-
Promoting Sustainable Development by Creating Enterprises on
Renewable Energy Technologies
in Nepal Case Studies Based on Micro Hydropower Projects
Vom Promotionsausschuss der Universität Flensburg
zur Erlangung des akademischen Grades: Doktor der
Wirtschaftwissenschaften
Genehmigte Dissertation
von
Govind Raj Pokharel, M. Sc. aus Nepal
Betreuer:
Prof. Dr. Gerd-E. Famulla (Erstbetreuer), Universität Flensburg,
Institut für Politik und Wirtschaft und ihre Didaktik
Prof. Dr. Olav Hohmeyer (Zweitbetreuer), Universität Flensburg,
Internationales Institut für Management (IIM)
Flensburg, 2006
Promoting Sustainable Development by Creating Enterprises on
Renewable Energy Technologies
in Nepal Case Studies Based on Micro Hydropower Projects
Vom Promotionsausschuss der Universität Flensburg
zur Erlangung des akademischen Grades: Doktor der
Wirtschaftwissenschaften
Genehmigte Dissertation
von
Govind Raj Pokharel, M. Sc. aus Nepal
Betreuer:
Prof. Dr. Gerd-E. Famulla (Erstbetreuer), Universität Flensburg,
Institut für Politik und Wirtschaft und ihre Didaktik
Prof. Dr. Olav Hohmeyer (Zweitbetreuer), Universität Flensburg,
Internationales Institut für Management (IIM)
Flensburg, 2006
Promoting Sustainable Development by Creating Enterprises on
Renewable Energy Technologies
in Nepal Case Studies Based on Micro Hydropower Projects
Vom Promotionsausschuss der Universität Flensburg
zur Erlangung des akademischen Grades: Doktor der
Wirtschaftwissenschaften
Genehmigte Dissertation
von
Govind Raj Pokharel, M. Sc. aus Nepal
Betreuer:
Prof. Dr. Gerd-E. Famulla (Erstbetreuer), Universität Flensburg,
Institut für Politik und Wirtschaft und ihre Didaktik
Prof. Dr. Olav Hohmeyer (Zweitbetreuer), Universität Flensburg,
Internationales Institut für Management (IIM)
Flensburg, 2006
Promoting Sustainable Development by Creating Enterprises on
Renewable Energy Technologies
in Nepal Case Studies Based on Micro Hydropower Projects
Vom Promotionsausschuss der Universität Flensburg
zur Erlangung des akademischen Grades: Doktor der
Wirtschaftwissenschaften
Genehmigte Dissertation
von
Govind Raj Pokharel, M. Sc. aus Nepal
Betreuer:
Prof. Dr. Gerd-E. Famulla (Erstbetreuer), Universität Flensburg,
Institut für Politik und Wirtschaft und ihre Didaktik
Prof. Dr. Olav Hohmeyer (Zweitbetreuer), Universität Flensburg,
Internationales Institut für Management (IIM)
Flensburg, 2006
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ISBN 3-00-017882-1 ISBN 3-00-017882-1
ISBN 3-00-017882-1 ISBN 3-00-017882-1
-
Acknowledgement
I am deeply indebted to Prof. Dr. Gerd-E. Famulla, Director of
Institut für Politik und
Wirtschaft und Ihre Didaktik for his moral and all types of
supports during my study in
Germany. He was not only „Doctovater“ but also my guardian in
Germany. Without his
guidance, support, and encouragement, I could not have completed
my study. Similarly,
I am grateful Prof. Dr. Olav Hohmeyer, Director, Internationales
Institut für Management
for his guidance and useful discussions during my study. Thank
also goes to Prof. Dr.
Binayak Bhadra of Nepal for being my supervisor in Nepal and
providing me moral
supports.
I am also very much grateful to Heinrich Böell Stiftung for
providing me financial
support for my study in Germany, without which it would have not
possible to complete
my study in Germany. Especially thanks goes to Prof. Dr.
Grothaus and Frau Grothaus
and Ms. Kathrin Bock-Famulla for their moral supports and
encouragements. Similarly, I
would like express my gratitude to all friends in Flensburg,
Hamburg, Germany and in
Nepal for their continuous encouragements and supports. I am
also equally grateful to
Fördegesellschaft Universität Flensburg e. V. of Universität
Flensburg.
Lastly, I would like to give a big thanks to my wife who
supported me in every moments
of my life and without her help and support I would not
completed my study. Similarly,
my sons Gokul and Girish, my parents, my brothers and all
relatives are also equally
thankful for their advices and encouragements.
Acknowledgement
I am deeply indebted to Prof. Dr. Gerd-E. Famulla, Director of
Institut für Politik und
Wirtschaft und Ihre Didaktik for his moral and all types of
supports during my study in
Germany. He was not only „Doctovater“ but also my guardian in
Germany. Without his
guidance, support, and encouragement, I could not have completed
my study. Similarly,
I am grateful Prof. Dr. Olav Hohmeyer, Director, Internationales
Institut für Management
for his guidance and useful discussions during my study. Thank
also goes to Prof. Dr.
Binayak Bhadra of Nepal for being my supervisor in Nepal and
providing me moral
supports.
I am also very much grateful to Heinrich Böell Stiftung for
providing me financial
support for my study in Germany, without which it would have not
possible to complete
my study in Germany. Especially thanks goes to Prof. Dr.
Grothaus and Frau Grothaus
and Ms. Kathrin Bock-Famulla for their moral supports and
encouragements. Similarly, I
would like express my gratitude to all friends in Flensburg,
Hamburg, Germany and in
Nepal for their continuous encouragements and supports. I am
also equally grateful to
Fördegesellschaft Universität Flensburg e. V. of Universität
Flensburg.
Lastly, I would like to give a big thanks to my wife who
supported me in every moments
of my life and without her help and support I would not
completed my study. Similarly,
my sons Gokul and Girish, my parents, my brothers and all
relatives are also equally
thankful for their advices and encouragements.
Acknowledgement
I am deeply indebted to Prof. Dr. Gerd-E. Famulla, Director of
Institut für Politik und
Wirtschaft und Ihre Didaktik for his moral and all types of
supports during my study in
Germany. He was not only „Doctovater“ but also my guardian in
Germany. Without his
guidance, support, and encouragement, I could not have completed
my study. Similarly,
I am grateful Prof. Dr. Olav Hohmeyer, Director, Internationales
Institut für Management
for his guidance and useful discussions during my study. Thank
also goes to Prof. Dr.
Binayak Bhadra of Nepal for being my supervisor in Nepal and
providing me moral
supports.
I am also very much grateful to Heinrich Böell Stiftung for
providing me financial
support for my study in Germany, without which it would have not
possible to complete
my study in Germany. Especially thanks goes to Prof. Dr.
Grothaus and Frau Grothaus
and Ms. Kathrin Bock-Famulla for their moral supports and
encouragements. Similarly, I
would like express my gratitude to all friends in Flensburg,
Hamburg, Germany and in
Nepal for their continuous encouragements and supports. I am
also equally grateful to
Fördegesellschaft Universität Flensburg e. V. of Universität
Flensburg.
Lastly, I would like to give a big thanks to my wife who
supported me in every moments
of my life and without her help and support I would not
completed my study. Similarly,
my sons Gokul and Girish, my parents, my brothers and all
relatives are also equally
thankful for their advices and encouragements.
Acknowledgement
I am deeply indebted to Prof. Dr. Gerd-E. Famulla, Director of
Institut für Politik und
Wirtschaft und Ihre Didaktik for his moral and all types of
supports during my study in
Germany. He was not only „Doctovater“ but also my guardian in
Germany. Without his
guidance, support, and encouragement, I could not have completed
my study. Similarly,
I am grateful Prof. Dr. Olav Hohmeyer, Director, Internationales
Institut für Management
for his guidance and useful discussions during my study. Thank
also goes to Prof. Dr.
Binayak Bhadra of Nepal for being my supervisor in Nepal and
providing me moral
supports.
I am also very much grateful to Heinrich Böell Stiftung for
providing me financial
support for my study in Germany, without which it would have not
possible to complete
my study in Germany. Especially thanks goes to Prof. Dr.
