<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161152/636d1e8e9c7e80680e0af417jpeg.jpg" alt="" width="1100" height="608"/><figcaption></figcaption></figure>Household electricity consumption with the onset of winter, dedicated supply to industries and increase in electric vehicles is fuelling demand for hydropower, <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">reducing wastage</a>.This is why, despite having started exporting surplus electricity to India last month, the Nepal Electricity Authority (NEA) is now scrambling to meet a spike in domestic demand.Electricity demand is increasing in terms of both capacity (MW) and energy (units). On 13 December, the peak demand was 1,539MW, against 1,217 MW the same day last year. This difference of 322MW amounts to a 26.5% increase in peak demand. Also on 13 December, the <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">electricity consumption in Nepal</a> was 27.2 million units, a 28.65% increase from 21.1 million units consumed on the same day last year.“The 30% increase in peak demand is a significant achievement,” said NEA Executive Director Kulman Ghising. “At the current rate, power demand could reach 2,000MW by July next year.”The government’s priority has been to reduce the ‘spill’ of electricity from <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">hydropower stations</a> by increasing domestic consumption. It has focused on two areas: initiating policies to increase the use of electric appliances and providing industries with dedicated feeds. Over the last month, Ghising also visited several industrial areas to urge them to switch from diesel generators to electricity from the national grid.For this, the NEA has been working on the expansion and strengthening of transmission infrastructure as part of their short- and long-term plans. The NEA is also planning the construction of large capacity lines and substations for transmission and distribution by preemptively identifying possible places where electricity consumption may increase.The figures show that the current spike in demand is primarily due to <a href="https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/" target="_blank" rel="noopener noreferrer">the use of electric stoves</a>, air conditioners and other household appliances and <a href="https://www.nepalitimes.com/banner/fully-charged-and-ready-to-go/" target="_blank" rel="noopener noreferrer">electric vehicles</a> in Kathmandu, where the peak demand has increased from 293MW last year to 382MW at present. Another area with higher consumption is industries. NEA signed a deal earlier in October to supply 30MW to the Hongshi cement factory in Nawalparasi.Industries previously reported experiencing 8.8 hours of power outages a week, forcing most factories to use generators, which in turn <a href="https://www.nepalitimes.com/review/post-lockdown-comeback-for-nepals-industries/" target="_blank" rel="noopener noreferrer">added to nearly 5% of their monthly expenditure</a>. The government initiative to power the industries hence would be cost-effective to the industry while also reducing wastage.To meet the current demand, the electricity grid is being supplied with 540MW from NEA's hydropower stations, 529MW from NEA's subsidiaries, 425MW from private power producers  and 25MW imported from India at peak evening hours.And yet, nearly 10% of Nepal’s population lives without electricity, most of them in Bajhang, Dolpa, Bajura, Jumla and Mugu in western Nepal which are not connected to the national grid.Experts say it is more beneficial to utilise and sell surplus power inside the country than exporting it to India. Nepal’s private industries are paying up to Rs11 per unit in electrical bills against 4.33 per unit by India.

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Nepal electricity demand soars

<figure><img width="1198" height="1227" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13819c7e80680e0a9926jpeg.jpg" alt=""/><figcaption>Photo: BIKRAM RAI/ NEPALI TIMES ARCHIVES</figcaption></figure>Nepal could lose Rs142 billion a year in wasted surplus energy if the <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC)</a> project designed to upgrade the electricity grid and highways is not endorsed by Parliament.
Nepal is currently generating 2,000MW of <a href="https://www.nepalitimes.com/editorial/manpower-and-hydropower/" target="_blank" rel="noopener noreferrer">hydroelectricity</a> with an additional 2,500MW under construction. This figure will soar to 7,300MW by 2025 as per Nepal Electricity Authority (NEA) estimates.Presently, Nepal consumes 1,500MW of electricity during the peak season, which is increasing by 20% every year. At this rate, in the next four years, the peak demand will be at 2,600MW, which means there will be an excess of 4,700MW.  
Nepal can export this surplus power to India and there are already agreements in place to facilitate trade between the two countries, but the existing Dhalkebar-Muzaffarpur cross border <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">transmission line</a> can only handle 800MW each way. 
“If Nepal is unable to sell excess energy, we will be losing Rs142 billion every year. At a time when we are lagging in infrastructure, we shouldn’t stop the MCC from being approved,” says Dinesh Shrestha, chair of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce, Federation of Contractors’ Associations of Nepal, Independent Energy Producers’ Association and Nepal-US Chamber of Commerce and Industry have submitted a memorandum to Prime Minister Sher Bahadur Deuba urging the government to stop delaying <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">the five-year compact</a> and implement it soon. 
This is the private sector’s second memorandum to the government in a month. The group also states that some 7,000 Nepalis will be employed during the construction phase of the MCC, which also includes the upgrade of arterial highways to facilitate efficient transportation. The FNCCI memo comes just before the arrival in Kathmandu on Wednesday of US Assistant Secretary for South and Central Asian Affairs, Donald Lu during which he is expected to discuss the MCC ratification with Prime Minister Deuba and other party leaders.It is an indication of the importance the US attaches to the project that Deputy Assistant Secretary for South ans Central Asian Affairs Kelly Keiderling also arrives in Kathmandu on Thursday. Deuba met US President Joe Biden at the COP26 Glasgow summit two weeks ago, and revealed that he and Maoist leader Pushpa Kamal Dahal had written jointly to the US government saying the MCC would be ratified. But the project has become such a political hot potato in Nepal that Dahal quickly backtracked, clarifying that he had only said that it needed amendments before being passed. A large chunk of the US-aided $500 million grant project is set aside to build the Kathmandu-Hetauda-Butwal 400KVa transmission line which will distribute electricity from existing and new hydropower plants on the Budi Gandaki, Trisuli, Kali Gandaki, Marsyangdi, Kosi, and Tamakosi corridors, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.  
In fact, in anticipation of the MCC project being completed, the NEA <a href="https://www.nepalitimes.com/latest/india-nepal-sign-power-exchange-deal/" target="_blank" rel="noopener noreferrer">signed an agreement</a> with the state-run Power Grid Corporation of India (POWERGRID) for the Butwal-Gorakhpur cross border transmission line extension two months ago in September, ahead of MCC vice president <a href="https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/" target="_blank" rel="noopener noreferrer">Fatema Z Sumar's visit to Nepal</a>.
But the MCC, the biggest grant aid Nepal has ever received has become the victim of intense power struggle and political infighting within the country. It was first weaponised to unseat K P Oli and now <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatens to split the ruling coalition</a> led by Prime Minister Sher Bahadur Deuba. 
The project is seen by the critics as part of America’s Indo-Pacific Strategy to counter China’s Belt Road Initiative. The anti-MCC rhetoric has gained such momentum that the public is convinced it supersedes Nepal’s Constitution and is anti-national, forcing even the staunch supporters from speaking in its favour.
Adds FNCCI’s Dinesh Shrestha: “The MCC is crucial for Nepal’s energy sector and <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">is to our benefit</a>. Moreover, this is a grant, not a loan. Further delaying and cancelling the compact will <a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">tarnish Nepal’s image and credibility</a> in the world community.”
MCC or no MCC, one thing is for sure. Nepal must build transmission lines and upgrade its electricity grid one way or the other so as not to waste surplus energy it is set to generate in the near future. 
Alternatively, experts say, the government must work immediately to <a href="https://www.nepalitimes.com/editorial/good-cop-bad-cop/" target="_blank" rel="noopener noreferrer">electrify transport and cooking</a> for domestic consumption of surplus power and reduce its import bill on petroleum products and LPG.

