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Energy Cost and Energy
Shortage in Nepal;
Potential of Solar, Wind and
other future energy sources
Presented By:
Group 3 :...
Energy Cost
• Rising cost of energy-a reality
• Main reason-Increasing demand of households
and business sector
• Negative...
Petroleum Cost in Nepal
• Highly volatile prices
• High fluctuations over the years
• Price Rise from 2000 to 2013
– Petro...
Date
Petrol
(Rs/l)
Diesel
(Rs/l)
Kerosene
(Rs/l)
Aviation Fuel
(USD/kl)
LPG
(Rs/cyl)
2000 40 23 13 360 465
2001 46 26.5 17...
Petroleum Cost in Nepal
0
20
40
60
80
100
120
140 5/28/2000
5/28/2001
5/28/2002
5/28/2003
5/28/2004
5/28/2005
5/28/2006
5/...
Electricity Cost in Nepal
• One of the most costly tariff in South Asia
• Same rate for more than a decade
• 20% increase ...
Energy Shortage
• Current Scenario: Electricity Crisis
• Nepal: Economically viability of 43000MW
• Utilized: 600MW (just ...
Fiscal Year Annual
Energy
Demand
(GWh)
Annual
Energy
Supply
(GWh)
Deficit shed through
rolling blackouts i.e.,
load sheddi...
0
1000
2000
3000
4000
5000
6000
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Electricity(GWh)
Fiscal Year
Annual Energy...
Maximum Load shedding dry seasons
Fiscal Year Maximum Load
shedding per day (in
hours)
Maximum Load
shedding per week (in
...
Current Scenario: Petroleum Crisis
• Same situation as Electricity
• Imbalance of demand and supply
• Nepal Oil Corporatio...
Causes of Energy Shortage in Nepal
Causes of Electricity shortage
– Slow paced implementation of transmission
lines
– Spil...
Continued…
Causes of petroleum product shortage
– Over-Dependence on IOC for petroleum
energy
– Energy Subsidy
– Mismanage...
Impact of Energy Shortage in the
business sector in Nepal
• Impact on Manufacturing Sector
• Impact on Service sector
• Re...
Solar Definition
• Energy of sunlight collected and used to
provide electricity, to heat water, and to
heat or cool homes,...
Importance of Solar
• Clean energy
• Doesn’t affect the environment and eco-
system
• Versatile
• can be utilized to power...
Solar Potential
• Acc. to Water and Energy Commission
Secretariat (WECS) 1995, 78% of land area
is potential
• solar radia...
Contd..
Potential sectors Figure
Commercial potential for grid connection 2100 MW
Sunshine hours 6.8/day
Solar insolation ...
Subsidy
• Started in 1998
• A 50% subsidy on the cost of solar dryer
was announced by AEPC in 1998
• Use of solar photovol...
Subsidies provided by Govt. to the households
for installing SHS of 10-18 Wp and 18 above are
presented in the table:
Geog...
Subsidy Criteria
• Solar energy subsidy will only be
available to Nepalese Citizens for
specified SHS and SSHS systems ins...
Wind Energy Resources
History
• Wind Energy: agricultural farm of
Rampur
• Wind Turbine: Ramechhap district
• First wind t...
Wind Energy Resources
Potential
• Difficult to generalize wind conditions
– Diverse topography
– Consequent variation in m...
Wind Energy Resources
Potential:
• SWERA (AEPC, 2008): 3000 MW
• ITDG: Five 200-watt wind turbines at Kavre,
Tansen Palpa,...
Wind Energy Resources
Analysis:
• The country is in the early stage of
establishing policy frameworks
• Government’s targe...
Wind Energy Resources
Recommendations
• Enhance the country’s capacity to plan, develop and
implement wind energy sector p...
Other Fuel Resources
Coal Resources
• Four major categories:
– Quaternary lignite of Kathmandu Valley
– Coal from Dang (Eo...
