Secretariat TPR |
WT/TPR/S/381 |
S-IV§52 |
Nepal |
2018 |
Sectors |
Risk assessment |
Energy |
Relevant information
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The period 2016-26 has been declared National Energy Crisis Reduction and Electricity Development Decade (Energy Emergency Decade). In February 2016, a Concept Paper was issued and subsequently endorsed by the Cabinet of Ministers, signalling Nepal's intention to achieve zero power shortage within two years and ensure energy security during the period. Other key reforms identified in the Concept Paper include: the use of Power Purchase Agreements (PPAs) denominated in convertible currencies; the use of government guarantees as security for NEA payments; and a one-time recommendation for foreign currency payments to contractors/consultants. [32]
[32] The paper recognizes procedural problems in acquiring land for projects, and has proposed the streamlining of processes for acquiring land and obtaining environmental clearances for energy projects. Office of the Investment Board online information.
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§53 |
Nepal |
2018 |
Sectors |
General environmental reference |
Energy |
Relevant information
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On 8 May 2018, the Ministry of Energy, Water Resources and Irrigation launched its White Paper "Energy, Water Resources and Irrigation Sector's Current Status: (…) delivering sustainable, reliable, easily available, quality and clean energy to the people by increasing their access to such energy.
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Keywords
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Clean
Energy
Sustainable
Water
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§54 |
Nepal |
2018 |
Sectors |
Non-monetary support |
Energy |
Relevant information
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Nepal's per capita energy consumption of 0.41 tons of oil equivalent (toe) in 2014 was among the lowest in the world. However, Nepal's energy intensity is about four times greater than the world average, and is the highest in the region largely because of inefficiencies in energy consumption. To improve energy efficiency, the Nepal Energy Efficiency Programme (NEEP) was launched in 2010. The first phase of the NEEP was completed in June 2014. The second phase, which started in July 2014 and is being implemented by the Ministry of Energy, Water Resources and Irrigation, introduces market-based energy-efficiency services for the private and public sectors; supports the development and introduction of biomass-based improved cooking stoves for rural households; and provides direct advice and expertise to the Government for the establishment of a policy and institutional framework to encourage energy efficiency.
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§55 |
Nepal |
2018 |
Sectors |
General environmental reference |
Energy |
Relevant information
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In 2015, biomass, comprising waste and sustainable resources such as firewood, animal dung, and agricultural residue, represented 78% of Nepal's total energy consumption (down from 85% in 2010). (…) Electricity supplies 3% of the energy demand (2% in 2010), with solar and other modern renewables sources of energy representing only 3% of the total (Chart 4.2). (...)
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Keywords
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Bio
Energy
Sustainable
Renewable
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§56 |
Nepal |
2018 |
Sectors |
General environmental reference |
Energy |
Relevant information
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Nepal's largest available renewable energy resource is hydropower. While economically viable hydropower capacity stands at 42,000 MW, the current installed capacity is 1,075 MW (less than 3% of its proven potential). The slow progress of hydropower development is attributable to inadequate planning and investment in the generation, transmission, and distribution capacity; and delays in project development, caused partly by legal and regulatory inadequacies.
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§60 |
Nepal |
2018 |
Sectors |
Risk assessment |
Energy |
Relevant information
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Under the Electricity Act 2049 (1992), no licence is required for hydropower projects of up to 1 MW. For hydropower projects with an installed capacity of more than 1 MW, the following licences are required :
• survey licence, issued by the DoED within 30 days of the receipt of an application. Depending on the capacity of the hydropower project, the survey licence fee per annum ranges from NR 1 million to NR 6 million. The maximum term of the licence is five years. After obtaining the licence, the licensee must carry out a detailed survey and design (as evidenced in a Detailed Project Report (DPR)), a financial and economic analysis, and an Initial Environmental Examination (IEE) or, as applicable, an Environmental Impact Assessment (EIA);
(...)
