Renewable Energy Governance and Community Benefit-Sharing in Nepal: Policy Gaps and Local Development Challenges

Abstract

Renewable energy is a core element of energy security, low-carbon transition, and rural development in Nepal, and in particular hydropower and decentralized clean energy systems. However, project benefits do not necessarily translate into local development outcomes. This paper critically summarizes the governance and public benefit sharing of the renewable energy sector in Nepal based on secondary sources of policy documents, institutional reports, and academic literature. The results indicate that royalties, local shares, compensation, employment benefits, community support, and subsidies are present, but they are neither very advanced nor well monitored. The paper suggests a governance framework based upon participation, benefit allocation, local outcomes and accountability, that is oriented towards the community. It provides a summary policy contribution, without using unpublished thesis data.