World Bank Approves Financing for Nepal Grid Solar and Energy Efficiency Project

Janaki Mandir, Nepal

Janaki Mandir, Nepal

The World Bank today approved a US$130 million credit for the Nepal Grid Solar and Energy Efficiency Project to help address Nepal’s energy shortages that are a major constraint to economic growth and overcoming poverty.

The project intends to increase electricity supply to the national grid through grid-connected solar farms and reduce distribution losses in pilot distribution centers.

The project has two components. The first component includes the design, supply, construction, commissioning, operation and maintenance of grid connected solar farms, in a total capacity of 25 MWp, to supply electricity directly to the Nepal Electricity Authority’s (NEA) distribution network. The second component includes the preparation of a Distribution Loss Reduction Master Plan and implementation of pilot loss reduction projects in selected distribution centers of NEA.

“Reliable electricity is crucial for Nepal to achieve its full growth potential.”

Takuya Kamata, World Bank’s Country Manager for Nepal

Nepal suffers up to 18 hours of electricity blackouts a day, especially in the winter months. Solar power is one of the ideal power generation sources to complement the hydropower electricity generation in Nepal as solar radiation is strongest in winters when the electricity demand is at the highest and hydropower generation at the lowest levels.

“Reliable electricity is crucial for Nepal to achieve its full growth potential,” said Takuya Kamata, the World Bank’s Country Manager for Nepal. “This project will not only address short-term measures of introducing solar power generation into the system but will also contribute to reduction of distribution losses” he said.

The credit carries a 6 year grace period and a maturity of 38 years. Source


Tags assigned to this article:
nepal

You may have an interest in also reading…

Evan Harvey, Nasdaq: A Short-Term Look at Long-Term Growth – The Expert Outlook on 2017

Given the rapidly changing state of our global economic and political picture, it can be daunting to integrate sustainability strategies

UN Spotlights Key Role of Evaluation in New Development Agenda

Evaluation will become more necessary for the post-2015 Sustainable Development Goals, a United Nations body said today, as it launched

OECD: Private Finance for Sustainable Development

OECD Secretary-General Angel Gurría opened the third edition of the annual PF4SD Conference, highlighting the urgent need to step up