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-IV§63 |
Nepal |
2018 |
Sectors |
General environmental reference |
Energy |
Relevant information
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Nepal aims at ending basic load shedding by 2018, and achieving energy independence by 2019. By 2050, Nepal aims to achieve 80% electrification through renewable energy sources having an appropriate energy mix, and reduce its dependency on fossil fuels by 50%.
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-Table-IV.11 |
Nepal |
2018 |
Sectors |
Tax concessions, Investment measures |
Energy |
Relevant information
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Table 4.11 Investment incentives, 2018
Incentive category Ordinary provision Incentive provision
Income Tax Normal tax rate: 25%
(...) Tax holiday
- Licensed person or entity producing electricity through hydro, solar, wind or bio fuel, starting its commercial production, transmission or distribution before 12 April 2024: 100% exemption for the first 7 years and 50% exemption for next 3 years (...)
(...)
Value added tax - 0% VAT facility based on a recommendation from the AEPC for batteries produced and supplied by Nepalese industries for use in solar energy-producing industries
- VAT exemption on the import of machinery, equipment, tools and their spare parts, penstock pipes or iron sheets used in hydropower projects and not produced in Nepal (based on the recommendation of the AEPC or the DoED)
- VAT exemption for equipment and machines, tubular batteries, and solar lead batteries, required by bio-gas, solar, and wind energy industries
Custom duty rate Various
(...) - Duty on alternative energy-based industries: 1%
- Windmills and related parts imported by wind energy based industries
- Solar panels, modules, tubular batteries and solar pumps imported by solar industries
- Bio-stoves imported by bio industries
- Import of mills, machinery, equipment and spare parts thereof and chemicals for the purpose of producing organic fuel
- Appliances and equipment such as main gas valves, valves used in biogas, fitting, elbow, gas pipes, gas gauges, biogas (dung gas) lamps, gas taps (brass), gas stoves, and parts thereof, reduction elbows and rubber hose pipe necessary for dung gas, including bio gas
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Keywords
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Secretariat TPR |
WT/TPR/S/381 |
S-Table-A4.1 |
Nepal |
2018 |
Sectors |
Tax concessions, Investment measures |
Manufacturing, Energy |
Relevant information
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Table A4.1 Fiscal concessions for different industries
Fiscal concessions for different industries
A. Income tax concessions
Industry Concessions
(…)
Individuals or entities obtaining approval to commercially generate transmit or distribute Hydroelectricity by
mid-April 2024 100% income tax exemption for first 10 years
50% income tax exemption for next five years
Such exemption is entitled to solar, wind and bio mass energy as well
In case of industries that have already begun commercial production at the time of commencement of this Act, the exemptions applicable at the time of receiving approval would be applicable
(...)
All industries (...) Expenses made for equipment & technology used to reduce or control the pollution or re processing or reuse of wastages can be deducted up to 50% of the adjusted taxable income of the same fiscal year
(...)
Note: Industries based on tobacco, liquor and kachha or kattha are not entitled to any of the exemptions or facilities listed above. However, such industries may deduct actual expenses incurred in business promotion activities including long-term welfare and benefit of employees or workers, in reducing or controlling pollution, re-processing of waste materials, in technologies and devices used reducing environment effects, in machine or equipment used for reducing power consumption, research and development expenses. In case an industry qualifies for more than one exemption in respect to similar income from among those listed above, the industry is only entitled to one exemption. Such industry is entitled to select the applicable exemption.
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Keywords
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Secretariat TPR |
WT/TPR/S/382 |
S-Summary§22 |
United States of America |
2018 |
Measures |
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All products/economic activities |
Relevant information
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(...) Traditionally, federal assistance programmes have been in the form of grants, tax concessions, loan guarantees, and direct payments; they are listed in the Catalog of Federal Domestic Assistance (CFDA), and are mostly related to public health and safety, the environment, education, infrastructure, community assistance, and research and development.
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