Nepal—Renewable Energy Programme (NREP)

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 program 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 program’s intended outcome is for government institutions and the private sector to increase investments in distributed renewable energy technologies in industries, businesses, schools, health centers, communities, and homes across Nepal. The program 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

• Launched the Sustainable Energy Challenge Fund (SECF) providing financial and technical assistance to distributed renewable energy projects that demonstrate economic viability.
• Built an SECF Application Portal for projects requiring needs-based public sector financial assistance to de-risk and catalyze private sector investments in distributed renewable energy.
• By the end of 2022, 13 private sector-led or public-private projects had won SECF support, and 11 are underway.
• Once fully implemented, SECF-approved projects are on track to enable the transition of 60,500 households to electric stoves and provide 85 businesses with access to clean energy.
• The projects will reduce CO2 emissions by 1,762 tonnes equivalent.