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Nepal`S Energy Sector Vision 2050 A.D

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Nepal`S Energy Sector Vision 2050 A.D GOVERNMENT OF NEPAL WATER AND ENERGY COMMISSION SECRETARIAT SINGHA DURBAR, KATHMANDU NEPAL CONSULTING SERVICES FOR PREPARATION OF LONG TERM VISION OF NEPAL’S WATER RESOURCES AND ENERGY SECTORS NEPAL`S ENERGY SECTOR VISION 2050 A.D. NOVEMBER 2013 CONSOLIDATED MANAGEMENT SERVICES NEPAL (P.)LTD. 126 GREEN HOUSE, BHADRABINAYAK MARG, THAPAGAON, NAYA BANESHWOR GPO BOX 10872, KATHMANDU-10, NEPAL Preparation of Long Term Vision of Nepal Final Report on Energy Sector Vision 2050 A.D. TABLE OF CONTENTS ABBREVIATIONS .......................................................................................................................................................... EXECUTIVE SUMMARY .............................................................................................................................................. x CHAPTER 1 .................................................................................................................................................................. 1 INTRODUCTION........................................................................................................................................................... 1 1.1 Rationale for Long Term Vision for Water Resources & Energy Sectors .................................................. 1 1.2 Long Term Vision Formulation Approach .............................................................................................. 2 1.3 Long Term Vision Formulation and Attainment Process ......................................................................... 2 1.5 Basis of the Vision 2050 ..................................................................................................................... 2 1.4 Structure of the Vision Document ........................................................................................................ 3 CHAPTER 2 .................................................................................................................................................................. 5 GLOBAL SCENARIO ................................................................................................................................................... 5 2.1 Current Global Scenario ..................................................................................................................... 5 2.1.1 Traditional (Biomass) Energy ................................................................................................... 5 2.1.2 Commercial Energy ................................................................................................................ 5 2.1.3 Renewable Energy ................................................................................................................. 6 2.2 Current Regional Scenario .................................................................................................................. 8 2.2.1 Traditional (Biomass) Energy Sector in South Asia .................................................................... 8 2.2.2 Commercial Energy Sector in South Asia .................................................................................. 9 2.2.3 Renewable Energy Sector in South Asia ................................................................................. 10 2.3 Current Major Trend in Development and Management ....................................................................... 13 2.3.1 Traditional (Biomass) Energy ................................................................................................. 13 2.3.2 Commercial Energy .............................................................................................................. 14 2.3.3 Renewable Energy ............................................................................................................... 14 CHAPTER 3 ................................................................................................................................................................ 16 HISTORIC PERSPECTIVE OF DEVELOPMENT IN NEPAL: PAST TREND AND FUTURE PROSPECTS............. 16 3.1 Historic Perspective.......................................................................................................................... 16 3.1.1 Planned development during First Plan (2056-2060): Initiation of Planned Development ............. 16 3.1.2 Planned Development during Panchayat Regime (1962-1990): Period of Controlled Planning ..... 16 3.1.3 Plan Holiday Period (1990-1992): Transition from Controlled to Liberalized Planning .................. 16 3.1.4 Planned Development during Constitutiional Monarchy Regime (1992-07): Liberalized Planning .. 17 3.1.5 Planned Development during Republican Regime (2007/08-2012/13): Inclusive Planning ........... 17 3.2 Past Trend in Economic Growth of Nepal ........................................................................................... 20 3.3 Future Macro-Economic Prospects of Nepal ....................................................................................... 20 3.4 Historical Development of Hydropower ............................................................................................... 21 3.5 Historical Development of Rural Electrification .................................................................................... 22 CHAPTER 4 ................................................................................................................................................................ 26 CURRENT SCENARIO OF ENERGY RESOURCES IN NEPAL ............................................................................... 26 4.1 Traditional (Biomass) Energy Resources ............................................................................................ 26 ii | Page Preparation of Long Term Vision of Nepal Final Report on Energy Sector Vision 2050 A.D. CHAPTER 5 ................................................................................................................................................................ 37 CURRENT STATUS OF ENERGY RESOURCES CONSUMPTION IN NEPAL ........................................................ 37 5.1 Current Status of Energy Consumption .............................................................................................. 37 5.1.1 Traditional Energy Consumption by Sector .............................................................................. 38 5.1.2 Commercial Energy Consumption by Sector ........................................................................... 39 5.2 Current Status of Energy Supply........................................................................................................ 41 5.2.1 Traditional (Biomass) Energy Supply ...................................................................................... 41 5.2.2 Commercial Energy Supply ................................................................................................... 41 5.2.3 Renewable Energy Supply .................................................................................................... 41 CHAPTER 6 ................................................................................................................................................................ 43 POLICY AND LEGISLATIVE FRAMEWORK IN ENERGY SECTOR ........................................................................ 43 6.1 Evolution of Legislative Framework in Energy Sector ........................................................................... 43 6.1.1 Legislative Frameworks ......................................................................................................... 43 6.2 Major International Laws and Conventions on Energy Resources that have implications on Nepal ........... 43 6.3 Current Status of Policy and Legislative Framework related to Energy Sector in Nepal ........................... 44 CHAPTER 7 ................................................................................................................................................................ 46 INSTITUTIONAL FRAMEWORK IN ENERGY SECTOR ........................................................................................... 46 7.1 Institutional Framework in Energy Sub-Sectors ................................................................................... 46 7.1.1 Institutional Framework in Traditional (Biomass) Energy Sub-Sector ......................................... 46 7.1.2 Institutional Framework in Commercial Energy Sub-Sector ..................................................... 467 7.1.3 Institutional Framework in Renewable Energy Sub-Sector ...................................................... 468 CHAPTER 8 ................................................................................................................................................................ 51 MAJOR GAPS BETWEEN POTENTIALS OR DEMANDS AND SUPPLY ................................................................ 51 8.1 Major Gaps in Energy Demand and Supply ........................................................................................ 51 8.1.1 Traditional energy ................................................................................................................. 51 8.1.2 Commercial energy ............................................................................................................... 53 8.1.3 Renewable Energy ............................................................................................................... 54 CHAPTER 9 ...............................................................................................................................................................
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