Contribution of Hydro Electricity to the Economic Development of Nepal

Abstract

Hydroelectricity is white-Gold of Nepal to sustain its economy. Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects. It has been estimated potentiality of 83 000 MW of which 42000 MW is economically Feasible. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge assets. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. The research method is descriptive depending on collected and informative data from secondary source. The analysis and presented data allocation evokes the motto of this research on the Topic of “Contribution of Hydro-Electricity to the Economic Development of Nepal” The main objective of this study is to analyze the Contribution of Hydropower to the Economic Development of Nepal and how it contributes in Nepal’s economy. Specifically current generation, transmission distribution and usage of electricity in Nepal have been taken on account. Requirement of energy in India also has been checked out. On another aspect the contribution of electricity on national economy of Nepal also has been analyzed. Analytical and descriptive approach has been adopted for the purpose of this research. Analytical approach has been utilized to analyze the relationship between energy availability and gross domestic product. Descriptive approach has been used mainly for conceptualization of the research objectives and research problem of the study. The collected data have been edited, classified and tabulated in appropriate form. Processing of data has been done by the programme like Microsoft excel. Co-relation analysis between variables has been carried out to analyze the data and as statistical tool F-test has been carried out to test significance of relationship. The domestic use of hydroelectricity is more beneficial as it ultimately assists to increase GDP. As it is concern to export is not suggestible until cheaper electricity generation technology comes to practice. On the another hand the study shows as much as 5% of total Indian energy demand may be fulfilled even if Nepal produced all her economically feasible generation capacity. And, Nepal is currently using almost all imported technology to generate electricity. In this case the study shows the necessity of monetary benefit than economic one. From the study, it is found that infrastructural and institute barriers for power trade between India and Nepal are gradually clearing out. A significant progress has been attained since it has been initiated in the history. On the same provision some Indian organizations and other agencies either domestic or international are constructing hydropower plants in Nepal, in the context of private public partnership. Ii is concluded that primarily domestic use of energy is beneficial for Nepal to increase her GDP rate which is more crucial points to develop to the country. Nepal can export very little units of energy in compare to Indian demand. There is almost no legal barrier to export energy compare with Indian Demand. However, some technological barrier such as capacity of transmission lines exists.