An Investigation into Hydro-power Potential in Nepal and Challenges

This report investigates the hydro-power potential in Nepal, highlighting its importance given the country's abundant water resources and steep Himalayan slopes. The research explores the current energy crisis, where only a fraction of the population has access to electricity, despite significant hydro-power capacity. The study aims to analyze the potent measures of hydro-power in Nepal, ascertain associated challenges (including financial constraints, outdated policies, political instability, and technological limitations), and recommend effective solutions. The literature review covers various aspects, including the benefits of hydro-power as a clean and renewable energy source, and the impact of irrigation. Challenges such as lack of investment, policy inadequacies, political instability, and technological obstacles are also discussed. The methodology section outlines the use of a descriptive research design to analyze the topic comprehensively. The report provides a detailed overview of the current situation, challenges, and potential solutions related to hydro-power development in Nepal.

BUSINESS
RESEARCH
METHODS

TABLE OF CONTENTS
TITLE: An investigation into hydro-power potential in Nepal and its challenges..........................3
1.0 INTRODUCTION ...................................................................................................................3
1.1 Purpose of the research.........................................................................................................3
1.2 Academic topic area and general context of problem...........................................................3
1.3 Specific context of problem..................................................................................................3
2.0 RESEARCH QUESTIONS ......................................................................................................4
3.0 LITERATURE REVIEW..........................................................................................................4
4.0 METHODOLOGY ...................................................................................................................7
4.1 Research design.....................................................................................................................7
5.0 REFERENCES..........................................................................................................................8

TITLE: An investigation into hydro-power potential in Nepal and its challenges
1.0 INTRODUCTION
1.1 Purpose of the research
Significance of topic area- Nepal has a huge potential in hydro-power due to its everlasting
rivers and its sheer slope. These topographical conditions are idealistic for development of some
of the world's biggest hydro-power projects in the country. However, the bitter truth is that only
about forty percent of population is having access to electricity. Mostly, the power plants are
run-of-river type which are having excessive energy that makes the demand more in monsoon
season and insufficient in the summer season. Mainly, the electricity is generated through hydro-
power (Pierre, 2012).
Context where the problem resides- Even though the country is having very large capacity for
electricity, the truth is that it is incapable to meet current energy demands of its own population.
Aim of research project- Purpose of the research project is “To investigate hydro-power
potential in Nepal and its related challenges”.
1.2 Academic topic area and general context of problem
Possessing 6,000 rivers and steep Himalayan slopes, this is not surprising that the country
relates its future with development in the hydro-power. From the 1960s, private developers and
INGOs have developed the nation expecting for better sites for hydro-power projects. Huge
investments have been done in planning hydro-power in the last two decades only.
In general context, the country is facing the energy crises. Currently, it is suffering from
huge energy crisis even possessing immense potential for energy. Nepal is not able to explore or
use its resources to the fullest. Till 2012, the total electricity production was 650 MW out of
which 580 MW was contributed through hydro-power. The total need for energy in present
context is 1027 MW out of which 375 MW is expected to be shed (Bryman and Bell, 2015).
1.3 Specific context of problem
When going specifically there are lots of problems due to which the country is witnessing
the above stated energy crisis. As Nepal is an underdeveloped nation with a GDP of 18.8 billion.
The expenditure on hydro-power sector is less than 2 percent. For generating energy through
hydro-power resources, there is requirement for heavy investments. Also the policies regarding

hydro-power development has not been revised by the country. In 1992, it was formulated for the
first time. In 2001, it was revised. After that, there were several changes which were being
observed such as political, economical and environmental changes. Apart from these, the
unstable environment for investors is also one of the most crucial factors which are contributing
in the energy crisis (Kratochwill, 2013).
2.0 RESEARCH QUESTIONS
Research questions: These questions are based on the aim of t research study. They will provide
the base to attain objectives of the research project.
What are the potent measures of hydro-power in Nepal?
What are the various challenges associated with hydro-power potential in Nepal?
Research aim: The aim of the research project is “To investigate hydro-power potential in
Nepal and its related challenges”.
The aim of this research project will further help to frame some effectual
recommendations for researcher to gain relevant knowledge about certain impelling ways of
overcoming current energy crisis in Nepal.
Objectives: These objectives are founded upon the above framed questions and intended goal of
the survey.
 To analyse the potent measures of hydro-power in Nepal
 To ascertain various challenges associated with hydro-power potential in Nepal
 To recommend some effective ways in which identified challenges can be minimised
3.0 LITERATURE REVIEW
Literature review is necessary component of research project in which views of different
authors and professionals are taken into account to conduct the research in an appropriate
manner. This part provides ground for the entire study in which adequate amount of data is
discovered from which research can be conducted in an efficient manner. This section will throw
light on essential part of the data which is gained for achieving research. The present research is
prepared on the hydro-power potential in Nepal and its challenges.
Water is a crucial natural resource of Nepal. It is available in immense quality and has the
potential of reaping hydro-power based energy which provides opportunities for overcoming the
hurdles coming in its economical development. The electricity generation is dominated through