Grothaus and Frau Grothaus
and Ms. Kathrin Bock-Famulla for their moral supports and
encouragements. Similarly, I
would like express my gratitude to all friends in Flensburg,
Hamburg, Germany and in
Nepal for their continuous encouragements and supports. I am
also equally grateful to
Fördegesellschaft Universität Flensburg e. V. of Universität
Flensburg.
Lastly, I would like to give a big thanks to my wife who
supported me in every moments
of my life and without her help and support I would not
completed my study. Similarly,
my sons Gokul and Girish, my parents, my brothers and all
relatives are also equally
thankful for their advices and encouragements.
-
I
Contents List of Figures and Tables Acronyms and Abbreviations
Executive Summary VI
1. Introduction 1.1 Background 1 1.2 Research questions 3 1.3
Hypothesis 5 1.4 Objectives 6 1.5 Methodology 7 1.5.1 Literature
review 7 1.5.2 Managing data needed 7 1.5.2.1 Secondary data 8
1.5.2.2 Primary data 8 1.5.3 Analysis of data and reasons for
generalization 9 1.6 Limitations 11 1.7 Structure of dissertation
11 Part A Theoretical Underpinnings 2. Sustainability: compulsion
and explication 15
2.1 Sustainability or sustainable development: A compulsion? 15
2.2 Roots of the sustainability concept 17 2.3 Existing explication
of sustainability 19 2.4 Taxonomy of sustainability 27 2.4.1 Weak
sustainability 28 2.4.2 Strong sustainability 30 2.5 Interconnected
elements of sustainability 32 2.5.1 Natural resources consumption
and equity 33 2.5.2 Waste generation and population growth 34 2.5.3
Technical efficiency and resource substitution 34 2.5.4 Economic
activities 35 2.6 Complete sustainability: A constraint with
multifaceted development paradigm 36 2.7 Sustainability definition
at the project level 42 2.8 Promoting sustainability through
developmental activities 44 2.9 Decisionmaking process for
sustainability promoting projects 47 3. Energy, sustainability and
renewable energy technology 49 3.1 Background 49 3.2 Global energy
issues 51 3.2.1 Energy and society 51
I
Contents List of Figures and Tables Acronyms and Abbreviations
Executive Summary VI
1. Introduction 1.1 Background 1 1.2 Research questions 3 1.3
Hypothesis 5 1.4 Objectives 6 1.5 Methodology 7 1.5.1 Literature
review 7 1.5.2 Managing data needed 7 1.5.2.1 Secondary data 8
1.5.2.2 Primary data 8 1.5.3 Analysis of data and reasons for
generalization 9 1.6 Limitations 11 1.7 Structure of dissertation
11 Part A Theoretical Underpinnings 2. Sustainability: compulsion
and explication 15
2.1 Sustainability or sustainable development: A compulsion? 15
2.2 Roots of the sustainability concept 17 2.3 Existing explication
of sustainability 19 2.4 Taxonomy of sustainability 27 2.4.1 Weak
sustainability 28 2.4.2 Strong sustainability 30 2.5 Interconnected
elements of sustainability 32 2.5.1 Natural resources consumption
and equity 33 2.5.2 Waste generation and population growth 34 2.5.3
Technical efficiency and resource substitution 34 2.5.4 Economic
activities 35 2.6 Complete sustainability: A constraint with
multifaceted development paradigm 36 2.7 Sustainability definition
at the project level 42 2.8 Promoting sustainability through
developmental activities 44 2.9 Decisionmaking process for
sustainability promoting projects 47 3. Energy, sustainability and
renewable energy technology 49 3.1 Background 49 3.2 Global energy
issues 51 3.2.1 Energy and society 51
I
Contents List of Figures and Tables Acronyms and Abbreviations
Executive Summary VI
1. Introduction 1.1 Background 1 1.2 Research questions 3 1.3
Hypothesis 5 1.4 Objectives 6 1.5 Methodology 7 1.5.1 Literature
review 7 1.5.2 Managing data needed 7 1.5.2.1 Secondary data 8
1.5.2.2 Primary data 8 1.5.3 Analysis of data and reasons for
generalization 9 1.6 Limitations 11 1.7 Structure of dissertation
11 Part A Theoretical Underpinnings 2. Sustainability: compulsion
and explication 15
2.1 Sustainability or sustainable development: A compulsion? 15
2.2 Roots of the sustainability concept 17 2.3 Existing explication
of sustainability 19 2.4 Taxonomy of sustainability 27 2.4.1 Weak
sustainability 28 2.4.2 Strong sustainability 30 2.5 Interconnected
elements of sustainability 32 2.5.1 Natural resources consumption
and equity 33 2.5.2 Waste generation and population growth 34 2.5.3
Technical efficiency and resource substitution 34 2.5.4 Economic
activities 35 2.6 Complete sustainability: A constraint with
multifaceted development paradigm 36 2.7 Sustainability definition
at the project level 42 2.8 Promoting sustainability through
developmental activities 44 2.9 Decisionmaking process for
sustainability promoting projects 47 3. Energy, sustainability and
renewable energy technology 49 3.1 Background 49 3.2 Global energy
issues 51 3.2.1 Energy and society 51
I
Contents List of Figures and Tables Acronyms and Abbreviations
Executive Summary VI
1. Introduction 1.1 Background 1 1.2 Research questions 3 1.3
Hypothesis 5 1.4 Objectives 6 1.5 Methodology 7 1.5.1 Literature
review 7 1.5.2 Managing data needed 7 1.5.2.1 Secondary data 8
1.5.2.2 Primary data 8 1.5.3 Analysis of data and reasons for
generalization 9 1.6 Limitations 11 1.7 Structure of dissertation
11 Part A Theoretical Underpinnings 2. Sustainability: compulsion
and explication 15
2.1 Sustainability or sustainable development: A compulsion? 15
2.2 Roots of the sustainability concept 17 2.3 Existing explication
of sustainability 19 2.4 Taxonomy of sustainability 27 2.4.1 Weak
sustainability 28 2.4.2 Strong sustainability 30 2.5 Interconnected
elements of sustainability 32 2.5.1 Natural resources consumption
and equity 33 2.5.2 Waste generation and population growth 34 2.5.3
Technical efficiency and resource substitution 34 2.5.4 Economic
activities 35 2.6 Complete sustainability: A constraint with
multifaceted development paradigm 36 2.7 Sustainability definition
at the project level 42 2.8 Promoting sustainability through
developmental activities 44 2.9 Decisionmaking process for
sustainability promoting projects 47 3. Energy, sustainability and
renewable energy technology 49 3.1 Background 49 3.2 Global energy
issues 51 3.2.1 Energy and society 51
-
II
3.2.2 Energy poverty and economic well-being 53 3.2.3 Energy and
environment 57 3.2.3.1 Depletion of energy resources 59 3.2.3.2
Waste and emissions of energy resources 59 3.2.3.3 Global warming
and climate change 60 3.2.4 Energy resources and technologies 62
3.3 Nepal: energy at a glimpse 63 3.3.1 Energy poverty 63 3.3.2
Energy and development plans and policies in Nepal 66 3.3.3
Existing macro/micro policy on MHP development in Nepal 68 3.3.4
Energy resources and technologies and their potential in Nepal 72
3.3.5 Economic, social and ecological aspect of energy use in Nepal
74 3.4 Sustainable energy system 76 3.4.1 Micro hydro power in
Nepal 78 3.4.2 Historical background of MHP in Nepal 78 3.4.3
Potential of MHP in Nepal 81 3.4.4 Micro hydro technology
development in Nepal 84 3.4.5 Micro hydropower systems and
sustainability criteria in Nepal 85
4. Concept for the analysis of community owned MHP projects 87
4.1 Background 87 4.2 Factors affecting the project analysis 89
4.2.1 Time horizon 90 4.2.2 System quality 91 4.2.3 Space or system
boundary 93 4.3 Analysis and investment decisionmaking criteria in
the Nepalese MHP sector 94 4.3.1 Internal rate of return 96 4.3.2
Net present value 97 4.3.3 Cost benefit analysis 98 4.3.3.1
Inclusion of total costs and benefits 100 4.3.3.2 Discount factor
