| Title | Geothermal Energy Update of Nepal |
|---|---|
| Authors | Mahendra Ranjit |
| Year | 2010 |
| Conference | World Geothermal Congress |
| Keywords | Nepal, geothermal energy update, Glitnir |
| Abstract | After more than twelve years’ insurgency, Nepal witnessed a major political change, with the abolishment of 250 years old monarchial system. Evidently, the internal conflict had a long-term adverse impact on the implementation of all development projects including renewable energy. The unstable political situation also forced the country to satisfy with a three year interim development plan (2008-2011) instead of a normal ‘five-year plan’. Accumulation of technical and other problems led the country to declare ‘national energy crisis’ in late 2008 for the first time in the country’s history, leading its major cities to excessive electric load shedding and a virtual standstill in the industrial sector. While the implementation of a number of ambitious and moderate hydroelectric projects is still underway, it will take considerable time before the nation can feel relaxed in the energy sector. Following the old tradition, the government made no delay in coming up with emergency renewable energy plan to fulfill the immediate energy demand, focussing on tapping wind energy and promoting private sector for small scale hydroelectricity generation. The interim plan of Nepal emphasizes the development and promotion of the already implemented renewable energy sources like biogas, wind energy, solar energy, improved cook stoves, solar electrical systems, micro-hydropower schemes etc. Like in the past, geothermal energy has not received due consideration. Absence of roads linking many geothermal areas in the remote parts of the country had remained a major bottleneck in the execution of geothermal activity. In spite of the government’s least investment, construction of road in the rural areas took place at a very fast pace with the initiative and funding of local communities during the period 2005 - 2009. Taking advantage of the much improved rural road network, availability of new technologies to exploit low temperature geothermal water for electricity generation, creation of basic geochemical information and the importance of utilizing low temperature water for direct application, an agreement was signed in early 2008 between the Glitnir Bank (an Iceland- based Nordic development bank) and Noida, India-based LNJ Bhilwara Group to set up geothermal plants in Nepal and India. The location and detail plans of geothermal activity for Nepal are still under formulation stage. However, it is most likely to be executed in the northern mountainous belt of Nepal along the same latitude in India where the program has been finalized. Discussions are being held with a number of potential Nepali partners to invest in the project. Properly initiated and implemented, this will herald the beginning of a new era in the geothermal development in Nepal. This venture will also serve as seed pilot project(s) to attract private investors to extend the activity to other areas of Nepal. Mechanisms to promote activities at the private level are already in place. The National Rural Energy Strategy of Nepal ensures a long-term sustainability of the renewable energy sector based on implementation of programs by the private sector (including NGOs), easy and long- term financing of programs by the financial sector and through government subsidy, capacity building of the private and financial sectors, among other things. The government of Nepal has also promulgated an ordinance in the early 2009 to set up an Investment Board to attract private entrepreneurs in the energy sector including ‘renewable’. |