At the annual Nepal Power Summit in Kathmandu on 18-19 April, officials called on India to allow Nepal to export power at real-time prices, not just in the day-ahead market. Also discussed was a need for more flexible guidelines on market access for Nepal’s electricity to India which currently buys power on a project-to-project basis, pointedly boycotting those built by Chinese investment or contractors. India’s interest in regulating Nepal’s rivers is not new, but with the Himalaya becoming a geopolitical and climate hotspot, its strategic interest in regulating river flow has grown.&nbsp; Climate models show that the hydrology of Himalayan rivers will change dramatically in the coming decades, with peak water in the 2030s, and low flow levels in the dry season thereafter. With 70% of the annual discharge on the Ganga flowing down from rivers in Nepal, 75% of it in the four monsoon months, storage projects in the mountains will be ever more important. Because of this, New Delhi would like pliant politicians in place in Kathmandu that will not obstruct its plans to ensure future water supply, and given current geopolitical tensions, this also means keeping the Chinese out.&nbsp; Ever since Sher Bahadur Deuba became prime minister for the fifth time in 2021, he has fast-tracked a slew of projects in which Indian companies are involved, including the West Seti reservoir project that has languished for 20 years mainly because of Indian objections to Australian and Chinese investment. Most recently, Indian National Hydroelectricity Power Corporation (NHPC) Limited is in talks to be awarded the 480MW Phukot Karnali Hydroelectric Project in Kalikot jointly with Nepal’s state-owned Vidyut Utpadan Company Limited with a share ratio of 51% to 49%. The project will likely be launched during Prime Minister Pushpa Kamal Dahal’s state visit to India in May. India’s NHPC has already been granted licenses for West Seti and Seti River-6 projects, and is also eyeing another 1,902MW megaproject on the Karnali.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050603050_10fc6c82b0d995c39b388d8d8628365ea5e2299a1f4d474e2c2d5b7f01d37d83.jpg" data-media-id="editor_0" data-image-id="2023050603050_10fc6c82b0d995c39b388d8d8628365ea5e2299a1f4d474e2c2d5b7f01d37d83" data-rendition-name="original" width="3776" height="2424" loading="lazy" alt="West Seti"> <figcaption>Sushil Bhatta of Investment Board Nepal and Abhay Kumar Singh of India's NHPC, after signing an agreement to develop the 760MW West Seti and 460MW Seti River 6 projects in 2022.</figcaption> </figure>  In fact, across Nepal, Indian companies are building hydropower projects which will add a combined total of 4,000MW to the grid, three of which were rushed through only in the past year. Three more Indian projects are in the pipeline.&nbsp; Why the sudden renewed Indian interest in Nepal’s rivers? And what is the hurry? The answer lies in the need to plan for the decades ahead when water is going to be an even scarcer commodity in the Indo-Gangetic plains than it is now because of climate change, increased industrial, agricultural and household consumption. Energy analysts say that although India’s interest seems to be in renewable energy from hydropower to fulfil its decarbonisation commitments, exports of power from Nepal is only projected at $800 million in the next three years, which will only be a tiny percentage of the 1,600 billion kWh that India generated in the last fiscal year.&nbsp; And although power demand is expected to rise with rising incomes, industrialisation and increasingly intense summer heat waves in the plains, India’s long-term interest is in reservoir projects to store monsoon water in Nepal’s rivers to reduce monsoon flood risk and keep rivers flowing in the dry season. And New Delhi has not tried to hide its distaste for any Chinese involvement in these projects.&nbsp; Hydropower Investment and Development Company Nepal (HIDCL) in which the government is a majority shareholder informed the Investment Board Nepal in February that it was withdrawing from the export-oriented 762MW Tamor Hydropower project.&nbsp; CEO Arjun Kumar Gautam is upfront about why: “We cannot sell electricity generated with Chinese involvement in the Indian market.” Tamor was one of the two projects agreed upon during Chinese President Xi Jinping’s visit to Nepal in October 2019. Soon after, Investment Board Nepal (IBN) signed up China Construction to build the project after completing a feasibility study. The HIDCL now wants to null the agreement with the Chinese contractor and bring in a new contractor more amenable to the Indians. Meanwhile, India’s state-owned <a href="https://sjvn.nic.in/">Satluj Jal Vidyut Nigam</a>, which is involved in a cascade of projects on the adjoining Arun River to generate a total of 2,000MW, is said to be aggressively lobbying top Nepali officials to also build Tamor. Besides the 900MW Arun 3, Satluj was awarded the Lower Arun by the K P Oli-led government in 2021 without competitive bidding. Then in May 2022, the Sher Bahadur Deuba-led government suddenly awarded Arun 4 to Satluj (with a 51% share) during Indian Prime Minister Narendra Modi’s visit to Lumbini.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230506020556_4f38ffb96de37f17c662684914f0b65ab41adaaf98183a073273e88621de480b.jpg" data-media-id="editor_2" data-image-id="20230506020556_4f38ffb96de37f17c662684914f0b65ab41adaaf98183a073273e88621de480b" data-rendition-name="original" width="1000" height="666" loading="lazy" alt="Arun 4 agreement"> <figcaption>Indian Prime Minister Narendra Modi and then Prime Minister Sher Bahadur Deuba look on as Satluj Jal Vidyut Nigam's Nanda Lal Sharma and the NEA's Kulman Ghising exchange MoUs in May 2022 in Lumbini to build the 409MW Arun 4. Photo: RATNA SHRESTHA/RSS</figcaption> </figure>  But even though Satluj is said to be also interested in the 1,061MW Upper Arun, Kulman Ghising of the Nepal Electricity Authority (NEA) says it is building the project. "Upper Arun is our first priority, we are planning to start the construction of the access road," Ghising told us. Arun and Tamor are both in eastern Nepal (see map), but India is also interested in rivers in western Nepal because of the proximity of its main load centres as well as to augment the dry season flow of Nepal’s rivers that flow into the Ganga.&nbsp; There was some hue and cry last year after the Deuba-led government abruptly handed over the 750MW West Seti Dam and Seti River-6 projects to two Indian state-owned companies without competition or transparency. Experts pointed out that Nepal’s Public-Private Partnership and Investment Act 2075 states that there should be competitive bidding.&nbsp; The Seti saga is three decades long. After successive partnerships with Australian, Chinese and private Indian companies fell through, India’s state-owned NHPC finally took the lead. Since the terms of the deal are opaque, many experts question how beneficial the $1.6 billion project that involves building a high dam in the Doti district will be for Nepal.&nbsp; Indian state-owned companies appear to move faster than private Indian companies interested in river projects in Nepal. The GMR Group (Gandhi Mallikarjun Rao) obtained a permit to build the 900 MW Upper Karnali and a Project Development Agreement (PDA) was signed with the IBN in 2014 with plans to start construction in two years after securing funding. The government's latest decision to extend the deadline for the GMR by two years is being challenged in Nepal’s Supreme Court.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050603054_0b5cc52ed5ece09ac54bf7fd42d663e156bd8a721203fecad4470d449722bfd9.jpg" data-media-id="editor_3" data-image-id="2023050603054_0b5cc52ed5ece09ac54bf7fd42d663e156bd8a721203fecad4470d449722bfd9" data-rendition-name="original" width="1083" height="834" loading="lazy" alt="Indian investment in hydropower in Nepal"> </figure>  Geopolitical games The export-oriented 456MW Upper Tamakosi project finally started production in June 2021 after much delay. But because a part of the Upper Tamkosi was built by the Sino Hydro of China, India refused to buy power from the project during the monsoon surplus last year – even though it was built with NEA investment.