Nepal has undertaken huge projects for the nation’s electrification, identifying hydroelectricity as a major energy source given its river-rich mountainous and hilly terrain. The effort aligns with the global movement to eliminate non-renewable energy sources. The new Electricity Bill, 2080, has prioritized increasing access to electricity in rural areas by coordinating all three tiers of government as one of its primary objectives. The Nepalese effort, per se, is not just about replacing non-renewable sources but also about achieving self-dependence and modernization of energy sources. This transition aims to create a resilient energy system that not only meets domestic demand but also enables Nepal to harness its energy surplus for economic growth, especially for export opportunities.
Nepal relies heavily on Biomass as the primary source of energy, particularly in the household sector, which amounts to 64.17% of the National Energy Consumption 2021/22.
Though the percentage of use of this traditional biomass energy, which includes firewood, cattle dung, and agricultural residues, has decreased significantly from 88% in 2003/2004[ https://nepal.gov.np:8443/NationalPortal/view-page?id=92 ], it is still the largest contributor of Energy, with rural population highly dependent on the resource. National Energy Efficiency Strategy (NEES) 2075 along with its sister policies has recognized the fact that biomass is a readily available energy source and neglect of it only aggravates the environmental and health impact arising from its use.
By modernizing and managing biomass energy sustainably, Nepal can mitigate these negative impacts while ensuring that this traditional resource continues to play a vital role in the country’s energy transition.
The observation indicates two parallel policies of the state indicating rapid electrification and efficient and renewable management of traditional biomass energy. Modernization of the Energy sector, therefore, consists of electrification, and modernization of traditional biomass energy, both of which are inherently tied to the self-dependency of our Nation-state. Electrification primarily aims to liberate the urban sector from the use of petroleum sources in either Industrial or Residential use, where traditional biomass is not readily available. Modernization of traditional biomass aims to make use of the energy source cleaner, healthier, and environment-friendly where traditional biomass sources are the cheapest and readily available. This dual approach ensures that Nepal addresses both urban and rural energy needs while fostering sustainable energy practices, reducing imports of fossil fuels, and mitigating the environmental and health impacts of inefficient energy use. It reflects a balanced strategy to harness diverse energy resources while prioritizing national resilience and sustainability.
The Rural Project of Electricity Bill, 2080
The Electricity Bill, 2080 is a further step of the Government of Nepal to accelerate hydro electricity production, distribution as well as consumption. For this the bill has two primary approaches, to end the monopoly of the Electricity Authority to ensure healthy competition which brings in plethora of competitive advantages. The other approach of the bill is to increase access to electricity, especially in rural areas or the areas where access to electricity hasn’t been realized. For this the Bill provisions the devolution of responsibilities to all three tiers of Government and coordinate their effort for rapid development of infrastructure. The bill also envisions small scale electricity production plants to be constructed by local levels for rural areas to access electricity readily. The bill aims to expedite rural electrification by mandating the construction of small-scale electricity production plants at the local level, designed to meet the immediate energy needs of rural communities. It also promotes the development of mini-grids and off-grid systems, ensuring that even remote and geographically challenging areas are electrified without delay. By ending monopoly in approval processes, encouraging public-private partnerships, and prioritizing rural infrastructure in national energy planning, the bill sets the foundation for swift and widespread electrification. This focus reflects Nepal’s commitment to bridging the urban-rural energy divide and ensuring that all citizens, regardless of location, benefit from reliable and sustainable electricity access.
Primarily there are two self-evident aspect of Nepal to increase reliance on Hydro-Electricity. With lack of coal or petroleum deposits, it is evident Nepal should promote both production and consumption from the source given its river rich mountainous and hilly terrain. Apart from that the hydro-electricity is renewable source of energy that aligns with Sustainable Development Goals as well as Global need and effort to decrease carbon emission. National Energy Efficiency Strategy 2075 envisions the same approach. Globally, countries with less favorable geography for hydropower have diversified their energy portfolios with alternatives such as flex fuels, compressed natural gas (CNG), compressed biogas (CBG), solar energy, wind energy, and nuclear energy to meet local energy demands.
