drying crops, clothes, fuelwood, crop residues etc. traditionally. With the technological developments in this area it is being used for water heating purposes in urban and tourist areas. After the provision of subsidy by the Government of Nepal (GoN), the use of solar photovoltaic (PV) has been increasing significantly. With the involvement of different organizations in this sector, the numbers of solar PV installed has risen dramatically from 0.3kWp in the year of 1992 to 3328.42 kWp in the year 2005. (AEPC, CADEC, 2004 and Piya, 2006) Solar electric systems in over 11905 Nepali homes (130kW) within 67 districts provide power for household and business lighting, and to power small DC appliances (AEPC 2006). Solar electricity also powers water pumps that provide Nepali villages in the Terai plains with drinking water in remote districts. Solar electricity is extremely reliable because there are no moving parts in the systems. Because of its reliability, solar electricity is used to power critical applications such as vaccine refrigerators and surgery theaters in rural clinics. According to one estimate, over 6000 units of 50 W module PV systems are in use in different parts of the country by the Nepal Telecommunication Corporation powering remote telephone repeaters. 2.3.2 Wind While wind power is well developed in many countries (China, USA, European countries), in Nepal it is still at an experimental stage. A 30 kW wind power plant was sponsored by the Danish Government and installed by the Nepal Electricity Authority in Kagbeni, Mustang, but was heavily damaged by high wind after only a few months of operation. The main obstacles for wind power in Nepal are lack of wind data available for most areas of the country, and the absence of technical expertise in the country for implementing wind projects. Nevertheless, the possibility of cost-effective wind or wind/solar PV hybrid systems is promising given anecdotal evidence of constant high wind speeds in a number of areas, and current small wind turbine technology available from the international marketplace. In the long run, the possibility exists to manufacture wind turbines here in Nepal, much in the same way that micro-hydroelectric turbines are manufactured here by a number of industries. The wind potential of Nepal is mainly concentrated in a few valleys such as Mustang, Palpa, and Khumbu. A wind potential of about 200MW has been identified in Jomsom – Chusang corridor.

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2.3.3 Biogas Biogas is the mixture of gas produced by methanogenic bacteria while acting upon biodegradable materials in an anaerobic condition. Biogas technology was first introduced in 1955 but widely disseminated only in 1977, after the establishment of Biogas Company. To date, there are about 60 private biogas companies and 15 biogas appliances manufacturing workshops in the country. A total of 140,519 biogas plants have been installed till July 2005. Considering the high temperature requirement for biogas generation and minimum number of livestock per household, about 1.9 million biogas plants are the potential of which 57% in terai and 43% in hill and mountains (CRE/AEPC 2004). Biogas Sector Partnership- Nepal (BSP-N) has been actively involved in the development of this technology. Till year 2005, 96129 people of 17478 households in 56 districts has benefited from this program. Small credit fund has also installed 829 plants in 19 districts. 2.3.4 Micro-Hydro Power Plant (MHPP) Hydropower plants of capacity upto 100 kW are referred to as Micro-hydropower (MH) plants in Nepal. Plants of up to this capacity have been fully de-licensed by Government of Nepal. This technology was introduced in Nepal in early 60s. There are 1541 micro-hydro plants capable of generating 8.5 MW of power already installed in Nepal. These figures include Mill-Only Schemes or MPPUs, Peltric Sets and all other type of plants (CADEC, 2005). There is a considerable capability in project survey / design and manufacturing / installation of Micro-hydro related parts and micro-hydro projects in Nepal. Now there are a number of MH manufacturing and installation companies, consultancy firms and NGOs working in MH sector in Nepal. Hundred and seventy detailed studies in 36 districts are carried out showing a possible output of 3758.41 kW capacities. Micro hydroelectric power plants are a common choice for village electrification in Nepal because of their low cost, comparatively low-tech manufacturing requirements, and economies of scale. There are an estimated 900 microhydroelectric installations scattered throughout 59 of Nepal‟s 75 districts, with a total capacity of around 5 MW. Of these, 350 are traditional water wheels or "ghattas" with an added alternator for electrical output in the range of 1 to 3 kW. Micro-hydroelectric installations are site-specific, requiring suitable creeks. They are also more susceptible to freezing than PV electric systems operations, and can be destroyed by monsoon floods. But when installed and operated properly, they can deliver power in quantities suitable for small rural industries such as agroprocessing and bread baking, whereas this is not always feasible for PV installations due to the high cost of PV. Page | 17

There are number of companies involved in the installation of micro-hydro plants using local knowledge and Nepalese-manufactured turbines and controllers. These projects usually takes place with community participation in order to build the capacity to develop a managerial system, maintain the installation, collect fees from villagers and address conflicts that arise. This is very difficult task due to the political and caste division in many villages. For community hydroelectric projects, common property issues arise; social mechanisms must be put in place and enforced to ensure that system users do not take more than their fair share of electricity, and that community members contribute equitably to system upkeep. Furthermore, conflicts over water rights are sometimes an issue, since the hydroelectric turbines may require the diversion of irrigation water supplies.

3. 3.1

Energy Consumption Scenario Consumption Pattern

Traditional non commercial forms of energy have largely dominated the overall energy consumption of Nepal but the trend is decreasing. The share of traditional forms of energy to the energy consumption is estimated to about 86.7% in 2005/06 as compared to 91.9% in 1995. The remaining 12.7% of energy consumed is through commercial source (within which electricity is in the higher side in substituting other fuels) and 0.5% through renewables which has increased than 0.1% in 1995 as shown in the table below. This trend clearly illustrates that renewable sources are being used by the people to satisfy the increasing energy demand (WECS, 2006)

Historical Trend of Energy Consumption by Fuel Type (In 000 GJ) Fueltype

1995

2005

2006*

Share % Share % Share % in 1995 in 2005 in 2006*

Traditional Commercial Renewables TOTAL

258212 24784 319 283315

322105 43195 1955 367255

329094 48290 2134 379518

91.94 11.76 0.11

87.70 11.76 0.26

86.7 12.7 0.56

Table: 3.1 Historical Trend of Energy Consumption by Fuel Type (In 000 GJ) Source: Energy Synopsis Report 2006, WECS (* provisional figures)