101 4.3.3.3 Operating functions 103 4.4 Analyzing and evaluating
MHP projects in Nepal: Alternative approach 104 4.4.1
Sustainability approach of project analysis 106 4.4.2 Framework of
sustainability analysis of MHP projects 107 4.5 Factors in
sustainability analysis of community owned decentralized MHP
projects in Nepal 115 4.5.1 Equity and fairness considerations
115 4.5.1.1 Basic need factors 117 4.5.1.2 Distribution factors 121
4.5.2 Climate change, risk and uncertainties factors 127
Conclusion of theoretical underpinning 130
II
3.2.2 Energy poverty and economic well-being 53 3.2.3 Energy and
environment 57 3.2.3.1 Depletion of energy resources 59 3.2.3.2
Waste and emissions of energy resources 59 3.2.3.3 Global warming
and climate change 60 3.2.4 Energy resources and technologies 62
3.3 Nepal: energy at a glimpse 63 3.3.1 Energy poverty 63 3.3.2
Energy and development plans and policies in Nepal 66 3.3.3
Existing macro/micro policy on MHP development in Nepal 68 3.3.4
Energy resources and technologies and their potential in Nepal 72
3.3.5 Economic, social and ecological aspect of energy use in Nepal
74 3.4 Sustainable energy system 76 3.4.1 Micro hydro power in
Nepal 78 3.4.2 Historical background of MHP in Nepal 78 3.4.3
Potential of MHP in Nepal 81 3.4.4 Micro hydro technology
development in Nepal 84 3.4.5 Micro hydropower systems and
sustainability criteria in Nepal 85
4. Concept for the analysis of community owned MHP projects 87
4.1 Background 87 4.2 Factors affecting the project analysis 89
4.2.1 Time horizon 90 4.2.2 System quality 91 4.2.3 Space or system
boundary 93 4.3 Analysis and investment decisionmaking criteria in
the Nepalese MHP sector 94 4.3.1 Internal rate of return 96 4.3.2
Net present value 97 4.3.3 Cost benefit analysis 98 4.3.3.1
Inclusion of total costs and benefits 100 4.3.3.2 Discount factor
101 4.3.3.3 Operating functions 103 4.4 Analyzing and evaluating
MHP projects in Nepal: Alternative approach 104 4.4.1
Sustainability approach of project analysis 106 4.4.2 Framework of
sustainability analysis of MHP projects 107 4.5 Factors in
sustainability analysis of community owned decentralized MHP
projects in Nepal 115 4.5.1 Equity and fairness considerations
115 4.5.1.1 Basic need factors 117 4.5.1.2 Distribution factors 121
4.5.2 Climate change, risk and uncertainties factors 127
Conclusion of theoretical underpinning 130
II
3.2.2 Energy poverty and economic well-being 53 3.2.3 Energy and
environment 57 3.2.3.1 Depletion of energy resources 59 3.2.3.2
Waste and emissions of energy resources 59 3.2.3.3 Global warming
and climate change 60 3.2.4 Energy resources and technologies 62
3.3 Nepal: energy at a glimpse 63 3.3.1 Energy poverty 63 3.3.2
Energy and development plans and policies in Nepal 66 3.3.3
Existing macro/micro policy on MHP development in Nepal 68 3.3.4
Energy resources and technologies and their potential in Nepal 72
3.3.5 Economic, social and ecological aspect of energy use in Nepal
74 3.4 Sustainable energy system 76 3.4.1 Micro hydro power in
Nepal 78 3.4.2 Historical background of MHP in Nepal 78 3.4.3
Potential of MHP in Nepal 81 3.4.4 Micro hydro technology
development in Nepal 84 3.4.5 Micro hydropower systems and
sustainability criteria in Nepal 85
4. Concept for the analysis of community owned MHP projects 87
4.1 Background 87 4.2 Factors affecting the project analysis 89
4.2.1 Time horizon 90 4.2.2 System quality 91 4.2.3 Space or system
boundary 93 4.3 Analysis and investment decisionmaking criteria in
the Nepalese MHP sector 94 4.3.1 Internal rate of return 96 4.3.2
Net present value 97 4.3.3 Cost benefit analysis 98 4.3.3.1
Inclusion of total costs and benefits 100 4.3.3.2 Discount factor
101 4.3.3.3 Operating functions 103 4.4 Analyzing and evaluating
MHP projects in Nepal: Alternative approach 104 4.4.1
Sustainability approach of project analysis 106 4.4.2 Framework of
sustainability analysis of MHP projects 107 4.5 Factors in
sustainability analysis of community owned decentralized MHP
projects in Nepal 115 4.5.1 Equity and fairness considerations
115 4.5.1.1 Basic need factors 117 4.5.1.2 Distribution factors 121
4.5.2 Climate change, risk and uncertainties factors 127
Conclusion of theoretical underpinning 130
II
3.2.2 Energy poverty and economic well-being 53 3.2.3 Energy and
environment 57 3.2.3.1 Depletion of energy resources 59 3.2.3.2
Waste and emissions of energy resources 59 3.2.3.3 Global warming
and climate change 60 3.2.4 Energy resources and technologies 62
3.3 Nepal: energy at a glimpse 63 3.3.1 Energy poverty 63 3.3.2
Energy and development plans and policies in Nepal 66 3.3.3
Existing macro/micro policy on MHP development in Nepal 68 3.3.4
Energy resources and technologies and their potential in Nepal 72
3.3.5 Economic, social and ecological aspect of energy use in Nepal
74 3.4 Sustainable energy system 76 3.4.1 Micro hydro power in
Nepal 78 3.4.2 Historical background of MHP in Nepal 78 3.4.3
Potential of MHP in Nepal 81 3.4.4 Micro hydro technology
development in Nepal 84 3.4.5 Micro hydropower systems and
sustainability criteria in Nepal 85
4. Concept for the analysis of community owned MHP projects 87
4.1 Background 87 4.2 Factors affecting the project analysis 89
4.2.1 Time horizon 90 4.2.2 System quality 91 4.2.3 Space or system
boundary 93 4.3 Analysis and investment decisionmaking criteria in
the Nepalese MHP sector 94 4.3.1 Internal rate of return 96 4.3.2
Net present value 97 4.3.3 Cost benefit analysis 98 4.3.3.1
Inclusion of total costs and benefits 100 4.3.3.2 Discount factor
101 4.3.3.3 Operating functions 103 4.4 Analyzing and evaluating
MHP projects in Nepal: Alternative approach 104 4.4.1
Sustainability approach of project analysis 106 4.4.2 Framework of
sustainability analysis of MHP projects 107 4.5 Factors in
sustainability analysis of community owned decentralized MHP
projects in Nepal 115 4.5.1 Equity and fairness considerations
115 4.5.1.1 Basic need factors 117 4.5.1.2 Distribution factors 121
4.5.2 Climate change, risk and uncertainties factors 127
Conclusion of theoretical underpinning 130
-
III
Part B Empirical Analysis
5. Externalities of rural energy use in Nepal 133 5.1 Background
133 5.2 Estimation, quantifying and monetizing the externalities
137 5.3 Externality in Nepalese rural energy sector 139 5.4 Types
of externalities in the rural energy sectors of Nepal 142 5.4.1
Economic externalities 144 5.4.1.1 Economic externality in kerosene
145 5.4.1.2 Economic externality in dry-cells 148 5.4.2
Environmental or ecological externalities 150 5.4.2.1 GHG as
ecological externalities 151 5.4.2.2 Ecological externalities of
dry-cell batteries use in rural Nepal 152 5.4.3 Social
externalities 152 5.4.3.1 Employment 153 5.4.3.2 Financial burden
154 5.4.3.3 Accidental losses and health issues 155 5.4.3.4 Feeling
better living situation, gender issues and drudgery aspects 156
5.4.4 Political externalities 156 5.4.4.1 Custom duty 158 5.4.4.2
Subsidy in the grid 160 5.5 Internalization of externalities 162
5.6 Findings and conclusion of the chapter 164 6. Sustainability
analysis of micro hydro technology in Nepal 167 6.1 Background 167
6.2 Sustainability analysis and issues of MHP 168 6.3 Selection of
the case study areas and project sites 169 6.4 Ecological dimension
of MHP 169 6.4.1 Analysis of the ecological capital in the
beginning 171 6.4.2 Analysis of the ecological outputs 173 6.5
Economic dimension of MHP 179 6.5.1 Micro- economic aspect of MHP
