<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/6372095e9c7e80680e0b5539jpeg.jpg" alt="" width="1576" height="786"/>On 28 February, we will come either to the finish line or the starting line of <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">the US-funded Millennium Challenge Corporation (MCC) project</a> to upgrade Nepal’s infrastructure.The $500 million that the MCC is offering Nepal as a grant for the development of transmission lines and upgrading the road network needs to be ratified by that date.There has been a lot of debate in Nepal’s cybersphere and <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">the political arena that is spilling out into the streets with rallies</a>. The points of view are highly polarised, and we left logic behind a long time ago — we are now debating on emotion and rhetoric.When King Mahendra wanted the Chinese to build the Arniko Highway connecting Kathmandu to Lhasa in the 1960s, there was a similar debate about whether or not it was a good idea. India and China had just fought a war, and the Cold War was at its height.Many worried that the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/chinese-ink-wash-paintings-in-Nepal,2622" target="_blank" rel="noopener noreferrer">trans-Himalayan highway </a>would give direct access to our northern neighbour to the heart of Nepal and down to the plains, while others felt that this would be the route to open trade and commerce between Nepal and China.King Mahendra pushed ahead and built the Arniko Highway, and six decades later, it is a major artery for bilateral trade and cultural relations.Similarly in the early 1980s there was intense domestic and international debate on the development of the <a href="https://www.nepalitimes.com/here-now/dam-it-its-all-about-the-water/" target="_blank" rel="noopener noreferrer">Arun 3 hydropower project</a> that would have not only met all of Nepal’s energy demand at the time, but also allowed export of surplus energy to India.After much acrimonious debate, the <a href="http://archive.nepalitimes.com/news.php?id=11083#.Ygiu_ShBzOQ" target="_blank" rel="noopener noreferrer">World Bank pulled out of financing</a> this project. This pretty much put an end to the development of major projects in Nepal for many decades, even while Bhutan took advantage of harnessing its water resources.By negotiating with India, it used revenue from electricity exports to enhance the quality of life of its people, and raised per capita income. Decades later, <a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/" target="_blank" rel="noopener noreferrer">we in Nepal are still trying to catch up</a> in harnessing our own water resources, and develop <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">our hydropower potential</a>.Once again, we as a nation and people, stand at the point of <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer">deciding whether to accept</a> the $500 million MCC grant for the development of transmission lines and the enhancement of our road network or not.The people who need to examine the facts and make this decision are political leaders who we have trusted with our vote and put into Parliament. The decision they make must be for the wellbeing of all Nepalis, and Nepal as a nation, now and into the future.I am a banker and I can tell you that as per the guidance and direction of Nepal Rastra Bank and the government of Nepal, the banking industry as by mid-December 2021, had invested Rs215 billion in energy projects across Nepal.We need to increase this to 7% of the total loan portfolio by April, then to 9% by 2023 and 10% by 2024. This translates to 1,920MW of installed capacity, with construction licenses for 7,870MW. Of these, 214 projects are by private producers for 6,970MW, and foreign investment for 900 MW.In addition, another 37 projects for 2,576MW and 1,200MW of Investment Board Nepal (IBN) projects have applied for construction licenses. By the end of this fiscal year alone, we anticipate installed capacity to grow to 3,300MW.The nation’s focus on <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">harnessing our river resources and generating energy</a> is working, we are well on the way to being a major energy producing nation. This means that currently, Rs215 billion of the bank deposits of the citizens of Nepal are already invested into these projects through loans, and the amount will increase exponentially in the years ahead.The hard-earned deposits of millions of Nepalis are the main source of funding for the development of these projects. We stand at a point where we have to firstly stimulate domestic demand and consumption of electricity, and secondly facilitate the export of electricity to our neighbours.The common and critical factor for both these goals is the need for transmission lines across Nepal, that can effectively and efficiently evacuate the electricity from these projects, and get the power to the internal or external markets to spur the economy.If we do not start to put <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">the needed transmission infrastructure</a> in place to do this, then the turbines will spin uselessly, wasting the electricity generated with phenomenal losses. Nepal’s entire financial sector will be in peril if the hydropower sector faces such loss from spilled energy.I do not know if Nepal should ratify the MCC and take the $500 million grant, that is for our elected leaders to decide. But I do know that if we do not get the needed transmission lines in place at the earliest then the savings of millions of Nepalis that the banking sector has been directed to lend to the hydropower sector will be in troubled waters.Many thousands of Nepalis who have invested in shares of hydro projects may also stand to lose if the transmission lines are not built. Politicians who have directed the banking sector to invest such a large quantum of the Nepali peoples savings in the energy sector must have a plan on how to get the power we generate to market.As a banker, all I can say is whether we take this $500 million grant from the MCC or take loans from somewhere else, we need to get the funds to build these transmission lines.February 28 is only two weeks away. Nepal’s leaders need foresight and courage to make the correct decision for the future. It is a choice between darkness and light, deprivation and prosperity.Anil Shah is a concerned Nepali, and a banker. Excerpts from NNSD post.Read also:<a href="https://www.nepalitimes.com/latest/the-deal-breaker/">The deal-breaker</a>, Sonia Awale<a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/">Maoists backpedal on MCC letter</a><a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/">Nepal House speaker embroiled in MCC row</a>

