Rural Energy Policy, 2006.

The overall goal of this policy is to contribute to rural poverty reduction and environmental conservation by ensuring access to clean, reliable and appropriate energy in the rural areas. In order to achieve this goal, the “Rural Energy Policy” will have following objectives: reduce dependency on traditional energy and conserve environment by increasing access to clean and cost effective energy in the rural areas; increase employment and productivity through the development of rural energy resources; increase the living standards of the rural population by integrating rural energy with social and economic activities (pag. 2). Special programmes of promotional activities will be implemented that emphasize the access to rural energy and the role of rural energy in sustainable development, poverty reduction and positive impacts on women and children. The subsidy rate and disbursement criteria as per the existing renewable (rural) energy subsidy arrangement will be revised as required in the basis of geographical condition, population, and available resources. Subsidy delivery will be as per the provisions of the existing subsidy delivery mechanism (pag. 7).
The above objectives will be achieved by adopting the following policies: emphasis will be given to the development of the environmental friendly Rural Energy Technologies; capacity of the local bodies will be improved for playing a leadership role in rural energy project planning, implementation, monitoring and evaluation at the local level and involvement of cooperatives, user groups, NGOs, private sector will be increased. Rural Energy Fund will be established at the central level to mobilize financial resources to be availed from various sources and fund will be expanded to the local level as per need; alternative Energy Promotion Centre under Ministry of Environment, Science and Technology, Government of Nepal will provide necessary support to the local bodies to develop its capacity to formulate and implement rural energy programmes; emphasis will be given in the development of affordable and suitable rural energy resources (pags. 2 and 3).
Mini and micro hydro projects will be integrated with irrigation, education, health, drinking water, small-scale industry and the operation of the projects at community and institutional level will be encouraged (pag. 4). The use of rural energy will be encouraged in diversifying productive end-uses for industry, food processing, household equipment, agricultural equipment, irrigation, and drinking water in addition to cooking and lighting uses (pag. 10).