Rural Energy Policy, 2006

There are huge possibilities of producing energy in Nepal. Availability of enormous water resources and topographic situation gives rise to a potential for 83,000 MW of hydropower of which about 43,000 MW of power production seems to be economically and technically feasible. Till now, where only about 563 MW has been harnessed which is mainly consumed in urban areas, the rural and remote areas of the nation has no access to reliable and clean energy. In the other hand, in spite of enough possibility of producing energy in rural areas in the form of biogas, solar energy, wind energy, improved water mill, micro and mini hydropower, it has not been used as per the needs.

In Nepal, only 160,000 biogas plants have been installed out of the installation potential of 1.9 million biogas plants. There has been savings in the energy consumption by installing 250,000 improved cooking stoves. Similarly, in spite of huge potential of solar energy, only 75,000 solar home systems have been installed. With regard to the wind energy, it has not been possible to harness its potential. Up to now about 2,000 traditional water mills have been improved. Onlyabout 8 MW power is produced through micro hydro. These efforts have made it possible toprovide electricity services to about 40 percent of the population in the country. In the ruralareas, only 29 percent of the population has access to electricity.

There has been difficulty in availability of kerosene and LPG due to low purchasing power of the people and adverse topographic condition, most rural population are compelled to meet their energy needs through traditional energy sources like fuel-wood, dung cake, rice husk etc. Statistics show that 77 percent of the energy demand is met by fuel wood, 9 percent by agricultural residues and animal dung, 14 percent by imported petroleum products, coal and electricity in the energy consumption of rural areas of Nepal. Since, 86 percent of the energy consumed in rural areas comes from the traditional sources, which results on environmental degradation and there has been reduction in agricultural production due to reduction inproductivity of agricultural land because of use of dung and agricultural residues. There has alsobeen adverse impact on the health of rural population mainly women and children because of useof traditional energy resources. Similarly, rural children are also deprived of opportunity ofeducation, as they have to spend most of time in collecting such energy source. In this context,there is ample possibility of improving the living standards of rural population by developingenvironment- friendly energy resources in rural areas by making financially affordable to reduce dependency on traditional and fossil fuel resources.

For more click following links:

http://www.aepc.gov.np/images/pdf/RE-Policy-2006.pdf