Solar technologies drive economic development in Nepal

Promotion of Solar Technologies for Economic Development in Nepal (POSTED)

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country
  • Overall term

    2021 to 2024

  • Products and expertise

    Sustainable infrastructure: water, energy, transport


The supply of electricity in Nepal is still not satisfactory, especially in rural areas. Connecting to the public grid is often challenging because of the hilly terrain. Off-grid systems powered by renewables could improve the situation and are already recognised technologies in Nepal. However, the quality of installed systems is often insufficient, frequently resulting in failures.

In general, Nepal has high renewable energy potential. So far, the country has mainly focused on hydropower, which now accounts for more than 90 per cent of the country’s electricity generation. One problem here is that hydropower is influenced by seasonal differences and daily power cuts are still common during the dry season.

Diversifying energy sources would make the electricity supply more reliable and solar power in particular could complement hydropower. However, as there has been a narrow focus on hydropower in the past, the knowledge and skills needed to develop solar photovoltaics (PV) still fall short of requirements.

A Farmer in front of solar panels in a field.


The environment for photovoltaics in Nepal is improving and the sector develops independently in the long term.


Together with Nepalese training institutions, the POSTED project establishes trainings for developers, installers and representatives of provincial and local governments. The training courses cater to the demands of the market and are financed by training fees so that they can gain financial independence. In addition, the aim is to empower the relevant actors by developing standardised processes for the planning and implementation of PV projects.

POSTED focuses on three areas of application:

  • Solar irrigation systems for agriculture
  • Solar mini-grids for the electrification of remote settlements
  • Solar rooftop systems for institutions and industries

The project is being implemented in close cooperation with Alternative Energy Promotion Centre (AEPC), the lead executive agency in Nepal.

Last update: February 2023