Nepal is committed to achieving a balanced energy mix by emphasizing the use of Renewable Energy sources. NMB has taken an active role in supporting businesses involved in the Renewable Energy Sector, encompassing solar, biogas, micro-hydro, clean cook stoves, solar dryers, solar pumps, improved water mills , and electric vehicles. These renewable energy options offer alternative energy solutions to address the energy scarcity in our country. NMB works in close collaboration with Alternative Energy Promotion Center (AEPC), to bring forth the best solution and thus create a win-win situation for various stakeholders involved in the Renewable Energy sector. The bank has also been imparting services as the Handling Bank for Alternative Energy Promotion Centre/Central Renewable Energy Fund since January 2018.
NMB has been providing an important space for Renewable Energy Financing. The commitment begins with the setup of a dedicated team for Renewable Energy financing to meet the specific demands and challenges faced by renewable energy vendors, consumers, and stakeholders. The bank is more focused on value-based banking and financing in the Renewable Energy sector has remained pivotal to meet the objective. These investments have contributed to the people’s livelihood including the population residing at remote locations, which are deprived of access to energy. Thus, in addition to aligning with government priorities, these investments also ultimately contribute towards achieving UN Sustainable Development Goals.
NMB has been bridging the working capital gap for companies engaged in renewable energy projects. The bank has gained valuable experience from financing micro-hydro, energy efficiency, and solar projects. This expertise has enabled NMB to provide financing to remote village user committees eager to generate their own alternative energy sources and extend energy access to rural communities, thus making them more self-sufficient. Additionally, NMB is involved in funding utility-scale solar projects and other renewable energy ventures, including waste-to-energy, biomass pellets, and briquettes.
NMB's commitment to the renewable energy sector extends beyond these initiatives. The bank is strategically moving ahead for the growth of Electric Vehicles financing. The bank also prioritizes Run of River Types Mini Hydro Power projects largely dedicated to electrifying the untapped population. These investments in Green Financing have contributed to increasing the share of Green Energy in the energy mix of the country and also enhanced private sector investments in Green Energy technologies and systems.
The following are the financing opportunities we see under renewable energy:
NMB is using a variety of financial rapports to bridge market gaps that hinder the development of renewable energy at present through various blended finance mechanisms. NMB collaborates with microfinance institutions to improve energy availability. Furthermore, the bank works in partnership with various International Agencies and Development Partners to foster the growth and advancement of the renewable energy sector in Nepal. These combined efforts aim to create a self-sufficient community by enhancing energy access and security across the country.