in Nepal 180 6.5.1.1 Demand and supply of energy 181 6.5.1.2
Pricing of electricity 183 6.5.1.3 Consumer behaviors and capacity
or willingness to pay 185 6.5.1.4 Market analysis 187 6.5.1.5
Uncertainties and risk 188 6.5.2 Macro economic aspects of MHP in
Nepal 188 6.5.2.1 Employment opportunities and jobs in the MHP
sector 191
III
Part B Empirical Analysis
5. Externalities of rural energy use in Nepal 133 5.1 Background
133 5.2 Estimation, quantifying and monetizing the externalities
137 5.3 Externality in Nepalese rural energy sector 139 5.4 Types
of externalities in the rural energy sectors of Nepal 142 5.4.1
Economic externalities 144 5.4.1.1 Economic externality in kerosene
145 5.4.1.2 Economic externality in dry-cells 148 5.4.2
Environmental or ecological externalities 150 5.4.2.1 GHG as
ecological externalities 151 5.4.2.2 Ecological externalities of
dry-cell batteries use in rural Nepal 152 5.4.3 Social
externalities 152 5.4.3.1 Employment 153 5.4.3.2 Financial burden
154 5.4.3.3 Accidental losses and health issues 155 5.4.3.4 Feeling
better living situation, gender issues and drudgery aspects 156
5.4.4 Political externalities 156 5.4.4.1 Custom duty 158 5.4.4.2
Subsidy in the grid 160 5.5 Internalization of externalities 162
5.6 Findings and conclusion of the chapter 164 6. Sustainability
analysis of micro hydro technology in Nepal 167 6.1 Background 167
6.2 Sustainability analysis and issues of MHP 168 6.3 Selection of
the case study areas and project sites 169 6.4 Ecological dimension
of MHP 169 6.4.1 Analysis of the ecological capital in the
beginning 171 6.4.2 Analysis of the ecological outputs 173 6.5
Economic dimension of MHP 179 6.5.1 Micro- economic aspect of MHP
in Nepal 180 6.5.1.1 Demand and supply of energy 181 6.5.1.2
Pricing of electricity 183 6.5.1.3 Consumer behaviors and capacity
or willingness to pay 185 6.5.1.4 Market analysis 187 6.5.1.5
Uncertainties and risk 188 6.5.2 Macro economic aspects of MHP in
Nepal 188 6.5.2.1 Employment opportunities and jobs in the MHP
sector 191
III
Part B Empirical Analysis
5. Externalities of rural energy use in Nepal 133 5.1 Background
133 5.2 Estimation, quantifying and monetizing the externalities
137 5.3 Externality in Nepalese rural energy sector 139 5.4 Types
of externalities in the rural energy sectors of Nepal 142 5.4.1
Economic externalities 144 5.4.1.1 Economic externality in kerosene
145 5.4.1.2 Economic externality in dry-cells 148 5.4.2
Environmental or ecological externalities 150 5.4.2.1 GHG as
ecological externalities 151 5.4.2.2 Ecological externalities of
dry-cell batteries use in rural Nepal 152 5.4.3 Social
externalities 152 5.4.3.1 Employment 153 5.4.3.2 Financial burden
154 5.4.3.3 Accidental losses and health issues 155 5.4.3.4 Feeling
better living situation, gender issues and drudgery aspects 156
5.4.4 Political externalities 156 5.4.4.1 Custom duty 158 5.4.4.2
Subsidy in the grid 160 5.5 Internalization of externalities 162
5.6 Findings and conclusion of the chapter 164 6. Sustainability
analysis of micro hydro technology in Nepal 167 6.1 Background 167
6.2 Sustainability analysis and issues of MHP 168 6.3 Selection of
the case study areas and project sites 169 6.4 Ecological dimension
of MHP 169 6.4.1 Analysis of the ecological capital in the
beginning 171 6.4.2 Analysis of the ecological outputs 173 6.5
Economic dimension of MHP 179 6.5.1 Micro- economic aspect of MHP
in Nepal 180 6.5.1.1 Demand and supply of energy 181 6.5.1.2
Pricing of electricity 183 6.5.1.3 Consumer behaviors and capacity
or willingness to pay 185 6.5.1.4 Market analysis 187 6.5.1.5
Uncertainties and risk 188 6.5.2 Macro economic aspects of MHP in
Nepal 188 6.5.2.1 Employment opportunities and jobs in the MHP
sector 191
III
Part B Empirical Analysis
5. Externalities of rural energy use in Nepal 133 5.1 Background
133 5.2 Estimation, quantifying and monetizing the externalities
137 5.3 Externality in Nepalese rural energy sector 139 5.4 Types
of externalities in the rural energy sectors of Nepal 142 5.4.1
Economic externalities 144 5.4.1.1 Economic externality in kerosene
145 5.4.1.2 Economic externality in dry-cells 148 5.4.2
Environmental or ecological externalities 150 5.4.2.1 GHG as
ecological externalities 151 5.4.2.2 Ecological externalities of
dry-cell batteries use in rural Nepal 152 5.4.3 Social
externalities 152 5.4.3.1 Employment 153 5.4.3.2 Financial burden
154 5.4.3.3 Accidental losses and health issues 155 5.4.3.4 Feeling
better living situation, gender issues and drudgery aspects 156
5.4.4 Political externalities 156 5.4.4.1 Custom duty 158 5.4.4.2
Subsidy in the grid 160 5.5 Internalization of externalities 162
5.6 Findings and conclusion of the chapter 164 6. Sustainability
analysis of micro hydro technology in Nepal 167 6.1 Background 167
6.2 Sustainability analysis and issues of MHP 168 6.3 Selection of
the case study areas and project sites 169 6.4 Ecological dimension
of MHP 169 6.4.1 Analysis of the ecological capital in the
beginning 171 6.4.2 Analysis of the ecological outputs 173 6.5
Economic dimension of MHP 179 6.5.1 Micro- economic aspect of MHP
in Nepal 180 6.5.1.1 Demand and supply of energy 181 6.5.1.2
Pricing of electricity 183 6.5.1.3 Consumer behaviors and capacity
or willingness to pay 185 6.5.1.4 Market analysis 187 6.5.1.5
Uncertainties and risk 188 6.5.2 Macro economic aspects of MHP in
Nepal 188 6.5.2.1 Employment opportunities and jobs in the MHP
sector 191
-
IV
6.5.2.2 Capital investment in the manufacturing sectors 195
6.5.2.3 Cost of MHP plants 198 6.5.2.4 Economic benefits 202
6.5.2.5 Beneficiaries population 203 6.5.3 Reduction of economic
poverty 204 6.5.3.1 Through the creation of employment at macro as
well as micro level 205 6.5.3.2 Through the reduced household
expenses on lighting energy 208 6.5.3.3 Through employment and
backward & forward linkages 209 6.5.4 Economic analysis of MHP
projects 210 6.5.4.1 Economic analysis of Dajungkhola MHP 212
6.5.4.2 Analysis from the household perspective 212 6.5.4.3
Analysis from the community perspective 215 6.5.4.4 Economic
benefits from electricity use in end-use technologies 217 6.5.5
Analysis of MHP from traditional financial approach 218 6.6 Social
dimension of MHP 220 6.6.1 Analysis of social capital of community
before MHP project implementation 221 6.6.2 Analysis of social
capital output 222 6.6.2.1 Enhanced living condition 223 6.6.2.2
Drudgery and burden reduction 226 6.6.2.3 Better education &
information awareness 228 6.6.2.4 En-gendering development 228
6.6.2.5 Distribution of output and equity 230 6.6.2.6
Participation, empowerment and accessibility in decision making 233
6.7 Discussion and conclusion of the chapter 235
7. A Way Forward: Realizing Sustainable MHP Projects for
Promoting
Sustainability Paradigm in the Rural Energy Sector in Nepal 241
7.1 Background 241 7.2 Future scenarios of MHP 242 7.2.1
Transportation sector 243 7.2.2 Agriculture sector 243 7.2.3
Industrial and commercial sector 245 7.2.4 Domestic or household
sector 246 7.2.5 Employment 250 7.2.6 Economic benefits and
development 252 7.2.7 Reduction of GHG and other pollution 255
7.2.8 Electricity supply, demand and beneficiaries in the national
scenario 255 7.3 Implementation modalities of MHP projects 258
7.3.1 Financing of MHP projects in Nepal 259 7.3.1.1 Incentives,
promotion and subsidy 260 7.3.1.1.1 Human development index and
expenses on lighting 261 7.3.1.1.2 Capacity to pay and price of
