Possible Ways of Minimization of the Rural Electrification Cost in Nepalese Context

Undertaken for: Rural Electrification Development Alliance of Nepal (REGDAN) with Winrock International Funding

This study’s purpose was to examine ways in which the costs of rural electrification in Nepal could be minimised. The project analysed: i) the implementation modalities, ii) current difficulties and issues and iii) the possible ways to minimise costs. The project identified the difficulties of rural electrification in Nepal – particularly with poor economic returns available from projects that have high initial investment, but low revenue potential. Costs of rural electrification were analysed for Butwal Power Company (BPC), South Lalitpur Rural Electric Cooperative (SLREC) and Nepal Electricity Authority (NEA). Various recommendations were made as to possible ways to reduce costs whilst improving services.

Minimizing Rural Electrification Cost Project Summary Document v0