It goes unsaid that Nepal is undergoing a drastic energy crisis. More than 40% of the Nepalese
population is not connected to the electric grid. For the rest of Nepalese citizens who do have access to
electricity, they face upto 16 hours of daily blackouts. Energy conditions are even worse due to periodic
shortages of petroleum products and natural gas. Energy shortages are anything but new to Nepal, and
the issue continues to appear dire. While the population and economy grows, the demand for electrical
energy continues to skyrocket.
Although, in a certain light, there is still reason to hope; Nepal is blessed with an abundance of natural
resources. For instance, studies suggest that Nepal has tremendous potential for hydro power. In
addition, Nepal also has significant potential for wind and solar energy. If we are able to tap into these
natural resources, then there is no doubt that we shall be able to achieve energy independence and also
to do so in an environmentally sustainable manner. While this should be our goal, and I am optimistic
that we will be able to achieve in the future, it is imperative that we also try to seek immediate solutions
to mitigate the energy shortage we face today.
Solution to this maybe much closer to us then we think. Energy Efficiency is the single most resource
that has the potential to help mitigate some our energy needs in significantly shorter period of time.
Energy Efficiency essentially means meeting same or more of the electrical demand needs with less
amount of energy without compromising the quality of service.
Nepalese culture does not view energy efficiency as an energy resource. We generally perceive it
as something secondary. An energy resource for most of us is tangible, like a hydropower station,
generator or solar panels. Instead, if we look at energy resource as a mechanism that helps to manage
our energy needs, then energy efficiency will be on the top of the list as one of the cheapest resources
that can yield immediate effects.
Typical examples of energy efficient practices would be replacing energy hungry incandescent lights
with LED or CFL light, using higher voltage transmission lines to reduce losses, replacing or tuning up
compressors and motors to work efficiently and many more. These simple-enough measures, if applied
in our homes and factories, would add up quickly and result in large savings. This saved energy can be
used to meet the extra load and thus decrease load shedding time.
Although these techniques are straightforward, it is much harder to materialize in real life because
they depend on individuals’ commitment and finances. Energy efficient products usually cost much
more than their alternative. Although investing in them can be recouped many times over the products
lifetime, people usually still opt for cheaper alternatives. Research has shown that human beings
generally are more inclined to make their decisions based on short-term impacts. Thus, when one sees
that energy efficient products are much expensive than alternative, they have very less incentive to buy
them. This is where government and policymakers have an important role to play.
Leaders in the field of energy efficiency in Nepal have already begun important discussions. The Nepal
Energy Efficiency Program (NEEP) was established in 2009 with the support of German Development
Cooperation (GTZ). This organization works independently to promote energy efficiency in different
sectors of the Nepalese economy by launching different programs for both industrial and residential
sectors. NEEP’s Energy Standards & Labels program provides energy efficient ratings for electrical
products in order to better inform the customers about efficiency. In the industrial sector, NEEP
advocates for energy audits and works closely with industries to identify custom energy efficiency
measures. Meanwhile, Nepal Electrical Authority (NEA) also conducts a few of its own programs to
support Energy Efficiency by promoting CFL and LED light bulbs.
Unfortunately, these programs have been suffering through a lackluster performance because their
creators have only conveyed Energy Efficiency as an alternative, rather than an immediate need. Rather
than a mere suggestion, energy efficiency should be portrayed to policymakers as the direct means of
fulfilling the electrical energy demand in Nepal. Most of the energy efficiency programs that exist today
are supported by the INGO or foreign governments. Although this is a start, energy efficiency programs
in Nepal are only scheduled to exist as long as they are supported by an external party. Relying on
someone’s outside philanthropy is not a sustainable business model. We need to realize that energy
efficiency practices are a lucrative investment opportunity for Nepalese customers as well as their
energy providers. Together, we need to develop market-based business or policy opportunities that are
self-sustaining and make a direct impact.
One of the possible market-based options would be to have NEA ‘buy’ the energy saved from energy
efficiency. For example, a contractor could pledge to save a certain measure of KWh at the market rate
of electricity. The contractor would then go to households and industries to promote energy efficiency
methods to the public. If the energy saving is realized in that period of time then the contractor gets
the money from NEA. This ‘reverse auction’ is a proven technique that has been employed in different
energy markets across the world.
These energy efficiency methods could also be funded by a modest increase in the utility bill. This rate
could be adjusted as a progressive tax, which minimizes the burden on families with low-incomes.
Since energy efficiency programs help to keep the rate of electricity low over a long period of time, this
ratepayer-funded model is often looked at as a viable solution to fund energy efficiency practices.
The potential for energy efficiency in Nepal is not just limited to energy savings. Proper management of
energy resources tremendously benefits the environment as well. There numerous spill-over benefits of
energy efficiency help us to save our money and better our lifestyle. With these outstanding benefits, it
is imperative that the more direct action would be taken towards energy efficiency in Nepal.
