Necessary Reforms on Integrated Nepal Power System (INPS) and Role of Government Sector: Lessons to Learn from Developed Countries

Abstract

This paper analyzes the current status of Integrated Nepal Power System (INPS) in terms of its market model, technical model, investment and policies. Also, the reforms bought in the electricity market and power system in different developed countries like South Korea, USA, China, Canada, UK, etc has been studied. The growth of the power market, its deregulation, the results of such deregulation etc has also been studied. The challenges in policy making, steps involved in privatization and their relevance in Nepals context are discussed. Based on these previous experiences of these countries and the current status of INPS, a series of suggestions has been made in this paper. Mistakes made and challenges faced by developed countries during their restructuring phase, considerable efforts towards reforming their power sector and the path they laid as pioneers are the main input to this paper. This paper, hence, provides a brief historical profile of developed countries power system and power market and enlists all the techno-engineering, restructuring, investment and policy level reforms possible in INPS. The brief account of past experiences in power sector reform by various countries, their effect, and relevance in INPS will provide power system planners in Nepal a basic track towards Nepalese power sector reform and restructuring.