Section 5
Policies
The following policies shall be pursued for the implementation of the above-mentioned matters:
5.1 Hydropower potential of the country shall be utilized to the maximum extent in order to meet the domestic demand of electricity.
5.2 Hydropower projects suitable to the electric system for domestic use as well as the storage projects shall be developed as per requirement on competitive basis.
5.3 Implementation of hydropower projects based on the concept of Build, Operate, Own and Transfer shall be encouraged.
5.4 Appropriate incentive provisions shall be provided and transparent process shall be pursued to attract national and foreign investment in hydropower development.
5.5 Efforts shall be continued for implementation of large storage type hydropower projects and multi-purpose projects. Large storage type multi-purpose projects shall be developed in such a way that downstream benefits resulting from the projects would yield maximum benefits to the nation.
5.6 In the case of multi-purpose projects, Government of Nepal may participate with the private sector in view of possibility of irrigation development.
5.7 Contribution shall be made for environment protection by developing hydropower as an alternative to biomass and thermal energy.
5.8 In addition to mitigation of adverse environmental impacts likely to result from the operation of hydropower projects, appropriate provision shall be made to resettle the displaced families.
5.9 Emphasis shall be given on mobilization of internal capital market for investment in power sector.
5.10 Electrification of remote rural areas shall be encouraged by operating small and micro hydropower projects at the local level.
5.11 Rural electrification shall be extended in order to make electricity service available to as many people as possible. In addition to mobilization of public participation, a Rural Electrification Fund shall also be established for the purpose.
5.12 Unauthorized leakage of electricity shall be controlled. For this purpose, necessary technical measures and appropriate legal provisions shall be adopted and, mobilization of public support shall also be emphasized.
5.13 It shall be encouraged to utilize the electric power available during low demand in the sectors such as rural water supply, irrigation, industry, tourism, etc.
5.14 Provision shall be made to provide appropriate benefits at the local level while operating hydropower projects.
5.15 Proper provision shall be made to cover risks likely to occur in hydropower projects.
5.16 In view of the concept of bilateral and regional cooperation and taking into consideration the abundant hydropower generation capacity in the country, export of electricity shall be encouraged.
5.17 The existing institutions in the public sector shall be re-structured to create competitive environment by encouraging the involvement of community/cooperative institutions, local bodies and private sector in generation, transmission and distribution of hydropower in order to extend reliable and qualitative electricity service throughout Nepal at a reasonable price.
5.18 Attention shall be paid to safeguard the consumers' interests providing reliable and qualitative electricity service to the consumers at a reasonable price.
5.19 Process for electricity tariff fixation shall be made rational and transparent so that electric energy shall be supplied at a reasonable price.
5.20 Priority shall be given to utilize labour and skills of Nepal in the implementation of hydropower projects.
5.21 An institution shall be developed to impart training within the country to produce skilled manpower for the development of hydropower and to enhance the capability of the persons involved in this sector. The institution may also carry out studies and research works related to hydropower development.
5.22 Consumers shall be encouraged for demand side management to enhance energy conservation.
5.1 Hydropower potential of the country shall be utilized to the maximum extent in order to meet the domestic demand of electricity.
5.2 Hydropower projects suitable to the electric system for domestic use as well as the storage projects shall be developed as per requirement on competitive basis.
5.3 Implementation of hydropower projects based on the concept of Build, Operate, Own and Transfer shall be encouraged.
5.4 Appropriate incentive provisions shall be provided and transparent process shall be pursued to attract national and foreign investment in hydropower development.
5.5 Efforts shall be continued for implementation of large storage type hydropower projects and multi-purpose projects. Large storage type multi-purpose projects shall be developed in such a way that downstream benefits resulting from the projects would yield maximum benefits to the nation.
5.6 In the case of multi-purpose projects, Government of Nepal may participate with the private sector in view of possibility of irrigation development.
5.7 Contribution shall be made for environment protection by developing hydropower as an alternative to biomass and thermal energy.
5.8 In addition to mitigation of adverse environmental impacts likely to result from the operation of hydropower projects, appropriate provision shall be made to resettle the displaced families.
5.9 Emphasis shall be given on mobilization of internal capital market for investment in power sector.
5.10 Electrification of remote rural areas shall be encouraged by operating small and micro hydropower projects at the local level.
5.11 Rural electrification shall be extended in order to make electricity service available to as many people as possible. In addition to mobilization of public participation, a Rural Electrification Fund shall also be established for the purpose.
5.12 Unauthorized leakage of electricity shall be controlled. For this purpose, necessary technical measures and appropriate legal provisions shall be adopted and, mobilization of public support shall also be emphasized.
5.13 It shall be encouraged to utilize the electric power available during low demand in the sectors such as rural water supply, irrigation, industry, tourism, etc.
5.14 Provision shall be made to provide appropriate benefits at the local level while operating hydropower projects.
5.15 Proper provision shall be made to cover risks likely to occur in hydropower projects.
5.16 In view of the concept of bilateral and regional cooperation and taking into consideration the abundant hydropower generation capacity in the country, export of electricity shall be encouraged.
5.17 The existing institutions in the public sector shall be re-structured to create competitive environment by encouraging the involvement of community/cooperative institutions, local bodies and private sector in generation, transmission and distribution of hydropower in order to extend reliable and qualitative electricity service throughout Nepal at a reasonable price.
5.18 Attention shall be paid to safeguard the consumers' interests providing reliable and qualitative electricity service to the consumers at a reasonable price.
5.19 Process for electricity tariff fixation shall be made rational and transparent so that electric energy shall be supplied at a reasonable price.
5.20 Priority shall be given to utilize labour and skills of Nepal in the implementation of hydropower projects.
5.21 An institution shall be developed to impart training within the country to produce skilled manpower for the development of hydropower and to enhance the capability of the persons involved in this sector. The institution may also carry out studies and research works related to hydropower development.
5.22 Consumers shall be encouraged for demand side management to enhance energy conservation.