Obstacles for the Implementation of Identified Storage Type Hydropower Projects in Nepal
Student: Sabin Dulal
Supervisor: Er. Gyanendra Prasad Kayastha
Submitted Date:
October, 2023
Abstract
This research examines the obstacles and consequences associated with the implementation of
storage type hydropower projects in Nepal. The objectives of the study included identifying
the obstacles hindering these projects, assessing the consequences of not developing them and
proposing strategies to overcome these obstacles.
To achieve these objectives, a structured questionnaire survey was conducted among experts
and professionals working in the field. The obstacles identified were systematically categorized
into seven factors: land acquisition and administrative barriers, technical design barriers,
electricity market and energy prices, management barriers and bureaucracy, political and
policy-related obstacles, limited technological and institutional capacities and lack of
international cooperation.
Using principal component analysis (PCA), the research identified seven key components, each
of which sheds light on distinct facets of these barriers. In particular, “land acquisition and
administrative barriers” emerged as the most important factor, highlighting its profound impact
on project implementation.
The analysis also ranked the identified consequences according to their RII (Relative
Importance Index) values. Peak demand management challenges were identified as the most
critical issue, highlighting the urgent need for a stable and reliable power supply. Furthermore,
the study highlighted the significant revenue potential of hydropower projects and the negative
impact of reliance on imported electricity on energy security and the trade balance.
This research, conducted through a structured questionnaire survey, provides valuable insight
into the multiple challenges and consequences associated with storage type hydropower
projects in Nepal. The findings not only provide guidance for policymakers and stakeholders
in the hydropower sector, but also provide an adaptable framework for addressing challenges
in several large infrastructure projects.
This study has recommended a holistic approach for the effective implementation of storage
type hydropower projects in Nepal. Policy reforms are suggested to simplify administrative
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processes and encourage private sector involvement, with an emphasis on collaborating with
neighboring countries to enhance energy security, trade balance, and technology transfer. The
government should prioritize storage projects in its budget and policy and create rules and
regulations tailored to their specific needs. The research underscores the importance of
accelerating the development of domestic renewable energy sources to reduce dependency on
costly imports and fossil fuels. Additionally, capacity building for effective project
management and implementation is highlighted as a key strategy for Nepal's hydropower
sector.
Keywords
Hydropower Projects, Implementation, Obstacles, Consequences, Energy
Security, Principal Component Analysis (PCA)