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World Bank to Help Scale Up Renewable Energy in Nepal

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World Bank to Help Scale Up Renewable Energy in Nepal
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January 30: The World Bank (WB) has approved the Strategic Climate Fund (SCF) grant of US$ 5.61 million and SCF loan amounting to US$ 2 million to help Nepal diversify its renewable energies, it said in a statement.

According to the WB, the SCF grant and credit will support the private sector-led Mini-Grid Energy Access Project, which aims to mobilize energy-service companies in selected regions of the country to increase capacity of renewable energy mini-grids.

“One component of the project will provide credit facility to the private sector to support renewable mini-grid sub-projects, and help the sector prosper and expand,” said Subodh Adhikari, senior energy specialist and task team leader of the project at the World Bank.

“The second component will provide technical assistance to the mini-grid sector, energy-service companies and partner banks to ensure smooth and sustainable implementation,” he added. 

According to the WB, the Project is aligned to the efforts of the Government of Nepal to address barriers to private sector participation in the renewable energy mini-grid sector. The project aims at addressing these barriers by successfully demonstrating new approaches that will promote public-private partnerships (PPPs). Private entities and cooperatives will be mobilized to provide electricity services to rural areas as “energy service companies” (ESCOs), the statement added.

“These specialized ESCOs will crowd-in the necessary technical expertise and financing capacity to develop, build, own and operate renewable mini-grid projects. They will have access to better credit terms and stronger project development support through the project,” the statement adds.

“This Project will tap in the vast business opportunities and technical potential for the private sector to provide more efficient and sustainable energy services in Nepal,” said Faris Hadad-Zervos, World Bank’s country manager for Nepal.

“It is directly linked to the Government of Nepal’s effort for greater private sector management and commercial financing through public-private partnerships, and the World Bank’s mission of maximizing all financial opportunities for development,” he added.

“The Project aims to improve the overall energy supply situation in Nepal by promoting renewable energy solutions, including the opportunities to capture private sector efficiencies through PPPs,” the statement reads.

 

 

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