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3.2

Total Energy Demand of the Country

Energy is the basic necessity for survival. Energy is one of the most essential factors for economic development. The per capita electricity consumption is considered as yardstick of economic development. Nepal is a developing country and the pace of development is determined by the efficient use of energy. In other words the demands of energy, the consumption of energy, are the indicators of the economic growth of the country as it is directly linked with other factors of economic development. The main source of energy in Nepal is biomass fuels. But the shortage of biomass fuels has forced urban households and industries to switch from biomass fuels to imported fossil fuels and other commercial forms of energy. The main features of the energy sector are the imbalance between energy resource endowment and its current use. There is an excessive dependence on dwindling forests to meet energy needs, while hydropower, which has vast potential, has remained virtually unharnessed. The main feature of the energy sector is the imbalance between energy resources endowment and its current use. There is an excessive dependence on dwindling forests to meet energy demands, while hydropower, which has vast potential, has remained virtually unharnessed. Water is the most important natural resources of the country. Our country is endowed with enormous economically exploitable and viable hydro potential assessed to be about 44000 MW. However, only 1% of the hydroelectric potential has been harnessed so far and 1% is under various stages of development. Thus, 98% of the potential remains without any plan for exploitation. (NEA. (2002), pp-29) The energy consumption trend in Nepal is found to be one of the lowest in its' region. The largest consumption is in households i.e. 91%. Per capita energy consumption is also very low in Nepal ranking second last in the South Asian region i.e. only 0.3 Toe in the year 1998. The average per capita energy consumption in the South Asian region is about 0.37Toe, and 1.7 Toe is the world‟s average in the same year. The per capita consumption of Nepal in last two decades is almost constant, where as in case of other neighboring countries like India, Sri-Lanka and Pakistan; they are growing. Per capita energy consumption is one of the indicators of the development (WECS. (1999), pp-6). The total energy consumption in Nepal was 8205 million toe in 2002, which translates to per capita annual energy consumption of about 15 GJ, ranks among the lowest of the world (MOF, 2003). Electricity supply is limited to 40% of the total population. The total energy consumption in the year 1998/99 in Nepal is 7.6 million tons of oil equivalents (toe) and the annual average growth of energy consumption in the last 10 years has Page | 19

been about 4.6%. However growth of commercial energy consumption has been high at about 8.4% per annum for the same period (WECS, 1999). Despite of low energy consumption level, the sustainability of the energy sector is a big challenge with the high population growth rate, excessive dependence on the forest resources, and inefficient use of these resources. Nepal largely depends upon forests and agricultural residues for energy generation. Indiscriminate use of which could lead to environmental degradation affecting farmland and livelihood of human kind. Present trend of energy consumption needs to be changed to ensure the sustainable development process of nation in long run. In this context alternative energy resources can play a major role. A number of schemes carried out mobilizing alternative energy sources and techniques have shown successful outcome. The widely applied alternative energy technologies are Micro hydropower, solar energy and Biomass energy conversion technology. At present hydropower comprises of about 14% of the total commercial energy consumption in the country. (WECS, 2006) and the role of small and micro-hydro schemes is significant in extending the electrical energy consumption to the rural areas. Due to various factors the extension of transmission lines to the remote villages where most of the population lives is very costly. So in these cases RETs are playing a crucial role. In Nepal, small water turbines are a traditional technology. Even today, there are estimated to be 25,000 water powered Pani ghattas operating in remote districts. Micro-hydro has the potential to provide both mechanical and electrical power for rural development in the remote hillsides of the country, where extension of national grid is not feasible. The scope and prospects of the RETs system in Nepal is very high. The national grid, which runs along the densely populated terai with its higher level of economic activities, cannot be a solution for northern rural hilly areas at present. These areas have very few economic activities and are sparsely populated. This makes grid-fed electricity for these areas economically unfeasible. In these circumstances RETs have performed satisfactorily in Nepal and have gained international reputation. RETs like Micro-hydro schemes involve local people and companies in the generation and distribution of electrical energy. And the price of electricity is determined on the local basis. With the approach of electricity in these remote places other development activities related with the electricity are also attainable. So MHP schemes are playing the dual role i.e. selling electricity by expanding the energy market to the remote places and contributing in the development of the sector.

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At present the whole world is switching to the alternative energy sector for fulfilling the energy demand. With the diminishing stock of natural oil and gases, coal the best alternative is renewable energy and Nepal has huge resources of water and major portion is still to be explored. So with the effective planning and development of this sector can change the future of nation. So the policy-making organization of government and private sectors should work together in developing this sector and achieve maximum benefit from it. Realizing this fact, the involvement of private organizations like REDP, CADEC and many others along with government organizations like AEPC, RADC are also paying a crucial role in developing Micro-hydro schemes. Beside this donor agency like DANIDA, GTZ, WB, ADB are also lending their financial and technical assistance in this sector. With the implementation of subsidy policy the scenario is more positive than before. And this is attracting local people to take initiations in developing and commissioning of MH schemes. At present the availability of easy financial support, manpower and technical equipments within the nation the market for RETs schemes proves its significance with establishment of approach of electricity to rural people. The overview of the energy consumption pattern is shown in the table below.

Consumption Pattern of Energy by Fuel Type (in GW)

Fuel Type

1995- 1996- 1997- 1998- 19991996 1997 1998 1999 2000

20002001

20012002

20022003

20032004

20042005

20052006*

Traditional

8.360

8.471

8.653

8.839

9.029

9.223

9.579

9.786

9.997

10.214

10.436

Commercial

0.880

0.934

1.038

1.105

1.426

1.374

1.391

1.372

1.423

1.370

1.531

Renewable

0.014

0.018

0.022

0.027

0.032

0.039

0.045

0.053

0.056

0.062

0.068

Grand total

9.254

9.422

9.714

9.971 10.487 10.636 11.015 11.211 11.476 11.646 12.034

Table: 3.2 Energy Consumption Pattern from year 1995/96 to 2005/06 Source: Energy Synopsis Report 2006, WECS (* provisional figures)

The total energy consumption of the country is increasing rapidly each year. In the year 1995/96, the total energy consumed was 9.25 GW which has increased to 12.03 GW in the year 2005/06 by 32 % in these 10 years.