&nbsp; One international lender told Nepali Times: “Obtaining an Indian nod before building any big hydropower project in Nepal has now become a must.” Indian pressure manifests itself in its refusal to buy only 364MW of electricity which was recently increased to 452MW. This is the sum total of generation capacity with no direct Chinese involvement. Nepal also cannot sell its power to China as there are no trans-Himalayan transmission lines, and exporting to Bangladesh would need an Indian approval system without giving a free and open market to Nepali electricity, while also rejecting any Chinese involvement. India’s international electricity trade procedure issued in February 2021 prohibits the import of electricity from projects invested in third countries that do not have a bilateral agreement for cooperation in the energy sector. The fact that India does not have an energy cooperation agreement with China has therefore become an excuse, not just to blacklist projects in Nepal with Chinese investment, but even Chinese contractors. India has even stopped the supply of explosives for projects like the Tanahu and Upper Trisuli-1 Schemes being built by Chinese contractors.&nbsp; "Even though there is nothing in writing, India does not want any involvement of the Chinese in any capacity in Nepal's hydropower projects, they even have details of which country is the contractor and where are the machines being used from," explains Ganesh Karki of the Independent Power Producers Association Nepal (IPPAN). India first allowed imports of electricity only from the 24 MW Trisuli and 15 MW Devighat projects, both built by the Indian in the 1960s. But after Deuba signed an agreement on energy cooperation between the two countries in 2022, NEA was allowed to 364MW.&nbsp; Even so, Nepal must renew this export provision every year, which is a bureaucratic hassle. What this essentially means is that if Indian companies do not get licenses for new plants in Nepal, they may not renew the power-selling contract either. Nepali officials have been trying to convince the Indian side that it is in their own best interest if Nepal has a surplus in the coming years. Based on projections of generation capacity, NEA has sent a proposal to New Delhi to export an additional 600MW.&nbsp; The installed capacity of hydropower projects in Nepal has reached 2,400MW and is expected to cross 3,000MW after the completion of more projects this monsoon. Projects with a combined capacity of 3,200MW are under construction and will be completed in the next three years. On the demand side, the average domestic consumption at present is about 1,600MW and is expected to increase only to 2,000MW next year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050603054_1ba6d252b58558d3d1263b0f76e3abbfc1c9dd3c019f8d9d47bd8aa415651e3f.jpg" data-media-id="editor_4" data-image-id="2023050603054_1ba6d252b58558d3d1263b0f76e3abbfc1c9dd3c019f8d9d47bd8aa415651e3f" data-rendition-name="original" width="1171" height="834" loading="lazy" alt="Hydropower generation in Nepal"> </figure>  &nbsp; <div class="embed-block"><div class="flourish-embed flourish-chart" data-src="visualisation/13536204"><script src="https://public.flourish.studio/resources/embed.js"></script></div></div> &nbsp; <div class="embed-block"><div class="flourish-embed flourish-chart" data-src="visualisation/13535503"><script src="https://public.flourish.studio/resources/embed.js"></script></div></div> There are critics who say Nepal should not be exporting power to India at all since it will not make a big dent in the trade deficit, and the $85.8 million it earned last year is negligible compared to the $8.33 billion Nepal earned in remittances.&nbsp; They say the priority should be on increasing electricity consumption in cooking, transportation and industry. At present, 70% of Nepal’s energy is from biomass and only 5% is from electricity.&nbsp; Since most of the electricity in Nepal is from run-of-river schemes in which generation depends on the flow of water in rivers, Nepal will have to continue to import power from India during the peak winter months for the next three years. In the monsoon, though, generation is double of demand, but the Indian quota, inadequate transmission and low domestic demand mean much of this clean electricity is wasted.&nbsp; Dinesh Kumar Ghimire at the Energy Ministry says Nepal is looking to sign a 25-year export agreement with India. "We are preparing a draft for the agreement. If both sides are on board with it, there may be an agreement during the Prime Minister's visit to India.” Edging out China While India is awarded one hydropower project after another in Nepal, China is being edged out. Both Phukot Karnali and Tamor hydropower projects were supposed to be implemented under Beijing’s Belt Road Initiative (BRI) scheme.&nbsp; Last month, Sichuan Wangping Energy Science and Technology gave up its license to build the 235MW Humla Karnali-1 and 335MW Humla Karnali-2 in partnership with a Nepali company. The survey permit for these projects has now been granted to Ruru Hydropower, a Nepali company. The 1,200MW Budi Gandaki reservoir project has been caught in a geopolitical tangle between India and Nepal for the past six years. In May 2017, the Pushpa Kamal Dahal government handed over the project to China’s Gezhouba Group without competition. A few months later in October, the Deuba-led government reversed the decision and said Nepal would build it. Fast forward a year later and the Oli-led government gave Budi Gandaki back to Gezhouba, only for the Deuba-led coalition government in March 2022 to reverse the decision again. Exasperated, the then-Chinese ambassador Hou Yanqi said abandoned diplomatic niceties and said publicly that it was wrong for Nepal to change its decision every time a government changed. Says Ganesh Karki of IPPAN: “We have to conclude that because of India’s stance, it is difficult to get Chinese investment in Nepal’s hydropower. The top political leadership should lobby with India to remove this obstacle.” The hydro of hydropower&nbsp; Nepal’s former energy secretary Dwarika Nath Dhungel is convinced India considers water a strategic commodity, and its emphasis on electricity export hides its real intention to secure water supply in the coming decades.&nbsp; “We in Nepal, on the other hand, have no idea about this, and there is no clarity about our own water and energy policy. In fact, our policymakers are not working in the national interest at all,” he adds. Studies have shown that water scarcity in the Indo-Gangetic plains will increase as Himalayan glaciers dry up, and the groundwater level falls due to over-extraction. And in the monsoon, there is too much water, so the world’s most densely populated region is hit by destructive floods. &nbsp; Building storage dams in Nepal is a win-win-win for India, reducing flood risk, augmenting dry season flow of Nepali rivers that flow across the border, and generating electricity. Nepal will get some export income, but will not benefit much from irrigation since it only has a narrow strip of land in the Tarai, and large tracts of its fertile mountain valleys will be inundated by future reservoirs. “Nepal’s export of a few thousand megawatts will not mean much for India's huge power system with a capacity of around 400,000MW,” adds Dhungel. “What India is fixated on is our water. And that is why it does not want any third parties involved, especially not China.” Former secretary at the Ministry of Energy Anup Kumar Upadhyay on the other hand is all for more Indian investment in Nepal’s hydropower, and does not think there is any ulterior motive. He argues that the model in which Nepal is allowing Indian companies to build projects is beneficial to Nepal in the long term. At present, Indian companies that have received permission to build hydropower plants have agreed to provide about 22% of electricity to the Nepal government for free. And after 25 years, these projects will be fully owned by Nepal. Says Upadhyay: "Whatever projects we are giving to India now, India does not even have the benefit of regular water flow from them, so there is no reason to be suspicious that India has a grand design to control our rivers." Indeed, there are many in Nepal, even those critical of Indian behaviour, who say Nepal cannot choose its neighbours and it might as well keep India happy by ensuring that the river agreements are fair to Nepal as well.

