Nepal earns Rs. 4.75 billion through carbon trading

Kathmandu, Oct. 29

The Alternative Energy Promotion Centre (AEPC) informed that Nepal has earned Rs. 4.75 billion (US$ 35.27 million) through carbon trading.

The income is made through eight different carbon trading projects operated by the AEPC since 2011 as the country reduced a total of 6 million tonnes of carbon emissions, its Executive Director of Nawaraj Dhakal said at the programme organised to celebrate the 28^th anniversary of the AEPC in the Capital on Tuesday.

The centre has earned US$ 2.87 million from carbon trading in the last Fiscal Year 2023/24.

According to Dhakal, about 6 million tonnes of carbon has been sold through the centre. Last year, it recorded the minimization of carbon emission by 542,000 tonnes.

Likewise, through the promotion of renewable energy technology, 542,866 metric tons of carbon emissions have been reduced and an income of US$ 28.05 million has been generated through carbon trading.

Dhakal mentioned that the amount of carbon trade will increase in the coming years as efforts and effectiveness of reducing carbon emissions are increasing.

"The key physical progress of the last year includes the installation of 1,312 KW mini/micro hydropower plants, 390 KW solar/wind minigrid plants, 8,306 solar home systems, deployment of 26,256 electric cookstoves and 4,508 metallic improved cookstoves," he said. Likewise, there was construction of 3.042 domestic biogas plants, 349 solar photovoltaic pumping schemes for drinking water and irrigation, and 311 institutional solar photovoltaic systems for powering remote healthcare facilities and community schools.

Addressing the anniversary programme, Minister for Energy, Water Resources and Irrigation, Dipak Khadka, said that the centre is playing an important role in Nepal's electrification and new laws are being drafted to further facilitate it so that it could meet the demands of changing time.

"The government has set a target of 100 per cent electrification within one year. In order to achieve this goal, a working group including the Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority and AEPC has made a joint integrated action plan and started its implementation," he said.

Minister Khadka also mentioned that Nepal is trying to make carbon trade and electricity export the basis of prosperity. He informed that although there is an agreement with Bangladesh to export 40 megawatts of electricity, the government has made an action plan to export up to 8,000 megawatts. According to him, the Ministry has been trying to mobilise its subordinate bodies like the NEA and AEPC to achieve the set goals in the energy sector.

Likewise, Kushal Gurung, a member of the AEPC, pointed out the need to prioritise solar energy projects for Nepal's electricity development. He said that the solar energy project is becoming very effective in terms of technology and cost, and it is necessary to change the current share of the energy mix.

Gurung said that according to the energy mix policy, the goal is to achieve 10 per cent share of solar energy, but it is necessary to change it to 30 per cent. He suggested that while the reach of the national transmission of electricity is expanding, small hydroelectric power plants with millions of rupees of investment are facing problems and the government should repair them and create an environment to sell electricity to the NEA.

Meanwhile, through a close cooperation with the Green Climate Fund and local governments, the AEPC has initiated the implementation of the first GCF-funded project 'Mitigating greenhouse gas emissions through modern, efficient and climate-friendly clean cooking solutions.

This project aims to collaborate with local governments and private sector for accelerated deployment of clean cooking solutions and transform residential cooking sector by the installation of 500,000 electric cookstoves, 490,000 tier 3plus improved cookstoves and 10,000 biogas plants in 150 local levels of 22 districts in Tarai region of Nepal in five years period.

According to the AEPC, the project will benefit 1 million households.

Meanwhile, the AEPC has awarded Tara Khola Hydropwer Limited of Baglung district with the Suprabidh Memorial Renewable Energy Award in Small and Micro Hydropower Category. In Solar Energy Category, the award is given to Suryodaya Urja Pvt. Ltd. while in Biomass Energy Category, Jandadevi Nepal Urja Pvt. Ltd. and Dumkibas Poultry Farm Pvt. Ltd., Nawalparasi received the award.

 Published in The Rising Nepal daily on 30 October 2024.