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The total energy demand of the country is expressed as in the terms of suppressed demand. Since the energy supply is not sufficient to fulfill the total energy required by the entire population, the demand is seen as equivalent to the energy that is consumed or supplied. In rural areas the energy is required mostly for cooking purposes and a significant portion (65%) of the total energy consumed in rural areas is used for cooking. So these needs are basically fulfilled by the use of woods, coal, crop residues, animal residues, livestock manure, animal wastes and biogas etc which can be seen clearly as the consumption of energy through traditional sources is 86.7% of the total energy consumption in the year 2005/06. The dependence upon traditional energy sources is decreasing each year with the energy produced by RETs is replacing these sources. This increase in the demand for electrical energy cannot be fulfilled by the outstripping supply and chronic shortages, shortfalls in generating capacity; low plant load factors due to the aging generators and poor maintenance of equipments at existing plants and losses of power due to poor quality transmission lines and theft. All these facts have led to the necessity of the development of mini- hydro and micro-hydro power plants in the rural areas of Nepal. In order to address these issues government of Nepal has formulated a policy in favor of the private entrepreneurs and investors to encourage the investment in building and operate these plants or sources of power. It is also providing subsidy in installation of these plants. The result is overwhelming and the participation of the community is outstanding. Energy consumption in the FY 2004/2005has increased by 1.4 percent to 8616 Tons of Oil Equivalents (TOE) as compared to previous year and expected to increase by 3.34 percent to 8904 TOE in the FY 2005/2006. Similarly energy consumption in the FY 2003/2004has increased by 2.3 percent to 8491 Tons of Oil Equivalents (TOE) as compared to previous year 2002/2003 with 8294 Tons of Oil Equivalents (TOE). When we divide source of energy in to two parts - traditional and commercial- of the total energy consumption in the FY 2004/2005, traditional energy occupies 87.7 percent while the portion of commercial energy was 11.76 percent. In the FY 2005/2006, consumption of traditional energy is expected to remain at 86.7 percent while the portion of commercial energy will remain at 12.7 percent, which shows Nepalese economy still heavily relying on traditional source of energy. Of the total traditional energy consumption in the FY 2004/2005, share of fuel wood was 89.0 percent, agriculture and cattle residue was 4.3 percent and 6.5 percent respectively, while in the FY 2005/2006 it is expected that the consumption of fuel wood will remain at 89.0 percent while that of agriculture and animal residue will be 4.34 percent and 6.7 percent respectively. Similarly, of the total commercial Page | 22

energy consumption in the FY 2004/2005, the share of Petroleum was 69.5 percent, Coal 14.9 percent and electricity 15 percent, while in the FY 2005/2006 the share of Petroleum is expected to remain at 63.8 percent, Coal 21.3 percent, and electricity 14.8 percent. So we are facing a very volatile energy scenario, the demand is increasing at its most but the supply are facing more constraints and beside hydroelectricity we have no other means of producing electricity. 3.3

Energy Consumption History of Renewables

The capture of energy from existing flows of energy, from on-going natural process, such as sunshine, wind, flowing water, biological processes, and geothermal heat flows is termed as renewable energy. Most renewable energy other than geothermal and tidal power, ultimately come from the Sun. Some forms are stored solar energy such as rainfall and wind power which is considered short-term solar-energy storage, whereas the energy in biomass is accumulated over a period of months, as in straw, or through many years as in wood. Capturing renewable energy by plants, animals and humans does not permanently deplete the resource. Fossil fuels, while theoretically renewable on a very long time-scale, are exploited at rates that may deplete these resources in the near future. Renewable energy resources may be used directly, or used to create other more convenient forms of energy. Examples of direct use are solar ovens, geothermal heating, and water- and windmills. Examples of indirect use which require energy harvesting are electricity generation through wind turbines or photovoltaic cells, or production of fuels such as ethanol from biomass. Renewable energy electricity systems, using solar energy (photovoltaic - PV) or falling water (micro-hydroelectricity) have proven effective in providing modest but very useful amounts of electricity to villagers in rural Nepal. Electricity from these sources provides light for students to study, and villagers to engage in income generating activities such as painting thangkas (religious paintings), sewing clothing, or operating shops and clinics. Lighting extends villager‟s social lives, and electricity powers TVs and radios that bring news of the outside world (Winrock, 2006).

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Consumption Pattern of Renewable Energy (in GW) Fuel Type

1995- 1996- 1997- 1998- 19991996 1997 1998 1999 2000

20002001

20012002

20022003

20032004

20042005

20052006*

Electricity

0.097

0.104

0.112

0.120

0.134

0.146

0.150

0.171

0.189

0.212

0.227

Biogas

0.013

0.017

0.022

0.026

0.031

0.037

0.044

0.051

0.056

0.060

0.066

Microhydro

0.001

0.001

0.001

0.001

0.001

0.001

0.001

0.001

0.001

0.002

0.002

Solar

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Grand total

9.254

9.422

9.714

9.971 10.487 10.636 11.015 11.209

11.47 11.646 12.034

Table: 3.3 Energy Consumption Pattern of renewables from year 1995/96 to 2005/06 Source: Energy Synopsis Report 2006, WECS (* provisional figures)

The above table shows that the energy consumption trend of renewables is very low as compared to other energy sources. Though the contribution of renewables to the total energy demand seems very low, the consumption pattern has increased to 0.53% in the year 2004/05 compared to 0.11% in the year 1995/96. The consumption is estimated to increase to 0.56% of the total energy consumption in year 2005/06.

The most significant increasing trend was seen in the consumption of electricity which was 89 MW in the year 1995/96 to GW in 2004/05. The contribution of electricity in total energy consumption in the year 1995/96 was 1% which increased to 1.82% in 2004/05. This consumption is expected to increase to 227 MW in year 2005/06. 3.3.1

Resource wise energy consumption of renewables

Of the total renewable energy consumption in the FY 2004/2005, share of biogas was 97.3 percent, microhydro was 2.5 percent and solar was 0.1 percent respectively, while in the FY 2005/2006 it is expected that the consumption of biogas will remain at 97.3 percent while that of microhydro and solar 2.48 percent and 0.14 percent respectively. The major factor for hindering the increasing pace of renewables is the ongoing conflict in the country due to which the foreign investment has nearly come to halt.

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Among the renewable energy sources also, biogas has larger share than other energy sources like microhydro and solar PV‟s in the total energy consumption. Most of the renewable energy generated is consumed by residential consumers and it must be remembered that 90.28% of the total energy is consumed by residential sector. The share of the renewables was 0.11% in 1995/96 and it increased to 0.53% in year 2005. Similarly biogas consumption in the year 1995/96 was 298 GJ increased to 1903 GJ in the year 2004/05. Energy consumed through microhydro in the year 1995/96 was 21 GJ which increased to 50 GJ in 2004/05. In the same year, 2.0 GJ of energy was consumed through solar energy sources. 3.3.2 Sector wise energy consumption scenario The energy consuming sectors has been defined as per the economic sector of the country namely residential, industrial, and commercial, transport and agricultural sector. The energy consuming entities like street light, temples, etc fall into others sector. The sectoral energy consumption pattern has changed only marginally in 2004/05 as compared to previous years as shown in the table below.

