AEPC, established 29 years ago, has made significant progress in promoting renewable energy throughout Nepal.

As it marks its 29th anniversary, AEPC is now focused on driving the energy transition to support Nepal's goal of achieving zero emissions by 2045. Under the leadership of Executive Director Nawaraj Dhakal, AEPC has implemented various programs to promote renewable energy.

During a program in the capital to commemorate AEPC's anniversary, Minister Ghising mentioned initiatives such as installing charging stations for electric vehicles and promoting the use of induction stoves to increase electricity consumption. He emphasized the importance of boosting domestic electricity consumption by expanding charging infrastructure and encouraging the use of electric stoves in place of firewood and LPG gas for cooking.

Executive Director Dhakal highlighted AEPC's progress and future plans, noting that the center has played a crucial role in policy innovation, climate finance, and inclusive energy access. “As Nepal aims for universal clean energy access by 2030 and net-zero emissions by 2045, AEPC's journey reflects the country's overall progress, partnerships, and perseverance,” said Dhakal.

Overall Progress Report of the Centre

● Physical Progress (from establishment to the end of FY 2081/82):

　Since its establishment, the Centre has achieved the following physical progress up to the end of Fiscal Year 2081/82:

　- 40,655 kW of micro and small hydropower projects installed

　- 11,104 improved water mills installed

　- 1,000,789 household solar power systems installed

　- 4,540 institutional solar power systems installed

　- 3,475 kW of solar mini-grid and solar-wind mini-grid systems installed

　- 30,939 kW of solar rooftop systems installed

　- 2,464 solar dryers and cookers installed

　- 4,280 solar drinking water and irrigation pumping systems installed

　- 156,531 improved metallic cookstoves installed

　- 33 institutional gasifiers established

　- 82,485 electric cookstoves distributed

　- 456,766 household biogas plants installed

　- 1,423,242 improved mud cookstoves installed

　- 378 institutional, urban, and commercial biogas plants installed

　- 1,766 productive energy utilization projects implemented

　- 3,309 solar streetlights installed

　- 4,865 monasteries, temples, and homestays electrified through solar energy

● Progress in FY 2081/82:

　Out of the two budget headings, the Centre achieved:

　- Under the Alternative Energy Promotion Centre program (fully funded by the Government of Nepal):

　94% physical progress

　81% financial progress

　- Under the National Rural and Renewable Energy Programme (funded by the Government of Nepal and development partners):

　55% physical progress

　54% financial progress

● Key Achievements in FY 2081/82:

　- 402 kW of micro and small hydropower projects completed

　- 4,142 household solar systems installed

　- 378 kW of solar mini-grid systems completed

　- 12,686 solar rooftop systems installed

　- Solar energy systems installed in 107 monasteries, temples, and homestays

　- 589 solar drinking water and irrigation projects implemented

　- 208 institutional solar power systems installed

　- 23,100 electric cookstoves distributed

　- 24,320 improved metallic cookstoves installed

　- 4,386 household biogas plants constructed

　- 9 large-capacity biogas projects completed

● Carbon Reduction and Carbon Trading:

　Through the promotion of renewable energy technologies, 126,914 metric tons of carbon emissions have been reduced, generating an income of USD 660,000 (approximately NPR 92.4 million) through carbon trading.

　Under the Clean Development Mechanism (CDM), a total of 6.68 million metric tons of carbon emissions have been reduced from 8 projects, earning approximately USD 36.011 million (about NPR 5.04 billion). These ongoing carbon projects are expected to generate additional revenue in the future.

● Other Activities:

　In the past fiscal year, several activities were also completed, including studies, research, and development related to renewable energy, as well as capacity-building programs for provincial and local governments.

● Green Climate Fund (GCF) Initiatives:

　With the support of the Green Climate Fund, a clean cooking energy program is being implemented across 150 local levels in 22 Terai districts.

　The program aims to install within five years:

　- 500,000 electric cookstoves

　- 490,000 improved cookstoves

　- 10,000 household biogas plants

　Benefiting about 1 million households.

　Additionally, capacity-building activities have been conducted under the GCF Readiness and Preparatory Support Program for relevant stakeholders.

● Overall Impact:

　The Centre has so far provided clean and renewable energy services to approximately 3.7 million households across the country.

　Renewable energy technologies contribute about 8.5% to the total electricity access in Nepal.

　The Centre has prioritized expanding electricity access and promoting clean cooking technologies.

　More than 500 companies are active in the renewable energy sector, creating over 40,000 direct and indirect employment opportunities.

