Tag Archives: Energy Intensity Nepal

Poor Energy and Inefficient Industries

One thing is evidently clear, if no adequate provisions can be made to curb the increasing inefficiency in the way the energy is consumed in agriculture and industrial  sector in Nepal, these sectors will continue to suffer with decreasing productivity.  The sector inefficiency (which in this case is the energy intensity which we understand as energy required in producing a unit of GDP) has increased from 0.24% to 0.5% as for agriculture sector and from  2.59% to 3.16%  for industrial sector in last one decade. Below is energy intensity trend across industries between 1990 to 2010  based on the data available from IEA and World Bank.

Overall energy intensity has however decreased for various reasons like increase  access of electricity to rural population who would otherwise had to use inefficient traditional energy sources, reduction in transaction cost in availing energy services, increase in road networks connecting villages which were earlier only connected through trails and trekking routes making the overall energy inputs comparatively productive coming from 1990 to 2010.  However, the increasing reliance on petroleum products, longer hours of power cuts and inefficient energy use in manufacturing and businesses have increased the level of energy consumption per unit of GDP in industrial sectors. Current scattered efforts and initiations to benefit from the available of energy efficient measures in industrial sector has not gained a full support from the industries themselves. Despite all present technological know-how, available clean energy options ready to cater the market how long can we afford to see so much energy being wasted?

 

Energy Intensity Trend across Various Sectors in Nepal between 1990-2010 (Data Source: IEA, World Bank) Energy Intensity Trend across Various Sectors in Nepal between 1990-2010 (Data Source: IEA, World Bank)