Sector Wise Energy Consumption Scenario (in GW) Year 19951996 19961997 19971998 19981999 19992000 20002001 20012002 20022003 20032004 20042005 20052006*

Residential Industrial Commercial Transport Agricultural

Others

Total

8.60

0.38

0.09

0.28

0.02

0.01

9.38

8.82

0.21

0.10

0.38

0.03

0.01

9.55

9.05

0.22

0.09

0.44

0.04

0.01

9.85

9.25

0.24

0.10

0.48

0.02

0.01

10.11

9.49

0.51

0.12

0.41

0.10

0.01

10.63

9.68

0.42

0.13

0.44

0.10

0.01

10.78

10.12

0.40

0.16

0.39

0.09

0.01

11.17

10.30

0.38

0.17

0.41

0.09

0.01

11.36

10.49

0.44

0.17

0.42

0.09

0.02

11.64

10.66

0.41

0.17

0.45

0.10

0.02

11.81

10.89

0.55

0.19

0.46

0.10

0.02

12.20

Table: 3.4 Sector Wise Energy Consumption Scenario from year 1995/96 to 2005/06 Source: Energy Synopsis Report 2006, WECS (* provisional figures)

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Of the total energy consumption in the FY 2004/05, share of residential sector was 90.28 percent, industrial sector 3.47 percent, commercial sector 1.4 percent, transportation sector 3.8 percent and agriculture sector 0.8 percent whereas in the FY 2000/2001, share of residential sector was 88.9 percent, industrial sector 4.8 percent, commercial sector 1.2 percent, transportation sector 4 percent and agriculture sector 0.9 percent.

In the FY 2005/06, this energy consumption pattern is expected to remain with residential sector comprising of was 89.26 percent, industrial sector 4.5 percent, commercial sector 1.5 percent, transportation sector 3.7 percent and agriculture sector 0.8 percent. It can be observed that share of residential sector in the total energy consumption is decreasing in a steady rate while other sectors have a increasing trend. With the establishment of industries, industrial sector has maintained the third position in the total energy consumption.

Resource wise/Sector Wise Energy Consumption Scenario In year 2004/05 (in 000GJ)

Sector FuelType Traditional Commercial Electricity Renewable Biogas Microhydro Solar Total

Residential Industrial Commercial Transport 317798 11815 2898 2134 2078 53 3 331567

2245 10516 2750 0 0 0 0 12761

2049 3286 394 0 0 0 0 5335

Agricultural

0 13894 21 0 0 0 0 13894

0 3085 180 0 0 0 0 3085

Table: 3.5 Resource Wise/ Sector Wise Energy Consumption Scenario Source: Energy Synopsis Report 2006, WECS

The total energy consumption in the FY 2004/05 was 11.64 GW. Out of this substantial portion was in residential sector in which traditional energy occupies 95.8 percent and that of petroleum 2.7 percent. Of the total energy consumption in the FY 2004/05, share of traditional alternative energy was 0.6 percent.

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Till now, renewable energy sources are not used by other sectors. So it can be concluded that the sole consumer of renewable energy sources is residential sector. As we know residential sector accounts for 90% of total energy consumption, renewable energy sources can be used the traditional energy sources. In the year 2004/05 this sector consumed about 331 million GJ of energy. Biomass resources are the major fuels in this sector (MOF, GON. (2002), pp-123). Sectoral Energy Consumption, 2004/05

81%

4% 6% 1% 1%

3% 1%

Fuel Wood Commercial

Agriculture residue Petroleum Renewable

3% Animal dung Coal Biogas

Electricity Micro Hydro

Solar

Figure: 3.1 Sectoral Energy Consumption by Fuel Type, 2004/05 (In percentage) Source: Energy Synopsis Report 2006, WECS

Renewable sources like biogas and electricity from micro hydro and solar home systems are slowly substituting the conventional fuels which are mainly used for cooking and lighting. The commercial sources of fuel used in urban areas are nominal. The population growth rates as well as economic situation of the households are reflected in the pattern of residential energy consumption. The overall growth pattern in the residential sector is about 1.2 % each year. About 3.5% of the total energy consumption is accounted by industrial sector and this rate has been increasing each year. In the year 2004/05, 12.7 millions GJ of energy has been consumed by this sector. This sector relies mostly on fuelwoods and agricultural residues. The main end uses in this sector are process heating, motive power, water boiling and lighting. This sector does not consume renewable energy sources. Consumers like school, hotels, restaurants, government and non-governmental institutions etc. are categorized as commercial sector. The energy consumption in this sector in the year 2004/05 is 5.3 millions GJ with an increase of 8% each year.

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Fuelwoods, LPG, kerosene and electricity are the main sources used by this sector. Transport sector and agricultural sector also has an increasing energy consumption trend. Transport sector is heavily dependent on imported fossil fuels. Diesel contributes 65.7% followed by petrol with 18.9%. Aviation Turbine Fuel contributes 15% where as the share of electricity and coal is negligible. These all facts indicate that the energy demand in the country is rising at a speedy rate and to cater the demand of energy new strategy are to be formulated and implemented. 3.4

Growth and future potential of the renewable energy consumption

It is easy to predict that world energy demand, and especially that for electricity, will increase greatly during this 21st century, not only because of demographic pressures, but also through an improvement in living standards in the less developed countries, which will represent 7 billion inhabitants in 2050 (78% of the total). Consumption of primary energy will increase up to threefold by the middle of this century, and the increase will be even greater for electricity. In view of this situation, many sources of energy will be necessary, but for environmental reasons, a high priority should be the development of all technically feasible potential from clean renewable sources, especially hydropower. (WEC. (1998), pp67) About 87% Nepalese live in rural areas with agriculture as main livelihood. Energy consumption in rural areas constitutes about 87% of the country‟s total energy expenditure. The rural people mainly use the energy for different end uses. Cooking only accounts for 65% of the of the energy consumption whereas space heating, water boiling, agro processing and lighting are other applications for which the energy is required in rural areas. Renewable energies are essential contributors to the energy supply portfolio as they contribute to the world energy security, reducing dependence of fossil fuels resources and providing opportunities for reducing emissions of greenhouse gases. Total renewables supply experienced an annual growth of 2.3% over the last 33 years (IEA, 2006). Renewables are the third largest contributor to global electricity production. They accounted for 17.9% of production in 2004, after coal (39.8%) and natural gas (19.6%), but ahead of nuclear (15.7%) and oil (6.7%) and non renewable wastes. Almost 90% of electricity generated comes from hydropower plants while close to 6% comes combustible renewables and waste. Geothermal, solar and wind have now reached for 4.5% of generation (IEA, 2006). Renewable energy consumption will increase by 1.8% per year from over 1400Mtoe in 2003 to 2300Mtoe, a rise of more than 60%. In this scenario, the share of renewables in global energy consumption will remain largely unchanged Page | 28

at 14%. As developing countries like Nepal shift to modern forms of energy, dependencies upon traditional biomass will be reduced. Renewables will continue to increase their market shares in the power generation mix. Overall they will account for 20% of world electricity generation in 2030, up from 18% today. While heating and cooking will remain the principle use for renewables; mostly in developing countries where three quarters of renewables (especially traditional biomass) are consumed, the power sector will lead the increase in renewable energy consumption between2003 and 2030. its share of global renewable energy consumption is expected to rise from a quarter in 2003 to 38% by 2030. Non-hydro renewables in electricity generation will triple, from 2% in 2003 to 6% in 2030. Of non-hydro renewables:    

Wind power will see the biggest increase in market share. Biomass used for electricity generation will triple between now and 2030. Geothermal power will grow at the same rate as biomass. Solar, tidal and wave energy will make more substantial contributors towards the end of projection period.

