Energy Situation and Management Issues in Nepal
Nepal’s energy situation relies heavily on biomass, especially firewood, which makes up over 70% of energy use. This dependence causes deforestation and indoor air pollution, leading to serious health risks. The country does not have its own reserves of gas, coal, or oil, so it relies a lot on imported petroleum products, which adds to a large trade deficit. Although Nepal has a lot of potential for hydropower, less than 1% of the estimated 83,000 MW capacity is currently used, resulting in frequent power shortages, especially during the dry season.
The emerging issues in energy management in Nepal are as follows:
i. Hydropower Development Challenges: Nepal has a lot of potential for hydropower, but the sector faces challenges like poor infrastructure, lack of investment, and environmental concerns. Efforts are being made to attract foreign investments, including from Indian companies like Adani Group, to build big hydropower projects to develop large-scale hydroelectric projects.
ii. Climate Change Impacts: Climate change is affecting Nepal, with unpredictable monsoons and more extreme weather. In September 2024 (Bhadra 2081), heavy rains caused floods in Kathmandu, damaging infrastructure and hydropower projects.
iii. Energy Access and Equity: Around 30% of Nepal’s population, especially in rural areas, still doesn’t have access to electricity. This inequality limits economic growth and affects people’s quality of life. It’s important to improve energy access for everyone.
iv. Energy Efficiency and Sustainability: Using biomass inefficiently and not having energy-efficient technologies leads to environmental problems and health issues. Promoting energy-efficient and sustainable energy practices is crucial for long-term energy security.
v. Geopolitical Shifts in Energy Partnerships: Nepal is diversifying its energy partnerships, seeking investments from countries like China to reduce reliance on traditional partners. This shift aims to improve energy infrastructure and security.
vi. Policy and Regulatory Framework: Nepal’s energy policies are changing to support renewable energy sources and enhance energy efficiency. However, challenges remain in putting these policies into action and attracting the needed investments.
Thus, Addressing Nepal’s energy challenges requires a multifaceted approach, including harnessing hydropower potential, adapting to climate change, improving energy access, and promoting sustainable energy practices. Collaboration with international partners and private investors is crucial to developing infrastructure and technologies that can meet the country’s energy needs and support economic growth.