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Reforming small electricity systems under political instability: The case of Nepal


Nepal, R and Jamasb, T, Reforming small electricity systems under political instability: The case of Nepal, Energy Policy, 40 pp. 242-251. ISSN 0301-4215 (2012) [Refereed Article]

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Copyright 2011 Elsevier Ltd. All rights reserved.

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DOI: doi:10.1016/j.enpol.2011.09.062


This paper assesses the issues and options in reforming small electricity sector systems in general while citing Nepal as a specific case. Political instability and increasing electricity demand are two major complicating factors in power sector reform of small systems such as that of Nepal. Lessons from international experience suggest that measures such as cost-reflecting pricing, restructuring and independent regulation are important for the success of reforms. In small systems, the creation of an independent regulatory authority is more important than unbundling of the sector. In the present context of Nepal accounting separation of the main activities may be a pragmatic restructuring approach given the present political and market condition. As the systems gradually grow larger, vertical separation of the system and horizontal splitting of the generation segment and competition in organised wholesale market followed by privatisation remains an option in the long run.

Item Details

Item Type:Refereed Article
Keywords:political stability, regulation
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Nepal, R (Dr Rabindra Nepal)
ID Code:129884
Year Published:2012
Web of Science® Times Cited:26
Deposited By:TSBE
Deposited On:2018-12-20
Last Modified:2019-01-21

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