Nepal’s Renewable Energy Push: 37 Lakh Households Reach Clean Energy Access; AEPC Eyes Carbon Neutral Future by 2045

Nepal’s commitment to clean and sustainable energy has taken a significant leap, with the Alternative Energy Promotion Centre (AEPC) achieving nationwide milestones in renewable energy deployment. Established in 2053 B.S. (1996 A.D.) under the Development Committee Act 2013, AEPC has evolved into the government’s central body driving rural electrification, energy efficiency, and climate-resilient energy transformation.

Expanding Clean Energy Access Across Nepal

According to AEPC’s annual progress report up to FY 2081/82, more than 3.7 million households have now benefitted from renewable energy technologies. These include:

• 40,655 kW of micro and small hydropower projects

• 1,078,900 domestic solar home systems

• 30,939 kWp solar rooftop systems

• 456,766 household biogas plants

• 1.42 million improved mud stoves

• 82,485 electric stoves

• 3,309 solar streetlights

• 4,865 religious and homestay solar systems

These achievements underscore AEPC’s integrated collaboration with the Ministry of Energy, Water Resources, and Irrigation, as well as development partners, provincial and local governments, private sectors, and NGOs.

Major Achievements in FY 2081/82 Alone

In the most recent fiscal year, AEPC supported the installation of:

• 402 kW of new micro/small hydropower projects

• 4,142 household solar systems

• 12,686 solar rooftop units

• 23,100 electric cookstoves

• 24,320 improved iron stoves

• 4,386 household biogas plants and 9 large-scale biogas projects

Such rapid deployment reflects Nepal’s accelerating shift toward decentralized, clean energy systems.

Carbon Reduction and Climate Finance Gains

Through renewable energy interventions, AEPC has reduced 126,914 metric tons of carbon emissions in FY 2081/82 alone, earning USD 660,000 (approx. NPR 9.24 crore) via carbon trading.
Cumulatively, under the Clean Development Mechanism (CDM), Nepal has mitigated 6.68 million metric tons of CO₂, generating approximately USD 36 million (NPR 5.04 billion) in carbon revenue—an important source of climate finance for rural electrification and green projects.

Green Climate Fund (GCF) Programs and Future Goals

With GCF’s support, AEPC has implemented clean cooking and renewable energy programs in 150 local levels across 22 Tarai districts, targeting the installation of:

• 500,000 electric cookstoves

• 490,000 improved cookstoves

• 10,000 household biogas units
  within five years—benefiting one million households.

AEPC has also carried out capacity-building initiatives for provincial and local authorities under the GCF Readiness and Capacity Development program, strengthening Nepal’s institutional framework for climate adaptation.

Energy Efficiency and Institutional Innovations

Under the Central Renewable Energy Fund (CREF), AEPC provides financial assistance through blended finance, combining grants, viability gap funding, and credit facilities.
Its Sustainable Energy Challenge Fund, supported by the UK’s Nepal Renewable Energy Programme, GIZ, and KfW, is fostering private sector–led sustainable energy projects with technical and financial backing.

Solar Thermal Roadmap 2082: Toward Net-Zero by 2045

Given Nepal’s high solar radiation (1,600–2,000 kWh/m² annually) and 99% electrification rate, AEPC and ICIMOD jointly developed the Solar Thermal Roadmap and Implementation Plan 2082.
The plan envisions:

• 1,354 MW solar thermal capacity for domestic use

• 29 MW for industrial applications
  by 2045, aiming to replace fossil fuel–based thermal systems and achieve net-zero emissions.

Socioeconomic Impacts and Employment Generation

The renewable energy sector now hosts over 500 active companies, creating more than 40,000 direct and indirect jobs across biogas, solar, and micro-hydro supply chains.
Beyond environmental benefits, AEPC’s programs have elevated rural livelihoods, improved women’s health through clean cooking, and reduced rural-urban energy disparities.

Challenges and Policy Priorities Ahead

Despite impressive progress, AEPC identifies key challenges:

• Reconstruction of disaster-damaged micro-hydro and mini-grid projects

• Grid integration of small hydropower systems

• Budget allocation for rehabilitation and national grid connection

• Enactment of the Renewable Energy and Energy Efficiency Bill pending in Parliament

The government’s commitment to providing complementary funds for donor-supported projects remains crucial for achieving full electrification and universal clean cooking access.

AEPC’s 29-year journey reflects Nepal’s evolving energy vision—from rural electrification to a comprehensive energy transition agenda.
By aligning national programs with global climate goals, leveraging carbon finance, and strengthening public–private partnerships, Nepal is positioning itself as a regional model for decentralized, low-carbon energy development.

If implemented effectively, AEPC’s upcoming roadmap could make Nepal one of the few developing nations to approach carbon neutrality by 2045, while simultaneously uplifting millions through clean, affordable, and reliable energy.

@aarthiknews