The cost of no MCC

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12189c7e80680e0a98bajpeg.jpg" alt="" width="664" height="450"/>Nepal Rastra Bank’s report last month was badly timed — it was a bad idea to sound a warning that Nepal is going belly up just as the country was grinding to a halt for a month of Dasain-Tihar-Chhat festivals.The indicators were ominous: Nepal’s foreign currency reserves fell to $11.1 billion in September, much below the figure for last year and only enough to pay for 8 months of imports. There has been a 76% increase in the import bill to a record Rs352 billion last fiscal year — despite a pandemic slowdown.In the first two months of this fiscal year, <a href="https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHKGPEf-eEDtwjn0f_p_HMzrqYQGw">overseas remittances that had held steady despite the pandemic</a> went down by 6.3% to Rs155 billion.One of the holy days of Tihar last week was dedicated to Goddess Laxmi, and many prayed for individual wealth and prosperity. We should have been praying for the country’s economic survival.Just those two figures for falling remittances and rising imports should have been enough to sound the emergency alarm. But fatalism is so steeped in Nepal’s governance culture that we hope things will sort themselves out.After all, if things go really wrong, Pashupatinath will come to the rescue. But the Lord Protector of Nepal must be shaking his head at the disarray of the state.We have come to expect lack of accountability in self-dealing politicians and elected officials, but the judiciary used to be relatively untainted and independent.The violation of the principle of separation of powers by <a href="https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNG-raVzHQQBlpr5oUCza97BMC7wkA">Chief Justice Cholendra SJB Rana</a> and the mutiny in the Supreme Court has dragged the judiciary also into dysfunction.With the court system paralysed, Rana has been reported to be looking for a ‘graceful exit’, and apparently proposed a leave of absence until his term expires. The <a href="https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHWRzSQmjSbl2C65i3KvLsEqN0uUA">top leadership</a> of the main parties have been silent about the fate of Chief Justice Rana, who after all was instrumental in overturning K P Oli’s dissolution of the Lower House which <a href="https://www.nepalitimes.com/here-now/nepal-court-orders-deuba-to-succeed-oli/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepal-court-orders-deuba-to-succeed-oli/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHI-krjS3d3YX690askSFTe2LB0vA">put Deuba in office</a> on 14 July.They also have all kinds of pending cases in the Supreme Court, and do not want antagonise a Chief Justice in case he survives this crisis. Rana has reportedly used the holidays for intense political lobbying through emissaries. That would likely entail a quid pro quo over not starting an impeachment process in Parliament in return for future favours.Whether Rana remains chief justice or is forced to step down is mixed up with politics — after all it was the failure of politicians to sort out their power struggles in Parliament that allowed the judiciary to have such a magnified role in who gets to be in government and who doesn’t. There is so much corruption and vested interest in the political nominations to the Supreme Court that just removing Chief Justice Rana will not stem the rot.Besides, the real emergency Nepal faces today is not about who succeeds Rana or if the coalition remains intact till elections, but the fate of the economy.Remittances pay for imports, and inflows are down and imports are up. Hard currency reserves to finance <a href="https://www.nepalitimes.com/editorial/blood-sweat-tears/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/blood-sweat-tears/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNH52fe2VOfxxaDWmxbqr8rkJcg-Hg">Nepal’s imports, mainly of petroleum</a>, food and other items are falling. Exports did go up, but the trade deficit rose to Rs270 billion in the past two months.Besides, Nepal’s main item of export is processed palm and soya oil that depend on massive imports of raw material. A <a href="https://www.nepalitimes.com/latest/nepal-less-and-less-able-to-feed-itself/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-less-and-less-able-to-feed-itself/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHt2gsBj5b0itg1RhxrL9unH8Y3-Q">growing asymmetry between imports and exports</a> means the balance of payments is now Rs83.4 billion — double what it was in July.Prime Minister Sher Bahadur Deuba pledged at COP26 to reduce Nepal’s carbon footprint, and Energy Minister Pampha Bhusal is pushing for a transition to electric transport. They seem to have finally realised that having a petroleum import bill more than all exports combined is not sustainable.Destructive post-monsoon rains will reduce rice harvests by 20%, which means increased food import. What will we use our remaining foreign exchange reserves for: to buy food or fuel? It might to be an either/or.There does not seem to be a sense of urgency about this emergency in the Finance Ministry. It must act immediately to increase taxes on luxury items, encourage local agriculture production and invest heavily in infrastructure to create local jobs.The economic crisis is a result of political neglect and disarray. Trouble is: we cannot wait for the politics to sort itself out to fix the economy this time.