A major hindrance to the future penetration of renewable energy is the intermittent nature of much of it (wind, solar, ocean, and hydropower). There is a little doubt that efficient and inexpensive energy storage technologies can play a significant role in overcoming this obstacle. With all these developments, Nepal alone cannot remain unaffected. The development of RETs is Nepal is even more prominent as can been seen from the consumption pattern and the consumer structure. Major portion of the consumers live in rural areas and most of the energy is used for basic purposes like cooking and lightening. Hence the viability of replacing traditional fuelwoods used currently for these purposes can be easily replaced with introducing new, clean and environment friendly RETs. A recent development in this field signifies and proves that this can be done in Nepal. A total number of 1588 MHPPs (Pico-hydro included) have been installed in different parts of country from 1962 to mid July 2005, generating 8827.5 kW of electrical energy (CADEC, (2005), pp-12). Till 2005 11905 households (about 130kW) have installed Solar PV Home System in 67 districts. Solar program of Energy Sector Assistance Program (ESAP) has succeeded in installing 58,131 systems with installed capacity of about 2 MW peak. Beside this there has been also 293 Solar Dryer used for the purpose of cooking or drying foods in 21 districts. Solar Dryer is used for drying up fruits or any agro products. There are 150,000 Improved Cooking Stove (ICS) installed in 32 mid hill districts benefiting 54731 households till July 2005 (AEPC, (2006). Till year 2005, 96129 people of 17478 households in 56 districts has benefited from biogas support program. there are about ten biogas companies and 152,373 Page | 29

biogas plants have been installed till July 2005. Considering the high temperature requirement for biogas generation and minimum number of livestock per household, about 640,000 biogas plants are the potential. Small credit fund has also installed 829 plants in 19 districts (Bajgain Sundar and Shakya Indira, (2005)). All these figures show that the future growth of RETs is inevitable.

4. 4.1

Institutions involved for the support of renewable energy Policies and Organization

The government‟s Five-year plans shape a great deal of the policy environment for development works. From the sixth five year plan (1980-1985) onwards, the Government of Nepal has supported the development and further dissemination of RETs. The government has then increasingly recognized the importance of RET development and has carried it since. The fifth five-year plan (1975-1980), for the first time, considered the role of microhydro plants in rural electrification. The goal of rural electrification according to the plan was to promote expansion of agriculture, commerce and small-scale industries. Under the guidance of the plan, the Small Hydropower Development Board was established in 1975, which played a crucial role in the electrification of rural hill areas. Under the Sixth Plan Period (1980-1985) ADB/N, instituted in 1981, the Rural Electrification Project provided financial as well as technical assistance to promote rural electrification through micro-hydropower plants. In 1984, HMG delicensed plants up to 100 kW to encourage private participation in rural electrification through micro-hydropower. The provision of subsidies for microhydropower in 1985 provided further encouragement. Under this provision, 75 % cost of electric components of MHPP was subsidized for remote districts and 50 % for the remaining districts and was channeled through ADB/N. since then, GON has been actively pursuing rural electrification through MH schemes. The Eight five-year plan is more specific. It gives more stress to private sector involvement for developing and promoting improved water mills and water turbines and generating both mechanical and electrical power to establish various rural industries. The development of the energy sector has been given special priority in the eighth five-year plan. The basic objectives of the energy plan concerning MHPP development are to maintain regional balance in the energy sector with hydropower by maximum utilization of indigenous energy resources, and to develop alternative and decentralized energy resources available in the country. Targets for MHPP were set at 5 MW for the period.

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4.1.1 Institutions involved in RET Sector The establishment of Alternative Energy Promotion Centre (AEPC) in 1997 as the government agency for the promotion of renewable energy technologies, including micro-hydro, led to a reformulation of the subsidy policy. Since 2000, the AEPC‟s Interim Rural Energy Fund (IREF), supported by Danish International Development Assistance (DANIDA) Energy Sector Assistance Programme (ESAP), has administered subsidy of micro-hydro and other RETs. Alternative Energy Promotion Center was formed in 1997 with the view to aid in the development of Alternative technologies. In addition to the AEPC‟s micro-hydro support programme, supported by ESAP/ DANIDA, the Rural Energy Development Programme (REDP) of the United Nations Development Programme (UNDP) formed in 1996 provides significant assistance to this sector. REDP supported micro-hydro projects obtain subsidy funds from AEPC‟s IREF. The REDP, which sees micro-hydro as an entry point to enhancing rural livelihoods, supports community projects in 15 districts. Major features of REDP are the involvement of local government in energy planning and social mobilization. The GoN’s Remote Area Development Committee (RADC) is another key player in the promotion of micro-hydro. Supporting community-owned plants with an aim of achieving regionally balanced growth, efforts are directed at remote areas. The introduction of new GON subsidy policy and delivery mechanism channeled through the AEPC increased the level of subsidy from 20-25 % of total investment to 50-75% of total investment on different types of RETs. Also subsidy is provided as a part of a promotion program that links financial support with a structured project cycle, productive end-use and quality requirements. GoN has created a number of ministries in order to implement various programs related to the micro-hydropower development. Ministry of Water Resources (MOWR) is the focal ministry with respect to power development. Policy and development programs relating to the proper utilization of water resources are formulated by this ministry. It is also responsible for promoting the private sector‟s participation in hydroelectric projects, and for enabling the optimum utilization of water resources. Ministry of Finance (MOF) looks after overall financial affairs of the government. Its scope of work includes matters relating to economic policy, allocation of financial resources, mobilization and coordination of foreign assistance, as well as raising internal loans. Water and Energy Commission Secretariat (WECS) is responsible for comprehensive planning in both the energy and water sectors. It is the planning Page | 31

and policy arm of the Water and Energy Commission (WEC), and is responsible for recommending appropriate policy and strategy to GON for the water and energy development sector. Beside above government agencies there are other semi-government agencies that are involved in the development of this sector. They are listed below. Agricultural Development Bank, Nepal (ADB/N) is a major development and financial institution specialization in the field of agriculture and rural credit. It has become a leading public enterprise for the promotion and dissemination of microhydro technology. However, it has withdrawn all-round support for MHPP and has limited its role to MH financing alone. Nepal Electricity Authority (NEA) is the only public utility responsible for the generation and distribution of electric power throughout the country. The Small Hydro Division (SHD) within NEA replaced the Small Hydro Development Board. After the restructuring of NEA, the SHD is placed under the Rural Electrification Directorate within two departments under it- the Rural Electrification Department and Small Hydropower Department. Constraints experienced by SHD are the long bureaucratic process of international tendering for plant equipment and accessories, non-availability of contractors, and the slow decision- making process. The Community Rural Electrification Department (CRED) is a newly established department which oversees rural electrification through community participation under the NEA Bye-Law 2061. The Tariff Fixation Commission (TFC) is an autonomous body under MoWR. It was created as per the Electricity Act 1992. It is responsible for fixing electricity tariff. Under the proposed Electricity Ordinance, this commission will be abolished. 4.1.2

