Publication: Sustainable Energy Finance Market Study for Financial Sector in Nepal
Date
2012-05
ISSN
Published
2012-05
Author(s)
International Finance Corporation
Abstract
The industrial sector in Nepal is one of
the major sources of pollution and inefficient energy use.
Nepal also suffers from inadequate investment in energy
efficiency and renewable energy in the industrial sector.
Therefore, the South Asia Enterprise Development Facility
took the initiative to conduct a market study to understand
the current energy efficiency and renewable energy potential
of Nepal, and identify areas where financial institutions
can invest for maximum impact. The following report is
structured into nine sections. The first is the introductory
section which provides an overall synopsis of the report.
The second section provides an overview of the industrial
policy and policies related to energy efficiency/renewable
energy technology. Section three of the report begins with a
brief overview of industrial development in Nepal, including
classification of industries (as per Industrial Enterprises
Act 1992) based on fixed assets, energy demand, energy
consumption by fuel type, and historical trend of energy
consumption in the industrial sector of Nepal. Section four
of the report provides information on the types of energy
used in each of the ten industrial sectors along with their
energy consumption patterns, local and regional norms of
selected sectors, and the international best practices.
Section five presents a mapping of the financial industry,
giving an overview of the financial sector in Nepal along
with brief financial status of the sampled banks and
financial institutions. Section six calculates the
investment potential and financing needs and lists the key
barriers to sustainable energy finance based on the options
identified and the cost estimation made in section four.
Section seven proposes various types of financing mechanisms
on the basis of industry-specific situation present in the
country. Section eight presents the recommendations and
conclusions of the study and section nine covers the
limitations of the study. The details of the approach and
methodology adopted for this study are presented in Annex 1;
and the structured questionnaires designed for stakeholder
interviews are presented in Annex 2.
Link to Data Set
Citation
“International Finance Corporation. 2012. Sustainable Energy Finance Market Study for Financial Sector in Nepal. © International Finance Corporation, Kathmandu. http://hdl.handle.net/10986/26555 License: CC BY-NC-ND 3.0 IGO.”