Government of Nepal
Ministry of Energy, Water Resources and Irrigation

Alternative Energy Promotion Centre

Making Renewable Energy and Energy Efficiency Mainstream Supply in Nepal
Knowing Energy Efficiency

EE Introduction
Energy Efficiency (EE) means a maximum output with fixed energy input or a fixed output with the minimum energy input. Energy efficiency is achieved when energy intensity in a specific product, process or area of production or consumption is reduced without affecting output, consumption or comfort levels. For example, replacing incandescent light bulbs with Light-Emitting Diodes (LEDs) will use only about 1/10th of the energy to light a room (USA Lights and Electric, 2017). OECD/ IEA (2018) reports that energy efficiency measures is one of the cheapest GHG reductions options and can contribute about 40% of the CO2 abatement needed by 2050 to achieve emissions reduction consistent with a target of limiting global temperature increase to 2 degrees Celsius.

Energy efficiency is often called “first fuel” or “a major energy resource” with largely untapped potential in the context of national and international efforts to achieve sustainability targets (OECD/ IEA, 2014) because it is a source of energy in its own created through saving.  Energy efficiency avoids costs associated with the construction of new generation capacity. It focuses more on “Negawatts” (energy saved as a direct result of energy conservation measures) rather than on “Megawatts”.

History

In Nepal, efforts like study and analysis related to energy efficiency can be found to have started since 1985 and below are the mentioned programmes conducted in Nepal in the past.

UNESCAP/UNIDO EE PROJECT (1985-1986)

  • Mainly Concentrated on Industrial Sector with Ministry of Industry (MoI) as the leading agencies
  • Training to engineers and Managers for energy auditing techniques

OFFICE OF EE SERVICE, OEES (1994-1998)

  • World Bank Financial
  • Confined to awareness creation, training courses, energy audits in industries and hotels
  • Calculated fuel-saving worth NRs 5.3 million in 10 demonstration units.
  • Energy cost and demand (kVA) saving worth 10 million from 30 audited units.

INDUSTRIAL ENERGY MANAGEMENT PROJECT, IEMP (1994-1998)

  • Towards the end of OEES, handover to MoI and renamed as IEMP
  • IEMP were focused on Energy Efficiency works such as training, awareness, etc.

ENVIRONMENT SECTOR PROGRAM SUPPORT, ESPS (2000-2005)

  • Bilateral program between DANIDA, Ministries of Industry, Environment and population, labour and transport management
  • 360 participated industries (small, medium, large)

NEPAL ENERGY EFFICIENCY PROGRAM, NEEP (2010-2021)

  • MoEWRI with Technical assistance by GIZ on the behalf of BMZ
  • Intervention Areas (Policy, Support to NEA, EE Market Development, EE in higher education/Vocational Training)
  • Continuation with Renewable Energy and Energy Efficiency Program (REEEP) from 2021

RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAM, REEEP (2021-TILL DATE)

  • Renewable Energy and Energy Efficiency related activities

GOVERNMENT OF NEPAL’S INSTITUTIONS WORKING ON EE

Ministry of Industry, Commerce and Supply

  • Timber Corporation
  • Nepal Oil Corporation
  • NBSM

Ministry of Energy, Water Resources and Irrigation

  • AEPC
  • NEA

Academic Institution

  • Institute of Engineering (IOE)
  • Kathmandu University (KU)
  • Council For Technical Education and Vocational Training (CTEVT)

Ministry of Urban Development

  • Town Development Fund (TDF)

Associations

  • Federation of Nepalese Chambers of Commerce and Industry (FNCCI)
  • Confederation of Nepalese Industries (CNI)

Development Partners

  • USAID
  • GIZ
  • DFID

National and international experiences have shown that energy efficiency can be a reliable resource in the sustainable energy mix. With support from Nepal Energy Efficiency Programme (NEEP), Nepal has made remarkable achievements in the promotion of energy efficiency during the short span. The Biomass Energy Strategy 2017 and National Energy Efficiency Strategy 2018 are the key strategies adopted by the Government of Nepal (GoN) for the development of the energy efficiency sector. Energy Efficiency and Conservation Bill is currently under consideration by the Cabinet for submission to the Parliament. Alternative Energy Promotion Centre (AEPC), the mandated institution of the GoN to work in the areas of renewable energy and energy efficiency under the purview of the Ministry of Energy, Water Resources and Irrigation (MoEWRI), is keenly moving forward by building collaborations with the relevant partners and stakeholders in creating awareness at various levels, developing institutional structures and capacities, and formulating a suitable regulatory framework for the institutionalization of energy efficiency in Nepal.

Mission, Vision and Goal
Mission, Vision and Goal stated on National Energy Efficiency Strategy, 2075:

Vision

To assist in energy security by increasing energy access through efficient use of available energy

Mission

To promote energy efficiency by effectively implementing energy efficiency programmes through establishing policy, legal and institutional frameworks. 

Goal

To double the average improvement rate of energy efficiency in Nepal from 0.84% per year, which existed during the period of 2000-2015 to 1.68% per year in 2030.