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Promoting electric cooking in Nepal: Opportunities and Challenges

Technical Report

Promoting electric cooking in Nepal: Opportunities and Challenges

Promoting electric cooking in Nepal: Opportunities and
Challenges
Background
Ensuring access to clean cooking solutions has emerged as an important development agenda,
particularly in countries like Nepal where majority of population still relies on solid biomass for
cooking and heating (WECS 2014; CBS 2017). Past efforts at ensuring access to clean cooking
were primarily focused on technologies that could more efficiently combust solid biomass. Now,
focus of the clean cooking sector is gradually shifting to replacing traditional fuels with cleaner
cooking fuels (e.g. the new Dungcake Replacement Programme in Terai1; WHO 20142).
Growing interest in cleaner cooking fuels among policy makers, civil societies and development
partners is subsequently creating new opportunities for the promotion of modern cooking fuels
such as electricity, liquefied petroleum gas (LPG), biogas and compressed biomass
pellets/briquettes. In this paper, we discuss such potential opportunities and also challenges
associated with the promotion of electric cooking in Nepal. In this discussion paper, we will also
incorporate learning from our past and ongoing projects focused on the market-led promotion of
electric cooktop in various community rural electrification areas of Nepal.
Relevance of electric cooking in Nepal
Promoting electric cooking is relevant for and is in the best interest of Nepal for two main
reasons. First, electricity production in Nepal is expected to increase significantly in the
upcoming days. Nepal Electricity Authority (NEA) saw an all time record-high generation of
hydropower in the fiscal year 2017/18 (NEA 2019). This trend is likely to continue with a number
of pipeline hydropower projects expected to complete in the imminent future (such as the
national priority project, Upper Tamakoshi Hydroelectric Project with the maximum expected
output of 456 megawatts). As the Managing Director of NEA, Mr. Kulman Ghising, often says,
unlike in the past years, NEA is concerned not about controlling the use of electricity, but about
ways to increase its usage to manage ever-increasing generation of electric power. Clearly,
greater electricity generation would entail greater yet efficient consumption, for the country to
realize benefits from its production. While pursuing newer possibilities may take time and
necessitate newer policies, in the meantime, the government should consider using the
electricity in fulfilling all the demands that remained suppressed during the time of long power
cuts (i.e. until the late 2016). Much of these suppressed demands3 mainly include energy needs
of the public for lighting, communication, cooking, heating and water pumping (for drinking and
irrigation). Second, many energy economists and policy-makers suggest that the import of
petroleum products is one of the major contributors to Nepal’s trade-deficit. Many argue that
replacing LPG with electricity for cooking at household level alone can relieve the country to a
great extent from the trade-deficit burden (Chitrakar 2019; Nakarmi 2019). The fuel economics
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1 A new initiative by the Alternative Energy Promotion Centre that aims to minimize the use of traditional
fuels as primary cooking fuel from households in 22 districts along the Terai belt of Nepal.
2 Guidelines for Indoor Air Quality: Household Fuel Combustion 2014, the World Health Organization.
3 “Suppressed demand is the situation where energy services provided are insufficient due to poverty or
lack of access to modern energy infrastructure to meet the needs of stakeholders given their human
development needs” (Spors 2011)
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(based on the cost to end consumers), also suggests that electric cooking could be a desirable
option for household cooking; a number of studies have established that cooking on efficient
electric appliance (such as induction) is cheaper than cooking on traditional and LPG stoves
(CCA 2019; Koirala 2019; Nakarmi 2019).
Progress in electrification rate
According to the Sustainable Energy for All (SEforAll) Global Tracking Framework 2017, as
compared to other developing nations, Nepal is moving faster toward the goal of ensuring
access to electricity for all. Its electrification rate increased from mere 25 per cent in 2000 to
over 78 per cent in 2019 (NEA 2019). Given the projected increase in electricity generation,
electrification rate may be expected to improve significantly in the days to come. If the
government acts upon its vision to achieve the electrification rate of 99 percent and improves
the quality, capacity and reliability of distribution networks (as stated in the 15th Plan Approach
Paper and 2018 MOEWRI White Paper), electric cooking is likely to become a viable cooking
option for larger population than it is at present. Mr. Sagar M. Gnawali, Assistant Manager at
NEA, suggests that the existing distribution network of the country can support up to 500,000
induction cooktops.
