Renewable energy perspective plan of nepal 200-2020 an ... - SNV

(Draft for discussion only, limited circulation and not to be quoted)
RENEWABLE ENERGY PERSPECTIVE
PLAN OF NEPAL, 2000-2020: AN APPROACH
Government Enabled Market and People Based Renewable Energy Development
(GEMP-RED)
Volume 1
Main Report
SUBMITTED TO
ALTERNATIVE ENERGY PROMOTION CENTER
LAUTPUR, NEPAL
SUBMITTED BY
CENTER FOR ENERGY STUDIES
INSTITUTE OF ENGINEERING
LALITPUR, NEPAL
JANUARY 2000

PREFACE
The Renewable Energy Perspective Plan of Nepal. 2000-2020: An Approach (REPPON), is
the outcome of the findings of six months of intensive deskwork. series of workshops
attended by the prominent experts in the respective sectors and the interaction with
distinguished experts, specialists and decision makers. The facts and figures used in the
document are from the secondary sources of information.
The vision envisaged during the preparation of this document is guided by a need to maintain
the supply diversity and promote sustainable energy development geared towards
improvements in quality of life for rura l population by making renewable energy
development an integral part of other rural development activities/projects. This can also be
interpreted as provision of phased transition of traditional rural energy systems towards
modern and clean energy that supports growth, provide employment opportunities, allows
people's and private sector participation and ultimately reduction of absolute rural poverty.
Therefore, decentralization of planning, implementation and commercialization of energy
supply is envisaged to meet development needs of the rural areas. It is also believed that rural
population as well as private sector involved in the renewable energy technology
development, are currently not equipped with required skill, knowledge and resources and
call for government's interventions in the form of enabling programmes for people and
market through institutional, fiscal and technical supports.
This document covers the renewable energy technologies mainly microhydro, biogas, solar
photovoltaic, solar thermal, biomass conversion and limited coverage of wind and
geothermal.
It is hoped that this perspective plan will provide a broad framework for RET development
and has to be reviewed and updated from time to time because of technological developments
and socio-economic transformations in the country. This plan is basically an approach
providing a skeleton for preparation of detail implementation plan for the accelerated
development of renewable energy technology in Nepal. For the given time frame and
resource constraint, the exercise conducted for the overall energy sector planning in the
Perspective Energy Plan 1997-2017. National Planning Commission has been made the basis
of this exercise. Efforts in this study have been geared towards the development and
conceptualization of the framework for the future detail planning for the renewable energy
development in Nepal.
17 January. 2000 Center for Energy Studies

ACKNOWLEDGEMENT
The Center for Energy Studies, Institute of Engineering (CES/IOE) expresses its sincere
gratitude to the Alternative Energy Promotion Center (AEPC), Ministry of Science and
Technology, for entrusting this study, "Renewable Energy Perspective Plan. 2000-2020: An
Approach" and the Biogas Support Programme (BSP) for the funding of the study. CES is
also indebted to the Steering Committee members. Dr. Govind Raj Bhatta. Secretary,
Ministry of Population and Environment. Dr. Jib Raj Pokharel. Dean. Institute of Engineering
and Mr. Mohan Bahadur Karki. Joint Secretary. Ministry of Science and Technology for their
supports and guidance.
Preparation of this report would not have been possible without the intensive work carried out
by the core group members in preparing the documents and inputs from the consultants. CES
is very thankful to the members of the core group and the consultants.
The participants of the various workshops conducted in the course of this study also deserve
appreciation for their active participation and valuable suggestions.
A special thanks goes to Prof. (Dr.) Binayak Bhadra for his continuous support and guidance
during the workshop and report preparation. Last, but not the least. CES expresses its sincere
gratitude to Dr. D. K. Sharma. Institute of Engineering and all the staff of AEPC. IOE and
CES for their help in the preparation of this report.
...... January. 2000 Prof. J. N.
Shrestha
Executive Director
Center for Energy Studies

CONTENT
Page
Preface
i
Acknowledgement
ii
Contents
iii
List of Abbreviations
iv
Committee Members and Study Team
vi
List of Consultants
vii
List of Officials consulted during the Report Preparation
vii
1. Introduction 1
2. National Energy Supply and Demand Situation 3
3. Review of Rural Energy Situation 5
4. Rural Energy Resource s 6
5. Institutional Arrangement: A Review 16
6. Government Plans, Policy and Investments: A Review 22
7. Subsidy Policy Review 29
8. Renewable Energy Development: A Future Outlook 32
9. Renewable Energy Perspective Plan: Vision and Approach 34
10. The Long Term Programme Outline and Investment Projection 43
11. RET Sub-Sectoral Objectives. Policy and Strategy, and Sectoral Programme 45
12. Direction for the Follow-up of REPPON 53
References and Bibliography 54
Annexes
List of Workshop Participants 55

LIST OF ABBREVIATIONS
ACAP : Annapurna Conservation Area Project
ADB/N : Agriculture Development Bank of Nepal
AEPC : Alternative Energy Promotion Center
AEPDF : Alternative Energy Promotion and Development Forum
AEPRO : Action for Food Production
ATF : Agriculture Tool Factory
BEW : Butawal Engineering Works
BSP : Bio-Gas Project
BTTC : Balaju Technical Training Centre
BYS : Balaju Yantra Shala
CEDA : Center for Economic Development and Administration
CES : Center for Energy Studies
CHP : Cogeneration of Heating and Power
CRE : Center for Renewable Energy
CRT : Centre for Rural Technology
CTEVT : Council for Technical Education and Vocational Training
DANIDA : Danish Development Agency
DCS : Development & Consulting Services
DDC : District Development Committee
DHM : Department of Hydrology and Geology
ESAP : Energy Sector Assistance Programme
FAO : Food and Agriculture Organisation
FNCCI : Federation of Nepalese Chamber of Commerce and Industry
(M)GJ : (Million) Giga Joule
GTZ : Deutch Gesell schaft fuer Technische Zusammenarbeit
HH : household
HMG N : His Majesty's Government of Nepal
ICIMOD : International Centre for Integrated Mountain Development
ICS : Improved Cooking Stove
INGO : International Non Governmental Organisations
IOE : Institute of Engineering
ITDG : Intermediate Technology Development Group
KfW : Kreditanstalt fuer Wiederbau
KMI : Kathmandu Metal Industries
kW : Kilowatt
MCT : Main Central Thrust
MHP : Micro Hydropower Plat
MOSAT : Ministry of Science and Technology

NBPG : Nepal Biogas Promotion Group
NEA : Nepal Electricity Authority
NGO : Non Governmental Organization
NPC : National Planning Commission
NSES : Nepal Solar Electricity Society
NTC : Nepal Telecommunications Corporation
PV : Photovoltaic
R & D : Research and Development
RADC : Remote Area Development Committee
RECAST : Research Center for Applied Science and Technology
REDP : Rural Energy Development Programme
RET : Renewable Energy Technologies
RONAST : Royal Nepal Academy of Science and Technology
SELF : Solar Electric Light Fund
SEP : Slurry Extension Programme
\SHS : Solar Home- System
TU : Tribhuvan University
UMN : United Mission to Nepal
UNDP : United Nations Development Programme
USAID : United States Agency for International Development
WDC : Village Development Committee
WECS : Water and Energy Commission Secretariat
WMO : World Meteorological Organization

Steering Committee Members
Committee Members and Study Team
Dr. G. R. Bhatta. Secretary, Ministry of Population and Environment
Mr. M. B. Karki. Joint Secretary. Ministry of Science and Technology
Dr. J. R. Pokharel. Dean. Institute of Engineering. Tribhuvan University
Mr. S. L. Vaidya. Executive Director. AEPC
Core Group Members
Prof. J. N. Shrestha, Director. CES
Mr. S. L. Shrestha
Mr. V. B. Amatya
Mr. R. B. Adhikari
CES Staff Members
Mr. G. R. Pokharel. Lecturer
Administrative Staff members

List of Consultants
Dr. R. D. Joshi
Dr. A. B. Karki and Dr. K. B. Karki
Dr. G. L. Shrestha
Mr. R. B. Adhikari
Dr. J. R. Pokharel
Mr. R. N. Bhattarai
Dr. D. K. Sharma and Prof. J. N. Shrestha
Mr. G. R. Pokharel and Mr. S. Gautam
Mr. M. Ranjit
Microhydro
Biogas
Bio-fuel
Biomass
Solar Passive Building
Solar Thermal
Solar PV
Wind
Geothermal
List of Officials consulted during the Report Preparation
Prof. Dr. P.P. Timilsinha.
Mr. K. M. Singh.
Mrs. Padma Mathema
Mrs. Sharada Bajracharya
Mr. Ramesh P. Nepal
Mrs. Dibya K. Shrestha
Mr. Mukunda Raj Prakash
Mr. Bishnu Dutta Abasthi
Mr. Krishna P. Pokharel
Mr. Arjun B. Singh
Mr. Umesh Nath Sigdei
DOE/TU
REDP/UNDP
NPC
NPC
Ministry of Industry
Ministry of Education
Ministry of Local development
Ministry of Agriculture
Ministry of Forestry and Soil Conservation
Ministry of Health
Center of Renewable Energy

1. INTRODUCTION
Ensuring minimum basic needs lies at the core of the development and basic energy
services are one of such needs apart from health, education and other infrastructure
services. Minimum basic energy services raise two questions - what is minimum and
in what form? Minimum should not mean hand-out to satisfy 'immediate needs. The
lasting solution to indigence of the rural people is to strengthen the self-reliance so
that they not only escape from the present hardship but also do so permanently with
dignity. If this is the case, then providing energy to meet social needs like cooking,
drinking water supply, and street lighting is only a beginning. Energy should also be
made available to create jobs, to generate income and to develop assets as an
insurance against the future insecurities and uncertainties. 'Thus, minimum energy
services should also cater for economic growth opportunities to put rural poor firmly
on the road to recovery from the poverty. With regard to the question on the form of
energy, it should be provided in the form' that meets above social and economic
criteria in a sustainable manner. Sources that are traditionally used such as biomass
for social needs may be adequate while others like electricity and other modern form
of energy are essential to meet economic-growth agenda. Renewable energy in this
context is a logical choice as it meets the environmental criteria and suits socioeconomic
setup that call for expandable and modular small energy system for the
rural economy of the country which is highly dispersed and lack infrastructure. In
addition, it must be realized that renewable energy is a domestic resource, which has
the potential to contribute to or provide complete security of supply.
Historically. Nepal's rural populations have been meeting the energy needs from the
traditional sources like fuelwood and other biomass resources. Uses of modem form
of energy — electricity, kerosene and diesel - are comparatively new and at some
rural areas they are yet to be introduced. Moreover, it is evident that traditional way of
biomass consumption is neither sustainable nor desirable for reasons like
environmental concern and need to improve quality of life. Therefore, there is a need
to substitute as well as supplement the traditional energy supply system by modem
forms in terms of resource and resource tapping technologies. Because of the
country's full dependence on imported fossil fuel, high cost of grid connection and
low level of demand, a decentralized energy supply system becomes natural choice.
Decentralized new and renewable energy systems such as biogas, microhydro, solar
photovoltaic (PV). etc. provide feasible energy supply options in rural areas that are
clean in terms of emission and also meet the concern of social justice.
Renewable energy is virtually uninterruptible and available infinitely because of its
wide spread complimentary technologies fining well into Nepal's need of the
diversified supply. Socioeconomic effects from increased supply of modem energy
such as renewable sources of energy are multifaceted. To enumerate a few of them --
i) it helps to encounter rural de-population or migration to urban areas by creating job
and modem amenities in rural areas, ii) it provides means to improve quality of life by
providing rural electrification, iii) it can also strengthen process of democratization by
making modern communication and information flow easier, and iv) it can also help
urban population by creating job opportunities created by development of industries
related to manufacturing renewable energy.

With an effective RET plans and programmes, further benefits can be realized that
include reduced gestation period and lower costs. Particularly, proper planning in
terms of financing and design will help to secure the financing in time and thereby
reduced cost to the de veloper.
However, left on its own, new and renewable energy can not freely compete with its
competitors like fossil fuels because of market imperfections resulting from national
and global energy system. Therefore, there is a strong necessity to have a set of
strategies and policies that would enable users and suppliers of new and renewable
energy to make use of opportunities available.
In addition, in spite of environmental and socioeconomic benefits renewable energy
also has few inherent issues that must be addressed and kept in mind while
formulating long-term policies for the development of renewable energy. Except for
facilities like large -hydro, renewable energy is not available in concentrated and
centralized form. Intermittency nature of renewable energy often needs some kind of
storage device or a hybrid system to cater for continuous energy supply for some
specific end-uses. Low energy density also makes it necessary to construct large
facilities which increases the cost of the energy system in unit to unit basis.

2. NATIONAL ENERGY SUPPLY AND DEMAND SITUATION
The energy resources of Nepal consist of a combination of traditional and commercial
sources of energy such as hydropower and renewable forms of energy. Petroleum
fuels and coal are imported from other countries. In spite of its large hydropower
potential to the tune of 83.000 MW of which about 40.000 MW is established to be
technically, feasible, so far Nepal has developed only 300 MW of hydropower to date
supplying about 1% of total energy re quirements. In addition, 50 MW diesel plants
cater for peak power requirements. Fuelwood represents 78% of energy consumption,
which is mainly consumed in rural Nepal. Public, community and private forests and
private farms are the major source for fuelwood. The fuelwood resources are
depleting very fast due to over exploitation and lack of proper management. Other
biomass sources, agriculture residue and animal dung, provide for about 10 percent of
energy requirement. Imported petroleum and coal together make about 11 percent of
the total consumption. Exhibit 1 shows share of different form of energy in total
supply. Second part of the exhibit shows the sectoral distribution of the consumption
(WECS. 1999).

Nepal's per capita energy consumption, 0.3 ToE (14.6 GJ 1 ). is one of the lowest in the
world. Per capita commercial energy consumption. 30 kg of oil equivalent, is also
very low compared to other countries in the region (Refer Table 1). The total energyconsumption
of Nepal in the year 1998/99 is estimated to be about 7.6 Million tonnes
of oil equivalent and the annual average growth of energy consumption during" past
10 years has been about 4.6%. However, growth of commercial energy consumption
has been high at about 8.4% per annum.
Table 1: Energy Consumption in the Region
Country
Energy Consumption
(in kToE)
Per Capita
Total Commerc Electricit Total Commerci Electricity
ial y (kgoE) al (kgoE) (kWh)
Bangladesh (1995) - 6.091 610 - (kgoE) 48.6 57.7
China (1995) - 609.650 65.947 - 494.1 632.9
India(1997) - 185.500 27.710 - 190.3 336.7
Nepal (1999)# 7.560 962 89 327.7 41.7 45.7
Pakistan (1997) 45.432* 26.391 3.613 324.3 188.4 305.4
Sri Lanka (1997) 6.584 2.535 362 334.7 128.9 217.9
* In year 1995
Source: Asian Energy News, CEERD, AIT, Bangkok except for Nepal
# WECS. 1999
Per capita consumption are calculated using population data from The Environment
Almanac. 1992. World Resources Institute
Electricity supply is limited to about 15 % of the tota l population (NEA. 1999). The
rural population, which comprises about 90% of the total population have very limited
access to electricity (= 5%) (WECS 1999).
1 1 GJ = 0.02346 ToE = 277.8kWh

3. REVIEW OF RURAL ENERGY SITUATION
About ninety percent of the Nepal's populations live in rural areas and agricultural
sector is the mainstay of the rural population. This sector contributes about 40%
(1998/99) in the real Gross Domestic Products (GDP) and is in decreasing trend.
However, this sector still provides employment to more than 80% of the economically
active population. Industrial and service sectors (including tourism) are next major
contributors in the national economy but their contribution to rural economy is very
small.
Share of the rural areas in total energy consumption of the country is about 87%.
Rural residential sector accounts for 89% of the- total rural energy consumption.
However, if only commercial energy (including new and renewable energy) is
considered, then the rural areas consumes only 30% of total commercial energy
consumption (WECS. 1995).
From energy end-use perspective, residential cooking is a single activity that accounts
for about 65 percents of total energy consumption (refer Exhibit 2). Level of
electrification is very negligible as evident from Exhibit 2 below. Kerosene lamps are
the most common lighting appliance s in rural areas which consumes about 1 percent
of total rural energy consumption. It is also evident from Exhibit 2 that the rural
energy heavily relies upon animate and biomass energy for its energy requirements.