These strategies are similarly guided by the SDGs and the pressing need to minimize reliance on fossil fuels. Nepal, leveraging its geographical advantage, is positioned to achieve these goals through hydropower while avoiding the costs and complexities associated with importing or developing alternative technologies.
Biomass: An important source of Energy
National Energy Efficiency Strategy (NEES) 2075 along with Biomass Energy Strategy 2075 has recognized the fact that biomass is the readily available energy source and neglect of it only aggravates the environmental and health impact arising from the use. Traditional biomass sources are largely neglected by urban conscience, such that it has become an amazing fact more than half energy used in Nepal is not electricity rather biomass, primarily fuel wood. People’s perception of biomass as a source of energy is vile, smelly, smoky, and hazardous to health. The perception of the traditional use of biomass is true to an extent, but modern and technological use of biomass is more cost-effective and nearly as environmentally friendly as hydroelectricity.
Technology as simple as The Improved Cookstoves (ICS), and Bio-Plants reduces hazards emerging from traditional biomass sources by improving combustion efficiency, reducing indoor air pollution, and decreasing the amount of fuel required.
These innovations make the use of biomass not only cleaner but also safer and more efficient for households, particularly in rural areas where access to electricity may be limited. These technologies help in reducing the health impacts associated with traditional cooking methods, such as respiratory diseases caused by smoke inhalation. There are research and technologies that utilize even firewood sustainably and healthily.
Biomass energy sources and animal farming can economically reinforce each other in a mutually beneficial way, supporting both the agricultural and energy sectors. Animal farming generates a significant amount of organic waste, such as manure, which, if left untreated, can release harmful greenhouse gases like methane into the atmosphere. This methane is a potent contributor to climate change, with a global warming potential many times greater than carbon dioxide (CO2). By integrating bio-plants with animal farming, this waste can be converted into valuable biogas, a clean and renewable energy source. Bio-plants, which utilize organic waste from animals, kitchens, and manure waste, can significantly reduce the release of methane into the atmosphere. Through anaerobic digestion, these waste materials are broken down by microorganisms in a controlled environment, producing biogas (mainly methane and CO2) that can be used as fuel for cooking, heating, or even generating electricity. This process not only captures methane that would otherwise escape into the environment but also prevents the waste from contaminating soil or water, improving overall environmental quality. In this way, bio-plants help to prevent the harmful environmental impact of methane while providing a clean, renewable source of energy.
India, with its growing transportation fleet running on flex-fuel and CNG, has demonstrated the importance of biofuels in reducing dependency on fossil fuels quickly and effectively. Nepal, with its abundant agricultural residues and organic waste, can follow suit by integrating biofuels into its energy strategy, especially for sectors where electrification is not feasible. Biofuels, such as biodiesel and biogas, can be produced from agricultural waste, providing a cleaner alternative to conventional fossil fuels and promoting energy independence in rural areas. Biofuels can help create new markets and value chains for agricultural residues, providing additional income for farmers and reducing the need to rely on imported fuels. The government must exercise caution regarding the exploitation of forest areas in the name of biofuel production. Unsustainable biomass extraction could exacerbate deforestation, which would further degrade the environment, contribute to soil erosion, and worsen the impacts of climate change.
Therefore, policies should be put in place to ensure that biomass is sourced responsibly, with a focus on maintaining forest cover and promoting agroforestry practices. New technologies and research must be deployed to make biomass energy more environmentally friendly and economically viable. Advanced biomass processing technologies, such as gasification, can increase the efficiency of converting biomass into useful energy, reducing emissions and waste.
