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Renewable energy technologies (RETs) were promoted in Nepal since the early seventies but the promotional packages were designed and implemented after nineties. Subsidy policy and other incentive packages and institutional set up with strong private and public sector participation have been instrumental for the positive and impressive growth of renewable energy sector of Nepal. Currently the growth rate of renewable energy sector is around 15 percent. As of 2010, 15.62 MW of micro hydropower has been developed, 7.5 MW of solar power has been developed and installed in the rural household as solar home system; 7239 water mills have been installed, 9.2 kW wind power have been installed, 415649 households are using improved cook stoves, and 221286 biogas plants have been installed in Nepal (MDG Progress Report 2010). It is indicated that 9% of Nepal's population uses electricity from renewable energy resources (Approach Paper TYP 2010). In the current Three Year plan there is a target to provide with access to electricity to additional 7 percent of the total rural population from alternative energy sources by installing 15 MW micro and mini hydropower in the potential Hill districts of Nepal which will benefit the additional 150,000 households from electricity facility, and 125,000 Solar PV home system and 100,000 small solar systems. It is also indicated that additional 1 MW capacity of wind energy system is being planned by the Government of Nepal (Approach paper of TYP 2010).
The rural energy systems development is under the purview of the Ministry of Environment (MoE) and is implemented through the Alternative Energy Promotion Centre (AEPC). The AEPC takes lead in policy matters, planning, coordination, quality assurance, monitoring and fund mobilisation to implant RE activities. At the district level, it works through the District Development Committees (DDCs) to implement rural energy programmes, particularly through community mobilization approach and this is being expanded to all other districts. A comprehensive Rural Energy Policy was promulgated by the GoN in November 2006, which highlights the role of the private sector in expanding energy solutions and replacing inefficient and unsustainable use of biomass based energy with cleaner energy sources, it also highlights the role of community-managed energy service delivery and the promotion of productive uses of energy for poverty alleviation.
Various bi-lateral and multilateral development partners, such as, Denmark, Norway, Germany, Netherlands, Canada, United Nations Development Programme (UNDP), World Bank (WB), Asian Development Bank (ADB), European Union (EU), USAID , DFID-UK, GIZ etc. have supported Nepal for these RETs promotion. Similarly, various government bodies, line ministries, private sector, non-governmental organisation (NGOs), and community based organization (CBOs) have played vital role to achieve these outputs.
AEPC plays a central executive role in coordinating all the interventions from programmes under its management. Currently, ongoing and recently closed programmes are as follows:
Energy Sector Assistance Programme (ESAP): Funded by the Government of Nepal, Denmark, Norway; KFW-Germany, DFID-UK, it focuses on the promotion of more efficient biomass energy technologies for cooking and heating, solar home systems and mini and micro hydro power installations. The ESAP project is scheduled to end in the beginning of 2012. A joint review of ESAP II was conducted in January 2011 which provided a comprehensive assessment of the renewable energy sector/programmes in Nepal. The review document proposes harmonisation of energy programs and preparing the rural energy sector for Sector Wide Approach in the next phase. The process of developing next phase energy programme beyond ESAP II is currently being started..
Improved Watermill Programme (IWP): Funded by the Government of Netherlands through Netherlands Development Organization (SNV) and the Government of Nepal; this program was implemented by the Centre for Rural Technology Nepal (CRT/N). It focussed on improved water mill sector through institutional and local capacity development. The project was completed in 2010. Currently the programme has been integrated into ESAP II and the Government of Norway has committed for support from the beginning of 2011
Renewable Energy Project (REP): A joint effort of the European Union and the Government of Nepal which focuses on the promotion of institutional solar energy systems for public services (schools, hospitals, etc), pumping water both for drinking and irrigation purpose as well as for income generating activities. The project is scheduled to end in February 2012.
Rural Energy Development Program (REDP): Supported by UNDP and the World Bank, REDP focuses on local level capacity building to increase access to clean energy through community mobilization models. It works on community - managed mini and micro hydro, biogas, improved cook stoves and solar home systems. The project is ending in March 2010. UNDP envisions a five year renewable energy program under "Renewable Energy for Rural Livelihoods" which will be building on the best practices of REDP with an up-scale livelihood approach. This transition document is an outcome of the broader program.
Biogas Support Programme (BSP): It is a joint programme of three Governments - the Government of Nepal, Government of Germany represented by KfW and the Government of the Netherlands represented by SNV and it focuses on the development of a sustainable domestic biogas sector in Nepal. Now the programme is supported by GoN, Germany through KfW and the World Bank under GPOBA (Global Partnership on output based Aid).
Specific small programmes: Besides these large programmes, there are special smaller programmes of the Government, such as the Ujyalo Nepal Programme (provision of RE in Rukum and other districts - Jajarkot and Rolpa) and the Biofuel Project within AEPC.
The REDP has been appraised positively by various independent evaluations and impact assessments. An independent assessment of REDP impacts and contribution to achieving MDGs found substantial improvements in major MDGs indicators. REDP's good practices have been highlighted both nationally and internationally in the form of awards and recognitions. The final evaluation (Dec 2006 to Jan 2007) highlighted a number of positive impacts as well as drawing key lessons as future directions.
