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 PLEASE HIT LIKE IF IT'S HELPFUL! :D

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

7. 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

8. 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)

9. 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

10. 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)

11. 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

12. 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%

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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),

24. 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

25. 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

26. 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

27. 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

28. 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)

29. 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

30. 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

31. 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

32. 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

35. 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.

37. 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.

38. Cover pages of the contracts between the Nepali government and the oil exploration
companies Texana and Cairn. These documents remain “confidential.”

39. 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).

41. 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

42. 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.

43. THANK YOU!
The floor is open
for the questions!