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A State of Emergency in Power Sector

Issue 52, December 28, 2008


By KTM Metro Reporter in Kathmandu

The Government of Nepal has declared a state of emergency in the power sector. Using the authority given by a state of emergency, the government has made changes in the definition of micro and small hydropower plants and declared additional benefits to the power-producing companies. Up to one megawatt power (MW) plants are defined as the micro hydropower plants and up to 25 MW power plants as small hydropower plants. They do not need to take any approval of the Ministry of Environment for an environmental impact assessment and do not need to hold such an assessment. The Government also released the list of power projects for immediate, short-term and long-term implementation. At the same time, the State-run utility company: Nepal Electricity Authority said that the daily power cuts would be increased to 12 hours, as the rivers feeding water to hydropower plants have been drying up and power generation has been decreased whereas the power demand has gone up.

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