Fossil Fuel Resources
• Petroleum and natural gas resources
– All the petroleum products consumed in
Nepal are imported fr...
Almost one third of the Nepal has been plotted out for oil exploration. Currently all 10 blocks have been
leased out to fo...
Cover pages of the contracts between the Nepali government and the oil exploration
companies Texana and Cairn. These docum...
Fossil Fuel Resources
• Biogas Resources
– The estimated total technical
potential of biogas plants is
about 1.9 million p...
Fossil Fuel Resources
• Improved Cook Stove
Technology
– There is a huge potential
for biomass technologies
like Improved ...
Fossil Fuel Resources
Micro and Pico-Hydropower
Resources
The hydro power stations for
generation of mechanical and
electr...
THANK YOU!
The floor is open
for the questions!
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources
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Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources

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This is a brief discussion on the energy cost and energy shortage situation in Nepal as well as the potential of Solar, wind and other future energy in Nepal

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Transcript of "Energy cost and energy shortage in nepal potential of solar, wind and other future energy sources"

  1. 1. Energy Cost and Energy Shortage in Nepal; Potential of Solar, Wind and other future energy sources Presented By: Group 3 :SSS, SB, NBD, SKL & BK
  2. 2. Energy Cost • Rising cost of energy-a reality • Main reason-Increasing demand of households and business sector • Negative impact on business • Major Energy types: – Petroleum Products – Electricity
  3. 3. Petroleum Cost in Nepal • Highly volatile prices • High fluctuations over the years • Price Rise from 2000 to 2013 – Petrol :225% – (Rs. 40/l to Rs. 130/l) – Diesel:347.82% – (Rs. 23/l to Rs.103/l) – LPG:216.13% – (Rs.465/cyl to Rs.1470/cyl)
  4. 4. Date Petrol (Rs/l) Diesel (Rs/l) Kerosene (Rs/l) Aviation Fuel (USD/kl) LPG (Rs/cyl) 2000 40 23 13 360 465 2001 46 26.5 17 360 550 2002 52 26.5 17 360 650 2003 54 31 24 360 700 2004 56 35 28 609.27 750 2005 67 46 39 660.12 900 2006 67.25 53.15 47.65 931.83 900 2007 80 56.25 51.2 1180 1100 2008 80.5 59.5 59.5 1000 1150 2009 77.5 58 58 750 1125 2010 88 68.5 68.5 945 1325 2011 105 76 76 1215 1325 2012 123 99 99 1250 1470 2013 130 103 103 1300 1470
  5. 5. Petroleum Cost in Nepal 0 20 40 60 80 100 120 140 5/28/2000 5/28/2001 5/28/2002 5/28/2003 5/28/2004 5/28/2005 5/28/2006 5/28/2007 5/28/2008 5/28/2009 5/28/2010 5/28/2011 5/28/2012 5/28/2013 Rs.Perlitre Petrol, Diesel and Kerosene Prices (Rs per litre) Petrol(NRs/L) Diesel(NRs/L) Kerosene Open (NRs/L)
  6. 6. Electricity Cost in Nepal • One of the most costly tariff in South Asia • Same rate for more than a decade • 20% increase in tariff on 17th August 2012
  7. 7. Energy Shortage • Current Scenario: Electricity Crisis • Nepal: Economically viability of 43000MW • Utilized: 600MW (just 1.4%) • Acute shortage of electricity (Demand>Supply)=Deficit • Managed through : Load shedding/ Rotating Blackouts (up to 16 hrs/day during dry seasons) more than 700MW • Demand rise by 9 t0 10%
  8. 8. Fiscal Year Annual Energy Demand (GWh) Annual Energy Supply (GWh) Deficit shed through rolling blackouts i.e., load shedding 2012/13 5446.285 (100%) 4218.135 (77.45%) 1228.15 (22.55%) 2011/12 5194.78 (100%) 4178.63 (80.4%) 1016.15 (19.6%) 2010/11 4833.35 (100%) 3850.87 (79.67%) 982.48 (20.33%) 2009/10 4367.13 (100%) 3076.69 (80.4%) 612.58 (19.6%) 2008/09 3859 (100%) 3130.77 (81.13%) 728.23 (18.17%) 2007/08 3490 Demand, Supply and Deficit of Electricity
