ProClime-IPPAN partnership to add 2 GW capacity to I-REC scheme, first issuance in July

ProClime's partnership with Nepal's Independent Power Producers Association (IPPAN) is expected to boost the country's I-REC registered capacity by 2 GW — from the current 0.052704 MW — with the first hydropower I-REC issuances due by early July, CEO Kavin Kumar Kandasamy told Platts in an interview.

"We are committed to registering close to 2 GW of hydropower capacity," Kandasamy said, "and have already successfully registered Nepal's first hydropower device — an 8 MW facility."

The MOU, signed in February, has already shown progress. ProClime said that 8 MW has been registered and the first issuance is expected to be completed in July.

Project registration set to complete in Q1 2026

While the latest registered capacity for Nepal in the I-REC database consists of only 0.052704 MW of solar, ProClime aims to register an additional 500 MW within the next two months, followed by 800 MW by December. The remaining capacity is slated to come online in the first quarter of 2026.

"Nepal's current issuance volume stands at 1.08 MWh up to date," Kandasamy said. "With hydropower issuances scheduled for the first week of July, we expect volumes to scale up significantly by the end of the month."

This progress, underpinned by a formal Memorandum of Agreement with IPPAN, is set to transform Nepal's renewable energy landscape and position ProClime as one of the leading companies holding the majority of registered capacity in Nepal.

Impact of the MOU and demand outlook

Kandasamy stressed that under Evident Registry criteria, 1,500–1,700 MW of the 2 GW capacity could be eligible for I-REC issuance.

"That represents a monumental shift," he said. "This will fundamentally change Nepal's position in the global renewable energy certificate market."

ProClime aims to manage over 60% of Nepal's emerging I-REC market as buyer interest grows, driven by multinationals, sustainability-oriented manufacturers and green traders.

"We're seeing interest from Europe and Japan, especially companies looking to support sustainability goals under frameworks like SBTi," Kandasamy said.

Cross-border usage will also play a part, with redemption volumes projected to rise sharply.

"As of May 2025, we observed that redemptions already total 1,206 MWh — surpassing issuances — and we see them reaching 10–20 GWh annually by 2026-2027," he added.

Optimum pricing is essential to incentivize both buyers and sellers

With first commercial trades expected by end-July, ProClime expects Nepalese I-RECs to initially price at $3–$4/MWh.

"Based on our analysis, the optimal pricing view is between USD 5 and 7 per MWh," Kandasamy explained. "That level strikes the right balance — rewarding high-quality renewable generation while ensuring cost-effectiveness for buyers."

Policy stability will be key to sustaining this market, he emphasized.

Strategic fit for ProClime

"Nepal's hydropower and wind capacity present a valuable opportunity for sustainable growth across South Asia," Kandasamy said. "Our entry enables the issuance and retirement of high-integrity I-RECs, supporting our mission to drive credible, transparent renewable energy tracking globally."

By extending its footprint into Nepal, ProClime expects to help mobilize international capital and bolster the region's renewable energy ambitions.

The MOA with IPPAN also aligns with Nepal's national clean energy goals, ensuring that the partnership is aligned with the country's broader ambitions to grow its renewable energy sector.

"Nepal has a strong renewable base, and this partnership supports its commitment to expanding capacity across hydropower and other clean energy sources," Kandasamy said. "By enhancing transparent issuance under I-TRACK, we aim to attract international investment and help Nepal achieve its Paris Agreement climate targets, while also creating long-term economic opportunities for local developers."