Market Assessment for Clean Household Energy in Nepal

This market assessment was conducted in order to understand better the household energy sector in Nepal, with a focus on cooking, and the current barriers to scale and adoption of cleaner technologies, and to identify specific interventions that can move the sector forward.

The assessments aim to better explain the potential unique role to play and plan interventions that will help accelerate adoption of clean household energy products and fuels in urban areas of Nepal.

The assessment included a comprehensive analysis of the supply, demand, and policy and enabling environment for clean household energy products. The assessment mapped the supply and distribution channels for clean household energy (including stoves and fuels) in Nepal from the manufacturing origin, to transport/import, to distribution at wholesale and retail and potential sources of financing available within the supply chain. It also provided a segmentation of the potential market for clean household energy products in Nepal. This included high level profiles of each segment and identification of key factors that drive the current usage patterns and the barriers that currently impede these segments from transition to cleaner stoves and fuels. The assessment also examined the current enabling environment for household energy products, including policy frameworks, regulations, and other household energy related programs.

SW Nepal, in the undertaking of this assessment, conducted interviews with stakeholders from: Nepal Oil Corporation, Nepal LPG Dealers Association, Nepal Electricity Authority and Ministry of Population and Environment. Additionally, a market assessment was carried out to identity the types and prices of various clean cooking devices, such as, LPG Stoves, LPG Water heaters, LPG Room heaters,
Induction Cooker, Electric Cookers, and Rice Cookers among others.

Based on the market assessment, the supporting structures and enabling environment activities that may need to be implemented to scale up the adoption of clean household energy products in urban markets in Nepal were identified. Outline solutions and recommendations to address challenges were provided.