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Exporting hydropower from Nepal????

   Nepal, a country endowed with immense hy 02-Aug-03 Neural
     Yeah it is true that Nepal is one the ri 02-Aug-03 jaya_nepal
       I think the days of big hydro dams are o 02-Aug-03 rendra wasito
         neural bhai, Do you remember who firs 02-Aug-03 Bhunte
           jaya_nepal : Thanks for your i/p. Yes, u 03-Aug-03 Neural
             Neural bhai, Actually the study has to 03-Aug-03 Bhunte
               Bhunte dai, yeah, I do agree with u. Ke 03-Aug-03 Neural
                 Neuralji, I am back like a Boomerang 03-Aug-03 rendra wasito
                   <br> 1) Will India buy power from NEPAL 03-Aug-03 U_2
                     rendra wasito jyu, Neither i am a hyd 03-Aug-03 Neural
                       U_2, you have a good point. India has it 04-Aug-03 ramaychowchow
                         I still go for Neural's idea of hyphothe 04-Aug-03 ramaychowchow
                           "Build it and they will come" does not w 04-Aug-03 czar
                             Czar ji, What I meant there was inste 04-Aug-03 Bhunte
                               Bhuntey, Point noted and you are correc 04-Aug-03 czar
                                 If I recollect correctly, someone here h 04-Aug-03 czar
                                   Catch 22: We don't have money so we can 04-Aug-03 ramaychowchow
                                     Czar ji, Paralysis and analysis rhyme 04-Aug-03 Bhunte
                                       China is in a huge pressure from the res 04-Aug-03 ramaychowchow
I am poor in hydrology, but just wonder 04-Aug-03 Bhunte
   Well that you know I am Ranjit Rana. My 04-Aug-03 rendra wasito
     Rana ji, Hajur ko priya Sali haru pan 04-Aug-03 Bhunte
       Middle Marsyangdi and Kulekhani-3 have b 05-Aug-03 Neural
         Let the Rivers of Nepal run free Toni 06-Aug-03 rendra wasito
           Can anyone, preferably an electrical eng 06-Aug-03 ujol sherchan
             Sherchanji, The economics of big dams 07-Aug-03 rendra wasito
               Those interested in the trends of econom 07-Aug-03 Bhunte
                 To my knowledge, the feasible hydro powe 07-Aug-03 kathmanduite
                   ujol ji, Nepal's hydropower schemes t 08-Aug-03 Neural
                     Chakravorty et al are all theoreticians 08-Aug-03 rendra wasito
                       Rendra dai, too critical remark ... actu 09-Aug-03 Bhunte
                         I am for the small scattered projects gi 09-Aug-03 Bhunte
                           A hey Neural and all lets all go FERAL>> 09-Aug-03 rendra wasito
                             Bhunte bhai, Reminds me a song from a 09-Aug-03 rendra wasito
                               <br> "Reminds me a song from a gaine 09-Aug-03 mister_sajha
                                 Rendra Washita, You claim yourself as 10-Aug-03 Bhunte
                                   Further, environmentalist like Rendra ar 10-Aug-03 Bhunte
                                     Read "....no more like ... in the last p 10-Aug-03 Bhunte
                                       Bhunte ji, I feel discomfort to say i 10-Aug-03 mister_sajha
Bastard Master Sajha mahasaye jyu, An 10-Aug-03 Bhunte
   If am Bastard, you are what??? Master 10-Aug-03 mister_sajha
     As i said, gu lai chalayo nak bhari chit 10-Aug-03 Bhunte
       Bhunte aka Tunte biradar, Me think yo 10-Aug-03 rendra wasito
         Dear Incest Ranjeet Chummusa Jange Birda 10-Aug-03 Bhunte
           Nice to read Rendra and Neural's stabs a 10-Aug-03 ujol sherchan
             Ujol, I only comment on the excessive 10-Aug-03 rendra wasito
               Surplus energy export to India (nepalne 15-Aug-03 Bhunte
                 Tantra Nath Thakur can get more electric 15-Aug-03 ozdownunder2
                   Bhunte dai, yeah, the news is good. 15-Aug-03 Neural
                     Neurarl bhai, i wanted to call you wh 15-Aug-03 Bhunte
                       Bhunte dai, please check your email afte 15-Aug-03 Neural
                         Tunte that is why Asia is getting close 15-Aug-03 ozdownunder2
                           Export of surplus power should be purely 15-Aug-03 Bhunte
                             ozdownunder2, just stick to one nick. 15-Aug-03 Bhunte


Username Post
Neural Posted on 02-Aug-03 04:20 AM

Nepal, a country endowed with immense hydropower potential resources, considered as the second richest country in hydropower with an estimated theoretical potential of 83000 MW and economic potential of around 30000 MW.

[Only about 15% Nepaleses have become fortunate to use the electric power so far]

The oil producing countries are benefited by earning higher revenues arising from the increase in oil prices but this is not suitable for those countries that are rich in hydro resources. Hydropower from Nepal if exported to its neighbouring countries, especially India, can generate substantial rent from it. However, the current pricing and policies on hydro resources in Nepal are not designed in accordance with such objectives. Even though Nepal government were to collect the economic hydro rent by modifying the pricing and policies, it would require some estimates of potential rent.

And in most countries, public utility company own hydro plants, as in Nepal  Nepal Electricity Authority (NEA) is the only public utility involved in planning, generation, transmission and distribution, and they are subjected to such an accounting system that prohibits to a large extent the correct calculation of surplus based on real costs.

Nepal, "HYDRO POWER KO DHANI DESH" re. But the power system of Nepal is very tiny (current capacity < 600 MW). Hence, real rent does not exist if the system is small and resources are more. In other words, real rent is not coming with domestic use. Also, the royalty on hydro in Nepal is not scientific. Nepal cannot consume all the resources available in the country. While there is power scarcity in India, and Indian market is too big while compared to that of Nepal, Nepal hydropower resources can be utilized in India. And with the power export to India, an economic rent ($/kWh) of hydropower project of Nepal can be obtained, which will be beneficial to our country.

Export oriented hydro projects from Nepal can be : Arun -III (402 MW), West Seti (750 MW), [and few more]

Questions may arise :

1) Will India buy power from NEPAL?
2) What can be done (modification) on the current pricing and policies??
3) What our government should first work?
4) Role of Policy analysts??
and many more questions ............

---- Let us discuss on this issue. Your views/ideas are welcomed.



jaya_nepal Posted on 02-Aug-03 07:20 AM

Yeah it is true that Nepal is one the richest country in hydro power. After tourism I would say hydro electricity is one resource Nepal can benefit from.
The major issue from what I understand is the pricing issue. India is the only potential buyer. The prices set by WB, IMF, ADB and or donors does not comply with India. That is where the major conflict lies. Few years back, India, Nepal, Bangladesh and I guess Bhutan signed a pact under SAARC to co-operate in hydro power production. Since these countrues are very close to each other, they would develop the hydro power plant in the region for mutual sharing. But work has to be done in that.
Apart from all these, major issue in Nepal is political instability and political interference.
rendra wasito Posted on 02-Aug-03 04:32 PM

I think the days of big hydro dams are over. They were once dubbed the neo HINDU TEMPLES of Pundit Neharu. I mean the whole idea is unsustainable in terms of economics, social and physical dislocation poor and tribal people, loss of bio diversity, rise in salinity, ecological disaster, himalayan terrain to be too unstable for such mega works and could be a time bomb waiting for the dam to explode and drowning millions of Indians and Bangadeshi as they are down stream of the riparian commuinty and economy, increase in malaria, deforrestation, increase in mud slides, rise in corruption as only Himalaya and Prithibi Pandey and Pramod Rana may get big bucks as promoters and they may shrike to pay opportunistic kleptocratic politicians. Then the dam building may go to the cronies of the politicians and high paying job to their relatives and thus termed nepotism. The tender process will not be transparent and accountibility will be lacking.