  9. 9. 0 1000 2000 3000 4000 5000 6000 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Electricity(GWh) Fiscal Year Annual Energy Demand Annual Energy Supply Deficit shed through rolling blackouts i.e., load shedding Annual Demand, Supply and Deficit of electricity FY 2007/08 to 2012/13
  10. 10. Maximum Load shedding dry seasons Fiscal Year Maximum Load shedding per day (in hours) Maximum Load shedding per week (in hours) 2007/08 6-7 hours 48 hours 2008/09 12 hours 84 hours 2009/10 16 hours 112 hours 2010/11 14 hours 98 hours 2011/12 14 hours 98 hours 2012/13 12 hours 84 hours
  11. 11. Current Scenario: Petroleum Crisis • Same situation as Electricity • Imbalance of demand and supply • Nepal Oil Corporation: sole provider • Monthly loss of Rs.185.58 crores • Huge part of imports • In FY 2012/13, Oil Imports 19.2% of total imports • Nepal imported $1222.3 million worth of petroleum products from India alone • Consumption rise range 17% to 29% per annum
  12. 12. Causes of Energy Shortage in Nepal Causes of Electricity shortage – Slow paced implementation of transmission lines – Spillage of Electricity – Lack of maintenance of power stations – Non completion of projects on time – Delay in evacuation of energy from IPPs
  13. 13. Continued… Causes of petroleum product shortage – Over-Dependence on IOC for petroleum energy – Energy Subsidy – Mismanagement in NOC – Increasing number of vehicles – Absence of adequate necessary infrastructure
  14. 14. Impact of Energy Shortage in the business sector in Nepal • Impact on Manufacturing Sector • Impact on Service sector • Reliance on generators and inverters • Shift of objective of businesses • Impact on investment • Increment in production cost and market prices
  15. 15. Solar Definition • Energy of sunlight collected and used to provide electricity, to heat water, and to heat or cool homes, business or industry • It’s a renewable and sustainable source of energy, means that it doesn't run out, but can be maintained because the sun shines almost every day
  16. 16. Importance of Solar • Clean energy • Doesn’t affect the environment and eco- system • Versatile • can be utilized to power various things like cars, cooking, coffee roasters, electricity for homes and business, watches, etc. • Important in nature • Plants use the energy to produce the green chlorophyll that they need to survive, while humans use the sun rays to produce vitamin D in their bodies
  17. 17. Solar Potential • Acc. to Water and Energy Commission Secretariat (WECS) 1995, 78% of land area is potential • solar radiation varies from3.66kWh/day, and the sun shines for about 300 days a year • 2920 GW energy from 0.01% of total area of land
  18. 18. Contd.. Potential sectors Figure Commercial potential for grid connection 2100 MW Sunshine hours 6.8/day Solar insolation intensity 4.7 kWh/day Solar heater installed till 2005 61,000 Solar heater installed till 2009 185,000 Acc. to the report published by Alternative Energy Promotion Center (AEPC) in 2008 under Solar & Wind Energy Resource Assessment in Nepal (SWERA),
  19. 19. Subsidy • Started in 1998 • A 50% subsidy on the cost of solar dryer was announced by AEPC in 1998 • Use of solar photovoltaic is increasing rapidly in the country
  20. 20. Subsidies provided by Govt. to the households for installing SHS of 10-18 Wp and 18 above are presented in the table: Geographic Location 10-18 Wp NPR More than 18 Wp NPR Karnali and adjoining districts and very remote VDCs categorized A in other districts 7,000 10,000 Remote VDC categorized B in other districts 6,000 8,000 Accessible VDCs 5,000 6,000
  21. 21. Subsidy Criteria • Solar energy subsidy will only be available to Nepalese Citizens for specified SHS and SSHS systems installed in the rural areas not electrified by other means • SHS subsidy will be available if the area has been defined in general as a VDC or a group of adjoining VDCs within 3 hours’ walking distance and closeness has to be certified by one of the involved VDCs or DDC
