Nepal

The Government of Nepal (GoN) has been supporting the 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 the 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 the subsidy delivery modality is driven by the private sector.

Partners :

 

Alternative Energy Promotion Centre (AEPC) Nepal

AEPC is a government institution established in 1996 with the objective of developing and promoting renewable energy technologies in Nepal. It works under the Ministry of Energy, Water Resources, and Irrigation. AEPC functions independently and has a board with representatives from the government, industry, and non-governmental organizations. The mission of AEPC is to make renewable energy a mainstream resource through increased access, knowledge, and adaptability that contributes to improving the living conditions of people in Nepal. AEPC has supported over 1,200 pumps for solar irrigation over the last three years with a 60% subsidy. AEPC is keen to collaborate with this project to evaluate the impact of projects implemented so far and to identify suitable models for moving forward. AEPC will be support SoLAR SA with data and information, access to project implementation sites, and advice regarding needs and gaps in SIP promotion.

Nepal Electricity Authority (NEA)

NEA was created in 1985 after the merger of the Department of Electricity of Ministry of Water Resources, Nepal Electricity Corporation, and related development boards. The primary objective of NEA is to generate, transmit, and distribute adequate, reliable, and affordable power by planning, constructing, operating, and maintaining all generation, transmission, and distribution facilities in Nepal’s power system, both interconnected and isolated. NEA has established a net metering policy (2074 BS); however, it has yet to implement this metering for SIPs, primarily because the technology is new and people will need more education about the technology before adopting it. Therefore, NEA, AEPC and SoLAR-SA have an opportunity to demonstrate SIPs through a pilot so that we can provide evidence for wider replication. NEA will establish a demonstration pilot for the purpose of promoting grid-connected SIPs.