The HKH region presents an immense opportunity for implementing decentralized, sustainable energy solutions that rely on renewable energy sources. However, the region remains vulnerable to energy poverty due to inadequate capacity at various levels for deploying renewable energy and energy efficiency (RE&EE) solutions in mountainous areas. To achieve sustainable economic, social, and environmental performance, a thorough understanding of capacity development in RE&EE deployment within the value chain concept is crucial. This paper introduces a capacity needs assessment framework for the mountainous context, which was developed and applied to Nepal's cardamom value chain to explore the interplay of different core capabilities at individual and organizational levels. The survey study aimed to identify the specific capacity requirements necessary for the effective deployment of RE&EE solutions in the cardamom value chain. The analysis revealed significant capacity development needs on core capabilities affecting RE&EE deployment within the value chain, including technical skills, knowledge transfer, institutional strengthening, and policy development. The study also identifies challenges encountered when implementing RE&EE solutions in the cardamom value chain, such as financial constraints, technical challenges, and lack of awareness and education. Based on the study's findings, policymakers can design and implement effective capacity development initiatives that address the identified gaps and challenges and promote the deployment and implementation of RE&EE solutions in Nepal's mountain regions. This framework's applicability can extend to other value chains, such as tourism, dairy, poultry, and transportation sectors, by considering appropriate study dimensions and key indicators for value chain analysis.