ProClime and IPPAN Sign MoU to Issue 2000 MW of IRECs for Nepal’s Hydropower

ProClime and the Independent Power Producers' Association of Nepal (IPPAN) have signed a landmark Memorandum of Understanding (MoU) to facilitate the issuance of up to 2000 MW of International Renewable Energy Certificates (IRECs) for Nepal’s hydropower sector. The MoU was formalized at the 'Unlocking Green Monetization of Nepal's Hydropower' event, held at Hotel Himalaya in Lalitpur.

This strategic partnership aims to unlock substantial economic and environmental benefits, enabling Nepal’s power producers to leverage carbon trading and climate finance opportunities. The initiative is expected to enhance Nepal’s position in the global renewable energy market while promoting sustainable hydropower development.

During the event, Ganesh Karki, President of IPPAN, emphasized the immense potential of Nepal’s hydropower sector and the opportunities for green monetization through carbon trading and investment. He highlighted Nepal’s abundant water resources, with an estimated hydropower potential of 120,000 MW, though only a fraction has been harnessed.

'The government has set an ambitious target of generating 28,500 MW of electricity by 2035, with 15,000 MW earmarked for export, particularly to India,' Karki stated.

He also stressed the need for attracting investments—estimated at $46 billion USD—across various sectors, including energy. Given Nepal’s strategic location between India and China, he underscored the potential for cross-border electricity trade to boost foreign exchange earnings.

Karki called for policy stability, infrastructure development, streamlined bureaucratic processes, and incentives such as tax holidays and concessional financing to attract both domestic and foreign investors.

Additionally, Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission of Nepal, introduced the Nepal IREC Calculator, an innovative tool designed to help power producers assess the value of renewable energy certificates.

Kavin Kumar Kandasamy, CEO of ProClime, delivered a keynote speech, providing strategic insights into monetizing the green attributes of hydropower through carbon markets and IRECs. He reiterated the significance of integrating Nepal’s hydropower sector into the global renewable energy trading framework to maximize economic and environmental gains.

The MoU marks a significant step forward in Nepal’s renewable energy journey, fostering international collaboration and positioning the country as a key player in the global green economy.

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