4. RURAL ENERGY RESOURCES
Rural energy resources can be broadly classified into, i) biomass. ii) electricity
through rural electrification, iii) various renewable energies, and iv) imported
petroleum fuels.
1. Biomass
Biomass as a source of energy, mainly consists of fuelwood, agricultural residue and
animal dung. The biomass available for energy purpose on a sustainable basis is
estimated to be about 23 million tonnes in the FY 1991/92 of which fuelwood based
upon accessible forest was 33%, agricultural residue - 53% and animal-dung - 14%
(NPC/PEP 1995). Fuelwood is burnt in traditional stoves of various kinds and
improved or more efficient stoves for cooking and space heating. There is a marked
imbalance of sustainable supply of fuelwood and consumption at present (WECS.
1994). Agricultural residue, although can be converted to briquettes for more efficient
use, is burnt as it is for energy purpose. Alternatively it can be converted to biogas
without loosing nutrients that go to farm. Dung and agricultural residue, both have
other important uses (fertilizer and fodder) which compete with their use as fuel.
2. Rural Electrification (RE)
Rural electrification alone does not spur the economic growth but it is a necessary
adjunct to initiate industrialand other economic activities. The other reasons for rural
electrification in Nepal are to improve the quality of rural life, expand rural
employment opportunities, and reduce deforestation. Electricity has also been seen as
a basic need for rural population. Although hydrological and topographical conditions
provide Nepal with an immense potential to develop hydropower. the extent of rural
electrification has been very small. It is estimated that out of 15% of the country's
population having access to the electricity only about 5% is in rural areas.
Nepal's rural electrification can broadly be classified into NEA's grid based rural
electrification and isolated rural electrification. Isolated rural electrification can be
further classified into NEA's isolated generation through small hydro and other
facilities and the privately owned generation facilities like small and micro hydro, and
other renewable energy (solar, wind, etc.) based electrification.
At present, both public and private sectors are involved in RE. The Nepal Electricity
Authority (NEA) is responsible for all aspects of public rural electrification. Under
NEA, a separate Directorate for Rural Electrification Programme with Small
hydropower Department (SHPD) under it is responsible for RE. Numbers of nongovernmental
organization (NGOs) are engaged in rural electrification in Nepal, as
are various private firms. Under current government regulations, no license is
required to operate hydroelectric projects with a capacity of up to 1000 kW (Water
Resources Act. 1992).
In the Fifth and Sixth pla ns the stated objectives of rural electrification focused on
two goals: to contribute to the development of rural industry and agriculture and to
expand uses in the residential sector. The Seventh Plan dealt more extensively and
stated goals for both small hydro and grid extensions to "develop and expand
agriculture development and cottage and small scale industries." Irrigation potential
from ground water was to be expanded with increased electricity access. Eighth Plan

states that rural electrification programme will be carried out through the extension of
the national grid as far as practical. It also states the formulation of a programme to
support rural electrification in places as identified in Ten Year Rural Electrification
Study. The Ninth Plan also emphasizes on need to continue the rural electrification as
a driving wheel of rural development.
Rural electrification (RE), if properly planned and implemented: can be an important
component of a comprehensive, planned development strategy such as Agriculture
Perspective Plan. It will also assist the implementation of rural development
programmes by meeting energy needs for the development activities and at the same
time creating employment and economic activities in rural areas. It is. therefore, clear
why the new and renewable energy supply options, must be considered prior to grid
extension.
3. Commercial Energy
Commercial energy met about 12 percent of all energy requirement of which
petroleum fuels met 9 percent and coal and electricity met 2 and 1 percent,
respectively in the year 1998/99 (WECS, 1999}. Petroleum fuels and coal are met
entirely by imports. About 90% of total electricity was supplied by hydropower and
remaining 10% by thermal power.
4. Renewable Energy Technology (RET)
The new and renewable energy is defined as non exhaustive natural resources like
water, biomass, solar, wind, geothermal. etc. and technologies that make use of these
resources like biogas, micro hydro, solar PV, solar thermal, wind turbines, briquettes,
improved cooking stoves (ICS). liquid bio-fuel, gasifier, cogeneration etc.
4.1 Micro hydro
Traditional water wheel has been in use in rural Nepal for centuries. It is estimated
that there are over 25.000 such units in operation meeting the agro-processing energy
needs of the scattered villages in the hilly and mountainous regions. Compared to
other countries in the region. Nepal has made significant progress in developing and
utilizing its water resources for producing power particularly in the micro range (up to
100 k\V) over the past three decades.
A good micro hydro technology manufacturing base has already been developed in
the country. The development and promotion of micro hydro are being conducted
mainly in the private sector. At present, there are 11 active manufacturers of turbines
and accessories, capable to manufacture turbine equipment up to 300 kW. located
mainly in Kathmandu and Butwal. Some of them also have built-up capability to
fabricate turbine casing, penstock pipes, electromechanical equipment and other
accessories for hydropower plants up to 15 MW capacity. The total manufacturing
capacity of all the manufacturers in the micro-range is more than 2 MW per year. The
factors that have contributed to bring the micro hydro development programme to the
present stage are their relatively low capital investment requirements, short
construction periods, existence of large micro hydro potential, indigenous technology
manufacturing capability of Nepali manufacturers, simple operation, government
incentives in the form of loan and subsidy and involvement and interest of many
international agencies.

De-licensing of plants up to 100 kW capacity by government in 1984 helped in its
development in the private sector and the recent de -licensing of plants up to 1000 kW
has further encouraged the development. The government has been providing loans to
potential entrepreneurs and a subsidy of 50-75% on the electrical component of the
add-on or stand-alone electrification schemes through the Agriculture Development
Bank of Nepal.
Currently, there are over 941 micro hydro installations in the private sector scattered
in about 59 of the 75 districts of the country. The total installed capacity of these
installations is about 4600 kW. The installed capacity of majority of micro hydro
range from 1 kW (Peltric sets) to 50 kW generating electricity for domestic-lighting
and limited industrial application. In addition, there are more units that are used
mainly for agro-processing purposes of which about 20% also have add-on electricity
generation for domestic lighting. The investment cost of micro hydro plants is very
site-specific with the installation cost ranging from NRs. 100 to 200 thousand per kW.
His Majesty's Government of Nepal provides 50 percent capital subsidy on electrical
component of microhydro in hilly areas. The subsidy is 75 percent in remote areas.
Similarly, peltric sets (a integrated turbine-generator unit) receives 50 and 75 percent
of total cost that may include up to 100 meters of polythene pipes to be used as
penstock in hilly and remote areas, respectively. The average operating and
maintenance cost of micro hydro plant varies largely depending on the type of
ownership (individual, group or community), location of the site, end-uses, and type
of equipment used. Various studies show that the operating and maintenance cost
varies from as low as 2-3% to as high as 50-60% of the total project cost.
Low load factor, no productive end-use, technical backstop. lack of entrepreneurship
in owners, high transportation cost, no standardization of products etc. are some of the
harriers of this technology.
4.2 Biomass Energy Conversion Technologies
The following biomass technologies are used in Nepal for conversion of biomass
energy into more efficient and convenient energy forms: biogas. briquettes, gasifier,
ICS. (regeneration, and liquid bio-fuel.
4.2.1 Biogas
The history of biogas development in Nepal began with the fabrication and
installation of a prototype unit at Godavari in 1955. It was made using an old 200-litre
oil drum and a gasholder made of mild steel sheet. No real interest in biogas was
forthcoming until the fiscal year 1975/76, which was designated as the "Agriculture
Year" to boost agricultural production. A special plan for biogas promotion was
de veloped and various contractors built 199 plants with interest -free loans made
available by ADB/N.
In 1977. the Gobar Gas Tatha Krishi Yantra Vikas Ltd. (Biogas and Agricultural
Equipment Development Company) popularly known as the Gobar Gas Company
(GGC) was established for the promotion of biogas technology as a joint venture
investment of the ADB/N. the Development and Consulting Services (DCS) of the
United Mission to Nepal and the Fuel Corporation of Nepal (now merged with
Timber Corporation of Nepal). The Biogas Company was backed by a Research and
Fabrication Unit in Butwal and sales and services centers at strategic locations in the

Terai and inner Terai regions. Due to the success of biogas development programmes
and availability of government subsidy as well as the interest and involvement of a
number of INGOs and donor agencies, private biogas companies started coming up
after 1990. Biogas Support Programme (BSP) has been set up as a joint venture
between ADB/N, recognized biogas companies and the Netherlands Development
Organization (SNV-Nepal) to support the biogas programme through subsidy, quality
control, training, etc. A third phase of the programme has been proposed for the time
period 1996/97-2000/2002 with the target of installing 100.000 biogas plants. It has
been estimated that a subsidy of NRs. 750 million and a loan investment of NRs. 1080
million will be required to achieve this target. As a result many new biogas companies
have been established whose number at present exceeds 50.
At present the number of total biogas plants of different sizes has exceeded 60,000
units and has met the target of the Eighth Plan (1992-97). The biogas installation and
subsidy programme is currently under direct monitoring of Biogas Support
Programme (BSP), which is coordinated by the Alternative Energy Promotion Center.
Independent of the size of the plant, the programme provides subsidy to biogas plant
installation at the rate of NRs. 6000 to 7000 per plant in Terai. NRs. 9000 to 10.000 in
the accessible hills and NRs. 11.000 to 12.000 per plant in remote hills not connected
by the roads.
In spite of the relatively successful implementation of biogas promotion and
development programmes, there are still a number of technical, financial and
institutional problems in the effective dissemination of the technology. Reduction in
gas production during winter, high initial cost, lengthy procedures in obtaining
information, loans and subsidy, lack of follow-up actions due to shortage of trained
technicians for mainte nance and repair of the plants are some of the problems.
4.2.2 Briquettes
It is estimated that about 150.000 metric tons of rice husk is produced annually in the
Terai. The use ot rice husk has been on the increase for industrial heating and process
heating purposes. To reduce transportation and handling cost and to improve the
heating value, rice husk is also used to make briquettes. These can be used for space
heating and cooking activities in domestic and commercial sectors. They .are also
used by some industries for process heating purposes. According to various studies,
the annual potential of briquette manufacturing is about 95.000 metric tons in the
Terai region of Nepal alone. Due to rising cost of rice husk and electricity, the
financial viabilit y of such briquetting plants is now questionable.
Another form of briquette is bee -hive briquette made out of biomass char, such as
wood, leaves, twigs, branches and any other kinds of agricultural and forestry
residues. Biomass is converted into char by carbonizing in a charring drum, which is a
simple drum fitted with a conical shaped grate, a chimney and a water seal
arrangement. The biomass char is ground into powder and mixed with 20 to 30
percent by its weight bentonite clay by adding the required amount of water. The
mixture is then filled compactly into the mould and made into briquettes. They are
then dried in the sun for two or more days; and after this they are ready for use in
briquette stoves.
The bee-hive briquette is very easy to ignite; and it does not produce much smoke in
the stove or kitchen. This technology is simple, does not require any special skills and

even a rural layman can be trained to produce briquettes at household levels. In fact
this technology could be very useful and appropriate in case of rural and remote
Nepal.
Some of the problems faced in the promotion of briquetting technology in Nepal are
high cost of collection of raw materials, wear and tear of screw and barrel, localized
environmental impacts due to emission of CO, CO 2, SO x , air pollution during
production, lack of government commitment to technology, etc. In spite of these
problems, the manufacturers claim that many of these problems can be solved and the
use of briquettes is more economic and efficient than the uses of rice husk directly.
4.2.3 Gasifier
Although gasification is a promising technology that has been tried in India and other
developing counties with a mixed result. In spite of technology being promising, the
extent of work that has been carried out in this field in Nepal is limited to laboratory
experiments at the Research Centre for Applied Science and Technology (RECAST)
in early eighties.
Most recently, a renewed interest in biomass gasification has been demonstrated by a
pilot project under UNDP -Nepal's Rural Energy Development Programme with a 5
horse power biomass gasification plant. The technical details and result of the pilot
project are not available yet. However, scientists and technologists working in the
pilot project revealed that technology has potential in Nepal and can prove to be a
viable energy alternative for rural areas if it is disseminated in an integrated package
such as agro-processing with proper arrangement for financing and training.
The concept that technologies like charcoal making and gasification lead to mass
forest deforestation has played negative role in the development and dissemination
these technologies. However, with proper forest management, gasifier technology
may be promoted as modem biomass technology that would enhance efficiency of
biomass use.
4.2.4 Improved Cook Stoves (ICS)
Appreciating the usefulness of Improved Cook Stoves for rural development, various
organizations have been promoting this simple and cheap technology for many years.
Since 1980. ICS programme began in earnest. HMG/N had pla yed an important role
in promoting and disseminating it. The only large scale ICS programme earned out in
Nepal was through the Community Forestry Development Division (CFDD), which
was suspended in 1991.
Initially, the ceramic-insert-type stove was prefabricated and distributed to the users
free of cost. The ceramic insert-type design was not suitable for many rural
applications and because it was freely distributed to the users, its value was not
appreciated. About, 44.000 insert type stoves were distributed of which 35% are
believed to be in operation (NPC. 1998). At present, the ceramic insert-type design
has been abandoned in favor of stoves built on site using locally available materials
and skills. A number of NGOs and INGOs have included ICS as an integral part of
their overall development objectives and programmes. NGOs and INGOs working in
the areas of literacy, health and sanitation, woman's development, energy and
environment have been promoting and disseminating ICSs. Stressing user motivation

and education, these organizations are beginning to show success in their efforts to
introduce improved stoves on a sustainable basis. During the last 5 years about 52,300
mud built stoves have been distributed, of which more than 90% is believed to be in
operation. Some of the problems in ICS dissemination are their inflexibility in use for
diverse purposes, people's social and religious beliefs, and absence of strong
promotional programmes by the government. In addition lack of education and
training of the users, availability of and accessibility to cost free biomass resources.
lack of involvement of women in ICS programmes and lack of financial and
institutional support to local NGOs and research institutions are the main hurdles in
the promotion of this technology. In spite of these problems, the ICS development and
promotion programme has been a relatively successful as a new and renewable energy
promotion programme in Nepal and has a very high potential for reducing fuelwood
consumption because of its simple and familiar technology.
4.2.5 Cogeneration
Cogeneration is the simultaneous production of electricity and heat, both of which are
used. Cogeneration offers the chance for localized power generation, close to the
point of use that can form a bridge to an energy economy with a much higher;
contribution from renewable fuel sources.
At present. Nepal has no experience in biomass cogeneration technology; whereas in
neighboring India this technology is picking up fast. Given proper and adequate fiscal
incentives, electric power generation in sugar mills of Nepal by cogeneration method
using molasses/bagasse is a possible option.
4.2.6 Liquid Biofuel
The liquid bio-fuel energy, traditionally known as' vegetable oil energy or plant oil
energy, includes liquid fixed plant oil energy developed from the resins of different
plant parts, seeds and nuts of trees, shrubs and cultivated plants. In most of the
developed countries, liquid bio -fuel energy is developed from the cultivated energy
crops like rape -seed oil and similar oilseed crops. In industrialized countries the use of
liquid bio-fuel as bio-diesel is increasing significantly as a potential solution to some
of the air pollution problems of urban areas and to fight global climate change. In the
Nepalese context, bio-fuel from the seeds and nuts is a renewable and improved
alternative fuel which reportedly can be used after simple-blending with the kerosene
oil (80 to % % plant oil : 10 to 20 % kerosene oil) in cooking stoves. Liquid bio-fuel
production could be income-generating activities in rural areas to alleviate poverty.
Moreover, rural health is improved, and bio -diversity will be conserved due to use of
bio-fuel.
Liquid bio-fuel technology, thus, warrants further research and development.
4.3 Solar Energy
Although much of Nepal lies on the "Good" solar belt, a detailed radiation mapping is
not available. On an average, there is more than 6.5 hours of sunshine per day in
Nepal. As per World Meteorological Organization, the average insulation for Nepal
lies between 4-5 kWh per square meter per day. Traditionally people are using solar
energy without any technological intervention for domestic as well as industrial

