Reforms in Small Power Systems

How can we effectively reform a small electricity system like Nepal experiencing twin problems of political volatility and increasing power demand under capacity shortage? Our recently published policy paper titled ‘’Reforming Small Electricity Systems under Political Instability: The Case of Nepal’’ at the Electricity Policy Research Group(EPRG), University of Cambridge analyses the issues and options surrounding the Nepalese electricity sector and provides appropriate policy recommendations.
We suggest a piece-meal approach of reform considering the resource constraints and recommend a two-staged reform process based on the lessons learnt fr0m other electricity systems in the world. In the short and medium term, focus should be towards tariff and subsidies restructuring and creating an effective independent regulatory body. Economic theory also suggests that cost-reflective prices is desirable as it leads to net social welfare gains although assessing the distributional impacts of tariff adjustment is a complicated task. A two part tariff design where a fixed payment is added to the system marginal income (such as capacity payments) can ensure the sustainability of the system as widely practised in most Latin American countries.
To follow the rest of the article, please follow the link below:
http://www.ekantipur.com/the-kathmandu-post/2011/04/14/oped/marketing-electricity/220603.html

Energy Emergency in Nepal

The declaration of ‘a state of energy emergency’ by the energy Ministry was utterly unsurprising to read about. Yes, energy emergency is an alternative expression to indicate a deepening energy crisis and the ministry rightly expressed so. Energy emergency is also an urge for meaningful policy urgency. As history repeats agahttp://www.blogger.com/img/blank.gifin, the newly formed government also did not delay on the opportunities to sketch the future course of the Nepalese energy sector. While some of the earlier policies are now declared to be discontinued and stalled, more new policies are designed in a bid to mitigate the crisis under political uncertainty. I believe that the new policies formulated are logical and indeed reflects the plight of the sector and the subsequent hope of the nation it carries upon.
To read the rest of the article published in The Kathmandu Post, please click on the link below
http://www.ekantipur.com/the-kathmandu-post/2011/04/02/oped/divide-and-grow/220155.html