Toronto, November 2, 2022 – Convergence awards a proof-of-concept grant to Dolma Himalayan Energy (DHE) for the design of a blended finance platform for investing in renewable energy and battery storage projects in Nepal. This grant is awarded through Convergence’s Indo-Pacific Design Funding Window, funded by the Australian Government.
Nepal faces significant power supply deficits during peak demand periods, particularly in the winter. Currently, Nepal relies primarily on fossil fuel-powered energy imports from India to address this deficit. This substantially contributes to carbon emissions in the region and leads to deposition of black carbon in the Himalayas, a proven catalyst for accelerating glacial melt. A renewable energy developer, DHE, intends to incorporate a peak energy management system that dispatches non-intermittent power to offset this power deficit by utilizing solar-generated power from the daytime towards the evening peak load time. Such a platform can potentially reduce reliance on energy imports from India which would result in lower energy prices and reduced carbon emissions for Nepal.
DHE will manage the investment platform and will also be the developer for projects supported by the platform. The platform will have a blended finance structure comprising of grants, equity, and commercial debt. The development stage of projects will be supported by grants and equity while the construction and operation stages will be funded by a combination of equity and debt.
Joseph Silvanus, Managing Director Dolma Himalayan Energy welcomed this grant, mentioning; “We are truly excited to receive funding from Convergence. DHE is deeply committed to transforming the energy needs of communities in the Hindukush-Himalayan region, by crowding in global climate financing and using structured finance to originate, develop and operate renewable energy assets optimized by innovative technologies”.
Convergence’s grant will support DHE to structure and launch the platform with an initial solar farm and battery storage project in Nepal. DHE has already conducted an initial feasibility study to identify potential sites for this project. During the proof-of-concept, DHE will look to deepen their engagement with potential investors, government regulators and other relevant stakeholders to launch this project. The DHE platform aims to eventually develop over 750MW of renewable energy projects in Nepal.
“We’re supporting Dolma to launch this platform because of its potential for substantial development impact by replacing unsustainable fossil fuel imports with renewable energy and by supporting local communities through job opportunities that include skilled roles for women. Its straightforward and replicable blended finance structure was an added bonus,” says Joan Larrea, CEO, Convergence.
About Dolma Himalayan Energy
DHE is a UK-based investment platform and developer for renewable energy and battery storage systems in the Himalayan region. DHE is part of the Dolma Group, which includes Dolma Fund Management, the largest private equity impact investment firm focused on Nepal. They manage $87m across Dolma Impact Fund I and II and have invested in renewable energy, healthcare, and technology sectors since 2014, contributing to Nepal’s Sustainable Development Goals (SDGs). They have a portfolio of 70MW of renewable energy, and achieved the first FDI-backed renewable energy IPO in Nepal.
About Convergence’s Design Funding Program
Convergence’s Design Funding Program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions in market targeting SDGs. The Indo-Pacific Design Funding Window, funded by the Australian Government, provides grant funding for the design and launch of catalytic blended finance solutions focused on climate finance and/or gender equality in certain countries in the Indo-Pacific region. Please visit Convergence’s Design Funding page for submission deadlines as well as other open windows.
Convergence is the global network for blended finance. On top of market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 200 public, private, and philanthropic investors as well as sponsors of transactions and funds. To learn more, visit www.convergence.finance.