In line with its dedication to promoting sustainable industrial development, Rastriya Banijya Bank Limited (RBBL) has disbursed the second installment of financial grants to support energy efficiency (EE) initiatives in industries that have effectively implemented EE measures under the Renewable Energy and Energy Efficiency Programme - Green Recovery and Empowerment with Energy in Nepal (REEEP-GREEN) project.

The grant handover ceremony took place at RBBL's central office in Kathmandu and was led by Rajib Mangal Joshi, Green Energy Finance Expert for the project, with senior officials from RBBL, the European Union (EU), GIZ Nepal, industrial representatives, and energy experts in attendance.

In the second phase, grants totaling over NPR 40 million were awarded to 13 industries after successful implementation of energy-saving measures identified through detailed energy audits. These interventions are expected to result in annual savings of more than 1,235,544 kWh of energy, leading to cost reductions exceeding NPR 47,758,016 per year - a significant contribution to Nepal's climate goals and sustainable economic growth.

The supported industries span various sectors such as agro-processing, pharmaceuticals, and dairy. AG Health Industries Pvt. Ltd., which received the largest grant of over NPR 10 million, has implemented two major energy efficiency measures, including the replacement of manual packaging machines. With a total investment exceeding NPR 40 million, the company anticipates saving over NPR 10 million annually, showcasing a compelling business case for energy-efficient innovation.

During the event, industrial representatives underscored the increasing importance of energy efficiency in enhancing competitiveness. Sumit Kedia, Managing Director of Sitaram Gokul Milks Kathmandu Pvt. Ltd., highlighted that energy costs make up around 30-35% of operational expenses, stressing that these initiatives "help industries progress from awareness to concrete action." Dr. Pankaj Tiwari, Managing Director of Arrow Pharmaceuticals Ltd., described the energy audit process as "enlightening," providing fresh insights to optimize energy usage while meeting international safety and compliance standards.

Representing the Delegation of the European Union to Nepal, Mr. Ranjan Prakash Shrestha praised the participating industries for their accomplishments and urged them to continue their efforts even after the project support ends. He reiterated the EU's commitment to Nepal's energy transition, emphasizing ongoing investments in transmission and distribution infrastructure to enhance energy access and reliability nationwide.

Looking ahead, Devendra Raman Khanal, CEO of RBBL, stressed the importance of energy conservation alongside energy generation. He lauded the industries for their contributions to this national goal, stating, "We look forward to these industries becoming leaders of change, inspiring others to embrace efficient technologies and make a lasting impact on Nepal's energy future."

The grant scheme, part of the REEEP-GREEN project co-funded by the EU and the German Government, supports impactful energy efficiency initiatives by covering a portion of implementation costs. By filling financial gaps, it enables industries to adopt efficient technologies, increase productivity, and uphold environmental and labor standards.

The positive outcomes from the grant-supported initiatives will serve as proof of concept to develop business cases for loan and blended financing interventions in the public and private sectors. This will encourage more industries and businesses to implement energy efficiency measures and promote sustainable development in Nepal.