Executive Summary
GridVille Program of Kathmandu University is a joint KU-NTNU project, whose objectives align with the United Nations Sustainable Development Goals of ensuring access to affordable, reliable, sustainable, and modern energy for all. To effectuate its objectives, GridVille has been actively engaged in communities of Nepal, where there is little to no source of sustainable energy systems. Nepal being a country with higher potential in energy production through renewable sources, has still been unable to fulfil the national requirement. One of the challenges that can be seen is the lack of proper legal framework and its intervention. To recognize and solve such problems, there is an eminent need to understand the aspects of energy and its infrastructure from a multi-disciplinary approach. Engineers, policy experts, financial managers and all the stakeholders, who have the technical expertise in this matter, must therefore come together to establish a sustainable energy market for Nepal. The National Renewable Energy and Policy Symposium 2023 is thus an opportunity to discuss various aspects of energy, including production, distribution, and consumption, as well as the legal frameworks that govern the industry through multi-disciplinary perspectives. The discussion will be focused on the need for the assessment of national policies, interventions, local and regional support required for the technology transfer in Nepal with the expectation of potential sustainable renewable energy policy framework recommendations by the end of the symposium.
Background
With the rise in the global temperature propelled by the global greenhouse emission alternative energy concepts are coming to surface. As of 2020, the transportation sector generated the largest part of the gas emission sharing 27% of global greenhouse gas emission followed by electricity production with 25% share and is expected to significantly reduce the global greenhouse emission by turning these sectors into green. Global emissions from fuel combustion are dominated by Coal (45%), oil (32%) and natural gas (22%)3. China and US together are responsible for 45% global fuel combustion emissions followed by EU, India, Russian Federation and Japan3. Regarding the same, use of energy resources, systems and technologies is taking both the political and business momentum. Especially, effects of GHG emissions due to non-renewable resources and consequent health and economic problems are alarming. Countries and international organizations are thriving toward carbon neutrality and making policies accordingly.
China has demonstrated its commitment to renewable energy by implementing robust policies such as feed-in tariffs, renewable portfolio standards, and renewable energy certificates. These measures have stimulated significant investment in renewable energy projects, leading to a rapid expansion of wind, hydro, hydrogen and, solar power capacity in the country. Norway, on the other hand, has prioritized the development of hydroelectric power and established strong support mechanisms, including feed-in tariffs and tax incentives, to promote renewable energy adoption. India has set ambitious renewable energy targets to increase the share of renewables in its energy mix. The target is to achieve 450 gigawatts (GW) of renewable energy capacity by 2030, including 280 GW from solar, 140 GW from wind, and 10 GW from bioenergy. Other countries including Germany, Brazil, NewZealand US and so on have also launched impressive and ambitious energy policies. By examining and observing such policies, Nepal can identify key elements of effective renewable energy policies and tailor them to its own unique context, accelerating its transition to a sustainable energy future.
The international scenario emphasizes the importance of renewable energy and mitigating climate change. As a signatory to international agreements and commitments, including the Paris Agreement, Nepal has a responsibility to align its energy policies with global sustainability objectives. Nepal’s current energy situation heavily relies on fossil fuels and traditional biomass, causing environmental degradation and hindering economic growth. the environmental impact of fossil fuel use brings health issues and exacerbates climate-related concerns, such as the melting of snow and glaciers, which threaten water resources and agricultural productivity. By adopting robust renewable energy policies, Nepal can mitigate emissions, bolster energy security, drive economic growth, safeguard public health, and protect its environment, ensuring a sustainable and prosperous future. Lessons learned from countries that have effectively addressed the energy trilemma by prioritizing renewable energy can guide Nepal in formulating effective policies tailored to its own unique circumstances
Climate change impacts like erratic weather and increased vulnerability to natural disasters highlight the need for transitioning to renewable energy sources. Addressing Nepal’s energy challenges requires a multifaceted approach that considers various sectors. Renewable energy policies should align with Nepal’s goals in areas like the economy, food security, and the environment. Embracing renewable energy can create jobs, attract investments, and foster innovation[1]. Transitioning to clean energy enhances energy security, reduces dependence on costly fossil fuel imports, and allocates resources to other development priorities. Renewable energy policies ensure food security through clean and reliable energy for agriculture, promoting sustainable practices and mitigating climate change impacts on yields1. Nepal shares 0.10 % of global GHG emissions and has climate vulnerability ranking of 126 and human development index ranking 1432. Renewable sources reduce greenhouse gas emissions, air pollution, and ecological degradation, aligning with Nepal’s commitment to biodiversity and ecological balance. Nepal can become a regional renewable energy leader, fostering economic cooperation and integration. By adopting appropriate policies, Nepal can capitalize on its resources, engage in energy trade, and contribute to regional security and prosperity.
Additionally, implementing robust renewable energy policies will enhance Nepal’s international standing, promote collaboration with global partners, and attract international investments in the renewable energy sector1. Nepal’s second NDC has set activity based and policy targets in key areas that it aims to achieve by 20302. It is more ambitious in terms of its renewable energy coverage and contribution given the strengthened policy measures on updates on energy targets which will contribute to cumulative emission reduction. For the first time the country has committed to achieving net zero greenhouse gas emission by 2045[2]. Thus, it is important to make renewable energy mainstream resource through increased access, knowledge and adaptability contributing for the improved living conditions of people in Nepal. To address these challenges and steer Nepal towards a greener future, it is essential to establish robust renewable energy policies. These policies should encompass a comprehensive framework that promotes renewable energy development, encourages private investments, facilitates technology transfer, and ensures the integration of renewables into the existing energy infrastructure.
The proposed series of conferences will bring together professionals from industry, academia, business, law, academia, and governmental policy making bodies together at place. At the end it is aimed to present a roadmap of policy recommendations that will guide Nepal towards achieving its carbon-neutral goal by 2045.
Expected Outcomes
- Identify the specific renewable energy policies required in Nepal to accomplish the country’s climate goal.
- Facilitate knowledge exchange and collaboration among experts from the energy sector, bank sector, law sector and other relevant domain.
- Discuss and analyse the existing energy scenario in Nepal, including challenges and opportunities for renewable energy development.
- Explore international best practices and lessons learned in renewable energy policy formulation and implementation.
- Assess the feasibility and effectiveness of targeted policy measures.
- Foster a comprehensive understanding of the role of renewable energy in mitigating climate change and promoting sustainable development in Nepal.
- Generate actionable recommendations and a roadmap of policy for energy transition and renewable energy-based economy.
- Raise awareness about the importance of renewable energy policies and their impact on Nepal’s socio-economic development and environmental sustainability.
- Share the outcomes and policy recommendations with relevant government agencies, policymakers, and stakeholders to drive policy implementation and accelerate the adoption of renewable energy technologies in Nepal.
[1] Ghimire, L. P., & Kim, Y. (2018). An analysis on barriers to renewable energy development in the context of Nepal using AHP. Renewable Energy, 129, 446–456. https://doi.org/10.1016/j.renene.2018.06.011
[2] Nepal. UNDP Climate Promise. (n.d.). https://climatepromise.undp.org/what-we-do/where-we-work/nepal
[3] IEA. (2022). World Energy Outlook 2022. www.iea.org/t&c/