Electricity Demand Creation in Industrial Sector of Nepal
Date
2023-08
Authors
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Publisher
IOE Pulchowk Campus
Abstract
Nepal is also transforming into renewable form of energy in form of electricity as source
of energy consumption. Nepal accounts only 8.87% of electricity consumption in of
energy sector which is very less in comparison to developed nations. Sustainable
Development Goal (SDG) targeted that the industrial sector has to increase the share of
energy consumption up to 25% and uplift the nation from least developed country to
middle by 2030. The electricity demand is projected from base year 2021 to 2050 using
the LEAP energy model tool. Here, Business-as-usual and Policy scenarios with low
growth rate, medium growth rate, and high growth rate are taken into account to
electricity demand projection with 2021 as base year.
For industrial sector overall electricity demand increase from 2,800.70 GWh in the base
year to 57,172.17 GWh, 43,047.05 GWh and 32,408.31 GWh for high (6.52 %),
medium (5.46%) and low (4.41%) growth rate respectively at Business-as-Usual
Scenario by 2050. For policy scenario, overall demand increases from 2,800.70 GWh
in the base year to 1,01,080.91 GWh, 76,107.57 GWh and 57,298.19 GWh for high,
medium and low growth rate by 2050. Overall, in industrial sector is observed that the
increment in electricity demand in policy scenario compared to BAU scenario for high,
medium and low growth are 43,908.74 GWh, 33,060.52 GWh and 24,889.88 GWh in
2050 respectively. In Food, beverage & tobacco manufacturing it is observed that there
is more electricity demand and less demand in electrical & electronic products
manufacturing industry.
In policy scenario with high growth, medium growth, and low growth the electricity
consumption values in 2022 are 3,722.72 GWh, 3,685.49 GWh, and 3,648.61 GWh
respectively. In Business-as-usual scenario, with high growth, medium growth, and low
growth rates, the electricity consumption values in 2022 are 3,231.57 GWh, 3,199.26
GWh, and 3,167.24 GWh respectively. The actual electricity consumption for the
industrial sector in 2022, as reported by the Nepal Electricity Authority (NEA), is
3,448.00 GWh. It is noted that the Business-as-Usual scenario with a high growth rate
and the Policy Scenario with a low growth rate are quite close to the actual electricity
consumption by the industrial sector in 2022. This suggests that these particular
scenarios are more accurate or representative of the real-world consumption patterns in
the industrial sector of Nepal.
Description
Industrial development is very essential backbone for the economic development of a
nation. The major economic development in the country is largely dependent on the
industries operating within the country. With the active number of various industries
running in the country, helps the country to achieve independence in economic status,
decreasing imports and increasing exports
Keywords
Industrial development