This report stems from a 2019 political economy study led by Policy Entrepreneurs Incorporated to provide insights for the design of Nepal’s Renewable Energy Programme (NREP). Drawing on a comprehensive literature review, stakeholder interviews, and field research across three key provinces, the analysis offers an overview of Nepal’s federalism discourse and recommends initiatives to navigate the evolving political landscape. While the specific political dynamics have shifted since the original 2019 study, the underlying principles and insights remain relevant. By sharing these findings, the report aims to enable a deeper understanding of how Nepal’s energy sector intersects with the implementation of federalism, equipping NREP and other stakeholders to strategically engage with subnational governments.