Renewable Energy in Nepal, its challenges and Prospects

Renewable Energy in Nepal, its Prospects and Challenges

          How much are you worried about global warming and climate change? As of 2017, there is about 59.8% (8161 mega ton equivalent) use of primitive nonrenewable oil and coal, which is certainly going add to your worries [1].  17.1% (2334 mega ton equivalent) is the consumption of renewable energy worldwide including nuclear energy as of 2017, which is 3.9% greater than the 13.2% (806 mega ton equivalent) consumption of renewable energy as of 1973. Keeping in mind the world population in 1973 to be 3.915 billion as compared to 7.550 billion in 2017, nearly 4% increase in world total primary energy supply (TPES) is in itself a big deal that clearly states that world is in favor adopting the renewable energy. With more than 20,000 of the deaths worldwide due to carbon emissions, clean energy has been undoubtedly the necessity of today’s world. [2]

          As for Nepal, there is about 12% (1.176 mega ton equivalent) use of primitive non-renewable oil and coal by the year 2011. 7% (0.686 mega ton equivalent) is the consumption of renewable energy in Nepal as of 2011, which is 4% greater than the 3%, (0.27 mega ton equivalent) consumption of renewable energy as of 2003. [3][4] The hydropower development ratio of Nepal as of 2014 is only 2%, so now maybe the time to focus a little on other renewable sources of energy as well. [3]With more and more advancement of lithium ion batteries to store, solar energy efficiently about 247-terawatt hour photovoltaic electricity has been produced worldwide by 2015. [4] According to the Renewable Energy Subsidy policy of Nepal 2073 BS, there has been almost 37% subsidies on solar energy appliances.[5] Yet, we fail to contribute in a significant number to the total final solar energy consumption as of a report published by Trading Economics in 2012. [6] According to Energy Demand Forecast Report produced by water and energy commission secretariat of Nepal, at 4.5% GDP growth as of past trend, there will be a need of 3,384 MW of installed capacity by 2020, where in case of policy intervention scenario the requirement will nearly double to 6,621 MW. By 2030, the requirement will be 15,000 MW and by 2040, it will have been 82,000 GWh. [7] On the contrary according to the Nepal’s Energy Sector Vision 2050AD, the installed capacity will be 1,900 MW, 3900 MW and 11,000 Mw in 2020, 2030 and 2050 respectively. We can see that we will be in load shedding again if we fail to do something in these crucial years. [8]   If we are able to produce almost 45% energy that we need from solar power, we can avoid importing electricity from India and be aloof from power cut offs.

          Now the big question is, how can we produce 45% (almost, 1485MW) of electricity by 2020, when we fail to consume even a significant number of solar energy in total final energy consumption? Here comes the Feed in Tariff (FIT) or advanced renewable tariff or renewable energy payments. FIT is basically a system in which incentives are provided to households or businesses generating electricity through the renewable sources, the incentives are directly proportional to the amount of power generated. FIT was first prescribed in between 1991-1999 via Electricity Feed-in Law at relatively moderate rates. [9] The households under FIT can benefit through three ways, the generation tariff, the export tariff and savings on conventional bills.  Further simplifying FIT, I would like to cite an example. Let us consider a household with a south facing roof. A 10 KW solar system on its roof can generate a power of 8760 KWh/year. Suppose NEA pays you Rs.2 for each KW generated then you are paid, 8760 x 2= Rs.17520 by NEA. NEA assumes you will use 50% of the energy you generate. So, 50% is sent back to the grid. You are paid Re. 1 for the units sent back to the grid so you are paid Rs.4380 for selling the electricity you produce on your roof to NEA. Thus, your typical savings on conventional bill is Rs.8760 but in fact you save total, Rs(17520 +8760 + 4380) i.e. the money you get by producing electricity on your roof plus the 50%  savings on conventional bills plus the money you get for sending the electricity you produce to the grid. According to the census of Nepal-2011, the number of individual households in Nepal is 54,27,302 and the power generated by each household if they have a 10 KW solar power system on their roof will approximately be 5428 MW/year which is 3.5 times more than the demand of 1485 MW by 2020. [10] Before bringing FIT into application, we need to make sure that we have the required logistics and technology to support transmission from household to the grid.

          Another way of harnessing solar power is by using the principle of Net Metering. It is a billing mechanism that provides incentives pretty much like FIT for the electricity the households add to the grid. But unlike FIT that requires two meters for measuring the outflow of electricity from household to grid, Net metering uses one bi-directional meter and also provides incentives that have full retail value. [11] Consider a household having a solar photovoltaic (PV), which produces electricity when the sunlight strikes its modules. The DC power the installation produces is wired into an inverter, which converts DC into AC power. The AC is then flown from inverter to the electrical service panel, which feeds electricity into the household. An optional meter, which is computerized, can track the household electricity production and consumption at real time. During the day if the Solar PV system’s production exceeds the demand in the house, the electricity is fed back into the grid that occurs by the clockwise rotation of the meter. The government and other renewable energy producing companies reuse the power in grid, which brings you revenue of full retail value for the excess current you produce with decrease in your conventional bills.

Winston Churchill once said, “To improve is to change; to be perfect is to change often”. Nepal’s aim at these crucial hours of action should be for perfection, through change, that seems possible at this moment through solar energy. We can avoid the gaps in our electricity demand and supply only if we use these technologies not just for the sake of installing. Let us re-create Nepal renewably. Shall we?