Nepal Infrastructure Investment Fund (NIIF) has announced to invest in a 90 megawatt solar energy project.
The project is being developed under a strategic partnership between NIIF and Dolma Impact Fund. Global Equity Fund Limited, which is promoted by Himalayan Everest Insurance, Himalayan Life Insurance, Nepal Reinsurance, and Prabhu Mahalaxmi Life Insurance, manages NIIF.
This strategic partnership seeks to meet Nepal’s growing energy demand, reduce reliance on imported fuels, and ensure the country’s sustainable energy future.
According to the investment agreement, NIIF has acquired partial ownership in Solar Farm Limited under the Dolma Impact Fund–1. Solar Farm Limited is Nepal’s leading on-grid independent power producer (IPP) in solar energy. It currently operates a 5 MW solar photovoltaic plant in Chautara, Tanahun.
This investment makes the Global Equity Fund one of the largest institutional investors in Nepal’s solar sector.
Global Equity Fund has also invested, through various investment instruments, in projects such as the 25 MW Pashupati Renewables, the 6.8 MW GI Solar, and the off-grid solar company Gham Power.
In a country heavily dependent on hydropower as an alternative to fossil fuels, investments in solar energy in Nepal are gaining traction lately. According to a study published with the support of the German Agency for International Cooperation (GIZ), significant solar energy production is feasible in the northern and western regions of Nepal. The study estimates the total technical potential for solar energy production in Nepal to be around 432 gigawatts, which is tenfold of the country’s economically feasible hydropower potential (42 gigawatts).
