EE Introduction

Energy Efficiency (EE) means a maximum output with fixed energy input or a fixed output with the minimum energy input. Energy efficiency is achieved when energy intensity in a specific product, process or area of production or consumption is reduced without affecting output, consumption or comfort levels. For example, replacing incandescent light bulbs with Light-Emitting Diodes (LEDs) will use only about 1/10th of the energy to light a room (USA Lights and Electric, 2017). OECD/ IEA (2018) reports that energy efficiency measures is one of the cheapest GHG reductions options and can contribute about 40% of the CO2 abatement needed by 2050 to achieve emissions reduction consistent with a target of limiting global temperature increase to 2 degrees Celsius.

Energy efficiency is often called “first fuel” or “a major energy resource” with largely untapped potential in the context of national and international efforts to achieve sustainability targets (OECD/ IEA, 2014) because it is a source of energy in its own created through saving.  Energy efficiency avoids costs associated with the construction of new generation capacity. It focuses more on “Negawatts” (energy saved as a direct result of energy conservation measures) rather than on “Megawatts”.

                                                                      Examples: Energy Efficient Technologies



NepalEnergy Efficiency Programme (NEEP),2021                                             Alternative Energy Promotion Centre (AEPC),2021


Energy Management System

The basic learnings of Energy Management are to produce goods and provide service with the lowest cost and lowest environmental effect. Energy management is “the strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output keeping at least the same total costs of producing the output from these systems” (Bureau of Energy Efficiency (BEE), 2010).

Energy Management Systems (EnMS) are the means with the help of which an organization establishes the systems and processes necessary to achieve operational control and continual improvement of energy performance (Goldberg & Reinaud, 2012). EnMS helps to make sure that the energy efficiency does not just happen on a time basis, but are continuously identified and implemented in a process of constant improvement. If energy efficiency is not integrated into management practices, even optimized systems lose their internal efficiency gain with time (Jelic, et al., 2010). EnMS approach can be customized as required or can be followed as certain standards. For example, there is an international standard developed by International Standard Organization ISO 50001 in 2011 which has been recognized as a promising tool for a company to save energy, increase productivity gains and also contribute to policy goals linked to energy efficiency, environment protection, and energy security.


In Nepal, efforts like study and analysis related to energy efficiency can be found to have started since 1985 and below are the mentioned programmes conducted in Nepal in the past.


  • Mainly Concentrated on Industrial Sector with Ministry of Industry (MoI) as the leading agencies

  • Training to engineers and Managers for energy auditing techniques


  • World Bank Financial

  • Confined to awareness creation, training courses, energy audits in industries and hotels

  • Calculated fuel-saving worth NRs 5.3 million in 10 demonstration units.

  • Energy cost and demand (kVA) saving worth 10 million from 30 audited units.


  • Towards the end of OEES, handover to MoI and renamed as IEMP

  • IEMP were focused on Energy Efficiency works such as training, awareness, etc.


  • Bilateral program between DANIDA, Ministries of Industry, Environment and population, labour and transport management

  • 360 participated industries (small, medium, large)


  • MoEWRI with Technical assistance by GIZ on the behalf of BMZ

  • Intervention Areas (Policy, Support to NEA, EE Market Development, EE in higher education/Vocational Training)

  • Continuation with Renewable Energy and Energy Efficiency Program (REEEP) from 2021


  • Renewable Energy and Energy Efficiency related activities


  • Ministry of Industry, Commerce and Supply

                  Timber Corporation

                 Nepal Oil Corporation


  • Ministry of Energy, Water Resources and Irrigation



  • Academic Institution

              Institute of Engineering (IOE)

              Kathmandu University (KU)

             Council For Technical Education and Vocational Training (CTEVT)

  • Ministry of Urban Development

             Town Development Fund (TDF)

  • Associations

           Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

          Confederation of Nepalese Industries (CNI)

  • Development Partners




National and international experiences have shown that energy efficiency can be a reliable resource in the sustainable energy mix. With support from Nepal Energy Efficiency Programme (NEEP), Nepal has made remarkable achievements in the promotion of energy efficiency during the short span. The Biomass Energy Strategy 2017 and National Energy Efficiency Strategy 2018 are the key strategies adopted by the Government of Nepal (GoN) for the development of the energy efficiency sector. Energy Efficiency and Conservation Bill is currently under consideration by the Cabinet for submission to the Parliament. Alternative Energy Promotion Centre (AEPC), the mandated institution of the GoN to work in the areas of renewable energy and energy efficiency under the purview of the Ministry of Energy, Water Resources and Irrigation (MoEWRI), is keenly moving forward by building collaborations with the relevant partners and stakeholders in creating awareness at various levels, developing institutional structures and capacities, and formulating a suitable regulatory framework for the institutionalization of energy efficiency in Nepal.