Reflecting from the full-fledged RERL programme the components for the initial two years of RERL will focus on those outputs/activities which are realistically achievable and contribute to build foundation to achieve to broader output. The components are mentioned as below.
Component 1: RE institutional capacity strengthening - It will focus on two major areas, a) enchanced institutional capacity on central, district and village level to coordinate, plan and implement the installation of RE system and consolidation of DEES/DEEU beyong 2012; b) strengthened regulatory provisions to support RE dissemination at central and district levels and also to promote public private partnerships for micro and mini hydro development.
Component 2: Policy and regulatory framework - It will focus on a) support to GoN/AEPC in preparing appropriate regulations and policies, and conduct studies related to compatible institutional structure of GoN/AEPC beyond 2012, SMART subsidy, Grid synchronization, standardization and public private partnership, and b) improved donor harmonization between integrated energy planning, monitoring and quality assurance between different RE projects and programmes. In addition, this component will also link and promote innovative climate proofing energy solutions.
Component 3: RE Project Financing Enhancement - This component will focus on improved availability of financial support for RE applications engaging banks, MFIs and other funding mechanism as appropriate. While enhancing financial mechanism, a strategic financial plan which insures communities interest and benefits will be taken into consideration. Schemes liable with high interest rates will be avoided. It is envisaged that the corresponding activities will be implemented in cooperation with, amongst others, United Nations Capital Development Fund (UNCDF), the Government of Nepal and various Nepali banks and (micro) finance institutes, donors, agencies, and other RE projects in Nepal.
Component 4: Livelihood/Productive end use promotions - This component will focus on augmenting and utilizing local assets and capabilities to create energy-linked value-chain enterprises which will effectively promote product identification, market-driven entrepreneurship and rural communication and information system that will help communities to explore new income generation avenues. It is envisaged that the corresponding activities will be implemented in partnership and/or cooperation with, amongst others - private sector, other poverty alleviation and livelihood enhancement programmes/projects in Nepal for accessing expertise, resources technologies and markets.