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The roadmap has found that Nepal has made significant progress in increasing access to electricity in recent years. Based on this progress, it is estimated that Nepal will achieve universal access to electricity by 2024,3 earlier than the timeline mentioned in the Sustainable Development Goals Status and Roadmap 2016-2030. However, universal access to clean cooking technology and fuel has been, and remains, a challenge as more than half of the population is still relying on polluting cooking fuels and technology. Well-planned and concerted efforts will need to be made to achieve universal access to clean cooking by 2030. Energy efficiency improvement needs to be boosted across different sectors in order to achieve a 2.98 per cent annual improvement, reducing energy intensity to 3.5 megajoules per United States dollar by 2030.

Being a landlocked country with a mountainous topography and no proven fossil fuel reserve, Nepal is heavily reliant on imported energy resources (i.e., oil products); therefore, energy security is high on the national agenda. On the bright side, Nepal’s abundant hydro resources supply two-thirds of the country’s electricity demand. Small-scale renewable energy resources – mainly micro- and mini-hydro, and solar energy – are also used in meeting the electricity demand of remote and very remote areas. In addition, in its second NDC, Nepal has set out a plan for increasing its clean electricity exports to neighbouring countries. The NEXSTEP analysis has examined the usage of fossil fuel in the country e.g., in the transport sector and identified ways for Nepal to reduce its reliance on imported fuel to safeguard its energy sector from price and supply shocks.

The roadmap sets out four key policy recommendations to help Nepal achieve the SDG 7 targets as well as reduce reliance on imported energy sources:
  1. To ensure electricity access is on track to achieve the SDG 7 target by 2024, decentralised energy generation using indigenous resources such as wind and solar power should be utilized. Given Nepal’s complex mountainous terrain and last-mile connectivity challenges, these approaches are needed to complement grid extensions;
  1. Electric cooking stoves should be the priority technology in improving clean cooking access. More effort is required from the Government to close the clean cooking gap. NEXSTEP analysis suggests that electric cooking stoves may be more appropriate technology, in terms of the health benefits, cost effectiveness, and little maintenance and follow-up requirements. However, comprehensive policies are required for promoting the uptake and long-term adoption of electric cooking stoves;
  1. Transport electrification strategies provide multi-fold benefits. Vigorous adoption of electric vehicles reduces the demand for oil products, hence reducing Nepal’s reliance on imported energy resources. At the same time, it can contribute to climate mitigation by using Nepal’s zero carbon hydropower-based electricity;
  1. Energy efficiency measures should be encouraged with a whole-economy approach. Substantial energy savings can be achieved through sustainable heating technologies in the residential and commercial sectors, while utilization of efficient household appliances reduces electricity demand. Significant energy reduction can be similarly achieved through industry sector best practices.

The roadmap has found that Nepal has made significant progress in increasing access to electricity in recent years. Based on this progress, it is estimated that Nepal will achieve universal access to electricity by 2024,3 earlier than the timeline mentioned in the Sustainable Development Goals Status and Roadmap 2016-2030. However, universal access to clean cooking technology and fuel has been, and remains, a challenge as more than half of the population is still relying on polluting cooking fuels and technology. Well-planned and concerted efforts will need to be made to achieve universal access to clean cooking by 2030. Energy efficiency improvement needs to be boosted across different sectors in order to achieve a 2.98 per cent annual improvement, reducing energy intensity to 3.5 megajoules per United States dollar by 2030.

Being a landlocked country with a mountainous topography and no proven fossil fuel reserve, Nepal is heavily reliant on imported energy resources (i.e., oil products); therefore, energy security is high on the national agenda. On the bright side, Nepal’s abundant hydro resources supply two-thirds of the country’s electricity demand. Small-scale renewable energy resources – mainly micro- and mini-hydro, and solar energy – are also used in meeting the electricity demand of remote and very remote areas. In addition, in its second NDC, Nepal has set out a plan for increasing its clean electricity exports to neighbouring countries. The NEXSTEP analysis has examined the usage of fossil fuel in the country e.g., in the transport sector and identified ways for Nepal to reduce its reliance on imported fuel to safeguard its energy sector from price and supply shocks.

The roadmap sets out four key policy recommendations to help Nepal achieve the SDG 7 targets as well as reduce reliance on imported energy sources:

  1. To ensure electricity access is on track to achieve the SDG 7 target by 2024, decentralised energy generation using indigenous resources such as wind and solar power should be utilized. Given Nepal’s complex mountainous terrain and last-mile connectivity challenges, these approaches are needed to complement grid extensions;
  1. Electric cooking stoves should be the priority technology in improving clean cooking access. More effort is required from the Government to close the clean cooking gap. NEXSTEP analysis suggests that electric cooking stoves may be more appropriate technology, in terms of the health benefits, cost effectiveness, and little maintenance and follow-up requirements. However, comprehensive policies are required for promoting the uptake and long-term adoption of electric cooking stoves;
  1. Transport electrification strategies provide multi-fold benefits. Vigorous adoption of electric vehicles reduces the demand for oil products, hence reducing Nepal’s reliance on imported energy resources. At the same time, it can contribute to climate mitigation by using Nepal’s zero carbon hydropower-based electricity;
  1. Energy efficiency measures should be encouraged with a whole-economy approach. Substantial energy savings can be achieved through sustainable heating technologies in the residential and commercial sectors, while utilization of efficient household appliances reduces electricity demand. Significant energy reduction can be similarly achieved through industry sector best practices.

Read the full report here.

Contact
Energy Division +66 2 288 1234 [email protected]