Kathmandu, 2 February: With a target of trading carbon worth around Rs. 1 billion, the Independent Power Producers Association of Nepal (IPPAN) has signed an agreement to acquire International Renewable Energy Certificates (IRECs). The agreement is seen as significant in the context of the gradual increase in the share of private sector energy production in the country.
The MoU was signed by IPPAN Chairman Ganesh Karki and Pro Clime Chief Executive Officer Kabin Kumar Kandasamy at a program organized here, IPPAN said. The agreement signed by IPPAN with Pro Clime will make 2,000 megawatts of electricity out of the 2,700 megawatts of electricity generated by the private sector in Nepal eligible for carbon trading in the first phase. With this agreement, Nepal’s private sector will be able to trade carbon worth about Rs 1 billion annually, IPPAN Chairman Karki informed.
Kandasamy, CEO of Pro Clime, said that since India, Bhutan, and Sri Lanka are benefiting from carbon trading, Nepal is also going to utilize this opportunity. International Hydropower Association (IHA) Vice President Sushil Pokharel said that the hydropower projects being constructed in Nepal have met the standards of sustainable development and that Nepali projects will also soon receive money from carbon trading.
Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, launched the IRIX Calculator designed for Nepal. This calculator will show how many megawatts of electricity generated is eligible for annual carbon trading. If the 2,700 megawatts of electricity generated by the Nepali private sector is linked to carbon trading, it should generate a benefit of about Rs. 1 billion annually.
Stating that Nepal has not been able to benefit from carbon trading in the global market, Chairman Dr. Dhital stressed that Nepal, which has immense potential in hydropower and is currently producing more than 3,000 megawatts of hydropower, should now be able to benefit from carbon trading as well.
Dr. Maheshwor Dhakal, Joint Secretary at the Ministry of Forests and Environment, said that although Nepal has received money for carbon sequestration from forests on a small scale, hydropower projects have not yet been able to benefit from it.
Senior energy expert at the Ministry of Energy, Prabal Adhikari, expressed confidence that Nepal, which is exporting electricity to the regional market, will soon be able to earn good income from carbon trade. Ashok K. Chandel, Manager of the Global Carbon Council, and Erik Solheim of the Global Renewable Alliance, also addressed the program and said that Nepal, which is located between powerful countries like China and India, should benefit from carbon trade.
