Nepal—Renewable Energy Programme (NREP)

Client: Foreign, Commonwealth & Development Office

Duration: 2019-2023

Region: Asia and the Pacific

Country: Nepal

Solutions: Environment Climate

Along with key partner Winrock International, DAI builds the capacity of the Government of Nepal to lead and manage the National Small-Scale Renewable Energy Framework—an overarching vision for the off-grid electricity and clean cooking sector—and deliver a programme of activities in line with the framework. Our consortium also includes Policy Entrepreneurs Inc. and Samriddha Pahad.

Nepal’s clean energy sector faces complex and interrelated challenges and uncertainties. These include sector-specific issues such as a lack of sustainable financing mechanisms and an over-reliance on subsidies, in addition to wider contextual challenges such as the decentralization of authority to new provincial and local government units under Nepal’s federal transition. These challenges must be overcome if the sector is to achieve its potential in terms of improving access to clean energy and driving increased productivity in the rural economy.

The programme’s intended outcome is for government institutions and the private sector to increase investments in distributed renewable energy technologies in industries, businesses, schools, health centres, communities, and homes across Nepal. The programme will work to institutionalize change through an enabling governance, policy, planning and regulatory environment.


Sample Activities

  • Build the government’s capacity to lead and manage the National Small-Scale Renewable Energy Framework through the Alternative Energy Promotion Centre and other relevant institutions.
  • Strengthen the capacity of Nepal’s Central Renewable Energy Fund to manage and spend climate finance.
  • Deliver activities related to increasing the demand for renewable energy, the supply of renewable energy technologies, and finance for renewable energy.
  • Generate and share knowledge related to Nepal’s renewable energy sector and develop networks of partners working in the sector.

Select Results

  • Built a Sustainable Energy Challenge Fund Application Portal that accepts applications for needs-based public sector financial assistance to de-risk and catalyze private sector investments in distributed renewable energy, primarily in the commercial and industrial markets.
  • Brought to a financial close NREP’s first distributed renewable energy project.
  • Launched the Sustainable Energy Challenge Fund to create an investment climate to catalyse private sector investments in renewable energy, diversify Nepal’s non-hydro energy generation mix, enable year-round renewable energy generation, and aim for zero emissions by 2050 through a long-term, low-carbon economic development strategy.


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