For the first time in the history of Nepal, a budget for the promotion of energy efficiency has been allocated in the national budget. To date, the government focus in the annual budget was limited to the supply side of energy. Realizing energy efficiency as a viable contribution for economic prosperity, the Government of Nepal has made the allocation in the budget speech for the current fiscal year 2016/2017. The allocation relates to efficiency activities as part of the implementation of the “Energy Crisis Mitigation and Electricity Development Decade Action Plan 2016”. Along with the introduction of energy audits of large electricity consumers, the government encourages the use of light emitting diode (LED) bulbs of international quality instead of high power consuming traditional bulbs and CFL. Though the budget for energy efficiency is modest in comparison to the total budget earmarked for the energy sector, this marks a first vital step towards reducing electricity crisis in the country through demand side management.

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Click here for Budget Speech of Fiscal Year 2016/17