The Ministry of Energy, Water Resources and Irrigation is going to introduce the second ‘Renewable Energy and Energy Efficiency Bill, 2083’ in the Parliament. The proposed bill is going to be introduced to develop and expand renewable energy as envisioned by the Rural Energy Policy, 2063 and to increase energy efficiency as envisioned by the National Energy Efficiency Strategy, 2075 and to fill the gap in regulation and management regarding energy conservation. 

This is the first time a bill on renewable energy is going to be introduced. It is going to be introduced in the Parliament for the second time. Earlier, the then Energy Minister Shakti Bahadur Basnet had introduced the bill in the Parliament on 31 Jestha 2081. However, with the dissolution of the House of Representatives on 27 Bhadra 2082, the bill also became inactive. Now, the ‘Renewable Energy and Energy Efficiency Bill, 2083’ has been brought forward, said Energy Minister Biraj Bhakta Shrestha. 

He also posted on social media that this bill is a historic and visionary step towards the development of green hydrogen in Nepal. "We envision a self-reliant and prosperous Nepal in clean energy through the promotion of sustainable energy, environmental protection, energy efficiency and renewable energy. After the passage of this bill, the level of investment in the energy sector will further increase, employment will be created, trade deficit will be significantly reduced and Nepal will become more capable of facing global challenges like climate change," he wrote on social media.

A bill is being introduced to make legal provisions on renewable energy and energy efficiency to contribute to environmental protection by promoting, developing and expanding renewable energy and to achieve the goal of sustainable development by increasing access to energy through proper use, saving and conservation of energy. The Ministry of Energy has stated that after getting the agreement from the Ministry of Finance to take it to Parliament, it will be sent to the Ministry of Law for agreement.

Section 11 of the proposed bill envisages the establishment of a Renewable Energy and Energy Efficiency Center. The bill states that the center will be established to provide necessary technical assistance to the Government of Nepal, provincial governments, local levels and other individuals, organizations or bodies to identify, promote, develop and expand renewable energy and to achieve energy efficiency and energy conservation. 

Section 30 of the bill states that the center will have a separate fund called the 'Sustainable Energy Fund'. The fund will include funds received from the government, funds received from any individual or organization, grants received from foreign individuals, governments or international organizations, funds received for operating projects and programs related to carbon trading and climate finance, and funds received from any other source. 

The ministry is going to reintroduce the bill that was previously presented in the parliament with further amendments. The bill, which is kept on the ministry's website, was amended in 2082 and the current 2083. Sub-section 1 of Section 4 of the bill states that the provincial government, local level or any other individual, organization or body wishing to operate projects and programs related to renewable energy with the support of the center must submit a proposal to the center. Earlier, the word 'with the support of the center' was not included in 2082. 

Sub-section 2 of the same section also mentions the details to be disclosed while submitting the proposal. The current bill also includes the need to submit a work plan for monitoring and evaluation of the project or program. Section 5 provides for obtaining permission. The section mentions that a license must be obtained in accordance with the prevailing law to generate, transmit or distribute electricity from renewable energy sources. 

An explanation has been added to the proposed bill 2083. ‘In the case of generating, transmitting or distributing electricity from renewable energy sources, the provincial government or local level may issue a license in accordance with the prevailing law, in projects until the project is completed, cooperation and partnership with the center and technical or other assistance may be available from the center,’ the explanation has been added.

Section 14 envisages the formation of a committee to operate, supervise and manage alternative energy promotion work and activities. This time, the subject of the Joint Secretary of the Water and Energy Commission also being a member has been added. The bill of

2082 provides for the committee to have four members, including at least two women, nominated by the ministry, from among those who have obtained at least a master's degree from a recognized university and have worked for at least seven years in the field of renewable energy, energy efficiency or energy conservation, representing renewable energy producers and consumers.  The bill of

2083 provides for the committee to have three members, including at least a bachelor's degree, five years of experience and at least one woman, by reducing the number of members.

Sub-section 2 of Section 17 states that there will be a recommendation committee to recommend names to the government for the appointment of the Chief Executive Officer of the Center. It was provided for the secretary of the ministry to be the coordinator, an expert designated by the ministry from among those who have passed a master's degree in environmental science, engineering, energy, science, management, law or economics from a recognized university and have worked for at least 15 years in the field of renewable energy, energy efficiency or energy conservation, and the joint secretary of the ministry to be the member-secretary. The 2083 bill has reduced the experience of expert members designated by the ministry to at least 10 years of work. 

Section 24 provides for the provision of concessional loans. Sub-section 1 of the said section states that the Center may provide concessional loans to any body or organization through banks and financial institutions established in accordance with prevailing laws to operate projects in the field of renewable energy and energy efficiency that are economically and socially necessary but cannot be constructed and operated commercially by taking loans. 

Sub-section 2 of the same section mentioned that concessional loans will be provided to projects and programs operating in geographically remote and rural areas, economically and socially backward areas and disadvantaged communities, disaster-affected areas, areas where traditional energy is being used more and areas with high potential for energy saving or energy efficiency. Currently, enterprises based on original and traditional skills and techniques have been added.