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Geopolitics of Nepal’s rivers

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2023020814028/63e39f2d9c7e80680e0d6fdfjpeg.jpg" alt="" width="1200" height="900"/><figcaption></figcaption></figure>In Nepal, the new year coincides with a newly elected federal Parliament being installed. And as the <a href="https://www.nepalitimes.com/editorial/new-year-challenge-to-new-government/" target="_blank" rel="noopener noreferrer">new government</a> takes shape, there is a lot at stake.Besides improving governance and service delivery, one of the most urgent tasks is to manage Nepal’s energy policy in 2023 and beyond.Nepal must do this not just to meet its own pledges under the Nationally Determined Commitment to decarbonise that it made to the international community, but to <a href="https://www.nepalitimes.com/banner/global-crisis-local-solutions/" target="_blank" rel="noopener noreferrer">save its economy from collapse</a> and to protect public health.The rate at which Nepal’s petroleum import is growing is economically unsustainable. It is now 20% of total imports, and more than all its exports combined. <a href="https://www.nepalitimes.com/banner/warning-breathing-is-hazardous-to-health/" target="_blank" rel="noopener noreferrer">Burning fossil fuels</a> is also endangering the lives of Nepalis, reducing the average lifespan of city-dwellers by up to 4 years.Read also: <a href="https://www.nepalitimes.com/banner/can-nepal-go-from-hydro-to-hydrogen/" target="_blank" rel="noopener noreferrer">Can Nepal go from hydro to hydrogen?</a>, Kunda DixitThe <a href="https://www.nepalitimes.com/banner/oli-dahal-political-deja-vu/" target="_blank" rel="noopener noreferrer">new coalition government</a> has very little excuse for not accelerating the country’s energy transition from petroleum to renewables. Nepal has all the resources, sufficient budget, and a vast array of clean energy possibilities with multi-dimensional benefits.The energy crisis must be placed front and centre in the new government’s agenda because it has implications on so many fronts, including making Nepal more politically dependent on India.Among the alternatives, Nepal’s vast hydroelectric resources can be used to <a href="https://www.nepalitimes.com/banner/potholes-in-the-highway-to-nepals-ev-future/" target="_blank" rel="noopener noreferrer">power public transport</a>, domestic cooking, and industries. There are greater value-added benefits if Nepalis can use domestically-produced hydroelectricity rather than exporting it for cheap to India.Every Nepali high school student’s social studies textbook has an entire chapter devoted to the country's hydropower potential from its perennial rivers, and it is presented as the resource that will safeguard the country’s future.Ironically, it is climate-induced disasters like as <a href="https://www.nepalitimes.com/banner/the-climate-crisis-is-a-water-crisis-in-the-himalaya/" target="_blank" rel="noopener noreferrer">glacial lake outburst floods</a> and high runoff that can destroy the very hydropower plants that we need as an alternative to greenhouse gases. We have seen the <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank" rel="noopener noreferrer">destructive debris flows on the Melamchi </a>and Dordi Khola. Risk assessment prior to construction should now be mandatory for all riverine projects.Even though a switch to renewables is important to save the economy, nearly 70% of Nepalis still depend on biomass for domestic energy — firewood, dried dung and other farm residue. This comes with the dangers of indoor pollution, which means alternatives like <a href="https://www.nepalitimes.com/here-now/more-bullshit/" target="_blank" rel="noopener noreferrer">bio-CNG</a> hold much promise.Besides helping energy self-sufficiency, expanding <a href="https://www.nepalitimes.com/banner/this-is-bullshit/" target="_blank" rel="noopener noreferrer">bio-CNG and biogas production</a> in all seven provinces can generate side jobs for farmers, help in waste management, and produce organic fertiliser to reduce dependence on imported chemical fertilisers.Another much-delayed policy measure is Nepal Electricity Authority (NEA)'s plan to install net metering for <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener noreferrer">solar power generation</a> which will allow households to feed surplus energy into the national grid, and get paid for it. Not only would this ensure energy security, it would also be an incentive for businesses to switch to clean energy. We have no idea why such a win-win policy has not been implemented yet.It is not that Nepal is moving in the wrong direction with its energy sector. There is increased awareness about the benefits of clean energy and the public, already coping with record high fuel prices, wants alternatives. But the pace at which Nepal is moving is so slow that petroleum imports are growing faster than ever.The <a href="https://www.nepalitimes.com/here-now/ukraine-climate-and-nepal/" target="_blank" rel="noopener noreferrer">war in Ukraine</a> has shown the world that a self-sufficient energy sector is the best thing a country can have at times of geopolitical turmoil. As far back as April 2022, the European Council had already realised the impact of a stoppage of Russian gas supply to Europe.The EU announced economic sanctions on Russia and its oligarchs, but imports of gas continued. A quarter of Europe’s gas imports were from Russia, and it needed time to switch to alternative supply sources.Much of the EU's dependency on Russian gas is fuelled by countries like Germany, Italy, France, and Spain. And Germany imported more than half of its gas from Russia before Putin’s war. Today, despite pressure to stop imports, it still imports a quarter of its gas from Russia.What has happened in Europe in the past year has been replicated across the world, including in <a href="https://www.nepalitimes.com/here-now/ukraine-crisis-hits-nepal-economy-hard/" target="_blank" rel="noopener noreferrer">Nepal with inflated fuel prices</a>. This shock is the right opportunity to spur policy decisions to accelerate the switch to renewable energy.Depending on fuel from abroad means that a country's economy is, to some extent, in the hands of the exporter. The exporter can choose how and when to pressurise and increase prices, as we have seen Russia doing this past year, or with <a href="https://archive.nepalitimes.com/article/editorial/autopsy-of-a-blockade%20,2863" target="_blank" rel="noopener noreferrer">India’s Blockade of Nepal in 2015</a>.But it also means that fossil fuel exporting countries should now start planning for peak oil, and declining petroleum demand worldwide, as Europe is already seeing.Sooner or later, things will change around the world. But for Nepal, there is no sooner or later. Things must change now.

Nepal’s energy policy in 2023 and beyond

<figure><img width="3600" height="2400" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a3d9c7e80680e0b5590jpeg.jpg" alt=""/><figcaption>Photo:RSS</figcaption></figure>Five years after Nepal signed the US-funded <a href="https://www.nepalitimes.com/banner/its-decision-time/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC)</a> compact in 2017, Parliament on Sunday finally ratified the $500 million grant for much-needed transmission lines to distribute and export power.Key leaders from the Maoists, including Narayan Kaji Shrestha, Giriraj Mani Pokhrel, Krishna Bahadur Mahara, Dev Gurung and Leela Mani Pokhrel maintained their opposition until the last minute, as did leaders like Jhala Nath Khanal from the Unified Socialists, who said he would not participate in the vote.Gagan Thapa of the Nepali Congress in his address offered blistering criticism of those who were opposed to <a href="https://www.nepalitimes.com/banner/high-tension-in-nepal/" target="_blank" rel="noopener noreferrer">the project</a>, calling out former prime ministers present in Parliament for their duplicity. “Those who call us traitors for wanting to move forward with the project now need to point their fingers at themselves, and reflect on their own words and actions during their leadership,” said Thapa, alluding to leaders of Nepal’s Communist parties. Janata Samajwadi Party (JSP) leader Baburam Bhattarai during his remarks also addressed opponents of the project, saying, “Those leaders should have the courage to admit they were wrong for opposing the project in the past, and then retire from politics."Parliament vote followed a meeting of the five-party coalition held at the Prime Minister’s residence in Baluwatar on Sunday morning, which finally decided to endorse the agreement after months of back-and-forth mainly by the Maoist Centre and the Unified Socialists of the that had <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatened to dismantle</a> the governing alliance. Party leaders <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/" target="_blank" rel="noopener noreferrer">Pushpa Kamal Dahal</a> and Madhav Kumar Nepal agreed to support ratification on the condition that it be accompanied by an ‘interpretative declaration’ addressing concerns about the project.Gagan Thapa, Maoist leader Shakti Basnet and Unified Socialist-affiliated lawyer Govinda Bandi were tasked to mediate and prepare the declaration.  <img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a419c7e80680e0b5591jpeg.jpg" alt=""><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a449c7e80680e0b5592jpeg.jpg" alt="">Party insiders said that the Unified Socialists were forced to vote in favour of the compact after Prime Minister Sher Bahadur Deuba explored the possibility of forming an alliance with the UML to mobilise support for the project. KP Oli of the opposition UML for his part had maintained that he would support the MCC only if the NC left the coalition, a demand that was critical for <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">elections this year</a>.  The interpretative declaration is meant to assuage the Maoists and Unified Socialists concerns about articles included in the Compact, which leaders of the two parties had repeatedly said is against Nepal’s national interest, and superseded Nepal’s laws, sovereignty, and the Constitution. The interpretative deceleration addresses <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">concerns of the Communists</a> and was drafted by Thapa and will be appended to the ratification. It states that Nepal does not consider itself to be bound by any strategic, military or security alliance of the US, including its Indo-Pacific Strategy, and that Nepal is not obliged to comply with existing or future US laws or policies for any purpose other than the use of grants. The declaration also states that project related activities will be regulated by the laws of Nepal, and that Nepal will own all intellectual, movable and immovable property created under the Compact. The declaration stipulates all activities and funds of Nepal be audited by Nepal’s Auditor General. Another point states that Nepal can reject the grant amount by giving thirty days prior written notice if Nepal’s laws are violated. But even as the declaration seems to have kept the governing coalition intact and ratified <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">the MCC</a>, experts have questioned the validity of such a document. "One country does not have the sole right to make explanatory comments on an agreement that was formed between two countries, and doing so could be seen as a coercion,” says constitutional expert Bipin Adhikari. "It would have been better to pass a resolution.” Others have called the document redundant, and that it is merely a face-saving exercise for the Maoists and Unified Socialist leadership. “Nepal’s political leaders <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium-2/" target="_blank" rel="noopener noreferrer">spread misconceptions about the MCC</a> among the public in the past to such a degree, and have had to backtrack now,” former Supreme Court Justice Girish Chandra Lal told Himalkhabar, “Now, they find themselves in a position of having to save face in front of their party workers.” The much delayed infrastructure grant project was presented in Parliament members for deliberation over the Compact in the afternoon, and a verbal vote was conducted late on Sunday night. Discussions regarding the project took place even as the main opposition UML stood in protest in front of the rostrum upholding their demand that Unified Socialist MPs be expelled, having gotten up from their seats as soon as <a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/" target="_blank" rel="noopener noreferrer">Speaker Agni Sapkota</a> began his opening remarks while anti-MCC protesters clashed with police outside Parliament. <figure><img width="1267" height="845" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a489c7e80680e0b5593jpeg.jpg" alt=""><figcaption> </figcaption></figure><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a4b9c7e80680e0b5594jpeg.jpg" alt=""><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a4e9c7e80680e0b5595jpeg.jpg" alt=""><img width="1242" height="828" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a519c7e80680e0b5596jpeg.jpg" alt="">Even before and while Parliament voted, organised protests against the MCC had been going on all day in the streets outside as police used water cannons against brick throwers at the barricades.Most of the $500 million grant is earmarked for the <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">Kathmandu-Hetauda-Butwal 400kVA transmission line</a> to distribute electricity from existing and new hydropower plants in central and eastern Nepal, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.Nepal is currently generating 2,000MW of hydroelectricity with an additional 2,500MW under construction. This figure will soar to 7,300MW by 2025 as per Nepal Electricity Authority (NEA) estimates. The country <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/" target="_blank" rel="noopener noreferrer">stands to lose Rs142 billion annually</a> without transmission lines to evacuate surplus electricity. Following the endorsement of the grant, the US Embassy Nepal released a press statement where it says that the decision whether to ratify the compact always rested with the Government of Nepal which will will now be able to continue to work towards implementing the five-year program."Today's decision by Parliament to follow through on its signed commitment and ratify the compact will mean more jobs for the Nepali people, a reliable supply of electricity, and lower transportation costs," it reads."The United States’ relationship with Nepal is broader than one agreement and we will continue to support the country and its democratic values and long-term economic prosperity."