proposes. With the growing energy needs more efficient devices are being developed
to utilize solar energy. There are mainly two methods of using solar energy: One is
Sola r. Thermal and the other is Solar Photovoltaic.
4.3.1 Solar Thermal Energy
In this methods heat from solar energy is used directly by using efficient devices.
There are also different technologies to use solar thermal energy.
• Solar water heater
• Solar dryer
• Solar cooker
• Solar passive building
a) Solar Water Heater
The history of the production of Solar Water Heater dates back to 1968 when first
commercial solar water heater was produced. In 1974, the plumbing division of
Balaju Yantra Shala started limited production of Solar Water Heaters.
It is estimated that there are about 120 manufacturers of SWH in Nepal. However, the
number of manufacturers alone may give a misleading information as none of the
manufacturer mass-produces the SWHs, in an assembly line. Each SWH is
individually produced. A significant use of solar energy has been in water heating in
households as well as in hospitals, schools, hotels and lodges. Solar water heaters are
produced and marketed commercially. Altogether, about 17.265 solar water heaters
were estimated to be installed in 1997-'98 (WECS. 1998).
The SWHs produced in Nepal are suitable for use in hilly and Terai region of Nepal.
Although there is a large potential for use of SWHs in northern highlands, the locally
manufactured SWHs. available in the local market are not suitable for regions where
temperature reaches sub zero.
The-most difficult aspect of the locally produced SWHs is the lack of technical
information in terms of the standard parameters and the performance curves. One
information, which is generally given to the buyers, is the maximum temperature.
However, the maximum temperature figure alone, in the absence of other pertinent
data such as water discharge rate. -installation angles, etc. do not "tell" any substantive
story about the product to the prospective user of SWH.
b) Solar Dryer
Solar dryers are used for drying agriculture products with the systematic use of solar
thermal energy. Recently efforts have been made to develop solar dryers for largescale
crop drying. Major application is being developed primarily for drying of herbs
and vegetables. There is no standard capacity range. There is no large-scale domestic
use in Nepal due to lack of awareness and financial incentives. Different
organizations have developed but no known commercial manufacturer specializes in
dryers. It has not yet received wide commercial acceptance from likely users. If
systematically designed and awareness is created for the industrial use by adopting
favorable policies, a great amount of energy could be saved and income generation

activities can be created in the rural areas.
With effective R&D efforts and proper dissemination approaches, solar dryers do
have high potential to replace fuelwood and kerosene especially in rural households.
c) Solar Cooker
Another use of solar energy is in the field of cooking. This technology is being
promoted in Nepal but not accepted widely due to traditional eating and cooking
habits and lack of information dissemination. Attempts have also been made to
de velop solar cookers by few NGOs, private organizations/workshops and research
institutions. With the creation of awareness and some incentives oriented policies this
technology could be used as a secondary source of energy to save fuel wood and
kerosene consumption in cooking. This technology also can generate employment and
reduce health hazards from kitchen smoke for the women.
d) Solar Passive Building
Properly designed passive solar buildings with south facings help to keep the rooms
relatively warm, which greatly reduces the daily precious consumption of firewood in
mountainous areas. With small additional devices this design could also be used for
cooling purposes in warmer areas like Terai. Systematically designed buildings with
passive solar technology do not exist in Nepal. However, general mass would benefit,
if buildings arc built at least one each in different physiographic regions as
demonstration by creating awareness of such designs. Construction of such solar
passive buildings in the tourist areas of Nepal in mountain will definite) help to
promote sustainable mountain tourism.
4.3.2 Solar Photovoltaic
Another important area of solar energy use has been electricity generation from solar
photovoltaic (PV) system. Solar PV system has been extensively used in
telecommunications. The present estimate is that there is about 1100 kW peak PV
systems is in use in different sectors in different parts of the country. Similarly,
technical and economic viability of solar PV systems in water pumping for drip
irrigation and drinking water is also being experimented in Nepal. The Nepal
Electricity Authority has installed centralized PV power systems of 30-50 kW
capacity in remote pans of the country like Simikot of Humla, Gamgadi of Mugu and
Tatopani for rural electrification purposes. However, the performances of these PV
systems have not been very satisfactory mainly due to their overly elaborate and
expensive centralized design and lack of proper maintenance. Lately, private
entrepreneurs and NGOs have been engaging in promotion and dissemination of solar
PV home lighting systems. Private companies have started assembling, installing,
promoting and providing services to household and community size PV system
packages on commercial basis. With the development of proper institutional set up.
effective dissemination approach and involvement of the government and donor
agencies; solar PV technology can play and is playing a significant role in rural
electrification within a short span of time.

At the moment, the involvement and commitment of the government is minimal in
terms of infrastructure support in the solar PV development in Nepal. Government has
been providing a subsidy of 50 % and 75% on, solar PV home system and PV
irrigation system, respectively, through the ADB/N. It is also learnt that the subsidy
for irrigation has not been released so far. The global technological advancement in
solar PV resulting in reduced cost of solar panel, solar potentiality of the country and
the absence of other new and renewable sources of energy provide very conducive
environment for the promotion of solar energy in Nepal. Solar energy could make
significant contribution in meeting the rural as welt as urban energy needs for
decentralized rural electrification, communication/information, preservation and
storage of vital medicines in rural clinics and health posts and solar PV based drip
irrigation. Similarly, PV integrated building designs, which is gaining popularity in
developed countries, could be promoted in urban areas to augment/substitute grid
electricity.
Some of the problems in this sector are related to lack of standardization of products,
high initial cost, lack of sufficient funds for subsidy. lengthy procedures of acquiring
loans, and lack of trained human resource in remote areas.
4.4 Wind Power
A potential of about 200 VIW wind power in the 12 km corridor from Kagbeni to
Chhusang generating about 500 GWh electricity annually has been identified so far in
Nepal (Dangrid. 1992). Similarly, another study undertaken in Solukhumbu district in
19 C )7 reveals that the average wind speed in the Khumbu region is 5m/z and is
suitable for electricity generation. The potential, however, was not estimated. A
preliminary survey of Department of Meteorology and Hydrology indicates that wind
energy can be harvested in Nepal for generating electricity in the hills and pumping
water in the Terai during dry season for irrigation.
The average installation cost per k\V for wind energy has come down in the past two
decades. The average cost in Europe is about US S 1000 per installed kilowatt, and
US$ 800 in India. The ex-factor y price for Chinese made wind turbines generators
(WTG) is about US S 890 per kilowatt. With proper site selection. Nepal could also
economically harness its wind potential.
Nepal's efforts to harness wind energy have resulted in series of failures. The first
recorded failure to exploit wind energy in Nepal was made with the USAID support in
the Agriculture Farm in Rampur, Chitwan in the early seventies. Similarly, an
individual's effort to install a wind turbine for pumping water in Ramechap district in
the late seventies also failed. RECAST bought two wind pumps from India for
demonstration of this technology. Though both of these turbines functioned for
sometime, the efforts fizzled out in the absence of continuity. Recently. Krishna Grill
and Engineering Works (KGEW) in Biratnagar has fabricated and installed three wind
pumps in the eastern Terai also met with similar destiny.
The most significant and systematic effort to harness wind energy in Nepal was
undertaken by Nepal Electricity Authority in 1989. Two 10 kilowatts (kW) WTG
were installed and operated in Kagbeni of Mustang district. The electricity generated
from WTG was distributed to 60 houses in the village. These turbines broke down
after two months of operation for technical reasons resulted from incomplete wind
data.

More recently, an entrepreneur has installed a 900-watt wind solar hybrid system in a
hotel resort in Kavre district.
The lesson learnt from these failures is that a proper wind data and analysis is
.necessary- before a wind power project is undertaken. It is also important to ensure
that the equipment selected has credible past performance in the past under similar
circumstance. In addition, appropriate institutional arrangement is also required to
study, design and implement wind power projects, and provide maintenance services,
information dissemination, etc.
4.5 Geothermal
Geothermal energy, in the broadest sense, is the natural heat of the earth. Immense
amounts of thermal energy are generated and stored in the earth's core, mantle and
crust. At the base of the continental crust, temperatures are believed to range from
200°C to 1000°C. When the meteoric water passes into the crust of earth and comes
in contact with hot fluid/rock, it heats up and comes out as thermal spring.
Geothermal waters are broadly classified as high temperature (above 160°C) and low
temperature (20°C-140°C) waters. Electricity generation involves the use of high,
temperature geothermal water above 150 C while the low temperature water has been
used for a number of economically productive activities, e.g. hatching of fish, fish
fanning, swimming pools, biodegradation. fermentation, soil warming, mushroom
growing, animal husbandry, greenhouses, irrigation, space heating, drying of stock
fish, vegetables, and various farm products.
Geothermal energy has been tapped for large scale district heating schemes for over
60 years and producing electricity on the scale of hundreds of MW for over 30 years
in other pails of the world. At present, more than 6000 MW electricity is being
generated from geothermal energy in more than 21 countries and direct utilization of
geothermal water is known in about 40 countries.
Efforts should be geared to lap geothermal energy as another important renewable
energy resource in Nepal. This resource is not new in Nepal as many hot water
springs are already in religious and tourist use.
Preliminary works to establish geothermal potential was started in the early 1980s in a
limited scale and has identified about thirty-three geothermal springs in different parts
of Nepal. The total potential of geothermal energy resource is not yet known in Nepal.
4.6 New and Modern form of RET
Apart from above-mentioned RETs, many new and modem forms of RETs are
emerging. Most of them are in the stage of research and development although
technology like dendro-thermal are almost ready for wide scale dissemination. Others
like Hydrogen Energy. Fuel Cell etc. are emerging as feasible technologies. Nepal
could also benefit from these new and modem RETs in future if they become
financially and technically viable.

5. INSTITUTIONAL ARRANGEMENT: A REVIEW
1. Introduction
Most of the rural people do not have access to full range of possible options to use
energy due to a lack of institutional arrangements in addition to technical reasons. The
• access to RET is dependent of existing institutions that provides technologies,
financing, related information and other socio-cultural factors. In spite of possibility
of access to various energy options, lack of one or more of the necessary institutions
may result into non-access to the energy itself. Keeping aside the socio-cultural
parameters, it is. therefore, imperative that the role of institutions is immense for
converting the potential access to energy into the actual access. Due to the preva iling
rural characteristics in terms of technologies and institutional setup, institutions can be
classified broadly into:
1. Suppliers of technology, technical supports and information
2. Financing and management institution such as debt financing, management
supports in the form of training, etc.
Considering the players in the rural energy scenario, rural energy activity usually have
an investor (e.g.. NEA. microhydro entrepreneur), energy service user (often the
community as in microhydro and investor as in biogas. SHS and ICS), technology
supplier (private manufacturer), technical advisory service providers (e.g. motivators.
N'GOs, local line agencies) and financing agency (e.g. ADB-'N). Barring large utility
like NEA, local entrepreneurs and also end users ge nerally lack technical skill, and
have no information and capability to cope with technical intricacies. In order to
improve financial viability and to ensure smooth technical operation, technical
training to operators and. or entrepreneur is important. Equally important is the
training for the development of management skill for doing the job in a business-like
manner rather than a household affair.
2. Technical Institutions
The role of the technical institutions is related basically to providing ne cessary
information, research and development, technical supports and training programmes
besides supplying necessary hardware.
2.1 Training
Trade schools such as Butwal Technical School and Balaju Technical Center have
contributed in the Held of Microhydro by producing a cadre of lower level
technicians. After the establishment of the Council for Technical Education and
Vocational Training (CTEVT), it has expanded its activity through the establishment
of regional training schools and supporting private technical schools in the field of
health, agriculture, engineering and other trades. Institute of Engineering (IOE) of
Tribhuvan University is involved in developing a cadre of middle and higher level
(graduate) technicians in the different field of engineering such as civil engineering,
electrical engineering, mechanical engineering, architecture, etc. Similarly , Institute
of Agriculture and Animal Science (IAAS) and Institute of Forestry (IOF) are
involved in producing the middle and higher level technicians in the field of
Agriculture and Forestry respectively. Currently, these institutes do not have RET

component in their training curriculum. The shortage of trained technicians (different
levels) has been a major bottleneck in research, development and dissemination of
RETs.
Private sector is playing a key role in training the end users and promoters. Regarding
Microhydro, the manufacturers themselves train the operator during installation of the
' plant. BSP is organizing the regular training to the masons on biogas plant
construction and biogas companies are organizing the orientation to the end users on 0
& M of plant and utilization of slurry. NGOs and INGOs are also engaged in
organizing regular training to the ICS technicians, ghatta technicians, etc. ADB/N
used to organize regular training for microhydro operators, ICS technicians, financial
and other management aspects through its Appropriate Technology Unit. Since the
closure of the unit such training are imparted by private. NGO and INGO in a limited
scale.
2.2 Technical Backstopping
Technical backstopping is a critical area upon which the successful dissemination of
RETs depends. The success of biogas dissemination programme has largely been due
to strong technical backstopping through biogas companies in addition to other
positive forces like subsidy and effective monitoring by BSP. Very few ICSs installed
during Community Forestry Development Programme and PCRW programme are
currently in use because of lack of continuous backstopping. Similar ly, microhydro
dissemination in Dhading district is experiencing technical problems due to lack of
appropriate backstop practices and facilities. Backstopping is even more critical in the
technology dissemination in the remote rural areas as the communication and
transport takes longer time.
2.3 End Use Promotion
Regarding the end-use promotion of RETs. it has been realized that concerned
go\eminent institutions are out of the picture At present what ever the end-use
promotion activities exist in RETs. is conducted by private sector and NGOs. But it
lacks continuity and depended upon fund availability and profitability to NGOs and
private sector.
2.4 Research and Development (R&D)
There are several institutions established for R&D in Nepal such as Research Center
for Applied Science and Technology (RECAST). Royal Nepal Academy for Science
and Technology (RONAST). Nepal Agricultural Research Council (NARC) etc.
RECAST has been active in a limited way during the eighties through the adaptive
researches on the micro hydro. ICS. solar thermal technologies. Because of lack of
proper incentives, human resource development, recognition of the scientist and fund
for research, these institutions have been ineffective to play an active and sustained
role in R&D on RETs. The-researches in RETs in Nepal need to focus on adaptive
technologies from abroad and to improve the traditional technologies. The students of
IOE. IAAS. IOF etc. can be involved in R & D of RETs in Nepal. There in also a lack
of proper linkage between research and extension in the field of RETs.

