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Clean Energy, Environment and Economic Development

Access to clean and affordable energy is a necessity for ending poverty

Norway’s aim for Clean Energy, Environment and Economic Development Portfolio in Nepal, is to achieve inclusive and sustainable economic growth through development of clean energy and climate cooperation.

Norway is committed to the Paris-agreement on climate change mitigation (The Paris Climate Accord), the Sustainable Development Goals (SDGs) and the Sendai Framework for Disaster Risk Reduction. We are also obliged to help our partner countries to achieve their own commitments.

Nepal has a vast hydropower potential, and Norway is supporting Nepal with Norwegian competence and technology transferred through the Norwegian Water Resources and Energy Directorate (NVE) and NTNU/SINTEF.

Together with the Government of Nepal and the Asian Development Bank, Norway supports two projects to improve transmission and distribution infrastructure in Nepal for energy access to the population and to make possible import and export of power.

Climate change in the Himalayas are happening faster than the global average and may affect as many as two billion people living downstream in Asia. At the same time, these changes are poorly understood. Water availability, agriculture, biodiversity, local communities and hydropower, will all be affected. Norway is therefore working with International Centre for Integrated Mountain Development (ICIMOD) to better understand and mitigate these effects and to encourage science-policy dialogue in the Hindu Kush Himalaya region.  


Find a list of current projects here.

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Support to the International Centre for Integrated Mountain Development (ICIMOD)

ICIMOD is a regional intergovernmental knowledge-sharing centre, which bridges science, policy and practice. ICIMOD provides science and uses this to promote fact-based policies in the eight member countries: Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal and Pakistan. ICIMOD’s work is primarily focused on climate change in the Hindu Kush Himalayan region through six regional programs. Norway recently signed a five-year agreement with ICIMOD to support the institution and their programs until 2022. The support will help the member countries to achieve international commitments such as the Paris-accord and the sustainable development goals. Norway’s grant contribution is NOK 100 million total for the period of 2018-2022.

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Energize Nepal (ENEP)

The development objective of the project “Energize Nepal” (ENEP) is to improve the capacity of research and education required for the development of the hydropower sector in Nepal and the region. ENEP will achieve its development objectives through its two components: i) Hydropower Development Component, which will focus on research and education in various aspects of hydropower development (sedimentation, geology, mechanical and electrical); and ii) Renewable Nepal (RENP) II, which will focus on research and implementation in partnership with private sector companies, primarily within renewable energy. The programme builds on the long-term collaboration between Kathmandu University, HydroLab and NTNU/SINTEF. Norway's grant contribution is NOK 25 million for the period of 2016-2021.

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South Asian Sub Regional Economic Cooperation (SASEC) Power System Expansion Project and Nepal Electricity Transmission Expansion and Supply Improvement project (ETESIP)

The main goal is to increase power supply and harness more clean energy. The project will upgrade transmission and distribution lines and substations, allowing more transfer of power to the main load centres in the Kathmandu Valley. It will also build small hydropower plants and mini-grid based solar and hybrid systems. Norway is a co-financing partner with the Asian Development Bank and Nepal Electricity Authority (NEA). Norway’s grant contribution is NOK 230 million for the period of 2011-2021.

Cross-cutting issues

All measures funded by the Norwegian government are required to be based on these principles

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Climate change and the environment

Climate change and environmental damage are destroying ecosystems, with negative repercussions for development, health and food production. It is important that our projects take climate change and the environment into account.


Human Rights & Gender Equality

The promotion of human rights and democratic principles is a crucial part of Norwegian foreign policy. There is a special focus on gender equality where the fundamental aim is to increase the opportunities available to women and girls, promote their right to self-determination, and further their empowerment.


Zero-tolerance policy on corruption

Norway practices a zero-tolerance on corruption. If you have any suspicions of financial irregularities or other misconduct in our programmes or implementing partners, go to our contact page.