Shristi Karki

1250x600

MCC gets green light in Nepal

<figure><a href="https://www.flickr.com/photos/26344495@N05/50981261653/in/photostream/"></a></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/6372051f9c7e80680e0b289cjpeg.jpg" alt="" width="2048" height="1363"/><figcaption>Photo: IVAN RADIC/FLICKR</figcaption>Nepalis with battery-operated vehicles can now install a separate household meter to charge their vehicles as part of a drive by the state-owned utility to boost consumption of <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">surplus hydro-electricity</a> from the country’s new plants.Electric vehicle (EV) owners can also opt for a larger capacity meter if the approved load for domestic use is insufficient, and the regulator is also increasing the load limit for industries, and offering additional meters for tenants on multi-storey apartments.A Nepal Electricity Authority (NEA) board of directors meeting last week decided on a slew of measures to increase consumption of electricity. Nepal is now generating 500MW more than domestic demand, and this surplus is expected to grow during the monsoon.However, due to an <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">imbalance in distribution</a> the country has to import power from India for certain areas of the country, while it sells electricity to India from other parts.“We must increase the consumption of domestically produced electricity at home to reduce spillover and wastage. That is why we are taking steps to make sure Nepalis have better access to reliable and quality power,” says Nepal Electricity Authority (NEA) chief Kulman Ghising.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205229c7e80680e0b289djpeg.jpg" alt="" width="1500" height="1061"><figcaption></figcaption></figure>With the increase in popularity of <a href="https://www.nepalitimes.com/banner/fully-charged-and-ready-to-go/" target="_blank" rel="noopener noreferrer">electric vehicles</a> NEA is encouraging private companies to set up charging stations in parking lots and open spaces with the new electric meter offer. Local governments will work with the NEA to facilitate the necessary paperwork.Despite a pledge to be fully electric in its transportation sector by 2031, Nepal had yet to take a significant step or invest accordingly, even though last year it <a href="https://www.nepalitimes.com/latest/nepal-reduces-tax-on-electric-cars/" target="_blank" rel="noopener noreferrer">re-introduced a tax rebate</a> for battery-powered vehicles.After complaints that house-owners were overcharging tenants for power consumption, NEA has warned landlords that their mains will be cut if they do so. Further, it is now allowing tenants to set up their own electric meters. Those living in apartment blocks, multi-storey residential buildings and housing colonies will also be allowed to have their own meters.“Occupants of apartments can get electricity directly from the NEA with a separate meter, that way the tariff will be cheaper and the consumption will also increase,” explains Ghising, adding that factories within the same industrial complex will also be allowed separate meters.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205269c7e80680e0b289ejpeg.jpg" alt="" width="3242" height="1773"><figcaption></figcaption></figure>The new regulation has also streamlined the mechanism for consumers to settle their electricity bills. They can pay in installments, through mobile apps and even customers who have been blacklisted because of their dues can arrange to pay it back in up to 12 instalments.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/nepal-electricity-demand-soars/" target="_blank" rel="noopener noreferrer">The NEA</a> is also providing power feeds to refrigerated storage for dairy products, cooperatives-run cold storages and drinking water and irrigation projects operated by the government or communities.The new regulation has also increased the load limit for companies from 50kV to 100kV for which the NEA will supply power via its transformers. If the companies pass the mark, they need to buy the transformer themselves.

Nepal backs EVs to boost hydro-electricity uptake

<figure><img width="1198" height="1227" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13819c7e80680e0a9926jpeg.jpg" alt=""/><figcaption>Photo: BIKRAM RAI/ NEPALI TIMES ARCHIVES</figcaption></figure>Nepal could lose Rs142 billion a year in wasted surplus energy if the <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC)</a> project designed to upgrade the electricity grid and highways is not endorsed by Parliament.
Nepal is currently generating 2,000MW of <a href="https://www.nepalitimes.com/editorial/manpower-and-hydropower/" target="_blank" rel="noopener noreferrer">hydroelectricity</a> with an additional 2,500MW under construction. This figure will soar to 7,300MW by 2025 as per Nepal Electricity Authority (NEA) estimates.Presently, Nepal consumes 1,500MW of electricity during the peak season, which is increasing by 20% every year. At this rate, in the next four years, the peak demand will be at 2,600MW, which means there will be an excess of 4,700MW.  
Nepal can export this surplus power to India and there are already agreements in place to facilitate trade between the two countries, but the existing Dhalkebar-Muzaffarpur cross border <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">transmission line</a> can only handle 800MW each way. 
“If Nepal is unable to sell excess energy, we will be losing Rs142 billion every year. At a time when we are lagging in infrastructure, we shouldn’t stop the MCC from being approved,” says Dinesh Shrestha, chair of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce, Federation of Contractors’ Associations of Nepal, Independent Energy Producers’ Association and Nepal-US Chamber of Commerce and Industry have submitted a memorandum to Prime Minister Sher Bahadur Deuba urging the government to stop delaying <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">the five-year compact</a> and implement it soon. 
This is the private sector’s second memorandum to the government in a month. The group also states that some 7,000 Nepalis will be employed during the construction phase of the MCC, which also includes the upgrade of arterial highways to facilitate efficient transportation. The FNCCI memo comes just before the arrival in Kathmandu on Wednesday of US Assistant Secretary for South and Central Asian Affairs, Donald Lu during which he is expected to discuss the MCC ratification with Prime Minister Deuba and other party leaders.It is an indication of the importance the US attaches to the project that Deputy Assistant Secretary for South ans Central Asian Affairs Kelly Keiderling also arrives in Kathmandu on Thursday. Deuba met US President Joe Biden at the COP26 Glasgow summit two weeks ago, and revealed that he and Maoist leader Pushpa Kamal Dahal had written jointly to the US government saying the MCC would be ratified. But the project has become such a political hot potato in Nepal that Dahal quickly backtracked, clarifying that he had only said that it needed amendments before being passed. A large chunk of the US-aided $500 million grant project is set aside to build the Kathmandu-Hetauda-Butwal 400KVa transmission line which will distribute electricity from existing and new hydropower plants on the Budi Gandaki, Trisuli, Kali Gandaki, Marsyangdi, Kosi, and Tamakosi corridors, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.  
In fact, in anticipation of the MCC project being completed, the NEA <a href="https://www.nepalitimes.com/latest/india-nepal-sign-power-exchange-deal/" target="_blank" rel="noopener noreferrer">signed an agreement</a> with the state-run Power Grid Corporation of India (POWERGRID) for the Butwal-Gorakhpur cross border transmission line extension two months ago in September, ahead of MCC vice president <a href="https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/" target="_blank" rel="noopener noreferrer">Fatema Z Sumar's visit to Nepal</a>.
But the MCC, the biggest grant aid Nepal has ever received has become the victim of intense power struggle and political infighting within the country. It was first weaponised to unseat K P Oli and now <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatens to split the ruling coalition</a> led by Prime Minister Sher Bahadur Deuba. 
The project is seen by the critics as part of America’s Indo-Pacific Strategy to counter China’s Belt Road Initiative. The anti-MCC rhetoric has gained such momentum that the public is convinced it supersedes Nepal’s Constitution and is anti-national, forcing even the staunch supporters from speaking in its favour.
Adds FNCCI’s Dinesh Shrestha: “The MCC is crucial for Nepal’s energy sector and <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">is to our benefit</a>. Moreover, this is a grant, not a loan. Further delaying and cancelling the compact will <a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">tarnish Nepal’s image and credibility</a> in the world community.”
MCC or no MCC, one thing is for sure. Nepal must build transmission lines and upgrade its electricity grid one way or the other so as not to waste surplus energy it is set to generate in the near future. 
Alternatively, experts say, the government must work immediately to <a href="https://www.nepalitimes.com/editorial/good-cop-bad-cop/" target="_blank" rel="noopener noreferrer">electrify transport and cooking</a> for domestic consumption of surplus power and reduce its import bill on petroleum products and LPG.

