Ashden • Climate Change Charity

In the Himalayas, energy poverty is a fact of life. Villages at high altitude are often off-grid or connected to unreliable grids that fail during monsoons and winter storms. Diesel generators are expensive to run and pollute the air. Kerosene lamps provide dim light. And when disasters strike—landslides, floods, earthquakes—energy infrastructure is often the first casualty, leaving communities without power for weeks or months.

The Himalayan Energy Transition Facility is offering USD $3.2 million per cluster to build community-owned renewable microgrids across Himalayan border states in India and Nepal. This program funds solar, small hydro, and wind systems with battery storage that provide reliable, clean power to high-altitude communities while respecting fragile mountain ecosystems.

For community cooperatives and local governments in Himalayan districts, this program provides capital for generation and storage infrastructure, distribution networks, community resilience measures, and productive use innovations that turn energy access into economic opportunity. The goal is energy sovereignty—communities controlling their own clean energy systems rather than depending on distant grids or expensive diesel.

What makes this program distinctive is its integration of energy access, disaster resilience, and cross-border ecosystem protection. You’re not just installing solar panels—you’re building community governance systems, protecting watersheds, preparing for climate disasters, and creating economic opportunities powered by clean energy.

At a Glance

What This Funding Covers

The $3.2 million supports comprehensive microgrid development:

Generation and Storage Infrastructure ($1.6 million): Himalayan communities need power systems that work in extreme conditions—high altitude, extreme cold, heavy snow, monsoon rains. This component funds solar photovoltaic systems sized for mountain conditions, small hydro turbines (run-of-river or micro-hydro) utilizing mountain streams, wind turbines where appropriate, and battery storage systems providing power when sun isn’t shining or water flow is low. These systems are designed for harsh mountain environments, not lowland conditions.

Distribution and Demand Management ($800,000): Getting power from generation to homes and businesses requires distribution infrastructure. This funding supports mini-grid networks connecting generation to users, smart meters enabling fair billing and load management, load management tools preventing system overload, and distribution equipment (transformers, cables, poles) suitable for mountain terrain. Efficient distribution ensures everyone gets reliable power at fair prices.

Community Resilience ($450,000): Mountain communities face constant climate risks—landslides, floods, glacial lake outbursts, earthquakes. This component funds climate risk mitigation protecting energy infrastructure, landslide monitoring and early warning systems, emergency funds for rapid repairs after disasters, and ecosystem protection (watershed management, reforestation) that reduces disaster risk. Resilient energy systems keep working when communities need them most.

Productive Use Innovation ($250,000): Energy access is most valuable when it enables economic activity. This funding supports cold chains for agricultural products (apples, dairy, medicinal plants), agro-processing equipment (grinding, drying, packaging), digital connectivity infrastructure (internet, mobile charging), and other productive uses that create income opportunities, especially for women and youth. Energy that powers livelihoods transforms communities.

Beyond the direct funding, selected communities get engineering design support for high-altitude renewable systems, governance training on cooperative management and tariff setting, disaster preparedness workshops, and livelihood diversification support linking energy to economic opportunity.

Who Should Apply

This program is designed for mountain communities ready to own and operate their energy systems. You’re a good fit if:

You’re a Community Cooperative or Local Government: This includes village cooperatives, women’s self-help groups managing community enterprises, local government bodies (panchayats, municipalities), and community-based organizations with legal status. The key is community ownership and governance—communities controlling their energy systems, not external companies.

You Have Community Consent: Energy projects affect everyone in the community. You need community resolutions demonstrating inclusive consent, participation from women and marginalized groups in decision-making, traditional leaders’ support where relevant, and transparent processes for community input. Projects imposed on communities without genuine consent won’t succeed.

You Respect Mountain Ecosystems: The Himalayas are biodiversity hotspots with fragile ecosystems. You need environmental impact assessments aligned with Himalayan biodiversity safeguards, plans to minimize ecosystem disruption, watershed protection measures, and commitment to sustainable practices. Energy projects that damage mountain ecosystems are not eligible.

You’re Willing to Collaborate Across Borders: Many Himalayan watersheds and ecosystems cross India-Nepal borders. The program values cross-border collaboration agreements for watershed management, shared learning between Indian and Nepalese communities, and coordinated approaches to ecosystem protection. Cross-border cooperation strengthens both energy systems and environmental protection.

You Have Sustainable Tariff and Revenue Models: Community microgrids need to be financially sustainable. You need tariff structures that cover operations and maintenance while remaining affordable, revenue models accounting for different user types (households, businesses, productive uses), plans for collecting payments and managing finances, and maintenance funds ensuring long-term system operation. Microgrids that can’t sustain themselves financially will fail.

Insider Tips for a Winning Application

Demonstrate Genuine Community Ownership: The weakest applications are external organizations proposing to build microgrids for communities. The strongest show communities driving the process—community-led planning, community governance structures, community financial contributions (even if small), and community commitment to operating and maintaining systems. External technical partners can support, but communities must own the project.

Address Seasonal Variability: Himalayan energy needs vary dramatically by season. Winter heating needs are high. Monsoon affects hydro generation. Tourist seasons create demand spikes. Show how your system design accounts for seasonal variability in both generation (solar in winter vs. summer, hydro during monsoons) and demand (heating, agriculture, tourism). One-size-fits-all designs don’t work in mountains.