hydro-power in Nepal. In accordance with the views of Sharma and Awal, (2013) in the whole
scenario of energy consumption of the country, the electricity is a little fraction, just 1 percent
need for energy is met through electricity. The large part is dominated from fuel wood,
agricultural wastage, animal dung and imported fossil fuel. Another fact is that just 40 percent of
the population is having access to the electricity. Due to this situation, it is necessary for Nepal to
grow the energy dependence on electricity through hydro-power development. This is due to
deforestation, diminution, growing flooding downstream in Ganges plain and soil erosion.
Inadequate wood has also forced farmers to burn the animal dung. Zarfl and et. al., (2015) stated
that development of hydro-power sector will be helpful in attaining millennium development
objectives along with preventing natural resource which is very urgent. It is the only way which
can reap numerous advantages for the country and even become an aid in alleviating poverty in
Nepal. It is a source of renewable and clean energy for stabilising the electricity supply. It is also
helpful in providing year round irrigation leading to growth in cropping intensity and changing
pattern of cropping. This in turn reduces deforestation and emission greenhouse gas as well.
Nepal,(2012 asserted that Nepal has adopted policy of Integrated Water Resource
Management(IWRM) from which projects in hydro-power sector are developed aligned with
irrigation, control on floods, supply of water and navigation elements whenever executable. As
Nepal is dependent on the agricultural sector, it has to maximise the advantages of irrigation
through giving year round irrigation from storage projects formed for high energy generation. As
per the view points of Gurung Ghimeray and Hassan, ( 2012) Nepal has several benefits of
hydro-power such as the energy which is generated is non-polluting, clean and nature friendly.
The cost associated with this sector is low and also it is cost-effective to maintain and operate it.
It has the capability to begin and stop very speedily. The direct load acceptation or rejection
makes this sector appropriate to fulfil the demands when in peak and to improve reliability and
stability of the system. Yadoo and Cruickshank, (2012 ) contented that these hydro-power
projects have very long life. Also the cost of generating is free from the effects of inflation after
it is installed at initial stages. The per unit cost is very low as compared to other forms of energy.
Also this is the most feasible type of energy for carbon credits. It is the more suitable as
compared to other alternatives as they put minimum stress on resources. Shrestha and Shakya,
(2012) asserted that Also Nepal is very lucky as it has plentiful of water which minimises it
reliance on foreign nations. This sector can serve as a support for the entire economic

development of Nepal. The hydro-power plants have the potential to export and therefore have
large opportunities for balancing the current trade imbalances. Shakya Kumar and Shrestha,
(2012) argued that though possessing immense potential for energy, Nepal is impotent in
utilising the natural resources which are available. The key problems or obstacles faced by Nepal
which leads to energy crisis are lack of investment in the sector. As it is an underdeveloped
nation situated between China and India. Its GDP is 18.8 billion from which only 2 percent is
spent on hydro-power sector. As per views of Gurung and Oh, (2013) To generate energy from
hydro-power resources there is a need of large investments and Nepal is not having enough
financial funds for making investments in hydro-power sector. Major part of the budget made by
Nepal government is spend on meeting the basic requirements of Nepalese citizens such as
education, agriculture, health, infrastructure etc. Biggs and et. al.,(2013) asserted that also
deficiency of suitable hydro-power development policy has lead to energy crisis in Nepal.
However it has developed very much in the development policy of hydro-power, it is still lacking
in numerous issues. It formulated its first hydro-power development policy in 1992. The current
revision of that policy was being done in 2001. since then there were lot of changes which took
place in Nepal. At present Nepal is a federal nation and has faced several changes in its political
and economic environment. Then also the hydro-power development policy has not been
reviewed according to the changes which happened. According to the view of Hydropower
Development in Nepal: Opportunities and obstacles,(2011) the unstable environment for the
purpose of making investments has lead to energy crisis in Nepal. The defining aspect of Nepal
is its political instability from the past two decades. It became a federal nation in 2007 and
currently is in transformation stage of making constitution. The lengthy conflict between
political parties of Nepal has made tough for getting complete and stable constitution which is
resulting in unsuitable political environment. Gautam Li and Ru, (2015) stated that inadequate
good governance, lack of effective investment policies and rules, poor bureaucratic system are
some variables which discourage investors to make huge investments in Nepal. They have
certain complaints regarding the present procedure of getting clearances for every phase of
construction across several ministries. They have a view that the numerous regulatory barriers
and slow and steady bureaucratic approvals cut their resources very deeply. As per the views of
Shrestha and et. al.,(2014) this also discourages the foreign investors also. There are also some
technological obstacles associated with the development of hydro-power in Nepal. Currently is

