Current status of renewable energy in Nepal: Opportunities and challenges

Energy is indispensible in modern society and is one of the most important components of socio-economic development. Nepal is one of the least developed countries with more than 80% of its population residing in rural communities. Per capita energy usage – often viewed as a key index of the development – in the country is far less than the global average per capita energy usage. The energy sector is dominated by the traditional energy sources such as fuel woods, crop residues and animal dung mainly for domestic usage contributing to about 86% of the national energy consumption. Currently 40% of the population has access to electricity, and the rural electrification accounts for only 29%. The majority of rural populations are meeting their energy needs by burning biomass in traditional stoves which has several environmental and public health issues. Nearly all fossil-derived fuels consumed in the country are imported in a refined form, and the perpetual increase in petroleum imports has adversely impacted the existing fragile economy of the country. Despite a huge potential in harnessing various renewable energy resources such as hydropower, solar power, wind energy and biofuels/bioenergy, these resources have not been sustainably captured due to geographical, technical, political and economical reasons. This paper presents a brief account of Nepal's renewable energy resources and the current status of various renewable energy technologies (RETs) such as micro-hydro, solar power, wind energy, biofuel/bioenergy, improved cook stoves, and improved water mill. It also highlights the opportunities and barriers for the development of RETs. Finally this paper presents some recommendations for the promotion, development and implementation of RETs in the country.