sustainable energy system 264
IV
6.5.2.2 Capital investment in the manufacturing sectors 195
6.5.2.3 Cost of MHP plants 198 6.5.2.4 Economic benefits 202
6.5.2.5 Beneficiaries population 203 6.5.3 Reduction of economic
poverty 204 6.5.3.1 Through the creation of employment at macro as
well as micro level 205 6.5.3.2 Through the reduced household
expenses on lighting energy 208 6.5.3.3 Through employment and
backward & forward linkages 209 6.5.4 Economic analysis of MHP
projects 210 6.5.4.1 Economic analysis of Dajungkhola MHP 212
6.5.4.2 Analysis from the household perspective 212 6.5.4.3
Analysis from the community perspective 215 6.5.4.4 Economic
benefits from electricity use in end-use technologies 217 6.5.5
Analysis of MHP from traditional financial approach 218 6.6 Social
dimension of MHP 220 6.6.1 Analysis of social capital of community
before MHP project implementation 221 6.6.2 Analysis of social
capital output 222 6.6.2.1 Enhanced living condition 223 6.6.2.2
Drudgery and burden reduction 226 6.6.2.3 Better education &
information awareness 228 6.6.2.4 En-gendering development 228
6.6.2.5 Distribution of output and equity 230 6.6.2.6
Participation, empowerment and accessibility in decision making 233
6.7 Discussion and conclusion of the chapter 235
7. A Way Forward: Realizing Sustainable MHP Projects for
Promoting
Sustainability Paradigm in the Rural Energy Sector in Nepal 241
7.1 Background 241 7.2 Future scenarios of MHP 242 7.2.1
Transportation sector 243 7.2.2 Agriculture sector 243 7.2.3
Industrial and commercial sector 245 7.2.4 Domestic or household
sector 246 7.2.5 Employment 250 7.2.6 Economic benefits and
development 252 7.2.7 Reduction of GHG and other pollution 255
7.2.8 Electricity supply, demand and beneficiaries in the national
scenario 255 7.3 Implementation modalities of MHP projects 258
7.3.1 Financing of MHP projects in Nepal 259 7.3.1.1 Incentives,
promotion and subsidy 260 7.3.1.1.1 Human development index and
expenses on lighting 261 7.3.1.1.2 Capacity to pay and price of
sustainable energy system 264
IV
6.5.2.2 Capital investment in the manufacturing sectors 195
6.5.2.3 Cost of MHP plants 198 6.5.2.4 Economic benefits 202
6.5.2.5 Beneficiaries population 203 6.5.3 Reduction of economic
poverty 204 6.5.3.1 Through the creation of employment at macro as
well as micro level 205 6.5.3.2 Through the reduced household
expenses on lighting energy 208 6.5.3.3 Through employment and
backward & forward linkages 209 6.5.4 Economic analysis of MHP
projects 210 6.5.4.1 Economic analysis of Dajungkhola MHP 212
6.5.4.2 Analysis from the household perspective 212 6.5.4.3
Analysis from the community perspective 215 6.5.4.4 Economic
benefits from electricity use in end-use technologies 217 6.5.5
Analysis of MHP from traditional financial approach 218 6.6 Social
dimension of MHP 220 6.6.1 Analysis of social capital of community
before MHP project implementation 221 6.6.2 Analysis of social
capital output 222 6.6.2.1 Enhanced living condition 223 6.6.2.2
Drudgery and burden reduction 226 6.6.2.3 Better education &
information awareness 228 6.6.2.4 En-gendering development 228
6.6.2.5 Distribution of output and equity 230 6.6.2.6
Participation, empowerment and accessibility in decision making 233
6.7 Discussion and conclusion of the chapter 235
7. A Way Forward: Realizing Sustainable MHP Projects for
Promoting
Sustainability Paradigm in the Rural Energy Sector in Nepal 241
7.1 Background 241 7.2 Future scenarios of MHP 242 7.2.1
Transportation sector 243 7.2.2 Agriculture sector 243 7.2.3
Industrial and commercial sector 245 7.2.4 Domestic or household
sector 246 7.2.5 Employment 250 7.2.6 Economic benefits and
development 252 7.2.7 Reduction of GHG and other pollution 255
7.2.8 Electricity supply, demand and beneficiaries in the national
scenario 255 7.3 Implementation modalities of MHP projects 258
7.3.1 Financing of MHP projects in Nepal 259 7.3.1.1 Incentives,
promotion and subsidy 260 7.3.1.1.1 Human development index and
expenses on lighting 261 7.3.1.1.2 Capacity to pay and price of
sustainable energy system 264
IV
6.5.2.2 Capital investment in the manufacturing sectors 195
6.5.2.3 Cost of MHP plants 198 6.5.2.4 Economic benefits 202
6.5.2.5 Beneficiaries population 203 6.5.3 Reduction of economic
poverty 204 6.5.3.1 Through the creation of employment at macro as
well as micro level 205 6.5.3.2 Through the reduced household
expenses on lighting energy 208 6.5.3.3 Through employment and
backward & forward linkages 209 6.5.4 Economic analysis of MHP
projects 210 6.5.4.1 Economic analysis of Dajungkhola MHP 212
6.5.4.2 Analysis from the household perspective 212 6.5.4.3
Analysis from the community perspective 215 6.5.4.4 Economic
benefits from electricity use in end-use technologies 217 6.5.5
Analysis of MHP from traditional financial approach 218 6.6 Social
dimension of MHP 220 6.6.1 Analysis of social capital of community
before MHP project implementation 221 6.6.2 Analysis of social
capital output 222 6.6.2.1 Enhanced living condition 223 6.6.2.2
Drudgery and burden reduction 226 6.6.2.3 Better education &
information awareness 228 6.6.2.4 En-gendering development 228
6.6.2.5 Distribution of output and equity 230 6.6.2.6
Participation, empowerment and accessibility in decision making 233
6.7 Discussion and conclusion of the chapter 235
7. A Way Forward: Realizing Sustainable MHP Projects for
Promoting
Sustainability Paradigm in the Rural Energy Sector in Nepal 241
7.1 Background 241 7.2 Future scenarios of MHP 242 7.2.1
Transportation sector 243 7.2.2 Agriculture sector 243 7.2.3
Industrial and commercial sector 245 7.2.4 Domestic or household
sector 246 7.2.5 Employment 250 7.2.6 Economic benefits and
development 252 7.2.7 Reduction of GHG and other pollution 255
7.2.8 Electricity supply, demand and beneficiaries in the national
scenario 255 7.3 Implementation modalities of MHP projects 258
7.3.1 Financing of MHP projects in Nepal 259 7.3.1.1 Incentives,
promotion and subsidy 260 7.3.1.1.1 Human development index and
expenses on lighting 261 7.3.1.1.2 Capacity to pay and price of
sustainable energy system 264
-
V
7.3.1.2 Internalization of existing externalities in the rural
energy sector 261 7.3.1.3 Mobilization of resources locally to
implement the MHP projects 268 7.3.2 MHP as a CDM project 271
7.3.2.1 Possibilities of getting MHP as CDM projects 273 7.3.2.2
Implementing MHP as the CDM projects 277 7.3.3 Institutional
modalities 281 7.3.4 Ownership 282 7.3.5 End-use development 284
7.3.6 Technological development and back-up services 288 7.4
Alternatives to MHP 289 8. Discussion on findings and set
hypothesis 293 9. Conclusions and recommendations for research
studies and activities 302
Annexes Bibliography Selbstständigkeitserklärung
(Declaration)
V
7.3.1.2 Internalization of existing externalities in the rural
energy sector 261 7.3.1.3 Mobilization of resources locally to
implement the MHP projects 268 7.3.2 MHP as a CDM project 271
7.3.2.1 Possibilities of getting MHP as CDM projects 273 7.3.2.2
Implementing MHP as the CDM projects 277 7.3.3 Institutional
modalities 281 7.3.4 Ownership 282 7.3.5 End-use development 284
7.3.6 Technological development and back-up services 288 7.4
Alternatives to MHP 289 8. Discussion on findings and set
hypothesis 293 9. Conclusions and recommendations for research
studies and activities 302
Annexes Bibliography Selbstständigkeitserklärung
(Declaration)
V
