Norwegian assistance in energy development is aimed at contributing to economic and social development in Nepal.
The country has immense hydropower resources, but only a fraction of this potential has been utilised so far.
The Norwegian Energy and Climate Initiative presents an integrated approach to energy and climate development. Norway will contribute to low carbon development and adaptation to climate change for developing countries.
The bilateral energy assistance is formed and targeted to leverage commercial hydropower investments and increase Nepal’s electricity supply and access.
Rural Renewable Energy
Norway has for many years funded programs that support the installation of renewable energy technologies such as micro hydro and solar power installations for electrification, biogas and efficient stoves for cooking, and improved water mills for agro processing.
The assistance has provided significant results: 300 000 rural households have gained access to electricity and more than 500 000 households have received efficient cooking stoves. This is having many positive effects on the life of ordinary people: improved indoor environment, reduced drudgery and improved quality of life for the rural community.
Norway remains dedicated to developing rural renewable energy. Together with other donors, the Embassy has committed a total of NOK 172 million to the Rural Renewable Energy and Development Program (NRREP).
Norway has provided funds for technical energy research in Nepal for a number of years. This contributes to build important competence and know-how for the development of Nepal’s hydropower resources.
To leverage commercial hydropower development, sufficient power transmission lines within Nepal are needed. Norway is co-funding with Asian Development Banks multiple projects supporting new transmission lines and expansion of electricity distribution network. These projects will attract investment in new hydropower plants and increase access to electricity in the country.