Power producers suggests govt to reduce fuel dependency on India
Wed, Nov 4, 2015 11:28 AM on External Media,
Independent power developers have said Nepal should sign fuel import agreement with third countries for energy security.
Officials of Independent Power Producers Association of Nepal (IPPAN) have suggested that the government limit fuel imports from India at 40 percent and source the rest from other countries. Speaking at a press meet organized in Kathmandu, IPPAN President Khadga Bahadur Bisht said that fuel diversification is important from strategic point of for landlocked countries like Nepal.
IPPAN has also welcomed the government decision to import petroleum products from China. "Nepal should also study the possibility of importing hydropower from recently completed plans on Brahmaputra River," he said, adding that the country should sign Power Trade Agreement (PTA) with China.
Nepal signed PTA with India last year. But the agreement is yet to come into implementation.
IPPAN has also suggested that the government increase petroleum reserve capacity to 100 days from existing 17 days, diversify energy sources, and put focus on hydropower development. It has also asked the government to reduce dependency on fossil fuel by promoting use of electricity for different purposes.
Experts claim sufficient hydropower generation, introduction of electric vehicles for mass transportation, and increased use of electric stoves for household use can reduce consumption of fossil fuel by 43 percent.
Officials of IPPAN also said Nepal Electricity Authority (NEA) was hindering hydropower development by preparing suppressed and conservative forecast. Though studies say the country can consume 6,500 MW of hydropower at present, NEA says country's energy demand stands at around 1,300 MW, they said.
"NEA's reluctance to sign power purchase agreement (PPA) is discouraging independent power producers like us," IPPAN officials said in the press meet. "Several ready-to-build projects are failing to achieve financial closure due to NEA's reluctance to sign PPA."
Country's energy demand is increasing by 100 MW annually, but power generation is growing by less than 50 MW.
'BLOCKADE INFLICTS REVENUE LOSS OF Rs 5.5b ON HYDRO PROJECTS'
IPPAN officials say the delay in reconstruction of hydropower projects damaged by the earthquake has been affected by the Indian blockade, inflicting revenue loss of around Rs 2.5 billion.
Reconstruction of many hydropower projects, including Upper Bhotekoshi, with combined capacity of 85 MW, has been affected by the blockade. These projects were expected to be ready for power generation within the current fiscal year. Similarly, the blockade has affected several undergoing projects, with combined capacity of 100 MW, which were expected to be connected to the national grid in this fiscal year, according to Kumar Pandey, secretary general of IPPAN. "These projects will lose around Rs 3 billion," he added
Projects like Upper Marshyangdi (50 MW), Upper Madi (25 MW) and Upper Chaku (22 MW) were expected to start generation at the beginning of this fiscal year. However, shortage of petroleum products and construction materials because of the blockade has construction works, according to Pandey.
Source: Republica
