What We Do
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.
NREP ‘s focus activities center around:
Governance: To exchange relevant information through effective engagement with the public sector; facilitate and coordinate effective energy planning, policies and regulations at Federal, Provincial, and Local Governments; and to facilitate public/private partnerships.
Market Assessment & Development: To identify, assess, and develop a pipeline of technically feasible and economically viable RE project opportunities in target markets. Project scale will focus on the “missing middle” (between large-scale hydropower from the grid, and small-scale Solar Home Systems and micro-hydro), including solar microgrids for communities; rooftop or canopy solar for commercial businesses, hotels, tourist destinations, schools, technical institutions, hospitals, and health centres; and solar energy with reliable energy storage for the industrial market.
Innovative Project Finance: To fund proof-of-concept, and then scale up, innovative finance models that will attract private and public sector investment, e.g. through the Renewable Energy Challenge Fund (RECF). Innovative finance mechanisms could include viability gap analysis and funding, credit enhancement, first loss guarantees, municipal bonds, and revolving loan funds.
Cross-cutting: To provide assistance in several important areas, including:
- Capacity Development, to convey lessons learned and successful approaches;
- Knowledge Management, to acquire and exchange increased market intelligence and policy evidence in RE for informed policy development, financing and market growth as per demand and emerging priorities;
- Gender & Social Inclusion, to facilitate a more equitable and just programme and embrace DFID’s Leave No One Behind agenda;
- Monitoring & Evaluation, to ensure optimized programme effectiveness.
Taking a Whole System Approach to the entire energy sector, NREP will also support Federal, Provincial and Local Governments to craft and deliver a new National Renewable Energy Framework (NREF). NREF seeks to provide a systematic and coordinated approach to addressing governance, supply & demand, energy delivery, finance, and perhaps transportation issues within the sector.
NREP works with provincial and local government of Province 2, 5 and Karnali to:
- ENHANCE INSTITUTIONAL CAPACITY, PLANS & POLICIES
- Raise awareness and capacities
- Develop and synchronize Federal, Provincial and Local Government energy planning and policies
- ASSESS MARKETS & PROJECTS
- Assess RE markets for commercial and industrial sectors
- Provide pre-feasibility studies
- Help shape the RE investment opportunity
- OFFER INNOVATIVE PROJECT FINANCE
- Conduct Viability Gap Analysis (funds and risks)
- Leverage public-private sector funds
- Alternative Energy Promotion Center(AEPC) support
- Development Partner grants, guarantees, etc.
- Provincial/Local Government Funds
- Direct Foreign Investment
- Fill in Viability Gap with NREP Sustainable Energy Challenge Fund