USAID's Urja Nepal Project Year 2 Work Plan

The project aims to encourage private investments into Nepal's economy by providing technical assistance to develop essential building blocks for a robust electricity market. These building blocks include technological improvements and clean energy, competitive procurement processes for energy and energy infrastructure, streamlined administrative processes, and an institutional, legal, and regulatory framework that will increase the buying and selling of electricity throughout the region. Urja Nepal is part of USAID's Asia Enhancing Development and Growth through Energy (EDGE) program, which is facilitating regional growth through the installation of energy infrastructure, energy sector reforms, and secure regional energy markets. The project's activities focus on market development and expansion, which will help Nepal to realize reliable, secure, and affordable electricity within a self-sustaining market. The four objectives of Urja Nepal's Task Order form the building blocks of this new market. The first objective is to improve utility performance and relevant sector policies. Urja Nepal will review the legislative, regulatory, and operational functions of its Government of Nepal counterparts to identify the appropriate next steps to decentralize the provision of services while also expanding access to electricity services. These improvements will be coordinated with an eventual Integrated Resource and Resilience Plan (IRRP). The second objective is to deploy advanced energy systems, which will incorporate advanced planning systems and energy technologies within the generation, transmission, and distribution sub-sectors. Variable generation, renewable energy, storage, and demand-side technologies will each be considered when developing an efficient electricity market and in identifying and mitigating environmental and social impacts. The third objective is to increase private sector engagement in Nepal's electricity market. This will be driven by streamlined and transparent procurement processes, and the establishment of a level playing field for all potential investors. These features of a growing economy are all supported by meticulous planning processes, including IRRP. Urja Nepal will also employ cross-cutting approaches in each counterpart to support the Government of Nepal's efforts to incorporate environmental and social responsibility into the procurement process. The fourth objective is to advance cross-border electricity trade between Nepal and its neighbors. This will involve developing a framework for cross-border trade, identifying potential trade opportunities, and supporting the development of necessary infrastructure. Urja Nepal's activities will be implemented over a period of two years, from October 1, 2021, to September 30, 2023. The project will be implemented in collaboration with the Government of Nepal, private sector companies, and other stakeholders. The project's budget will be managed by Deloitte Consulting LLP, and the project's progress will be monitored and evaluated regularly.