ADB_book_18 April.qxp - Himalayan Document Centre - icimod

Chapter 6Energy ResourcesIntroductionThe availability and use of energy is necessaryfor survival and prosperity. It is basic to anysociety’s development and economic growth.Energy is used for many purposes in daily life and inthe process of social and economic development,and the amount of energy consumed is an indicatorof level of development and standard of living. Grossnational income per capita is higher where percapita energy consumption is also higher. Thisindicates the link between prosperity and energy usein the present world—rich countries use a lot ofenergy. Nepal’s per capita energy consumption isone of the lowest in the world as well as in SouthAsia, reflecting the low level of development andprosperity (Table 6.1).Expanding economic activity and populationgrowth are the two basic factors behind increases inenergy consumption. In a country like Nepal, whereeconomic growth is necessary and populationgrowth is high, energy demand will continue to risein the years to come. Energy consumption patternsand the rise in demand, their sources, and ways inwhich they are harnessed and utilized haveimplications for the environment and naturalresources, which ultimately affect overalldevelopment.Sources and Consumption PatternsSourcesNepal’s energy supply is primarily based on threesources.Traditional (biomass). This includes fuelwood,agricultural residues, and animal waste. Biomass isthe traditional source of energy in Nepalese society,which is predominantly rural and agricultural. Peoplein rural areas do not have to pay for biomass—it iseither available free from nature (fuelwood collectedfrom a nearby forest) or is a byproduct of agriculturalactivities (agricultural residues and animal dung). Inthe past, there was an abundant supply of biomassfrom the forest and agricultural activities. TheTable 6.1: Energy Consumption and Per Capita IncomeCategoryGNI($)Energy UsePer Capita(kg oilequivalent)ElectricPowerConsumptionPer Capita(kWh)World Average 5,120 1,686 2,159South Asia Average 460 469 331Countries in Different Income GroupsLow Income 430 518 317Middle Income 1,850 1,339 1,447High Income 26,490 5,423 8,421Selected CountriesNorway 38,730 5,896 24,881Switzerland 36,170 3,875 7,474United States 35,400 7,996 11,714Japan 34,010 4,099 7,237United Kingdom 25,510 3,982 5,653Singapore 20,690 7,058 7,178China, People’sRepublic of960 896 893India 470 515 365Bangladesh 380 153 94Nepal 230 357 61kg = kilogram, kWh = kilo watt-hour, GNI = gr oss national incomeNote: GNI per capita is gross national product (GNP) divided by population.Source: IBRD/WB (2004)situation has been changing in recent times due toincreases in population, long-term decline in forestareas (despite recent increases), and rising demandfor energy. Biomass is becoming scarce and biomasssources are under increasing pressure, withpotentially adverse consequences on agriculture andthe environment. However, rural people continue touse biomass as an energy source because they haveno other options and they do not have to pay for it.Commercial. Commercial energy, also knownas conventional energy, is traded in the market and inNepal this comprises coal, electricity suppliedthrough the national grid, and petroleum products.Hydropower is the main source of electricity inNepal.Chapter 6: Energy Resources65