 |
||
|
||
BOOK REVIEW |
|
||
|
||
BOOK REVIEW |
The book discusses ways of
hydropower pricing in Nepal By A CORRESPONDENT At a time when experts and business groups
are talking about the need to develop a strategy to build the hydropower projects in Nepal
with an eye on the Indian market, only a few of them have attempted to look at the pricing
aspects. As long as the pricing of hydropower
construction, production and distribution are not studied one cannot say whether the
hydropower is really profitable (as an export commodity) for Nepal. Many have already
predicted that the dream of making money by exporting power to India is simply not
practicable. They argue that the hydropower is one of the expensive energies of the world. Thanks to the Jalsrot Vikas Sanstha, an
institution related to the hydropower, a book on the pricing mechanism has come out in the
market. The book discusses and analyses the costs and pricing of hydro electricity
generated by different projects in Nepal. "In the area of Hydropower
Development, Hydropower pricing was and is still regarded as one of the critical gaps in
prevailing arrangements in South Asia. To bridge this gap and as an attempt to devise
possible solutions confronting hydropower pricing issues, South Asian Technical Advisory
Committee decided to take up hydropower pricing and Nepal Water Partnership was assigned
to play the lead role for this exercise," writes Bhubaneshowr P. Daibagya, secretary
of JVS. " It goes without saying that the subject on fixing parameters for hydropower
pricing is still a matter for debate and discussion and no single formula can be advanced
on the subject at this stage." According to global estimates, Nepal is one
of the richest countries in the world in terms of power generation capacity. The studies
show that theoretically hydropower potential of the country in terms of electrical energy
is 727,000 GWh per year. Despite theoretical possibilities to produce 83,000 MW, Nepal can
technically produce only half of the projection. Whatever technical capability of Nepal, the
country is currently producing less than 700 MW and almost all projects are
run-of-the-river types. Kulekhani I and Kulekhni II are two storage projects with capacity
of 92 MW. The experts argue that all the projects completed in Nepal have different power
prices as some power projects are cheaper than others. This similarly applies to those
projects aimed at export. "Hydropower pricing is basically a
function of the costs of the hydropower project. Cost of hydrosphere project consists of
four parts - associated costs, induced costs, external costs and opportunity costs of
water," writes editor Upendra Gautam and Ajoy Karki. The book attempts at developing
a perspective on hydropower pricing. At a time when country's policymakers are
trying to develop a long term plan to develop Nepal's hydropower eying Indian market, the
book helps to understand the cost and benefit. The book was prepared following wide
consultation of water resources experts of Nepal. It gives detailed aspects including the
system of pricing in Nepal and the present state of price fixing regime. The book is
extensive as well as detailed. "The book raises a fundamental issue,
which is more intricately related with making, applying and enforcing of public policies
in the benefit of the people than simply pricing hydropower in a sectoral and
organizationally ingrained manner," write editors. The book discuses assessment of costs of
Hydropower projects, natural resources use costs in hydropower projects, assessment of
benefits from hydropower projects, and other key issues of hydropower pricing. Hydropower Pricing In Nepal |
|| Cover
Story || Nepal HDR 2004
|| Bhutanese Refugess || Icons
2004 || Encounter || Security
Personnel || |
Send your feedback to the
editor: spot@mail.com.np |
