National Energy Strategy of Nepal 2013

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National Energy Strategy of Nepal 2013 Current Energy Scenario Government of Nepal Water and Energy Commission Secretariat Singha Durbar, Kathmandu National Energy Strategy of Nepal 2013 Kathmandu i Current Energy Scenario Table of Contents Page No. Table of Contents List of Tables List of Figures Table of Contents ........................................................................................................................... i Abbreviations ........................................................................................................................................... vii Background ................................................................................................................................... 1 Global Energy Scenario ................................................................................................................ 2 National Energy Scenario ............................................................................................................. 7 1.1.1 Traditional Energy Resources .................................................................................................. 7 1.1.1.1 Wood fuel Resources............................................................................................................ 7 1.1.1.2 Animal Dung Production potential ....................................................................................... 11 1.1.1.3 Agricultural Residue Production Potential ........................................................................... 13 1.1.2 Commercial Sources of Energy .............................................................................................. 15 1.1.2.1 Hydro-Energy Resources .................................................................................................... 15 1.1.2.2 Coal Resources .................................................................................................................. 20 1.1.3 Renewable Energy Resources ............................................................................................... 21 1.1.3.1 Solar Energy Resources ..................................................................................................... 21 1.1.3.2 Wind Energy Resources ..................................................................................................... 22 1.1.3.3 Biogas Resource Potential .................................................................................................. 23 1.1.3.4 Micro-Hydro Resources ...................................................................................................... 26 1.1.3.5 Other Biomass Waste Production Potential ........................................................................ 26 Energy Consumption Scenario ................................................................................................... 28 1.1.4 Energy Consumption by Fuel-types ........................................................................................ 28 1.1.4.1 Traditional Fuel Consumption by Sectors ........................................................................... 29 1.1.4.2 Commercial Fuel Consumption by Sectors ......................................................................... 30 1.1.5 Sectoral Energy Consumption ................................................................................................ 31 1.1.5.1 Residential Sector Energy Consumption ............................................................................. 31 1.1.5.2 Industrial Sector Energy Consumption ................................................................................ 31 1.1.5.3 Transport Sector Energy Consumption ............................................................................... 32 1.1.5.4 Commercial Sector Energy Consumption ........................................................................... 32 1.1.5.5 Agricultural Sector Energy Consumption ............................................................................ 33 Current Energy System Analysis ................................................................................................ 33 1.1.6 Dwindling traditional sources of energy .................................................................................. 33 1.1.7 Increasing imports of petroleum products ............................................................................... 33 1.1.8 Some current facts on energy economics .............................................................................. 35 1.1.9 Dismal situation of electricity supply ....................................................................................... 36 1.1.10 Problems in energy sustainability and security ..................................................................... 36 1.1.11 Some options for energy security and sustainability ............................................................. 37 Current Energy Policies .............................................................................................................. 38 1.1.12 Periodic Development Plans ................................................................................................ 38 1.1.13 Hydropower Development Policies 1992 and 2001, Water Resources Act 1992, and Electricity Act 1992 ................................................................................................................ 38 1.1.14 Water Resources Strategy 2002 and National Water Plan 2005 .......................................... 38 1.1.15 Nepal Electricity Regulatory Commission Bill ....................................................................... 39 1.1.16 National Electricity Crisis Resolution Action Plan 2008 ........................................................ 39 1.1.17 Task Force for Hydropower development ............................................................................. 39 1.1.18 Local Self-Governance Act, 2055 (1998) .............................................................................. 40 1.1.19 Rural Energy Policy 2006 ..................................................................................................... 40 1.1.20 Forest Sector policies and Forest Act, 1992 ......................................................................... 41 1.1.21 Petroleum, Coal and Natural Gas Sub-sector Policy ............................................................ 41 1.1.22 National Transport Policy 2001 ............................................................................................ 42 Current Institutional Situation ..................................................................................................... 42 Chapter 2: Energy Issues in Nepal ................................................................................................................................ 43 General Issues ............................................................................................................................. 43 2.1.1 Energy Classification .............................................................................................................. 43 2.1.2 Energy Poverty ....................................................................................................................... 43 2.1.3 Integrated Energy Planning .................................................................................................... 43 i Current Energy Scenario Specific Issues ............................................................................................................................. 43 2.1.4 Issues on Traditional Energy .................................................................................................. 44 2.1.4.1 Policy Issues on Traditional Energy .................................................................................... 46 2.1.4.2 Institutional Issues on Traditional Energy ............................................................................ 47 2.1.4.3 Environmental Issues on Traditional Energy ....................................................................... 48 2.1.4.4 Social Issues on Traditional Energy .................................................................................... 49 2.1.4.5 Economic and Financial Issues on Traditional Energy ........................................................ 50 2.1.5 Issues on Commercial Energy ................................................................................................ 51 2.1.5.1 Technical Issues ................................................................................................................. 51 2.1.5.2 Policy Issues on Commercial Energy Sector ...................................................................... 52 2.1.5.3 Institutional Issues on Commercial Energy Sector .............................................................. 53 2.1.5.4 Environmental Issues on Commercial Energy Sector ......................................................... 54 2.1.5.5 Social Issues on Commercial Energy Sector ...................................................................... 54 2.1.5.6 Economic Issues on Commercial Energy Sector ................................................................ 55 2.1.6 Issues on Renewable Energy Sector ...................................................................................... 56 2.1.6.1 Technical Issues ................................................................................................................. 56 2.1.6.2 Policy Issues on Renewable Energy ..................................................................................
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