Rick Gambetta is the Founder and Partner of Greencrowd Partnership LLP, a leading advisory firm based in London. Over his 25 plus year financial and consulting career, Rick has developed detailed investment strategies and a proven track record of designing financial instruments, having pioneered Europe’s first listed solar PV bond and the first Climate Bonds Certified Green Loan backed by distributed solar PV. Rick has also guided climate-resilient and infrastructure projects in regions like Sub-Saharan Africa, South Asia and Small Island Developing States (SIDS), elaborating blue economy and renewable energy roadmaps and SDG strategic plans for governments in the Caribbean and development finance institutions in Latin America. His strategic insights enable developers, investors and financial institutions to unlock new opportunities, de-risk investments, and enhance governance, all while ensuring alignment with sustainability goals like gender equity and climate resilience. Rick spoke to The DMN News on Environmental, Social, and Governance (ESG) and financing needs of renewable sector in countries of Global South including Nepal. Excerpts:
First of all, could you tell us about your company and how you are helping businesses in developing countries?
Greencrowd Partnership LLP (“greenCrowd”) is an independent partnership focused on financing sustainable projects, particularly in developing countries like Nepal. We specialise in providing innovative financial and commercial advisory services, leveraging our deep expertise in structuring, capital raising, and stakeholder engagement.
Through collaboration with both private and public sector entities, we support projects that advance renewable energy and sustainable infrastructure. Our work in Nepal focuses on helping the country achieve its ambitious clean energy generation goals by connecting local project developers with international sources of capital.
Why is ESG important, and how should Nepali banks and other investors highlight their achievements in this area?
ESG (Environmental, Social, and Governance) is vital as it provides a framework for measuring investments’ sustainability and societal impact. Nepali banks and investors must prioritise and communicate their ESG achievements to demonstrate their commitment to sustainable development. Highlighting ESG success helps attract capital from socially responsible investors, align with regulatory requirements, and build long-term value. greenCrowd works with various stakeholders to embed ESG principles in investment strategies, ensuring that projects deliver both financial returns and positive environmental impacts.
How do you see the role of IPPAN (Independent Power Producers of Nepal) in supporting its members’ access to green finance from international markets?
IPPAN is critical in helping its members access green finance from international markets. IPPAN facilitates collaboration between local developers and global investors to prepare bankable projects that meet international standards. Its advocacy for policy improvements and financial frameworks also helps create a favourable environment for renewable energy investments, enhancing the ability of Nepali developers to secure financing from global institutions.
By collaborating with greenCrowd, IPPAN can take concrete steps to improve its members’ access to international green finance. Through capacity building, project preparation support, blended finance mechanisms, and fostering connections with global investors and institutions, IPPAN can help create a more attractive and bankable portfolio of renewable energy projects in Nepal. This collaboration would ultimately strengthen Nepal’s ability to attract green capital from international markets, including the UK.
What role do you see for public-private partnerships (PPPs) in enhancing the prospects for accessing finance for renewable energy projects in Nepal?
While PPPs provide a well-established model for financing large-scale renewable energy projects, Nepal has a variety of alternative mechanisms that can attract private finance from the UK and other international sources. These include blended finance, green bonds, multilateral funding, private equity, and infrastructure funds. Each alternative offers different advantages depending on the project’s scale, risk profile, and financing needs. By leveraging these alternatives, Nepal can diversify its approach to financing, mitigate risks, and attract a broader range of investors to accelerate its renewable energy transition. greenCrowd does not advocate a “one-size-fits-all” approach, and we advise tailoring the financing structure to the requirements of each project. In our view, the critical aspect is to get the projects built in a time frame that is as efficient as possible.
How could organisations like the ADB and World Bank help and support Nepali companies in accessing international finance to develop renewable energy projects?
Organisations like the ADB and World Bank can significantly support project developers in Nepal’s access to competitive sources of international finance. Development Finance Institutions (DFIs) offer risk mitigation tools, guarantees, and technical assistance, which are crucial for attracting investment. Additionally, they help foster a stable regulatory environment that makes renewable energy projects more appealing to international private investors.
What are the critical criteria that Development Finance Institutions (DFIs) in the UK look for when considering funding renewable energy projects in countries like Nepal?
