Abstract Renewable energy could mitigate remote area energy crises through rural electrification. Karnali province, one of the seven federal provinces of Nepal, is such a remote location and is most deprived in terms of electricity access. Around 67% of the population of the Karnali province is not connected to the national grid electricity supply. High altitude, mountainous topography makes it difficult to provide grid access to the region. This study summarizes the current electricity access status in Nepal and Karnali province specifically. The paper discusses the energy, economic and environmental (3E) analysis of different renewable energy resources like solar and wind energy for the grid-isolated region in Mugu and Jumla district of Karnali province. The study investigates the feasibility of a 200-kW solar power plant installation in Gamghadi, the capital of Mugu district and a 100-kW wind power plant installation in Tila village, Jumla district. The study suggests whether a similar installation of the distributed energy plant is a solution to mitigate the energy crisis problem in the high Himalayas regions, like Karnali province of Nepal. Based on the high-level resource assessment, the study estimates an investment cost ranging from 7 to 9 million USD would be necessary for the installation of such distributed solar PV and wind turbines.