The cost of no MCC

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141132/636cfdd29c7e80680e0a0c06jpeg.jpg" alt="" width="1198" height="1227"/><figcaption>Photo: BIKRAM RAI/ NEPALI TIMES ARCHIVES</figcaption></figure>The most tangible collateral damage of Nepal’s <a href="https://www.nepalitimes.com/editorial/they-fail-we-fall/" target="_blank" rel="noopener noreferrer">chronic political instability</a> is going to be the effort to streamline Nepal’s electricity grid. Politicians have weaponised the US-supported <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC) infrastructure grant</a>, and the much-needed project is stuck.An agreement for the $500 million project was signed by the Nepali Congress (NC) Finance Minister Gyanendra Bahadur Karki in Washington DC four years ago. But since then, it had become a <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">political football </a>in the great game between prime Minister K P Oli and his nemeses Pushpa Kamal Dahal and Madhav Kumar Nepal.The first hint that the MCC controversy was carrying over to the new government was that it was not included in the ‘common minimum program’ agreed to between the five coalition partners on 9 August.The Maoists and the Nepal faction have used the MCC so effectively to bludgeon Oli’s government that the rank-and-file are dead against the project. They are convinced it will allow the US military to build missile silos in Nepal aimed at China.<a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/">Putting the MCC in context</a>, Jeevan R Sharma and David SeddonThe MCC was launched by the US government in 2004 as an innovative way to end poverty in least developed countries. Nepal met the eligibility criteria and was selected as a partner, and planning for the MCC started during the government of Baburam Bhattarai in 2012. Bhattarai is now in the five-party alliance as a part of the JSP.Critics have used ultra-nationalism and populism to portray the MCC as a form of US neo-colonialism and imperialism. The Americans fuelled the fire themselves when a US undersecretary of state admitted in 2019 that the MCC was a part of the US Indo-Pacific Strategy aimed at encircling China.Washington back-pedalled, but the damage was done. There are many who do not need convincing that the MCC in Nepal is America’s geo-strategic response to<a href="https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/" target="_blank" rel="noopener noreferrer"> China’s Belt-Road Initiative</a>.But because of this political impasse, work on urgently needed electricity transmission lines and highway upgrading has not started. The cost of not having this infrastructure in place will be much more than the $500 million outlay of the project.<a href="https://www.nepalitimes.com/banner/own-goal/">Own Goal</a>, Kunda DixitThe main objective of the MCC is a 315km transmission line between Hetauda-Damauli-Butwal. This power line is critical for the east-west distribution of the 3,000MW of electricity that will be <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/">added to Nepal’s national grid</a> in the next three years, nearly double the current generation capacity. Another 2,500MW worth of projects are awaiting power purchase agreements with the NEA and will depend on the MCC transmission lines being in place.Nepal’s current power need is 1,500MW at peak hours, and despite suppressed demand due to shortage and cost, it is not expected to increase by much in the next three years. Which means Nepal will have a <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/" target="_blank" rel="noopener noreferrer">monsoon surplus</a> that can be exported to India, and for this, the cross-border 400KV transmission line from Butwal to Gorakhpur will be necessary.At present, Nepal imports electricity from India through the Dhalkebar-Muzzafarpur power corridor that has a capacity of handling only 800MW. The MCC line would increase this to 2,600MW, but if the Butwal-Gorakhpur transmission line is not built in the next few years, much of the surplus electricity generated in Nepal is in danger of being wasted, or 'spilled' in technical parlance.Even if the MCC is <a href="https://www.nepalitimes.com/latest/post-truth-politics-in-nepal/" target="_blank" rel="noopener noreferrer">never ratified by Parliament because of the political deadlock</a>, Nepal needs to immediately start building these transmission lines by itself. Private power producers in Nepal have signed agreements with NEA on the understanding that the transmission lines will be in place to evacuate the electricity they generate.Because of the nature of the monsoon and Nepal’s east-west territory, there will be surplus electricity in the east while there is a deficit in the west, so the transmission lines are even more critical to balance the national grid.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">This is too serious a subject</a> to be left to politicians, or to geopolitics. The NEA’s new head Kulman Ghising needs to sit down with the MCA’s Khadga Bahadur Bista and resolve this one way or another right away.In the 1960s, at the height of the Cold War and despite sensitivities after the India-China war, King Mahendra went ahead with the Kodari Highway linking Kathmandu to Lhasa. That is the kind of leadership we need now, one that will not be terrified about <a href="https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/" target="_blank" rel="noopener noreferrer">what one or the other neighbour will say</a>, but decide what is in the national interest and just do it.Ramesh KumarRead also:<a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/">A millennium challenge</a>, Editorial<a href="https://www.nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal/" target="_blank" rel="noopener noreferrer">Why there is no foreign investment in Nepal</a> , Nepali Times