Thus, big hydro dams are the vanishing Dinosaurs of the Jurrassic Park !

Electricity export to India is also doubtful as most of the Indian electricity boards are bankrupt....

I recommend you to come back and have comprehensive dsicussion with me asap. However, a good article that you should read is called "The flawed economics of big dams" and it is published by CORNERHOUSE. Just type in the google search engine "Cornerhouse" and "Big Dams."

We in Australia are trying to stop the lunatic organisation Snowy Mountain Engineering Corporation to try and build a large dam under SURYA BAHADUR THAPA. This organisation wants to sponsor the 2003 Kathmandu Jazz Festival, sponsor a cricket team from St. Xaviers and Doon School in India to go to Australia. They are trying to lubricate the children and then the parents in power will back this lunatic and eco vandal organisation from Australia.

The record of this organisation in terms of eco related resource management is very very bad. Because, of them the mighty Murray River is virtually dead. The scenario that I have presented above applies to this organisation's contribution is Australia. I am involved in one of the big NGS's as a Consultant Environmental Economist.

I am ashamed to be realated to the corrupt Surya and now in power. When he was a Panche the forest cover of Nepal shrank from 28 % of the land mass to only 13 % of the total Nepali land mass.

Hare ke garne ?

I am that I am.
Bhunte Posted on 02-Aug-03 06:10 PM

neural bhai,

Do you remember who first calculated nepal's hydropower potential to be 83k MW? Coincidently that was out of his PhD dissertation, and I had opportunity to work with him for some years in Nepal. Your four point questions has been a perennial question among people. But, for me let's first generate the power and later we will find the market and set price or the market itself will come to us once we have the product.
Neural Posted on 03-Aug-03 01:25 AM

jaya_nepal : Thanks for your i/p. Yes, u r right : "major issue in Nepal is political instability and political interference" . Dherai kura garna sakinchha Nepal maa if these things are solved.

Bhunte dai: It's really good to hear that u had an opportunity to work with him for few years in Nepal. Yes, u r absolutely true : "find the market and set price or the market itself will come to us once we have the product".

Bhunte dai, tell me - "But can't we do a Hypothetical study?"

Wat are the roles of the planners? Do they have to start the study/case after the things are exposed only? rather not.... Basic operating functions of a power system, G,T and D...who else do this? and many others like system planing, cost/benefit analysis, optimization etcetera.

Thank u.


**rendra wasito:

Thanks for ur elucidation. However, about dam/it's construction/ur info like "Cornerhouse" and "Big Dams" are not so important here to discuss.

It's nice to hear that u r an economist. I hope u will agree with this too: "In Nepal, the opportunity of hydropower is such that it can be utilized in domestic purposes as well as in export market. Hence, hydropower of Nepal has both export opportunity as well as opportunity in domestic consumption. And, evaluation of economic rent of hydropower (hydro rent) can be done."

Is not it possible????
U might be knowing the definition of economic rent (especially when there is exploitation
of natural resources). U also consulting envtal stuffs.

rendra wasito, I really don understand why everytime u are mentioning "We in Australia.."(saw in another thread too), and what is that for "Jazz Festival, sponsor a cricket team from St. Xaviers and Doon School in India to go to Australia" ...which are out of the topic (whatever SMEC does). Yeah, it is true that SMEC has not been able to start the project (for west seti) as it has not been able to agree on a power purchase agreement with India.

u said : "I recommend you to come back and have comprehensive dsicussion with me asap." ----> ur recommendation is highly appreciated, and if necessary (if), we can discuss "ASAP" too. Thx for that.


Bhunte Posted on 03-Aug-03 02:10 AM

Neural bhai,
Actually the study has to be real one. But for an academic exercise hypothetical one should be as a head start. I asserted earlier as the one you quoted because the planners in Nepal have been wasting so much time arguing nonsense stuffs. There may be varied motives and different stakes. That way project implementation is delayed, and one has to adjust costs and benefits of the project due to inflation factors for different materials, etc. if a project is deferred. Aren't we sick and tired of it? When I first heard of Melamchi project sometime during Marich Man's PMship, the estimated cost of the project then was about 1 billion nepali rupee. Then people started argueing this and that saying 'baf re baf tetro paisa kaha bata lyaune'. Can one accomplish the same project in 1 billion? NO. There are so many tantras in Nepal that make a project just unviable.

Yes, formally one need to justify a project with all the assumed costs and projected benefits. About the role of planner, enough is being said by other diggaj elsewhere. May be "hamro pala ma hami ideal planner huna sakchhau hola!!"...But people just don't believe on us. I will give u an example why I said that.

Once upon a time, there was very famous (in good sense) guy who was once as DG or DOI, Executive Secretary of WECS, Secretary of MOR, and finally chief secretary of Cabinet. After his retirement he was working at NPC. Somehow he knew about me and tried hard to locate me to work for a WB project at NPC to prepare a water resource strategy for nepal. But i was outside of Ktm. My staffs in my ministry were pondering why this big shot was looking for me. Then I went to see the person. He looked at me from "Sir" to "Paitala samma". And, said "you so young, Can you accomplish this task? " I politely replied, "why not? I explained to him that I had opportunities to serve as a team leader in few few other similar projects. But, I am afraid if I will be able to do as I may be heading USA for my PhD". Then he said let me know by ...month. But, I left nepal.

My point is that beaurocrats or senior planners just don't believe us. Real planners have a lot to do back there. Hope we can change things for better in future. Sorry, I talked about me in this thread.

Neural Posted on 03-Aug-03 02:38 AM

Bhunte dai,
yeah, I do agree with u. Ke garna - yeso kehi garna chahyo vane DHIKI CHYAU le khel bigarcha ra po ta. NPC has a vital role tara many constraints are there which ..... :(
U have/had good work experiences that are being so useful for ur current task. And, those are necessary for higher studies too... i feel that. Theoritical+practical knowledge is must.

If we look at the Electric supply industry of Nepal........what one would say? Deregulation is not possible at this stage. Even, India is going after restructuring (in Orissa, Haryana). There are many other developing countries, which are going for Power Sector Reform. I think, Ethiopia has also started reforming it's power sector. One thing is okay these days in Nepal that many micro hydro plants are being installed in different regions. In one sense, it is a finer job as the capital cost and other costs are comparatively less.

rendra wasito Posted on 03-Aug-03 04:47 PM

Neuralji,

I am back like a Boomerang to tete a tete with you pal. Remember after11/9 the economics of big hydro dams has had a diversion effect. Dreamers like you better look for wind and solar power related economics. That is for your big hydro karma. Ke garne that you all are late for this market ?

