About NREP

The Nepal Renewable Energy Programme (NREP) is a Government of Nepal programme dedicated to increasing private sector investment in distributed renewable energy (RE) and increasing universal energy access, while facilitating a policy, planning, legal construct, and regulatory environment conducive to both enabling and sustaining progress in RE market development and universal energy access.

To date, NREP has made significant progress toward meeting these objectives—including preparing for the launch of the GBP 9.3M Sustainable Energy Challenge Fund to catalyze the distributed RE market in Nepal by providing needs-based awards; developing a pipeline of over 70 distributed RE projects; sharing information on innovative business models such as Power Project Financing; facilitating Public-Private Partnership policies and acts for Provincial and Local Governments; providing analysis of the Renewable Energy Development and Promotion Bill; supporting a Green Climate Fund concept note to increase the efficiency of energy generation/delivery/end-use of energy in commercial & industrial markets; working on an electric cooking modality using hydropower from the grid; establishing Provincial Energy Coordination Committees; and drawing on insights from Political Economy Analyses on federalism to help AEPC and NREP develop effective subnational stakeholder engagement strategies

In 2021, NREP believes that major changes in the renewable energy sector as a result of federalism, ambitious national economic development and low-carbon environmental  goals, dramatic changes in cost of RE technologies such as solar PV, changing international development financing scenario, and end-user project financing preferences will necessitate a transformational change in the RE sector.  To take advantage of these drivers for change, and to affect real and sustainable transformation, AEPC and NREP will be guided by two straightforward outcomes: Enabling environment established for increased RE investment in Nepal as part of the overall energy plans; and RE investments significantly scaled up by financial institutions and the private sector resulting in rapid expansion of access to sustainable energy services in Nepal, contributing to inclusive, low carbon economic growth and sustainable energy access for all.

The benefits of distributed RE are tangible. Nepali people living in remote areas can save money and live healthier lives with electric cooking. Nepal’s commercial and industrial enterprises can be more cost-competitive and create jobs. Lending institutions can expand their business offerings with RE financing models that de-risk investment.  AEPC can become more sustainable and self-sufficient by transitioning into a Centre of Excellence that can assist local and provincial governments implement RE policies, plans, and projects. The Government of Nepal can more ably meet its national energy mix targets, its regional electricity trading goals, and its international climate change commitments.