Urgency about Nepal’s economic emergency

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3b99c7e80680e09666ejpeg.jpg" alt=""/><figcaption>Reservoir pond of the Pharping hydropower project 12 km south of Kathmandu Valley. Photo: ASMIT RAJBHANDARI</figcaption></figure>It was 6:30pm on 22 May 1911, and the sun had just set in Kathmandu when King Prithvi Bir Bikram Shah arrived at Tundikhel to turn on a switch to light Nepal’s first electric lamp.Nepal was the second country in Asia to install a hydroelectric power plant, commissioned by Prime Minister Chandra Shumsher Rana, who named the project after himself: Chandra Jyoti. Chandra Shumshere had visited England eight years previously, and this was part of his grand plan to modernise Nepal with technology.Besides electricity, he established Nepal’s first college, built metal suspension bridges all over the country, <a href="https://www.nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban/" target="_blank" rel="noopener noreferrer">commissioned a cargo ropeway from Kathmandu to the Tarai</a>. He sent architects to Europe, and engineers and horticulturists for training to Japan. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3bc9c7e80680e09666fjpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3bf9c7e80680e096670jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c39c7e80680e096671jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c69c7e80680e096672jpeg.jpg" alt=""><figcaption> </figcaption></figure>Construction of the 500kW plant in Pharping 12km south of Kathmandu began in 1907 with British engineers, and took four years to complete. All the turbines and penstock pipes were shipped to Calcutta, brought overland to Bhimphedi and then had to be carried on porter back over the mountains to the site.Built to light <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">the palaces of the Ranas</a>, homes of courtiers and some street lights, the power station stored water from two springs, in Satmule and Sesh Narayan, in a circular reservoir. The Ranas first tested the electricity in a house in Khokana before connecting the wires tot their palaces, to ensure it was safe.Under supervision of the prime minister’s clan, the power plant was built by Tilkikram and Bakhat Bahadur from the Nepal Army, the main engineer for the power house was Kishore Narsingh Rana. Two engineers from England, ‘Barnau Puwante’ and a certain ‘Mr Linzale’, were also involved in the construction. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c99c7e80680e096673jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3cc9c7e80680e096674jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3cf9c7e80680e096675jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d29c7e80680e096676jpeg.jpg" alt=""><figcaption> </figcaption></figure>In 1911, it had been only three decades since the world’s first hydropower plant had been installed on the Fox River in Wisconsin in 1882, and a year after China built its first hydropower plant in 1912 in Yunnan province.Despite this early start, Nepal got around to setting up its second hydropower project only 28 years later, a 640kW plant in Sundarijal in 1939. For a country with such a vast potential for hydropower, it would take Nepal another half-century to produce just 1MW of electricity.Since 1911 when Pharping was built, Nepal has managed to produce only 1,400MW of power from its rivers, not even 2% of its total potential. Since most of the plants are of the run-of-the-river type, electricity production fluctuates with water level on rivers. This spring, due to a long winter drought, for instance, Nepal is importing nearly half its peak hour demand <a href="https://www.nepalitimes.com/from-the-nepali-press/more-than-half-of-nepals-electricity-imported-from-india/" target="_blank" rel="noopener noreferrer">from thermal power plants India</a>.Sadly, the history of Nepal’s oldest hydropower plant has now been almost forgotten. Although the government declared the power plant a ‘living heritage’ site in 1911, not much has been done to preserve the area. The power plant could be brought back into running condition, even as just a demonstration unit. <figure><img width="3000" height="2000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d59c7e80680e096677jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d99c7e80680e096678jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3dc9c7e80680e096679jpeg.jpg" alt=""><figcaption> </figcaption></figure>The power house, the royal guest house and other buildings here are part of Nepal’s heritage, but are crumbling. Two 250kw generators have great historical significance, but are not properly preserved, metal pipes more than 100 years old lie rusting near the <a href="https://archive.nepalitimes.com/regular-columns/Comment/storing-water-reservoir-Nepal,1042" target="_blank" rel="noopener noreferrer">reservoir</a>.For most of its functioning life, Pharping generated power for only three hours every night. Later, even when the reservoir started being used to supply drinking water to Lalitpur, it was generating electricity for one hour every evening.There is a masterplan to preserve Pharping as a Live Energy Museum with the old building renovated to house a centre for hydropower development, as well as research into <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener noreferrer">renewable energy sources like solar and wind</a>.None of that has taken off, but 22 May is still marked as National Energy Day to pay homage to Nepal’s hydropower potential.This story was first published on <a href="https://www.thethirdpole.net/en/" data-saferedirecturl="https://www.google.com/url?q=https://www.thethirdpole.net/en/&amp;source=gmail&amp;ust=1617686418226000&amp;usg=AFQjCNEYgYjTYeKkemPKVPByKGEFPQOeiQ">The Third Pole</a>.