Great opportunity for Nepal to diversify and focus on small dams and small projects. A good risk and return management plan. Maoist cannot blow a big egg in one big basket. Why not have many eggs in many baskets. This is termed smart hedging and prices could come down as insurance payouts will be contained. Also ghus payments will be lowered as small dams will pay small ghus and this is the payoffs in the game of prisoners' dilema.

Public funds are drying for big dams, the industry had to turn to private investors like Prithibi Pandey led banks and shareholders, pension funds to finance big dams, a trend reinforced by a shift in general towards private sector financing of infra structure projects in Nepal.

At present, the private sector finances about 10 to 15 percent of infrastructure investments in Nepal. The World Bank, however, predicts that private investors could soon be providing as much as 70 per cent of infrastructure investment in Nepal.

However, due to terrorism and Maoism, in Nepal only a handful of irrational and arrogant members of the Royal family led big dam projects have managed to attract the investment required (putting Nepali balance of payment to the outside world to be increased and also increasing the risk of bankruptcy of the nation). One reason is that big dams is perceived as carrying a number of risks which make dams a less attractive investment than other power projects on offer. In particular, dam projects are reknown for cost overruns and schedule slippages (as Nepal has to rely on Bihar contractors); in addition their output is frequently unreliable.

I say your derived demand for price and market creation models are childish and irrational as they are based on too many futuristic assumptions.

Why ?

In reality what is forecasted through computer simulation and econometric models deliver :

* Lower than expected output due to increase in Green House Effect in the world for river streams are running low all over the world.

* High Risks and low returns by the big dams.

* Resettlement and public oppositions as the Kleptocratic Nepali nation under King Gyanendra will violate the human rights of the tribal Santhal, Dunwar, Majhi and Raut people.

* Public purse is drying.

* Big dams are unattractive and dying.

* No answer and solution provided by the developer in terms of dam failure, earthquakes and decommisioning.

* Big dams are Bankers' nightmare.

So keep your MAHA Aloo PHD to your self or better tear it and reinvent yourself as a Green Economist.

Learn about Green Dam Marketing and Management.

Why ?

There has been a significant paradigm shift for wealth and substitution effect. Because, the customers' needs and wants are for a sustainable economy, social justice and equality, and environment. Customers' needs and wants has to be intregrated and their deliberation of decision has to have inclusion and closure. The dams of future need to be green and should be based on very very creative value proposition.

I have come to the conclusion you are a novice in marketing and consumer behavior research. You do not know business to business marketing, business to consumer marketing, derived demand analysis, market trend analysis, SWOT analysis, Value creation, project future cash flow and present cash flow analysis, cost/benefit analysis, focus group needs analysis, conjoint analysis, pricing model analysis and much more. I even suspect if you know basic economics and externalities that cause big dam market failures in a Kleptocratic democracy like Indian electricity current market.

In sum, too many risks.
U_2 Posted on 03-Aug-03 08:27 PM


1) Will India buy power from NEPAL?

Proably, not. India too have potetial to generate electricity from its hydro resources at the level as high as 85,000 MW (same as Nepal).

Besides, India have plenty of cheap coal resources and also have access to natural gas from Bangladesh to generate cheap power. Power generation from Nepal's hydroresources will be too expensive for India to buy (you know, Nepal's current tarrif rate is one of the highest in the world).

2) Nepal's hydropower potential = 83k MW

This much mentioned potential doesn't make sense to me. For a given energy sources, one can have MW sizes as high as one may want. A particular water in a reservoir, for example, generates 10MW if generated thorugh out the year, or, can generate 120 MW, if generated for one month only. Either way generation of energy will be same in both cases, but capacities are different by 12 times. Hence, measuring potential in MW, hence the 83,000 MW does not make sense to me. Potential should be measured in terms of energy (MWh) not capacity (MW)!
Neural Posted on 03-Aug-03 10:18 PM

rendra wasito jyu,

Neither i am a hydro power/energy expert nor have ever dreamt for wind and solar or other renewable energy resources. Moreover, neither i am establishing any power market in Nepal nor ever involved in "marketing and consumer behavior research", "business to busenss market" etcetera.

I just rose this hydro issue to discuss here so that a great economist like u with enormous knowledge in every field may input some views for "what/how can be done" in the context of Nepal. Ur i/ps were all appreciated. Furthermore, learning abt "Green Dam Marketing and Management" is out my interest. Sorry for that.

U might have gone thru' my second post to this thread as "Bhunte dai, tell me - But can't we do a Hypothetical study?" ===> u might've understood what i meant.

Anyway many many thx for ur wishes/suggestions et al. May you excel in everything wat u do.

======

U_2

I think, energy generation or total energy contributed by the plant is usually calculated in GWH (or Watt hr); for capacity of the plant- it is MW.

Thank u.
ramaychowchow Posted on 04-Aug-03 08:18 AM

U_2, you have a good point. India has its own cheap alternative for energy so why would they buy our expensive energy. Now the question will be: is it physically possible to export to Tibet? Mind you, chinese government has big projects planned for Tibet and will be in need of big energy source. Can we build the transfer stations? May be we need to give our thoughts on these as well.

Also, hows about for our own consumptions? Can we electrify entire public transportation system? Can the examples of Austria, Switzerland be applied to Nepal? Nepal is spending so much on buying petrolium? Will hydropower energy, which is colstly at the start, can be beneficial in along run? If so, where is the source of fundings to build these? Can we sacrifice a little? Obviously Nepalese janta won't be able to pay from their own pocket to build hydropower plants? How can we expect people like Harkha Bahadur, a kisan from Dadheldhura, to pay for billion dollar project? We realized this at Arun III time. and thank god, we chose not to go with that project. Hows about more manufacturing industries for Nepal? Can Nepal generate more energy and establish itself as a cheap alternative? Can we produce goods cheaply that is becoming expensive to manufacture in China? China has dominated the world market. Can we tap some market from them? Bhunte, you are right on the money. May be we should first generate the energy, then look for the market. In this way, if we present ourself as cheap alternative, people will HAVE to come to Nepal for energy. Nepalese has this attitude of "hundai hundaina" without trying first.

I agree: Nepal should not think of big projects to attract big money. For Nepal, like someone here pointed out, small power-plants spread out in different parts of the country is more logical. Also, may be these plants should be co-owned by the local district instead of 100% central government. This will give local village/government a sense of ownership. Why should locals allow flooding of valleys so some one in Kathmandu will benefit from it?

As for environment, enough mistakes have been made by many countries. We just have to point out what are those. Then we can cooperate those in our design to make ours move environment friendly. The good thing about Nepal's undevelopmentness (is there a word like that??): Nepal is like a blank paper. We can plan everything by learning from mistakes of others.

We are in a right track here... keep the discussions going.
ramaychowchow Posted on 04-Aug-03 09:08 AM

I still go for Neural's idea of hyphothetically planning. If nothing else, I am sure just for our own satisfaction this will be a good thing. Personally, I have seen big projects develop from small two page memos. My idea is to do the analysis, planning, design and keep it in record. Keep the wheels moving now and when the opportunity strikes, go for it.
I know that I am being more philosophical and not too practicle... But I want to know what IS practicle. Have we touched all the points, exhausted all the resourced and then concluded that we can do NOTHING? Also, I don't believe on doing nothing because of current political/maoist situation. These are temporary problems. Lets focus on bigger picture. These difficult time will go away. Until unless people start saying we doNOT want to develop the country, we have a shot.
czar Posted on 04-Aug-03 11:10 AM

"Build it and they will come" does not work for billion dollar hydropower projects. Maybe for lemonade stands on the lawn during summer break. For everything else there's Master Card..um..and if anyone here has one that stretches far enough to pay for ABB for even a single turnbine generator..phew..you da man !!.

