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During Phase I of ESAP, the Solar Energy Component has been largely successful towards meeting its immediate objective of creation of an enabling national framework for dissemination of quality SHS, which can be utilised to better target poorer segment of the rural population in future. With 95% of the systems installed functioning one year after installation, the technology and the system of delivery seems to be reliable and sustainable.
In this context, the Solar Energy Component Description for ESAP Phase II is prepared with a broader perspective of having some new elements to better address different problems in dissemination of solar energy systems. Besides Danida and Norway, other donors are also expected to participate in the programme.
The Solar Energy Component envisages continuous support on promotion of Solar Home Systems. In addition, the component also plans to support promotion of ‘Solar Tuki’ as an alternative lighting option of rural poor.
The total Component budget is Euro 2.25 million of which Euro 2.15 is expected to be borne by external development partners and rest by GoN. In addition there is an additional funding for subsidy to 150,000 SHS and 250,000 solar tukis as an immediate relief where SHS and other electrification is still expected difficult and/or unaffordable.
Private manufacturers in Nepal have been successful in developing a national production of solar water heaters and of solar home PV systems, and in developing approaches for the dissemination and the servicing of their products. The SE component of ESAP seeks to improve the quality of components used in the systems, including local production by assisting in the establishment of a Renewable Energy Test Station. ESAP reinforces the national policy and strategy for dissemination of solar home PV systems by providing technical assistance to the formulation of more rational subsidy policies, and by providing - through the "Financing of Rural Energy Investments Component" - financial support to the acquisition of such systems by private households and needy institutions in target areas.
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