Technical investigation of Nepalese electricity market – A review

Abstract

The article reviews the options of renewable energy technologies with the background of long-lasting power shortages that Nepal has been facing and examines the energy-related policies of Nepal and provisions to promote renewable energy technologies in Nepal and its regulatory framework. It analyses the pertinent energy policies related to energy generation and distribution. The research focuses on the context of the renewable energy sector of Nepal and its future. The research has found a positive role in renewable energy policies for adoption of renewable energy technologies and poses a positive impact on electricity generation. The article has also reviewed and analyzed the trend of electricity generation, peak demand and the resulted import to meet the gap. The almost linear electricity generation of Nepal Electricity Authority (including generation of Individual Power Producers against the steep gradient of peak power demand has ultimately increased the power purchase from India pushing towards unsustainability. It shows that energy policies are not up to the optimal. The research has further analyzed the impact of per capita GDP on electricity per capita by regression analysis. The analysis has found, higher the GDP per capita would increase the consumption of electricity per capita. The paper discusses issues and barriers for promotion of rural electrification and suggested economical, technical and geographical to be the three most pertinent barriers in developing countries.