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Reforming small electricity systems under political instability: The case of Nepal

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  • Nepal, Rabindra
  • Jamasb, Tooraj

Abstract

This paper assesses the issues and options in reforming small electricity sector systems in general while citing Nepal as a specific case. Political instability and increasing electricity demand are two major complicating factors in power sector reform of small systems such as that of Nepal. Lessons from international experience suggest that measures such as cost-reflecting pricing, restructuring and independent regulation are important for the success of reforms. In small systems, the creation of an independent regulatory authority is more important than unbundling of the sector. In the present context of Nepal accounting separation of the main activities may be a pragmatic restructuring approach given the present political and market condition. As the systems gradually grow larger, vertical separation of the system and horizontal splitting of the generation segment and competition in organised wholesale market followed by privatisation remains an option in the long run.

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  • Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming small electricity systems under political instability: The case of Nepal," Energy Policy, Elsevier, vol. 40(C), pages 242-251.
  • Handle: RePEc:eee:enepol:v:40:y:2012:i:c:p:242-251
    DOI: 10.1016/j.enpol.2011.09.062
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    Cited by:

    1. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    2. Gaffney, F. & Deane, J.P. & Gallachóir, B.P.Ó, 2017. "A 100 year review of electricity policy in Ireland (1916–2015)," Energy Policy, Elsevier, vol. 105(C), pages 67-79.
    3. Rabindra Nepal & Tooraj Jamasb & Clement Allan Tisdell, 2014. "Market-related reforms and increased energy efficiency in transition countries: empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 46(33), pages 4125-4136, November.
    4. repec:bla:econpa:v:36:y:2017:i:3:p:300-316 is not listed on IDEAS
    5. Rohan Best & Paul J. Burke, 2017. "The Importance of Government Effectiveness for Transitions toward Greater Electrification in Developing Countries," Energies, MDPI, Open Access Journal, vol. 10(9), pages 1-17, August.
    6. Nepal, Rabindra & Jamasb, Tooraj, 2015. "Caught between theory and practice: Government, market, and regulatory failure in electricity sector reforms," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 16-24.
    7. Anupama Sen & Rabindra Nepal & Tooraj Jamasb, 2016. "Rethinking electricity sector reform in developing Asia: Balancing economic and environmental objectives," ASARC Working Papers 2016-06, The Australian National University, Australia South Asia Research Centre.
    8. Rabindra, Nepal & Tooraj, Jamasb, 2013. "Caught Between Theory and Practice: Government, Market, and Regulatory Failure in Electricity Sector Reforms," SIRE Discussion Papers 2013-22, Scottish Institute for Research in Economics (SIRE).
    9. Nepal, R. & Jamasb, T. & Sen, A. & Cram, L., 2017. "Small Systems, Big Targets: Power Sector Reforms and Renewable Energy Development in Small Electricity Systems," Cambridge Working Papers in Economics 1720, Faculty of Economics, University of Cambridge.
    10. Rabindra Nepal & Tooraj Jamasb & Clement Allan Tisdell, 2013. "Market-Related Reforms and Increased Energy Efficiency in Transition Countries: Empirical Evidence," Energy Economics and Management Group Working Papers 8-2013, School of Economics, University of Queensland, Australia.
    11. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    12. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    13. Sharma, Raj Hari & Awal, Ripendra, 2013. "Hydropower development in Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 684-693.
    14. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.
    15. Nepal, Rabindra, 2012. "Roles and potentials of renewable energy in less-developed economies: The case of Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2200-2206.

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