Strategic planning around demand-side management of electricity
As the reliability of electricity supply improves and the use of electrical appliances increases,
various challenges pertinent to demand-side management of electricity may emerge. In 2015,
when there was a shortage of cooking gas in the market, many resorted to electricity to meet
their demand for cooking fuel. Unexpected peak in electricity consumption consequently
overloaded the distribution systems; this had significantly increased the repair and maintenance
cost for distribution networks (NEA 2016). In order to avoid such situation in the future, it is
imperative to perform regular mapping of distribution systems based on their capacity, and load
status. It is important to make sure that promotion of electric cooking in the initial days remains
concentrated on areas where distribution systems are currently underloaded. Community rural
electrification areas, where electricity consumption is generally low and loadcentres are often
underloaded, are potential start points for the promotion of electric cooking. Electric cooking is
relevant in rural electrification areas, also because majority of households there uses traditional
fuels as primary cooking fuel. Having said that, information about load balance situation of
distribution systems should be used to estimate allowable demand for electric cooking. In an
ongoing study being implemented by ABF/NACEUN and supported by GIZ/EnDEV in Timal
Rural Municipality, load profile information (measured during peak hours) for each transformer
was used to estimate total number of induction cooktops that could be supported by each load
center. For example, for 100 kVA transformer, depending on total number of households
connected to it and peak-hour load profile information, total number of induction cooktops that
could be promoted ranged between 25-37 in different load centers. Similarly, in areas where the
demand exceeded the maximum capacity of load centers, Timal CREE initiated a process to
either upgrade transformers’ capacity or to add load centers in the high-demand areas.
While we concentrate promotional activities for electric cooking on underloaded systems,
strategic plan should be developed to expand the scope of promotional activities to cover the
remaining areas as their distribution systems are upgraded to support the increased load. Now
that electric cooking is widely being viewed as potential clean cooking solution, it has become
relevant and crucial also to raise awareness among stakeholders in the clean cooking sector
about the need to consider the load status and capacity of the respective distribution network
including the household wiring system, prior to promoting electric cooking in any community.
Policies, regulations and standards
One of the major strategies of the government around energy development is to improve the
effectiveness and reliability of the distribution networks and to improve access to electricity
(NPC 2019; MOEWRI 2018). Furthermore, the 15th Plan Approach paper states that the
government plans to implement the concept of ‘Smokeless kitchen’ in order to replace solid
biomass with electrical energy. Consistent with that, the 2018 MOEWRI White Paper outlines
the government’s vision to achieve ‘Electric stove in every house’. These are indicative of the
government’s growing interest in promoting electric cooking in the country. However, the
government will have to come up with concrete targets, and conducive laws and regulations to
make electric cooking an attractive choice for the people.
Tariff&structure&
The 15th Plan Approach paper outlines the government’s plan to fix electricity tariff to make it
more favorable for household electric cooking. This has not been realized yet. At present, NEA
uses seven-tier increasing block tariffs for domestic consumers. Increasing block tariffs with
many blocks may make sense when the objective is to encourage economical use of electricity
among diverse income and consumption level groups. However, at the time when the objective
is to promote electricity consumption, tariffs need to be structured accordingly so as to make
electrical energy look more attractive than LPG or traditional cooking fuels for all. The current
tariff structure sets the lifeline level at 20 units per month, which is generally considered just
enough for a family of five to meet its lighting, education and communication requirements
(AGECC 2010). The 20 kWh lifeline block is too narrow, and the difference in per unit cost of
electricity for the lifeline and the second lowest blocks is the largest. This is likely to demotivate
lifeline block consumers to consume beyond the lifeline level. According to a baseline study
conducted by ABF/NACEUN for an EnDev-supported electric cooking promotion project in Timal
Rural Municipality (RM) of Kavre district, two third of the surveyed households (total surveyed
households = 125) were lifeline consumers (with three-monthly average electricity consumption
below or equals to 20 units), and more than 73 percent of the households had just one or no
electrical device at home.
At present, majority of households in Nepal have electrical wiring set up to meet basic energy
requirements, with meter capacity of 5 Ampere. In Timal RM, about 97 percent of 125
households surveyed had a meter capacity of 5-Ampere. This traditional wiring systems and
meter capacity may need upgradation to safely allow increased electric power consumption by
electric cooking devices. However, the cost of upgradation from 5-Ampere to 15-Ampere meter
capacity plus the associated increase in per unit cost of electricity add cost burden to
consumers, which altogether can discourage many from switching to electric cooking.
