Contribution of Hydro Electricity to the Economic Development of Nepal
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Department of Economics
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.