3. Financial Institutions
According to rural credit survey conducted by the Nepal Rastra Bank only about 25
percent of the credit need is met by institutional sources (Nepal Rastra Bank. 1994).
Financing rural energy programmes need to be looked at from two aspects – access to
financial services and sustainability of services .in the long run. Financial
sustainability, on one hand can be achieved by financing institutions by limiting their
services to less risky project and location but this means poorer access in rural areas
and hence does not address the social equity aspect of the development. The trade-off
between these two is, therefore, very delicate and needs proper policy guideline and
assistance. Access can be improved by properly designed subsidy programmes and
other fiscal incentives. Biogas Programme in Nepal can be considered as one of such
example. The need of intermediating activities to improve accessibility is key to
successful implementation of rural energy programme. Such intermediation role can
be played by extension units of development banks. NGOs. etc. The role of
Agricultural Development Bank of Nepal in the past in rural energy programme does
demonstrate some characteristics of intermediation but due to high cost of
intermediation the bank slowly withdrew its activities in this regard.
Financial institutes (bank and non-bank), private sectors specifically manufacturers
and NGOs have been playing a role of financial intermediaries of various forms and
scale. Sources of financing for rural energy investments in Nepal demonstrate a very
wide range of sources. They are international donors, government subsidy, national
financial markets and/or local rural markets in the form of debt, equity or grants.
3.1 Agriculture Development Bank, Nepal
Among the financing institutions, the Agricultural Development Bank Nepal (ADB-
N) is the main development finance institute which played an active role in rural
energy programme. It is a semi-autonomous agency with a network of about 700
offices covering 75 districts in Nepal. Most notable ones in rural energy are micro
hydro and biogas. It has also started to finance the stand-alone solar photovoltaic
home system for which government started to provide subsidy on the cost of system
of 50 percent or Rs. 15.000 which ever is less. Often, the ADB/N also acts as liaison
between technology users and manufacturers by involving itself in technology
promotion and developing marketing channels. The ADB/N is one of the major
promoters and shareholders in setting up the Gobar Gas Company. The ADB/N also
financed five solar PV sets for running water pumps with a total capacity of 7.6 kW.
The ADB/N's objective behind supporting the rural energy technology is to see the
rural economy grow.
In general, the ADB/N requires borrowers to provide collateral as security. However,
for smaller loans, it has been implementing 'Small Farmers Development Programme
(SFDP)' whereby it provides loans for activities identified by groups and their
members on a group guarantee basis. This programme is implemented through its
network of 422 out of about 700 offices covering 75 districts. The SFDP programme
has been, recently, discontinued and replaced by various forms of micro-financing
programme by the ADB/N and other commercial banks using cooperative and NGO
mechanism.

3.2 Other Commercial Banks
Local commercial banks have also started to act as financing intermediaries for the
development of rural alternative energy technologies by participating in BSP. These
banks also finance diesel mills in rural areas. Under the priority sector-lending
programme launched by the Nepal Rastra Bank, commercial banks have to finance
12% of their total loan portfolios in agriculture and rural energy sector. Due to lack of
expertise and high operating costs only the Nepal Bank Limited and the Rastriya
Banijya Bank have started financing alternate energy mainly biogas under the BSP
since 1995/96. Field offices of the Nepal Bank Limited and the Rastriya Banijya Bank
have been authorized to finance biogas programme. Other joint venture banks
generally do not fulfill the requirement and prefer to be penalized by the Nepal Rastra
Bank.
3.3 Non Government Organization
Various NGOs have been engaged in the promotion, development and dissemination
of rural energy technologies. There are ever-increasing number of NGOs registered
with the Social Welfare Council. So far the Nepal Rastra Bank has permitted twetyfour
NGOs to carry out limited banking activities. NGO s can be encouraged and
assisted to explore financing options with their on-going savings mobilization and
credit schemes. The Center for Self-help Development (CSD) and Nirdhan are
noteworthy NGOs making available funds for RETs projects in this regard. Similarly
the Center for Renewable Energy (CRE) mobilized donor assistance (Solar Electric
Lighting Fund USA) to implement its solar PV home system in Pulimarang, Tanahu
District in western Nepal. However, there is no specific legislation, which facilitates
NGOs to act as financial intermediaries.
3.4 Cooperative Societies
The Cooperative Societies and the Regional Development Banks can be mobilized for
financing RETs sector.
There are about 300 cooperative societies involved in saving and credit activities.
Nineteen cooperative societies have been permitted to perform limited banking
transactions. Since 1993/94, the ADB/N has handed over the management of 31
SFDPs to the group members by converting them to cooperative societies. Wholesale
lending (loan fund) is made available to these societies by the ADB N for re-lending
to their members to minimize the operation cost.
3.5 Micro Financing Institution
……………….
………………
3.6 Donor Agencies
Apart from domestic sources, rural energy programme has received substantial
assistance both from bilateral and multilateral donor agencies in the form of grant-aid
and soft loan. For micro hydro grant assistance was received from the US AID. the

SNV/Nepal. The CSD is providing assistance to install micro hydro projects on
turnkey basis in Jumla district under community based economic development
projects sponsored by the CECI.
The UNCDF and the SNV/N have provided assistance for the promotion of biogas in
the form of subsidy fund and training activities. The KfW has provided finance for
third phase of BSP.
Moreover, the ADB/Manila financed micro credit for Rural Women Project through
Women Development Division which could play a major role in financing rural
energy projects for women's credit group.
The UNICEF. Nepal Australia Forestry Project. Save the Children US. CARE/Nepal.
UMN, FAO, GTZ, SDC, UNDP, IFAD are among the major donor agencies involved
in various aspects of ICS programme and its implementation undertaken by
government and non-government agencies.
4. Private Sector Participation
The Agricultural Development Bank/Nepal has not only provided loan facilities but
also channelizes subsidy. The ADB/N assures local entrepreneurs necessary capital
for investment through the loan and subsidy programme. On an average , 80 percent of
the total cost of the project is financed in the form of loan payable over 5-7 years. The
rest of the cost is contributed by the entrepreneur in kind or cash. The provision of
capital subsidy minimizes the entrepreneurs' contribution, which helps attract private
investment.
Microhydro: DCS and BVS were instrumental in building local manufacturing
capacity in the initial stage. Foreign collaboration stressing efficiency and cost led to
the innovation of low cost MPPU and KM1 was instrumental in building these
MPPU. Later on the manufacturers started developing add-on and stand-alone
electrification units to be locally manufactured at low cost. Peltric, an integrated
turbine -alternator portable unit of capacity ranging from 1-5 kW has been recently
developed by K.MI and becoming popular for its ease in installation and operation.
Donor agencies have played vital role in helping set up micro hydropower
manufacturing companies. BYS was set up under assistance from Swiss Technical
Assistance and DCS under assistance from UMN.
The efforts of these organizations further contributed to the establishment of other
manufacturers in Kathmandu and Butwal. Most of the manufacturers undertake
microhydro manufacturing along with other activities like fabrication of various steel
structures as the demand or turbine alone is insufficient to keep organization going.
Biogas: The Biogas & Agricultural Equipment Development (P.) Ltd. is the first
biogas company setup as a joint venture company of the ADB/N. the UMN and the
Nepal Fuel Corporation (Now. the Timber Corporation of Nepal (TCN)). It undertook
leading role in the promotion as well as research activities in the biogas technology.
Besides biogas, it undertakes development & dissemination of rower-pump, treadle
pump and solar water heater.

After the introduction of the Biogas Support Programme various private companies
have been set up. At present about 50 biogas companies are recognized by BSP office
for construction and maintenance of biogas plants. Appliances of 12 manufacturers
have been approved. Another encouraging development is the establishment of the.
Nepal Biogas Promotion Group, an association of biogas companies.
Photovoltaic: At present, there are three well known and II newly recognized
registered PV assembling manufacturing units. The main products of these companies
are balance of systems of SHS, such as charge controller, inverters, efficient low
wattage lamps and lanterns, etc.
Wind: Most of the micro hydro manufacturers have adequate workshop facilities to
manufacture windmill. But so far, Krishna Grill Engineering Works of Biratnagar is
the only manufacturer of windmill for the use in water pumping works.
5. Government Institutions
The government institutions involved in the development and promotion of RETs in
the government sector are the National Planning Commission (NPC), the Ministry of
Science and Technology (MOST), the Water and Energy Commission Secretariat
(WECS) of the Ministry of Water Resources, the Ministry of Finance, etc. RETs
development's policy and programmes of RETs are influenced by these institutions.
In early days, the Nepal Electricity Authority (NEA) played a lead role in the
implementation solar PV Systems, microhydro and wind energy. The NEA is at
present concentrating its activities only in small, medium and large hydropower
development.
During the Eighth Plan period for the rapid development of RETs. HMG N
established the Alternative Energy Promotion Center (AEPC) under the MOST with
following responsibilities for the development of RET sector.
a) To recommend policies for promotion, extension, development and
dissemination of RETs to HMG/N
b) To campaign the cause of development of rural energy technology and to
establish a strong relationship between the industry, people and the
government.
c) To establish database, test station, information center and library related to
RETs.
d) To supervise, monitor and evaluate alternative energy programmes and to set
performance standards of RETs to conduct research and development on RETs
along to conduct training programmes and develop training manuals.
e) To facilitate the companies. NGOs and other line agencies involved in RETs. To
liaison with the government, ministries, departments, donors and private sectors to
launch RET programmes.
The AEPC has undertaken some of assigned functions but not all. It has to be
strengthened to enable it to fully undertake all given responsibilities.

6. GOVERNMENT PLANS, POLICY AND INVESTMENTS: A REVIEW
1. Periodic Plans
Although, there was no specific programme for RETs development in the Sixth Plan
(1980-85), government channelized a subsidy amounting to NRs. 2.67 million to
MHP entrepreneurs through the Agricultural Development Bank.
RET sector got addressed for the first time in the Seventh Plan (1985-90) as a means
for the conservation of forest resources and for the benefit of the rural- people. The
policies were mostly concerned with biogas. solar thermal, wind energy. ICS and
small water turbines /improved water mills. The RET policies in the plan were.
• To encourage the development of alternative energy sources specially biogas.
solar and wind energy with emphasis on making the private sector
participation more active.
• To expand the distribution and use of improved chulo (cooking stove) in an
intensive manner with appropriate encouragement to the private sector to
reduce consumption of fuel wood.
• To undertake research activities to develop and construct cheap and
appropriate biogas plants to suit the different climatic conditions of the
different pans of country.
• To propagate and to encourage the use of water-mills on a wider scale in the
rural areas, especially to augment the development of agriculture and cottage
industry and to supply electricity to these areas.
Besides above policy statements, the plan made provisions for necessary assistance
and incentives as may be justified to encourage the involvement of the private sector
in the development and expansion of use of alternative sources of energy. Financial
assistance in the form of grants and loans to RET consumers, programme for
collection of data to develop solar and wind energy and development of technical
manpower through training programmes for local people wore also envisaged in the
Seventh Plan document.
The plan estimated a total expendit ure of NRs. 154.80 million in RET development
and expected private sector to invest NRs. 104.8 million. A sum of NRs. 50 million
was allocated for subsidy and the balance was for support activities.
In the years 1990 and 1991, immediately after restoration of the democracy, there was
no periodic plan. During this period (1990-92) the subsidy for MHP and Biogas was
continued. Through the ADB/N. HMG/N distributed NRs. 1.80 million subsidy to
MHP against the allocated budget of NRs. 2.0 million.
The Eighth Plan (1992-97) continued the RET programmes contents of the preceding
Seventh Plan with some adjustment in its policy statements. The estimated investment
amount for incorporated RET programme was NRs. 1,650.0 million of which 20
percent was to come from HMG/N mainly in the form of subsidy. The major
programmes propose d in the Plan document were MHP, biogas, solar energy, wind
energy and biomass energy. Of the total public sector outlay RET development it had
allocated 15% in MHP. 75% in biogas. 3% in solar energy, 6% in biomass energy and
1 % in wind energy (NPC. 1992).

During the Eighth Plan period, the expenditure incurred including the disbursement of
subsidy was satisfactory. The subsidy amount distributed through the ADB/N was
found NRs. 33.54 million as against budget allocation of NRs. 73.00 million in MHP
sector. During this period, subsidy for individual solar PV household system (SHS)
was initiated to benefit the rural population where grid electricity is not envisaged in
the near future. The subsidy disbursed through the ADB/N for SHS was NRs. 7.11
million against the allocated budget of NRs. 5.48 million. Likewise, in the biogas
sector the subsidy disbursed was NRs. 73.24 million and loan was provided to the
tune of NRs. 90.17 million in FY 1996/97.
The Ninth Plan (1997-2002) has fully recognized the importance of RET development
in the overall context of national development, especially to supply energy
requirement of rural areas and protect the environment.
The long term concept spelt out in the Ninth Plan for the development of rural energy
resources is as follows:
• The fundamental goal of the development of rural energy systems is to
increase employment opportunity, which develops economic foundation and
enhances living standards of rural people. Environmental sustainability will be
maintained in local area.
• Considering the long-term effect on the utilization of natural resources, the
application of traditional energy sources will gradually be replaced by modem
energy.
• The necessary arrangement will be made lo provide for research, information
How , training and financial services in a way that makes market economy and
people's active participation meaningful for the rural energy development.
• The commercialization and expansion of rural energy technology will be
carried out in a planned way: and external dependency for energy will be
reduced. (NPC. 1998)
The long-term concept of rural energy development has provided a base to formulate
long term perspective vision and plan for the development of RETs. The objective of
rural energy development plan and programmes, among others, is to improve energy
efficiency by adopting new technology for rural energy and economic development:
and also to minimize negative impact upon environment by other activities. The
policies enumerated in the Plan document are:
• To increase supply of energy from traditional sources with minimum adverse
environment impact.
• To involve private sector, national and international non-government
organizations in research and development for utilizing rural and alternative
energy sources and technologies. Also, to update and collect data on solar,
wind and geo-thermal energy and institutionalize data collection through the
Alternative Energy Promotion Center (AEPC). In addition, special
consideration will be given to diversify energy utilization to develop the new
and feasible energy sources.

• To provide special attention to expand and promote improved cooking stove
(ICS) to make rural household environment smokeless and healthy. Also.,
special emphasis will be given to replace kerosene arid diesel by generating
electricity from microhydro. solar and other isolated energy generation for
light and other . purpose.
• To encourage use of hydro, solar and wind energy to replace imported energy
through adaptive research and development and commercialization of energy
technology: and to mobilize educational research institutions as well as the
private sector.
• To introduce a rural energy auditing system with the programme on an
experimental basis.
• To implement model energy village programme on pilot basis in districts
representing different geographical region.
• To establish a rural energy development fund with a view to supporting the
rural people to ease the financing mechanism.
• To integrate rural and alternative energy development with the rural
development programme.
• To develop the AEPC as a nodal agency for the promotion and development
of alternative energy sources.
• To attract private sector to conduct studies and research. Also, to purchase
energy produced from rural alternative energy projects/schemes through the
national grid connection at a reasonable price.
• To provide subsidy to RETs.
The long term concept, objectives and the policies declared to adopt for the
development of RETs are indeed the testimony of government commitment to speed
up the development of RETs beyond the Ninth Plan period.
The RET programme included in the Ninth Plan in line with the above stated
objectives and policies is much bigger in terms of targets and the investment outlay as
proposed. The Plan has incorporated the earlier programmes of MHP, biogas and
solar energy but the targets are ambitious. The investment proposed for RETs has not
been clearly mentioned. However, outlay of NRs. 35.06 billion has been allocated for
Electricity and Energy sector. According to the report of the task-force constituted by
NPC the total allocation for RETs development during the 9th Plan will require NRs.
5.548 million. Of the total outlay, HMG is to provide 14 percent and private sector
investment at about 55 percent. The balance 31 percent is expected to come from the
donor agencies (NPC. 1997 unpublished).
DANIDA , SNV and kfW have committed assistance for the RETs development
programme. The DANIDA has committed NRs. 1 billion to be spent over a period of
five years starting from 1998 December.

