NIIF invests in Gham Urja Sewa to boost renewable energy development in Nepal

KATHMANDU: Nepal Infrastructures Investment Fund (NIIF), a permanent capital fund managed by Global Equity Fund (GEF), has announced a strategic investment in Gham Urja Sewa, a subsidiary of Gham Power Nepal, a leading solar energy solutions provider. The investment underscores NIIF’s commitment to advancing Nepal’s renewable energy initiatives and promoting sustainable infrastructure development.

Gham Urja Sewa, a subsidiary of Gham Power Nepal, specialises in deploying solar photovoltaic (PV) systems across residential, commercial, and industrial sectors. The company has successfully implemented off-grid rooftop solar projects for notable organisations such as Soaltee Hotel, Saras Beverages, Gorkha Brewery, and is currently completing an installation for Arihant Infrastructures.

The company operates a business model anchored in structured Power Purchase Agreements (PPAs), ensuring consistent cash flows and government-backed incentives for long-term revenue stability. By the end of fiscal year 2023/24, Gham Urja Sewa had an installed capacity of 5.707 megawatt (MW), which expanded to 7.76 MW by the second quarter of fiscal year 2024/25. Plans are underway to increase capacity by an additional 10.27 MW through capital investments.

This growth trajectory places Gham Urja Sewa as a key contributor to Nepal’s renewable energy market. The company’s risk mitigation strategies offer resilience against market fluctuations and regulatory changes, aligning with increasing demand for clean energy solutions.

The collaboration between NIIF and Gham Urja Sewa supports Nepal’s transition to clean energy while contributing to economic growth and environmental sustainability. By merging financial viability with sustainable development goals, this partnership reflects NIIF’s commitment to creating a greener and more resilient energy landscape.

Dr Manish Thapa, Managing Director of Global Equity Fund, stated that the investment in Gham Urja Sewa focuses on expanding off-grid rooftop solar projects, generating clean electricity, reducing dependence on the national grid, and advancing sustainability efforts.

Nepal’s hydropower potential remains underutilised, creating challenges in meeting industrial energy requirements. This has resulted in reliance on diesel generators, power outages, and increased carbon footprints, negatively affecting the economy and environment. Anjal Niraula, CEO of Gham Power Nepal, emphasised that the investment will empower Nepali industries to switch to cleaner electricity options and adopt sustainable practices for a secure future.