Denmark has announced it will be providing Danish Kroner 205 million (US$36M) to help with the implementation of the National Rural and Renewable Energy Programme (NRREP) in Nepal. The agreement was signed by Finance Minister Shanta Raj Subedi, and Danish Embassador Mr. Morten Jespersen on behalf of their respective governments.
The objective of the program is to reach more than one million rural households with alternative energy technologies, including small hydropower, biogas, solar cells and improved cooking stoves. Lack of access to energy in rural Nepal is a major challenge for Nepal's socioeconomic development and for securing long term peace.
Since 1998 Denmark has strategically been part of building up and supporting the Government in developing and rolling out renewable technologies in rural areas of Nepal, which are not part of the central grid. The new National Rural Renewable Energy Programme, which runs from July 2012 to July 2017 will be led by the Nepalese authorities. NRREP's budget is projected to be US$ 184 million and will be funded by Development Partners and the Government.