For everybody else, there's the funding agencies/investor groups that require a clearly identifiable revenue stream to repay the investment. That requires adequate local consumption and revenue that makes the ROI numbers. Or, for export of excess power, a power purchase agreement has to be in place, in principle at least, before the financing package is finalized and disbursement proceed. Short of that, no joy.

Mega projects have a downside that is increasingly evident in environmental and social costs. The political environment in donor agencies, read IBRD & EU, are increasingly influenced by the mantra of sustainability and low environmental costs. That indicates dimished possibility of another Three Gorges.
Bhunte Posted on 04-Aug-03 12:19 PM

Czar ji,

What I meant there was instead of inconclusive debates forever, we could have built many power projects at a lower price then. Ofcourse, everything has to be in order before the actual project is into effect.

czar Posted on 04-Aug-03 12:35 PM

Bhuntey,
Point noted and you are correct in that.

Was it a case of paralysis by analysis. I am not so sure of this one.

Bureaucratic inefficiency and the wranglings of special interest groups brought about a stasis that may well have done a blessing in disguise perhaps. Again, as you said, having developed some hydropwer may have put Nepal in a different financial position perhaps, for better or worse.
czar Posted on 04-Aug-03 01:00 PM

If I recollect correctly, someone here had mentioned the possibility of Tibet as a possible market.

An intriguing possibility that Rebecca Mark, one time CEO of the now defunct Enron, had raised as part of the proposal for Karnali. This was an interesting. Here's some of what Enron proposed:

- To sell power to Tibet. A radical thought, given our India-centric existence. In removing India from consideration and focusing on an equally rapacious consumer of power, China, it had the power to completely change the debate. This was an opportunity to usher in new thinking and use it to our advantage vis a vis India.

- to reduce power loss and transmission costs, AC was to be converted to DC. [ I dont quite recollect if attenuation was also an issue and I have forgotten the math for this, so electrical engineers here are welcome to educate me on this and correct me if this assumptions are incorrect.]

- Once plugged in, the main Chinese grid was immediately accessible. A tantalizing prospect.

Guess where that debate went ? Six feet under. India and its agents in Nepal did all in their power to kill this debate.

[ Aside to IF: You are to be our man in Beijing and sajhapur is counting on you. In due course, the country may too. You have your work cut out for you, so get on with it, will ya ? :) ]
ramaychowchow Posted on 04-Aug-03 01:16 PM

Catch 22:
We don't have money so we can't build more hydropower (energy),
We don't have hydropower(energy) so we can't make more money....

I think (please correct me if I am wrong) one reason for all these sweatshops (nike, gap) to go to east asia is the easy avaibility of energy and manpower. I am not endorsing sweatshops but just giving an example. My point: there has to be something to show to the prospective clients. Something other than just numbers in a paper. We can't just go on and on about 83000 MW capacity. Maybe we should do new estimate and come up with number: How much electricity Nepal can produce with its present financial capacity. (Also taking consideration of environmental and other social-cultural issues.) This might give an idea of where we stand and what can be done in an immidiate future. 83000 MW is just a vague number. If half of that number is environmentally unfeasible by now then we can't be still claiming that Nepal's capacity is 83000 MW. Seems to me that number is in a dire need of reevaluations... May be the true capacity is 2000 MW as of year 2003. Just a thought.
Bhunte Posted on 04-Aug-03 01:26 PM

Czar ji,

Paralysis and analysis rhyme well!....ehehe. Well actually it is not too late for Nepal to exploit its power potentials before there is another substantial breakthrough of technology which is not immediate to my sight. Just before coming to USA, I had an opportunity for a official visit in Bihar and Gujarat on power related works. I realized that India was so power hungry-- frequent brown outs, and I wished that Nepal had plenty to give them. They seemed to be ready to buy power from anwhere feasible if they had found an alternate source of power. The power uncertainty there has productivity issues with the industries there. Ttarget=new hrefore,i earlier asserted that let the market come to us. Eversince I left Nepal, there r few power projects in Nepal like Kali Gandaki-A, Khimti, Indrawati, Seti, and the one in Laxman Ghimire's district. If we have a surplus power from these projects and we are still facing difficulty selling power to India or Tibet, then we should forget dreaming new power projects except to satisfy our own domestic needs-household and future potential industries.

Someone earlier pointed that India has immense power potential comparable to Nepal. Probably not economic one. If they had, they would have already exploited by any means. But one thing for sure, Nepal has surplus power at hand we can make India at least a "Power Das" enough to bent its knee before Nepal.
ramaychowchow Posted on 04-Aug-03 01:43 PM

China is in a huge pressure from the rest of the world on Tibet issue. Beijing has no other option but to show how good Tibet is doing now. They have to prove that Tibet will prosper only by being a part of China. Industrilized Tibet equals stable Tibet. So Tibet will be in need of electricity, a lot of them. Chinese are already pouring some money in Nepalese developments anyway. They should surely be willing to invest in Nepal for mutual benefit. I would like to find out more on this.

...We have tried over and over and over again with India in vain. "gardhan dukhisakyo dakchin herera parkhada parkhanda..." North looks more lucarative at the moment.

(I may have sounded like a capatalist/opportunistic pig here for supporting Tibet invasion by Chinese but it concerns Nepalese well being...and we are running out of options. Once Nepal is prosperous and all Nepalese are driving Volvo sedan then we all will put Free Tibet Stickers on our cars. Until then, jasko sakti wusko bhakti)
Bhunte Posted on 04-Aug-03 01:51 PM

I am poor in hydrology, but just wonder if Tibet has same power potential as Nepal do. Since Himalays serve as political boundaris , the amount of water flowing from the two faces of Himalays must be about same in both direction. Probably Arnico can explain....
rendra wasito Posted on 04-Aug-03 04:07 PM

Well that you know I am Ranjit Rana. My mother and Prithivi Pandey's wife Pratima....I mean we are long lost cousins. Pratima's mother is my mum's younger sister. My mum was Malla, daughter of Jamindar of Bardiya Kadga Bahadur Malla. Yes, my mum's brother is married to Rama Malla of Hotel Malla....So what ?

I do not like them all. I do not like the traditional Nepali restrictive Kulture. Always have to respect the decaying and dying geriatrics. I am a rebel with a cause.

I do not like the Chandra and Juddha Shamsher Clan for what they did to my Dev Shamsher Clan....All bullshit....

Okay, I remeber Prithibi Pandey the arrogant one. His father made heaps of money under Panchayat "License Rajya." He and Himalaya Pandey hanged around Khetans and Chaudhari (Binod) for providing the Marwaris license to deforrest our last remaining strands of virgin Himalayan Katha forest in Bardiya and Mahendra Nagar.

Yes, I went to STX with Yogendra Sakya, Ashoke Bhatrachan, Tenzing Lakhpa, Gaje Ghale, Kanak Dixit (Lady Mcbeth), Nepal Bhusan Chand, Rajib Raj Bhandari, Saroj Bhatrai and much more....

