USAID SAREP visit to Nepal
A delegation of USAID/India, the South Asia Regional Energy Partnership (SAREP) and the South Asia Regional Initiative for Energy Integration (SARI/EI) visited Nepal from July 17 to 22, 2022 to conduct training and demonstration of the South Asia Energy Database (SAED) to Nepal’s power sector. During the trip, various stakeholders were assured of the work that SAREP would take over after the conclusion of SARI/EI in September 2022.
The delegation also met the USAID/Nepal team and discussed the current state of Nepal’s electricity sector and bottlenecks in electricity sector reforms. They also met the Urja Nepal team, which is supporting Nepal Electricity Authority (NEA) in many things, including electricity trading with India on the power exchange. In a later meeting with NEA, the electricity authority discussed issues such as Cross Border Energy Trade (CBET) and power exchange-based trade and listed areas such as smart meter deployment, upgradation of NEA’s training center in terms of designing and conducting of the training program, designing of the syllabus, etc. in which it would require SAREP support. SAREP also conveyed additional areas, such as green hydrogen, Distribution Utilities Network (DUN), and cyber security, in which it can provide technical assistance.
In a meeting with the senior officials of Nepal’s Ministry of Energy, Water Resources, and Irrigation (MOEWRI), the delegation sought the ministry’s support in effectively implementing the regional programs of USAID. Broad areas of the potential scope of assistance from SAREP in fiscal year 2023 were highlighted. These include:
- DUN
- Strengthening of trading entities
- Green Hydrogen
- Integrated Resources and Resilience Planning (IRRP), Sustainable Public Procurement (SPP)
- Innovative financing instruments for clean energy projects
Sushil Chandra Tiwari, Secretary (Energy), MOEWRI, assured full support and cooperation in these areas.
SAREP also found a lot of opportunities for cooperation with the Alternative Energy Promotion Center (AEPC), which is currently working on renewable energy and energy efficiency. The two bodies will hold another round of discussion to explore further areas where SAREP can provide AEPC technical assistance.
The team also met the Agriculture, Cooperative and Natural Resources Committee (ACNRC) under Nepal’s House of Representatives. USAID/India and USAID/Nepal have decided to support ACNRC through SAREP and Urja Nepal. This includes support to a regional-level energy event organized by ACNRC on regional energy cooperation and CBET.
The delegation also met the Hydroelectricity Investment and Development Company Limited (HIDCL), which was established by the Government of Nepal to finance hydropower and other renewable energy in the country. HIDCL expressed interest in working with SAREP on innovative financing instruments, training, and capacity building, promoting private sector consulting services in facilitating the financial closures of projects, project appraisal services, etc., apart from joining the South Asia Forum on Energy Investment (SAFEI). SAREP will look into specific aspects of technical assistance that it will provide HIDCL.
The delegation also met the Independent Power Producers’ Association, Nepal (IPPAN) and Nepal Energy Exchange Limited (NEPEX), who conveyed their concerns around issues in Nepal’s power sector, especially in terms of hydropower generated in the country and its trade.
