Nepal's Energy Minister Commits to Expanding Renewable Energy Framework

In a significant move toward enhancing Nepal's renewable energy landscape, Minister for Energy, Water Resources, and Irrigation Kulman Ghising has indicated the government's willingness to abolish the existing 10 percent provision in the national energy mix. This announcement came during a meeting with the Renewable Energy Confederation Nepal (RECON), which represents a diverse array of stakeholders engaged in micro hydropower, biogas, biomass, solar, and wind energy initiatives.

Minister Ghising reiterated his commitment to fostering a sustainable and inclusive renewable energy system, underscoring its critical role in achieving Nepal's ambitious target of net zero emissions by 2045. He acknowledged the necessity of mainstreaming renewable energy within the broader energy development strategy, a step he believes will provide a solid foundation for the country’s future energy needs.

During the discussions, representatives from RECON presented a comprehensive memorandum advocating for the swift implementation of the Renewable Energy and Energy Efficiency Act 2080. They called for enhanced private sector representation within the Energy Regulatory Commission, reflecting a growing demand for stakeholder engagement in shaping energy policies.

The memorandum also proposed several initiatives aimed at promoting renewable energy technologies, including the introduction of net metering, decentralized manufacturing, and the institutionalization of rooftop energy solutions within the national energy policy. Additionally, it recommended scaling up the AAA model for renewable projects and creating employment opportunities for the younger generation at the local level.

Further recommendations encompassed reducing investment risks through an expanded carbon market mechanism, offering tax exemptions and customs concessions, and providing concessional loan guarantees. Integrating micro hydropower projects into the national transmission grid was also highlighted as essential for enhancing energy accessibility.

RECON President Kushal Gurung expressed optimism following the meeting, noting that Minister Ghising appeared receptive to advancing policies that promote employment for women, youth, and marginalized communities. By ensuring these groups have ownership and active roles in the production, transmission, and distribution of energy, the government can foster a more equitable energy landscape, ultimately contributing to a more resilient economy.