The Renewable Energy Project (REP) is a joint effort of the European Union and the Government of Nepal to create renewable energy infrastructure and services for the benefit of rural people in remote districts of Nepal. The REP focuses on provision of solar energy systems for public services (schools, hospitals, safe water provision, communications, etc) of remote districts, as well as for income generating activities.

The energy service is provided to the end-users through community based and owned energy service providers. These Community Energy Service Providers (CESPs) will be one of the key players in decentralized energy service of Nepal. The CESP provides electricity services to the end users and operates and maintains the stand-alone PV systems against service fee.  The REP will cover the entire cost required for the installation of the solar energy systems, and the end use appliances and necessary infrastructure will be provided by the communities.

The project embraces highly participatory approach in its implementation, which begins with the identification of COs through the social mobilization. The REP provides extensive capacity strengthening support at central, district and community levels as well as the continuous technical assistance to ensure the sustainability of the schemes. In addition, REP addresses the question of financing of the renewable energy technologies with emphasis on the financing of the CESP, and provides extensive support to the quality assurance of both the large PV systems and solar thermal equipment.

The European Commission and the Government of Nepal signed an addendum to extend the implementation period of the REP till 17 August 2011 due to importance of the REP for development and peace process in Nepal. The project extension open the way for procurement of solar energy equipment to rural communities, and is boosting the confidence of the communities, who ar working together with the PTF for the establishment of community-based energy utilities in rural areas. The total funds available for its implementation are EUR 15 million as contribution from the European Commission and EUR 0.675 million as the contribution from the Government of Nepal.