Universalizing Clean Energy in Nepal: A plan for sustainable distributed generation and grid access to all by 2022.

This policy document proposes the strategy to achieving universal electricity access by 2022 in Nepal. It proposes a two-pronged approach: 1. establishing distributed generation (DG) at the municipal level and 2. expanding the national grid. The plan aligns with Sustainable Development Goal 7 (SDG7) and aims to provide all with affordable and sustainable modern energy. The study explores the feasibility of hydropower, solar, biomass, and wind energy while also assessing the financial viability of these energy sources.
A key component of the strategy is the Sustainable Distributed Generation and Grid Access to All (SUDIGGAA) model, which integrates DG with a systematic grid expansion plan. The study analyses numerous municipalities and evaluates the potential for small-scale renewable energy projects in each. Hydropower emerges as the most viable solution, with 221 selected sites contributing a total of 192.6 MW of installed capacity. Solar PV, although widely considered, has high costs and requires Viability Gap Funding (VGF) to remain financially feasible. Biomass-based electricity generation is proposed for 50 municipalities, but technical feasibility concerns persist due to inadequate waste collection infrastructure. Wind energy is explored but remains limited due to Nepal’s challenging topography. The recommendations include accelerating grid expansion, enhancing financial support for renewable projects, strengthen local governance and capacity, promote technological advancements, and facilitating policy and institutional reforms.