Challenge of the millennium

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06359c7e80680e0a5f4ejpeg.jpg" alt="" width="1920" height="1080"/><figcaption>The Kosi Barrage on the Indian border where the river funnels out into the inland delta in Bihar.</figcaption></figure><ul><li>Three decades after it was first proposed, a 26.5km tunnel starts supplying water from Melamchi to Kathmandu.</li> <li>A <a href="https://www.nepalitimes.com/banner/drones-to-the-rescue-in-melamchi/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/drones-to-the-rescue-in-melamchi/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEISH8LehEm5nAihrdyEOSDxSXsUg">deadly flood</a> on the Melamchi-Indrawati in Sindhupalchok on 16 June kills at least 27 people, and destroys infrastructure.</li> <li>The much-delayed 465MW Upper Tama Kosi hydropower plant starts feeding electricity to the national grid.</li> <li>SJVN says it has completed half the work on the 900MW Arun III project and the Investment Board awarded it another contract to develop the 679MW Lower Arun as well.</li> <li>Work has begun on the Sunkosi-Marin Diversion, to channel water to the Bagmati Basin and irrigate much of Province 2.</li></ul>All five events have one thing in common: they are all on the trans-boundary Kosi Basin that drains 75,000 sq km of territory in China, Nepal and India.Last week, I was standing on the Pati Bhanjyang ridgeline at the northeastern rim of Kathmandu Valley. Pour a glass of water on one side, and it flows westwards into the Gandaki River Basin. On the other side the streams drain into the Melamchi, which meets the Indrawati, then the Bhote Kosi to become the Sun Kosi that flows 200km eastward until it merges with the Arun and Tamor to form the Sapta Kosi.At that point, the river makes a tight turn south to tumble into the Kosi megafan in the Tarai and Bihar to finally to join the Ganga at Kursela. The Kosi, in fact, is the largest tributary of the Ganges, bigger than the Gandaki, Karnali, Jamuna, and even bigger than the Ganga itself as it debouches into the plains at Haridwar.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06389c7e80680e0a5f4fjpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>The Kosi’s origin in Nepal is near Kathmandu. But it largest tributary, the Arun, originates in Tibet where it is called the Phung Chu, makes a mighty arc in Tibet and cuts through the Himalaya between Mt Makalu and Mt Kangchenjunga to meet its siblings Sun Kosi and Tamor at Tribeni.Geologists say rivers like the Arun that slice through the Himalaya are older than the mountains, and cut their way through as the terrain rose over millions of years with the collision of the India and Eurasian tectonic plates.The Kosi watershed therefore drains an enormous vertical landscape stretching from Mt Xixapangma which lies just 80km on the other side of the Himalaya in China, both sides of Mt Gauri Shankar (Chomo Tseringma), Mt Everest and Mt Makalu, as well as the western slopes of Kangchenjunga. Six of the world’s 13 peaks above 8,000m are therefore a part of the Kosi catchment.These mountains block the monsoons, and in eastern Nepal their southern slopes get more than 3,000mm of rain a year, weathering them down relentlessly, making the sedimentation load of the Kosi the heaviest for any river in the world.The topography of this mighty river has shaped Nepal’s history and culture, and can determine the country’s future prosperity as well. But only if we respect its geology, hydrology and the climate of its basin.Watershed expert Madhukar Upadhyay says, “We have not even begun to understand the hydrological and geological specificities of our mountains and rivers and yet are rushing headlong into ever-larger infrastructure development. Nepalis will still be here 500 years from now, what kind of country and landscape are we leaving behind for them?”Last month, landslides blocked the Melamchi-Indrawati, unleashing a deadly debris flow that destroyed infrastructure, homes and livelihoods. It imperilled <a href="https://www.nepalitimes.com/here-now/light-at-the-end-of-the-melamchi-tunnel/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/light-at-the-end-of-the-melamchi-tunnel/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEaXQ5HnjB92xgkbHBEnnbl5xiwow">the Melamchi project</a>, and its tunnel supplying water to Kathmandu was saved only because the gates were closed for maintenance just hours before the onrush.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d063c9c7e80680e0a5f50jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>This week, the Upper Tama Kosi project started generating electricity, that will provide one-third of Nepal’s total power demand. But there was a scare just days before the inauguration: China informed Nepal that a massive landslide had blocked the river upstream, threatening the Rs55 billion project. Fortunately, the river found its way around the blockage. The near escapes of the Melamchi and Upper Tama Kosi sites make us take Upadhyay’s warnings seriously.Other <a href="https://www.nepalitimes.com/latest/monsoon-hits-nepal-with-a-bang/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/monsoon-hits-nepal-with-a-bang/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNHkbbDluGypXbbgC1BQxVAVndFTvA">flash floods this year </a>in Manang, Kaski and Lamjung also showed that while our rivers hold great promise, we ignore the risk to settlements and major infrastructure along their banks. Our engineering methods have been inherited from the West, and do not account for cloudbursts and extreme Himalayan weather events. All these risks have been exacerbated by climate change.In Melamchi, the power of the flood last month is evident in the steel hulk of the Indrawati Bridge that lies crumpled in the muddy river 100m downstream amidst room-sized boulders. The new sand bank is 25m thick, indicating the flood’s maximum height.It is not clear what happened, for a bishyari or two (bursting of a landslide-damming of the river) would not be enough to generate such a massive debris flow. Some speculate there may have been centuries-old glacial deposits which suddenly got released through a combination of earthquake weakening and heavy rain.We also saw that <a href="https://www.nepalitimes.com/banner/after-the-deluge-in-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/after-the-deluge-in-nepal/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNFAaYeK5lUf9eY4-j8mOHnFIUOT5A">Melamchi Bazar </a>had expanded into the river’s flood plain, with buildings in place of rice paddies, which added to the loss of life and property. Less than a month after the disaster excavators and tipper trucks are already on the Indrawati river bed, scooping up sand and boulders to feed Kathmandu Valley’s voracious appetite for construction material.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06409c7e80680e0a5f51jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>It is the Kosi’s Melamchi tributary that augments Kathmandu’s water supply, while the sand and boulders from the Indrawati, Sun Kosi, Bhote Kosi and Rosi fulfil the Valley’s demand for sand and aggregates.While earthquakes, floods and landslides are seen as ‘natural disasters’, and indeed they are to some extent, they become ‘man-made’ calamities with unregulated sand-mining of rivers, quarrying on steep slopes, and haphazard road-building.The highway along the Indrawati is crowded with sand-laden tipper trucks bound for Kathmandu. Downstream towards the Kosi Barrage along the BP Highway, the road follows the river past the site where a part of the Sun Kosi is to be channeled through a 13km tunnel to irrigate farmlands in the Tarai of Province 2. A similar inter-basin diversion scheme on the Kali Gandaki is now pitting Gandaki vs Lumbini Province, and the central government.We finally get to the new bridge across the Sapta Kosi at Chhatara, connecting Udayapur and Sunsari districts. This is exactly the point where, after its epic journey from the Tibetan Plateau and between the highest mountains in the world, this great river fans out into the plains.https://youtu.be/34lmOgPv-zkNorth of the bridge is the site of the proposed mammoth <a href="http://archive.nepalitimes.com/news.php?id=2413#.YOQRoi8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D2413%23.YOQRoi8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNF86VG9E0i8u5OqfG5NvKJKILpBEA">Kosi High Dam</a>. The 300m high dam will create a reservoir submerging huge tracts of the Sun Kosi, Arun and Tamor Valleys in a kind of ‘trishul’. India needs the dam for flood control, and to facilitate inland navigation by storing monsoon water and discharging it in the dry season. But there are many questions regarding the proposed mega project.To begin with, the high silt load means that a future Kosi Reservoir would soon fill up with sediment. There are alternatives to dams: people in the Kosi plains have learnt to live with annual floods which deposit valuable soil nutrients, and diverting water through earlier river channels would ease flood impact.The village of Hanuman Nagar had to be relocated because of the barrage, and 60 years later some of its families and those further upstream have still not got compensated. The barrage also destroyed an important wetland, and <a href="https://www.nepalitimes.com/banner/the-great-trans-himalayan-bird-migration/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/the-great-trans-himalayan-bird-migration/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNFOCjdWAUhLv8LM1mLEnBNbFZeVHQ">migratory birds </a>now alight in <a href="http://archive.nepalitimes.com/news.php?id=15974#.YOQSqy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15974%23.YOQSqy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNH9ndET9JXr1SU0_SRmfnAXaLeZ5A">Kosi Tappu Wildlife Reserve</a> instead.Extending the reserve further north and south could increase the habitat of endangered arna, wild elephants and freshwater dolphins, encourage ecotourism, and provide income to villagers whose grandparents had to move.The 60-year-old embankments that jacket the Kosi upstream and downstream from the Barrage have created the potential for a massive future disaster, an inland tsunami. Because of the river’s heavy silt content, the Kosi now flows on a deck 3-4m above the surrounding land. <a href="http://archive.nepalitimes.com/news.php?id=15163#.YOQR6y8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15163%23.YOQR6y8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNELQRpfAALk_H4uMYlUohTJDiWrQg">In 2008, the Kosi breached the eastern embankment </a>at Kusaha, causing <a href="http://archive.nepalitimes.com/news.php?id=15193#.YOQTGy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15193%23.YOQTGy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNGQbFvez-8I6Bv7_rYVwfQpczaNAg">destruction </a>downstream in Sunsari and Bihar. And that was when the river was not even in spate.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06439c7e80680e0a5f52jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>With extreme weather caused by climate change, or a confluence of cloud-bursts in the mountain catchment, <a href="http://archive.nepalitimes.com/news.php?id=3526#.YOQSOy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D3526%23.YOQSOy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEvH8AZlBKUPb68a4OulBhpsm0Q2w">a record-breaking flood in future</a> could cause an engorged Kosi to bypass the barrage altogether and unleash a catastrophic flood downstream.The Kosi Barrage was meant to be a temporary solution, and the Kosi High Dam was always in the minds of the Indian authorities. There is a need for transparent and independent study by water experts, social scientists and technocrats to study the pros and cons of the Kosi High Dam.Siltation, seismicity, adaptation and mitigation, all need to be factored in with projected future climate impact. Meanwhile, across the world, ecologists are warning that the price to pay for large dams is too great because of the destruction of river ecosystems.A massive rockfill dam on a seismically active zone, the geopolitical implications as well as the social and environmental costs may outweigh the planned benefits. To make up for the mistake of the Kosi Barrage, we may be making an even greater blunder with the Kosi High Dam.