My message is that I owe them nothing....However, we'll be damned as we owe the future of our rivers for the next generation in a sustainable way....

Thirty years ago, they were wonders of modern engineering; today, mega-dam projects such as Egypt's Aswan have been dubbed eco-killers. While the Nile and its tributaries run dry, enough water evaporates from the Aswan (Nasser's monument to himself) dam each each year to supply all of Britain's needs, according to one study.

What worries environmentalists more, however, is the many new mega-projects planned or under way. The world's largest hydroelectric dam, the Three Gorges project in China, is but a prelude to the south-to-north project, to redirect water from Yangtze to Yellow River. This in turn could be dwarfed by a massive project proposed for India, in which 14 rivers in the Himalayan foothills will be linked via 1000 kilometres of canals, aqueducts and tunnels to replenish water supplies in the parched south. Other large dams are planned for central Africa, Spain, Canada and Indonesia.

But environmental groups warn that dams are largeley responsible for dramatic declines in the world's fresh water fish stocks, and can lead to massive silt and salinity problems in many rivers. Emptying one river to fill another can cause environmental disasters on an epic scale, as is the case already with Russia's Aral Sea.

Prithivi Pandey types brother only PUJARI for more monet like SADAM PUTRA UDAY and Quesay....Tiwariji always gun gaan for these types. Sychophancy....
Bhunte Posted on 04-Aug-03 04:23 PM

Rana ji,

Hajur ko priya Sali haru pani chhan bhane yeso Nam, thegana, fone, email sabai paun na hajur...in jest
Neural Posted on 05-Aug-03 02:48 AM

Middle Marsyangdi and Kulekhani-3 have been proposed for implementation by NEA in order to meet the power shortage from the year 2004/05 on the basis of firm, dry season generation capability, peaking capacity, construction period, commissioning
year and minimum investment cost. Studies are on going for the identification and feasibility assessment of storage projects. If an attractive appropriate sized storage is found in the course of such studies revisions will be made to the generation plan accordingly. Chisapani Karnali (10800MW), Arun -III (402 MW),West Seti (750MW), Budhi Gandaki (600MW), and the Pancheswar (6480MW) are some of the export oriented hydro projects in this category. Bureaucratic obstacles and underdeveloped regulatory policies guiding such investment have led to construction delays and foreign investment disillusionment specifically so for the mega projects.

ramaychowchow's query : "This might give an idea of where we stand and what can be done in an immidiate future. 83000 MW is just a vague number. If half of that number is environmentally unfeasible by now then we can't be still claiming that Nepal's
capacity is 83000 MW. Seems to me that number is in a dire need of reevaluations... May be the true capacity is 2000 MW as of year 2003. Just a thought. "

by calculating above figures:
10800+402+750+600+6480 = ???? ===>>>see the POWER SURPLUS (> 19GW) ------------ aru ta khojekai chhaina....kati lukiraa holaaa....tara ke garnu "Lhasa maa suun chha kaan mero buchhai"

With the domestic market forecasted to need relatively small power requirements of less than 1500 MW over the next decade in Nepal, the IPP obviously needs to eye India to market his generation. The prospects for NEA providing the services of its interconnection links to wheel the IPP energy to the consumers in India therefore offers a new dimension of business NEA can benefit from it.

bhunte dai :
"I realized that India was so power hungry-- frequent brown outs, and I wished that Nepal had plenty to give them. ........... But one thing for sure, Nepal has surplus power at hand we can make India at least a "Power Das" enough to bent its knee before Nepal."

A substantial power deficit exists, resulting in frequent load shedding in India due to the rapid growth in electricity consumption. In the near term, the generation deficit is expected to increase. The power system of India is dominated by thermal plants; some of them are very old, inefficient and expensive to operate. Even if India has a substantial hydropower potential, capacity expansion is insufficient to meet load growth. As several hydropower projects in Nepal are competitive with new generation projects in India, there is a substantial market for power export from Nepal to India. LET's wish for
making India " Power DAS" and "will show them DEVDAS". AND, i was expecting this word "SURPLUS" (since beginning) that u have mentioned above, which is the main concept for the economic rent of hydro power....Hydroelectric generation relies on the exploitation of Nature's resources and, therefore, can be expected to give rise to economic rent. Rent at hydroelectric sites can result from the limited number of sites that are suitable for hydroelectric development, as well as the ability of some hydroelectric sites to generate electricity at lower cost than other alternative generation technologies.


In India, the growth in power availability has not been able to keep pace with the growth in power demand. The demand of electricity in the country has been higher than the level of supply for the last several years. As in Nepal, electricity planning in India is also mainly focused on supply side options. Such an approach is highly inadequate to deal with the problems of rapidly growing electricity demand. The principle reasons behind this may be - the financing of the power plants and supply-one plans mostly depends on fossil fuel which are unpredictable in nature in terms of price and availability.
According to the Annual report of the Ministry of Power of India, India is in cooperation on exchange of power with neighbouring countries like Nepal and Bhutan. India and Nepal have already signed an agreement for exchange of power. Presently, a number of interconnections exist at 132 KV level, 33 KV level and also at 11 KV level between India and Nepal. The level of power exchange between India and Nepal is around 50 MW and this may go up to 150 MW in future.

czar:
"- to reduce power loss and transmission costs, AC was to be converted to DC."

----- this can be done, however, DC is more expensive than AC as many other Power Electronics components will be utilized. Another option can be - GO FOR Distributed generation (DG) technology. DG can lower costs, improve reliability, reduce emissions, or expand energy options. DG may add redundancy that increases grid security even while powering emergency lighting or other critical systems.























rendra wasito Posted on 06-Aug-03 12:03 AM

Let the Rivers of Nepal run free

Tonight you're trysting with a storm
friend of my hearth oh friend
the heavens rain despair
eyes emptied of sleep
I unlatched the door, oh love
I look out again and again
friend of my heart oh friend

I can't see a thing outside
can't guess your path
far off on some riverbank
at some forest's edge
in thickest darkness
you're crossing over
friend of my heart oh friend
ujol sherchan Posted on 06-Aug-03 03:41 AM

Can anyone, preferably an electrical engineer or water resource economist, please enlighten me on how come the Nepali consumer has to pay almost 7-9 times more than his/her Bhutanese counterpart for a unit of electricity? I know for a fact that the charge for per unit electricity in Bhutan is one of the lowest in the world, if not the lowest, while in Nepal it is just the opposite: one of the highest in the world, if not the highest. Given that Nepal and Bhutan are similar countries in terms of physical terrain and water resources (although Bhutan's potential capacity is roughly 1/3 rd that of Nepal), how come we see such a wide disparity in the rate differential? With both Nepal and Bhutan looking to export electricity to India, is it even reasonable for Nepal to expect to compete with Bhutan, especially in markets in the eastern part (close to both Nepal and Bhutan) of India, for instance? Well some in Nepal say we will be serving different markets in India so the question of competition doesn't arise...but in the convuleted world of water politics, I'm not so sure.

Given this reality, methinks that carefully evaluating Nepal's hydropower scenario against that of Bhutan may give us a basis to rethink and reorient our hydro-policy. My question is: is there something we could learn from the Bhutanese model?

A stab at any of the above questions by anyone will be highly appreciated.