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Nepal’s 1st hydroelectric plant is a museum piece

<figure><img width="584" height="391" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba8669c7e80680e0737dcjpeg.jpg" alt=""/><figcaption></figcaption></figure>The Managing Director of the Nepal Electricity Authority (NEA) Kulman Ghising, who is largely credited with ending Nepal’s ruinous daily power cuts that lasted more than a decade, is likely to get his four-year term extended.Ghising was due to step down on 14 September, but after widespread public outrage on social and mainstream media, the Energy Ministry has prepared an endorsement for another four-year term.Sources said Energy Minister Barsha Man Pun has proposed that Ghising be allowed to continue to Prime Minister Oli as well as brought it up with NCP co-chair Pushpa Kamal Dahal. “The prime minister is ready to extend Kulman Ghising’s term,” a source at the Energy Ministry said on Sunday. “But the has said Ghising will henceforth have to behave like he is a part of the government, and not an independent entity.”Read also: <a href="https://www.nepalitimes.com/here-now/kulman-ghisings-tenure-at-nea-in-doubt/" target="_blank" rel="noopener noreferrer">Kulman Ghising's tenure in doubt</a>, Ramesh KumarIf true, the remark appears to reflect the prime minister’s unease with Ghising’s popularity for having ended the crippling 12-18 hour power cuts for which his predecessors at the NEA are held responsible.  <figure><img width="1500" height="908" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba8689c7e80680e0737ddjpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="930" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba86b9c7e80680e0737dejpeg.jpg" alt=""><figcaption> </figcaption></figure>Earlier this week Finance Minister Yubaraj Khatiwada had publicly warned Ghising: “He was not appointed by social media, he was appointed by the government, and the decision on extending his tenure is the responsibility of the government.”Ghising himself had issued a statement this week after rumours spread that his term had been extended. He said he did not deserve all the credit for ending power cuts, and it was a team effort of the government.Pushpa Kamal Dahal reportedly told Pun that it would not reflect well on the government if Ghising was replaced when he is so popular in the public eye.The Energy Ministry sources said a formal letter about Ghsiing extension was ready and would be forwarded to the Cabinet for approval. <figure><img width="1500" height="1056" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba86e9c7e80680e0737dfjpeg.jpg" alt=""><figcaption> </figcaption></figure><a href="http://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409&amp;source=gmail&amp;ust=1598882705470000&amp;usg=AFQjCNGY4avowF3s188UAACqQqpWBgIJxw">Ghising is an electrical engineer</a> who systematically reduced pilferage, and <a href="https://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408&amp;source=gmail&amp;ust=1598882705470000&amp;usg=AFQjCNHAU2CzfGU9I4EEzV9HIV8F-I7btA">cut off 24-hour dedicated feeds</a> through which his predecessors had been providing businesses low tariff electricity in return for kickbacks. At the height of the power cuts in the winter of 2016 after the earthquake, Nepalis were getting only six hours of electricity a day. Collusion between NEA officials and industrialists allowed half the 750MW electricity generated to be diverted to businesses.   After he took over, Ghising expedited hydropower projects, removed delays in the construction of transmission lines, and imported power from India to meet winter shortfall. NEA was also able to reduce pilferage from 25% to 15%, saving the utility Rs7 billion a year. Imports from India have declined steadily from 35% of total supply for the past five years to 22% this year (see charts, above).  From 2012 to 2016, when Nepalis faced the longest periods of load-shedding, the NEA cumulatively lost Rs25 billion. The greatest annual loss of nearly Rs9 billion was in fiscal year 2015-2016. After Ghising took over, NEA’s profits soared to Rs1.5 billion, and is now set to cross Rs11 billion this fiscal year.

