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Reforming Small Power Systems Under Political Volatility: The Case of Nepal

Author

Listed:
  • Rabindra Nepal

    (Department of Economics, Heriot-Watt University)

  • Tooraj Jamasb

    (Department of Economics, Heriot-Watt University)

Abstract

This paper assesses the electricity sector reforms across small power systems while citing Nepal as an example. The on-going political instability and increasing electricity demand make power sector reform in Nepal and similar small systems a more complex process. As international reform experiences provide plenty of lessons to learn; raising electricity tariffs and adjusting subsidies in the presence of an effective regulation body are important in the short and medium term. The creation of an effective regulatory commission is also more urgent than unbundling the sector in smaller systems though accounting separation may sometimes be desirable as in the present context in Nepal. In the long run as the system grows, vertical separation and competitive privatisation may be pursued together with the creation of a functioning wholesale market by horizontally splitting the generation segments.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rabindra Nepal & Tooraj Jamasb, 2011. "Reforming Small Power Systems Under Political Volatility: The Case of Nepal," Working Papers EPRG 1114, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg1114
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    Cited by:

    1. Amin, Sakib & Jamasb, Tooraj & Llorca, Manuel & Marsiliani, Laura & Renström, Thomas I., 2022. "Decarbonisation policies and energy price reforms in Bangladesh," Energy Policy, Elsevier, vol. 170(C).
    2. Nepal, Rabindra, 2011. "The roles and potentials of renewable energy in less-developed economies," MPRA Paper 31878, University Library of Munich, Germany, revised 29 Jun 2011.
    3. Khatiwada, Dilip & Seabra, Joaquim & Silveira, Semida & Walter, Arnaldo, 2012. "Power generation from sugarcane biomass – A complementary option to hydroelectricity in Nepal and Brazil," Energy, Elsevier, vol. 48(1), pages 241-254.

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    Keywords

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    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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