Biomass Energy Strategy 2075: Sustainable Management
Biomass Energy Strategy 2075 recognizes biomass as a readily available energy source for rural households. It addresses the health and environmental hazards associated with traditional biomass usage, such as indoor air pollution and deforestation. By introducing technologies like Improved Cookstoves (ICS) and bio-plants, the strategy aims to make biomass usage cleaner, safer, and more efficient.
Biomass energy systems can integrate seamlessly with agriculture and animal farming. For example, organic waste from animal farming can be converted into biogas using bio-plants, reducing greenhouse gas emissions and producing clean energy for cooking and heating. This integration also yields valuable by-products like compost and slurry, supporting sustainable agriculture. The strategy also advocates for advanced biomass processing technologies, such as gasification, to improve efficiency and reduce emissions, ensuring that biomass remains an integral part of Nepal’s energy mix.
Renewable Energy Subsidy Policy 2016: Encouraging Adoption
The Renewable Energy Subsidy Policy 2016 seeks to enhance the adoption of renewable energy technologies, including biomass-based solutions. It provides financial incentives for biogas plants, improved cookstoves, and biomass gasifiers, making these technologies accessible to rural communities. The policy’s subsidy model aims to reduce the financial barriers to adopting clean energy technologies, thus encouraging rural households to transition away from traditional biomass usage.
This policy also supports the development of biofuels like biodiesel and bioethanol, which can partially replace fossil fuels in sectors where electrification is not feasible. By promoting biofuel production from agricultural residues and organic waste, the policy contributes to energy independence, reduces reliance on imports, and fosters rural economic development. However, it emphasizes responsible biomass sourcing to prevent deforestation and environmental degradation.
Electrification in Rural Areas
Nepal has readily available traditional biomass energy, which can be modernized using low-cost technologies to transform it into a cleaner and more efficient energy source. Neglecting this abundant resource in favor of over-electrification in rural residential sectors risks aggravating existing environmental and health impacts while diminishing efforts to modernize biomass energy sources.
Over-reliance on electrification could lead to the abandonment of readily available energy sources, reducing incentives to develop sustainable biomass technologies. This not only undermines efforts to align biomass energy with Sustainable Development Goals (SDGs) but also risks creating economic and environmental setbacks by discouraging agriculture and animal farming. Importantly, it denies sustainable and healthy utilization of firewood, the most cheaply and readily available resource, to the rural population. Households in some rural areas of Nepal have a connection to grid electricity but they continue to use traditional sources of energy like biomass for cooking or heating. Thus, although there is a connection to modern energy sources, the reliance on fuel wood and inefficient stoves continues. In addition, there are even cases when some people have access to modern energy sources but cannot afford them.
The shift away from biomass could make rural communities less reliant on integrated agricultural systems, thereby decreasing the production of natural fertilizers such as compost and slurry, valuable by-products of bio-plants. Neglecting biomass energy in favor of complete electrification could result in untreated methane and other greenhouse gases being released into the atmosphere from organic waste. By modernizing biomass energy sources, Nepal can mitigate these hazards and reduce dependence on fossil fuels like LPG, and support sustainable rural development.
The electrification of the nation, including in rural areas, should focus on transforming the Industry and Agriculture sectors. The industrial sector, which currently depends largely on petroleum and other non-renewable energy sources, must transition to hydroelectricity to reduce dependency on fossil fuels and align with sustainable development goals. Hydroelectricity offers a renewable, clean energy solution that can meet the growing energy needs of industries, especially those in energy-intensive sectors. Meanwhile, the agriculture sector, which has vast potential for technological improvement, needs to be transformed into a more energy- and technology-intensive industry. Currently, many agricultural practices are still heavily reliant on manual labor and inefficient energy use, resulting in low productivity. By adopting modern farming technologies, including electric-powered equipment, irrigation systems, and processing units, Nepal can significantly boost agricultural efficiency and sustainability. Certain farming equipment, which economically or practically cannot undergo electrification due to cost or practical limitations, must be adapted to run on biofuels. This would allow these sectors to transition away from traditional, polluting fuels and create more sustainable energy sources in rural areas.
