Programme to promote energy efficiency and renewable energies

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The FC program Promoting Renewable Energies and Energy Efficiency in Nepal contributes to a reliable, sustainable and climate-friendly electricity supply for the Nepalese population and businesses by promoting renewable energies and energy efficiency. The development policy objective of the FC program is to contribute to the sustainable economic and social development of Nepal and to improving living conditions and helping to reduce poverty. The project also helps combat climate change by promoting renewable energies and energy efficiency, thereby reducing CO2 emissions compared to a scenario of increasing use of climate-damaging diesel generators. To achieve these goals, the existing supply problems in Nepal's electricity sector are being addressed in a multidimensional manner in the area of electricity generation and transmission in the interconnected grid as well as in off-grid regions. Component 1 Efficient electricity transmission Trishuli is intended to expand and strengthen the country's electricity transmission system and enable the efficient feeding of hydroelectricity generated by new generation capacities into the national interconnected grid. For this purpose, the financing of a transmission line and two transformer stations in the Trishuli region is planned. The modernization of the national grid control center (Load Dispatch Center/LDC) and the installation of a back-up system are also planned. Furthermore, a supplementary measure is to be carried out to connect rural communities and their households in the vicinity of the infrastructure to the national interconnected grid (neighborhood component). Component 1 is being implemented as co-financing with the European Investment Bank (EIB), with KfW acting as the lead donor. The neighborhood component is also being financed by EU grants from the Asian Investment Facility (AIF). Component 2, Solar Energy Promotion (NRREP), is promoting the spread of climate-friendly institutional photovoltaic systems (IPVS) for schools, pumping systems for drinking water, health stations, etc. in rural areas of Nepal. The component is being implemented with the project sponsor Alternative Energy Promotion Center (AEPC). The component includes the financing of construction cost subsidies for IPVS, investment and consulting assignments to improve the quality infrastructure in the solar sector, and support for the establishment of a sustainable battery management system in Nepal. The target group is the population in rural areas of Nepal without the possibility of a short/medium-term connection to the national grid.