The Kosi’s sorrow, and scope

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3b99c7e80680e09666ejpeg.jpg" alt=""/><figcaption>Reservoir pond of the Pharping hydropower project 12 km south of Kathmandu Valley. Photo: ASMIT RAJBHANDARI</figcaption></figure>It was 6:30pm on 22 May 1911, and the sun had just set in Kathmandu when King Prithvi Bir Bikram Shah arrived at Tundikhel to turn on a switch to light Nepal’s first electric lamp.Nepal was the second country in Asia to install a hydroelectric power plant, commissioned by Prime Minister Chandra Shumsher Rana, who named the project after himself: Chandra Jyoti. Chandra Shumshere had visited England eight years previously, and this was part of his grand plan to modernise Nepal with technology.Besides electricity, he established Nepal’s first college, built metal suspension bridges all over the country, <a href="https://www.nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban/" target="_blank" rel="noopener noreferrer">commissioned a cargo ropeway from Kathmandu to the Tarai</a>. He sent architects to Europe, and engineers and horticulturists for training to Japan. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3bc9c7e80680e09666fjpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3bf9c7e80680e096670jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c39c7e80680e096671jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c69c7e80680e096672jpeg.jpg" alt=""><figcaption> </figcaption></figure>Construction of the 500kW plant in Pharping 12km south of Kathmandu began in 1907 with British engineers, and took four years to complete. All the turbines and penstock pipes were shipped to Calcutta, brought overland to Bhimphedi and then had to be carried on porter back over the mountains to the site.Built to light <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">the palaces of the Ranas</a>, homes of courtiers and some street lights, the power station stored water from two springs, in Satmule and Sesh Narayan, in a circular reservoir. The Ranas first tested the electricity in a house in Khokana before connecting the wires tot their palaces, to ensure it was safe.Under supervision of the prime minister’s clan, the power plant was built by Tilkikram and Bakhat Bahadur from the Nepal Army, the main engineer for the power house was Kishore Narsingh Rana. Two engineers from England, ‘Barnau Puwante’ and a certain ‘Mr Linzale’, were also involved in the construction. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3c99c7e80680e096673jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3cc9c7e80680e096674jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3cf9c7e80680e096675jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d29c7e80680e096676jpeg.jpg" alt=""><figcaption> </figcaption></figure>In 1911, it had been only three decades since the world’s first hydropower plant had been installed on the Fox River in Wisconsin in 1882, and a year after China built its first hydropower plant in 1912 in Yunnan province.Despite this early start, Nepal got around to setting up its second hydropower project only 28 years later, a 640kW plant in Sundarijal in 1939. For a country with such a vast potential for hydropower, it would take Nepal another half-century to produce just 1MW of electricity.Since 1911 when Pharping was built, Nepal has managed to produce only 1,400MW of power from its rivers, not even 2% of its total potential. Since most of the plants are of the run-of-the-river type, electricity production fluctuates with water level on rivers. This spring, due to a long winter drought, for instance, Nepal is importing nearly half its peak hour demand <a href="https://www.nepalitimes.com/from-the-nepali-press/more-than-half-of-nepals-electricity-imported-from-india/" target="_blank" rel="noopener noreferrer">from thermal power plants India</a>.Sadly, the history of Nepal’s oldest hydropower plant has now been almost forgotten. Although the government declared the power plant a ‘living heritage’ site in 1911, not much has been done to preserve the area. The power plant could be brought back into running condition, even as just a demonstration unit. <figure><img width="3000" height="2000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d59c7e80680e096677jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3d99c7e80680e096678jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce3dc9c7e80680e096679jpeg.jpg" alt=""><figcaption> </figcaption></figure>The power house, the royal guest house and other buildings here are part of Nepal’s heritage, but are crumbling. Two 250kw generators have great historical significance, but are not properly preserved, metal pipes more than 100 years old lie rusting near the <a href="https://archive.nepalitimes.com/regular-columns/Comment/storing-water-reservoir-Nepal,1042" target="_blank" rel="noopener noreferrer">reservoir</a>.For most of its functioning life, Pharping generated power for only three hours every night. Later, even when the reservoir started being used to supply drinking water to Lalitpur, it was generating electricity for one hour every evening.There is a masterplan to preserve Pharping as a Live Energy Museum with the old building renovated to house a centre for hydropower development, as well as research into <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener noreferrer">renewable energy sources like solar and wind</a>.None of that has taken off, but 22 May is still marked as National Energy Day to pay homage to Nepal’s hydropower potential.This story was first published on <a href="https://www.thethirdpole.net/en/" data-saferedirecturl="https://www.google.com/url?q=https://www.thethirdpole.net/en/&amp;source=gmail&amp;ust=1617686418226000&amp;usg=AFQjCNEYgYjTYeKkemPKVPByKGEFPQOeiQ">The Third Pole</a>.