● The Centre, in collaboration with development partners, has been playing a vital role in the overall energy transition of the country by ensuring access to modern energy for all, promoting decentralized renewable energy systems and energy efficiency, and making the energy system sustainable and reliable. This has been achieved through coordination and cooperation with provincial and local governments in programs such as the Nepal Renewable Energy Programme, Renewable Energy and Energy Efficiency Programme, South Asia Subregional Economic Cooperation (SASEC) Programme, Renewable Energy for Rural Livelihood Programme, Mini-grid Energy Access Programme, Solar Energy Promotion Programme for Rural and Semi-urban Areas, Solar Technology Promotion Programme for Economic Development, Micro Hydropower Credit Fund, and Biogas Credit Fund, among others.

● The Central Renewable Energy Fund (CREF), under the Centre, functions as its financial mechanism based on the principle of blended finance 　-　providing grants, viability gap funding, and loans. Under the Fund, the Sustainable Energy Challenge Fund (SECF) serves as an innovative financing mechanism, offering viability gap funding and technical assistance to sustainable energy projects developed by the private sector. The SECF projects have been supported by the Government of the United Kingdom through the Nepal Renewable Energy Programme. More recently, this sector has been further strengthened and expanded with the additional support of the Renewable Energy and Energy Efficiency Programme implemented by GIZ under the cooperation of German Development Cooperation and the European Union, as well as the Solar Energy Promotion Programme for Rural and Semi-urban Areas supported by KfW.

● Under the Sustainable Energy Challenge Fund, there are eight types of investment areas and support modalities related to energy access, energy security, and energy transition:

　1. Projects implemented through public-private partnerships (PPPs)

　2. Projects implemented by integrating energy demand

　3. Projects delivering energy access through auction-based competitive processes

　4. Projects improving technical, managerial, or financial aspects of existing mini-grids powered by small or micro-hydropower and other renewable energy sources

　5. Captive projects eligible for support based on electricity generation capacity

　6. Captive projects eligible for subsidized interest rates from banks

　7. Innovative technological or commercial projects aligned with the objectives of promoting sustainable energy through viability gap funding

　8. Provision of partial credit guarantees for a certain period to facilitate easier access to loans

● To provide electricity access to remaining geographical areas and households, the Ministry, Nepal Electricity Authority (NEA), and the Centre have jointly prepared and implemented an Integrated Electrification Plan (Last Mile Electrification Plan). Under this plan, NEA and the Centre are moving forward according to a joint action plan with designated regional responsibilities to ensure electricity access to the remaining households. The process of updating data on households without electricity access has been completed to harmonize the statistics between local municipalities and NEA

● Nepal has prioritized the use of solar thermal energy alongside electricity. The country receives annual solar radiation ranging from 1,600 to 2,000 kilowatt-hours per square meter. Most of Nepal’s energy consumption is based on thermal energy sources (firewood, coal, LPG, imported fuels), the use of which increases carbon emissions and causes environmental pollution. Thermal energy accounts for about 50 percent of Nepal’s total energy consumption. Solar thermal energy systems are based on heat obtained from the sun. Solar thermal energy can be utilized at household, commercial, and industrial levels, thereby reducing dependence on electricity and fossil fuels. Therefore, to achieve the goal of net-zero emissions by 2045, it is necessary to replace traditional and fossil fuel–based thermal energy with renewable energy. Considering this fact, this center, in collaboration with ICIMOD, has prepared the “Solar Thermal Roadmap and Implementation Plan, 2082 (2025).” The main objective of this roadmap is to increase the use of solar thermal energy for household, commercial, and industrial purposes. The roadmap targets the installation of thermal plants equivalent to 1,354 megawatts for household use and 29 megawatts for industrial use by 2025.

● The Center, as a specialized agency under the Ministry of Energy, Water Resources, and Irrigation, is working to increase the consumption of electrical energy, promote clean energy transition, and play a supportive role in replacing imported fossil fuels and conserving foreign currency reserves.

● To create domestic employment and prevent youth from going abroad, it is necessary to introduce new programs and allocate additional budgets to support and promote local technologies　- such as biogas, micro and small hydropower enterprises, improved cookstove manufacturing, and various levels of technicians and small investors working in the solar energy sector.

● The bill prepared for the management of renewable energy and energy efficiency should be approved by the Federal Parliament and enacted into law. Subsequently, the Renewable Energy and Energy Efficiency Regulations, as well as the organizational and management survey of the Center, should be approved and implemented accordingly.

● For the effective implementation of programs operated with the support of development partners, complementary funding in line with the commitment of the Government of Nepal should be ensured. Priority should be given to actions such as achieving full electrification, expanding clean energy technologies for cooking, rehabilitating old and disaster-affected micro and small hydropower and solar minigrid projects, and allocating budgets for connecting projects located near national transmission lines to the national grid.

● Based on the policy guidance and recommendations of the Ministry, the goal is to develop the Center as a center of excellence in the field of renewable energy and energy efficiency through the promotion of renewable energy and energy efficiency initiatives.