Kathmandu, January 1:

Alternative Energy Promotion Centre (AEPC) will submit a draft policy on wind energy to the Ministry of Environment, Science and Technology tomorrow. The plan is in sync with the government’s aim to generate at least 20 MW, aided by windmills, on the basis of Public-Private Partnership model.

The Solar and Wind Energy Resource Assessment report — an AEPC initiative conducted between 2003 and 2007 — the country boasts of a potential 3,000 MW of wind electricity.

“A policy guideline is lacking to harness the potential. The draft policy has been prepared in consultation with private sectors,” said Dr Govind Raj Pokharel, executive director, AEPC.

AEPC officials maintained that wind power generation called for assembling of equipment in select areas. Also, the installation time is very short - less than a year - contrary to hydropower projects, which take years.

“Our study reveals that up to 250 KW of wind farming is sustainable,” said Narayan Prasad Adhikari, engineer, AEPC.

According to the nodal agency’s estimate, 1 MW of wind energy will cost between Rs 180 and

Rs 200 million.

“Exemption of import duty, tax holidays, subsidies and preferential loans are some of the sops that are required to woo the private sector. The installation cost at the initial stages is very high. Hence, investors should get the facility to avail of a direct subsidy of Rs 2 million,” he added.

A mechanism has to be formulated for easy availability of land for the venture. Inaccessibility to identified project areas — like the Annapurna Conservation Area and Mustang — is a major stumbling block, thanks to their hilly terrain. The government has to make arrangements to transport equipment to the sites.

The draft policy also lays emphasis on grid-connection. Private investors should get a clear picture about long-term power purchase agreements to keep them interested in their enterprises. The cost of production of wind energy is estimated between Rs 15 to 18 per unit.