Bidhya
Sharma Subedi and Pradeep Bhattarai
Nepal’s Nationally Determined Contribution (NDC) has emphasized the generation and consumption of clean energy as a key to achieving the target of net zero emission by 2045. It has targeted to generate 15,000 MW of clean energy by 2030, of which 5-10% will be from mini and micro hydropower, solar, wind, and bio-energy. Likewise, NDC has set a target to increase the sales of electric vehicles to 90% of all private passenger vehicles, including two-wheelers, and 60% of all four-wheeler public passenger vehicle sales by 2030. Moreover, the NDC has targeted to use of electric stoves as the primary cooking mode of 25% of households by 2030. The estimated cost of achieving the conditional mitigation targets is estimated at USD 25 billion while achieving the unconditional targets is estimated at USD 3.4 billion.
The government of Nepal has planned to add 715 MW of electricity to the national grid and increase annual per capita electricity consumption to 400 KW per hour. It also plans to provide electricity access to 100% of the population in the next two years. Nepali Rupees 75.10 billion (approximately USD 0.75 billion) has been allocated for electricity generation, transmission line expansion, and increased electricity use in the current fiscal year 2022/23. These plans are aligned with and contribute to achieving the above-mentioned NDC targets. However, the government needs to embrace an idea of an energy mix and scale up investment in renewable energy other than hydroelectricity.
This year, the government introduced the ‘One House, One Electric Stove’ campaign to substitute imported Liquefied Petroleum Gases (LPGs) with electric stoves. This is an important policy shift that not only expands the utilization of clean energy but also supports macroeconomic stability. An import of LPG has increased exponentially in the last decade. The Department of Customs states, The Last fiscal year showed import of 360.03 million kgs of LPG worth of Rs. 40.64 billion being imported.
Nepal has done a lot on electric cooking as shared by Pooja Sharma, Practical Action Nepal in the discussion program on “Energy Policy Dialogue on Implementing NDC targets: Energy and Climate Change in Budget of FY 2022/23” organized on August 11, 2022, by Prakriti Resources Centre and WWF Nepal. She highlighted on awareness to users, especially women as many are facing problems in using electric stoves. The government should develop policies to check the quality of stoves and maintenance services. Reliable and affordable electricity supply is a prerequisite in scaling up the use of electric appliances, she added.
The participants of the discussion program opined that the federal budget has rightly prioritized e-cooking, e-vehicles, and the generation of clean energy. These will support Nepal to progress toward the pathway as directed in the NDC. The following suggestions were made for furthering the progress made in the energy sector.
Invest in the development of infrastructure required for energy use in the country, and awareness among the citizens.
Scale up investment on renewable energy sources to promote the energy mix.
Develop a detailed plan to ensure the effective implementation of the program
Continuation of progressive programs in the future years.
Track the achievements made against the NDC targets over the years.
In summary, NDC and the federal budget has set the right direction for Nepal to progress towards an energy transition with a focus on the generation and consumption of clean energy sources. The government needs to continue and scale up the investment in the energy sector to make significant progress on achieving the energy-related targets in NDC.