DFIs in the UK prioritise financially viable, environmentally sustainable projects aligned with ESG standards. For countries like Nepal, projects must demonstrate a clear social and environmental impact, robust governance, and scalability.
For example, UK Export Finance (UKEF) requires projects to align with international sustainability standards and environmental regulations. Renewable energy projects must demonstrate that they contribute to the global transition to clean energy, have a positive environmental impact, and meet the host country’s regulatory frameworks. UKEF also examines social benefits, such as job creation and community impact.
Regarding financial viability, British International Investment (BII) ensures that projects are financially sustainable in the long term. Renewable energy projects in Nepal must have a transparent revenue model, such as PPAs, which guarantee future income. BII evaluates the project’s capacity to generate consistent cash flows to service debt or provide returns on equity. The financial structure must be transparent, with a well-thought-out risk allocation between private and public sectors.
DFIs also require local solid engagement and the ability to mitigate risks, such as political or currency risks. greenCrowd’s Finance-First Toolkit ensures that projects meet these criteria, making them attractive to UK-based DFIs.
How could Nepal attract private finance from the UK for renewable energy projects?
Nepal has immense potential to attract private finance from the UK for its renewable energy sector, but it needs a multifaceted strategy to unlock these investments. The first and most critical step is to present well-structured, investment-ready projects that promise competitive returns and align with the broader global sustainability agenda. UK investors increasingly seek opportunities to contribute to climate goals while offering financial stability. To tap into this trend, Nepal should emphasize its commitment to reducing carbon emissions, increasing renewable energy capacity, and contributing to global environmental objectives. Projects that have secured Power Purchase Agreements (PPAs) and have strong financial backing from local or multilateral institutions will appear more attractive to UK investors.
‘Regulatory stability, coupled with a focus on simplifying the process for foreign direct investments (FDI), would make Nepal a more attractive destination for private finance from the UK.’
To complement these efforts, Nepal must focus on strengthening its regulatory framework. A transparent and predictable regulatory environment will build investor confidence, reducing perceived risks and uncertainty. This can be achieved through the establishment of clear policies on tariffs, long-term energy procurement, and streamlined approval processes for renewable energy projects. Nepal can introduce robust frameworks for renewable energy development, similar to successful markets, offering investors clarity on returns and reducing bureaucratic delays. This regulatory stability, coupled with a focus on simplifying the process for foreign direct investments (FDI), would make Nepal a more attractive destination for private finance from the UK.
Furthermore, fiscal incentives play a vital role in attracting international capital. Nepal could introduce enticing tax holidays or reductions for renewable energy projects, such as exemptions on import duties for energy equipment or tax relief for the first decade of a project’s operation. These incentives would significantly lower the cost of doing business, enhancing the return on investment for private financiers. For UK investors looking for green investments that meet financial and ESG criteria, such tax-friendly policies could be decisive in choosing Nepal as a preferred investment destination.
Another critical factor is improving local capacity and infrastructure. Investors need assurance that the country can deliver on its energy projects. This means investing in training local developers, engineers, and financial professionals and building grid infrastructure to support new renewable capacity. Projects demonstrating solid local partnerships with reliable contractors, suppliers, and grid operators will attract more UK investors, who often prefer working with on-the-ground expertise that can handle operational challenges.
Finally, highlighting Nepal’s unique renewable energy potential could give it a competitive edge. Nepal’s vast hydropower resources, high-altitude solar potential, and unexplored wind energy offer a diverse energy mix many countries cannot match. Framing these resources as part of a broader vision for a green, self-sufficient economy can capture the attention of impact investors who prioritise environmental and social benefits alongside financial returns. Showcasing success stories, such as export agreements with neighbouring countries like India or Bangladesh, will further boost investor confidence, demonstrating Nepal’s growing role as a renewable energy hub in South Asia.
greenCrowd’s efforts in Nepal focus on connecting local developers with UK investors by building robust project pipelines and de-risking strategies.
What challenges do you foresee for renewable projects in Nepal in securing finance from UK-based DFIs and private investors, and how can these be addressed?
Nepali renewable energy developers face several challenges when seeking financing from UK-based DFIs and private investors. These challenges include political and regulatory instability, currency volatility, infrastructure limitations, high capital costs, and a lack of bankable projects. Nepal’s political environment often results in fluctuating energy policies and inconsistent tariff structures, making long-term investment planning difficult for international investors. Additionally, concerns about the transparency and predictability of the regulatory framework further discourage international financial participation.
