ProClime and the Independent Power Producers’ Association of Nepal (IPPAN) have signed a Memorandum of Understanding (MoU) to facilitate the issuance of up to 2000MW of International Renewable Energy Certificates (IRECs) for Nepal’s hydropower sector. The agreement was formalised at the ‘Unlocking Green Monetisation of Nepal’s Hydropower’ event, held at Hotel Himalaya in Lalitpur on 31 January 2025.

The partnership aims to enable Nepal’s power producers to benefit from carbon trading and climate finance opportunities, strengthening Nepal’s position in the global renewable energy market while promoting sustainable hydropower development.

At the event, IPPAN President Ganesh Karki highlighted Nepal’s hydropower potential of 120,000MW, of which only a fraction has been utilised. He noted that the government has set a target of generating 28,500MW of electricity by 2035, with 15,000MW planned for export, particularly to India.

Karki stressed the need for investment in Nepal’s energy sector, estimating a requirement of US$46 billion. He also called for policy stability, infrastructure improvements, and incentives such as tax holidays and concessional financing to attract domestic and foreign investors.

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

The MoU represents a significant step towards enhancing Nepal’s participation in international carbon markets and supporting the country’s green energy ambitions.