  22. 22. Wind Energy Resources History • Wind Energy: agricultural farm of Rampur • Wind Turbine: Ramechhap district • First wind turbine generator: 20 kW • More wind turbines – Chisapani of Shivapuri National Park – Club Himalaya in Nagarkot
  23. 23. Wind Energy Resources Potential • Difficult to generalize wind conditions – Diverse topography – Consequent variation in meteorological conditions • Specific areas have been identified • World Bank(1977) • Department of Hydrology & Meteorology(DHM- 1983) • DANGRID(1992) • WECS + DHM + AEPC + NAST (1999-2002)
  24. 24. Wind Energy Resources Potential: • SWERA (AEPC, 2008): 3000 MW • ITDG: Five 200-watt wind turbines at Kavre, Tansen Palpa, Makawanpur, Chisapani (Karnali) & Udaypur • AEPC: 400-watt wind turbine at Nagarkot
  25. 25. Wind Energy Resources Analysis: • The country is in the early stage of establishing policy frameworks • Government’s target – Increasing the share of renewable energies in the energy supply to 10% in the next 20 years
  26. 26. Wind Energy Resources Recommendations • Enhance the country’s capacity to plan, develop and implement wind energy sector projects • Help different stakeholders improve their understanding of Nepal’s wind energy potential • Create competent and creative human capacity in this sector by creating synergy among all stakeholders
  27. 27. Other Fuel Resources Coal Resources • Four major categories: – Quaternary lignite of Kathmandu Valley – Coal from Dang (Eocene coal from Mid- Western Nepal) – Siwalik coal – Gondwana coal
  28. 28. Fossil Fuel Resources • Petroleum and natural gas resources – All the petroleum products consumed in Nepal are imported from India or overseas in the refined form for direct consumption. – Nepal Oil Corporation (NOC) is the sole organization responsible for the import and distribution of petroleum products. – The NOC has storage facility for all the essential petroleum fuels, except for LPG.
  29. 29. Almost one third of the Nepal has been plotted out for oil exploration. Currently all 10 blocks have been leased out to foreign companies. Map Credit: Petroleum Exploration Promotion Project, Nepal.
  30. 30. Cover pages of the contracts between the Nepali government and the oil exploration companies Texana and Cairn. These documents remain “confidential.”
  31. 31. Fossil Fuel Resources • Biogas Resources – The estimated total technical potential of biogas plants is about 1.9 million plants of which 1,000,000 plants are thought to be economically viable. – As of December 2008/09, more than 2, 00, 000 biogas plants of varying capacities (4, 6, 8, 10, 15 and 20 m3) have been installed (BSP, 2010).
  32. 32. Fossil Fuel Resources • Improved Cook Stove Technology – There is a huge potential for biomass technologies like Improved Cooking Stoves (ICS), Beehive briquettes, Briquetting mechanism, Gasifier. – More than 331,000 ICS have been so far installed through various government and non- government organizations
  33. 33. Fossil Fuel Resources Micro and Pico-Hydropower Resources The hydro power stations for generation of mechanical and electrical energy up to a capacity of 100 kW come under micro-hydro in Nepal. The installations of such units up to 1000 kW do not require any license from the Government. Furthermore, EIA is not required up to 50 MW till 2011 under GoN’s working program to tackle current energy crisis 2009. The Government of Nepal is providing subsidies for the installation of micro-hydro plant according to the location and remoteness of the districts of Nepal.
  34. 34. THANK YOU! The floor is open for the questions!
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