Regarding the financial progress in this sector during the first two years (1997-99) of
the Ninth Plan, HMG/N had provided subsidy amount of NRs. 38.756 million in
MHP, NRs. 6.98 million to solar PV/SHS, 0.45 million in solar cooker and dryer and
NRs. 179.23 million in biogas.
In the current FY 1999/00, the programme/Budget has provided NRs. 25 million
subsidy for MHP. NRs. 30 million for solar PV home system. 6.88 million for solar
PV irrigation system. NRs. 0.40 million for solar cooker and NRs. 143.85 million for
biogas.
Thus, it is obvious that the investments in RET sector both by government and by the
households and private sector is growing rapidly over the period of last 10 years. The
Exhibit 3 shows the planned investment growth trend from the Sixth Plan.
Exhibit 3
The Allocated Budget for RET Development
2. Perspective Energy Plan for Nepal
The National Planning Commission with support of UNDP/Nepal has prepared the
Perspective Energy Plan (PEP) (1991-2017) for Nepal in the form of an indicative
plan, It has incorporated number of strategies, general as well as sector specific, in the
areas of new and renewable energy resources development of the country, ft has
recommended that HMG should accord high priority to aggressive promotional
activities of these energy resources, considering their potential to supplement the
energy requirement of the country.
The PEP document conducted rigorous exercise identifying macroeconomic and
energy sector linkages using various analytical tools including macro-economic
modeling, input-output analysis and reference energy system (optimization). The PEP
conceptualized three major macro-economic and energy scenarios for identification of
energy needs and issues for the PEP planning period, namely, current trend, medium
growth and high growth. The macroeconomic assumptions under three scenarios are
enumerated in the Table 2. Under three basic scenarios, PEP energy consumption
projection for the year 2017/18 including renewable energy is shown in Table 3.

Under general strategies with respect to RET, it has recommended to make
development and promotion- of alternate energy resources and technologies as an
integral part of overall rural development activities. The PEP has recommended to
internalize RET development with other development projects; decentralize RETs
planning, development, promotion and dissemination and" also to take measures for
maximum involvement of local people, especially women. The PEP has also focused
on need to mobilize DDC. VDCs and local communities, and to encourage the private
sector to play a lead role in RETs 'development and dissemination. The plan stressed a
need to create an independent and autonomous institution for their effective
development, promotion and dissemination in a well-coordinated and sustainable
manner, to support their development by providing identified amount of subsidy
through the concept of revolving fund. It has also recommended allocating at least
10% of government subsidy to R&D purpose.
Table 2: Macroeconomic Assumptions and Energy and Environment Indicators in PEP
Parameters Unit Base Year
(1991/92)
Current
Trend
Medium
Growth
High
Growth
(2017/18) (2017/18) (2017/18)
Population Million 19 34 34 34
Population Growth % 2.3 2.3 2.3
GDP (at 1991 price) billion NRs. 144.9 566.0 730.S8 1109.3
GDP Growth 5.4 6.4 8.1
Ratios (% of GDP)
Savings % 11.2 21.7 33.2 40.9
Investments % 21.8 26.3 37.2 47.5
Exports % 16.5 45.8 50.9 50.4
Imports % 27.2 50.4 54.9 57.1
Resource Gap % -4.6 -4.0 -6.7
Agriculture % 45.0 21.9 19.1 17.8
Manufacturing % 8.8 24.6 26.8 27.5
Energy Sector Investment Billion NRs. 2.3 35.7 44.7 67.6
Energy Indicators
Primary Energy GJ/capita 12 17 19 25
Traditional Energy GJ/capita 11 13 14 16
Commercial Energy GJ/capita 1 4 5 8
Energy Intensity GJ/Mn. NRs. 1624 1040 897 768
Oil Intensity GJ/Mn. NRs. 112 180 184 184
Commercial Energy Intensity GJ/Mn. NRs. 147 282 252 249
Self Reliance Ratio
Total Energy % 82 81 78 74
Commercial % 16 31 27 23
Energy Sector Efficiency * % 19 32 34 36
Environment Indicators
Per Capita Carbon Release kg 903 1572 1788 2271
* excluding lighting energy requirement
Mn = Million
Source: NPC/PEP, 1995

Table 3: Energy Consumption Projections in PEP
Parameters Unit Base Year
(1991/92)
Current
Trend
Medium
Growth
High
Growth
(2017/18) (2017/18) (2017/18)
Fuelw ood '000 tons 10455 14884 14962 14092
Other Biomass '000 tons 3317 15626 18420 25996
Electricity '000WMh 786 9651 10929 14421
Coal '000 tons 87 248 390 789
Petroleum Fuels '000 kl 443 2964 3727 5641
Other Renewables '000 GJ 85 4568 10804 28852
Source: Perspective Energy Plan. 1995. NPCS
In respect of micro hydropower. its recommendations were.
• Identification of potential areas with the involvement of maximum local
participation.
• Undertaking of promotional activities for creation of public awareness.
• Ensuring its supply availability by providing the manufacturers with
institutional. technical and financial support and increasing their capability.
Providing financial incentives and subsidies in a gradually decreasing manner and
providing priority for subsidy to the most viable and suitable range of MHP size
ranging from 1 to 25 kW generation capacity (the provision of subsidy should be
based upon actual output rather than on the plant size or total project cost).
In biogas sector, its recommendations were.
• Need to focus on R&D activities on plant cost reduction and accessories.
• Standardization of plants related products, continue subsidy for another 10
\ears ( higher subsidy in new areas for effective demonstration),
• Provide financial incentives and support to create infrastructure for the
production of biogas accessories and equipment in Nepal itself.
• Encourage private banks and other financing institutions.
• Provide necessary support to strengthen technical and management
capabilities of existing and prospective private biogas companies,
encouragement of private and public institutions and also local NGOs in the
promotion and development of biogas technology.
For development of solar energy sector, its recommendations were,
• To provide considerable government subsidy for a definite period of time, say
10 years.
• To standardize and strict quality control of solar technologies.

• To give lead role to NGOs and private sector and facilitating role to
government and support of R&D activities in respect of water heating,
cooking and cost reduction of solar PV system.
In wind energy development- its recommendations were directed towards
• Collecting reliable wind data for the whole country.
• Supporting R&D activities to modify imported prototype designs to suit local
conditions.
• Supporting private entrepreneurs to enable them to fabricate and manufacture
wind mills locally at reasonable cost and establishment of proper mechanism
and networking facilities for free flow of information among organizations and
institutions involved in this sector.
In respect of Briquetting Technology and Improved Cook Stoves, its
recommendations are in the areas of R & D and technical, financial and institutional
supports, further it emphasized necessity
• To ensure the capability of local manufacturers.
• To identify lead agencies and institutions for ICS promotion and
dissemination.
• To launch a massive campaign of ICS with women's active participation in its
development and promotional programmes, and
• To mobilize [NGOs and donors for funding to identity NGOs and research
institutions.
The previous periodic development plans as well as the PEP for Nepal has mostly
addressed the RETs policies and also has highlighted strategies required to adopt for
the development of clean energy resource for the betterment of rural mass. However,
most of the policies enumerated in the previous plan documents yet need to be fully
verified, developed and implemented to realize the goals of overall rural development.
The Perspective Energy Plan has estimated for investment required for energy sector
as a whole under trend scenario NRs. 35.66 billion. NRs. 44.67 billion under medium
scenario and NRs. 87.56 billion under high scenario at 1991.92 price.

7. SUBSIDY POLICY REVIEW
The government subsidy policy, in general, is directed towards rural development
with special focus on economically deprived sectors (e.g. agriculture) and population.
Subsidy policies are also aimed at fostering market penetration by private sector to
take care about market imperfections or externalities such as existing subsidies in
competing substitutes. Price subsidy and subsidy on capital are most visible subsidies
provided by the government. The overall objective of the subsidy is. therefore,
ensuring social equity and balanced economic development.
The capital subsidy for installing various rural new and renewable energy
technologies such as microhydro, biogas, solar photo-voltaic, etc. are examples of
subsidy that has taken different shape and size in the past.
The subsidy for RET development can take a form of either subsidy on capital
investment or subsidy on interest or both. Subsidies, in general, improves the financial
returns from the project and thereby make them financially more attractive. This in
turn is believed to increase the demand of the technology and thereby provide
opportunity to private sector to grow. However, there are also other aspects apart from
financial returns on which the proper operation and sustainability of the new and
renewable energy project depends, such as adequate training. R&D. end-use
promotion, etc. if these software aspects of RET development are needed to be done
by the manufacturers themselves, it eventually add-up to the cost as they are simply
shifted to the end-users. Therefore, these assistance, if provided by the government or
other agencies make-up as software subsidies.
The principle of using subsidies to meet objectives does make sense. However,
barring some exceptional, it is commonly found that subsidy policies generally do not
meet criteria based on objectives. In fact, adequate analysis is rarely carried out. In
spite of good intentions outlined as objectives of the subsidy programme, it can bring
negative results if they are improperly planned and implemented.
1. Biogas Subsidy
Biogas subsidy programme in Nepal started two decades ago and present programme
is considered to be a success with activities of Biogas Support Programme, which
began in 3991/92. The fiat subsidy rate of NRs. 7.000 in the Terai and NRs. 10.000 in
the Hill is being provided. From 1996/97 onwards, a third rate of NRs. 12.000 was
introduced for remote hill districts whose headquarters were not connected by road.
Prior to the BSP, farmers needed to go through ban procedure of ADB/N to avail
subsidy. Since the subsidy is now administered through BSP instead of ADB/N. it has
been possible to reduce transaction costs to farmers willing to self -finance the plants.
BSP. pays the subsidy directly to construction companies upon completion of the
plant.
The BSP programme has been providing training and observation tours to staffs of
biogas companies and other related agencies. These have proved to be beneficial for
promotion and can be considered software subsidy as described earlier in this section.
These cost otherwise would have either been avoided or passed on to the farmers.

Participation of other banks (Nepal Bank Limited and Rastriya Banijya Bank) in
financing BSP programme is another achievement. However, their participation is
limited.
Landless households owning animals have not been able to take advantage of subsidy
policy in biogas plants mainly due to lack of physical collateral.
It is argued that only farmers with cattle and physical property benefit from the
subsidy. It should be seen as an investment on environment, saving of forest and
supplementation of chemical fertilizers. Since the biogas subsidy has long term
benefits as compared to other subsidies, e.g. fertilizers subsidy, the subsidy policy for
biogas programme can be justified.
2. Micro Hydro
The micro hydro technology existed long before, but its extensive use began only
after the Agricultural Development Bank got involved in its promotion and supports
in the form of debt financing and HMG/N subsidy. In mid-seventies, ADB/N started
to promote micro hydro for agro-processing in rural areas. The provision of subsidy
for rural electrification has helped in faster dissemination of microhydro plants, which
was introduced in 1985.
The present subsidy policy includes subsidy only on the cost of electrical equipment
and transmission and distribution system. The amount of subsidy is 75 percent in
remote mountainous districts and 50 percent for the remaining districts. In case o\'
peltric installation subsidy is also provided in the cost of polythine pipe used as
penstock up to 100 meter in length. The present subsidy policy does not differentiate
between stand-alone and add-on plants. The subsidy, therefore, is correctly labeled as
subsidy for rural electrification rather than micro hydro as such.
In addition to financing. Agricultural Development Bank is also the subsidychanneling
agency. Foreign donors have also been assisting the micro hydro projects.
The present subsidy policy does not take into account the remoteness of scheme sites
and the transportation costs. The only districts that get 75% subsidy on electrical
components are Solukhumbu. Manag. Mustang. Humla. Jumla. Kasikot. Mugu and
Dolpa. The present subsidy system excludes subsidy facilities for self financed
projects since subsidy is channeled through ADB/N for loan financed projects only.
The borrowers are required to provide land and building as collateral to be eligible for
bank loan. The entrepreneurs ma)' not have sufficient land or the land value may be
low in rural areas to cover the cost of micro hydro project. It has been noted that lack
of physical collateral has affected entrepreneurs to take advantage of subsidy policy.
The current subsidy policy covers about 20-40% of total plant cost. It is worth
mentioning here that generally subsidy allocated for MHP was not fully utilized.
3. Solar PV and other Solar Energy
HMG/N has introduced subsidy for household PV systems from 1996/97. It provides
50 percent capital subsidy not exceeding NRs. 15.000 on 36 peak Watt solar home
systems. Financing terms for loans from ADB/N are about 16% over a period of 3

years. The subsidy is channeled mainly, through ADB/N loan facility. Self -financing
SHS get subsidy directly from AEPC. Other solar PV Systems for non-household use.
loans are assessed under the guidelines for specific end use. Especially, for PV power
irrigation. HMG has a policy to provide the capital subsidy of 75 percent. The subsidy
to PV power irrigation has not been implemented by the ADB/N, indicating
disbursement problems. Other terms of finance by ADB/N are same as household
system. There is also a provision of subsidy for solar dryers and solar cookers similar
to SHS.
4. Improved Cooking Stove
The stoves installed during the first phase (1981-88) of CFDP were distributed free of
cost to interested households participating in the Community Forestry Development
Programme. The ceramic stove inserts used in these programmes were too heavy and
fragile. These stoves were installed free of cost to the user or installed at subsidized
rate. There is no unified programme of providing subsidy for the installation and use
of 1CS. NGOs and government programmes have their individual financial assistance
or subsidy for the ICS installation. For instance CSD's cast iron stoves at Jumla.
which is most expensive model so far disseminated in Nepal receives about NRs.
2.000 subsidy. Other clay model which costs around NRs. 200 including labor,
generally get subsidy for the cost of installer which is generally mobilized by NGOs
and others under their programmes.
While considering overall ICS programme, except for the expensive models like cast
iron heater stoves, the cost of installation of stove itself constitutes smaller portion of
the overall cost. Major costs of ICS programme are research and development.
promotion and dissemination and training. So far these activities are covered by donor
and HMG grant assistance,
However, there is a lack of coordinated and comprehensive programme in this regard.
5. Wind Energy
The government introduced subsidy for wind power generation since 1996/97. Donor
agencies like USAID , UNDP, DAN, IDA have conducted studies as well as few
demonstrations projects for its promotion. A private company, has installed wind
water pumping plants at vicinity of Biratnagar on a cost-share basis with HMG N via
ADB/N supplied subsidy.
The ADB.'N has not yet adopted loan policy of wind power. It financed one wind
water-pumping project on pilot basis. The terms and capital subsidy was based on
bank policy for irrigation projects, e.g. 40 to 60 percent for ground water pumping.
Wind energy is not yet a commercially proven technology in Nepal and needs more
adoptive research and development work. Government policy should focus to identity
measures to promote economically attractive wind power projects.

8. RENEWABLE ENERGY DEVELOPMENT:
A FUTURE OUTLOOK
In the base year 1998/99. only about 0.81 million GJ. 0.26% of total energy supply, of
energy is estimated to be supplied by RETs (Refer table 10 in Chapter 10). Of these,
biogas supplies about 0.732 million GJ assuming the average size of plant to be 6
cubic meter supplying 670 cu. m. of gas annually at 75% of their capacity. Similarly,
about 0.036 million GJ of energy is supplied by 4.600 kW microhydro installation at
25% load factor and about 0.015 million GJ is supplied by 1100 peak kW of installed
solar photovoltaic. In addition about 0.028 million GJ of energy is estimated to be
trapped by about 18.000 (17.265 in 1997/98) solar water heaters in the country.
Contribution from other renewable energy technologies, such as briquettes, wind, etc.
is considered negligible.
The contribution of renewable energy during the REPPON plan period will change
only marginally from 0.26% in base year to about 1% in the year 2020 under the
current trend scenario. Under the medium growth and high growth scenario
contribution of RETs in total energy consumption is expected at 2.1% and 4.6%.
respectively. Total energy demand projection and supply under the various scenarios
is based upon the Perspective Energy Plan for Nepal (1997/98-2017/18) , which has
been extrapolated to reflect REPPON planning period 2 . The energy supply projection
under three different scenarios by major energy category is shown in the Table 3.
Table 3 : Present Energy Consumption and Projection under Different Scenario by Major
Energy Type in Million GJ
Base Year Current Trend # Medium Growth# High Growth#
Energy Type 1998/99 Projection Growth Projection Growth Projection Growth
2019/20 2000-20 2019/20 2000-20 1999/20 2000-20
Biomass 281.4 460.8 2.8% 488.5 3.0 % 588.5 3.7 %
Electricity 3.8 42.1 10.1% 48.1 10.6% 64.9 11.8%
Coal 8.1 18.0 4.1% 25.4 5.9% 44.3 8.9%
Petroleum 29.2 124.0 7.5% 158.7 8.5% 248.1 10.2%
RET 0.8 6.2 16.6% 157 20.5 % 45.2 25.1%
Total 323.3 651.2 3.6% 736.4 4.0% 991.0 5.1 %
RET/Total Energy 0.25% 0.95% 2.13% 4.56%
RET/Commercial
Energy
1.91% 3.26% 6.33% 11.22%
Source:
* Based on Energy balance of 1998/99 (W'ECS. 1999)
# Based on Perspective Energy Plan for Nepal. National Planning Commission. 1995.
2 The projections of Perspective Energy Plan (PEP) on overall national energy supply-demand and macroeconomic
linkages prepared by National Planning Commission assisted by Water and Energy Commission
Secretariat has been adopted in this study. Reason for adoption of long term energy projection from PEP is
because it is the only long-term energy plan that has explicitly projected energy demands based on macoeconomic
linkages.