Balancing Electrification and Biomass Modernization
The dual approach of electrification and biomass modernization reflects Nepal’s commitment to addressing diverse energy needs sustainably. Electrification focuses on reducing urban dependency on petroleum-based energy sources, while biomass modernization targets rural energy sustainability. Both approaches align with the SDGs, emphasizing clean, affordable, and reliable energy access.
Electrification of rural areas should prioritize industrial and agricultural transformation. Industries reliant on fossil fuels must transition to hydroelectricity, while agriculture should adopt energy-intensive technologies powered by electricity or biofuels. However, neglecting biomass in favor of over-electrification risks exacerbating environmental degradation and reducing rural economic resilience. By integrating biomass modernization with electrification initiatives, Nepal can achieve a balanced energy transition.
Nepal must strategically leverage its abundant hydropower potential for technology-intensive sectors like industry, agriculture, and transportation while simultaneously modernizing and sustainably managing its traditional biomass resources. Hydropower, with Nepal’s river-rich mountainous terrain, is ideal for driving industrialization, advancing technology-based agriculture, and fostering eco-friendly transportation. The recent shift in transportation with the adoption of electric vehicles demonstrates the potential of hydropower to reduce dependence on fossil fuels and support a cleaner energy future. Industry and agriculture remain among the least energy-consuming sectors, highlighting the need for strategic development to make them more energy-intensive and efficient, relying primarily on electricity.
Nepal must strategically harness its abundant hydropower potential while modernizing biomass energy systems. Hydropower should drive industrial and agricultural development, reducing reliance on fossil fuels and fostering a clean energy future. Concurrently, biomass—constituting the majority of the country’s energy consumption—must be modernized to align with sustainable practices. Policies like the Biomass Energy Strategy 2075 and Renewable Energy Subsidy Policy 2016 offer frameworks for achieving this, promoting cleaner, more efficient energy use in rural areas.
At the same time, traditional biomass, which constitutes 64.17% of Nepal’s national energy consumption and is heavily relied upon by rural households, must not be neglected. Rapid electrification and reduced biomass use, without a sustainable transition plan, can lead to unintended consequences, such as increased reliance on imported LPGs for cooking, aggravating the country’s trade imbalance and carbon footprint. Underutilized biomass releases untreated methane and other harmful gases into the atmosphere, further contributing to environmental degradation. Instead of moving away from biomass entirely, it should be modernized using low-cost technologies that align with sustainable development goals. Modernizing biomass energy can mitigate its health impacts, such as indoor air pollution, and reduce environmental degradation caused by inefficient use and deforestation. When harnessed properly, biomass can be a renewable and complementary energy source, supporting Nepal’s rural energy needs while aligning with broader goals of sustainability, energy security, and environmental conservation. A balanced approach that integrates hydropower for industrial and technological development with improved biomass management for household energy can create a practical and cost-effective energy source for rural communities.
Neglected or traditional use of biomass energy is a wasted resource that contributes more towards environmental and health problems. By modernizing biomass energy, Nepal can harness its full potential as a renewable resource while minimizing negative health and environmental impacts. This shift would also help diversify the country’s energy mix, reduce dependency on fossil fuels, and improve the lives of rural populations by providing access to cleaner and more reliable energy sources. Through the right mix of technology, research, and policy, Nepal can transition from the traditional, inefficient use of biomass to a more sustainable, modernized energy that supports both economic growth, self-dependence and environmental preservation.
By balancing hydropower development with biomass modernization, Nepal can create a resilient and sustainable energy system that supports economic growth, environmental preservation, and improved quality of life. These policies demonstrate the potential for a diversified energy portfolio to meet the country’s unique challenges and opportunities, ensuring a sustainable and equitable energy future.
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