Nepal scored 1.31 to take 17th place among the 55 countries on Climatescope 2014. It performed best on Enabling Framework Parameter I and worst on Clean Energy Investment Parameter II.
The mountainous nation is highly reliant on hydropower, sourcing some 93% of its generating capacity from its many rivers. The country’s power distribution and transmission system reaches just 63% of the population and is operated almost entirely by a state-run entity.
Those connected to the grid can expect frequent blackouts, especially during the dry season. In 2013, there were 615 outages, each averaging more than six hours. These can be attributed to the seasonal nature of the country’s hydro capacity, a fundamental supply-demand gap of 1,228GWh and system losses equivalent to 25% of total generation.
In February 2013, Nepal announced subsidies to support renewable energy deployment and electricity access for low-income households. The program provides a feed-in tariff for small hydro and capital expenditure subsidies for solar, biomass and wind.
These depend on the size of installation, number and type of households using the technology and the remoteness of project.
Nepal could become an exporter of power to its neighbours, India and China.