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Kathmandu, Sunday January 12, 2003  Paush 28,  2059.

UNDP-led policy to strengthen rural energy framework soon

By Damaru Lal Bhandari

KATHMANDU, Jan 11:The United Nations Development Programme (UNDP) is working on a suitable policy the government should adopt to indirectly strengthen rural energy development programmes. Rural Energy Development Programme (REDP) of the UN agency is on the new policy since December.

This follows an agreement between National Planning Commission (NPC) and UNDP, signed in December. The draft policy framework will be ready by December 2003.

"The step was taken in the wake of the anomalies dogging the rural energy development," said Kiran Man Singh of REDP. He also enumerated a number of hurdles faced by the government and the need to have a clear-cut policy on micro and bigger power projects.

He also said that the current policy governing micro-hydro and bigger power projects has tended to work to cross-purposes, owing to the World Bank (WB) and Asian Development Bank (ADB) policies on electrification.

There are allegations that the need for a new policy on rural energy arose largely because there isn’t much co-ordination between the government, the donor agencies like WB and ADB and UNDP-run energy development schemes.

"The thrust of the new policy will be on power generation and introduction of income generation schemes. This is not the case with the current policy, which merely lays stress on giving permission to as many power plants as possible, with income generation schemes not referred to at all," said Singh, dwelling at length on the need to back up income generation schemes with power generation permits.

Meanwhile, formulating and implementing a suitable policy governing rural energy generation is expected to facilitate unhindered growth in the number of micro-hydro projects facilitated by REDP.

Efforts are also on to convince Nepal Electricity Authority (NEA) to buy power from micro-hydro projects, once NEA moves into inaccessible parts of the country where micro-hydro power stations are currently being built and run.

"Although NEA is reluctant to do so, chances are they may buy it since the denial would mean decimation of micro-hydro stations, once the NEA moves into additional places," Singh said.

The number of micro-hydro power stations currently stands at 94, with collective power generation put at 1304 KW. They are spread over 15 districts and are known for fuelling the local economy as never before, with over 100 thousand people. This has encouraged micro-enterprises which would not have been possible in the absence of electrification.

This is being hailed as an achievement since only six per cent of the rural population have access to electricity through the national grid.

"In fact, micro-hydro power generation is only one component out of four. Others include bio-gas generation, solar home schemes and improved stoves to meet the local need for fuel," said Tek Bahadur Gurung, who is associated with Environment and Energy Unit (EEU) of the UNDP.

He also said that the UN agency was soon contemplating to extend the rural energy development programme into 10 additional districts of the country, which are not expected to have access to electricity, at least until the next five years.

Even as the REDP facilitated the efforts of the local people to build a lot of micro-hydro projects since 1996, it has also facilitated in the construction of over 600 kms of trail, over 2,562 bio-gas plants with toilets and over 6,507 improved cooking stoves. Add to it are 2,706 community forest and user groups with membership running into 54 thousand.

However, the most notable aspect of the electrification through micro-hydro projects is that people have grouped, under co-operatives in some cases, and are known to mobilise nearly Rs 18.7 million as weekly savings, which is being further handed to borrowers to run micro-enterprises. Total investment adds up to Rs 35 million. "This is fuelling the local economy as never before," Gurung said, adding "hence these further efforts at promoting micro-hydro and related activities to additional districts, even as policy is further fine tuned."


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