Energy

Rural electrification is the main objective in the energy sector support and seen as a key component in increasing the peace dividend for ordinary people. Today, only 40% of the population has electricity. Rural electrification through micro hydro and solar energy is supported through Alternative Energy Promotion Centre (AEPC)’s ESAP programme. Support is also channelled through the private sector companies Himal Power Ltd and Butwal Power Company to their rural electrification projects.

Earlier Norway has supported the establishment of hydropower plants, and there is ongoing support to 8 feasibility studies for small hydropower plants in rural areas, where the Norwegian Water Resources and Energy Directorate (NVE) assists as a technical project partner. These hydropower plants will mainly supply people living in rural areas in the future. Capacity building and university cooperation are also a part of the portfolio.

A power sector reform is being planned in Nepal, to implement the Government’s vision of developing 10 000 MW capacity in 10 years.  Norway will assist with inputs to this process by sharing relevant experiences on i.e. regulatory issues, power sector reform and revenue sharing.

The Norwegian private sector is involved in the 60 MW power plant Khimti, the largest private power plant in Nepal. In addition SNPower is holding licenses for projects in the Tamakoshi valley, and feasibility studies are ongoing.

The planned bilateral (state-to-state, NGOs and the private sector) energy assistance to Nepal amounts to approximately NOK 60 million in 2009. In addition, Norwegian assistance is also channelled through multilateral organizations as UNDP, the Asian Development Bank and the World Bank.

The tables below show the majority of Norway's current project agreements within the area of energy (The tables do not present a complete list).