Nepal’s NMB Bank Secures $25M Clean Energy Funding From British International Investment

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Nepal is one of the richest countries in the world in terms of inland water resources. Nepal has about 6000 rivers, rivulets, and tributaries, and also has other significant resources such as snow cover, springs,

. Nepal’s technical hydropower potential is reported to be around 83,000 MW. The economically viable potential is about 43,000 MW.18 hours of load-shedding per dayCurrently, Nepal has surplus electricity during the wet season and is now in a position to export power to neighboring countries, such as India. The countryfrom various hydropower projects through the Dhalkebar-Muzaffarpur 400 kV transmission line to the Day-Ahead Market of Indian Energy Exchange .

To ensure self-sufficiency throughout the year, as well as earn some substantial revenue from electricity exports, Nepal is working to accelerate the utilization of its water resources. There are several hydropower projects at various stages of development under the Engineering Services Directorate of the Nepal Electricity Authority. These include the Chainpur Seti HEP, Aandhi Khola Storage HEP, and the Begnas Rupa Pump Storage HEP.

“In an event organized for signing the deal, CEO of NMB Bank Sunil KC said, – “This deal with BII is especially important in current circumstances when we are facing a challenging time with respect to loanable funds in the industry. We are privileged to partner with BII for a second time in a deal which is first of its kind in the industry aimed towards financing Hydropower and renewable energy sectors.

“Srini Nagarajan, Managing Director and Head of Asia at British International Investment, commented, “I am excited that BII’s renewed partnership with NMB Bank strongly aligns with our objective to increase climate finance. BII’s capital will support the bank’s climate assets by generating up to 50MW of clean energy, helping to limit greenhouse gas emissions and enhancing productive, inclusive and sustainable economic opportunities for local communities.

“Nepal remains a priority market for BII, and we are proud to deploy our capital to support the country’s growth trajectory and net-zero ambitions.”

 

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