Kulman Ghising to stay on

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101120/636b71769c7e80680e0600d1jpeg.jpg" alt="" width="4032" height="3024"/><figcaption>Photos: KUNDA DIXIT</figcaption></figure>The increased frequency of climate-induced weather extremes and public opinion pressure are forcing even major fossil fuel exporting countries in West Asia to make a big push towards renewable energy.In January alone, the United Arab Emirates (UAE) hosted <a href="https://twitter.com/gulf_intel" target="_blank" rel="noopener">the Gulf Intelligence</a> <a href="https://www.landmark.solutions/Portals/0/LMSDocs/2020-UAE-Energy-Forum.pdf" target="_blank" rel="noopener">UAE Energy Forum</a>, the <a href="https://www.worldfutureenergysummit.com/#/">World Future Energy Summit</a>, the <a href="https://10times.com/abu-dhabi-sustainability-week">Abu Dhabi Sustainability Week</a> and a <a href="https://sdg.iisd.org/events/future-sustainability-summit/">Future Sustainability Summit</a>. February onwards, Dubai will have the <a href="https://10times.com/rseic-dubai">International Conference on Renewable and Sustainable Energy</a>, <a href="https://10times.com/icgeet-dubai">International Conference on Green Energy and Environmental Technology, </a>with a Green Week and a Congress on Biofuels and Bioenergy later this year.The UAE is the world’s 7th largest exporter of crude oil, with 5.5% of market share, but is promoting itself as a low-carbon country. <a href="https://visitabudhabi.ae/en/see.and.do/attractions.and.landmarks/iconic.landmarks/masdar.city.aspx">Masdar City</a>, a model for sustainable urban living is coming up outside Abu Dhabi which is designed by <a href="https://en.wikipedia.org/wiki/Foster_and_Partners">Foster and Partners</a> architects.A 10MW solar farm outside the city provides solar power for the office buildings, which includes the regional headquarters of Siemens and <a href="https://www.irena.org/">IRENA (the International Renewable Energy Agency)</a>. Oil industry conclaves that used to focus on global price trends, prospecting and new oil fields now have plenary panels on solar and wind.https://www.youtube.com/watch?v=dJdWiUWkDvk&amp;feature=youtu.be<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101120/636b71799c7e80680e0600d2jpeg.jpg" alt="" width="4032" height="3024">“We are serious about energy security, and we have a strategy for an energy mix that includes renewables,” said Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry at the opening of the UAE Energy Forum earlier this month. That decarbonisation plan would mean the country by 2050 will be producing 38% of its energy from gas, 44% from renewables, 6% from nuclear and the use of clean coal will drop to 12%.In the rest of the oil-rich Gulf region, petroleum-based energy will drop from the current 91% to 41%, and renewables will go up from 9% today to 59% .Of the UAE’s 10 million population, 90% are expatriates and the country’s per capita carbon footprint is 23 tons per year. Although a low carbon trajectory would reduce total emissions, the UAE will remain a major exporter of fossil fuels into the future.Even so, the writing was on the wall in Abu Dhabi throughout January – conference delegates felt there is no option but to move from oil to more a more efficient fossil fuel like gas, and promote utility scale solar and wind.Even oil industry executives called for a green approach. Raoul Restucci, Managing Director of Petroleum Development Oman says: “Rising energy needs … climate change pressures and technological innovation mean that national oil companies must gravitate towards renewables for longer-term competitiveness and sustainability.”This year, Oman is commissioning a 100MW solar farm. Saudi Arabia is turning into ‘Solar Arabia’ by integrating Concentrated Solar Power (CSP) with its existing thermal plants to generate nearly 2GW. It is adding 300MW solar photovoltaic and a 400MW wind project, and is thinking big: generate 200GW of solar power by 2030.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101120/636b717d9c7e80680e0600d3jpeg.jpg" alt="" width="4032" height="3024">The UAE itself is aiming to cut CO2 emissions by 70% with Dubai installing the largest single-site solar park in the world to produce 1,000MW, which will be upgraded to 5,000MW in the next ten years. Another CSP plant will generate electricity 700MW even after dark with molten salt storage. Elsewhere, solar plants balance the fluctuation in generation by pumping water to hydropower dams, releasing the water through turbines at night.“However much we shift to renewables from transportation or electricity, we will still have to rely on oil and gas because we have to balance the baseload at night,” explains Jan Zschommler of the <a href="https://www.dnvgl.com/about/index.html">DNV GL</a>, the Norway-based sustainability consultant group.Projections show that although oil will supply 17% of the energy around the world in 2050, petroleum gas will be the primary energy source from the mid-2020s and in the next 20 years there will be a shift to non-fossil biogas.The cost of solar photovoltaic panels have dropped by more than 90% in the past ten years, and the price of lithium ion batteries have dropped by 80% and onshore wind turbines by 75% in the same period. By 2025, it will be cheaper to build and run electric cars than a petrol vehicle.However, even if half of all the cars in the world are electric, the demand of oil and gas will grow into the near future. Says Nobuo Tanaka of the Sasakawa Peace Foundation: “Peak oil will not happen before 2040 because even if light vehicles go electric there will be increased demand from aviation, ships and trucks as well as the petrochemical industry. That may be good news for the Middle East, but it bad news for the planet.”

