Nepal is one of the least developed countries, with the lowest per capita energy consumption in
the world. Traditional solid biomass plays a significant role in meeting the primary energy demand in the
country, which represents about 87% of the total primary energy mix. Till date, only 50% of the population
has access to electricity, and disparity between the urban and rural areas in terms of access to energy is
prevalent. In order to improve the energy situation in rural areas, the Government of Nepal initiated the
promotion and development of renewable energy technologies (RETs) through subsidies. Nepal has the
potential to generate energy through renewable sources like mini/microhydro schemes, solar power, biogas
and wind. It is estimated that more than 50 MW of electricity can be generated from the micro hydro
schemes, 2100 MW from solar and 3000 MW from wind. Moreover, the country has the capacity to develop
about 1.1 million domestic biogas plants. RETs may provide ample opportunity to improve the vulnerable
rural energy system in Nepal if the available renewable resources are optimally utilized.