Ujol
rendra wasito Posted on 07-Aug-03 06:56 PM

Sherchanji,

The economics of big dams were projected to be viable in case one barrel of petrol rose to be US$ 100 in the big oil shocks of early 1970s. Now, you can observe that one barrel of petrol is hovering around US$ 25 to 35 currently. This implies that had the unit price of petrol (1 litre) been US $ 4 then the unit price of electricity in Kilo Watts would had been hypothetically US$ 1. This has not happened. In fact reverse is the case. In other words the unit price of petrol has gone down and reciprocally the unit price of electricity has significantly increased. This implies an unit cost of electricity is now US $ 4 and the unit price of petrol is now US $ 1.

Big dams are expensive to insure and not affordable. The electricity operators then has to pass the huge costs to you and me.

Governments do not subsidise these utilities any more for social benefit as it is not sustainable in terms of social cost.

Privatisation is occuring in these utilities, and government can tax more on the consumer and operators as they see it being a perfect cash cow.

In sum, I have really oversimplified the explanation. One could write a good PHD thesis on this matter.

I have tried.

Namaste.
Bhunte Posted on 07-Aug-03 07:11 PM

Those interested in the trends of economic rents for different sources of energy globally, i suggest one to read an article by

Chaktravorty et al 1997 "Endogenous substitution among energy resources and global warming", Journal of Political Economy.

Math intensive but lot of intutions as well.
kathmanduite Posted on 07-Aug-03 10:19 PM

To my knowledge, the feasible hydro power capacity is below 20000MW, which is still quite huge amount of power. but selling power to india.. is still be a dream, even if we had surplus electric power. actually india wants to sell power to nepal and actually selling it.. i heard that indian electric authority in bihar sell power to nepal with load shading in their part to get money from the nepal electric authority.. as they get much more payment than they could get from the users there..
Neural Posted on 08-Aug-03 04:55 AM

ujol ji,

Nepal's hydropower schemes tend to be expensive, because of the terrain and the lack of access roads. Nepalese schemes tend to work out an overall cost of $ 2-3,000 per Kw of capacity, whereas in India the figure is somewhat closer to $1,000. U can see the cost difference here only. The cost of equipment also plays a vital role in the equation.

Major reasons for high electricity costs in Nepal can be
** economies of scale in power supply
** high hydro generation costs in Nepal
** isolated geography of Nepal and
** low system load factor

In a poor country like Nepal, it is not just the lack of supply, which restricts electricity consumption, it is also the affordability. The potential market for power in India is NREB (Northern regional electricity board), which is large indeed and faces chronic power shortages which are likely to continue in the foreseeable future. This region could considerably benefit from power exports from Nepal. India may have a demand for power estimated at an additional 100,000 MW over ten years (by 2015), but before it agrees to buy relatively expensive hydro power from Nepal, it is bound to see if it can generate its own power cheaply.

By 2020, Nepal's total domestic power demand is estimated to be around 1700 MW, compared to a hydro potential of about 43,000MW. Nepal needs to develop more medium-size hydro projects to meet its own power demands; it may require about 700 MW by 2007 (at present total capacity of 527.5 MW, which includes public sector 412.5MW and the private sector 114 MW). While on the other, they point out, the need to create a conducive environment for bilateral co-operation for power exchange and export with India.

======

kathmanduite ji,

"actually india wants to sell power to nepal and actually selling it.. i heard that indian electric authority in bihar sell power to nepal with load shading in their part to get money from the nepal electric authority.. as they get much more payment than they could get from the users there.. "

I am not sure of all what u have heard. What I know from the System Planning dept. of NEA that Nepal has a commitment to supply power to Raxaul, Jogbani, Thakurgunj and Balmikinagar in India, adding up to a load of approximately 8MW in FY1996 and 11 MW in FY 1997. This load is considered as a part of the Nepal system. The power export to Ramnagar in India has as occasional character, and will only be met when Nepal has a power surplus, primarily during the wet season. Total export to India in FY 1996 was 91.6GWh. Power was exported to Raxaul, Jogbani, Thakurganj and Balmikinagar in all months of the year.

thank u


===

Bhunte dai,

i will go thru' that article...thanks.... u might know the followings too. If one is interested regarding hydro rent, resource rent, it's basic concept, evaluation, the followings are very much important. Hydroelectric Rent in Canada was first studied in the year 1982 by Bernard et al. Later Zuker modified smth in it's methodology.

****Bernard, J.T., Bridges G.E., and Scott A., 1982. An evaluation of potential Canadian hydro electric rents.University of Colombia, Department of Economics, Canada.

****Zuker,R. and Jenkins, G.P., 1984. BLUE GOLD, Hydroelectric rent in Canada. A study prepared for the economic council of Canada.
rendra wasito Posted on 08-Aug-03 08:55 PM

Chakravorty et al are all theoreticians in economy. He is well known to shed light in this subject through very creative hypothesis and propositions. He really expands our mental horizons with delight.

However, his hypothesis and propostions are based on plastic Mc. fantastic assumptions and they only remain venerable within the four walls of academia's ivory tall tower. One can then argue about his theorems in a pin head till the cows come home....

In fact, this is the down fall of economics. Models created and relied are too static and the real world's problems are very dynamic, organic and complex.

The debate here seems to be in the interests of the engineers and other planner types....I am not interested in your wasteful consumption oriented simulation and stimulation kudos....

I beg to differ from you all.

I recommend you that small green dams are beautiful and can be customised for the markets of India by charging premium. Thus, learn about green brand development and in maintaining green brand equity.

I recommend that you all do green market research in terms of solar, wind and other alternative needs and wants.

That is the way for the future!

You owe your next generation to preserve the eco-himalyan system of the RIVERS now. This is a moral demand of the Nepalese grass root people.

I remain your humble BATABARAN KARMACHARI
Bhunte Posted on 09-Aug-03 01:59 AM

Rendra dai, too critical remark ... actually Chakravorty et al's work was published on the eve of Kyoto protocal. I went through that article few years ago, and the intutions are reflected in the simulated model results. it is not static but dynamic one. as you know economic models heavily relies on assumptions...there is no way to do natural experimentation for various reasons as economics is not something cultured in a petridish.. Kya ho Rendra dai le je pani Hariyo Chasma lagayera herne!! Anyway the following song is dedicated to you by this bhunte bhai

Hariyo Sajha Mathi
Halo Jotne Sathi

Ho Ho Rendra Ho
Ho Ho Wasito Ho

Bhunte Posted on 09-Aug-03 02:01 AM

I am for the small scattered projects given the risks in nepal's weak geo-politics. However, I also dont rule out the bigger projects like Aswini Dam, etc.
rendra wasito Posted on 09-Aug-03 07:54 PM

A hey Neural and all lets all go FERAL>>>>>>>>>JUNGALEE>>>>> TO THE WOMB OF GAYA MA or inside the womb/tomb/vugna of MOTHER Earth.

Aswan dam be damned.
rendra wasito Posted on 09-Aug-03 09:12 PM

Bhunte bhai,

Reminds me a song from a gaine from Pokhara near the green and beautiful Fewa lake. It went like this:

Pokhara ko Narain Bhunte Damai, tunte samia runcha
Kin rohis bhanda swasni paine bhancha

(Gaine sarangi increases tempo with higher pitch....)

PS: Tunte implies toori dhukur.

