4.8 Energy Crisis and Energy Conservation

Energy Crisis and Energy Conservation

Energy and Energy Crisis

Energy is the capacity to do work or the source of power. The modern world depends on the availability, suitability, and potential of energy. According to the Law of Conservation of Energy, energy cannot be created or destroyed but can be transformed from one form to another. This transformation often consumes various energy sources.

An energy crisis occurs when the demand for energy exceeds supply, leading to an imbalance and shortage. This happens when consumption rates surpass production rates.

Types of Energy

Energy sources that can be used in their natural state are called primary energy sources. Based on their source, energy can be classified into three categories:

1. Renewable Energy
2. Non-Renewable Energy
3. Infinite Energy

Based on utility, energy sources can be divided into three categories:

1. Traditional Energy Sources: Firewood, dung.
2. Commercial Energy Sources: Coal, petroleum, electricity.
3. Alternative Energy Sources: Solar, wind, micro-hydropower, biogas, biomass.

Current Energy Situation in Nepal

Despite hydropower development starting in Nepal in 1968 BS, significant progress has not been achieved despite the potential. Heavy reliance on non-renewable sources like diesel, petrol, and natural gas has led to substantial financial outflows and negative environmental impacts.

• Nepal, the second richest in water resources, has a technical and economic potential of 42,000 MW of hydropower, but effective utilization remains limited.
• As of Falgun 2081 BS, total installed electricity capacity is 3,602 MW, with 99% electricity access.
• Nepal has reached a stage of electricity export, with 929 GWh imported from India and 1,775 GWh exported to India and Bangladesh by Falgun 2081/82 BS.
• Electricity leakage is around 10%, with ongoing efforts to control it.
• High use of non-renewable sources like diesel and petrol in vehicles has led to a significant trade deficit.
• Recent periodic plans prioritize the energy sector.
• Efforts are underway to develop hydropower through government, private, community, and foreign investments.
• Significant success has been achieved in managing electricity demand and supply, ending load-shedding.
• Ongoing efforts aim to ensure regular electricity supply in the coming years.
• Construction of power generation, transmission, and distribution lines, along with necessary infrastructure, is being advanced efficiently.

Further Efforts Needed

• Implement policies, legal frameworks, and organizational measures to promote energy-efficient appliances and enhance industrial energy efficiency.
• Ensure sufficient infrastructure for electricity services.
• Address risks to encourage capital market investment in hydropower.
• Create an environment to attract foreign investment, as domestic and government funding alone is insufficient.
• Address challenges like infrastructure development, distribution system modernization, leakage control, demand-supply balance, and geographical remoteness.

Energy Crisis

An energy crisis is characterized by:

• Inability to meet energy demand with supply.
• Problems arising from poor energy management.
• Energy shortages.
• Load-shedding.

Causes of Energy Crisis

Nepal declared energy crises in Poush 2065 BS and Chaitra 2067 BS. Despite immense hydropower potential, investment in viable energy sectors has been inadequate due to:

• Lack of development-friendly political culture.
• Political interference and instability.
• Lack of investment-friendly environment and security.
• High population growth rate.
• Inadequate energy production relative to industrialization, urbanization, and mechanization.
• Large investments and long construction periods, with projects not completed on time.
• Limited international energy trade environment.
• Insufficient development of transmission lines and other infrastructure.
• National budget and programs not prioritizing energy.
• Imbalance between demand and supply.
• Increase in transportation vehicles.
• Reliance on traditional technologies.
• Neglect of renewable energy sources.
• Inadequate development of alternative energy.
• Trend of speculative hydropower project licensing ("carrying rivers in bags").
• Lack of long-term vision.
• Shortage of skilled manpower.

Impacts of Energy Crisis

a) Social Impacts

• Negative impact on daily activities.
• Disruption of essential services.
• Challenges in social gatherings and conferences.
• Potential increase in theft, robbery, murder, and assault.
• Unemployment.
• Difficulties in public service delivery.
• Disruption in information and communication.
• Challenges in education and research.

b) Economic Impacts

• Decline in industrial production.
• Inflation.
• Decrease in GDP.
• Reduced development activities.
• Decline in economic growth rate.
• Increased migration abroad.
• Worsening poverty.

