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Industrial Energy Efficiency Policy on the cards
KATHMANDU, NOV 04 - The government is preparing an Energy Efficiency Policy (EEP) to optimise energy use, increase profitability and enhance productivity to ensure market competitiveness of local industries.
"If everything goes as per the plan, the policy will come into effect in the next three months," said a senior government official talking to The Kathmandu Post. A task force at the Ministry of Industry, Commerce and Supplies has already drafted the policy, he added.
The policy aims at curbing losses in energy in the industrial sector, which at present is very high, and check the cost of production by efficient consumption of fuel, among others.
"Besides, the policy aims at enforcing cleaner production and curbing the adverse impact of the industrial sector on the environment," said the source.
According to an estimate, reduction in consumption of a kilogram of diesel prevents emission of 2.76 kilograms of carbon dioxide in the environment and a kilowatt-hour of electricity will save Rs 5.90 to the industry.
"Most importantly, it will save $ 1200 on average to the energy system, which is otherwise required to produce a kilowatt hour of electricity," according to a report of Energy Efficient, a component of Environment Sector Programme Support, a DANIDA funded project of the government.
The draft policy mentions integrating the energy efficiency programmes in national economy and studying its impact. It envisages increasing energy consumption in manufacturing and service sector, and reducing it in commercial and other industrial sector.
To ensure optimum utilisation of energy, the policy proposes providing exemption on various taxes and customs duty along with other facilities, using the saved energy as an incentives to various economic sectors to expedite industrialisation, among others.
Decreasing the consumption of petroleum fuel, using the energy efficient technology, curtailing the import of energy and helping in maintaining the foreign currency reserve, and increasing employment opportunities, are major strategies outlined in the policy.
In a broader action plan, the policy aims at formulating hydropower policy and providing subsidy to renewable energy sector. "Also, an energy development and import action plan will be formulated," it adds.
The policy will also introduce regulatory mechanism to maintain pollution free environment and to comply with Kyoto Protocol. "Institutional set up will be developed for energy auditing and required experts will be developed," it states.
It further mentions constituting Energy Efficiency Fund (EEF), resources from which will be used in the industrial investment. It also aims at providing energy at concessional rates to the industries that use energy efficiency devices.Posted on: 2003-11-03 09:26
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