Over 800 million people in Asia do not have access to electricity. About three-quarters of them live in South Asia. Providing access to renewable sources of energy is essential to poverty alleviation, energy security, climate change mitigation, and the achievement of the Millennium Development Goals in the region. 

Small island nations, such as the Maldives, can use SREP funding to undertake significant renewable energy projects. SREP funding can also scale up local investments and partnerships to provide access to clean energy in resource-rich, low-income countries, such as Nepal. 

• The Maldives: is an island nation in the Indian Ocean. Only 200 of its 1,190 islands are inhabited, and of those, only 24 have reliable power. The nation relies heavily on fossil fuel imports, making it particularly vulnerable to oil price shocks. The government’s goal is to make the Maldives carbon neutral by 2020 through public-private partnerships that develop solar power (both photovoltaic and small thermal) and wind generation capacity. The Maldives selection as a SREP pilot will help the nation tap its renewable energy potential and stimulate climate-smart economic growth. 

• Nepal: is a landlocked country where only 43 percent of the people have access to electricity. Although the potential to develop hydropower, solar, and wind energy resources is significant, a combination of high tariffs, system losses, generation costs, and overheads has weakened the power sector. The gross domestic product growth rate is low because of inadequate energy resources for industrial and commercial purposes. Nepal’s selection as a SREP pilot will build on the country’s adoption of appropriate policies, long-term engagement with the private sector, and experience with community-owned installations.  

Expected Results: The Maldives and Nepal will demonstrate how renewable energy projects and local partnerships can be powerful building blocks for climate-smart economic growth.