To address these challenges, Nepal must create a stable and investor-friendly political and regulatory environment. Implementing a consistent, long-term renewable energy policy framework with fixed tariffs or feed-in tariffs for renewable energy projects will offer revenue predictability. Fast-tracking approval processes and establishing an independent energy regulator to oversee project approvals and compliance will also enhance investor confidence. These actions will reduce perceived risks and make Nepal’s energy market more attractive for UK DFIs and private investors.
Currency volatility poses another significant risk, as Nepali developers often face fluctuating exchange rates while dealing with international finance, increasing the overall cost of capital. To mitigate this, the government could partner with global institutions like the Asian Development Bank (ADB) or World Bank to establish currency hedging mechanisms. Structuring Power Purchase Agreements (PPAs) in hard currencies like US dollars or British pounds will also help protect international investors from currency risks. Nepal can attract more foreign capital for renewable energy development by offering tools to manage foreign exchange risks.
Moreover, Nepal’s inadequate transmission and distribution infrastructure hampers large-scale renewable energy projects. This limitation affects project scalability and the ability to transmit generated energy reliably. The government should upgrade its grid infrastructure and construct cross-border transmission lines to facilitate energy exports to neighbouring countries like India and Bangladesh. Such investments, supported by international financial institutions, will help Nepal develop a robust grid capable of absorbing more renewable energy, thereby increasing the potential for large-scale project financing.
Finally, a key issue is the lack of bankable projects due to insufficient preparation and financial structuring capacity. Many projects in Nepal are not designed to meet international investment standards. To address this, Nepal must provide capacity-building programs to train local developers on financial modelling, risk management, and global investment requirements. Establishing a project preparation facility can help developers create investment-ready projects that are more likely to attract financing. Public-private partnerships (PPPs) can significantly distribute risks between the public and private sectors, reducing the burden on developers and improving project bankability. greenCrowd’s advisory services are geared toward addressing these risks and ensuring project bankability.
Can you provide examples of successful renewable energy projects in similar markets that have secured funding from UK DFIs or private investors?
Well, let me mention some here.Malindi Solar Project – Kenya. The Malindi Solar Project is a 52 MW solar photovoltaic power plant in Kilifi County, Kenya. It became operational in December 2021 and is one of the largest solar plants in East Africa. The project received significant support from British International Investment (BII) in partnership with other investors. BII provided a $30 million debt investment for the project, contributing to Kenya’s goal of increasing its renewable energy capacity and reducing reliance on fossil fuels. The solar farm generates enough electricity to power approximately 250,000 homes annually, showcasing the effectiveness of international financing in supporting green energy transitions in developing countries.
ReNew Power – India. ReNew Power, India’s largest renewable energy company, has received significant financial backing from BII to support its portfolio of wind and solar projects across India. BII has invested over $100 million in ReNew Power, which has helped the company develop over 10 GW of renewable energy capacity, including wind and solar installations. This investment aligns with India’s ambitious target to reach 450 GW of renewable energy capacity by 2030.
Meru Wind Project – Kenya. The Meru Wind Project in Kenya, developed with the support of UKEF and BII, is another significant renewable energy venture in the country. The project has contributed to Kenya’s growing wind energy sector, providing a sustainable and reliable energy source and reducing dependence on hydropower. UKEF’s involvement provided critical risk coverage for the project, helping attract private investors and enabling the completion of the project.
Greenko Energy Holdings – India. Greenko Energy Holdings, one of India’s leading renewable energy developers, has benefited from BII investments. BII provided $70 million in funding to support Greenko’s renewable energy portfolio, which includes large-scale solar and wind projects across India. This financing has enabled Greenko to develop energy storage solutions and generate power from renewable sources.
Omburu Solar PV – Namibia. The Omburu Solar PV plant, located in the Erongo region of Namibia, was supported by BII and forms part of the country’s renewable energy strategy to increase solar power’s contribution to the national grid. With a capacity of 20 MW, the plant helps Namibia diversify its energy sources and reduce its reliance on imported electricity from neighboring countries.
These are just a few examples. At greenCROWD, we are committed to working with our partners around the world to support, advise, and facilitate international financing for renewable energy projects.
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