Living in the Dark in Nepal

Abstract

“Living in the Dark in Nepal” investigates whether a larger degree and share of private sector participation (PSP) in Nepal’s energy sector can be a reliable and efficient solution towards controlling the country’s frequent electricity shortages. The paper mainly draws upon primary sources, including journal articles, Nepal’s energy-related authorities’ reports, working papers, and published books. Domestic as well as foreign studies hint PSP to be a convincing solution to improve Nepal’s electricity situation. The trend of seasonal power shortages in Nepal requires PSPs to be geared more towards hydropower plants that are storage type compared to run-of-the-river. Research results also recommend an extension of PSP towards electricity distribution sector rather than its limitation to generation. The price escalations which may occur under such extended PSP can be regulated through government supervision. Additionally, financial and technical support from multilateral agencies along with domestic and foreign government is essential to sustaining PSPs.