not having adequate number of technically trained and skilled human resources if large sized
hydro-power development projects are considered. Huber and Joshi, (2015) argued that most of
the local contractors are labour contractors who are not having sufficient equipments and staff
for the big job positions. If they prefer to hire foreign contractors, it increases their cost up to 50
percent and their money goes out of their country. It is imperative to develop their own human
resources if the water resources are to be developed. Neopane and Sujakhu,(2013) asserted that
legal obstacles are also one of the most essential challenge which should be addressed. The
finance act invalidated the facilities provided by the Hydro-power Development Policy for
attracting the private sector. The one window policy aiming at facilitating hydro-power
development is not functioning properly. The decision-making procedures are very much slow
and sluggish in the electricity sector of Nepal. Gurung and et. al., (2013) said that it is leading to
increase in cost of the projects and is becoming a hurdle in the entry of additional entrepreneurs.
Apart from these obstacles social and environmental issues are also significant in contributing to
energy crisis in Nepal. The projects which are multi-purpose and large scale submerge big lands
which displaces the people residing in that region.
4.0 METHODOLOGY
4.1 Research design
Research design is a blueprint of the whole research which is highlighting the nature of study for
addressing the questions framed for research. There are various types of designs for research like
explanatory, descriptive and exploratory. The characteristic of each kind of research design is
different from each other. The explanatory research design only gives explanation of the research
title and does not conduct any deep analysis (Creswell, 2013). Descriptive research design
provides description of the topic chosen while exploratory design helps in exploration of new
ideas and ways. For the present research, descriptive research design is being adopted for
conducting in-depth study on the topic. The other two research designs are not preferred because
they are not supporting this specific study. Further, it is crucial to identify if the research is
qualitative or quantitative. Quantitative research is conducted if the data and information is
present in numeric form. On the other hand, qualitative study is undertaken when the data is not
present in numerical form. For the present research qualitative research study is being taken as
the data is present in non-numerical form (John Kuada, 2012).

5.0 REFERENCES
Books and Journals
Biggs, E.M., Duncan, J.M., Atkinson, P.M. and Dash, J., 2013. Plenty of water, not enough
strategy: how inadequate accessibility, poor governance and a volatile government can
tip the balance against ensuring water security: the case of Nepal. Environmental
science & policy, 33, pp.388-394.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Creswell, J.W., 2013. Research design: Qualitative, quantitative, and mixed methods
approaches. Sage publications.
Gautam, B.R., Li, F. and Ru, G., 2015. Assessment of urban roof top solar photovoltaic
potential to solve power shortage problem in Nepal. Energy and Buildings, 86, pp.735-
744.
Gurung, A. and Oh, S.E., 2013. Conversion of traditional biomass into modern bioenergy
systems: A review in context to improve the energy situation in Nepal. Renewable
Energy, 50, pp.206-213.
Gurung, A., Ghimeray, A.K. and Hassan, S.H., 2012. The prospects of renewable energy
technologies for rural electrification: A review from Nepal. Energy Policy, 40, pp.374-
380.
Gurung, A., Karki, R., Cho, J.S., Park, K.W. and Oh, S.E., 2013. Roles of renewable energy
technologies in improving the rural energy situation in Nepal: Gaps and opportunities.
Energy policy, 62, pp.1104-1109.
Huber, A. and Joshi, D., 2015. Hydropower, anti-politics, and the opening of new political
spaces in the eastern Himalayas. World Development, 76, pp.13-25.
John Kuada, 2012. Research methodology: A project guide for university students.
Samfundslitteratur.
Kratochwill, T.R. ed., 2013. Single subject research: Strategies for evaluating change.
Academic Press.
Neopane, H.P. and Sujakhu, S., 2013. Particle size distribution and mineral analysis of
Sediments in Nepalese hydropower plant: A case study of Jhimruk hydropower plant.
Kathmandu University Journal of Science, Engineering and Technology, 9(1), pp.29-36.

Nepal, R., 2012. Roles and potentials of renewable energy in less-developed economies: the
case of Nepal. Renewable and Sustainable Energy Reviews, 16(4), pp.2200-2206.
Pierre, E.A.S., 2012. Post qualitative research. Collecting and interpreting qualitative
materials, p.447.
Shakya, S.R., Kumar, S. and Shrestha, R.M., 2012. Co-benefits of a carbon tax in Nepal.
Mitigation and Adaptation Strategies for Global Change, 17(1), pp.77-101.
Sharma, R.H. and Awal, R., 2013. Hydropower development in Nepal. Renewable and
Sustainable Energy Reviews, 21, pp.684-693.
Shrestha, R.M. and Shakya, S.R., 2012. Benefits of low carbon development in a developing
country: Case of Nepal. Energy Economics, 34, pp.S503-S512.
Shrestha, S., Khatiwada, M., Babel, M.S. and Parajuli, K., 2014. Impact of climate change on
river flow and hydropower production in Kulekhani hydropower project of Nepal.
Environmental Processes, 1(3), pp.231-250.
Yadoo, A. and Cruickshank, H., 2012. The role for low carbon electrification technologies in
poverty reduction and climate change strategies: A focus on renewable energy mini-
grids with case studies in Nepal, Peru and Kenya. Energy Policy, 42, pp.591-602.
Zarfl, C., Lumsdon, A.E., Berlekamp, J., Tydecks, L. and Tockner, K., 2015. A global boom in
hydropower dam construction. Aquatic Sciences, 77(1), pp.161-170.
Online
Hydropower Development in Nepal: Opportunities and obstacles, 2011 [online.] Available
through:<http://bisistakoirala.blogspot.in/2011/08/hydropower-development-in-
nepal.html>. [accessed on 6 March 2017]