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To be or not to be on the MCC

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d138d9c7e80680e0a992ajpeg.jpg" alt="" width="1500" height="2000"/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>While almost 10% of the Nepali population continues to live without power, the Nepal Electricity Authority (NEA) has begun to export surplus electricity to India citing the absence of transmission lines to transport power to load centres.Nepal reached a deal with the Indian Energy Exchange (IEE) on 1 November and from the following day began exporting up to 39MW of surplus electricity to India as part of the first phase of the agreement. However, even while the country sold excess electricity across the border, many parts of the far western districts of Bajhang, Dolpa, Bajura, Jumla and Mugu are not yet connected to the national grid.Three major transmission lines are in various stages of construction: the Butwal-Bhairawa double circuit which was started two years ago, the Biratnagar-Inaruwa 132KV line that began five years ago, and the Inaruwa-Dhalkewar-Hetauda 400KV transmission line which was started a decade ago.Read also: <a href="https://www.nepalitimes.com/latest/india-nepal-sign-power-exchange-deal/">India, Nepal sign power exchange deal</a><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13909c7e80680e0a992bjpeg.jpg" alt="" width="1960" height="1204">The market for electricity expands beyond the border, but industries at home, particularly cement and steel, are still unable to operate at full capacity due to the unavailability of required electricity.The <a href="https://www.nepalitimes.com/here-now/insider-trading-taints-nepal-capital-market/">Sarvottam Cement factory</a> in Sunwal of West Nawalparasi has been forced to reduce working hours and run on generators, as the NEA only supplies 8MW of electricity from the 20MW required for the factory to run at full capacity. Of that, only 6MW of the electricity is actually usable because of circuitry and voltage issues.To make up for the shortage, Sarvottam Cement set up its own diesel-powered plant, but this only adds to the cost. NEA supplies electricity at Rs10 per unit, while a unit of electricity from a diesel-powered plant costs Rs27.“The country and industry both would have prospered had the government prioritised transmission lines and increased electricity consumption within the country," says Surendra Mahaseth, manager of the electricity department at the factory. The government made a policy-level decision last year to extend the national grid, prioritising cement and agro-based industries. But delays in the <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/">construction of transmission</a> lines have stymied progress.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13939c7e80680e0a992cjpeg.jpg" alt="" width="1198" height="1227"><figcaption> </figcaption></figure>It is not just industries that are worried. Private power producers which have already started construction are worried that their power will have limited distribution because of the lack of adequate transmission lines. Adding to their doom and gloom is the protracted delay in ratifying the US-supported $500 million <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/">Millennium Challenge Corporation (MCC) project</a> to build a 400kVA transmission line in Central Nepal to distribute power westwards as well as to India through the Butwal corridor.Read also:<a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/">Missing links in Nepal’s MCC debate</a>, Jeevan R Sharma and David Seddon<a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/">MCC: damned if we do, damned if we don’t</a>Meanwhile, the Argakhanchi Cement Industry requires a transformer with a capacity of 20 mega-volt ampere (MVA) for its operation, but is only supplied with one for 10 MVA. Like Sarvottam cement, it has set up its own diesel power plant that produces 2.5MVA current.