Per capita energy consumption
is one of the indicators of the economic development of a nation. Economic
activities expanding with the availability of adequate energy at a reasonable
price. Surplus energy encourage individuals to initiate and expand income
generation activities boosting economic development of the country. So the role of energy in the overall
development of a nation can hardly be overemphasized.
Nepal's energy source consists of a combination of both
traditional and commercial energy. Over two third of the total population meet
their energy demand through traditional sources such as fuel wood, animal waste
and agriculture residue. Consumption of commercial energy in the form of
electricity, coal and petroleum products are also increasing. But Nepal has to import coal and petroleum products for energy
need.
Nepal has a theoretical potential to generate 83000MW of
hydropower, economically feasible potential is about 42000MW. However, only a
small fraction of this power potential has was installed in Pharping (500KW) in
1911, which was later followed by installation of Sundarijal Hydropower Plant
(1350KW). Due to Nepal's poor performance in the power
sector development only 15% of electricity is a little over 25KWh, which
represent lower in Asia.
At present, the country is experiencing
load shedding and about 7000 MW of electricity should be generated to meet the
demand by the year 2027 AD.Since,1990,less & less grant aid and loan are
forthcoming in the energy sector. The government, from its scare resource, and tight
control of donor agencies, has not been able to sustain the power development
program.
In the
process of making effort to meet the power demand, NEA identified Lower Modi
River as a feasible site for generating hydropower $ estimated to generate 10MW
at an expensive of Ruppes One Arab and Sixty Four Crore. The task of generating
hydropower, from Lower Modi River has given to a private sector company on
Hydropower Policy of 1992(ICIMOD,2006).
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