The Government of Nepal (GoN) has been supporting promotion and development of Renewable Energy Technologies (RETs). To date, Nepal has approximately 1,600 SIPs, 75% of which have been financed and installed by AEPC, and the remainder by a number of NGOs and INGOs such as IDE, ICIMOD, Winrock, and Practical Action.

Until the start of the 13th Plan (2013-2016), the use of solar energy for irrigation and drinking water was limited to hilly and remote areas. The 13th Plan incorporated ideas for solar energy for irrigation in the Terai. In the 2018-19 budget, the central government allocated NPR 350 million (~USD 3.5 million) as grants for SIPs and pledged additional support to renewable energy production if initiated by cooperatives and local communities in collaboration with the local government.

The 14th Plan also initiated a subsidy for solar drinking water and irrigation systems at the individual, community, and institutional (i.e., private sector) levels. The AEPC—our main partner in SoLAR project, is the main institution responsible for the implementation of Renewable Energy Subsidy Policy, 2016.

In addition to the AEPC, a number of government organizations are working to promote and implement SIP projects in Nepal. The majority of solar projects have been implemented in provinces 2, 3, and 4. The private sector plays a very important role in Nepal, given that subsidy delivery modality is driven by the private sector.

AEPC financed solar irrigation pumps in Nepal


Director of Alternative Energy Promotion Centre (AEPC), Nepal deliberates on recommendations by IWMI.

The Executive Director of Alternative Energy Promotion Centre (AEPC), Mr. Madhusudhan Adhikari, had convened a meeting, with researchers from the International Water Management Institute, on 28th of August 2020, to discuss IWMI’s Report on Rapid Assessment of AEPC’s Subsidy Delivery Mechanism submitted to AEPC as a part of the SDC-supported SoLAR project.

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Contact information

Shisher Shrestha (IWMI-Nepal-Consultant)
email: [email protected]

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