“We have been asking for as much electricity as we can get, and have been promised that it will be available soon,” says Uddhav Karki, manager of Argakhanchi Cement industry. “We will have to see if that happens.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13959c7e80680e0a992djpeg.jpg" alt="" width="750" height="352">Meanwhile, NEA has started supplying electricity this week through its 132kV Bardaghat-Sari transmission line to supply 30MW of power to <a href="https://www.nepalitimes.com/latest/going-is-tough-for-chinese-investor-in-nepal/">Hongshi Cement Nepal-China joint venture in Nawalparasi</a>. There is hope that more will follow, but so far Hongshi looks like the exception.The NEA has cited delays in building substations and transmission lines as the reason why it cannot distribute surplus electricity during the monsoon, leading to its wasteful ‘spill’. It has blamed private landowners haggling over compensation for transmission lines over their property and lengthy legal battles for the delays."All planned transmission lines under construction across the country should have been completed within two years, but there is a lot of local opposition,” says NEA spokesperson Suresh Bahadur Bhattarai. “If only these pylons could be laid, we could reach customers and not have to waste a single watt.”However, others blame the scarcity of electricity on policymakers who prefer to export electricity rather than expand and expedite transmission lines and substations to increase access within Nepal.“It is like selling food to a neighbour while your own family goes hungry,” says water resource expert Ratna Sansar Shrestha. “We would have earned much more by increasing electricity consumption in the country and reducing the use of fossil fuels. This is the result of a three-decade-long ‘grand design’ by the Nepal government to earn profit by exporting electricity instead of building infrastructure within the country.”NEA could actually earn more from selling power domestically instead of exporting it. Nepal’s private industries are paying up to Rs11 per unit in electrical bills, while the average price of electricity sold to India is just Rs4.33 per unit.Environmental campaigner <a href="https://www.nepalitimes.com/banner/breathing-is-hazardous-to-health/">Bhushan Tuladhar</a> agrees that successive governments have failed to increase domestic electricity consumption by either not having the transmission lines to take it to load centres, or pricing it too high. He asks: “Why has the government not taken any steps to operate trolleybuses and electric public transportation despite having included it in multiple five-year plans?”He adds that the government has failed to form an environment protection and climate change management committee even though it made a promise to do so years ago.Adds Tuladhar: “When the government fails to build proper infrastructure and a strategic plan to increase electricity consumption for Nepali industries, transportation and households, it is left with no choice but to export it.”Translated from <a href="https://www.himalkhabar.com/news/126589">the original</a> by Shristi Karki.Read also: <a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/">How they kept Nepal in the dark ages</a>, Ramesh Kumar<a href="https://www.nepalitimes.com/banner/nepals-1st-hydroelectric-plant-is-a-museum-piece/">Nepal’s 1st hydroelectric plant is a museum piece,</a> Ramesh Bhushal