Private Sector Institutions

Private sector institutions involved in electrification and RETs may, broadly, be classified as:  independent power producers (IPPs) 

utilities



distributing institutions



private companies (specialized in supplies/trainings and installation)

4.1.2.1 Independent Power Producers (IPPs) Presently, there are eight IPPs which generate and sell power to the NEA namely Annapurna Power Company P.Ltd., Arun Valley Hydro Power Development Co. P. Page | 32

Ltd., Bhotekoshi Power Company, Chilime Hydropower, Lamjung Electricity Development Company, National Hydropower Company, Rairang Hydro Power, and Sanima Hydropower Company Ltd. They own plants with a total installed capacity of 71.3 MW. In addition, there are three IPPs whose plants are under construction (NEA, 2005, p. 61). 4.1.2.2

Utilities

There are four companies in this category. Two of them, namely, Butwal Power Company Limited (BPC) and Himal Power Limited (HPL) generate power, sell to the NEA as well as distribute electricity on their own in rural areas. In addition, there are two companies, Salleri Chialsa Electricity Company (SCECO) and Khumbu Bijuli Company (KBC), which generate in isolated mode and distribute electricity on their own in rural areas. A brief description of companies engaged in generation and distribution of electricity follows. Butwal Power Company (BPC) Limited, established in February 1993, is one of the leading hydropower developers of Nepal. BPC, a public company with majority holding of the government, was privatized in 2003. It owns and operates the 12 MW Jhimruk Hydropower Plant and the 5.1 MW Andhi Khola Hydropower Plant. Besides supplying power to the national electricity grid, the Company has electrified more than 20,000 households through these power plants under its rural electrification program in Pyuthan, Syangja and Palpa districts. Himal Power Limited (HPL) owns and operates the 60 MW Khimti Hydropower Plant. The power generated from this project is sold to the NEA. HPL, under Jhankre Rural Electrification and Development Project, also owns a 500 kW Jhankre Power Plant, the power of which has been used to electrify about 2,000 rural households in Ramechhap and Dolakha districts since July 2000. The project is being managed by user cooperative - Khimti Rural Electric Cooperative Ltd. Salleri Chialsa Electricity Company (SCECO), a locally managed company, owns a 400 kW power plant located in Salleri, the district headquarters of Solukhumbu district. The power plant was built with support from the Swiss Government and was commissioned in 1993. It has served about 900 customers in 30 villages in the southern part of the district. Formed in May 1994, Khumbu Bijuli Company (KBC) is a locally managed company. KBC owns a 620 kW Thame Hydropower Plant located at Khumjung VDC in Solukhubu district. The plant was built in 1989-1994 with support from the Federal Government of Austria through Eco Himal, an Austrian NGO. The plant has electrified about 650 households in Namche Bazar and nearby villages.

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4.1.2.3

Distributing Institutions

In the recent years, a few community level institutions have evolved and have undertaken the responsibility of electricity distribution in their communities. Presently, there are 13 such institutions which have entered into agreement with CRED for the distribution of on-grid electricity. The Lamjung Electricity Users' Association (LEUA) was the first distributing institution established as a pilot project in 1997 under GON and NORDIC funding to manage the extended electricity distribution system of Lamjung district in west Nepal (BPC, p.19). The objective of the association is to manage electricity distribution system by forming a local association among the consumers for catering them better services at least cost and restricted system losses. It has a legal status of a non-governmental organization (NGO). Previously, LEUA was operational under the NEA's Small Hydro and Rural Electrification Department. Now, it has also come under the CRED. Beside these ICIMOD also has been actively involved in the development of this sector with providing both technical and other types of supports like trainings etc. others INGO‟s like United Mission to Nepal (UMN) has been actively involved in Nepal since 1954. It has established number of projects to support and implement the mini-micro hydro programm in Nepal through the establishment of the Butwal Technical Institute (BTI) in 1963, Developing and Consulting Services (DCS) in 1972, Butwal Engineering Works (BEW) in 1977, and Nepal Hydro Electric Company (NHE) in 1986. it has also established the Butwal Power Company (BPC) in 1966, Himal Hydro and General Construction Company in 1978 and Himal Power Limited (HPL) recently are key players in Nepal‟s power sector Other organizations like Swiss Federal Institute of Technology (SKAT), Intermediate Technology Development Group (ITDG), German Technical Cooperation (GTZ) etc has also been involved in this sector Different research institutes are also actively involved in this sector. Organizations like Research Centre for Applied Science and Technology (RECAST) established in 1977 as a research arm of Tribhuvan University has been involved in research on traditional water wheels, development of MPPU, prototype construction of improved water mills, and test-site development of micro-hydro. Royal Nepal Academy of Science and Technology (RONAST) is involved in the improvement and promotion of appropriate indigenous technologies. It has, so far, not played and crucial role in mini-and micro-hydro technology dissemination. Considering the growing market and popularity of MHPP many Private Companies are involved in this sector with different types of roles as manufacturers/installers, consulting agencies and training institutions. Page | 34

4.1.2.4

Private companies (specialized in supplies/trainings and installation)

Many companies have been involved in installation, supplies and training activates related to RETs like solar, biogas, microhydro and wind energy. So we can conclude that RETs has contributed in economic development, energy sector and environmentally also. RETs have been widely used as a means of reducing foreign exchange payments for imported energy and fuels. It is also a cheap source of daytime energy easily convertible to heat and mechanical power. The introduction of privately owned micro-hydro power in the rural areas has initiated the basis of entrepreneurship in those areas. Moreover it has created implications in overall development of remote people with employment and other income generating ways. RETs though small has contributed in the energy scenario of Nepal by providing access to those rural populations of nation, which are not touched by national grid. Other fact is that RETs has very low effect in the structure of landscape thus making it environmental friendly scheme than the large projects. It has introduced new technologies in remote areas. The positive attitude of government and active support from different agencies has remarked a significant development of this sector in a good and promising way and the future of micro-hydro in Nepal is very positive 4.2