7.3.1.2 Internalization of existing externalities in the rural
energy sector 261 7.3.1.3 Mobilization of resources locally to
implement the MHP projects 268 7.3.2 MHP as a CDM project 271
7.3.2.1 Possibilities of getting MHP as CDM projects 273 7.3.2.2
Implementing MHP as the CDM projects 277 7.3.3 Institutional
modalities 281 7.3.4 Ownership 282 7.3.5 End-use development 284
7.3.6 Technological development and back-up services 288 7.4
Alternatives to MHP 289 8. Discussion on findings and set
hypothesis 293 9. Conclusions and recommendations for research
studies and activities 302
Annexes Bibliography Selbstständigkeitserklärung
(Declaration)
V
7.3.1.2 Internalization of existing externalities in the rural
energy sector 261 7.3.1.3 Mobilization of resources locally to
implement the MHP projects 268 7.3.2 MHP as a CDM project 271
7.3.2.1 Possibilities of getting MHP as CDM projects 273 7.3.2.2
Implementing MHP as the CDM projects 277 7.3.3 Institutional
modalities 281 7.3.4 Ownership 282 7.3.5 End-use development 284
7.3.6 Technological development and back-up services 288 7.4
Alternatives to MHP 289 8. Discussion on findings and set
hypothesis 293 9. Conclusions and recommendations for research
studies and activities 302
Annexes Bibliography Selbstständigkeitserklärung
(Declaration)
-
A
List of Figures
Figures Page
Figure 1.1 Relation between beneficiary HH and capacity of
plant……………………….9
Figure 1.2 Relation between investment and beneficiary
HH……………………………10
Figure 1.3 Investment cost and capacity of plant
…………………………..………….10
Figure 1.4 Relations between cost/kw and
HH/kW……………………………………….11
Figure 1.5 Structure of dissertation
..……………………………………………………..13
Figure 2.1 Two definitions of sustainability
……………………………………………..38
Figure 2.2 Three dimensional development trajectory
…………………………………..41
Figure 2.3 Sustainability analysis for promoting sustainability
… ……………………….46
Figure 2.4 Decisionmaking process and mechanism for
sustainability promoting projects48
Figure 3.1 Energy and development block in the limited
biodiversity ………………… 50
Figure 3.2 Energy consumption and human civilization ……………………
………… 52
Figure 3.3 Energy consumption scenarios after 1960 ………………………
…………. 52
Figure 3.4 Commercial energy consumption and GDP …………………………………
54
Figure 3.5 Commercial energy consumption and infant mortality
…………………….. 55
Figure 3.6 Electricity consumption Vs GDP …………………………………………..
55
Figure 3.7 Renewable energy cycle ………………………………………… ……… 58
Figure 3.8 Non-renewable energy cycle ………………………………………… …….
58
Figure 3.9 Combined annual land-surface air and sea surface
temperature anomalies (°C)61
Figure 3.10 - Global total primary energy supply in the year
2000 ………………………62
Figure 3.11: Linkages between energy poverty and overall poverty
in Nepalese context 65
Figure 3.12 Energy consumption scenario of Nepal …………… …………………….
66
Figure 3.13 Hydropower development and electrification in Nepal
…………………… 80
Figure 3.14 Rivers and Rivulets criss-crossing the Nepal
……………………………… 82
Figure 4.1 Time horizon and impacts of the project
……………………………………. 90
Figure 4.2 limits of a project definition ………………………………………………….
92
Figure 4.3 Changing value of NPV for an interest (discount) rate
r ……………………. 96
Figure 4.4 Conceptual example of project analysis aspects &
coverage of issues …. … 106
Figure 4.5 Sustainability components and system
………………………………………111
Figure 4.6 Input and output capital to an energy system within a
defined boundary …114
Figure 4.6 Old systems and new systems of lightings and
respective prices and quality .121
Figure 4.7 Average HDI and difference between poor and rich
community ……… … 126
A
List of Figures
Figures Page
Figure 1.1 Relation between beneficiary HH and capacity of
plant……………………….9
Figure 1.2 Relation between investment and beneficiary
HH……………………………10
Figure 1.3 Investment cost and capacity of plant
…………………………..………….10
Figure 1.4 Relations between cost/kw and
HH/kW……………………………………….11
Figure 1.5 Structure of dissertation
..……………………………………………………..13
Figure 2.1 Two definitions of sustainability
……………………………………………..38
Figure 2.2 Three dimensional development trajectory
…………………………………..41
Figure 2.3 Sustainability analysis for promoting sustainability
… ……………………….46
Figure 2.4 Decisionmaking process and mechanism for
sustainability promoting projects48
Figure 3.1 Energy and development block in the limited
biodiversity ………………… 50
Figure 3.2 Energy consumption and human civilization ……………………
………… 52
Figure 3.3 Energy consumption scenarios after 1960 ………………………
…………. 52
Figure 3.4 Commercial energy consumption and GDP …………………………………
54
Figure 3.5 Commercial energy consumption and infant mortality
…………………….. 55
Figure 3.6 Electricity consumption Vs GDP …………………………………………..
55
Figure 3.7 Renewable energy cycle ………………………………………… ……… 58
Figure 3.8 Non-renewable energy cycle ………………………………………… …….
58
Figure 3.9 Combined annual land-surface air and sea surface
temperature anomalies (°C)61
Figure 3.10 - Global total primary energy supply in the year
2000 ………………………62
Figure 3.11: Linkages between energy poverty and overall poverty
in Nepalese context 65
Figure 3.12 Energy consumption scenario of Nepal …………… …………………….
66
Figure 3.13 Hydropower development and electrification in Nepal
…………………… 80
Figure 3.14 Rivers and Rivulets criss-crossing the Nepal
……………………………… 82
Figure 4.1 Time horizon and impacts of the project
……………………………………. 90
Figure 4.2 limits of a project definition ………………………………………………….
92
Figure 4.3 Changing value of NPV for an interest (discount) rate
r ……………………. 96
Figure 4.4 Conceptual example of project analysis aspects &
coverage of issues …. … 106
Figure 4.5 Sustainability components and system
………………………………………111
Figure 4.6 Input and output capital to an energy system within a
defined boundary …114
Figure 4.6 Old systems and new systems of lightings and
respective prices and quality .121
Figure 4.7 Average HDI and difference between poor and rich
community ……… … 126
A
List of Figures
Figures Page
Figure 1.1 Relation between beneficiary HH and capacity of
plant……………………….9
Figure 1.2 Relation between investment and beneficiary
HH……………………………10
Figure 1.3 Investment cost and capacity of plant
…………………………..………….10
Figure 1.4 Relations between cost/kw and
HH/kW……………………………………….11
Figure 1.5 Structure of dissertation
..……………………………………………………..13
Figure 2.1 Two definitions of sustainability
……………………………………………..38
Figure 2.2 Three dimensional development trajectory
…………………………………..41
Figure 2.3 Sustainability analysis for promoting sustainability
… ……………………….46
Figure 2.4 Decisionmaking process and mechanism for
sustainability promoting projects48
Figure 3.1 Energy and development block in the limited
biodiversity ………………… 50
Figure 3.2 Energy consumption and human civilization ……………………
………… 52
Figure 3.3 Energy consumption scenarios after 1960 ………………………
…………. 52
Figure 3.4 Commercial energy consumption and GDP …………………………………
54
Figure 3.5 Commercial energy consumption and infant mortality
…………………….. 55
Figure 3.6 Electricity consumption Vs GDP …………………………………………..
55
Figure 3.7 Renewable energy cycle ………………………………………… ……… 58
Figure 3.8 Non-renewable energy cycle ………………………………………… …….
58
Figure 3.9 Combined annual land-surface air and sea surface
temperature anomalies (°C)61
Figure 3.10 - Global total primary energy supply in the year
2000 ………………………62
Figure 3.11: Linkages between energy poverty and overall poverty
in Nepalese context 65
Figure 3.12 Energy consumption scenario of Nepal …………… …………………….
