Based on the current political scenario and unstable government, RERL might face following risks that could delay the project delivery targets and impact the program in various possible ways.
- The risks and uncertainties are still prevalent in Nepalese societies as there has been very slow progress in constitution making and peace building. The lack of elected local government bodies and unstable security situation owing to fluid political situation may hamper program implementation through DDC. The program plans to approach this challenge by engaging DEES and SO staff into inclusive and participatory dialogues with the local communities and political parties for setting priority at the district level with regards to selection of energy projects. Building on the experience of REDP, maintaining a cohesive relationship with local communities and their leaders is essential, though not formally representing any local government.
- Promotion of livelihood in remote places is difficult and RERL plans conduct activities in close partnership with the business communities of the districts (chamber of commerce and other associations), which would also promote the social capital of the programme. Networking and partnership at local level is important for smooth implementation of programme and its sustainability. Thus, the longer-term sustainability of the energy service delivery and effective use models contained in RERL programme will be determined by progress in the decentralization and local capacity building agenda.
- Market inflation might be a risk to complete the project in the approved budget plan. Increase in cost of equipments and climate-induced disaster events provide threat to the energy systems that are being planned or already built.
- With the load-shedding and bandhs; manufacturers in the market might hamper timely supply of materials, causing delay in commissioning of power plants.
- In addition, frequent change of Government authorities like LDOs and ED of AEPC in an unstable political scenario is a possible risk to smoothly implement the RE initiatives/activities as planned.