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The Rural Energy Development Programme (REDP) was started in 1996 with the main goal of promoting rural development by means of energy, in particular micro-hydro schemes in remote areas far from the main grid.
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The REDP provides a holistic approach by means of community mobilisation and capacity building at the local, district and central levels of government.
The REDP trains local NGOs to form Functional Groups and define specific energy projects. Projects are financed by the local communities (labour and loans from the Agricultural Development Bank of Nepal), District funds, Village Development funds and through government subsidies. REDP gives grants of up to 40%.
Several schemes have already paid back their loans. In addition to provided energy, there are a number of valuable spin-offs such as opportunities for local entrepreneurs, environmental management of catchment areas, local institutional strengthening and the promotion of a sense of self-sufficiency.