This news report highlights the key achievements, strategic plans, and reform initiatives carried out by the Ministry of Energy, Water Resources and Irrigation during the current government’s first 100 days in office.
Focus on Good Governance and Reforms
The current government has taken the energy sector as a major pillar of the national economy and achieved some important targets in short time. Under the government’s 100-point governance reform list, Ministry of Energy, Water Resources and Irrigation is quickly implementing its plans. Some short-term, medium-term, and long-term programs have also been included in next fiscal year budget.
Energy Minister Viraj Bhakta Shrestha made ministerial decisions to form different task forces to find out existing problems and suggest way forward for reforms. For example, a six-member committee led by Joint Secretary Dr. Rajan Bhattarai was formed on Chaitra 19 to study policy, technical, and economic sides of power purchase agreements (PPA) done by Nepal Electricity Authority. Another five-member committee under Joint Secretary Mohan Shakya was created to review current progress of various licenses issued by Department of Electricity Development.
New Strategy for Power Consumption and Export
The ministry has prepared the Energy Consumption and Export Strategy 2083. This plan was made by a team led by Joint Secretary Sandeep Kumar Dev. It aims to make energy sector a main driver of economic change by increasing local power use and finding clear ways for export.
The strategy focuses on replacing LP gas from kitchens with electric cooking and promoting electric vehicles in both public and private sectors. It also aims to replace fossil fuels in industries with electricity. The plan wants to make electricity tariffs more consumer-friendly and upgrade the distribution system into a smart grid. To make energy secure, the ministry wants to build more reservoir projects and expand national transmission grid across the country.
This new strategy also shows a way to export clean energy to regional markets through cross-border lines, especially during evening peak hours when prices are high. It also gives priority to private sector participation in power trading and structural reforms of Nepal Electricity Authority.
Action Against Non-Performing Projects
In the past, there was a popular saying in Nepal about “rivers in a bag” where developers hold licenses without doing any work. Now, the government is taking action against this practice. Based on task force recommendations, the government is planning to cancel licenses of 38 hydropower projects with a total capacity of 1,388 MW because they have zero progress for long time.
The study committee categorized projects based on their progress. It put 15 projects with 220 MW capacity in a priority list because they completed over 50 percent work in five years. Meanwhile, 131 projects with 5,642 MW capacity are in encouragement list. The committee also put 38 projects with 1,124 MW in facilitation list to help them finish fast. However, 75 projects with 4,121 MW capacity are kept in a troubled list for action due to very poor progress. The department has also recommended to cancel 11 projects of 169 MW capacity which took production licenses before 2076 B.S. but made no progress.
To support smaller developers, the upcoming budget also identifies 176 projects under 10 MW, totaling 1,164 MW capacity, that need immediate PPA sign.
Better Public Grievance and Service Delivery
The Ministry of Energy has given high priority to listening to public complaints. The toll-free number 1151 is now running active for 24 hours. The ministry has also set up a Good Governance Unit to monitor performance, legal deadlines, and service delivery of employees. If anyone asks for money illegally or does wrong work, strict action will be taken.
To solve immediate electricity problems caused by storms or natural disasters, quick response teams are kept ready. Construction of the Hetauda-Dhalkebar 400 kV transmission line has also speeded up, which is very important to transfer electricity from eastern Nepal to western part.
Attracting Private Sector and Future Budgets
The government is preparing to allow private sector to trade electricity in international markets. The budget has announced that private developers can build transmission lines and trade electricity by paying transmission fees. For the next fiscal year, the government has allocated Rs 85 arba 54 crore for energy production, transmission, and distribution, with Rs 70 arba dedicated only to transmission lines and substations.
Key transmission line projects like Hetauda-Dhalkebar-Inaruwa 400 kV and New Khimti-Barhabise-Kathmandu will be completed fast. Cross-border lines like Butwal-Gorakhpur and Inaruwa-Purniya are also high on priority list. Hydropower projects like Rahughat will be completed this year, while construction of Tanahu Reservoir, Upper Modi, and others will speed up. The government also plans to divide Nepal Electricity Authority into three separate companies for production, transmission, and trade. Nepal’s total installed power capacity is targeted to reach 5,535 MW within next fiscal year.
Special Focus on Irrigation
The ministry is also giving equal importance to irrigation projects that are running slow. International bids have been invited for building dam and powerhouse of Sunkoshi-Marin Diversion project. Construction of Bheri-Babai Diversion project is also being speeded up by mobilizing contractors. The Water and Energy Commission is also being made more powerful to study multi-use of water resources, ensuring we do not forget water while focusing only on energy.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