Anita Bhetwal

Nepal’s precious electricity going waste

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84239c7e80680e06777ajpeg.jpg" alt="" width="1500" height="1037"/><figcaption>A view of the project from across the Langtang Valley showing the receding Langtang Lirung Glacier, and the location of the intake, penstock and powerhouse. There is a drop of 300m, and the turbines generate 100kW of electricity. Photos: KUNDA DIXIT</figcaption></figure>From the edge of the terminal moraine of the Langtang Lirung Glacier, there is a 360 degree view of icy peaks, and below is the monastery town of Kyanjin blanketed in overnight snow.Towering above is Langtang Lirung with snow being blown off its 7,227m summit, with the jagged peaks of Kimshun standing like bodyguards with Tserko Ri, Yala Peak and Gang Chhenpo. And to the south is the rampart of the Naya Kanga ridge.“When I was a boy we brought the yaks up here to graze, and they could cross the ice from one side of the glacier to the other,” says Gyalbu Tamang. “This lake was formed only in the last 20 years.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84269c7e80680e06777bjpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>As climate change thaws the mountains, right across the eastern Himalaya in Nepal, Bhutan and southern Tibet, hundreds of new lakes have formed at the snouts of glaciers. Some have found outlets and emptied themselves, while others, like this one, swelled up dangerously.In the past 40 years, there have been 26 <a href="https://www.nepalitimes.com/banner/langtang-copes-with-quake-and-covid/">glacial lake outburst floods on Nepal’s rivers</a>, and with newer and bigger lakes forming, they pose a serious risk to new roads, settlements and hydropower plants downstream.However, glacial lakes do not just need to be a threat, as has been shown by a unique project on the Langtang Lirung Glacier. This glacial lake at 4,100m is being drained to lower its level, and the water is used to generate electricity.The Langtang Microhydro Electricity Project was built three years after the 2015 earthquake-avalanche that devastated the valley, with help from the Hong Kong-based Kadoorie Charitable Foundation. The $534,000 scheme has a weir and spillway at the moraine, and the water is taken through a fibre glass-insulated penstock pipe to a powerhouse that generates 100kW of electricity, providing 24 hours of electricity to 120 households and tourist lodges in Kyanjin and Langtang.The project is a first-of-its-kind in Nepal to power a village, and holds promise for other remote Himalayan valleys where the risk posed by expanding glacial lakes can be mitigated, while at the same time providing electricity to tourism-dependent families.“It can be a plus-plus, you need to simply drive a glacial lake to turn a turbine while simultaneously lowering the water level and reducing the pressure on the moraine dam,” says energy economist and former Water Resource Minister <a href="https://www.nepalitimes.com/review/finding-the-nexus-between-water-food-and-energy/">Dipak Gyawali.</a>The only downside would be that most glacial lakes are at very high elevations where there are few settlements, and also the greater cost of transporting equipment by helicopter. But if the risk-reduction from glacial lake outburst floods is factored in, these multi-purpose projects would be cost-effective.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b842a9c7e80680e06777cjpeg.jpg" alt="" width="1125" height="1500"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b842d9c7e80680e06777djpeg.jpg" alt="" width="1250" height="938"><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84309c7e80680e06777ejpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>There are other dangerous glacial lakes in Nepal like <a href="https://archive.nepalitimes.com/article/from-nepali-press/Diverting-danger,3172">Imja</a> in the Everest region and <a href="https://www.nepalitimes.com/banner/human-face-of-a-himalayan-climate-crisis/">Tso Rolpa</a> in Rolwaling Valley, where the water level has been lowered at enormous cost, but the schemes have not added the hydropower component. Tso Rolpa had a small power unit to supply electricity to the project, but it is not in use. Imja was financed by the UNDP with funding from the Global Environment Facility, while Tso Rolpa was funded by the Dutch government.Glacial lakes have been used to generate power in the Peruvian Andes, and in the Swiss Alps existing reservoirs filled with glacial melt have been generating 4% more electricity because of accelerated melting. The Swiss are even <a href="https://www.nytimes.com/interactive/2019/04/17/climate/switzerland-glaciers-climate-change.html">mapping future hydropower plants</a> on glaciers for a time when all the ice will be gone. In <a href="https://www.nature.com/articles/nclimate2185.pdf?origin=ppub">Bhutan, a pilot scheme</a> on a glacial lake at 4,200m is trying to lower the water level using siphons, and plans to also see if it is feasible to generate electricity.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84349c7e80680e06777fjpeg.jpg" alt="" width="1250" height="689"><figcaption> </figcaption></figure>Experts say that with a little more investment, the moraine dams on glacial lakes can be strengthened for a fraction of a cost of building a new artificial dam for electricity generation. For this, the Langtang Microhydro Project presents a working model for other glacial lakes in Nepal where there are plans to lower the water level."In previous decades it used to be expensive to build power plants on glacial lakes because they were so remote, but now that roads have reached many valleys, they are more feasible," says glaciologist Pradeep Mool.Gyalbu Tamang lost his parents and many relatives in the <a href="https://www.nepalitimes.com/banner/langtang-copes-with-quake-and-covid/">catastrophic earthquake-avalanche in 2015</a> that killed as many as 300 people in Langtang. But for him and other trekking lodge owners who used to depend on solar panels, the 24-hour electricity has transformed the quality of life.He says: “We can charge our phones, use appliances, the children can read at night, it is like living in a city.”Read also: <a href="https://www.nepalitimes.com/banner/danger-nepals-glacial-lakes-are-filling-up/">DANGER: Nepal’s glacial lakes are filling up</a>, Nepali Times

