The members of the Interim Rural Energy Fund (IREF) expressed satisfaction on the progress in subsidy delivery by the IREF in their fourth board meeting.

However, they also raised concern over the delay in credit arrangement for the Solar Home System (SHS) and the Micro Hydro (MH) installation. The members include Chresten Petersen, minister counsellor of Royal Danish Embassy and Poorna Bhadra Adiga, joint secretary, Ministry of Science and Technology.

According to the progress report presented by the director of IREF, Madan Bahadur Basnyat, the Fund has disbursed subsidy to 10,071 SHS covering over 591 VDCs in 63 districts that costing Rs 75.1 million since it has been operational in April 2001, exceeding the government’s target. Board also emphasised on the need to make sure that the remote areas are not left out in the dissemination of SHS.

Likewise the Fund has paid subsidy to 39 MH that produce 620 kW that exceeded the Rs 23 million and another 23 million is committed to be disbursed after the completion of the project says the press release.

Similarly Alternative Energy Promotion Centre (AEPC) has Solar Energy Support Programme (SSP) and Mini Grid Support Programme (MGSP) under the Energy Sector Assistance Programme (ESAP), DANIDA to promote and disseminate solar energy and micro hydro sustainability in Nepal through various technical assistance to enhance capacities of the industries in the sector and quality assurance activity to address end-users’ concerns. IREF was institutionalised last year to channel the subsidy to renewable energy in the country including projects initiated by various NGOs and INGOs.

The executive committee also informed the board on progress of work towards converting IREF into a fully functional integrated Rural Energy Fund, a fund channelling mechanism of HMG/N from various donor agencies and multi-lateral agencies to ensure uniform funding for the development of renewable energy in Nepal.