Measures to Address Energy Crisis

• Efficient and prudent use of existing energy sources.
• Promote development and use of alternative energy.
• Control electricity leakage.
• Timely maintenance of power plants.
• Encourage private investment.
• End speculative hydropower licensing practices.
• Develop bio-fuels.
• Develop reservoir-based projects.
• Select capable and strong leadership.
• Prioritize solar energy.
• Reduce excessive politicization.
• Forecast demand and supply in a timely manner.
• Increase investment in large projects.
• Attract foreign investment.

Efforts in Nepal to Address Energy Crisis

a) Constitutional Efforts

Constitution of Nepal, Article 51(f): Policies on conservation, promotion, and use of natural resources:

• Prioritize domestic investment for multi-purpose hydropower development.
• Promote production and development of renewable energy.

b) Policy and Legal Efforts

• Nepal Electricity Authority Act, 2041 BS.
• Water Resources Act, 2049 BS.
• Electricity Act, 2049 BS.
• Foreign Investment and Technology Transfer Act, 2075 BS.
• Electricity Theft Control Act, 2058 BS.
• Hydropower Development Policy, 2058 BS.
• Current periodic plans.

c) Institutional Efforts

• Ministry of Energy, Water Resources, and Irrigation.
• Water and Energy Commission.
• Department of Electricity Development.
• Nepal Electricity Authority.
• Alternative Energy Promotion Centre.
• Department of Mines and Geology.

d) Programmatic Efforts

• Alternative Energy Promotion Program.
• Rural Solar Lighting Distribution Program.
• Bio-energy Program.
• Wind Energy Program.
• Solar Energy Program.
• Micro and Small Hydropower Programs.

Alternative Energy

Alternative energy refers to energy sources used as substitutes for traditional and conventional energy sources. To address the energy crisis, renewable energy sources like micro-hydropower, wind, solar, and biogas are used to replace traditional energy sources.

The Alternative Energy Promotion Centre promotes renewable energy technologies to improve rural livelihoods, protect the environment, increase employment opportunities, and commercialize renewable energy industries. Activities include promoting, developing, utilizing, and expanding micro and small hydropower, solar energy, bio-energy (biogas, improved cookstoves, bio-briquettes, gasifiers), wind energy, improved water mills, and geothermal energy.

In rural areas where the national grid cannot provide electricity, micro and small hydropower, solar, and wind energy have been used to expand electricity access. Alternative energy contributes 3.5% to total energy production.

Energy Conservation

Energy conservation involves the frugal and prudent use of energy resources. It aims to:

• Increase capacity to reduce energy consumption (e.g., using CFL, LED).
• Produce energy according to capacity.
• Prevent energy misuse and leakage.
• Promote development and use of alternative energy.
• Raise awareness for energy conservation.

Energy conservation involves reducing misuse through efficient and scientific energy use. This can be achieved by properly utilizing wasted energy, regular maintenance of electrical appliances, and balancing demand and supply. Conservation includes using energy only when necessary, controlling leakage, ensuring cost-effective use, managing demand, ensuring affordable supply, and improving distribution efficiency.

By reducing unnecessary energy use and promoting efficient production, distribution, and use of renewable and alternative energy, future energy crises can be avoided. Balancing demand and supply while using limited energy resources frugally is essential for sustainable development.

Need for Energy Conservation

• Promote overall development of the energy sector to make the country self-reliant in electricity.
• Replace other energy sources with electricity to reduce trade deficits.
• Expand domestic and international markets for produced electricity.
• Increase public access to electricity.
• Ensure sustainable, reliable, affordable, high-quality, and clean energy for all.
• Establish necessary policy, legal, and structural frameworks.
• Energy conservation areas can be categorized into personal and household, community, industrial, transportation, and other sectors based on high energy use.