DENMARK AND NORWAY SUPPORT RENEWABLE ENERGY IN NEPAL WITH NRS 3 BILLION

Today the ambassadors of Denmark and Norway, on behalf of their respective Governments, signed an agreement with the Ministry of Finance for the provision of more than NRS 3 Billion in grant support to renewable energy in Nepal over a five-year period (2007-2012). The support is provided through a second phase of the Energy Sector Assistance Programme (ESAP), which in its first phase originally was supported by Denmark. The Programme will be implemented by the Alternative Energy Promotion Centre (AEPC).

In connection with the signing the two Nordic Ambassadors said:

“The Programme will provide institutional and technical support to the Government of Nepal to strengthen its capacity to deliver energy to rural areas. This will include support to development of a new national policy for rural energy delivery, which covers both renewable and non-renewable sources. The Programme will support renewable energy solutions through the Rural Energy Fund that will provide financial subsidies for consumers who wish to invest in these solutions.

The Programme is expected to provide energy solutions to more than 1 million households in Nepal. Access to clean, cheap and reliable energy in remote rural areas can make an important contribution to improvement of health, education and reduction of poverty. By promoting rural development, the programme will help support and sustain the peace process in Nepal. Denmark and Norway have a long tradition of investing in renewable energy sources and we are proud to be able to help the people of Nepal take advantage of these experiences.”

The programme will focus on three solutions; Biomass energy, which is cleaner and more energy efficient than traditional cooking fires, Micro and Mini Hydro Power installations of up to 1 MW that can provide rural communities with electricity as well as add capacity to the National Grid in a time with extreme electricity shortage in the Country and Solar Home systems of around 36 Wp, which can power lights and small appliances in the households where they are installed. In the second phase new solutions will also be tested, such as small solar powered lamps (Solar Tukis) of less than 10 Wp.