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Case Analysis

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2. Nepal is one of the few emerging economics committed to take actions to support the
united nations sustainable energy for all initiative. How could government of Nepal ensure
sustainable household energy use in the country?
Answer : About 87% of Nepals total primary energy supply comes from biomass which is
generally being used in the household level for cooking and space heating purposes by traditional
stoves with very low energy efficiency of less than 10%. Efficiency of other energy usage is also
far from satisfactory. Nepal has the highest energy intensity (i.e. amount of primary energy
consumed per unit GDP) in South Asia, which is 4.5 times higher than the world average, 1.8
times higher than India or China, 3.5 times higher than Bangladesh.
United nations Energy efficiency (EE) has, so far, not been able to draw national attention in
Nepal. Nepal has the lowest energy productivity among the South Asian countries. It
demonstrates, however, that Nepal has a great potential for efficiency improvement in its energy
sector. Energy saving potential from EE is, however, insignificant in the present context because
of low level of energy consumption. EE measures will become more and more attractive when
the situation of energy supply and consumption is improved in Nepal.

The following activities describe fields of work to be done in close cooperation mainly with the
Ministry of Energy . The coordination role of the Ministry also should allow integrating other
relevant stakeholders into the development of strategies, policies, and regulations.

The support to the Nepal Energy Information System (NEIS) should be continued and
intensified as more good practice examples will be achieved during the next phase by
various stakeholders. This could also include training of stakeholders to deliver relevant
The support to prepare an Energy Efficiency Strategy (EEST) draft should be continued
which also could include developing a concept for creation of an EE Entity on the base of
the EEST once it is approved by the cabinet.
The support to promotion and awareness raising measures together with relevant
implementing institutions and other organisations like media (e.g. energy weeks, fairs,
creating and utilizing a specific Energy Efficiency Award, etc.)
As the Sustainable Energy for all Programme (SE4All) has already started in Nepal,
support should be given to the relevant agency in integrating the EEST into the SE4All
process and in assisting the Ministry of Energy in its facilitating role coordinating the
topic of Energy Efficiency as one of the SE4all working areas.
Support for cogeneration of power from agricultural residues in potential industries like
sugar and pulp & paper.
After the approval of the Biomass Energy Strategy (BEST) and the EEST the following
activities can be taken up
Supporting the dissemination and M&E of the implementation of BEST and EEST
Supporting the Ministry of Energy in the conceptualization of the institutional set-up of
an EE Entity and necessary attunement among Government institutions