Kathmandu, Jan. 28
Stakeholders have
suggested for innovative financing models to achieve ambitious national clean
energy target of developing projects with 28,500 Megawatts capacity by 2035 and
increase per capita energy consumption to 1500 units.
Speaking at the 'Energy
transition for resilient and low carbon economy summit, 2025' organised by the
Alternative Energy Promotion Centre (AEPC) in Kathmandu on Tuesday, they said
that as a significant portion of the global climate finance is being channeled
to clean and renewable energy, Nepal has an immense opportunity be get
benefitted from it.
Prof. of the Asian
Institute of Technology (AIT) in Thailand, Dr. Shobhakar Dhakal, said that more
than 40 per cent of the global climate finance goes to renewable energy and
Nepal must tap on this opportunity.
"Likewise, investment
and financing, especially from the private sector, is instrumental to promote
and develop the renewable energy projects," he said.
According to Prof.
Dhakal, sales of solar technology, batteries and electronic vehicles has gone
up exponentially, of late. Meanwhile, solar and wind technology have challenged
the traditional energy option as their costs are declining while hydropower is
increasing.
He suggested that in
order to cope with challenges, Nepal should devise integrated long-term
evidence-based energy transition, strengthen institutions and financing, and
ensure legislation and regulatory mechanism.
"Creating far-reaching
policies and facilitating the private sector are highly instrumental in this
drive to achieve the clean energy goals. We must be clear that the 'piece meal
approach' is not enough," said Prof. Dhakal.
However, he stated
that although Nepal's electricity access has reached 98 per cent, more than a
third of the population has low quality energy supply which does not help in
operating industries and even the consumer durables like washing machines.
Roping in private
sector
Prof. Dhakal suggested
roping in the private sector to expand the reach of and access to renewable
energy. "Nepal needs intervention in clean cooking especially electrifying
it, electrifying the transport sector and creating support infrastructure,
modernizing grid with low losses, enhancing energy efficiency, ensuring
environmental sustainability," he said.
Addressing the summit,
Minister for Energy, Water Resources and Irrigation, Dipak Khadka, said that
the country aimed to increase the per capita energy consumption to at least
1500 unit by 2035 so that the domestic consumption would reach 13,500 MW by the
end of the coming decade.
"We aim to attain
zero carbon emission by 2045 although our emission is very low compared to
developed countries and the neighbourhood," he said while expressing
commitment to explore various sectors in the clean energy sector and support
energy transition.
Nepal has a national
target to generate 28,500 MW electricity by 2035 which means it needs to
produce 25,000 MW in the next one decade. For it, reservoir-based projects
would be facilitated, said Minister Khadka.
Renewable energy is
national interest
Dr. Pema Gyamtsho,
Director General of the ICIMOD, said that Nepal is sitting on huge energy
resources but efforts must be scaled up to exploit these resources and let
economy benefit from it.
"When we talk
about renewable energy, we are talking about national economy and national
security," he maintained.
Dr. Gyamtsho suggested
running tram or other convenient public transport facilities, especially in the
Kathmandu valley and other large cities, building on the clean energy prospects.
He also suggested Nepal to make risk assessment in the hydroelectricity sector.
Gauri Singh, Deputy
Director General of the IRENA, Abudhabi in the United Arab Emirates, pledged
her support in the government's effort in renewable energy deployment.
Similarly, Pippa Bird, Development Director
and Deputy Ambassador of the United Kingdom for Nepal, said that transition to
clean and renewable energy would contribute to the savings of foreign currency
reserves which could be up to US$ 14 billion.
According to her, Nepal has a potential to
be a clean energy hub in the region, and it has potential to earn US$ 9 billion
a year through carbon export.
Bird suggested supporting the small and
medium enterprises in the process of energy transition. "For that, we need
stronger policy framework, greater private sector participation and regulatory
facilitation. Remove barriers to the Foreign Direct Investment (FDI), access
climate finance and utilise the energy bonds," she said.
Executive Director of
the AEPC, Nawa Raj Dhakal, said that private sector cooperation is instrumental
in energy transition. "Energy is an important infrastructure for the
long-term and sustainable development. AEPC is collaborating with traditional
as well as new financing models and organisations to attract more development
support to the country," he said.
Guru Prasad Paudel,
Executive Director of the Nepal Rastra Bank, said that there is a capacity gap
in terms of implementing the green taxonomy in the banking sector. However, it
has the potential to reform the banking and financial sector in the medium and
long term, he said.
Challenge to reduce
cost
Dr. Maheshwar Dhakal, Joint Secretary at
the Climate Change Management Division at the Ministry of Forests and
Environment (MoFE), said that reducing the cost of transition and checking
capital flight are the two major challenges in clean energy transition.
"Green and clean energy policies should be internalised at all sectors of
economy, business and society. Only then it can help in sustainable economic
growth," he said.
The summit deliberated upon various themes
of energy transition including the sectoral needs, opportunities and challenges,
investment and climate finance for energy transition, and regulatory framework,
governance and capacity development.
The
summit was held on the occasion of the International Clean Energy Day 2025. The
United Nations had decided to celebrate January 26 as the Clean Energy Day
which is being marked since 2024.
Published in The Rising Nepal daily on 29 January 2025.
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