As many renewable energy programmes are phasing out by end of 2012, there have been several efforts to develop new renewable energy programmes in line with national and international priority in more integrated and harmonized way. One of such initiatives has been taken by Asian Development Bank and The World Bank in close coordination with GoN/AEPC to bring a renewable energy up-scaling programme. Likewise in the 2010/11 Government of Nepal allocated one billion Nepali Rupees to expand the micro and mini hydropower sector by mobilizing local resources through active involvement of local bodies. This support will be provided in those areas where extension of national grid might not be possible in short time but is feasible to install micro hydro schemes New avenues for mobilizing resources such as SREP and opportunities for harmonized and coordinated Renewable Energy Sector programming are emerging. The current strong initiatives to form Renewable energy Central Coordination Committee (RECCC) and establishment of Central Renewable Energy Fund and establish Rural and Renewable Energy Partnership Forum will also make conducive environment for partnership. Furthermore, the climate change agenda translated into climate resilient planning has also opened up new area of partnership.
The rural energy systems development is under the purview of the Ministry of Environment (MoE) and is implemented through the Alternative Energy Promotion Centre (AEPC). The AEPC takes lead in policy matters, planning, coordination, quality assurance, monitoring and fund mobilisation to implant RE activities. At the district level, it works through the District Development Committees (DDCs) to implement rural energy programmes, particularly through community mobilization approach and this is being expanded to all other districts. A comprehensive Rural Energy Policy was promulgated by the GoN in November 2006, which highlights the role of the private sector in expanding energy solutions and replacing inefficient and unsustainable use of biomass based energy with cleaner energy sources, it also highlights the role of community-managed energy service delivery and the promotion of productive uses of energy for poverty alleviation.
Various bi-lateral and multilateral development partners, such as, Denmark, Norway, Germany, Netherlands, Canada, United Nations Development Programme (UNDP), World Bank (WB), Asian Development Bank (ADB), European Union (EU), USAID , DFID-UK, GIZ etc. have supported Nepal for these RETs promotion. Similarly, various government bodies, line ministries, private sector, non-governmental organisation (NGOs), and community based organization (CBOs) have played vital role to achieve these outputs.
AEPC plays a central executive role in coordinating all the interventions from programmes under its management. Currently, ongoing and recently closed programmes are as follows:
Energy Sector Assistance Programme (ESAP): Funded by the Government of Nepal, Denmark, Norway; KFW-Germany, DFID-UK, it focuses on the promotion of more efficient biomass energy technologies for cooking and heating, solar home systems and mini and micro hydro power installations. The ESAP project is scheduled to end in the beginning of 2012. A joint review of ESAP II was conducted in January 2011 which provided a comprehensive assessment of the renewable energy sector/programmes in Nepal. The review document proposes harmonisation of energy programs and preparing the rural energy sector for Sector Wide Approach in the next phase. The process of developing next phase energy programme beyond ESAP II is currently being started..
Improved Watermill Programme (IWP): Funded by the Government of Netherlands through Netherlands Development Organization (SNV) and the Government of Nepal; this program was implemented by the Centre for Rural Technology Nepal (CRT/N). It focussed on improved water mill sector through institutional and local capacity development. The project was completed in 2010. Currently the programme has been integrated into ESAP II and the Government of Norway has committed for support from the beginning of 2011
Renewable Energy Project (REP): A joint effort of the European Union and the Government of Nepal which focuses on the promotion of institutional solar energy systems for public services (schools, hospitals, etc), pumping water both for drinking and irrigation purpose as well as for income generating activities. The project is scheduled to end in February 2012.
Rural Energy Development Program (REDP): Supported by UNDP and the World Bank, REDP focuses on local level capacity building to increase access to clean energy through community mobilization models. It works on community - managed mini and micro hydro, biogas, improved cook stoves and solar home systems. The project is ending in March 2010. UNDP envisions a five year renewable energy program under "Renewable Energy for Rural Livelihoods" which will be building on the best practices of REDP with an up-scale livelihood approach. This transition document is an outcome of the broader program.
Biogas Support Programme (BSP): It is a joint programme of three Governments - the Government of Nepal, Government of Germany represented by KfW and the Government of the Netherlands represented by SNV and it focuses on the development of a sustainable domestic biogas sector in Nepal. Now the programme is supported by GoN, Germany through KfW and the World Bank under GPOBA (Global Partnership on output based Aid).
Specific small programmes: Besides these large programmes, there are special smaller programmes of the Government, such as the Ujyalo Nepal Programme (provision of RE in Rukum and other districts - Jajarkot and Rolpa) and the Biofuel Project within AEPC.
The REDP has been appraised positively by various independent evaluations and impact assessments. An independent assessment of REDP impacts and contribution to achieving MDGs found substantial improvements in major MDGs indicators. REDP's good practices have been highlighted both nationally and internationally in the form of awards and recognitions. The final evaluation (Dec 2006 to Jan 2007) highlighted a number of positive impacts as well as drawing key lessons as future directions.
As many renewable energy programmes are phasing out by end of 2012, there have been several efforts to develop new renewable energy programmes in line with national and international priority in more integrated and harmonized way. One of such initiatives has been taken by Asian Development Bank and The World Bank in close coordination with GoN/AEPC to bring a renewable energy up-scaling programme. Likewise in the 2010/11 Government of Nepal allocated one billion Nepali Rupees to expand the micro and mini hydropower sector by mobilizing local resources through active involvement of local bodies. This support will be provided in those areas where extension of national grid might not be possible in short time but is feasible to install micro hydro schemes New avenues for mobilizing resources such as SREP and opportunities for harmonized and coordinated Renewable Energy Sector programming are emerging. The current strong initiatives to form Renewable energy Central Coordination Committee (RECCC) and establishment of Central Renewable Energy Fund and establish Rural and Renewable Energy Partnership Forum will also make conducive environment for partnership. Furthermore, the climate change agenda translated into climate resilient planning has also opened up new area of partnership.
