Capacity Development for Scaling Up Decentralized Energy Access: Lessons from Nepal on Its Role, Costs, and Financing

Micro hydro power is ideally suited to meeting the energy needs of remote communities in the hills and mountains. A national micro hydro program has been operating for more than a decade in Nepal. Similarly a fuelwood-conserving cooking stoves program has been operating in Nepal for decades. Capacity Development for Scaling up Decentralized Energy Access Programmes describes these two programs and takes an in-depth look at the role of capacity development in scaling up from pilot projects to national programs. How do capacity development costs of training and institution building compare to the hard costs of materials and labor? How does the division of costs change as the programs reach maturity?

This study reveals that although it takes considerable upfront public investment to kick-start capacity development, once these investments have been made they can attract substantial financing from private sources at later program stages. Indeed, for the two programs studied, the contributions of households, communities, and other private sources often make up a significant portion of the overall financing needs. It also explores potential future trends in program costs and financing sources. It makes the case for upfront public investments to develop national and local capacities for scaling up rural energy services delivery, and to catalyze private financing.

The book provides an invaluable guide for decision makers, development practitioners, policy analysts, and program planners both in the developing and developed world.