Standards&for&household&electric&appliances&
In 2015, there was a general lack of awareness about quality and standards of electric cooking
among buyers and sellers of induction cook tops. Unfortunately, at the time, the government
also did not have any national standard set for household electrical appliances. As a result,
many substandard electrical cooking appliances made it into the Nepali market, yet sold like a
hot cake at the time of blockade. The uses of substandard electrical appliances present a
serious risk of fire or electric shock. Now in order to mitigate such situations, Nepal Bureau of
Standard and Metrology has recently endorsed national standards for household electrical
appliances; the implementation of the standards is being planned. This may be viewed as a
timely progress that complements the efforts pertinent to the promotion of a good quality electric
cooking in Nepal. For its effectiveness and greater utility, however, it is important to raise
awareness about its significance among all stakeholders, supply chain actors and consumer
groups.
Household electrical safety and wiring systems
General population, particularly in rural and suburban communities, is unaware about electrical
safety measures and the basic wiring requirements (such as the need for appropriate protection
system, at least 3/22 cable, dedicated power socket for induction cooktop in the kitchen, etc.) for
induction cooktop connection in the kitchen. Therefore, in addition to including information about
costs-benefits and quality standards of electric cooking, it is important also to integrate
information about electrical system requirements and electrical safety into promotional
messages. This is crucial to avoid system failures and to promote safe and sustainable use of
electric cooking.
Local Partnership
Effective and efficient promotion of electric cooking entails concerted efforts of and coordination
between electricity service providers, government, potential consumers, private sectors and
implementing agencies. Role of local electrification entities is particularly crucial in the
promotion of electric cooking at local level since they are better positioned to efficiently monitor
and improve the distribution system to support any anticipated increase in the demand for
electric cooking. Having endured long hours of power cuts for many years, consumers are still
skeptic about using electricity for cooking. Accountability of local electricity distributors toward
local consumers and improvement in reliability of electricity can only restore the confidence of
local consumers on local distribution system, which again is not possible without local entities’
active participation in the creation of and management of demand for electric cooking.
Summary
Electric cooking is increasingly being recognized as one of the potential clean cooking solutions
for Nepal. From both macro and microeconomics perspective, promotion of electric cooking
seems to be in the best interest of Nepal. Likely increase in the production of electric power and
improvement in electrification rate present themselves as important opportunities for the
promotion of electric cooking. Yet, challenges exist related to reliability of distribution networks,
restrictive tariff structure for domestic consumers, and a lack of awareness among supply chain
actors and consumers about system requirements for and quality standards of electric cooking
appliances. Government policies are becoming more and more conducive for the promotion of
electric cooking, however, in order to encourage consumers to opt for electric cooking, the
foregoing issues need to be addressed. Given the current status of the distribution networks, the
promotion of electric cooktop should be strategically planned and concentrate on underloaded
systems. At present, the promotion of electric cooktop seems more appropriate for rural
community electrification areas where the distribution systems are generally underloaded and
locally managed.
Reference'
[AGECC] Advisory Group on Energy and Climate Change. 2010. Energy for a Sustainable Future. The
Secretary General’s Advisory Group on Energy and Climate Change, Summary Report and
Recommendations. New York: United Nations.
Local entity’s role in electric cooking promotion
ABF/NACEUN has been implementing a ‘Market-led promotion of electric cooking’ project in Temal Rural Municipality in
Kavrepalanchok district, with support from giz EnDev. Local ownership of the promotional activities by the local partner i.e.
Timal Community Rural Electrification Entity (Timal CREE) helped the project to reach potential targets efficiently and in a
timely manner. As a result, the Temal CREE received demand for over 300 induction cooktops from across 30 loadcentres
in a matter of just one month. With technical support from the project team, the CREE has been managing the demand in
each loadcentre so that it does not surpass the loadcentre’s capacity. In areas with reasonably high demand, the CREE
has initiated a process to add new loadcentres.
[CCA] Clean Cooking Alliance. 2019. Induction cooktop and rice cooker usage & behavior of appliance
usage. Modern Energy Cooking Services Workshop, CRT/GenDev Centre for Research and
Innovation, Kathmandu, Nepal.
[CBS] Central Bureau of Statistics. 2018. Annual Household Survey Report 2016/17. Central Bureau of
Statistics, National Planning Commission, Government of Nepal: Kathmandu.
Chitrakar, A. 2019. Look what’s cooking in Nepal: Using electric rice cookers instead of LPG could save
the country a whole lot of money. The Nepali Times, August 6, 2019. Available from
https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/ (Accessed 27 Dec 2019)
Gyawali, S.M. 2019. Induction cook stoves adoption in National Grid as a Demand Side Management
Program. Modern Energy Cooking Services Workshop, CRT/GenDev Centre for Research and
Innovation, Kathmandu, Nepal.