Kunda Dixit

Oil-rich Gulf turns to renewable energy

https://www.youtube.com/watch?v=E61i3SgIt4o&amp;feature=youtu.beNepal’s future may not be in hydropower, as most assume, but actually in the dung heap. A new industrial-scale biogas plant near Pokhara has proved that livestock and farm waste producing flammable methane gas can replace imported LPG and chemical fertiliser.Over the past 30 years, Nepal has become a world leader in spreading locally-designed household biogas digesters. There are now 300,000 of them, helping reduce deforestation, improving people’s health and lifting women out of drudgery and poverty.Now, a company in Pokhara has enlarged household digesters into an industrial scale plant that uses climate-friendly technology that could ultimately be scaled  nationwide to reduce Nepal’s balance of trade gap.Read also:<a href="http://archive.nepalitimes.com/news.php?id=13968#.Xg2OjVUzbIU">Father of Nepal’s gobar gas industry</a>, David McConkey<a href="http://archive.nepalitimes.com/article/nation/muster-energy-face-future,3061">Mustering up energy to face the future</a>, Om Astha RaiKushal Gurung’s grandfather was in the British Army, and he also applied for recruitment but failed the eyesight test. So, he set up Gandaki Urja in Pokhara that works with wind, solar and hydropower, but he believes Nepal’s best option for sustainable growth lies in energy from waste.“Nepal must abandon fossil fuels, but even among renewable energy sources biogas has a three-fold advantage. It reduces greenhouse gas emissions, and is therefore climate friendly. It allows us to manage raw waste. And it can slash our import bill for LPG and chemical fertiliser,” says Gurung. “It is a win-win-win.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101116/636b6ff39c7e80680e060050jpeg.jpg" alt="" width="1500" height="1125"/>A tipper truck has just arrived from Gorkha at Gandaki Urja’s biogas plant at Kotre near Pokhara, which with its dome digester looks like a nuclear reactor. The truck tilts its container to empty 5 tons of smelly poultry waste into a pit where rotting vegetables and cow dung from a farm in Syangja are all being mixed before being fed into the 4,000 cubic meter digester that is kept inflated.In the absence of oxygen, bacteria already in the cow dung go to work to break down the waste into methane, carbon dioxide and hydrogen sulphide. The impurities are removed by filters to produce 200 cylinders of bio-CNG a day which are sold to big hotels and restaurants in Pokhara.Read also:<a href="https://www.nepalitimes.com/opinion/no-smoke-without-fire/">No smoke without fire</a>, Ajaya Dixit<a href="http://archive.nepalitimes.com/article/nation/No-alternative,266">No alternative to alternative energy</a>, Bhrikuti RaiCustomers pay a deposit for the cylinders and pressure regulators, and usually use up about two cylinders a day. The cost per kg for the bio-Compressed Natural Gas (bio-CNG) is the same as the state subsidised Liquified Petroleum Gas (LPG). However, customers prefer the biogas because it saves them up to 30% cost because it has higher calorific value than LPG, and there is no residue that goes waste.“So far, the customers are satisfied, and we see demand growing in the future as word spreads,” says Ashim Kayastha, Director of Gandaki Urja.Half the plant’s revenue comes from bio-CNG and the other half from the effluent which is dried and sold as organic fertiliser. The plant can produce up to 11,000 tons of fertiliser a year and is sold to surrounding farms.The future of bio-CNG depends on scaling up the technology since any municipality generating more than 40 tons of biodegradable waste per day could have its own biogas plant. Nepal imports 500,000 tons of chemical fertiliser a year, and if each of 100 municipalities produced 5,000 tons of organic fertiliser Nepal could slash its import bill.Read also:<a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/">An energy windfall for Nepal?</a>, Kushal Gurung<a href="https://www.nepalitimes.com/here-now/nepal-turns-to-solar-and-batteries-to-meet-peak-demand/">Nepal turns to solar and batteries to meet peak demand,</a> Kunda Dixit<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101116/636b6ff69c7e80680e060051jpeg.jpg" alt="" width="1500" height="1124">This could also significantly reduce the country’s annual import of Rs33 billion worth of LPG from India which grew four-fold in the past 10 years, making up 2.5% of Nepal’s total import bill. But to scale up, industrial biogas needs the same government incentives as hydro, solar and wind power.At the moment hydropower investors enjoy a 100% corporate tax holiday for 10 years, and 50% for the next five years. There is only 1% tax on imports of equipment for solar, wind and hydropower, there is no such provision for the equipment for industrial scale biogas. Instead, there is a tax on interest, and also VAT on bio-CNG.“The government should look at this not only as an energy project, but at its multifaceted benefits,” says Kushal Gurung of Gandaki Urja. “There is a waste-to-energy and fertiliser angle, too. If we want to make Nepal fully organic in the next ten years, projects like these need to be prioritised.”Gandaki Urja got a boost from an unlikely source, Business Oxygen (BO2) in Kathmandu which helps entrepreneurs running Small and Medium Enterprises (SMEs) to scale up by injecting equity and providing technical assistance.Read also:<a href="https://archive.nepalitimes.com/article/nation/wind-energy-for-electricity-in-nepal,1997">Putting wind in the map,</a> Kushal Gurung<a href="https://www.nepalitimes.com/opinion/climate-risk-to-hydropower-investment/">Climate risk to hydropower investment</a>, Ajaya DixitSays Siddhant Pandey of BO2: “We are always on the lookout for climate investments, and we realised that bio-CNG would be an incredible adaptive resilience investment. It would displace imports of LPG and fertiliser. It was going to be clean, no carbon footprint, and it made business sense because it met our internal return on investment expectation.”The challenges are ensuring reliable sources of raw material and building knowhow for the technology within Nepal.Says Pandey: “The Pokhara plant is a drop in the ocean, it can abe replicated in all 7 provinces. We know it is scalable, and it depends how proactive provincial governments will be.”