Nepal’s 1st hydroelectric plant is a museum piece

<img width="640" height="350" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636bea2e9c7e80680e087903jpeg.jpg" alt=""/>A combination of low river flow, high winter power demand and old-fashioned mismanagement have meant that Nepalis are once more suffering from <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/" target="_blank" rel="noopener noreferrer">power cuts.</a> Forced to bring out the candles once more, Nepalis have taken to social media to pour their outrage at the government for <a href="https://www.nepalitimes.com/here-now/kulman-ghisings-tenure-at-nea-in-doubt/" target="_blank" rel="noopener noreferrer">not renewing the tenure of Kulman Ghising</a>, the head of the Nepal Electricity Authority (NEA) who was credited with ending ‘load shedding’ after he was appointed in 2016.The return to power cuts follows Ghising stepping down in September, and the current political crisis. Energy Minister Barsha Man Pun, who is a Pushpa Kamal Dahal loyalist, was among seven Cabinet ministers who resigned to protest Prime Minister K P Oli’s dissolution of the House on 20 December.Nepalis used to suffer up to 16 hours of power cuts a day during some of the worst periods between 2006-2016. An <a href="http://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408" target="_blank" rel="noopener noreferrer">investigation by this newspaper</a> had shown that it was largely because of NEA officials and the head of the load distribution centre being paid off by industries to provide them dedicated 24-hour electricity feed.  <figure><img width="1050" height="629" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636bea309c7e80680e087904jpeg.jpg" alt=""><figcaption>Kulman Ghising was credited with ending the loadshedding after being appionted NEA head in 2016.</figcaption></figure>As a result, electricity was rationed for households across the country and the remaining supply could not keep up with demand. Things got worse in winter when Nepal’s run-of-the-river schemes could not generate their optimum power. After Ghising took over the NEA, he <a href="http://archive.nepalitimes.com/article/editorial/Power-struggle-Kulman-Ghising,3399" target="_blank" rel="noopener noreferrer">cut off the dedicated feeds</a> and redistributed the saved power to the public. He also slapped a bill to the industries for a backlog of payments, and it is thought that these powerful individuals then pressured the Oli government not to renew Ghising for four more years.Ghising was also lucky because his tenure coincided with new private power producers generating hydroelectricity, and an import agreement with India. But he also launched an aggressive campaign to upgrade the grid, reduce system loss and pilferage from 26% to 15% during his tenure, and manage the grid more efficiently.   However, NEA spokesman Madan Timsina said electricity supply has been interrupted because of poorly maintained transmission lines. “This is not load shedding, yes generation capacity cannot keep up with peak demand in the mornings and evenings sometimes, but the situation has not got to a point where we have to ration power,” he told Nepali Times.  However, an official at the NEA load centre told us that on Monday, the demand for electricity reached 1,434MW which is about 500MW more than the dry season generation capacity. Usually, this deficit is being met by <a href="https://www.nepalitimes.com/from-the-nepali-press/more-than-half-of-nepals-electricity-imported-from-india/" target="_blank" rel="noopener noreferrer">imports of thermal power from India.</a>  Every evening this week, the load centre has been struggling to provide uninterrupted electricity supply but has not always succeeded. The NEA official said: “When there is just no other alternative, we cut off the supply for between 15-20 minutes in each locality just to manage the load. This is not a new thing.” This week, Kathmandu Valley’s peak demand hit 377MW, which is actually 50MW less than last year. The reason is the economic slowdown due to the pandemic. Yet, the NEA is finding it difficult to meet even that lessened demand.    “Our transmission lines, distribution network and transformers and are old and they cannot meet high demand, that is why there are sometimes problems on those lines and we have to cut power,” Timsina added. The peak hours in winter for power demand at between 6-7pm, when people are using electricity for cooking and heating, or plug in television and other appliances. It has not rained since September, and the rivers receded,  lowering the electricity available.  Since Nepal has only one reservoir-based power plant at Kulekhani, there is no backup when supply does not meet peak demand. Although private power producers in Nepal have an installed capacity of 725MW, these weeks they have not been able to generate even half of that. NEA’s own plants like Kulekhani, Kali Gandaki and others are producing 500MW. The NEA has been importing 600MW of electricity from India to meet the shortfall in the evenings this week. The utility expects the situation will to improve only in February after the winter rains arrive, and the snow starts melting with warmer weather.  The irony is that NEA and private hydropower plants can generate up to 1,400MW during the monsoon, which this year has exceeded demand reduced during the pandemic. In fact, this monsoon Nepal <a href="https://www.nepalitimes.com/latest/nepal-power-glut-with-covid-19-shutdown/" target="_blank" rel="noopener noreferrer">actually exported some power to India</a> in July-August, and lot of electricity was wasted as ‘spill’ during the night time. The NEA’s head of Customer Service said the reason for power cuts this week was because of a weak distribution system, and not undersupply. He said: “Sometimes there is an overload in some neighbourhoods, and sometimes in others, and the system cannot handle it, leading to breakdowns in supply.” The other reason is the delay in bringing a crucial 132kVA transmission line in the southern edge of the Valley from Thankot to Chapagaon and Bhaktapur because of local opposition. This means it is difficult to keep the system stable – especially through lines feeding parts of Patan and Baneswor.   This contradicts the statement to us by the official at the NEA’s own load centre who has blamed a shortfall in supply. Whatever the truth, the Nepali public seems to have made up its mind that the ‘power mafia’ working in cahoots with the government kicked out Kulman Ghising because he was becoming too popular. And without him the country has gone back to 'the dark ages'.

Power cuts are back in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bade89c7e80680e077fbdjpeg.jpg" alt="" width="1496" height="1146"/><figcaption>Min Bajracharya’s iconic photograph of Durga Thapa, 22, as she leapt up during a victory rally on 9 April 1990 to shout “Long live democracy!” All photos: MIN RATNA BAJRACHARYA</figcaption></figure>The <a href="https://www.nepalitimes.com/banner/one-moment-30-years-ago-today/" target="_blank" rel="noopener noreferrer">People’s Movement in 1990</a> erupted because for three decades of partylessness, Nepalis could not let off steam and socio-political pressure had been building up.We got a constitutional monarchy, the parties were unbanned, the mass media was unshackled. And soon enough, we started using our newfound freedoms to complain about the <a href="https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736" target="_blank" rel="noopener noreferrer">king and queen</a>. When the Maoists took the country to war, we complained about the violence.After the ceasefire of 2006, we were not happy about the restoration of peace – we started complaining about the political transition. Our constant moaning and groaning probably prolonged that transition.Then the <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/05/27/a-month-that-felt-like-a-year/" target="_blank" rel="noopener noreferrer">earthquake struck in 2015</a>, and even as the aftershocks rocked us, we whined about the relief being poorly distributed, and the slow pace of reconstruction. We then had the <a href="http://archive.nepalitimes.com/article/editorial/autopsy-of-a-blockade%20,2863" target="_blank" rel="noopener noreferrer">Indian blockade</a> to complain about. And as soon as the 2017 election was over, we started criticising the very leaders we had just elected to power.We were about to run out of things to complain about when there was the <a href="https://www.nepalitimes.com/editorial/nepals-new-normal/" target="_blank" rel="noopener noreferrer">COVID-19 pandemic</a>, and we could complain about <a href="https://www.nepalitimes.com/editorial/reduce-harm/" target="_blank" rel="noopener noreferrer">the lockdown</a> and the corruption in the procurement of medical supplies and the government’s general incompetence.It is human nature. Like most people around the world, Nepalis are never happy with the state of affairs. In fact, we do not score very high in the Happiness Index. That itself is a positive thing because it means we know there is plenty of room for improvement. Things can always be better. That is the whole idea behind the need to see the world as half full.Remember the days when there were 16 hour power cuts every day? <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/" target="_blank" rel="noopener noreferrer">Now that there is surplus power</a>, we are complaining that the electricity we generate is going waste. What to do with it? Where to sell it?There was a time in the 1980s when the proponents of the Himalayan Degradation Theory predicted that Nepal would be a desert by the turn of the century. Here we are four decades later, and <a href="https://www.nepalitimes.com/banner/tree-mendous/" target="_blank" rel="noopener noreferrer">Nepal has doubled forest cover</a>. We have almost a quarter of our area designated as national parks, and 15% of Nepal is covered in <a href="https://www.nepalitimes.com/banner/who-now-owns-nepals-forests/" target="_blank" rel="noopener noreferrer">community-managed forests</a>.Enrollment in school is nearly 100%, infant and <a href="https://www.nepalitimes.com/here-now/who-will-save-nepals-poor-new-mothers/" target="_blank" rel="noopener noreferrer">maternal mortality</a> have seen dramatic reductions. Absolute poverty has been halved in 25 years. The education we got and the remittance economy has exposed many Nepalis to jobs all around the world, and the quality of life for many have improved with the money sent home.Yet we complain that our youth are away. But that is also good because the end goal should be to create jobs for them at home.There are many products in the market that require energy to produce. If Nepal is to select a few of these and manufacture them near our many <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">hydropower</a> plants, we could become productive and competitive.In Birganj, for example, there are truck loads of metal sheets coming in from India. They are rolled into pipes and poles, and sent back out. This is the value added for Nepal’s abundant, clean, reliable energy.Entrepreneurs will begin to look for energy production sites where goods can also be produced. We will then see how education will be valued in these areas because it means jobs at the local level. We will no longer have the debate about exporting energy, and sending Nepali youth abroad to prop up the <a href="https://www.nepalitimes.com/editorial/remit-for-remittances/" target="_blank" rel="noopener noreferrer">remittance based economy</a>. Local agriculture will have a local market. Nepalis will also understand the true meaning of Value Added Tax.We can use spilled hydropower at night to pump water for to irrigate farms and boost food production, and during the day use the water to generate power. This is the chance for an entrepreneur to set up a factory to manufacture rice cookers and electric kettles so we <a href="https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/" target="_blank" rel="noopener noreferrer">reduce our reliance on imported LPG</a>.Nepal’s poverty related problems can be solved with political will. Nepal’s problems are simple and so are their solutions. Unfortunately, we like to complicate things so we can seek complicated solutions. It is almost as if we want to remain poor so we keep getting grants for poverty alleviation, so our experts and consultants have jobs. It is precisely because we have only complained and not implemented solutions over the past seven decades that we would rather export manpower than value-added good and services.Historically we have always described Nepal with what we do not have. For example, we do not have access to the sea. Or the terrain is not easy. These were always top reasons given for why we remain poor, rather than look at poor governance and mediocre leadership.More and more Nepalis now live in comfortable homes, drive fancy cars, send their children to the best schools. And yet we complain. Human progress is about not being content and wanting things to improve. There is so much to do as we move ahead whether you see the glass half empty, or half full. It is time to take the lead and move ahead.Anil Chitrakar is President of Siddharthinc. This is his last written column, he will now be hosting a fortnightly Anil’s Walkabout video program on the Nepali Times YouTube channel.

hydroelectricity