66
Figure 3.13 Hydropower development and electrification in Nepal
…………………… 80
Figure 3.14 Rivers and Rivulets criss-crossing the Nepal
……………………………… 82
Figure 4.1 Time horizon and impacts of the project
……………………………………. 90
Figure 4.2 limits of a project definition ………………………………………………….
92
Figure 4.3 Changing value of NPV for an interest (discount) rate
r ……………………. 96
Figure 4.4 Conceptual example of project analysis aspects &
coverage of issues …. … 106
Figure 4.5 Sustainability components and system
………………………………………111
Figure 4.6 Input and output capital to an energy system within a
defined boundary …114
Figure 4.6 Old systems and new systems of lightings and
respective prices and quality .121
Figure 4.7 Average HDI and difference between poor and rich
community ……… … 126
A
List of Figures
Figures Page
Figure 1.1 Relation between beneficiary HH and capacity of
plant……………………….9
Figure 1.2 Relation between investment and beneficiary
HH……………………………10
Figure 1.3 Investment cost and capacity of plant
…………………………..………….10
Figure 1.4 Relations between cost/kw and
HH/kW……………………………………….11
Figure 1.5 Structure of dissertation
..……………………………………………………..13
Figure 2.1 Two definitions of sustainability
……………………………………………..38
Figure 2.2 Three dimensional development trajectory
…………………………………..41
Figure 2.3 Sustainability analysis for promoting sustainability
… ……………………….46
Figure 2.4 Decisionmaking process and mechanism for
sustainability promoting projects48
Figure 3.1 Energy and development block in the limited
biodiversity ………………… 50
Figure 3.2 Energy consumption and human civilization ……………………
………… 52
Figure 3.3 Energy consumption scenarios after 1960 ………………………
…………. 52
Figure 3.4 Commercial energy consumption and GDP …………………………………
54
Figure 3.5 Commercial energy consumption and infant mortality
…………………….. 55
Figure 3.6 Electricity consumption Vs GDP …………………………………………..
55
Figure 3.7 Renewable energy cycle ………………………………………… ……… 58
Figure 3.8 Non-renewable energy cycle ………………………………………… …….
58
Figure 3.9 Combined annual land-surface air and sea surface
temperature anomalies (°C)61
Figure 3.10 - Global total primary energy supply in the year
2000 ………………………62
Figure 3.11: Linkages between energy poverty and overall poverty
in Nepalese context 65
Figure 3.12 Energy consumption scenario of Nepal …………… …………………….
66
Figure 3.13 Hydropower development and electrification in Nepal
…………………… 80
Figure 3.14 Rivers and Rivulets criss-crossing the Nepal
……………………………… 82
Figure 4.1 Time horizon and impacts of the project
……………………………………. 90
Figure 4.2 limits of a project definition ………………………………………………….
92
Figure 4.3 Changing value of NPV for an interest (discount) rate
r ……………………. 96
Figure 4.4 Conceptual example of project analysis aspects &
coverage of issues …. … 106
Figure 4.5 Sustainability components and system
………………………………………111
Figure 4.6 Input and output capital to an energy system within a
defined boundary …114
Figure 4.6 Old systems and new systems of lightings and
respective prices and quality .121
Figure 4.7 Average HDI and difference between poor and rich
community ……… … 126
-
B
Figure 5.1 Energy system, energy cost and externalities
………………………………..138
Figure 5.2 GDP, petroleum import and kerosene consumption
…………………………146
Figure 5.3 Productions of dry cells in Nepal
…………………………………………….149
Figure 5.5 Definition of political externality ……………………………………………
157
Figure 5.6 Political externality ……………………………………………………… . 157
Figure 6.1 Status of households and their ability to pay in
rural Nepal …………………182
Figure 6.2 Comparative characteristics of five MHP sites in
Myagdi …………………..219 Figure 6.3 Enrollment in primary school in
Piughar …………………………………. 229
Figure 6.4 Structure of management committee in the community
owned MHPs …… 235
Figure 6.5 Impacts of Dajungkhola MHP ……………………………………………… 240
Figure 7.1 Future scenario of MHP with benefited HH, employment
& end-uses ……..251
Figure 7.2 NEA's yearly customer increment …………………………………………..
256
Figure 7.3 Process of internalizing externalities and abandoning
subsidies …………… 267
Figure 7.4 Process of internalizing externalities and abandoning
subsidies …………….267
Figure 7.5 Financing mechanism of community owned MHP
………………………….270
Figure 7.6 CDM mechanism within Nepalese context
………………………….………277
Figure 7.7 Project’s resource mobilization and its sharing
…………………………….. 278
Figure 7.8 Ownership and institution modalities
………………………………………..282
Figure 7.9 Classification of households and their income status
in rural Nepal …… …287
List of Tables
Tables Page
Table 2.1 Comparison of weak and strong sustainability
………………………….…….30
Table 2.2 Sustainability matrix ………………………………………………….……….43
Table 3.1 Indoor air concentration in some developing countries
…………………….…57
Table 3.2 Energy and its relation to main environmental problem
………………………60
Table 3.3 Development plans and energy in Nepal ……………………………………
67
Table 3.4 Energy and technologies in rural domestic sector in
Nepal …………………. 73
Table 3.5 The potential of renewable energy resources/technology
……………………. 73
Table 4.1 System boundary and system quality
………………………………………….93
Table 4.2 Risks and uncertainties of big and micro hydro
projects in Nepal ……………130
Table 5.1 GHG gas (CO2) emission from energy carriers in Nepal
…………………….141 B
Figure 5.1 Energy system, energy cost and externalities
………………………………..138
Figure 5.2 GDP, petroleum import and kerosene consumption
…………………………146
Figure 5.3 Productions of dry cells in Nepal
…………………………………………….149
Figure 5.5 Definition of political externality ……………………………………………
157
Figure 5.6 Political externality ……………………………………………………… . 157
Figure 6.1 Status of households and their ability to pay in
rural Nepal …………………182
Figure 6.2 Comparative characteristics of five MHP sites in
Myagdi …………………..219 Figure 6.3 Enrollment in primary school in
Piughar …………………………………. 229
Figure 6.4 Structure of management committee in the community
owned MHPs …… 235
Figure 6.5 Impacts of Dajungkhola MHP ……………………………………………… 240
Figure 7.1 Future scenario of MHP with benefited HH, employment
& end-uses ……..251
Figure 7.2 NEA's yearly customer increment …………………………………………..
256
Figure 7.3 Process of internalizing externalities and abandoning
subsidies …………… 267
Figure 7.4 Process of internalizing externalities and abandoning
subsidies …………….267
Figure 7.5 Financing mechanism of community owned MHP
………………………….270
Figure 7.6 CDM mechanism within Nepalese context
………………………….………277
Figure 7.7 Project’s resource mobilization and its sharing
…………………………….. 278
Figure 7.8 Ownership and institution modalities
………………………………………..282
Figure 7.9 Classification of households and their income status
in rural Nepal …… …287
List of Tables
Tables Page
Table 2.1 Comparison of weak and strong sustainability
………………………….…….30
Table 2.2 Sustainability matrix ………………………………………………….……….43
Table 3.1 Indoor air concentration in some developing countries
…………………….…57
Table 3.2 Energy and its relation to main environmental problem
………………………60
Table 3.3 Development plans and energy in Nepal ……………………………………
67
Table 3.4 Energy and technologies in rural domestic sector in
Nepal …………………. 73
Table 3.5 The potential of renewable energy resources/technology
……………………. 73
Table 4.1 System boundary and system quality
………………………………………….93
Table 4.2 Risks and uncertainties of big and micro hydro
projects in Nepal ……………130
Table 5.1 GHG gas (CO2) emission from energy carriers in Nepal
…………………….141
B
Figure 5.1 Energy system, energy cost and externalities
………………………………..138
Figure 5.2 GDP, petroleum import and kerosene consumption
…………………………146
Figure 5.3 Productions of dry cells in Nepal
…………………………………………….149
Figure 5.5 Definition of political externality ……………………………………………
157
Figure 5.6 Political externality ……………………………………………………… . 157
Figure 6.1 Status of households and their ability to pay in
rural Nepal …………………182
Figure 6.2 Comparative characteristics of five MHP sites in
Myagdi …………………..219 Figure 6.3 Enrollment in primary school in
Piughar …………………………………. 229
Figure 6.4 Structure of management committee in the community
owned MHPs …… 235
Figure 6.5 Impacts of Dajungkhola MHP ……………………………………………… 240
Figure 7.1 Future scenario of MHP with benefited HH, employment
& end-uses ……..251
Figure 7.2 NEA's yearly customer increment …………………………………………..
