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Renewable Energy Policy and Development in Nepal. Dr. Govind Raj Pokharel Executive Director September 24, 2008. Government of Nepal Declared F/Y 2008/09 Alternative Energy Year. Policy Trend and AEPC.

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Renewable Energy Policy and Development in Nepal

Dr. Govind Raj Pokharel

Executive Director

September 24, 2008

Government of Nepal

Declared F/Y 2008/09

Alternative Energy Year

policy trend and aepc
Policy Trend and AEPC
  • Importance of Alternative Energy Technologies was recognized during the 7th Plan Period (1987-1992)
  • The development of the Energy Sector was given special priority during the 8th Plan (1993-1998). Objective was to reduce the growing gap between urban and rural areas

Establishment of AEPC as Government Body (1996)

introduction aepc
Introduction - AEPC
  • National Executing Agency - RE programmes and Projects.
  • Government institution under MoEST- semi autonomous status.
  • Mandate: Promotion and development of RETs: Mini/Micro hydro power up to 1000 kW, Solar Energy, Wind Energy, Biomass Energy (biogas), Geothermal Energy, Energy Efficiency!
Objective of AEPC establishment
    • to popularise and promote the use of alternative/renewable energy technology
    • to raise the living standard of the rural people,
    • to protect the environment and to develop the commercially viable alternative energy industries in the country
Vision of AEPC

"An institution recognised as a regional/ international example of promoting large-scale use of renewable energy and a national focal point for resource mobilisation"

policy trend and aepc1
Policy Trend and AEPC
  • One of the main objectives in 9th plan was to promote large Scale promotion of RETs for Poverty alleviation
  • Objectives of 10th Plan:
  • Promote and disseminate RETs as the powerful mean to enhance the livelihoods of the rural people for the poverty alleviation (increase purchasing capability)
  • Reduce the consumption of traditional energy sources
approach of ret promotion
Approach of RET promotion
  • Demand driven programme
  • Involvement of Community, Local Bodies (DDCs/VDCs) and NGOs-promotion and quality control
  • Private sector responsible for manufacturing, supply, installation and after sale services of the RETs system
  • Govt.’ technical support in terms of training, information, guidelines and quality assurance
  • Collaboration with NGOs, Local Bodies and academic institutions
AEPC & Its Programs

Mobilization, Capacity Building, Subsidy and



Private Sector

Demand & Investment

RET Supply

Promoting Agencies (Gos, NGOs, INGOs)

Roles and Responsibilities of AEPC
  • Short, medium and long term policy and plan formulation
  • Monitoring and Evaluation
  • Promotion of RET Development Programmes;
  • Standardisation, Quality Assurance and Monitoring
  • Chanelise Subsidy and Financial Assistance
  • Co-ordination of (I)NGOs and Private Sector and
  • Strengthening Organisation working in RET.
government s strategy
Government’s Strategy
  • Emphasis will be given for locally available resources and skills
  • Priority will be given to programmes which are aimed at the integrated implementation for supporting the social, economic and environmental sustainability.
  • Subsidy policy will be revised as per need in order to increase the access of rural households/communities to rural energy technology and provide maximum benefit to them
existing policies
Existing Policies
  • Renewable Energy Subsidy Arrangement and RE Subsidy Delivery Mechanism introduced and implemented
  • Rural Energy Policy, 2006
  • Tax and VAT Exemption
  • Biogas Credit Unit
    • Credit Support for the Biogas Plant Installation
financial incentives promotional measures
Financial Incentives/ Promotional Measures
  • Subsidy Based on capacity installed and HH benefited
  • Subsidy Delivery to users thru private companies by deducting from the system cost
  • Prospective manpower needed to private sectors are trained on Govt. cost
  • Tax and VAT Exemption in import of system/components
  • Biogas Credit Unit
    • Credit Support for the Biogas Plant Installation
other plan of aepc
Other Plan of AEPC
  • Sensitize all Nepalese by Celebrating Alternative Energy Year
  • Promote Bio-fuel (Bio-diesel and Bio-ethanol) to blend in diesel and petrol ( at least 10% Ethanol)
  • Promote Wind Energy
  • Solar PV in urban areas and Connection to grid
  • Promotion of biogas in urban HH based on waste
  • Adaptive R & D on Hydrogen Energy and other technologies
  • Promotional activities on Energy Efficiency
solution to energy crisis cooking boiling heating
Solution to Energy Crisis Cooking/Boiling/Heating

Household waste biogas plant/ Phuksin Biogas plant feeding agro-waste

Solar Cooker


Solar water heater

Efficient Cooking Devices

solution to energy crisis transportation
Solution to Energy Crisis: Transportation

More than 23 plants found in Nepal have the oil content as high as 80%

About 13,600 kL of resin and turpentine was produced by 12 industries and Nepal’s potential about 27,300 kL

About 1 million Kilo-liter of bio-diesel can be produced in Nepal per year if planed and developed properly.

main challenges in rets
Main Challenges in RETs
  • Lack of technical personsin the RET sector
  • Lack of access of information to the people of the remote areas
  • Un-affordability i.e. low income of the people to use the technology especially Dalit, Marginalized and remote areas
  • Connecting several MHP/MMHP to mini-grid and ultimately to the grid wherever technically financially feasible
  • Lack of coherent policy in the sector
areas needed to be focused in ret
Areas needed to be focused in RET

Developing manufacturing base (above 100kW)

Capacity building (Designers to installers & operators)

Financing (Commercial Banks and Local Financial Institutions)

End-uses/productive applications

Adaptive R & D

strategies adapted recently
Strategies adapted recently

Decentralization (establishment of DEEU/S in 72 DDCs)

Draft 3 tier Monitoring

MOUs for optimizing subsidy , integrated development

Technical Capacity Building for Designing MHP system, Small Solar Home System, ICS, Wind etc

Thank You

Any Questions??

For further information:

Alternative Energy Promotion Centre

Khumaltar, Lalitpur

Ph- 5539390/5548468

Email: [email protected]