Grant scheme launched for promotion of energy efficiency

Kathmandu: A grant scheme has been introduced from today to optimize and promote energy efficiency in industries in Nepal.

The Renewable Energy and Energy Efficiency Programme Recovery Programme (REEEP-GREEN) is managed by the Rastriya Banijya Bank (RBB) Limited and aimed at reducing energy consumption through efficient usage of energy thereby further promoting sustainable industrial development.

According to the press statement issued to offer insights into the scheme, the scheme also encourages enterprises and industries (energy-intensive sector) to reduce carbon emission.

Under this initiative, partial grants will be provided through the RBB to implement the energy efficiency measures recommended by the energy auditors, read the statement.

As per the grant operation guidelines, the partial grant will be a certain percentage of the total investment in adopting energy efficiency measures. To avail the grant, enterprises and industries must meet the environmental standards and exercise principles of decent work.

This scheme also aspires to encourage entrepreneurs and industrialists to invest in the technologies for energy efficiency technologies. This scheme is also expected to reduce the energy cost, an important aspect of energy efficiency, as well as environmental benefits and foreign exchange reserve, the statement said.

The scheme aligns with the National Energy Efficiency Strategy 2018 adopted by the government of Nepal for promotion of energy efficiency in all energy consuming sectors for sustainable, reliable, efficient and quality use of available energy.

The initiation of this grant scheme is taken as an important step in bridging the gap between the awareness and implementation of efficient use of energy in Nepal’s industrial and business sector.

It covers wider goals as promotion of sustainable energy practices, integration of the concepts of economic cycle and encouraging decent work practices in the industry and business sectors.

Similarly, it is stated that the inauguration of this grant initiative outlines Nepal’s commitment to finding sustainable energy solutions, which will provide practical path to the industries to contribute towards energy conservation and climate-adaptation practices as well as to adopt the decent work principles.

German Agency for Development Assistance- GIZ – has been providing technical support to this programme implemented by the Ministry of Energy, Water Resources and Irrigation with financial assistance of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union.

RBB manages the energy promotion grant provided to the industries and enterprises under this programme which has the goal of fostering the appropriate situation for the participation of the regulators, institutional structures and the private sector required for the promotion of renewable energy and energy efficiency initiatives in Nepal. The programme also has the goal of promoting the sustainable use and production of energy.