Kathmandu, November 6, 2026 - Nepal is exploring ways to expand and diversify private sector investment in clean energy, as financing constraints, regulatory challenges and market risks continue to affect the development of the country’s broader renewable energy sector.
As part of an EU-commissioned assessment of Nepal’s clean energy investment market, a stakeholder workshop was held in Kathmandu yesterday, bringing together representatives from the Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority (NEA), Electricity Regulatory Commission (ERC), European and Nepali businesses, financial institutions and development partners.
The workshop provided a platform for stakeholders to discuss Nepal’s clean energy investment potential, identify promising areas for private sector participation and examine the major barriers preventing investment from reaching its full potential.
Although Nepal has substantial renewable energy resources and an established private sector presence in hydropower development, participants highlighted the importance of addressing persistent financing, regulatory and market-related challenges to unlock further investment opportunities across the energy sector.
Discussions focused on identifying practical solutions to strengthen the investment environment, encourage greater private sector participation and create opportunities for stronger collaboration between Nepali and European businesses and financial institutions.
The assessment is expected to provide important insights into Nepal’s clean energy investment landscape and help identify areas where targeted support, partnerships and policy engagement could accelerate investment.
The findings will inform future European Union engagement in Nepal under its Global Gateway strategy, which aims to strengthen sustainable infrastructure, mobilise investment and promote international partnerships.
Expanding private investment beyond conventional hydropower could also help Nepal diversify its clean energy portfolio, strengthen energy security, support its sustainable development goals and accelerate the transition towards a more resilient and low-carbon economy.
As Nepal seeks to harness its renewable energy potential, creating a predictable investment environment and strengthening cooperation among the government, private sector, financial institutions and international development partners will be essential to turning clean energy opportunities into tangible investments.
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Published Date 2026-11-06 18:34:02
