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Energy experts and stakeholders have stressed that the role played by community organizations in rural electrification, expanding access to clean energy, and empowering local communities must be fully recognized through legislation.

Speaking at a program organized to mark the 22nd anniversary of the National Federation of Community Electricity Consumers Nepal, the speakers emphasized the need for an integrated “Umbrella Energy Act” covering the entire energy sector and called for the community electrification model to be made a national priority.

Former Minister and energy expert Dipak Gyawali said Nepal should move away from separate laws for different energy sources and instead introduce a comprehensive Umbrella Energy Act that encompasses electricity, solar, biomass, hydropower, and other forms of energy.

“Strong political commitment is the first prerequisite for making the energy sector effective,” Gyawali said. “The federation should coordinate with policymakers and lawmakers to launch a strong advocacy campaign.”

He also argued that Nepal should adopt a consumer-friendly net metering system instead of net billing, and suggested that sustainable use of forest resources could support the promotion of energy products such as biomass briquettes.

Energy expert and former Deputy Executive Director of the Nepal Electricity Authority (NEA) Sher Singh Bhat presented an overview of Nepal’s electricity development, from the commissioning of the Pharping Hydropower Plant in 1911 to the present. He said the “90:10” model—where the government contributes 90 percent and communities 10 percent—has brought a major transformation to rural electrification.

Bhat stressed the need for adequate investment in grid strengthening, improved savings and digital distribution systems, and the promotion of a mixed energy policy that integrates solar, wind, and small hydropower. He also noted that as more consumers become electricity producers under the prosumer model, issues related to net metering should be addressed.

NEA Managing Director Dirghayu Kumar Shrestha acknowledged the important contribution of community organizations in expanding electrification and reducing electricity leakage, stating that the authority is committed to working with them to ensure sustainable development. He also pledged to discuss electricity tariff revisions and policy amendments to resolve existing issues.

National Planning Commission Member Secretary Rabilal Pant said community organizations will play a significant role in achieving the goals of Nepal’s 16th Periodic Plan, increasing electricity consumption through electric cooking, and creating employment opportunities.

Presenting the federation’s achievements, President Narayan Gyawali said community organizations account for nearly 15 percent of Nepal’s total rural electrification.

“Even during the armed conflict and in remote areas, electricity expansion was made possible through community investment, ownership, and active participation,” he said. “Community organizations have created around 3,000 direct and 3,500 indirect jobs, while campaigns such as ‘One Household, One Electric Stove’ have strengthened the rural economy.”

He urged the government to provide legal protection for community electrification through updated laws and regulations, strengthen coordination with the NEA and all three tiers of government, establish scientific electricity tariff structures, and reconsider the Value Added Tax (VAT) imposed on electricity.

Federation founding President Dilli Ghimire recalled that Nepal’s internationally recognized community electrification model was developed when the government lacked sufficient resources and relied on citizen investment.

He criticized efforts to sideline community organizations, saying they should instead pursue stronger, constitutionally backed advocacy. Ghimire added that consumers initially covered up to 50 percent of electrification costs, which was later reduced to 20 percent and eventually 10 percent, but the government has yet to adequately recognize the value of community investment and contributions.

Participants concluded that legal reforms, long-term financing, and technological modernization are essential to ensuring the sustainability of community electrification in Nepal.

Urjasanchar