How are you coping with ongoing energy crisis?
There is no fuel in my car as I cannot queue for 18 hours to get rationed fuel. I am using bicycle for commuting. In kitchen, my daughter-in law has been using electricity, whenever it is available, to prepare meal. We are using LPG to warm food for around five minutes before serving. My electricity bill has increased by about 100 units (KWh) to 220 units per month. A family needs around 100 units per month to prepare meal. Using electricity for cooking was expensive than kerosene in 2000. Now, electricity is the cheapest to prepare meal. But the problem is we do not have uninterrupted supply of electricity.
Why aren't we getting sufficient power supply when we have devised several plans to build hydropower projects?
Most of those plans are gathering dust in the Ministry of Energy. The problem is in implementation. We have submitted National Energy Strategy 2009, Energy Vision 2030 and 2050 to the ministry. Last year, we submitted Low Carbon Economic Development Strategy to the ministry. Public policy is meant for taking concrete action on activities that affect people's lives. It seems that our government has unwritten policy of doing nothing.
Lot of efforts and resources is needed for hydropower development in Nepal. We should have fundamental approach that unless we develop hydropower plants we cannot achieve overall development of the country. We are failing to take long-term approach for hydropower development also because of frequent changes in leadership at Ministry of Energy and Nepal Electricity Authority.
What is your view on energy security at this time of fuel crisis emanating from border obstructions?
Energy security is very much important for Nepal. It also means security in supply, cost effectiveness, and environmental sustainability in energy use. We have too much dependent on fossil fuels in recent decades. In monetary terms, import of fossil fuels has jumped by an average of 20 percent annually between 2004 and 2014. But average GDP growth during the period stood at less than 4 percent. Our energy consumption is not linked with economic output as around 80 percent of our energy consumption is for residential use. Consumption of fossil for personal cars and motorbikes is increasing. We have seen supply side disturbance by the trade blockade. It should act as an eye opener. It can be an opportunity for us to generate indigenous energy source that is hydropower.
Do you think suppressed energy demand forecast of NEA is a major bottleneck for hydropower development in Nepal?
NEA's demand forecast is suppressed. Its forecast calculates electricity demand for lighting purpose only. The state-owned power utility is unaware of the fact that technological improvements have made cooking using electricity very feasible. NEA's projection does not match with people's electricity demand. It is high time NEA aligned demand forecast with people's changing behavior in energy use. As we are not producing fossil fuel, we have no option but to harness hydropower for energy security.
Nepal ranks lowest (128 units) in South Asia in per capita electricity consumption. In such a situation, how can Nepal become a 'developing country' by 2022?
Several studies conducted by Asian Development Bank (ADB) and United Nations Development Programme (UNDP) have confirmed some linkage between per capita electricity consumption and human development index. With this lowest level of electricity consumption, it is impossible to graduate to the league of developing countries by 2022. Our per capita electricity consumption should be around 2,000 units if we are to meet the target. We can increase per capita electricity consumption to only about 1,000 units by 2030 that too after putting lot of emphasis on electrification and hydropower development. Similarly, we need to more than double our investment in hydropower to about 4 to 5 percent of GDP to meet the target. If we invest Rs 210 billion to develop a 1,300-megawatt hydropower plant, we can substitute LPG and diesel worth Rs 50 billion, or 42 percent of total petroleum imports, annually. In the next two decades, we will be saving Rs 2 trillion.
What is your prescription to the government to bring about reforms in the power sector?
We cannot achieve huge growth with current structure of hydropower sector. NEA should be unbundled. We need to promote independent power generation, independent system operator, and public or private power retailers to clear our energy bottlenecks. Norway managed to raise per capita electricity consumption to 23,000 units by bringing similar reforms. We should learn from their experience and execute accordingly.
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