Energy is a key driver of Nepal’s economy, and renewable energy (RE) can play a significant role in helping the country grow its economy, reduce poverty, diversify its energy mix, meet climate goals, and build societal resilience. A fundamental change in Nepal’s governance driven by federalism (a form of governance designed to give more autonomy to a country’s sub-national divisions) combined with the opportunity to leverage innovative RE project financing models offer a significant opportunity for sustainable, inclusive RE development for Nepal’s industries, businesses, communities and residents
The United Kingdom’s Department for International Development (DFID)-funded Nepal Renewable Energy Programme (NREP) is a 4.5-year, £18m programme that commenced in February 2019.
NREP was designed to support the Government of Nepal (GoN) and the private sector plan and invest in a low-carbon development path resulting in economic growth, poverty reduction and climate-smart development. The Programme’s intended outcome is for government institutions and the private sector to increase investments in the RE sector in communities across Nepal.
Measurable goals of the Programme include:
- An increase in installed capacity of RE by 16 MW—from new or upgraded installations
- Provision of RE to 95,000 households, 500 small businesses, and 200 schools and health centres
- Leveraging of £37.2m of private and public sector investment in RE
- Strengthened institutional and policy reforms and improved compliance mechanisms—across Federal, Provincial, and Local governments
- Significant avoided greenhouse gas emissions