Plan for Disaster Resilience from the Start: Don’t treat disaster resilience as an afterthought. Show how your infrastructure is designed to withstand landslides, floods, and earthquakes, how you’ll maintain power during disasters, what backup systems you have, and how you’ll rapidly repair damage. Mountain energy systems must be resilient, not fragile.

Create Real Economic Opportunities: The most transformative microgrids power productive uses that generate income. Show specifically how energy will enable economic activity—cold storage for apple farmers, processing equipment for medicinal plant collectors, internet connectivity for tourism businesses, or other income-generating uses. Energy that just powers lights is valuable; energy that powers livelihoods is transformative.

Respect Cultural and Traditional Practices: Himalayan communities have rich cultural traditions and traditional knowledge about managing mountain resources. Show how your project respects sacred sites and cultural practices, incorporates traditional ecological knowledge, ensures culturally appropriate governance, and protects cultural heritage. Projects that ignore or disrespect local culture face community opposition.

Build in Knowledge Sharing: The Facility values communities willing to share lessons with other Himalayan communities. Describe how you’ll document your experience, participate in learning networks, mentor other communities, and contribute to the Himalayan resilience portal. Communities that help build broader Himalayan energy capacity are prioritized.

Application Timeline

The May 30, 2025 deadline is designed to enable installation during dry months (post-monsoon, pre-winter). Here’s a realistic timeline:

January 2025: Conduct participatory energy planning workshops. Bring together community members, technical experts, and local government to assess energy needs, discuss technology options, and build consensus on approach. This participatory process is essential for community ownership.

February-March 2025: Develop your application including technical feasibility studies (resource assessment, system design), environmental and social assessments, community governance plans, and financial models. This requires technical expertise—work with engineers and environmental specialists.

March 2025: Submit your application by the deadline with all required documentation.

April-May 2025: If shortlisted, participate in site visits and community consultations. The Facility will visit your community, meet with stakeholders, and assess readiness. Be prepared to demonstrate community support and governance capacity.

June 2025: Finalize procurement and logistics for high-altitude transport. Mountain logistics are complex—plan carefully for transporting equipment to remote, high-altitude sites.

July-September 2025: Install and commission microgrid infrastructure during dry season when access is best and construction is feasible.

October-December 2025: Complete commissioning, train community operators, and begin operations before winter.

Ongoing: Monitor performance, report to the Facility, and share lessons with other communities.

Frequently Asked Questions

Which specific districts are eligible? In India: Himalayan districts in Uttarakhand, Himachal Pradesh, Sikkim, and Arunachal Pradesh. In Nepal: mountain districts across the country. Check the Facility’s website for the complete list of eligible districts.

Can NGOs apply? NGOs can be technical partners supporting community cooperatives, but the lead applicant should be the community cooperative or local government that will own and operate the microgrid. The program prioritizes community ownership.

What if our community doesn’t have technical expertise? That’s expected. Partner with technical organizations (NGOs, engineering firms, research institutions) that can provide design and implementation support. But the community must be the owner and decision-maker.

How much community contribution is required? There’s no fixed percentage, but some community contribution (cash, labor, materials, land) demonstrates commitment and strengthens applications. Even small contributions matter.

Can we combine solar and hydro? Yes, and hybrid systems are often optimal for Himalayas—solar for winter when hydro is low, hydro for monsoon when solar is limited. Design your system for your specific context.

What about maintenance after the grant ends? That’s why sustainable tariff and revenue models are required. Your microgrid must generate enough revenue to cover ongoing operations, maintenance, and eventual equipment replacement. The Facility provides initial capital, but long-term sustainability is your responsibility.

Can we apply for multiple villages? Yes, the program funds “clusters” which can include multiple villages. Cluster approaches can be more cost-effective and enable resource sharing.

How to Apply

Ready to bring clean, reliable energy to your mountain community? Here’s what to do:

Step 1: Build community consensus. Hold village meetings, discuss the opportunity, and ensure broad community support. Get formal community resolutions demonstrating consent.

Step 2: Assess your energy resources and needs. What renewable resources do you have (sun, water, wind)? What are your energy needs (households, businesses, productive uses)? Conduct participatory assessments.

Step 3: Identify technical partners. Find engineers, NGOs, or research institutions that can help with system design, environmental assessments, and implementation. Build partnerships.

Step 4: Design your governance model. How will the community cooperative operate? Who makes decisions? How will tariffs be set? How will finances be managed? Develop clear governance structures.

Step 5: Conduct technical and environmental studies. Work with your technical partners to design the system, assess environmental impacts, and develop mitigation measures.

Step 6: Develop your financial model. What will tariffs be? How will you collect payments? What are operations and maintenance costs? How will you build maintenance funds? Create realistic financial projections.

Step 7: Prepare your application with all required components: community governance charter and consent documentation, technical feasibility studies and system designs, environmental and social management plans, financial model with tariff structure, and partnership letters from technical supporters.

Step 8: Submit by May 30, 2025 and prepare for site visit and community consultations.

Visit the official Himalayan Energy Transition Facility page for detailed guidelines and application materials: https://www.ashden.org/programmes/energy-access

Questions about eligibility, technical requirements, or community governance? Contact the Facility—contact information is available on their website. They can provide guidance and connect you with technical assistance providers.

Himalayan communities deserve reliable, clean energy that respects mountain ecosystems and empowers local economies. If you’re ready to build it, this program can help you make it happen.