Remeber Paul Robson singing Old Man River for the freedom flow of the Missisipi....I am not the old man river....here I just return from Northern Territories Bungle Bungle National Park....stopped at Humpty Doo...remembered reading the famous novel 'We of the Never Never'....Our mountain's glaciers are retreating due to green house gas effect....Some indicated that I should write a sequel to han Su Yin's 'Mountain is Young'...I of the ever ever may do so as the Old Man Mountain....standing tall as the sky cathedrals called HIMALAYAS....one day....

Economics is to me a science of dismal choice...thus I move to take up marketing in green manner as I have a green thumb and what ever I touch grow nicely...small dams ratifed by Green Peace is the way to go as a green brand....To sell to India in premium rent I can use counter trading a much better way to get super rent than the static concept of Chakraborty et al.

Counter trading as a pricing model will suit India as it will be attrcated to pay for in 3 parts cash, six parts barter exchange with our elactricity for us other Indian goodies and one part US $.

That is about things green and organic and dynamic like the full and free flow of Maha Ganga from the mountain to the mouth of the Hoogli Ghat of Bharat Barsa.

mister_sajha Posted on 09-Aug-03 10:10 PM



"Reminds me a song from a gaine from Pokhara near the green and beautiful Fewa lake. It went like this:

Pokhara ko Narain Bhunte Damai, tunte samia runcha
Kin rohis bhanda swasni paine bhancha

(Gaine sarangi increases tempo with higher pitch....)

PS: Tunte implies toori dhukur."
----------------------------------------------------------------------------------------------------------

Bhunte bhai,
Aba ta tanna pet bharne gari aghaiyo holani...hoina????????????????

----------------------------------------------------------------------------------------------------------

Rendra Wasito,

you writes so well- more than commonses guffs...you are unbeatable!! keep doing it ; however, I doubt you will find your level mate here....

Bhunte Posted on 10-Aug-03 05:51 AM

Rendra Washita,

You claim yourself as a green grass eating environmentalist yet can't clean your own polluted pervert maggot filled mind, I just wonder how can you clean the nature? Yea, economics is a dismal science, but show me how many of environmentalist have got nobel prize for their nobel works. I don't believe on so called environemntalist who use 8-cylinder heavy gas consuming car, give big big talk from his revolving chair, always loves to fly in Boeing 747, loves to marry a long legged blue eyed kuiri rather a real nature blended indiginous Chepangs or Tharus, self proclaims to be as economist as well as environmentalists the disciplines of which are like two poles of the earth, and many more....Anyway meanwhile enjoy the sensation of that tuntura like your favorite Oyster. Also, Gu lai chalayo nak bhari chhita...you yuk yuk....

Master-Sajha ji,

I am not surprised you follow a psychos---bheda ko bathan bheda sanga, right?
Bhunte Posted on 10-Aug-03 05:58 AM

Further, environmentalist like Rendra are no more like "Jo Gaun ko Mukhiya, Oohi Bato Haguwa"...Good good keep up bashing ameobic greeny stuffs..
Bhunte Posted on 10-Aug-03 06:00 AM

Read "....no more like ... in the last post as....no more than....
mister_sajha Posted on 10-Aug-03 11:20 AM

Bhunte ji,

I feel discomfort to say it, but you know I have to do it.....

Unfortunately, mero TOLE ma euta kukur chha....jasko nam Bhunte nai ho...pls I am serious I do not know who put your name to him.....

Aba, you know, TOLE ma basne kukru, right? Tyo TOLE ma euta chiya pasal chha chokai ma.....jaba jaba, tyo Chiya pasale le left-over bhat lagera dinccha, tyo Bhunte dog le khadai khadaina.....you know why??? Tyo BHUNTE kukur lai AACHI khane bani parisakeko chha.....Eating AACHI is conventional to him ..ke aba...

khoi ke bhanu....
Bhunte Posted on 10-Aug-03 11:43 AM

Bastard Master Sajha mahasaye jyu,

Ani tyo kukkur ko achi khane tyo hamri sajha tol ko tehi master sajha Maha kukkur ...tsk tsk tsk

Ani tyo rendra ko tyandra chusdai chhau hola ni...ah ah ah looser....
mister_sajha Posted on 10-Aug-03 01:22 PM

If am Bastard, you are what???

Master Bastard! or Bastard to the power 2 or X !

Hahahaha....yesto kaji le Nepal ko Economic policy banune re ....hahaha....
you Joker.......


Om Shanti...Buddam Saranam Garchhami...
Bhunte Posted on 10-Aug-03 02:10 PM

As i said, gu lai chalayo nak bhari chitta...yuk yuk MS
rendra wasito Posted on 10-Aug-03 05:38 PM

Bhunte aka Tunte biradar,

Me think you have mental missing marbles too(each marbles are personal charactersitic traits being normal and missing implies abonormality in Oz lingo)....Why ? Being too lonely as a Sadbichar Nepali Ahkada Shivalingam Naga Baba with long mated jogi puri giri bharati hair hem locks....got your mental perception photo of your self my Tunte Phuche Lingam Naga NEPE Baba....

Ja ja ja birdar....open your wing nuts (ears oz lingo) and clear your dick head and block head and remebee me your birdar that he is sitting in his donney or thunder box (seat of the toilet) and reading his ever green ja ja ja Ganja material made recycleable newspaper.

See ya birdar as I have to go to the hup hup after squating in me throne the thunder box....

Kukuboras are all laughing and time for me to get the green grass....

I no psycho as me have all missing marbles fully in me block head/dick head....

Why you wank too much bidar ? Did you eat bhutle saag and drink narsingh twak too much as you your self gone el psycho el tropo el.............................kapis !
Bhunte Posted on 10-Aug-03 06:02 PM

Dear Incest Ranjeet Chummusa Jange Birdar Ranatigrina ji,

hajur ko santan darsantan ko suddikaran pahila garauna ta. then i will call u as a descent environmentalist...hahahaha...

ujol sherchan Posted on 10-Aug-03 10:38 PM

Nice to read Rendra and Neural's stabs at my questions, even though the answers offered are far from satisfactory. Looks like Nepali experts are oblivious to what is happening in the hydropower sector in Bhutan, our potential competitor. And this is unfortunate given that we have always lived in a game-theory world, although the theory bit came much later. It is still not clear to me how Bhutan is able to charge about 1 Nu (1 Nu= NRs. 1.60) for unit electricity whereas the average Nepali household pays about NRs. 7-9 (5-6 times more) for the same amount , given that we are both faced with similar cost structures owing to tough terrain, lack of access to roads and expensive equipment (some of the reasons cited by Neural). On the matter of economies of scale, it would seem Nepal enjoys greater economies of scale given its greater potential production capacity and greater domestic market based on population measures (32 times that of Bhutan).

Part of the high per unit charge could possibly be explained away by the fact that the rich and the powerful in Nepal get away without paying for electricity. It is not uncommon to read about ministers and certain politicians who have not paid huge amounts in electricity bills for years in newspapers. It seems that the poor and the middle class are subsidising the very rich and powerful - and no wonder the charge is high. Also faced with the high charge, the incentive to 'steal' power is great even by the poor and the middle class - which makes the matter worse for the average consumer. Or that the charge is front-loaded so that the investors may recoup their investments quicker. But the latter would be acceptable to us only if this were short term and we had an assurance that the rate would be revised downward later...but we have no basis to believe that this will happen. Looks to me like the average consumer is getting screwed big time.