As can be seen from the Table 3, contribution of RETs as percentage of commercial
energy would be about 3.3% under the current trend scenario whereas under medium
and high growth scenario it would be 6.3% and 11.2%. respectively.
By the end of REPPON planning period (2020 A. D.), household coverage by the
RET programmes under different scenarios are shown in Table 4. The vision from the
estimates as shown in Table 4 is that by the end of 2020 at least 11 percent of the rural
population will be using at least one RET under the current trend scenario. Under the
medium growth and high growth scenario, about 30 and 48 percents of households
will be using at least one RET. respectively.
The per capita energy consumption of rural population will increase only marginally
from 13.6 GJ to about 14 GJ under the current trend scenario. Under the medium and
high growth scenario per capita energy consumption of rural population will increase
to 15 and 21 GJ. respectively.
Table 4 :Number of Households served by different RETs in Year 2020
(in thousand)
*Except Solar Water Heaters
** Household served by new RETs are not estimated.
Assumptions: HH Size=5.6; Urban Population Growth-6.05%
Source: REPPON Study Estimates and PERNPC. 1995

9. RENEWABLE ENERGY PERSPECTIVE PLAN: VISION AND APPROACH
1. Role and Place of the Renewable Energy in the National
Development Strategy
In line with national development objectives, the need of the day is to alleviate
poverty, which is mainly pronounced in the rural areas. Therefore, rural development
focus in the long-term perspective plan like Renewable Energy Perspective Plan is
imperative. In order to achieve improvements in the quality of life in rural areas,
opportunities for employment through enhanced skills, knowledge and meaningful
participation in the management of the local resources are necessary for long term
sustainable development. Renewable energy resource, being one of the readily
available local natural resources does have potential to provide opportunities for
economic activities and means to lead a better living in the rural areas. Renewable
energy development in rural (also in urban) areas, however, can not be addressed in
isolation. Overall rural energy development including other forms of energy should be
considered to optimise the scant resources available with the village poor.
Further, it is also important to realize that energy is only one of the many ingredients
required for the development that calls for an integrated approach. However,
renewable energy can play a lead role in rural development, as it tends to improve
productivity as well as quality of life in terms of providing better access to
knowledge, skill and economic opportunities. Analysis of the existing rural energy
situation shows the dominance of biomass energy in Nepal, which is an important
characteristic and has bearing on many aspects of the rural development. Other major
characteristics of the rural energy situation in Nepal are:
a) Diverse energy-consumption patterns due to different geographic, cultural and
economic activities.
b) The majority of households live in poverty, with a minimum level of
energy-consumption (i.e. income- and price-inelastic demand).
c) The majority of the population cannot afford new and commercial forms of
energy with present level of subsistence economic activity.
d) Most energy supply in rural energy system is not monetized. Fuelwood for
example that meets a major chunk of energy requirement is mostly collected from
forest and farms at the cost of labor, which is abundant due to slack time in the
agricultural activities.
e) Government and financial institutions have inadequate funds, institution, and
human-resources for energy and other development activities.
These characteristics have multiple implications on rural environment, technical,
financial, and socio-economic developments. Increased use of natural resources to
meet needs of increasing population and economic development activities has
stretched natural resources beyond their regenerative capacity in many of the rural
areas. The consequences of such unsustainable use of natural resources defeat the
overall objective of achieving improved living standards in the long run. Therefore, to
meet the rural energy requirements both for day to day sustenance and for promoting

ural economic activities, it is imperative that energy interventions are essential. This
intervention from energy point of view can be achieved through conventional energy
like grid electricity and petroleum product supply as well as alternate and renewable
energy technologies such as biogas, improved cook stoves, microhydro, solar, wind.
etc. High cost and lack of physical infrastructure such as road and extension of grid
and dependency on imports force the planner as well as the users to mobilise the local
resources. Fortunately, these local resources are renewable and cause little or no
negative impact on environment and socio-economic set-up of the rural areas.
Therefore, as far as possible the energy intervention for sustainable development of
rural areas need to be based on available renewable energies such as biogas.
microhydro, solar, wind, modern biomass technology etc.
Strengthening and enhancing rural economy is the path towards achieving the goal of
improved living standards, it requires technological intervention to improve
efficiency. Almost all kinds of technological interventions invariably need some form
of energy input. In order to make technical interventions sustainable including supply
of modem form of energy sustainable, financial sustainability of the proposed
intervention is an important aspect. To achieve the financial sustainability there must
be a matching development of market and other supports in an integrated manner.
Therefore, meaningful technological-intervention and financial-sustainability are two
key issues in rural energy and economic development.
Under the prevailing rural socio-economic characteristics, poverty and non-monetized
energy supply, an energy intervention essentially requiring investment can not
generate enough financial returns to make intervention financially viable. Subsidies
are often justified on this ground. Hence, to make energy technological intervention
sustainable on financial basis, returns from the interventions needs to be monetized.
However, it is also important that programme leading to the monetization of rural
energy and technical interventions must be integrated with income generating
activities for the rural population. Otherwise, monetization of rural energy will affect
the population adversely due to their limited purchasing power. If rural energy
systems are to cater for the goals of rural development, they must be able to ensure a
minimum amount of energy to meet basic the needs of ail rural people as well as
adequate energy to facilitate economic growth and new opportunities for income
generation in rural communities. Therefore, rural de velopment and renewable rural
energy should not be dissociated from each other.
2. Vision for Renewable Energy Development
In order to maintain the supply diversity and promote sustainable energy development
geared towards improvements in quality of life for rural population, renewable energy
development should be made an integral part of other rural development activities
projects.
The impacts of integration of renewable energy sector with other productive sectors
will result in the lowering of the cost of renewable energy and electricity through
better capacity utilization of generating facilities (resulting in higher system load
factor for decentralized systems). At the same time rural economic growth is also
ensured due to cost effective and sustainable energy supply, which is an important
input in the production process. For example, agricultural diversification through thedevelopment
of horticulture, livestock and cash crops and appropriate irrigation

technology (water harvesting, sprinkler and drip, and the traditional canal irrigation)
as well as modem irrigation technology, such as, sprinkler and drip systems can bring
the fanners out of the subsistence trap. This has significant impact on poverty
reduction. All RETs, photovoltaic, wind and biogas can enhance the irrigation and the
needed -infrastructures.
The RET development is an essential component for agricultural diversification as
national grid will not be able reach remote villages. This will also have beneficial
indirect impacts on health and equity situation.
Therefore, the rural energy development must be guided by following vision:
a) Development focus of rural energy systems -- that is their ultimate impacts on
economic growth, improvement in the physical quality of life index and
environmental sustainability - is the driving motivation behind all planning
and programme of rural energy development through principle of least cost
energy services.
b) A long-term vision of the rural energy transition comprising of a phased
technological evolution of rural energy systems from a traditional energy base
(fuel wood and other biomass) to a combination of centralized and
decentralized available natural resources and technologies including upgraded
biomass and other commercial energy.
c) Technology dissemination programme through a planning process that noi
only focuses on commercialization of technology but also encourages
industrial development in the country.
d) The strategies for the development of RETs are based on decentralized energy
systems with active participation of community local government and non
government organization. The Renewable Energy Technology supply would,
however, need to be developed through market mechanisms.
e) In order to enable people, local government and non-government
organizations to plan, implement and manage renewable energy technology
and make market mechanism work in relation to other conventional energy
supply, substantial initiatives from the government is inevitable in terms of
institutional and fiscal support and measures.
3. Objectives
Following objectives are guided by above vision to achieve rural energy development
through enabling of the market mechanism in supplying the technology to harness the
renewable energy resource and enabling of people to organize and participate in
planning and management of the energy resources focusing at rural economic
development:
a) to ensure supply of a minimum amount of energy to meet basic needs of all rural
people with drudgery reduction for women and children.

a) to facilitate economic growth and to create new opportunities- for income
generation and employment in rural communities through adequate supply of
energy, including rural electrification,
b) to ensure minimum adverse environmental impact from the rural energy activities,
c) to ensure. least dependency on external source of energy through efficient and
sustainable use of local energy resource for which adequate end-uses are needed
to be developed to make harnessing of renewable energy financially viable.
d) to promote renewable energy resources development through enabling
programme to acquire, manage and operate rural energy resources including new
and renewable energy to uplift the rural economy with active participation of
people, private sector, and non-government organizations.
4. Policies
Keeping in view that the rural energy sectors relevancy to each and every household
and village, the government realizes a need of bottom-up approach in rural energy
planning and development. Therefore, the primary policy for the development of rural
energy sector will be to let people plan, implement and manage the rural energy
programmes. In order to affect this mechanism the role of the government will be
largely limited to enable the people and make market force work under rural setup so
that the rural energy programme can sustain on its own in the long run.
4.1 Institutional
Institutional arrangements including their roles are vital for the realization of
objectives and materialize the long term development vision of the renewable energy
sector. The major actors in renewable energy sector development can be identified to
belong to and their roles are.
a) Government Institutions: The role of the government institutions such as
ministries and other line agencies including the Alternative Energy Promotion
Centre should be limited largely to directive, regulative and facilitative whereas
local government institutions such as DDC. VDC may be mobilized for
monitoring, evaluation and implementation of RET programme.
b) NGOs. and CBOs: The role of the non-government and community based
organizations need to be enhanced arid strengthened as primary implementing
agencies of RETs and need to be seen as an extension of arms of government
enabling activities in the field of capacity building, research and development as
well as human resource development.
c) Private Sector Institutions: With the liberalization of the economy, role of
manufacturers, suppliers, consulting firms and contractors - is basically supply of
technologies and services.
d) Academic. Research and Training Institutions: Human resource development
through formal and informal education and research and development activities
including social research would be the major activities of the institutions in this

category. They should also be actively engaged in the development and field
testing of various end-use devices in RETs.
The policy should reflect fully the role to be played by these agencies for their active
participation and concrete contribution in its development. The Exhibit 4 shows the
basic framework of institutional linkages among various institutions in the
development of RETs. The existing roles of various institutions are needed to be
assessed from time to time, if necessary. If a need arises a separate ministry should be
created for accelerated development of RETs. It is expected that a well defined role
and linkage among institutions will facilitate their coalition towards achieving
national as well as individual institution's goal. Promulgation of new legislation for
RETs development seems desirable that defines and guarantees institutional roles as
well as allows and safe guards the interests of various participating actors.
The specific institutional policies proposed to be undertaken are as follows:
a) The Alternative Energy Promotion Center (AEPC) of the Ministry of Science and
Technology will be the nodal institution for promoting renewable energy in Nepal.
The AEPC will be the coordinating agency for RETs related activities of the
government sector. In general, it should not be involved directly in the
implementation of RET programme.

) An institutional arrangement will be made to effect integrated rural development
with renewable energy development activities at central ministry level, which will
utilize existing institutions at VDC and DDC level such as district units of the
Ministry of Local Development. The RET unit/section will be encouraged to be
established in DDC and VDC for the proper exploitation of renewable energy
resources and promotion of RETs. The FNCCI and the Chamber of Commerce
will be encouraged to mobilize the business community and entrepreneurs -
investors in the development of RETs. Also, the research undertaking capability
as well as manpower production potentiality of the academic and R&D
institutions like RECAST. CES/IOE (Center for Energy Studies). RONAST.
IAAS (institute of Agriculture and Animal Science) etc. will be enhanced by
developing and following a time bound and result oriented programme.
c) In order to attract and protect private investment, protect users right and accelerate
growth of RETs. appropriate "Acts, Rules and Regulations and quality assurance
measures will be timely improved, formulated and implemented.
The improvements of the regulatory regime will promote the development of
renewable energy projects and promote the private renewable energy producers
and distributors through a more transparent, predictable, and competitive
environment, which will result in low cost energy regime. The improved methods
of licensing, tax determination, and risk sharing, will help to provide the
confidence to the investors, both from within and outside the country.
Similarly, an adequate and attractive provision for local grids and wheeling of
electricity in acts, rules and regulations will allow the private sector to generate
and wheel electricity from a remotely located renewable energy source to an
industry located elsewhere. This would result in high load factors, cheaper energy
inductive to the private sector investment in renewable energy plants as well as
energy intensive industries.
d) Renewable energy development programmes will be tied up with local
development undertakings by local bodies and also with the Agriculture
Perspective Plan (APP) of the country.
e) Gender issues and women's participation issues will be integrated with rural
energy development in order to reduce/remove drudgery affecting mostly women
and children.
4.2 Technical and Research and Development
The research and development are one of the critical areas of RETs Promotion
Programme and need to be refocused to address the need to make RETs financially
sustainable.
The improvements in system efficiency depends not only on technical efficiency,
equally important is the efficient management of the renewable energy generation
plants and the distribution system. In this regard lack of adequate end-use has been
identified that renders RETs financially unfeasible. The cost reduction is another main
area where R&D should be focussed so that majority of rural population can afford.
There is also lack of proper linkage between research and extension in the field of

RETs. In line with the objective of the RET development, major policies for
development are:
a) Use of appropriate RET will be encouraged in health posts, health centers,
educational institutions of rural areas where grid electricity is not available. In
addition, hotels, resorts and restaurants will also be encouraged to install
appropriate RETs like solar PV, solar thermal energy, wind etc.
b) RETs will be promoted and encouraged to use to reduce increasing imports of
fossil fuels like kerosene, diesel, petrol etc. so that the foreign exchange can be
saved and mobilized for other national development.
c) Along with other awareness programme model energy villages will be established
to demonstrate and create awareness on sustainable use of local resources and
renewable energy technologies in rural mountains, hills and Terai. Similarly. RET
parks will be established in academic institutions, like Center for Energy
Studies/Institute of Engineering, including energy efficient buildings to facilitate
awareness programme, to support higher level engineering courses (Master and
Post Graduate diploma) and research and development activities.
d) Research and development with private sector involvement will be sought to bring
the cost of RETs down. In order to motivate private sectors' investment in RETs.
appropriate intellectual property right mechanism will be developed.
e) Participation of local and international non-governmental organizations will be
sought in the field of research, development and dissemination of-rural energy
technology specifically renewable energy.
f) Renewable Energy technology dissemination will be based upon their commercial
viability.
g) Private sector will be motivated to establish microhydro electricity, turbine-mill
and improved ghutta to utilize potential of local water resource of smaller
magnitude.
h) Solar and wind energy data will be collected and system of acquiring and
continuous updating of these data will be institutionalized through the Department
of Hydrology and Meteorology. The AEPC will be made a nodal institution and
will be strengthened to process and produce usable database available for the use
of private sector , NGOs, and academic institutions.
i) Passive and active use of solar and wind energy as a new supply or substitute to
imported petroleum fuel will be encouraged through adoptive research and
development and commercialization of technology. Academic research institutes,
as well as private sector will be mobilized for this purpose, (e.g. in case of biogas
promotion, the Department of Agriculture, the Department of Livestock and the
Department of Health could take a lead role in using their established extension
network for slurry utilization). Similarly , Department of Forest and Department of
Health also could include ICS dissemination programme as their one of the
important programmes.

