Electrification in the Mountain Kingdom: The implications of the Nepal Power Development Project (NPDP)

Abstract

This article explores implications of the Nepal Power Development Project (NPDP), a scheme funded by a consortium of multilateral donors, including the World Bank and the Government of Nepal, to promote grid-connected hydroelectricity, off-grid microhydro energy, and transmission and distribution upgrades. After explaining its methods of data collection – namely research interviews, field research, and a literature review – the article explores the specific components of the NPDP as well as its progress to date. The most successful part of the project focused on Microhydro Village Electrification and distributed more than 250 units to 50,000 households in less than ten years. The article then delves into the delivered benefits of the NPDP before identifying a series of technical, economic, political, and social challenges. It concludes by highlighting how community involvement and mobilization, institutional diversity, reliance on simple technologies matched in proper scale to energy end-uses, maintenance and after sales service, flexibility, and restructuring can enhance the effectiveness of energy development programs.