Plenty of Power, Nowhere to Go

Nepal is entering another monsoon season with a familiar problem in its power sector: the country will generate a large volume of electricity but waste a significant share of it. During the peak monsoon months this year, leaked or unused power could rise to around 1,200 MW. The primary reason for this massive wastage is the failure of authorities to develop transmission lines and distribution systems at the same pace as power generation. Nepal now has close to 4,000 MW of installed capacity, but delays in building transmission lines, forest clearance hurdles, land compensation disputes, and weak coordination between the Nepal Electricity Authority and private developers have resulted in much of this power going unused. What makes the situation harder to accept is that Nepal is already exporting electricity. Power sales to India and Bangladesh have generated more than Rs 18 billion in revenue. Even so, during the monsoon season, 700 to 800 MW of electricity is wasted every day. While domestic demand declines during this period, limited internal and cross-border transmission capacity constrains supply.