Could the global financial crisis slow down rural electrification in Nepal?

Remittances could be playing an important role in the electrification process, in which case the global financial crisis could slow down the pace of rural electrification in Nepal.

How do installation/supply companies get paid for rural electrification projects?

The installation/supply companies get their payment for a rural electrification project in parts and in the form of subsidy from government, loans from banks and equity from the villagers. Simplifying the access to subsidies and credit, as well as the procedures for project development is, therefore, important for market formation.

What is Nepal's micro hydro and solar PV subsidy programme?

The Government of Nepal has further come up with an ambitious subsidy programme aimed at electrification programs using micro hydro and solar PV to serve three hundred thousand households, equivalent to 20 MW in terms of capacity from 2007 to 2011.

What financial arrangements are necessary to make rural electrification possible?

The financial arrangements necessary to make rural electrification possible generally include community equity or investment from a private developer and subsidy from the government, complemented by credit from financing institutions.

Is rural electrification possible without private finance and Public Coordination?

Rural electrification can hardly advance without the involvement of private finance and public coordination. At the same time, the commercial financial sector is reluctant to engage in rural off-grid investments.