Nepal has been reeling under massive power outages for the last few years despite investing billions to fulfill its energy needs by importing alternative means of energy.
“The demand for inverters, UPS, batteries, generators and solar has skyrocketed in recent years due to frequent load-shedding,” said hydropower entrepreneur Gyanendra Lal Pradhan.
Nepal will have to spend at least Rs 30 billion just to import alternative means of energy in current fiscal year, he said, adding that the calculation of Federation of Nepalese Chambers of Commerce and Industry has showed that the country has to import diesel worth Rs 18 billion to generate energy for industrial purposes.
He said that Rs 5 billion has been invested just to import generators.
Similarly, the country spent a total of Rs 4 billion to import batteries and the same amount to buy electricity from India, in addition to purchasing equipment worth Rs 1 billion to generate power from solar, he said.
Imports of petroleum products have also increased each consecutive year due to power outages.
“It is estimated that fuel imports will touch Rs 100 billion in the current fiscal year,” he said, adding the amount will swell to Rs 120 billion in next fiscal year due to continuous rise in demand.
The cost of generating energy using fuel is expensive compared to hydropower, said Pradhan. “But, industries are compelled to use diesel and other alternative means due to power shortages.”
The government should encourage small-scale hydropower projects to address the problem of power scarcity since the import of alternative means of energy is not a long-term solution to the energy crisis that the country has been facing, he said.
By the third quarter of the current fiscal year, Nepal had seen a whopping trade deficit of Rs 284.6 billion. It has exported only Rs 55.24 billion worth of merchandise but imported Rs 339.84 billion worth, said the central bank, which revealed the total trade deficit of Rs 307.53 billion.