4.3 Human Resource Development
The decentralized RET implies that both the construction and management will be
based on local human resources. The use of local expertise and local resources will
help to move into a more equitable self -sustaining path.
The CTEVT, IOE, IAAS, IOF and other private training centers could play a lead role
by reorienting their curriculum and course to produce a cadre of skilled technicians of
different levels required for development of RET.
The training needs are multifaceted in the field of RETs. There is an urgent need to
produce a cadre of lower, middle and higher level technicians and motivators for the .
pr omotion, technical services, and research & development in the field of RETs in
Nepal. Private sector is playing a key role in training the end users and promoters.
Regarding microhydro. the manufacturers themselves train the operator during
installation of the plants. Involving private sector and existing institutional capacities
in vocational training and higher education need to be integrated with human resource
development for RETs. Two major approaches for this will be as follows:
a) Local and traditional skills in utilizing rural energy resources will be mobilized
and enhanced through appropriate training arrangement.
b) Appropriate human resource development programme will be launched utilizing
existing training facilities at technical and vocational training institutes to promote
and develop the renewable energy, and RETs will be included in school level
curriculum.
4.4 Financial
Financing relatively small sustainable energy investments in rural areas poses many
challenges. The cost of volume of transactio ns of rural development banks tends to be
high due to small volume of transactions. According to rural credit surve y conducted
by Nepal Rastra Bank only about 25 percent of the credit need is met by institutional
sources (Nepal Rastra Bank. 1994). Financin g rural energy programmes need to be
looked at from two aspects - access to financial services and sustainability of services
in the long run. Financial sustainability on one hand can be achieved by financing
institutions by limiting their services to less risky project and location. But this means
poorer access in rural areas and hence does not address the social equity aspect of the
development. Access can be improved through properly designed subsidy
programmes and sustainability through full cost recove ry based financial operation.
The need of intermediating activities to improve accessibility is key to successful
implementation of rural energy programme. Extension units of development banks
and NGOs can play such intermediation role. In this regard following strategies for
financial arrangement is recommended:
a) Arrangements will be made to ensure smooth How of financial assistance and
simplification of preferential loan disbursement through financial institutions like
development banks and commercial banks.
b) The preferential taxes and duties will be levied on import of machinery,
equipment and raw materials for the development and manufacture of renewable

energy technology.
c) An income tax holiday of 15 years as in the case of electricity generation (larger
hydro) will be affected for energy production using renewable energy
technologies. Moreover, measures will be taken to extend social mobilization
approach for resource mobilization required for the development of RET.
d) Private sector investment including local and foreign will be allowed to develop
rural energy resources. Appropriate policy, acts and rules will be formulated to
encourage private sector investment in rural energy development on commercial
basis.
e) Provision of buying power generated by micro and mini hydro of capacity up to
1.000 kW by the NEA grid will be simplified and implemented.
f) In order to provide level ground for competition with conventional energy, a
suitable subsidy scheme and other policy measures on tax. fiscal incentives and
pricing will be adopted.
g) Further, subsidy policy framework will be required to internalize social benefit
accrued from private investment in RETs. to address regional disparity in
development and social equity.

10. THE LONG TERM PROGRAMME OUTLINE AND INVESTMENT
PROJECTION
1. The Long Term Programme Outline
To supply amount of energy from -RETs as per three different scenarios, scale of
programmes required are depicted in Table 5. It should be noted, however, that the
numbers of various RETs programmed in the Table 5 are only indicative to
demonstrate requirements to meet PEP target. It can be seen from the Table 5 and
recent development in RETs in Nepal that with a continued support and level of
programme marginally enhanced, it will meet medium growth target. However, the
high growth scenario would be very difficult to realize unless a break-through in
RETs occurs in the planning period.
Table 5 : RETs Programme under Different Scenarios and Energy From RETs in Million GJ
(MGJ)
Assumptions:
* average 6 cu. in. size plant producing 70% ot'670 cu. m. of gas per year
+ Micro-hydro running at average 25% load-factor
# Solar PV at 5 kWh per day and 270 days a year: about 200000 Solar Home Systems of 36
Watts and
Other applications
## Wind turbine running at average 25% load factor
§ Other New RETs includes upgraded biomass and new developed RETs
MGJ = Million Giga Joule; CT - Current Trend; HG = High Growth
2. Investment Projection
The indicative investment at the rate of base year for the above envisaged programme
required is NRs. 20. 63 and 171 billion (at 1999/00 constant price) for current trend,
medium growth and high growth scenarios respectively. A substantial proportion of
this investment is to be met by the users and private sector investment. However,
government will have to inject considerable amount to attract this investment by
mobilizing its own resources and donor assistance. Government may mobilize internal
resources by taxing commercial energy use such as subsidized grid electricity and
petroleum fuels which are mainly used in urban areas. This would also bring social
justice by providing basic minimum modern form of energy to the rural areas.

The perspective plan period is equivalent to four periodic plans of five years duration
over the period of twenty years although REPPON period does not coincide exactly
with the periodic plan. The average investment resources required per periodic plan
would be NRs. 5 billion under current trend, NRs. 16 billion under medium growth
scenario and NRs. 43" billion under high growth scenario respectively. Likewise,
average investment required for the envisaged programmes will be NRs. 1, NRs. 3
and NRs. 9 billion per annum under current trend, medium growth and high growth
scenario, respectively.
Under current trend scenario, NRs. 9 billion (42.2%) of investment will be required
for the development of biogas sector. The amount of investment required for solar
PV, solar thermal, microhydro, other RETs and wind energy will be NRs. 4 billion
(21.95%), N Rs. 3.7 billion (18.5%), NRs. 2 billion (11.1%), NRs. 1 billion (5.2%) and
Rs.0.20 billion (1.0%), respectively.
Under the medium growth scenario, the highest share of total investment would go to
development of biogas sector, which will be followed by solar PV. wind energy, solar
thermal, other RETs and micro hydro. Of the total investment, NRs. 17 billion
(27.4%) will be required for biogas sector alone. The investment of NRs. 13 billion
(21.3%), NRs. 10 billion (16.4%), and NRs. 9 billion (14.4%) for solar PY. wind
energy, solar thermal respectively. NRs. 8.9 billion is expected to be invested in the
development of other RETs that would include new renewable energies that are not
yet fully exploted such as geothermal, cogeneration, biofuel and probably on fuelcells
and hydrogen fuels. About NRs. 4 billion (6.2%) will be required for micro
hydro development over the period of two decades under this scenario.
Under the high growth scenario, the highest allocation of investment will have to be
made for the development of other RETs sector. The projected amount of investment
for the development of other RETs will be quite high to tune of NRs. 66 billion (38.5
%). The investment to be allocated for the development of biogas sector, solar PV.
wind energy, solar thermal and micro are NRs. 32 billion (18.7%). NRs. 27 billion
(15.6%). NRs. 20 billion (12.0%). NRs. 19 billion (10.9%) and NRs. 7 billion (4.4%)
respectively. The detail breakdown of indicative investment described above is given
in Table 6.
Table 6: Investment Required for Plan Period 2000-2020 (constant price. 1999/2000) 3
(in Million NRs.)
Unit Unit Current Trend Medium Growth High Growth
RETs Cost Amount % Amount % Amount %
Biogas (avg. 6 cu. m.) 000 Nos 21.4 8,560 42.2 17,120 27.4 32,100 18.7
Microhydro kW 0.15 2,250 11.1 3,900 6.2 7,500 4.4
Solar PV kW 0.889 4,445 21.9 13,335 21.3 26,670 15.6
Solar Thermal '000 Nos 7.5 3,750 18.5 9,000 14.4 18,750 10.9
Wind kW 0.1 200 1.0 10,250 16.4 20,500 12.0
Other New RETs Nrs/GJ* 3200 1,056 5.2 8,931 14.3 65,980 38.5
Total (200-20) 20.261 62,536 171,500
Each Periodic Plan 5,065 15,634 42,875
Each Year 1,013 3,127 8,575
*Provisional
3 Includes supportive programme and overhead expenses.

11. RET SUB-SECTORAL OBJECTIVES, POLICY AND STRATEGY, AND
SECTORAL PROGRAMME
1. Microhydro
Development Objective : To develop a suitable mechanism for a technically and costeffective
and sustainable development of isolated rural electrification schemes that
make use of MHP.
Policy and Strategy
• To support the establishment of service centers for maintenance and re pairs of
hydroturbines and other components of MHP in areas that have promising
potential (demand and supply availability) for the development of cost
effective hydropower projects.
• End-use diversification will be given high emphasis in installing MHPs to
ensure high load factor and thereby improved economic returns.
• To reinforce the supporting structure for project preparation and
implementation.
• To implement MHP that are financed without overstepping
Government- guidelines for maximum subsidy levels and that prove to be
financially and institutionally sustainable in operation.
• To rehabilitate a number of failed MHP and reaching sustainable operation
after rehabilitation through providing financial assistance and loan.
• To develop human resource required for MHP development through
strengthening and use of existing academic and training institutions.
• A mechanism will be developed for monitoring of financial assistance and
implementing quality control measures to ensure economically and technically
efficient microhydro. and
• To support research and development at both academic institutions
and manufacturers. Collaborative research among manufacturers and
academic institutions should be encouraged.
Sectoral Programme
In order to realize the objectives of MHP sector, number of microhydro related
programmes of development and rehabilitation will be undertaken. The feasibility
studies, project/schemes formulation and development and end-use diversification
related support programme will have to be launched!
Other major activities that require for sustainable MHP development are research and
development and training both at technical and management level. Hence, training
and research and development programmes will also be earned out during the said
period. Programme for establishing service centers for making MHPs viable and
sustainable will be implemented.

Micro credit programme for the promotion of village entrepreneur with microhydro
end-use activities is envisaged for sustainable microhydro development. Subsidy for
microhydro installation should be continued during the REPPON period to accelerate
rural - electrification and relieve some of the pressure from grid-based rural
electrification.
With the implementa tion of these programmes, 15 MW of electricity generation
capacity will be installed under the current trend. 26 MW capacity under the medium
growth scenario and 50 MW capacity under the high growth scenario.
2. Solar
2.1 Solar PV: Solar PV comprises active Photovoltaic Solar Home System (SHS).
Photovoltaic Water Pumping System (WPS) for irrigation and drinking water, and
Photovoltaic Building Integrated Supply System (PVBISS).
Development Objective : To promote research and development and establish
deployment mechanisms for PV powered systems for rural development and urban
applications.
Policy and Strategy
• To collect solar insolation data.
• To launch solar PV and thermal demonstration programmes.
• To support research and development at both academic institutions and
manufacturers. Collaborative research among manufacturers and academic
institutions should be encouraged.
• To produce human resource at lower, medium and higher level for installation,
monitoring, development and desig n of solar PV systems.
• To ensure sufficient financial resources for promotion of PV systems at the initial
phase.
• To improve the quality of local manufacturing of solar PV systems through the
establishment of a solar test station, and
• To create a fully self-sustainable commercial structure for promoting and
servicing solar PV through fiscal and institutional support.
Sectoral Programme
The programmes based on solar PV technology should include solar home systems,
solar water pumping system for irrigation and drinking water and photo voltaic
building integrated supply system. In the early periodic plan of the REPPON, the
programmes like solar insolation data collection, solar PV demonstration schemesresearch
and development activities as well as lower and middle level training should
be implemented. Credit programmes for the users as well as manufacturers also are
necessary to be initiated. Also, solar test station will be necessary to be set up to
improve the quality of the locally manufactured solar PV related products. The
programme of installation of solar home system and water pumping system in the

hilly and remote districts should be continued and accelerated with priority.
Over the 20 years period of REPPON, solar PV installation will be equivalent to 5
MW electricity generation capacity under the current trend. 15 M\V under the
medium growth scenario and 30 MW under the high growth scenario.
2.2 Solar Thermal: Solar thermal includes Water Heaters, dryers, cookers and
electric power generation
Development Objective : To promote research and development and establish
deployment mechanisms for solar thermal systems for rural development and urban
applications.
Policy and Strategy:
• To collect solar insolation data.
• To launch solar thermal demonstration programmes.
• To support research and development at both academic institutions and
manufacturers. The collaborative research among manufacturers and academic
institutions should be encouraged.
• To produce human resource at lower, medium and higher level for installation,
monitoring, development and design of solar thermal systems.
• To ensure sufficient financial resources for promotion of solar thermal systems at
the initial phase.
• To improve the quality of local manufacturing o\' solar thermal systems through
the establishment of a solar test station, and
• To create a fully self -sustainable commercial structure for promoting and
servicing solar thermal through fiscal and institutional support.
Sectoral Programme
In line with the objectives and policies outlined above, support programme for the
promotion and dissemination of solar thermal applications should be initiated in areas
like water heating, solar dryers, solar cookers, etc. on commercial basis with
government support. Incentives and education packages are necessary to be developed
and implemented primarily focussing on development of local industries. Research
and development programme should be directed towards making solar thermal
applications more users friendly and cost effective.
The indicative target is to add 0.5 million square meter solar passive collectors under
the current trend. 1.2 million square meters under the medium growth scenario and
2.5 million square meters under the high growth scenario.
23 Passive Solar Building:

Development Objective: to promote research and development and establish
implementation mechanisms for passive solar building for rural and urban
applications.
Policy and Strategy:
• To collect solar insolation and climatic data
• To study vernacular and contemporary architecture in rural and urban areas and
identify passive building elements
• To prepare manuals on design guidelines, design context, construction issuesdesign
tool selection and use for energy efficient buildings
• To construct a typical passive solar building in each district for demonstration
purpose in collaboration with academic institutions
Sectoral Programme
Since passive solar buildings contribute directly the savings of energy, incentive to
programmes to encourage the construction and use of passive solar buildings should
be developed and implemented. In addition, a programme consisting of construction
of typical passive solar buildings for demo purpose will also be necessary. Research
and development activities should be focused on developing cost effective and
energy-efficient buildings so that such buildings fall under affordability of common
people.
3. Biomass:
3.1 Biogas
Development Objective : To direct and further the national biogas programme (Biogas
Support Programme) from technical, financial, socio-economic and environmental
sustainability perspective.
Policy and Strategy:
• To increase access to finance for biogas installation through revolving fund, group
guarantee mechanism, preferential loan to disadvantageous group, etc.
• To develop mechanism to ensure quality control and effective after -sales-services
for the end-users including application training.
• To develop human resource required for construction of biogas plants at local
level through active participation of manufacturers and promoters.
• To support research and development and training by academic institutions as
well as manufacturers on design of biogas plants for cold weather, alternative feed
stock, slurry recycling and use as fertilizer, and cost reduction. Collaborative
research among manufacturers and academic institutions should be encouraged.
• To conduct adaptive research on biogas application for income generating
activities, possible use of biodegradable municipality waste and community
biogas plants, and

• To encourage manufacturing industries to produce biogas related appliances and
accessories.
Sectoral Programme
The family sized biogas programme including community based are required to be
extended in massive scale along with the incentives and credit financing packages.
Subsidy based biogas package should be continued for the poor and disadvantaged
ethnic groups of the community. Gradual reduction in subsidy for general population
as envisaged in BSP programme should be adhered to. Trainers' training programmes
need to be made an integral part of the programme of biogas for design, construction,
repair and maintenance of plants. Moreover, training programmes for housewives on
use of biogas appliances, etc. must be implemented with local people's involvement.
Research and development activity related programmes is required to focus on high
altitude biogas slurry use developing affordable models for poorer section of the rural
population. Research work also should be carried out on commercial use of biogas for
income generating activities in the rural areas.
The indicative targets of biogas sector is to install family sized biogas plants including
community biogas are 0.4 million units under current trend. 0.8 million units under
medium growth scenario a nd 1.5 million units under high growth scenario.
3.2 Liquid Biofuel
Development Objective: To develop liquid biofuel technology to substitute/
supplement existing primitive bio-mass energy use substitution of imported petroleum
products and meet energy requirement for new economic activities in the rural areas.
Policy and Strategy:
• To create awareness of biofuel technology among decision and policy makers at
central and local level, academic institutions and potential end-users.
• To promote research, development and demonstration of biofuel technology for
income generating activities, environment protection, bio-diversity conservation
and as an alternative to imported petroleum products.
• To develop human resource required for research and development in the
development of liquid biofuel technology.
• To commercialize proven biofuel technology to mobilize local resource and create
rural economic activities.
• To promote environmental protection and biodiversity conservation through
plantation of oil-bearing plants in the barren marginal lands where crop farming is
not possible.

