Government of Nepal
Ministry of Energy, Water Resources and Irrigation

Alternative Energy Promotion Centre

Making Renewable Energy and Energy Efficiency Mainstream Supply in Nepal
Productive Energy Use

Overview of PEU Component



Business Development for Renewable Energy and Productive Energy Use (PEU) component is one of the major component of National Rural and Renewable Energy Program (NRREP), commenced from 16 July 2012 for the duration of five years. Productive energy use (PEU) promotion seeks to enable the translation of Renewable Energy (RE) provision into positive economic outcomes for Micro, Small and Medium Enterprises (MSMEs). Those positive outcomes (i.e. increase in product outputs, improved product quality and increased productivity) will result in income generation growth for MSMEs and contribute to poverty reduction in rural areas of Nepal. This component seeks to promote productive energy use of RE in order to generate employment and income of the rural men and women by establishing MSMEs. 



Development Objective:

The development objective of AEPC/NRREP, which is common to its program Components, is: “To improve the living standard of rural women and men, increase employment of women and men as well as productivity, reduce dependency on traditional energy and attain sustainable development through integrating the alternative energy with the socioeconomic activities of women and men in rural communities.”


Immediate Objective:

The immediate objective of the PEU component is: “To contribute to an increase in income generation and employment potential for MSMEs in rural areas, particularly for women and men belonging to socially and economically disadvantaged groups.”


Outputs of PEU Component:

The major outputs of the component are

  • Capacities of existing MSMEs are enhanced
  • New / innovative MSMEs are created and operationalised, with an emphasis on integrating women and marginalized group
  • Appropriate BDS are available to MSMEs in RE catchments areas