A fuzzy approach to environmental scanning (ES) of multi-factor bottlenecks to renewable rural energy sustainability in Nepal

Abstract

ABSTRACT Due to the prevalence of traditional fuels and the increasing awareness of their negative effects on sustainability, policymakers and government authorities in Nepal have been compelled to transition towards promoting the adoption of clean energy. Nevertheless, as a result of numerous obstacles, the rate of renewable energy utilization has remained sluggish. Therefore, the country’s policymakers must become acquainted with the factors that impede the progress of renewable energy. The objective is to pinpoint the constraints, restrictions, and barriers that hinder the advancement of renewable energy access to rural communities in Nepal. The current study used the Delphi Technique of Environmental Scanning to identify the barriers impeding the adoption of renewable energy. In addition, an Exploratory Factor Analysis (EFA) was performed to redefine categories of bottlenecks depending on the direction of the factors in the context of Nepal. Ultimately, the Fuzzy Analytical Hierarchical Process (FAHP) has been employed to determine the priority of distinct bottlenecks of clean energy development. The study suggests that Nepal’s advancement in sustainable energy is hindered by financial obstacles, primarily due to the significant initial investment, which accounts for 19% of the challenges, and the lack of effective fiscal incentives provided by the government to developers and users, which accounts for 10.6% of the challenges. The research identified many contributory reasons, including the function of regulatory organizations (6.4%), inadequate political commitments (6%), inefficient existing energy policy (5%), and poor public knowledge (5%). To promote the development of sustainable energy sources in rural areas, it is crucial to implement economic incentives, provide financial support, establish partnerships between the public and private sectors, and utilize innovative financing methods such as green bonds, crowdfunding, and carbon financing. Additionally, it is necessary to increase political commitments to amend existing renewable energy policies in the country.