Development of framework conditions for promoting increased energy efficiency in the Nepalese industrial sector

In Nepal, access to energy is limited and industrial firms are dependent on imported fossil fuels. This dependency represents one of the main barriers to the country’s economic development. Additionally, inefficient energy use causes high production costs, which in turn impair the competitiveness of the Nepalese industrial sector. Between 2010 and 2014, adelphi implemented the Nepal Energy Efficiency Programme (NEEP) in cooperation with international and local partners. This project, sponsored by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), was aimed at increasing the institutional and personnel capacities of the Energy Efficiency Centre (EEC) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The project centred on training local energy auditors and undertaking energy audits.

After the successful execution of NEEP, GIZ decided to extend the project in conjunction with FNCCI. As part of the project’s continuation, adelphi, together with its project partner INTEGRATION environment & energy, will be responsible for developing a market-based system for promoting energy efficiency in the industrial sector. In cooperation with the Nepal Electricity Authority (NEA), the Energy Efficiency Centre (EEC) and the Town Development Fund (TDF), adelphi will implement various measures aimed at developing suitable conditions for increasing energy efficiency in the industrial sector. These will include training of energy auditors and managers on energy efficiency topics such as regional and international standards (e.g. ISO 50001), undertaking further energy audits in businesses and public buildings, and establishing energy networks. These will be accompanied by capacity development and measures to raise awareness amongst industrial associations, finance institutions, regional chambers of industry and public authorities, as well as through comprehensive marketing.