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<div>
<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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'description' => 'Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.',
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<div>
<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<div>
<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<div>
<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
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<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years.
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations.
(The author is the immediate past president of IPPAN.)
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
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</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
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<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
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<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
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<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
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</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
<div>
</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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<strong>--By Dr Subarna Das Shrestha</strong></div>
<div>
</div>
<div>
Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.</div>
<div>
</div>
<div>
Braving different difficulties, both the private and public sectors have been trying to increase investment in the hydroelectricity sector even in today’s transitional period. Projects worth 1,200 MW are under construction; out of this 28 projects of total capacity of 360 MW are being built by the private sector. Power purchase agreement (PPA) for projects worth nearly 500 MW being developed by the private sector has been done. These projects will enter the construction phase over the next two years and will start producing electricity over another five years. </div>
<div>
</div>
<div>
However, there are various problems in the hydropower sector. If we don’t tackle these problems in time, the current energy crisis will only deepen. The country is already reeling under long hours of load shedding. Several industries are faced with the risk of closure because of long load-shedding hours. If that happens, the unemployment figure will rise further. To improve the situation, we need to increase investment in hydropower. However, there will be no significant investment from either domestic or international investors in hydropower as long as an environment for investment security is not created.</div>
<div>
</div>
<div>
In order to encourage everyone to create a favourable investment environment for the hydropower sector, the Independent Power producers’ Association, Nepal (IPPAN) had organized the Power Summit 2013 on August 26-27. The summit was focused on four themes: internal investment for projects of internal consumption; external investment for projects of internal consumption; projects focused on external markets; and transmission lines, electricity trade mechanism and marketization. The discussion on these themes helped bring to surface the legal, social, financial and political problems marring hydropower development in the country.</div>
<div>
</div>
<div>
To increase investment in the hydropower sector, the first requirement is guarantee of good returns while signing the PPA itself. Second, there should be no obstacles after the project enters the construction phase. The process of issuing license must be eased. For this there should be a one-window policy; the Ministry of Energy should handle everything related to hydroelectricity. At present the situation is such that to seek license for one hydropower project, power producers have to visit 10 ministries and as many government departments. This is a big hassle for independent power producers and increases the cost of the project.</div>
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</div>
<div>
The Nepali private sector is ever ready to assist the government in addressing these problems to create the environment of investment in the hydropower sector. If that happens, domestic investment will definitely increase while the country can attract foreign investment as well. However, foreign investors want to sign PPA in the currency of investment. The government should open the doors for an arrangement to sign the PPA in US dollar and make the payment accordingly. If this happens, we can produce the amount of energy we need within the country. Power transmission is another important aspect for which the government has already allocated a budget of Rs 13.5 billion. This step taken by the government is praiseworthy.</div>
<div>
</div>
<div>
The annual per capita consumption rate of electricity in Nepal at present is only around 100 units. Fifty percent of the population has no access to electricity at all. Let’s increase the per capita consumption of electricity by five times over the next one decade. We had raised this issue in the Power Summit as well. If we can produce more electricity than we need, the surplus electricity can be marketed in other countries of the region. It is for this reason that the concept of ‘SAARC Grid’ has been forwarded. Nepal will get the maximum benefit from such a regional grid. That’s why we should take the leadership for the construction of SAARC Grid.</div>
<div>
</div>
<div>
Rather than focusing on the cost of production of one unit of hydroelectricity, we should think about the loss to the total GDP caused by the non-production of one unit of electricity. A decision regarding 20 per cent post-PPA rate has already been taken by the Cabinet. But this decision is pending at Nepal Electricity Authority. The decisions taken by the government should be implemented. This will send out a good message to all domestic and foreign investors. Taking good decisions is important but implementing such decisions in time is even more important.</div>
<div>
</div>
<div>
NEA has a monopoly over hydroelectricity in Nepal. It’s high time we created separate companies for building transmission lines and electricity trade. Similarly, we should have wheeling system in place. In this system one has to pay rent for transmitting electricity through another transmission line. If these concepts are implemented, the private sector can share some of the burden of the NEA. The government has already committed to make these changes in the hydropower sector. What remains is their implementation.</div>
<div>
</div>
<div>
At last, the country’s economy cannot achieve a momentum without the development of the hydropower sector. The government and the private sector should join hands for the development of the hydropower sector. If we can do that, we will not only be self-reliant in hydropower but also will be able to export electricity to other SAARC nations. </div>
<div>
<em>(The author is the immediate past president of IPPAN.)</em></div>',
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'description' => 'Development of energy is a must if Nepal is to achieve economic prosperity. Energy development in Nepal’s context means none other than the development of hydroelectricity. Nepal’s journey of hydropower development is a century old. The country has been able to produce 718 MW of hydroelectricity over this period. Out of this, nearly 34 percent or 240 MW is being produced by the private sector. The Nepal government allowed the private sector to invest in hydropower through the enactment of the Hydroelectricity Act in 1992.',
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