This is bullshit

https://www.youtube.com/watch?v=C-JBl5KtybQ&amp;t=32sAshim Pandey, 30, used to be fascinated with motorcycles while growing up in Kathmandu. He wondered why Nepal could not make its own two-wheelers. Then, after working on his master's degree from Netherland's Delft University of Technology and working at the automobile company Donkervoort, he did not just narrow his vision to designing an <a href="https://www.nepalitimes.com/here-now/more-e-scooties-for-cleaner-kathmandu-air/" target="_blank" rel="noopener">electric motorcycle</a>, but also assembling it in Nepal.He returned to Nepal in 2017, and set up <a href="https://www.yatrimotorcycles.com/" target="_blank" rel="noopener">Yatri Motorcyles and ‘Project Zero’</a> – for zero carbon emitted by a battery-powered bike. The prototype bike was launched last week by its seven-member team in Kathmandu."In Holland, I learnt how to manufacture cars," recalls Pandey. “Here we design the parts, and order them from our manufacturing partners in North America, China, India and other European countries.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a671a9c7e80680e0599bejpeg.jpg" alt="" width="1050" height="701"/><figcaption>Photos: MANISH POUDEL</figcaption></figure>Pandey designed the chassis of the motorcycle, which looks boxier than gasoline bikes, but has a futuristic silhouette. Mechanical engineer Ashesh Shrestha planned the bike’s tests, and system engineer Sulabh Shrestha designed the embedded software. Computer Science graduate Sarthak Sharma is an application developer, and electronic engineer Krishna Shrestha designed the overall architecture. Batsal Pandey heads business development.Industrial designer Kanisha Suwal designed the motorcycle, based on a Café Racer bike, and came up with a model that looks like a racing bike. "It is trendy, but also convenient and versatile design for users," says Suwal.Yatri motorcycles is using lighter materials like carbon fibre for the mainframe than petroleum bikes to offset the weight of the lithium batteries. They also make the bike stronger and lighter, but alas, also little more expensive.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a671d9c7e80680e0599bfjpeg.jpg" alt="" width="1050" height="701">The battery array can be fully charged in about two hours, and will then run for 230 km, which will cost only Rs70 worth of electricity. A similar petrol bike would cost Rs700 in fuel to cover that distance.Pandey hopes that the world-class design and finish of the machines will help remove the negative image customers have of Nepali products. Safety is another primary concern, and the machines will be tested according to Final Element Analysis before they hit the market, and are expected to last ten years."We have kept safety, sensitivity, and possible accidents in mind while designing the motorcycle, and want the bikes to be as reliable as possible, riders will not have to compromise on anything," says Pandey.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a671f9c7e80680e0599c0jpeg.jpg" alt="" width="1050" height="701">In 2018, Yatri motorcycles conducted a survey in Nepal's major cities about transportation problems. Most had ticked <a href="https://www.nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking/" target="_blank" rel="noopener">'pollution'</a>, 'traffic jams' and ‘cost of fuel’ as major concerns. That convinced Pandey that the future for two-wheelers was electric. Replacing even a fraction of the<a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener"> 800,000 motorcyles in Kathmandu</a> would reduce carbon monoxide and other pollutants from the air, as well as lessen the import of petrol.However, it is not all easy going in Nepal, Pandey says. There are obstacles every step of the way. For example, although <a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">electric vehicles in Nepal</a> are only taxed up to 10%, the components that Yatri imports for its bikes are categorised as spare parts and taxed at 30%. There is also minimal government support and incentives.However, it is when the going gets tough that the tough get going, and Pandey and his team want to set up an assembly line ans ramp up the production volume as soon as the prototype proves itself in tests on Nepal’s roads.

Designed and made in Nepal

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a964a9c7e80680e05dc5cjpeg.jpg" alt="" width="1500" height="1000"/>Nepal has the <a href="https://www.nepalitimes.com/opinion/can-nepal-be-the-powerhouse-of-asia/">fifth highest hydropower potential</a> in the world. Besides electricity, which can be used for peak energy supply, hydropower <a href="https://archive.nepalitimes.com/article/nation/reservoirs-of-suspicion/hydropower-geopolitics%20,3991">reservoirs</a> can also play a role in regulating water in rivers, flood control and irrigation.With federalism, Nepal has the potential to <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Power-for-Nepal-review,2884">decentralise hydropower</a> along with political power. All seven provinces, except Province 2 in the Tarai, have enormous capacity to develop hydropower to generate downstream benefits, such as increasing agriculture output, boosting tourism and generating employment.The government’s current budget includes a provision to develop one large hydropower project in each province. Prioritising water value first and peak energy second, Nepal can double its megawatt potential by maximising storage and daily peaking of run-of-river projects, while regulating river flow.Read also: <a href="https://www.nepalitimes.com/editorial/making-nepal-powerful/" target="_blank" rel="noopener">Making Nepal powerful</a>, EditorialAll this would allow 5.4 million households across Nepal to gradually <a href="https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/">replace imported cooking gas</a> and traditional firewood with cheaper electricity, reducing Nepal’s <a href="http://archive.nepalitimes.com/blogs/thebrief/2012/08/14/lost-in-priority/">trade deficit</a> and <a href="http://archive.nepalitimes.com/news.php?id=19406#.XdKA2dIza71">improving health by eliminating indoor pollution</a> from open kitchen fires.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a964d9c7e80680e05dc5djpeg.jpg" alt="" width="640" height="281"><figcaption> </figcaption></figure>If each family consumes 1KW of energy and if 3 million families switch from cooking gas and firewood, we will need 3,000MW in the morning and evening peak hours, which can be provided by new mega-projects designed to generate 15,000GWh. Of course, the distribution system would need to be improved and <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">demand side reforms</a> have to be in place.The market value of the electricity generated could reach Rs180 billion, which would replace the import of Rs100 billion worth of cooking gas, Rs20 billion in transportation and petroleum products, and Rs50 billion worth of electricity for industries. With millions of people using electricity in the kitchen, indoor air would be healthier.Read also: <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener">An energy windfall for Nepal?</a>, Kushal GurungThe main problem for the provinces today is that they do not have this supply, which is impeding industrial development and job creation. Developing hydropower will replace high-value raw materials and energy imports, and allow gross value addition compared to investment in other sectors.Income from selling the energy could provide the provinces with the resources to fund their own development projects. Initially, identifying and developing 500MW projects in each of the six provinces would generate a total of 3,000MW. The Nepal Electricity Authority’s current electricity rate of Rs12/unit would provide each province Rs30 billion in gross income — a total of Rs180 billion that could increase GDP by 10%.This plan would need the central and provincial governments to work closely together, with Kathmandu providing the financial guarantee and licenses for the provincial governments to develop projects.Cost of financing is a major component of the outlay in hydropower. Domestic banks loans at 13% interest would cut into profits, so projects would need international financing at 1-2% for 25 years. The Non-Resident Nepali Association could be the bridge to connect Nepal with financial assistance schemes like the Chinese Government’s BRI, the US Millennium Challenge Corporation, and others.Nepal could also seek financial assistance from the Export-Import (EXIM) Bank of China, Asian Infrastructure Investment Bank (AIIB), Exim INDIA Bank, Japan International Cooperation Agency (JICA), Department for International Development (DFID), World Bank Group, Asian Development Bank (ADB), Export-Import Bank of Korea and others. Financing hydropower development of 5,000MW would require $12 billion in soft credit, to be paid back in 30 years, and earnings from these projects can easily sustain provincial development expenses.The Nepal Government’s 6 projects for 6 provinces would take 6 years to come into production after necessary preparations, such as a study report, environmental impact assessment, land acquisition and lease. A cabinet decision is all it would take to fast track the process, and construction could begin by the second year.  <a href="http://archive.nepalitimes.com/news.php?id=18195#.XdJ_UtIza70">Gyanendra Lal Pradhan</a> is a member of the <a href="http://cnind.org/">Confederation of Nepalese Industries</a>, and is associated with <a href="https://hydrosolutions.com.np/">Hydro Solutions</a>.

