Rural Community Electrification with Water Mill and Micro Enterprise Development in Nepal (IWME)


The IWM Electrification Programme has been executing with the financial support from EnDev/GIZ and SNV/N and strategic support from Alternative Energy Promotion Center (AEPC). The main aim of the project is to provide basic lighting service to the people of remote hilly areas where no any means of electricity supply.  Initially the programme has been started with piloting of four projects in Kavre districts in 2013. From the successful implementation of first piloting sites, the programme was replicated in 12 more sites in Sindhuli, Makawanpur and Dhading districts during the period of 2014 – 2016.  Besides, the supply of electricity, the programme provided additional service in the sector of economic activities through promotion of small scale micro enterprises based on the use of mechanical and electrical energy. The programme has been able to change the livelihood of rural people through basic lighting services and economic and employment activities through establishment and operation of micro enterprises. Various types of business like restaurants, guest houses, poultry farming, shops, tailoring, saw milling etc. were established.

From the positive impact of existing 16projects, various new demands were reported through district level local partner agencies. Then the programme further extended for the establishment of 20 more sites within the period of May 2016 – April 2017. The programme keeps the objective for providing basic lighting services to 5400 beneficiaries through establishment of 20 IWME sites having gross capacity of 60 kW. The programme will establish 40 small microenterprises including one mechanical and one electrical energy based in 20 IWME sites. The programme has been able to collect numerous demands from new districts and the programme extended to six districts Kavre, Dhading, Makawanpur, SindhuliKhotang and Nawalparasi.

Presently, the programme has identified 15 potential sites, out of these, 9sites are under installation, where 6sites are in the process of detail feasibility survey. The remaining five sites are under identification process. In order to execution of the programme activities, the programme carried out various activities like identification and selection of local partner organizations (LPOs), survey consultant companies and IWME installer companies. Similarly, the progamme organized some workshops like team building workshop and district initiation workshops in Nawalparasi and Khotang districts. The programme also organized a capacity building training on IWM design and installation training to the technical staff members of IWME installer companies. In order to develop economic activity in project area, micro-enterprise training to the member of users’ committees of IWME sites are in the process of execution.


Main objective of the project is to support development of Improved Water Mill Electrification (IWME) Sector. While the specific objectives are to:

  • Pave the way forward for a reliable, sustained and accelerated growth in providing community electrification solutions through IWME projects in rural Nepal.
  • Introduce productive end use, microenterprise development and income generating activities sub-component with a market led approach in IWME project.
  • Link micro finance institutions / rural cooperatives to the community so that they are able to mobilize credit for implementing the project, establishing micro-enterprises, product development and marketing.


Project Duration

May 2016 – April 2017

Project Areas

Sindhuli, Makawanpur, Dhading, Kavre, Khotang and Nawalparasi.

Beneficiaries and Achievements

Five thousand four hundred local people from six districts Kavre, Dhading, Makawanpur, SindhuliKhotang and Nawalparasi

Particular Target Achievement Percent
No of IWME sites 20 17 85
Power Output (kW) 60 62 103
Beneficiary HHs 900 910 101
Electrical End-use application 20 20 100
Mechanical End-use application 20 20 100