Hurdles to power import from Nepal

September 21, 2010

Mr Chiran S Thapa
Naxal, Kathmandu

Dear Chiranjee

Too bad you were unable to download the online version of my article. This is the hazard of having to deal with ICT. I am glad that you were able to read it in the print edition.
I fully agree with you that the "focus on tradable commodities and services has to be on getting the best bargain in a given situation and within a specified period of time." What we in Nepal should be aware of is that the other side too has and will have focus on the same things. Therefore, we should learn to make best out of our resources.

I also agree with you that "When we can't export what we could produce theoretically, then, as we have a domestic market, we should produce for our own needs" with one change. I would paraphrase it as follows: We should aim to maximize electricity consumption in Nepal by setting up energy intensive industries, electrifying transportation sector and also "electrifying" agriculture sector. But we should not be averse to exporting electricity. We should export energy rather than power (instead of implementing power projects dedicated for export, we should aim to export energy that we couldn't use here; in order to reduce spill energy whose marginal cost of generation will be close to zero). This approach benefits from the complimentarity of electricity market in India where more energy is consumed in "our" wet season during which time spill will be relatively high in Nepal.

Most importantly, I agree with you that we should be on the look out to benefit from multidimensional uses of our water resources (inter alia like water based transportation which is least talked about) instead of spatial thinking on the lines that the water flowing down the river is waste of precious resources and, therefore,we should develop hydropower projects "mindlessly."
With best regards,
Sincerely,

Ratna Sansar Shrestha, FCA
Senior Water Resource Analyst
http:www.RatnaSansar.com/
-----Original Message-----

From: C.S. Thapa [mailto:cst21@hermes.cam.ac.uk] On Behalf Of C.S. Thapa

Sent: Tuesday, September 21, 2010 9:36

To: Ratna Sansar Shrestha

Subject: Re: FW: http://timesofindia.indiatimes.com/business/india-business/Hurdles-to-power-import-from-Nepal/articleshow/6543737.cms

Dear Ratna Sansarji,

I read your article in the print edition of Gorkhapatra as I couldn't download your online version.
My view has always been that the focus on tradable commodities and services has to be on getting the best bargain in a given situation and within a specified period of time. When we can't export what we could produce theoretically, then, as we have a domestic market, we should produce for our own needs. Your argument on this point and the follow-up is clear. The tax on import of electricity, unpleasant as the pricing consequences may be, to develop multiple use of our water resources is one of few options given your basic argument.

Thank you for your instructive mail.

Best,

Chiran

On Sep 20 2010, Ratna Sansar Shrestha wrote:
>Dear Colleague

>Following news was published in ToI of 13th September under the title:

>"Hurdles to power import from Nepal"