Decentralising (hydro)power

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181148/636a96549c7e80680e05dc60jpeg.jpg" alt=""/><figcaption>Photo: EDCW</figcaption></figure>Last month saw the historic signing of the Nepal-India energy Joint Steering Committee agreement to build the new Butwal-Gorakhpur 400KV crossborder transmission line. When completed, it opens up the possibility of Nepal exporting surplus power to regional markets like India and Bangladesh from power projects in the Marsyangdi, Kali Gandaki and Budi Gandaki corridors. With so many hydropower schemes in the pipeline, Nepal may soon have surplus energy at certain times of year, which makes crossborder transmission lines imperative. Discussions about Bangladesh’s desire to import up to 9,000MW of electricity means Nepal must have a clear business model for the regional electricity market.Besides hydropower, the new crossborder transmission line has also opened up the <a href="http://archive.nepalitimes.com/article/nation/energy-windfall-in-Nepal,2539">prospect of large-scale wind and solar farms</a> in cold, windy and cloudless regions like Mustang and other trans-Himalayan districts.A Global Atlas prepared by the World Bank shows Mustang is ideal for wind and <a href="https://www.nepalitimes.com/here-now/nepal-turns-to-solar-and-batteries-to-meet-peak-demand/">solar</a> energy development. Just using 2% of the district’s land area for solar could yield a generation capacity of 3,000MW, along with 1,200MW through wind energy projects. (See accompanying maps).Read also: <a href="https://www.nepalitimes.com/editorial/making-nepal-powerful/" target="_blank" rel="noopener">Making Nepal powerful</a>, Editorial  <img width="1500" height="993" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181148/636a96589c7e80680e05dc61jpeg.jpg" alt="">Some will question the need to go for wind and solar in a country with such abundant hydropower potential. However, wind and solar are the fastest growing energy sources globally, accounting for more than 70% of new energy addition since 2013.Low cost and speed of installation make these technologies attractive <a href="https://archive.nepalitimes.com/article/nation/biomass-energy-for-nepal-plains,2098">even in countries with hydropower</a>. Some of the potential for wind and solar power in Nepal will be discussed at the Independent Power Producers’ Association, Nepal (IPPAN) Power Summit 2019 in Kathmandu, 21-22 November.Latest solar auctions have seen prices drop below two cents per KW/h. In India, the Adani group built the 648MW Kamuthi solar power project in Tamil Nadu within one year. It is unimaginable to build a hydro project of such a size so fast.To be sure, building <a href="http://archive.nepalitimes.com/news.php?id=16902#.XcujT9Iza70">wind</a> and solar projects in Mustang would not be a cake walk. Transmission lines and road access remain challenges, although they are improving and could be surmounted if the resources are allocated. The 10m wide Beni-Korala highway currently under construction would be a notable step forward.A 220KV substation is being built in Dana, 40 km from Jomsom, but land acquisition and environmental approvals are major roadblocks. The entire district falls inside the Annapurna Conservation Area and existing rules require environmental impact assessments for new energy projects — even though nothing would be more environment friendly than renewable energy development. Read also: <a href="https://www.nepalitimes.com/here-now/decentralising-hydropower/" target="_blank" rel="noopener">Decentralising (hydro)power</a>, Gyanendra Lal Pradhan  <img width="1500" height="1135" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181148/636a965b9c7e80680e05dc62jpeg.jpg" alt="">Red tape and overlapping jurisdiction between municipal, provincial and national government make the entire approval process more arduous than the construction itself. Likewise, almost 99% of the land in Mustang is government-owned, and buying or leasing it requires official approval, which could also take years. Without resolving these issues, it will be difficult to attract investment, domestic or foreign.The onus is on the federal government to come up with a solution, and with a two-thirds majority in Parliament, the ruling party has an historic opportunity to move fast. One solution could be to replicate the successful model of the Solar Energy Corporation of India (SECI), a central government undertaking formed under the Ministry of New and Renewable Energy dedicated to developing large-scale, grid-connected solar and wind projects. Registered as a power trader, its role is to auction and manage solar and wind farms.SECI develops large-scale projects then auctions them to independent power producers (IPPs) to build, own and operate. SECI then signs 25-year deals with the lowest bidders, buying the power from them and selling it to state electricity-distributing companies at a nominal premium. The SECI model is a win-win for IPPs and utilities, which do not have to spend time and resources to develop projects, while utilities get electricity at a competitive rate due to the bidding process.Exporting electricity is arguably our biggest opportunity to reduce the trade deficit with India, and together with hydropower we must also pick the low hanging fruits of solar and wind energy. If we want to do it big and quick, we must develop gigawatt-scale wind and solar projects in Mustang, where it is realistic to generate and export 3,000MW of solar and wind power within five years. <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/wind-energy-for-electricity-in-nepal,1997">Kushal Gurung</a> is CEO of <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://www.windpowernepal.com/">WindPower Nepal</a> and head of the <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.edcnepal.org/">Energy Development Council</a>.