Rationalizing donations and subsidies: Energy ecosystem development for sustainable renewable energy transition in Nepal

Utsav Bhattarai, Tek Maraseni, Armando Apan and Laxmi Prasad Devkota

Energy Policy, 2023, vol. 177, issue C

Abstract: Donor-driven research and implementations in renewable energy (RE) might not necessarily resonate with the physical, social, economic and political settings of the developing world. We take a developing South Asian country – Nepal – to examine why solar and wind technologies have failed despite tremendous donor-support and subsidies during the last three decades. We combine extensive literature review, expert interviews and own readings from our two decades-long professional career in the RE sector of Nepal to arrive at rational conclusions. Almost all past internationally funded and government-subsidized off-grid solar and wind energy projects failed upon discontinuation of funds. Furthermore, the pristine Himalayan environment was forced to bear the burden of hazardous waste management. Nepal, being one of the best countries for hydropower, should concentrate on this technology. The suitability, convenient availability of other feasible alternatives and social acceptance decides the fate of technologies. Donations/subsidies need to be better utilized by developing a bottom-up “ecosystem” fostering new technologies to be a part of the energy mix sustainably. Through this paper, we provide specific recommendations for the use of donations and subsidies in the RE sector which have been drawn from the Nepal case but are applicable to the Global South in general.

Keywords: Donor-driven technologies; Government subsidies; Renewable energy; Solar; Wind; Hydropower (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:177:y:2023:i:c:s0301421523001556

DOI: 10.1016/j.enpol.2023.113570

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