Koirala, S. 2019. Is electricity cheap enough to replace cooking gas? The Kathmandu Post, September
3, 2019. Available from https://kathmandupost.com/columns/2019/09/03/is-electricity-cheap-enough-to-
replace-cooking-gas (Accessed 27 Dec 2019)
Nakarmi, A.M. 2019. Energy Security Issues/Challenges and Transitioning to Cleaner Cooking in
Nepal. National Campaign Launching Ceremony for Market-led Promotion of Electric Cooking in
Community Rural Electrification Areas, ABF/NACEUN, Kathmandu, Nepal.
[NEA] Nepal Electricity Authority. 2019. Nepal Electricity Authority: A Year in Review Fiscal Year
2018/2019. Nepal Electricity Authority: Kathmandu.
[MOEWRI] Ministry of Energy, Water Resource and Irrigation. 2018. Current Status and Future
Roadmap of the Ministry of Energy, Water Resource and Irrigation (White Paper). Ministry of Energy,
Water Resource and Irrigation: Kathmandu.
[WECS] Water and Energy Commission Secretariat. 2014. Energy Data Sheet. Water and Energy
Commission Secretariat. Government of Nepal: Kathmandu.
... LPG, for example, is bulky to transport, involves high installation costs and is not easily accessible in areas with a restricted infrastructure. Likewise, unreliable distribution networks, the high initial cost of electric cooking appliances, restrictive tariff structures and a lack of awareness among people appear as challenges impeding the wider use of electricity for cooking purposes [28]. Firewood, crop residue and dung do not come with these affordability and infrastructure barriers. ...
Article
Full-text available
Clean-cooking energy is key to meeting climate-mitigation goals and a range of development objectives, especially for improving the well-being of women and children. Inefficient burning of solid biomass for cooking releases household air pollution that is hazardous to health, while putting pressure on forest resources. This paper provides an overview of the household-cooking-energy transition in Nepal to date. Despite numerous efforts by the government and other actors to speed this transition, energy data spanning the years 2000–18 reveal that ~69% of households nationwide still rely on solid fuels for cooking today. The proportion of solid-fuel users is especially high in rural regions, reaching >80%. Moreover, if the current rate of progress is not accelerated, the use of solid fuels will remain high even in 2030, preventing the achievement of Sustainable Development Goal (SDG) 7. Cooking-fuel choices are heavily constrained by accessibility, demographic and socio-economic factors. Thus, this paper recommends that evidence-based and integrated policies and strategies be urgently deployed to foster a more effective and rapid transition towards clean energy, which is critical to achieving SDG 7.
Annual Household Survey Report
• [CBS] Central Bureau of Statistics. 2018. Annual Household Survey Report 2016/17. Central Bureau of Statistics, National Planning Commission, Government of Nepal: Kathmandu.
Look what's cooking in Nepal: Using electric rice cookers instead of LPG could save the country a whole lot of money. The Nepali Times
  • A Chitrakar
• Chitrakar, A. 2019. Look what's cooking in Nepal: Using electric rice cookers instead of LPG could save the country a whole lot of money. The Nepali Times, August 6, 2019. Available from https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/ (Accessed 27 Dec 2019)
Induction cook stoves adoption in National Grid as a Demand Side Management Program
  • S M Gyawali
• Gyawali, S.M. 2019. Induction cook stoves adoption in National Grid as a Demand Side Management Program. Modern Energy Cooking Services Workshop, CRT/GenDev Centre for Research and Innovation, Kathmandu, Nepal.
Is electricity cheap enough to replace cooking gas? The Kathmandu Post
  • S Koirala
• Koirala, S. 2019. Is electricity cheap enough to replace cooking gas? The Kathmandu Post, September 3, 2019. Available from https://kathmandupost.com/columns/2019/09/03/is-electricity-cheap-enough-toreplace-cooking-gas (Accessed 27 Dec 2019)
Energy Security Issues/Challenges and Transitioning to Cleaner Cooking in Nepal. National Campaign Launching Ceremony for Market-led Promotion of Electric Cooking in Community Rural Electrification Areas
  • A M Nakarmi
• Nakarmi, A.M. 2019. Energy Security Issues/Challenges and Transitioning to Cleaner Cooking in Nepal. National Campaign Launching Ceremony for Market-led Promotion of Electric Cooking in Community Rural Electrification Areas, ABF/NACEUN, Kathmandu, Nepal.
Water and Energy Commission Secretariat
• [WECS] Water and Energy Commission Secretariat. 2014. Energy Data Sheet. Water and Energy Commission Secretariat. Government of Nepal: Kathmandu.