lecture
lecture
and
challenges
and opportunities for its
development
Resource Base(1)
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Resource Base(2)
Total Water available per year: 225 BCM
6000 rivers and rivulets and 5,358 natural lakes including glacial lakes
Wind: 3,000 MW
• Market challenges:
– Export and domestic market challenges for Nepal’s huge
hydropower potential
• Social and Environmental safe guard Challenges:
– Lack of proper risk mitigation and high risk of
implementation delays due to land and forest issue
– Politicization of hydropower projects by local, regional and
national interest groups, particularly in the on-going
debate of federalism .
– Unexpectedly high local demands from the project
Hydropower Development-Challenges(3)
• Institutional Challenges:
– The institutional framework with overlapping and unclear
mandates and authority, which prevents a streamlined
decision and planning process;
• Other Challenges:
• Lack of coordinated planning for expanding access to
electricity through grid extension and off-grid
renewable technologies
• Lack of timely implementation of power sector
objectives, strategies and action plans;
• Lack of harmonization of regulatory frameworks for
cross border trade of electricity
Hydropower Development-
Opportunities(1)
• Political transformation
– Transformation from to federalism will empower the local
people to identify their needs, secure ownership in
development projects and implement them faster.
• Government plans
– Government plans to provide electricity to all and develop
10 thousand MW by 2025 with GDP growth rate of 9.2
%(with policy interventions) are encouraging.
Hydropower Development-
Opportunities(2)
• Foreign Direct Investments
– FDI friendly legal arrangements like electricity act and
foreign investment and technology transfer act along with
the provision specific PDAs have been able to attract
sizable FDI in the country.
• Abundant hydro potential
– Enormous hydro power potential existing in the country
can be utilized for domestic use as well as for export.
Hydropower Development-
Opportunities(3)
• Domestic FIs prioritize investment in Hydropower
– Banks and other financing institutions like EPF, CIT etc.
have started allocating major portion of their funds for
investing in hydropower. NRB increased threshold of
investment in hydropower from 12 to 15%.
• Enhanced local manpower
– The domestic human resources have attained ample
expertise in the field of planning, designing, construction
and operation of hydropower projects through technology
transfer and in-house experience
Hydropower Development-
Opportunities(4)
• Action plans for energy crisis mitigation
– Government’s 99 points action plan and 37 point
commitment paper have been owned by all stakeholders
and results are positive.
• Encouraging public participation for investment in
Hydropower
– An investment survey carried out by Ministry of Energy has
shown overwhelming interest of individuals as well as
institutions for equity investment in hydropower.
• Team building for power sector development
– Consensus among all players of power sector is being built
up to do away with load shedding sustainably.
THANK YOU!