Kunda Dixit

Nepal’s first hydropower from a glacial lake

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933719c7e80680e03df9bjpeg.jpg" alt="" width="650" height="581"/>The conclusion of the Intergovernmental Panel on Climate Change (IPCC) Special Report on <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/">Global Warming</a> of 1.5ºC could not have been more blunt: human-induced global warming poses an existential threat to the planet. And to Nepal.To avert this, the report has called for pathways that look unachievable. The US government has already indicated it will withdraw from the 2015 Paris Agreement that agreed on measures to limit worldwide average temperatures rise to 1.5-2ºC by 2100. Developing countries like India and China are now the biggest producers of greenhouse gases.Actions that could help minimise the impact of climate change risk have been slow. Part of the reason is socio-cultural. Citizens in developing countries feel they were not responsible for the problem, the impact may be felt at some point in the future, so why worry? There is a prevalent view that weather extremes have always been with us, people are used to coping with them, and have carried on with their lives. Some feel human ingenuity will prevail, and there will be a technological solution.Read also: <a href="https://www.nepalitimes.com/editorial/climate-climax/">Climate Climax</a>, Editorial<a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">From a fossil past to an electric future</a>, Om Astha Rai<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933739c7e80680e03df9cjpeg.jpg" alt="" width="327" height="327">Leaders of developing and least developed countries that suffer the worst consequences of <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/melting-mountains-shake,3073">global warming</a> argue that their priority is economic development, and they can invest in clean energy later when they can afford it.The net global C02 emission pathways in the IPCC Special Report requires the curve to come sharply down after 2020 and reach zero emission by 2040 or 2050 (see graph). How will this happen? To answer this, we have to first ask how we got here in the first place.Climate change is a consequence of the global economic order of the past two centuries that was powered by burning fossil fuels. It has brought benefits, but also given the world inequality, dependence, degradation of nature, and nationalistic populism. In the US that is a partisan divide between climate change believers and deniers. Liberal democracy is faltering in Europe.Read also: <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Electri-City Cars</a>, Sikuma Rai<a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha Rai<a style="outline: 0px;" href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/">The great Himalayan thaw</a>, Ajaya DixitIn the past six decades, many developing countries including Nepal sought foreign aid to lift living standards, but the strategy did not bring about structural changes that would have helped ensure social welfare and environmental protection. The economic model was western-inspired wasteful consumerism. In Nepal, this saw social and political movements, and country suffered three border blockades, a decade-long war, five constitutions, a palace massacre, and the replacement of a monarchy with a federalised republican order. Nepal’s current socio-politics shows signs of regression, while the economy is built on ecologically-destructive extractive practices.Most solutions are externally imposed, and have only worked when co-produced with communities. Past investments have been piecemeal and have not yielded the desired systemic impact. Similar inertia prevails in almost all countries: the status quo is too comfortable, and the ruling classes benefit from business as usual. Added to that is the populism of deniers.Given the prevailing dogma in both the rich and poor countries, it is unlikely that <a href="https://archive.nepalitimes.com/regular-columns/half-full/A-carbon-neutral-Nepal-is-possible-clean-Nepal,1064">carbon</a> curve will become less steep as hoped for in the IPCC Report. Nepal’s Prime Minister K P Oli, while launching the fist electric buses in Kathmandu last week, announced a National Action Plan for Electric Mobility under which <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/">20% of public transport will be battery operated by 2020</a>.This proposition, theoretically, can offset some emission and fuel cost, but without clear thought-through investment strategy,<a href="http://archive.nepalitimes.com/news.php?id=18118#.W9vjX9UzbIU"> petroleum import</a> will not fall. Since 2000, import of petroleum products has increased by more than three times.  Weaning the economy towards renewables needs statesmanship and vision – both of which our rulers lack.Imported electric vehicles will not build backward linkages in the economy, and the trade deficit will continue to grow. Without a fundamental reorientation of its economy towards a more self-reliant clean energy supply, and a stronger commitment to protecting ecosystems, Nepal will not meet decarbonisation targets.Globally, bringing carbon emissions to zero in the next 30 years will need incentives on investments globally and within individual countries which promote social equity, protect nature, improve governance and prioritise a low carbon lifestyle.Ajaya Dixit is Executive Director of Kathmandu based ISET-Nepal. His monthly column Climate for Change in Nepali Times deals with the impact of global warming in Nepal.

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To be or not to be on the MCC

Nepal’s precious electricity going waste

Nepal’s first hydropower from a glacial lake

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