Govt Eases Environmental Study Requirements for Solar Power Projects

The government has eased environmental study requirements for solar power projects by amending the Environment Protection Rules, 2020, a move expected to accelerate investment in the sector.

Under the revised provisions, solar power projects of up to 20 MW in hilly areas and 15 MW in the Tarai will now require only a brief environmental study. Previously, projects of up to 10 MW were required to conduct an Initial Environmental Examination (IEE).

Similarly, solar projects with capacities of 20–50 MW in the hills and 15–40 MW in the Tarai will now need to carry out only an IEE, whereas projects above 10 MW earlier required a full Environmental Impact Assessment (EIA).

The regulatory easing comes amid growing investor interest in solar power development. According to the Department of Electricity Development (DoED), as of the first week of December, 97 solar projects with a combined installed capacity of 2,119.99 MW have received survey licences.

Although Nepal continues to prioritise hydropower, the government has increasingly focused on alternative energy sources to ensure a reliable electricity supply amid climate change impacts, seasonal production fluctuations and rising demand. In line with this approach, Energy Minister Kulman Ghising has initiated the process to remove the 10 percent cap on solar power under the country’s energy-mix policy.