Towards a Reliable Affordable and Sustainable Energy Sector in Nepal

World Bank Supports Energy Sector Reform Program in Nepal

The Energy Sector Reform Program in Nepal aims to support energy sector reforms and accelerate hydropower development in Nepal.

This programmatic Advisory Services and Analytics (ASA) serves as a platform to continue policy dialogue and strategic advice in supporting energy sector reforms and accelerating hydropower development in Nepal.

• Complements the development policy credit operations;
• Existing and future investment operations; and
• Recipient-executed technical assistance activities in the energy sector

The Energy Sector Reform Program in Nepal has two main pillars:

A. Strengthening energy sector institutions and governance: Supports the energy sector reform agenda of government with a focus on strengthening institutional capacity of key stakeholders and improving the sector governance.

Institutional Strengthening

• Institutional strengthening of the NEA for environmental and social management
• Right of way guidelines
• Support to operationalization of Electricity Regulatory Commission
• Support to operationalize Nepal Power Trade Company

Strategic Communication/ Inclusion

• Strategic communications on energy sector reform
• Poverty and social impact assessment of tariff reforms

Financial Viability and Operational Efficiency

• Update of financial viability action plan for NEA
• Strengthen procurement and project management in NEA
• Performance improvement plan and institutional restructuring roadmap for NEA
• Distribution sector modernization plan

Renewable Energy

• Renewable Energy Resource Mapping
• Disaster and Climate Resilient Renewable Energy Power System in Nepal

B. Accelerating hydropower development: Provides strategic advice to help Nepal pursue its hydropower development vision in an efficient and effective manner.

Sustainable Planning

• River Basin Planning and Sustainable Hydropower Development
• Least-cost generation planning

Marketing

• Bank Communications Strategy

Benefit Sharing

• Hydropower benefit sharing
• Vocational Skills
• Clean Cooking

Technical sustainability

• Dam Safety
• Technical support to prepare the Upper Arun Hydropower Project IPF & Economic Study including Capacity Building