NIIF Invests in 10MW Mithila Solar Project

Global Equity Fund Limited (GEF), manager of the Nepal Infrastructures Investment Fund (NIIF), has announced investment in the 10MW Mithila Solar Project, developed by Urja Developers.

The investment agreement was signed on Thursday, November 27. It aligns with Nepal’s keen focus on harnessing its vast alternative energy potential, NIFF and Mithila Solar Project said in a joint statement.

The 10MW on-grid Mithila Solar project is located in Janakpur, Madesh Province. Urja Developers, the promoter of the Mithila Solar Project, is a holistic solution provider for the renewable energy sector, with an ambitious goal to generate 1GW of carbon-neutral energy by 2030.

“With this investment from the Nepal Infrastructures Investment Fund, Global Equity Fund Limited (GEF) establishes itself as one of the biggest institutional investors in Nepal's solar sector,” the statement added. “Through various investment vehicles, GEF has backed both off-grid and on-grid solar projects, including the 25 MW Pashupati Renewables, 6.8 MW G.I Solar, 5 MW Solar Farm, and commitments to the upcoming 50 MW Solar Farm Lumbini and 40 MW Solar Farm Buddhabhumi, in addition to its stake in off-grid provider Gham Power.” 

“Our strategic investment in Mithila Solar aligns with our fund’s objective of fostering sustainable infrastructure development in Nepal,” said Dr Manish Thapa, Chairman of the NIIF. “Solar energy is crucial for enhancing Nepal’s power balance, particularly as a complement to our dominant hydropower sector. While hydropower faces challenges like seasonal variability and reduced output during the dry season, solar energy — with Nepal’s favorable geographic location and high solar irradiation — offers a reliable alternative to bridge this energy gap.”

Similarly, Bhanu Pokharel, Managing Director of Urja Developers, added: “We are pleased to solidify our partnership with Global Equity Fund as long-term strategic investors. This represents our fourth  collaboration, building on GEF's prior investments in our portfolio, which includes the 82.5MW Mewa Developers Limited, the 53.5MW Upper Magydi-1 Hydropower Project, and the Urja Impact Fund. By developing the Mithila Solar project — our inaugural foray into the solar sector — we are  strategically diversifying our energy assets. This project is pivotal for reaching our ambitious 1 GW  development target and enhancing the nation's energy source mix.”