Energy Policies of GON

Nepal has followed planned economic development model since the early fifties in the form of a year development plan. Recently the period of 9th five-year plan (1997-2002) is completed and the 10th five-year plan has been formulated. However the specific policy in the energy development was mentioned only from the fifth five year plan (1975-1980) which was probably triggered by the first world energy crisis in the early seventies. A brief summary of the energy policies and programs in the five-year plans by GON is presented below. Energy Policies in the 5th five-year plan (1975-1980): The main objectives in this plan are to reduce dependency on imported petroleum products and to promote the development of water resources and traditional fuel sources. Beside this it has also emphasized on capitalizing water resources along with the promotion of research and development activities on Alternative Energy sources. It also focused on encouraging effective investment on the exploration of small hydropower potential from private sectors through participatory approach. In the 6th five-year plan, policy of developing energy resources together with other factors was promoted. This plan emphasized on the development of both small and large hydro electric projects with two different objectives. The development of large projects was targeted to meet the long-term needs of the country and with the view of exporting the surplus power to augment the foreign exchange earnings. Page | 35

Similarly the small hydropower projects to be developed in appropriate places to supply power for hill irrigation and rural industries. In the 7th five-year plan (1985-1990) the main policies were execution of hydroelectric projects suited to medium and long term power needs along with the erection of integrated transmission systems and extension of rural electrification programs. Other objectives were to carry out research and analysis of the managerial and technical aspects of small hydro generation. The 8th five-year (1992-1997) plan postulated many targets for the development of energy sector. Promotion of energy self-reliance; encouragement of rural energy programs and energy conservation measures; maintenance of environment and safety measures for energy projects; participation of private sector etc were some of them. The 9th five-year plan (1997-2002) came with more strong objectives and policies. It focused the development of hydro electricity as to fulfill the power need of agriculture, industry, and other sectors by generating electricity economically, to export power, to co-ordinate rural electrification with rural economic activities for developing the economy and to reduce rural-urban power disporting for regional balance with consideration for environmental protection. More liberal policies were formulated and the generation was not only targeted for internal demand but also for export. Different policy like subsidy and other kinds were implemented in order to attract the private parties in the development of this sector. Rural electrification was also emphasized for the first time with reduction of the system losses along with major changes in the institutional structures existing. The 10th five-year plan and National Water Plan has set specific targets that are to be achieved by 2007, 2017 and 2027 (WECS, 2002). Arguing for rural electrification, the Tenth Plan (2002-07) states “Currently, the urban population is consuming most of the electricity. But majority of people live in the rural areas and most of the agro-industries, irrigation and cottage industries are also concentrated in rural areas. As the overall development of the nation premises on the development of the rural areas, balanced development can be achieved only through creating opportunity for equal consumption of power in the villages and the urban areas” (NPC, 2002, p. 288). The sole objective of the Tenth Plan is to alleviate poverty. Hence all sectoral goals are aimed at contributing towards the primary purpose of poverty alleviation. Accordingly, the Plan has emphasized rural electrification and set separate objectives, policies and programs of rural electrification. Two separate policies are in place having bearing on rural electrification – the Hydropower Development Policy 2001 and Renewable Energy Subsidy Policy 2000.

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The Hydropower Development Policy 2001 is a revision of the Hydropower Development Policy 1992. The objectives of 1992 policy were to (i) supply electricity as per the demands of the people in urban and rural areas through the development of water resources, (ii) enhance the development of hydropower to meet the energy needs required for the industrial development in the country, (iii) motivate private sector for the development of hydroelectric power, and (iv) render assistance in the conservation of environment by supplying clean energy. The policy for the first time opened space for private sector to invest on small and mini hydropower projects. It further encouraged domestic private sector to invest on up to 1,000 kW projects by relieving license requirement. The Policy emphasized on rural electrification for the development of agriculture and cottage industries in hill and the Terai regions. The 1992 policy was amended in 2001. The objectives of Hydropower Development Policy 2001 are to: (i) generate electricity at low cost by utilizing the water resources, (ii) extend reliable and qualitative electric service throughout the kingdom at a reasonable price, (iii) tie-up electrification with the economic activities, (iv) support to the development of rural economy by extending rural electrification, and (v) develop hydropower as an exportable commodity. However, looking at the consumption pattern of commercial sources of energy, the 1992 policy failed to replace other sources of commercial energies (e.g. coal and petroleum). The share of electricity consumption in total commercial consumption of energy has declined to 12 percent in 2001/02 from 13 percent in 1992/93 (MoF, 2005, Statistical Table, p. 77). The Policy has several provisions to gradually expand rural electrification. In addition to REF mentioned above, it has a provision of special investment for infrastructure development of rural electrification. There is also a provision of grant for micro-hydro projects to be disbursed through the Alternative Energy Promotion Centre. However, there is no provision of a central agency to oversee RE. The Renewable Energy Subsidy Policy 2000 has an objective among others 'to support rural electrification as well as gradually reduce the growing gap of electricity supply, consumption, etc. between rural and urban areas' (AEPC, 2000, p. 1). It has provisions to provide subsidy for installation of a range of renewable energy technologies including micro-hydro plants and solar home systems. Both the micro-hydro plants and solar home systems have been considered as alternative means to electrify rural areas. In line with the Subsidy Policy, an Interim Rural Energy Fund (IREF) has been created to provide subsidy to micro-hydro and solar home systems. IREF is managed by the Alternative Energy Promotion Center (AEPC). IREF will be converted into a permanent Rural Energy Fund. The Nepal Electricity Authority Act 1984 was put in place to establish and define operation of the Nepal Electricity Authority (NEA). The NEA‟s scope of work as described in the Act includes generation, transmission and distribution of electricity Page | 37

