Government plans to launch 'LP gas-free municipality' initiative

Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has announced that the government is preparing to implement a new initiative aimed at transitioning municipalities away from Liquefied Petroleum (LP) gas. Speaking at the 30th-anniversary celebration of the Alternative Energy Promotion Center (AEPC) in Kathmandu on Wednesday, November 4, 2026, the minister stated that this campaign is intended to bolster local economic development and energy self-sufficiency.

Minister Shrestha said the Alternative Energy Promotion Center has an important role in carrying out the idea. He said each municipality's energy potential, demand, consumption and future needs have to be studied before a plan is made. Corporate Nepal reported that he directed the center to begin preparations immediately.

Shifting the focus of renewable energy

During his address, the minister argued that renewable energy should no longer be viewed merely as a recipient of subsidy-based programs. Instead, he proposed that the sector should be integrated with private sector investment, innovative technology, and local entrepreneurship to serve as a foundation for national economic growth. He noted that while the last three decades have seen significant progress, the focus must now shift toward production, employment, and economic prosperity. According to Corporate Nepal, he said the center had brought renewable energy technology to more than 3.7 million households in remote areas and beyond the reach of the national transmission system over those three decades.

Minister Shrestha highlighted the necessity of developing decentralized and distributed renewable energy systems, citing the high vulnerability of Nepal to climate change. He suggested that such systems are essential not only for energy production but also for disaster preparedness and emergency response. Furthermore, he called for a broader definition of energy security, which he stated should encompass source diversification, supply reliability, and improved energy productivity.

Legislative and institutional updates

Addressing the broader policy landscape, the minister pointed to the Renewable Energy and Energy Efficiency Bill registered in the House of Representatives as an important step toward reform. He said the bill is expected to make the center's scope, capacity and role more effective. He also described Nepal's recognition by the Green Climate Fund as its first direct access entity, and the center's wider role in carbon trading and climate finance, as major achievements. He said the focus should now turn to mobilizing international resources, including the climate loss and damage fund, attracting private investment and building climate-resilient infrastructure.

Finally, the minister called for Nepal's technical knowledge, skills and experience in renewable energy to be re-established internationally. He said the sector had earned an international name in the past, but that its recent activity and presence had weakened. He added that past investment by the government, development partners and communities should be protected and turned into production and economic returns, that cooperation with development partners should continue, and that the private sector should be encouraged on investment, technology transfer, innovation and market expansion.