Having said this, I do not think it is such a swell idea to export electricity when our own full potential capacity is untapped and our country's ' demand for electricity is largely unmet. China [or for that matter Tibet] will not buy electricity from Nepal, so our only potential market is India. In return for providing access to the Indian market (the only market for Nepal's electricity), India will demand concessions so big (think of Shylock's 'pound for a pound') that it would not be worth it. Besides India is also keen to develop its own hydropower. I doubt the full ramifications of exporting electricity to India have even been worked out.

On a positive note, I do, however, agree with many that exploring decentralised renewable energy options (solar, wind, micro- and mini hydro, biogas, etc) should be our approach. This is a cautious approach, and squarely in the national interests. We should think locally, and think 'power to our own people first', yes pun intended again.

Best,
Ujol
rendra wasito Posted on 10-Aug-03 11:48 PM

Ujol,

I only comment on the excessive cost of big dams.

Now, I comment on the reasons as to why there is perception that the cost of electricity in Nepal is intrinsically high.

1. The intrinsic cost of electricity is basically low, as would be expected from perennial rivers with steep gradients. The price has been padded up costs with "artificial" cost elements under the cost-plus tariff regime. This although is a sound principle, has not been implemented with accuracy. This faulty implementation has been strongly advocated by multilaterl lenders, and blindly followed by the borrower.

2. The reduced load factor is a result of preoccupation to meet the evening "lighting load", without due consideration of industrial and other productive loads which occurs during the day and the night. Many hydro projects are designed with "daily storage ponds", which precludes the use of the turbines and generators during non-peak hours (in the dry period) and reduces the turbine generator capacity utilisation. Given the abundance of hydro plant locations that are yet to be developed, it is clear that, the same turbine-generators could have "firmed-up" the capacity of Nepal electricity grid and produced about two times more electricity (more) with the same installed capacity. The cost-plus price of electricity would have accordingly been nearly halved.

3. The government receives the grants for turbines-generators from the donors and re-lends it to Nepal Electricity Authority at 10.5% on the book value, mainly to account for devaluation of the currency. It is note-worthy that, given the nature of these grants as "tied aid", the book values are invariably higher than their economic values (the international bid price). However, there are no corrective factors used to bring these book values down to their economic values. This in essence is a form of indirect production tax applied to electricity generated by NEA. This is beneficial for the government in collecting the revenue, although it is highly detrimental to the economic development process. The financial cost of the investment to NEA is increased, with adverse effect on the cost-plus tariff.

Remember, India cannot afford even cheap electricity from Nepalor even cheaper one from Bhutan. Why ? Because, most of the Indian Electricity Boards are bankrupt.

Ley us take a concrete example. Unit cost of electricity generation depends on capital investment, amortisation period and system load factor. The investment cost is normally about US$1500 per KW and the amortisation period is about 20 years. However, the system load factor, which can be made as high as 80%, is unfortunately at about 30% in Nepal. For a just US$ 1500 per KW plant, the cost per Kwh or unit, is 2.51 cents at 80% load factor. And it jumps upto 7.47 cents per unit at 30% load factor, because of under utilisation of turbine-generator capacity. The transmission and distribution coss, is also high as it includes about 25% loss in the system. This "loss" is largely due to theft of electricity, and is not transmission and distribution loss. The total cost (generation, transmission and distribution) is therefore around 3 cents at 80% load factor (and 7.9 cents at 30% load factor). So, load factor needs to be reduced to come to a low cost tariff regme, which can be done by using electricity in production processes in industry, agriculture and transport sectors.

Therefore, the present tariff of about 10-12 cents, which is nearly four times the intrinsic cost, grossly distorts the electricity market in Nepal. Electricity has been "priced out" of many viable applications, in irrigation pumping, industries and transportation. The impact of the price distortion is very significant, because it makes many industrial and other applications economically infeasible. The "comaprative advantage" and "competitive advantage" is thus non sustainable in strategic terms with Bhutan. Bhutan actually subsidises its electricity generation. Nepal subsidies diesel (cross subsidised with petrol). Bizarre Nepali vision, mission and objectives and strategies....in terms of a national water resource policy.

I hope this will be 100% better reference than Neural's raving and rantings....

Namaste.
Bhunte Posted on 15-Aug-03 08:28 PM

Surplus energy export to India
(nepalnews.com mr Aug 16)

Nepal will come a step closer in exporting its surplus electricity to India when high level power authorities of the two countries meet here on Tuesday and discuss it, a published report said Saturday.

"The meeting will be focused on a detailed action plan to effect the increase in power exchange purely on commercial basis," The Kathmandu Post quoted Dr. Janak Lal Karmacharya, managing director of Nepal Electricity Authority (NEA), as saying.

"With this meeting we intend to open a market for our surplus electricity in India," he said. "Once we make a breakthrough. We can attract more foreign investment."

The meeting will also finalise electricity tariff that Nepal intends to export to India.

Nepal has already formed a committee for the talks, comprising representatives from NEA, Department of Electricity Development and Ministry of Water Resources.

Similarly, an Indian team would be led by Power Trading Corporation chairman Tantra Nath Thakur, and accompanied by representatives from Power-Grid and Central electricity authority, the report said.

With the completion of Kali Gandaki 'A' power project, Nepal is currently in a position to export 80 MW (upper limit) electricity during monsoon and 30 MW during dry season, according to NEA.

ozdownunder2 Posted on 15-Aug-03 08:37 PM

Tantra Nath Thakur can get more electricity...when he is electrified and becomes a barbequed charcoal.

Who you kidding Tunte ?
Neural Posted on 15-Aug-03 08:49 PM

Bhunte dai,

yeah, the news is good.

"With the completion of Kali Gandaki 'A' power project, Nepal is currently in a position to export 80 MW (upper limit) electricity during monsoon and 30 MW during dry season, according to NEA."

Let us hope for other forthcomings candidate power projects.

"Sansar ma aasambhav bhanne sabda murkha haruko sabda kosh ma matra painchha"
Just came to know y'day only who quoted the above. Thanks to KaLaNkIsThAn.


Bhunte Posted on 15-Aug-03 09:10 PM

Neurarl bhai,

i wanted to call you while i was in Tokyo, but no luck finding your phone or hotmail....on my next trip there i hope to see ....Is tokyo always gloomy? No sun and found the city arrested under the dark brown clouds....
Neural Posted on 15-Aug-03 09:16 PM

Bhunte dai, please check your email after sometime.
ozdownunder2 Posted on 15-Aug-03 09:17 PM

Tunte that is why Asia is getting close to biggest environmental disaster and big dams are no answer.

Try SOLAR and WIND !

What is wrong to do more pujas of Surya and Hanman's Pita Bayu Dev ?

No !
Bhunte Posted on 15-Aug-03 09:20 PM

Export of surplus power should be purely on commercial basis. I stand behind this idea. Not on political or any other favoritism. As noted earlier, if we have a product market will come to us.
Bhunte Posted on 15-Aug-03 09:28 PM

ozdownunder2,

just stick to one nick. why u want to be 'chadam-bhesi'?
yes, agree with you that smaller and scattered power projects may be suitable for nepal given its geo-politics reasons. however, when we are more capable larger dams may not be ruled out. india's economy is growing and it needs our power eventually.