throughout the country. The Act has a provision (Clause 16) that the NEA should operate on commercial principle. Also, the provisions in the Act envisage that the NEA would run as autonomous corporate body with public participation. The Water Resources Act 1992 was enacted to conserve, manage, develop and use water resources of the country. It does not have any specific provision that is of significance to rural electrification. However, the Act has made a provision to register „Water Users‟ Association‟ as a corporate body which can work as rural electrification entity. The Electricity Act 1992 was put in place to develop electric power by regulating the survey, generation, transmission and distribution of electricity and to standardize and safeguard the electricity services. Although there is no specific reference to rural electrification, this Act has encouraged electrification of rural areas through establishment of isolated mini hydropower projects generating up to 1,000 kW. No license is required for a national or corporate bodies to generate transmit and distribute electricity in the said range. Income tax is exempted and the person or corporate body can fix electricity tariff on its own in less than 1,000 kW projects. Electricity Regulation 1993 complements Electricity Act 1992. The most comprehensive regulation designed so far to expedite rural electrification is the Nepal Electricity Authority Community Electricity Distribution ByeLaws 2003. The Bye-law has been formulated to promote public participation, to encourage community management and to attract private investment in the field of rural electrification. The Bye-law aims to promote technical and managerial capability of rural community in the field of electricity distribution through distributing institution. Presently, an Electricity Ordinance is under consideration by the government. As reported in the public media, the Ordinance has spelt out mechanisms for the development of electricity that includes generation, transmission and distribution of electricity. It has also attempted to simplify rules and regulations for companies involved in electricity distribution and expansion. The ordinance is said to have made a provision of the National Electricity Regulatory Commission (NERC). The Commission, as an umbrella organization, will create and enforce mechanisms for power development, prevent monopoly, develop a code of conduct for registered electricity generating companies, diversify the electricity market and suggest companies to maintain a sound accounting system. As the ordinance will annul the Tariff Fixation Commission 1993, the NERC, hence will fix the electricity tariff.

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5

Conclusion

Energy resources are classified in three major groups: traditional, non-traditional and alternative in Nepal. Non-traditional (or commercial) resources have replaced the traditional energy resources. Therefore, renewables falls under this group. There is a huge theoretical potential for hydropower, but the economically feasible potential is assessed at 42,000 MW or about 147 TWh (at an assumed capacity factor of 0.40). Total hydro capacity at the end of 2006 was 613 MW. A number of other, smaller hydro plants are in various stages of construction, completion. To increase per capita consumption, supply of power need to be increased. The market for electrical energy is growing day per day but considering the terrain and topology of the country and the population distribution, electrifying the rural areas has been the major issue since long time back. This problem is very much addressed with the aid of RETs which has been playing a significant role in fulfilling the energy requirements of the rural people and delivering the fruits of technology and economic benefits. Though the share of RETs to the total energy demand is negligible (less than 2%), considering the rural electrification the share is termed very considerable. Most of the rural areas have been electrified and hundreds of thousands of people has benefited from these technologies. To support the pace of its development many private companies like Butwal Power Company etc has played a significant role. According to the different reports and study conducted worldwide, renewables are substituting the traditional fuel types and same is the case with Nepal. The figures show that the trend of renewable energy consumption, development and investment is increasing each year in this sector. This signifies that the future of RETs is very bright and people are willing to use these resources than other types of energy resources. With the formulation of new policies and restoration of peace in the country and the availability of technical manpower will prove as an additional advantage in the development of this field. The rising price of petroleum products and the depletion of the forests will eventually lead to no option rather than development of renewable sources and hence will see the increment in consumption of renewable energy. So we can conclude that the demand of energy consumption in the country is rising with unavailability of traditional fuels have shift the consumption pattern to the renewables and hence the popularity of this source is even triggered by government policies and institutions involved along with the subsidy policies. The investment is increasing with the local skills developing in manufacturing; repair of these technologies will surely increase the growth of RETs.

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Shrestha, A. P. (1991). Hydropower in Nepal: Issues and concepts of Development. Kathmandu: Resource Nepal. Shrestha, R.B. (1989). Discussions: Small Hydro Department, Kathmandu: NEA. Warnock, J.B. (1989). “The Hydro Resources of Nepal.” Water Power and Dam Construction. U.K. WEC. (1998). The Benefits and Deficiencies of Energy Sector Liberalisation.Europe Case Studies. United Kingdom: World Energy Council . WEC. (1998). The Benefits and Deficiencies of Energy Sector Liberalisation.- Asia Pacific. Asia and Africa Case Studies. United Kingdom: World Energy Council . WEC. (1998). The Benefits and Deficiencies of Energy Sector Liberalization.North, Central and South America Case Studies. United Kingdom: World Energy Council. WEC. (1999). The International Journal on Hydropower & Dams. United Kingdom: World Energy Council. WEC. (nd). Delivering sustainability; Challenges and Opportunities for Energy Industry: World Energy Council. WECS. (1987). An Evaluation of Alternative Energy Technologies in Nepal. GON. Ministry of Water resources. Kathmandu: Water and Energy Commission Secretariat. WECS. (1987). Small Hydel Resources of Nepal. Report 4/2/280684/1/1. Seq.193. GON. Ministry of Water resources. Kathmandu: Water and Energy Commission Secretariat. WECS. (1995). Alternative Energy Technology: An Overview and Assesment, Supporting Document No. 3 Perspective Energy Plan. Kathmandu: Water and Energy Commission Secretariat. WECS. (1995). Energy Conservation and Demand Management: An Untapped Resources Supporting Document No. 6 Perspective Energy Plan. Kathmandu: Water and Energy Commission Secretariat. WECS. (1995). Energy Resources Base of Nepal, Supporting Document No. 2 Perspective Energy Plan. Kathmandu: Water and Energy Commission Secretariat. WECS. (1995). Institutional Arrangements: Energy Sector Supporting Document No. 10 Perspective Energy Plan. Kathmandu: Water and Energy Commission Secretariat. Page | 43

WECS. (1995). Socio-Economic (Gender) Issues in Energy Development Supporting Document No. 9 Perspective Energy Plan. Kathmandu: Water and Energy Commission Secretariat. WECS. (1999). Annual Report. Kathmandu: Water and Energy Commission Secretariat. WECS. (2000). Annual Report. Kathmandu: Water and Energy Commission Secretariat. WECS. (2001). Annual Report. Kathmandu: Water and Energy Commission Secretariat. WECS. (2001). WECS Bulletin. Vol. 11. No. 1. Kathmandu: Water and Energy Commission Secretariat . WECS. (2002). Water Resources Strategy Nepal. Kathmandu: Water and Energy Commission Secretariat . WECS. (2006). Energy Synopsis Report . GON. Ministry of Water resources. Kathmandu: Water and Energy Commission Secretariat. WECS. (n.d.). Demandside Management of Power Sector. Book No. 333.79. Kathmandu: Water and Electricity Commission Secretariat. Winrock International. (2006). Study on Institutional and Policy Aspects of Rural Electrification. Other related sites visited on Internet. http://www.cadecnetwork.np http://www.eia.doe.gov http://www.hpl.com.np http://www.ich.nu http://www.ioe.edu http://www.ippan.org http://www.microhydropower.net http://www.mof.gov.np

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http://www.mowr.gov.np http://www.nea.org.np http://www.redp.org.np http://www.saarcnet.org http://www.smec.com.au http://www.undp.org.np http://www.wecs.gov.np http://www.worldenergy.org

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