STRATEGIC ANALYSIS OF THE NEPAL ELECTRICITY AUTHORITY: A SWOT-AHP ANALYSIS BASED ON STAKEHOLDERS’ PERCEPTIONS

Abstract

The Strength, Weakness, Opportunities & Threat (SWOT) analysis of an organization is a crucial method for assessing the most relevant internal (Strengths and Weaknesses) and external (Opportunities and Threats) factors affecting the organization. The purpose of this study is to rank the identified factors of strengths, weaknesses, opportunities and threats of the Nepal Electricity Authority (NEA), an undertaking of the Government of Nepal mandated for generation, transmission, and distribution of electricity throughout the country. This paper utilizes the Analytical Hierarchy Process (AHP), a Multicriteria Decision Making (MCDM) technique, to rank the SWOT factors for NEA strategic planning. The AHP method in combination with a SWOT analysis was utilized to conduct pairwise comparison among the identified factors in order to prioritize them using Eigen values. A structured questionnaire was used to collect data from the experts of the NEA, independent power producers, the Ministry of Energy, Water Resources and Irrigation, energy companies, and donor agencies. The study reveals that the monopoly business nature, the huge internal demand for energy and a nationwide electricity distribution network are the main strengths of the NEA whereas an inability to absorb all energy procured through “take or pay” contracts and an insufficient transmission and distribution network are the main threats and weaknesses. Similarly, long-term growth of electricity demand, trade of power and energy banking are the identified opportunities. The findings of the study will help the organization utilize its strengths and opportunities, tackle its weaknesses, and mitigate the threats.