Nepal Photovoltaic Energy Storage Project

Is solar PV a viable option in Nepal?

Nepal has enormous potential for the deployment of off-river PHES systems, which have a much lower environmental and social impact than river-based hydro storage. The economic advantage of solar PV over fossil and hydro energy in a mature and competitive market is compelling. However, several factors can impede the rapid deployment of solar PV.

Can solar power power the Nepalese energy system?

Nepal has vast low-cost off-river pumped hydro-energy-storage potential, thus eliminating the need for on-river hydro storage and moderating the need for large-scale batteries. Solar, with support from hydro and battery storage, is likely to be the primary route for renewable electrification and rapid growth of the Nepalese energy system.

How can Nepal meet its energy needs from solar PV?

Nepal can meet all of its energy needs from solar PV by covering 1% of its area with panels, even after (i) Nepal catches up with the developed world in per-capita use of energy and (ii) all energy services are electrified, eliminating fossil fuels entirely (an increase of 70-fold in electricity production).

How can Nepal unlock the potential of solar PV?

The government of Nepal can unlock the potential of solar PV by providing support for several tens of thousands of rooftop solar systems and several 10- to 100-MW solar farms in order to establish supply chains and a critical mass of knowledge. This support can be in the form of advantageous feed-in tariffs to unlock private capital.

How much does solar cost in Nepal?

The solar resource in Nepal is compatible with production of electricity at a cost of US$40 per MWh once the Nepalese solar industry becomes mature, falling to <US$30/MWh in 2030 . The speed of development of the global solar industry, arising from rapid price reductions, is so fast that previous reports on energy options require updating.

Why should Nepal invest in rooftop solar & solar farms?

Government and international support for a few hundred megawatts of rooftop solar and solar farms in Nepal will help to overcome the initial hurdle, leading to rapidly increasing solar infrastructure and deployment skill, and a rapidly declining solar-electricity price.