By Our Reporter
Former Prime Minister and Chair of the CPN-UML KP Sharma Oli has said that his party, CPN-UML, aims at generating 15,000 MW of energy in 10 years with an energy mix of hydro, solar, wind, geothermal and other alternative energy sources.
Oli, who is leading the next government, said this while addressing the Nepal Power Investment Summit 2018 in Kathmandu on Sunday.
Stating that Nepal should create regional energy infrastructure to facilitate the power trade, Oli said, “This is also necessary in the context of seasonality of power production and consumption, energy mix, cost effectiveness in transmission and distribution, substation of energy demand by clean and renewable energy than fossil fuel based ones.”
He said that regional cooperation in energy was also about energy trading in South Asia and Nepal should create environment for energy trade also under the spirit of South Asian Free Trade Association (SAFTA) and create regional energy infrastructure for power trade.
He said Nepal’s demand for electricity for domestic consumption for an economic growth rate of 8 to 9 per cent can be met with the installation of only 15,000 megawatt of hydropower capacity.
Economic transformation and development of energy substitution technology in transportation, industry business and household consumption will create energy demand for geometrical growth in power consumption, he said.
Oli said creation of higher power demand at home calls for restructuring the transportation, industrial and business systems, and the country needs to create new electric infrastructure by building electric trains, electric metros, electric vehicles and electricity based cooking.
Stating that the current energy consumption at 140 KWh is very low compared to the South Asian average of more than 700 KWh, Oli said that Nepal intends to increase the consumption of 1500 KWh in 15 years which calls for rapid growth in electricity generation.
Speaking during a panel discussion, ‘FDI in Nepal’s Power Sector’, several power developers said that at a time when the per capita energy consumption in Nepal was low, there was no way than attracting foreign investment in Nepal’s power landscape.
“However, since hydropower projects are capital intensive and have longer gestation period, innovative financing solutions like equity financing is the game of the time,” says RajenKandel, Director of Kandel Group.
N. L. Sharma, Chairman of Satluj Jal Vidyut Nigam, however, pointed out political instability, lack of tax incentive, hassles during the land accusation and clearance of forest and environment as some of the factors distracting FDI in Nepal’s energy sector.
Apar Neupane, Vice-President, Finance at Equicap Asia Pvt Ltd said that the mismatching of several stakeholders’ interest was a biggest hindrance for FDI to come to Nepal.
Hoess, Director of Dragon Capital, Vietnam, said that the hassles that any foreign investors have to go through while doing ground works were what was aggravating the situation.
Gorakh Rana, Head of Commercial and Global Banking at Standard Chartered Bank, said that the Nepal’s banks had not been able to extend sufficient financing for the hydropower projects due to the lack of communication.
Naoki Nishimura, a JICA representative, urged for a strong local partner to attract the FDI.
CPN-UML will generate 15000 MW power in 10 years: Oli
By Our Reporter