Govt to extend renewable energy subsidy in urban areas
BAGLUNG, Feb 2: The government is soon launching a new energy policy that, among others, will pave the way for extension of subsidy to urban dwellers who want to make use of renewable energy sources to beat prolonged power cuts.
"The draft of the new energy policy, which will soon be finalized, charts out plans to extend subsidies to urban dwellers who want to resort to renewable energy sources like solar and waste," Prof Dr Govinda Raj Pokharel, executive director of the Alternative Energy Promotion Centre (APEC), told an interaction held on Saturday.
According to Pokharel, the government will bear 40 percent of the total cost that goes into installation of renewable energy producing device. “Another 40 percent of the cost would be made available through banks and financial institutions and the remaining 20 percent of the cost will have to be borne by the person who wants to use renewable energy,” he said. “This will provide some relief to people living in urban areas who are facing extended hours of load shedding.”
The new energy policy will also increase the subsidy for power generation in rural areas.
"Once the policy is introduced, the government will raise the subsidy on per kilowatt hydropower generation to Rs 225,000 from existing Rs 195,000," Pokharel informed.
Currently, the government is also working with different development partners such as the World Bank to generate power from waste.
"A total 38 municipalities have shown interest in developing plants that generate power by recycling waste," Pokharel said, adding, “The government is also committed to creating an environment that enables the private sector to invest in solar and wind energy sectors.”