Sectoral Programme
In concurrence with the objectives and policy, the programmes of liquid biofuel
should be designed and develop to commercialize it. The awareness programmes
should be carried out along with the demonstration of liquid biofuel technology.
Research and development programme will also be necessary to be continued to make
it technically-sound and economically viable. Programme relating to plantation of oilbearing
plants in the ban-en marginal lands would be beneficial from environment as
well energy perspective.
3.3 Solid Biomass
Development objective: To develop and commercialize solid biomass technology,
such as briquettes, gasifier, cogeneration etc. to substitute/supplement existing
biomass energy use substitution of imported petroleum products and meet energy
requirement for new economic activities in the rural areas.
Policy and Strategy:
• To create awareness of biomass technology among decision and policy makers at
central and local level, academic institutions and potential end-users.
• To promote research, development and demonstration of biomass technology for
income generating activities, environment protection and as an alternative to other
sources of energy.
• To develop human resource required for research and development in the
development of solid biomass technology.
• To commercialize proven biomass technology to mobilize local resource and
create rural economic activities and industrial applications.
Sectoral Programme
The programmes related to solid biomass technology include briquetting, gasifier, etc.
The programmes envisaged to realize the stated objectives include support
programme with fiscal incentive for promotion of briquetting industries at regional
district level. The programmes of dissemination of bee-hive briquette and other
similar technology that utilize local forest-waste and agro-waste to produce high
quality solid biomass energy making at local level are required to be formulated and
implemented with the support of local level institutions and people. In addition,
human resource development programme including appropriate training for users
specially household women as well as high level manpower required for research and
development in areas of solid bio-mass technology will be executed.
3.4 Improved Cooking Stove
Development objective: To develop and promote improved cooking stoves vigorously
to achieve environmental and socio-economic benefits in terms of reduced drudgery
for women and children, cleaner kitchens and forest conservation.

Policy and Strategy:
To create awareness of ICS technology among decision and policy makers at central
and local level, academic institutions and potential end-users.
• To launch complementary income generating ac tivities and integrate ICS with
rural development and income generating activities. A special focus will be given
to women's involvement in all ICS programmes.
• The AEPC should facilitate, monitor and evaluate ICS dissemination programme.
• Institutions already working on R&D and dissemination should be morally and
financially strengthened and encouraged with frequent interactions among the
researchers, extension agencies and the policy makers. The research and
development in ICS will be focussed on matching technology and local needs.
• To develop human resource required for research and development in the design
and extension of efficient stove, and
Sectoral Programme
Development and dissemination of ICS for use in commercial activities like
restaurants and large scale cooking will be promoted. Human resource development in
terms of training extension workers and rural community mobilization will be major
activity in human resource development. The programmes envisaged to realize the
stated objectives include support programme with fiscal incentive for promotion and
dissemination of ICS. The extension programme of improved cook stoves (ICS) based
on local materials will be preferred.
4. Wind Energy
Development objective: To develop and promote wind energy technology to meet
energy requirement for new economic activities in the rural areas.
Specific objectives:
• To prepare wind/map atlas of the country
• To create awareness of wind energy technology among decision and policy
makers at central and local level, academic institutions and potential end- users.
• To promote research, development and demonstration of wind energy technology
for income generating activities, environment protection and as an alternative to
other sources of energy.
• To develop human resource required for research, development, installation,
manufacturing of wind energy plants.
• To commercialize wind energy technology to mobilize local resources and create
rural economic activities.

• To promote wind pumping technology for irrigation, wind-PV, wind-MH hybrid
system for rural electrification.
Sectoral Programme
The major endeavor in wind energy should be towards preparation of wind/map atlas
of the country. Creation of awareness of wind energy technology among decision and
policy makers, research and development as well as users is an important aspect and •
should be launched. The programme of wind fanning of moderate size in identified
areas should be developed and implemented. Demonstration wind farming can be an
initial step towards extensive wind farming in the potential areas. During the early
periods of REPPON small wind systems may be tried in demonstration scale and if
found suitable should be promoted through incentive packages to attract the private
sector entrepreneurs.
The indicative target is to install 2 MW generating capacity of wind energy under
current trend. 102.5 MW under medium growth scenario and 205 MW high growth
scenario by the end of 2020.
5. Geothermal
Development objective: To promote the use of geothermal energy to meet energy
requirement for new economic activities in the rural areas.
Specific objectives :
• To prepare inventory of thermal springs and access its potentialities.
• To launch pilot projects for various applications of geothermal energy.
• To create awareness of geothermal energy among decision and policy makers at
central and local level, academic institutions and potential end-users.
• To promote research, development and demonstration of geothermal energytechnology
for income generating activities, environment protection and as an
alternative to other sources of energy.
• To develop human resource required for research, development and exploitation
of geothermal energy resources.
Sectoral Programme
In order to exploit the geothermal resource of the country and thereby achieve the
objectives stated above, the survey, identification and inventory of thermal springs as
well as the potentiality and inventory related programmes should be the major focus
during the first periodic plan of the REPPON. Programme consisting of pilot projects
as well as demonstration schemes should be developed in successive plan periods.
Besides, human resource development programme is also important and should be
persuaded. Along with these programmes, awareness programme will also be
launched with the objective of making aware the decision and policy makers at central
and local level, academic institutions and potential end-users about its importance.

12. DIRECTION FOR THE FOLLOW-UP OF REPPON
The REPPON exercise has been a major initiative in addressing the perspective for
the renewable energy development in Nepal. The exercise conducted under REPPON
is in line with Nepal's broader development objective and Energy Perspective Plan.
1995 - undertaken by the National Planning Commission Secretaria t. It is however,
important to realize that the perspective planning exercise like this is an iterative
process that requires continuous update and upgrade as more information become
available.
The present exercise has been limited to formulation of approach for the development
of RETs. The issues and barriers in the renewable energy technology have also been
analyzed and accordingly development strategies were outlined. However, medium
and short term planning targets and activities have been deliberately avoided and need
to be taken up as follow-up activity needing immediate attention.
One of the activities recommended to be immediately taken-up is institutionalization
of REPPON including formal adoption of the plan and identification of institution that
formally owns and implement the plan. The REPPON could be owned by institution
like NPC at policy adoption in HMG/N's periodic plan and Ministry of Science and
Technology should take-up implementation responsibility through its Alternative
Energy Promotion Center. AEPC could further take a lead role in facilitating
continuous upgrading and updating the REPPON.
As has been focussed on the long-tern future outlook of the development of RETs in
Nepal (Chapter 8) primarily, the development of RETs has to be demand driven.
Therefore, renewable energy promotion and development will have to be based upon
decentralized rural energy planning with full community participation. The present
model adopted by Rural Energy Development Programme (REDP/UNDP) may be
explored for wider application in all VDCs of Nepal.

REFERENCES AND BIBLIOGRAPHY
1. Water and Energy Commission Secretariat. Nepal (WECS) 1999
2. Update and Compilation of Regional Energy Profiles of Nepal. Submitted by DE \
Consultants. (WECS)l995
3. Perspective Energy Plan for Nepal (PEP). National Planning Commission (NPC).
(NPC/PEP) April 1995
4. Energy Sector Synopsis Report. PEP Supporting document No. 1. HMG. WECS.
April 1994
5. The Ninth Five Year Plan (1997-2002). HMG. National Planning Commission.
Nepal. (NPC) July 1998
6. Draft Report for Inventory on Solar Water Heating System and Its Technological
Assessment for Household Adoption in Nepal-Submitted by NESS to WECS.1998
7. Wind Power in Nepal. Final Report and Recommendations. Submitted to UNDP
(UNDP Ref. No. INT 90 R11). D angrid Consult. July 1992
8. The Eighth Five Year Plan (1992-1997). HMG. National Planning Commission.
Nepal. (NPC). 1992
9. Report for the Task Force for the Preparation of Ninth Five Year Plan. Science
and Technology and Other Energy. National Planning Commission (NPC). 1997
10. Alternative Energy Technology: An Overview and Assessment. PEP Supporting
document No.3. HMG. WECS. 1994/95
11. A Year in Review (FY 1998/99). Nepal Electricity Authority. August 1999
12. Nepal Agriculture Perspective Plan. APROCS. June 1995
13. Statistical Pocket Book. HMG. NPC. CBS. 1998
14. Economic Survey. Fiscal Year 1998-99. HMG. Ministry of Finance. 1999
15. A Review of the Biogas Programme in Nepal. Research Report Series No. 42.
Winrock International. November 1999
16. An Introduction to Biogas Technology. BSP. 1999
17. The Environment Almanac. 1992. World Resources Institute, Houtihton Mifflain
Company

Annex 1
Participants List for Mini Workshop on Biogas
1/5/2000(2056/9/21)
The Workshop was chaired by Prof. Dr. Binayak Bhadra
S.N. Name Organisation
Contact Address
Tel.: Fax: Email:
1 Dharam K.C. AEPDF-Nepal 267372 524755 aepdf@nbgc.mos.com.np
2 A. B. Karki (Dr.) Free-Lancer 535537
3 B. Bhadra (Dr.) CEDA 526338 527290 binayak@biprav.wlink.com.np
4 K. B. Karki(Dr.) NARC 530977 Krishna@drkbk.wlink.com.np
5 S. Patrabansa (Dr) RECAST 330348 331303 tu@recast.mos.com.np
6 G. P. Devkota NBPG 491116 nbpg@nbpg.wlink.com.np
7 G. R. Pokharel CES 532235
8 G. B. Bhandari ADB/N 292397 252397
9 J. N. Shrestha (Prof.) CES 532235
10 K. M. Gautam CMS 482201 cmsnepal@cms.wlink.com.np
11 N. R. Baidya CRTN 257645 crt@wlink.com.np
12 P. P. Regmi East Consult 412062 417895
13 R. B. Adhikari ERC/CES 248852 crt@wlink.com.np
14 R. K. Pokharel LGP/Nepal 523159
15 S. Bajgain BSP/SNV 521742 snvbsp@wlink.com.np
16 S.L. Baidya AEPC 522520
17 S. K. Sapkota AEPC 522520 542397 energy@aepc.wlink.com.np
18 S. L. Shrestha XPC 241424
19 U.M. Malla East Consult 412062 417895 eastco@wlink.com.np
20 V. B. Amatya CEE 472831 227185

Participants List of Mini Workshop on Micro -hydro
7 Jan, 2000 (2056/9/23)
The Workshop was chaired by Prof. Dr. Binayak B-hadra
S.N. Name Organisation Contact Address
Tel.: Fax: Email:
1 Arjun Bdr. K.C. FEED 539044
2 Bhola Shrestha ITDG 529815 bhola@itdg.wlink.com.np
3 Bikram Raj Pradhan NYSE. 522167 527857
4 B. Bhadra(Dr) CEDA 526338
5 D. Adhikari ESAP 539390 539392 esap
6 G. R. Pokharel CES 532235 521985
7 Govind Nepal (Dr.) Earth consult 354303 gnepal@nidarshan.wlink.com.np
8 G. B. Bhandari ADB/N 252357 252397
9 J. N. Shrestha (Prof) CES 532235 521985
10 L. B. Silpakar{Dr.) NEA 4S2286 247125 redip@wlink.com.np
11 R. B. Adhikari CES/CRE 248852 cre@cesl.com.np
12 R. D. Joshi-(Dr.) IOE 532505
13 S. L. Shrestha NPC 241424
14 S. L. Vaidya AEPC 522520
15 Sarish Gautani REDP 520048 521547
16 Surendra Mathema NMHDA 230678
17 V. B. Amatya CEE 227699 227185 vbamatya@wecs.gov.np
18 Yub Raj Poudel RADC 522034 522014

Participants List of Mini Workshop on Solar PV/Thermal, Biomass
Briquetting/Gasifier and Cogeneration Tec hnologies
12 Jan. 2000(2056/9/28)
The Workshop was chaired by Prof. Dr. Binayak Bhadra
S.N. Name Organisation
Contact Address
Tel.: Fax: Email:
1 Arjun Bdr.K.C. FEED 543940
2 B. Bhadra (Dr.) CEDA 526338 527290
3 D. K. Sharma(Dr) IOE 537516 537516
226703
4 G. R. Pokharel CES 532235 5219S5
5 G. Bhandari ADB/N 252357 252357
6 J. N. Shrestha (Prof.) CES 532235 521985
7 J. R. Pokharel (Dr.) Dean/1 OE
8 K. R. Shresrha(Dr.) CEE 242993 220161 cee@mos.com.np
9 L. K. Shrestha CRTN 260165 257922 crt@wlink.com.np
10 M. Maharjan AEPC 543497 542397
11 N. P. Shrestha Sun Works 330854 331677 sunworks@swn.wlink.com.np
12 R. B. Adhikari CRE 248852 228976 cre@cese.com.np
13 R. N.Bhattrai !OE 542054
14 R. K. Pandes AERN 421678 416356 aeroleb@wlink.com.np
15 R. Munankami CRT'N 260165 257922 crt@wlink.com.np
16 R. P. Shrivastav BYS 360440 262457 Prasad@net.wlink.np
17 S. Palrabansh (Dr.) RECAST 330348 331303 tu@recast.mos.com.np
18 S. L. Shrestha NPC 241424
19 T. Devkota REDP 520048
20 V. B. Amatya CEE 227699 227185 vbamatya@wecs.gov.np
21 V. M. Shrcsiha CRE 418362
22 Y. R. Poudel RADE 522034 522014

Participants list of Mini-Workshop on Geothermal, Wind, and
Liquid Biofuel 9 Jan 2000 (2056/9/25)
The Workshop was chaired by Prof. Dr. R.D. Joshi
S.N. Name Organisation Contact Address
Phone (Off.) Phone (Res.) Fax
1 A. B. K.C. FEED 543740
2 G. B. Bhandari ADB/N 252357 352417
3 G.R. Pokharel CES 532235 521985
4 G.L. Shrestha (Dr.) Green Energy 248152 410857 410857
5 J.N. Shrestha CES 532235 525011 521985
6 M.P. Dhungel EDC 245990 423074
7 M. Ranjit RECAST
8 M. Maharjan AEPC 522520
9 R.B. Adhikari CRE/CES 248852 351052 228976
10 R.D. Joshi (Dr.) IOE 543081
11 R.P. Bashyal (Dr.) DoM&E 416521 414011
12 R.P. Tandukar PEEP 410605 478693
13 R. Shrestha GEM/Nepal 248152 241413
14 R. Shrestha " 248452 410857 410857
15 S.L. Shrestha NPC 241424 260090
16 S.M. Tuladhar (Dr.) RECAST/T.U. 330348 260911 331303
17 S. Gautam REDP 520048
18 S. Mathema MHDA 230678
19 V.B. Amatya CEE 472831