Kathmandu: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said renewable energy should not remain limited to subsidy-based programmes but should be developed as a foundation of the national economy by linking it with private investment, entrepreneurship, employment generation and increased production.
Addressing the 30th anniversary ceremony of the Alternative Energy Promotion Centre (AEPC), Minister Shrestha emphasized the need to transform the achievements made in renewable energy over the past three decades into economic prosperity and energy security.
He said that achieving the government’s goal of building an energy-based economy requires giving equal priority to the development and utilization of solar energy, micro-hydropower, biogas and biomass, alongside large hydropower projects. According to him, measuring energy security solely in terms of the volume of energy generated is not sufficient. Diversification of energy sources, access for all citizens, reliability of the supply system and energy productivity must also receive equal importance.
“Renewable energy must move beyond being a programme for expanding access and become a foundation for production, entrepreneurship, employment and economic prosperity,” he said.
Minister Shrestha also directed the Alternative Energy Promotion Centre to immediately begin preparations for implementing the government’s proposed concept of ‘LPG-Free Local Levels’. He said the initiative was not merely a programme to find alternatives to cooking fuel but also an effort to promote local economic development and increase energy self-reliance.
For this purpose, he said, planned programmes should be developed by assessing the energy potential, demand, consumption and future requirements of each local level. He also urged the Centre to prepare a clear action plan to link the production and use of solar energy, micro-hydropower, biogas and biomass with agriculture, industry, tourism and the local economy.
Describing the Centre’s 30-year journey as a significant achievement in expanding energy access, transforming the rural economy and promoting clean energy, Minister Shrestha said more than 3.7 million households in remote areas and locations beyond the reach of the national electricity grid had benefited from renewable energy technologies.
He maintained that renewable energy development should no longer be confined to government subsidies and projects. Investments made by the government, development partners and communities in the past must be protected and transformed into productive activities that generate economic returns, he said. For this, private sector investment, innovative technologies, local entrepreneurship and commercial opportunities should be encouraged.
Highlighting that Nepal is highly vulnerable to climate change and that disasters such as floods, landslides and extreme rainfall are affecting energy infrastructure and people’s livelihoods, Minister Shrestha stressed the need to develop decentralized and distributed renewable energy systems. According to him, renewable energy is not only a means of generating clean energy but also an important foundation for disaster preparedness, emergency service operations and recovery.
He also emphasized the need to improve the effective utilization and efficiency of energy alongside increasing production. Policies are needed to prevent generated electricity from going to waste, increase production with less energy and improve energy efficiency across sectors, from households to industries, he said.
Stressing the need for a clear legal framework, effective institutional structures and an investment-friendly environment for the sustainable development of the renewable energy sector, Minister Shrestha presented the Renewable Energy and Energy Efficiency Bill registered in the House of Representatives as an important reform initiative. He said the bill is expected to link renewable energy and energy efficiency with national priorities while further strengthening the mandate, capacity and role of the Alternative Energy Promotion Centre.
Similarly, he described Nepal’s recognition as the first direct access entity from the country by the Green Climate Fund, along with the Centre’s expanded engagement in carbon trading and climate finance, as significant achievements. He said the Centre should now focus on mobilizing international resources, including the Loss and Damage Fund, attracting private investment and developing climate-resilient infrastructure.
Minister Shrestha also highlighted the need to re-establish Nepal’s knowledge, skills and technological experience in the renewable energy sector at the international level. Although Nepal’s renewable energy sector had previously established an international reputation, its recent level of engagement and presence had weakened, he said.
He stressed the need to connect Nepal’s experience with global markets, continue cooperation with development partners and encourage the private sector to invest in the sector, facilitate technology transfer, promote innovation and expand markets.
Jalasarokar