The Alternative Energy Promotion Center (AEPC), the focal agency for renewable energy promotion in the country under the Ministry of Energy, Water Resources and Irrigation (MoEWRI), and United Nations Development Programme (UNDP) signed a 1.5 million US dollars agreement to promote renewable energy in Nepal.

The grant, funded by the Asian Development Bank (ADB), will be used to provide technical assistance under the off-grid component of South Asia Sub-regional Economic Cooperation (SASEC) Power Extension Project. Under this partnership, UNDP will also provide additional co-financing of 0.8 million US dollars and technical support to AEPC through its Renewable Energy for Rural Livelihood (RERL) project. The agreement was signed on Thursday by AEPC Executive Director Madhusudhan Adhikari and Resident Representative of UNDP Ayshanie Medagangoda-Labe in the presence of ADB Country Director Mukhtor Khamudkhanov.

The SASEC project is supporting rural communities to develop nine mini hydropower subprojects in Taplejung, Solukhumbu, Rukum East, Rukum West, Dolpa, Jumla and Mugu districts and 10 solar mini grids in Panchthar, Morang, Okhaldhunga, Sindhuli, Rolpa, Surkhet, Kailali and Baitadi districts with cumulative capacity of 4.8 MW.

Completion of these subprojects, 30,500 additional households will have access to reliable, affordable and quality electricity, according to AEPC Executive Director Adhikari.

SASEC has also been providing support to communities in Nepal to establish cooperatives and a company that are responsible for both developing and operating their subprojects. The SASEC program also promotes local employment generation, especially targeting women and members of marginalized communities, by skills training and providing access to electricity. The project intends to support the rural population to utilize 20% of the generated power in productive end use applications, according to a statement issued by the UNDP Nepal.