Alternative Energy Promotion Centre (AEPC) and World Bank signed an emission reductions purchase agreement (ERPA) for continued implementation of the Nepal Hydro Power project on Sunday.

According tot the WB statement, more than 142,000 households will benefit from this long-awaited electricity project.

This carbon offset project complements the ongoing World Bank Power Development Project to provide increased access to electricity for people living in rural areas. It is anticipated that by 2011, 15,000 kW will have been installed. The generating capacity of these plants will vary from five to 500 kW. Micro-hydro plants are installed for local communities by pre-qualified private companies that receive subsidy and credit support as well as technical assistance. Most of the plants will be managed by the communities themselves.

Ken Ohashi, the World Bank Country Director for Nepal, said, “The project is important for Nepal in terms of bringing power to the poor, but it’s also important for the world since it brings the global benefits of greenhouse gas reductions.”

The project developer, AEPC will sell a total of 191,000 tons of carbon dioxide equivalent in emission reductions until 2012 to the Community Development Carbon Fund, managed by the World Bank. There is the possibility to increase the volume of certified emission reductions by at least an additional 100,000 tons, the WB said.

“The Alternative Energy Promotion Centre has been promoting clean energy technologies throughout the country with significant contributions to sustainable development by reducing greenhouse gas emissions,” said Dr. Govind Raj Pokharel, the Executive Director of AEPC.