256
Figure 7.3 Process of internalizing externalities and abandoning
subsidies …………… 267
Figure 7.4 Process of internalizing externalities and abandoning
subsidies …………….267
Figure 7.5 Financing mechanism of community owned MHP
………………………….270
Figure 7.6 CDM mechanism within Nepalese context
………………………….………277
Figure 7.7 Project’s resource mobilization and its sharing
…………………………….. 278
Figure 7.8 Ownership and institution modalities
………………………………………..282
Figure 7.9 Classification of households and their income status
in rural Nepal …… …287
List of Tables
Tables Page
Table 2.1 Comparison of weak and strong sustainability
………………………….…….30
Table 2.2 Sustainability matrix ………………………………………………….……….43
Table 3.1 Indoor air concentration in some developing countries
…………………….…57
Table 3.2 Energy and its relation to main environmental problem
………………………60
Table 3.3 Development plans and energy in Nepal ……………………………………
67
Table 3.4 Energy and technologies in rural domestic sector in
Nepal …………………. 73
Table 3.5 The potential of renewable energy resources/technology
……………………. 73
Table 4.1 System boundary and system quality
………………………………………….93
Table 4.2 Risks and uncertainties of big and micro hydro
projects in Nepal ……………130
Table 5.1 GHG gas (CO2) emission from energy carriers in Nepal
…………………….141 B
Figure 5.1 Energy system, energy cost and externalities
………………………………..138
Figure 5.2 GDP, petroleum import and kerosene consumption
…………………………146
Figure 5.3 Productions of dry cells in Nepal
…………………………………………….149
Figure 5.5 Definition of political externality ……………………………………………
157
Figure 5.6 Political externality ……………………………………………………… . 157
Figure 6.1 Status of households and their ability to pay in
rural Nepal …………………182
Figure 6.2 Comparative characteristics of five MHP sites in
Myagdi …………………..219 Figure 6.3 Enrollment in primary school in
Piughar …………………………………. 229
Figure 6.4 Structure of management committee in the community
owned MHPs …… 235
Figure 6.5 Impacts of Dajungkhola MHP ……………………………………………… 240
Figure 7.1 Future scenario of MHP with benefited HH, employment
& end-uses ……..251
Figure 7.2 NEA's yearly customer increment …………………………………………..
256
Figure 7.3 Process of internalizing externalities and abandoning
subsidies …………… 267
Figure 7.4 Process of internalizing externalities and abandoning
subsidies …………….267
Figure 7.5 Financing mechanism of community owned MHP
………………………….270
Figure 7.6 CDM mechanism within Nepalese context
………………………….………277
Figure 7.7 Project’s resource mobilization and its sharing
…………………………….. 278
Figure 7.8 Ownership and institution modalities
………………………………………..282
Figure 7.9 Classification of households and their income status
in rural Nepal …… …287
List of Tables
Tables Page
Table 2.1 Comparison of weak and strong sustainability
………………………….…….30
Table 2.2 Sustainability matrix ………………………………………………….……….43
Table 3.1 Indoor air concentration in some developing countries
…………………….…57
Table 3.2 Energy and its relation to main environmental problem
………………………60
Table 3.3 Development plans and energy in Nepal ……………………………………
67
Table 3.4 Energy and technologies in rural domestic sector in
Nepal …………………. 73
Table 3.5 The potential of renewable energy resources/technology
……………………. 73
Table 4.1 System boundary and system quality
………………………………………….93
Table 4.2 Risks and uncertainties of big and micro hydro
projects in Nepal ……………130
Table 5.1 GHG gas (CO2) emission from energy carriers in Nepal
…………………….141
-
C
Table 5.2 Negative impacts of energy resources and technologies
used in Nepal …… .143
Table 5.3 Scenario of fossil fuel consumption and pricing (FY
2001/2002) ……………145
Table 5.4 Subsidy provided to rural households on kerosene for
lighting only ………. .147
Table 5.5 Typical Household dry-cell batteries used in rural
Nepal …………………….148
Table 5.6 Expenses on dry cell battery by rural households
…………………………….149
Table 5.7 CO2 emission from energy carriers in rural Nepal
………………………… 151
Table 5.8 CO2 emission from unsustainable energy carriers in
rural Nepal. ………… 152
Table 5.9 Average per capita consumption of household in rural
Nepal ………………..155
Table 5.10 Customs duties paid for MHP components import
………………………….159 Table 5.11 The average transmission and distribution
costs of MHP in Nepal …………161
Table 5.12 Transmission and distribution cost of Grid and MHP in
Nepal ……………. 162
Table 5.13 Average externality in rural energy sector of Nepal
……………………… 165
Table 6.1 Kerosene consumption and GHG emission in 10 different
villages in Nepal 172
Table 6.2 End-uses and their GHG (CO2) emission in Okharbot
before MHP …………172
Table.6.3 Ecological impacts of MHP other than GHG ………………………………
175
Table 6.4 Kerosene and electricity in rural lighting from
ecological perspective …….176
Table 6.5 Ecological benefits in terms of GHG after MHP
installation ……………….. 177
Table 6.6 GHG (CO2) avoidance cost and benefits in Dajungkhola
MHP ……………. 178
Table 6.7 Tariff rate in few community owned MHP for lighting
and end-uses ……….184
Table 6.8 Tariff collection, willingness to pay and behavior
……………………………186
Table 6.9 Employment in MHP survey and manufacturing sector
…………………… 191
Table 6.10 MHP technologies and employment in operation and
management …… 192
Table 6.11 Employment in hydro & electricity related
manufacturing sector in Nepal 193
Table 6.12 Involvement of economically active manpower in
economic sectors …….193
Table 6.13 Employment opportunities created by MHP
implementation ……………. 194
Table 6.14 Investment in the MHP component manufacturing sectors
in Nepal ……….196
Table 6.15 Assets in manufacturing of electromechanical
components in Nepal ……… 196
Table 6.16 Salary and tax paid by MHP manufacturers (in Rs for
FY 2001/02) ……… 197
Table 6.17 Cost of the some MHP projects …………………………………………….
199
Table: 6.18 Analyses of the costs of MHP components
……………………………….. 200
Table 6.19 Exiting scenario of MHP ………………………………………………… . 204
Table 6.20 Employment after the MHP systems in five VDCs in
Nepal ……………… 206
Table 6.21 The financial status of the project …………………………………………
211
Table 6.22 Economic analysis internalising subsidy externalities
………………………213
Table 6.23 Economic analysis internalising pecuniary
externalities ………………… .214
C
Table 5.2 Negative impacts of energy resources and technologies
used in Nepal …… .143
Table 5.3 Scenario of fossil fuel consumption and pricing (FY
2001/2002) ……………145
Table 5.4 Subsidy provided to rural households on kerosene for
lighting only ………. .147
Table 5.5 Typical Household dry-cell batteries used in rural
Nepal …………………….148
Table 5.6 Expenses on dry cell battery by rural households
…………………………….149
Table 5.7 CO2 emission from energy carriers in rural Nepal
………………………… 151
Table 5.8 CO2 emission from unsustainable energy carriers in
rural Nepal. ………… 152
Table 5.9 Average per capita consumption of household in rural
Nepal ………………..155
Table 5.10 Customs duties paid for MHP components import
………………………….159 Table 5.11 The average transmission and distribution
costs of MHP in Nepal …………161
Table 5.12 Transmission and distribution cost of Grid and MHP in
Nepal ……………. 162
Table 5.13 Average externality in rural energy sector of Nepal
……………………… 165
Table 6.1 Kerosene consumption and GHG emission in 10 different
villages in Nepal 172
Table 6.2 End-uses and their GHG (CO2) emission in Okharbot
before MHP …………172
Table.6.3 Ecological impacts of MHP other than GHG ………………………………
175
Table 6.4 Kerosene and electricity in rural lighting from
ecological perspective …….176
Table 6.5 Ecological benefits in terms of GHG after MHP
installation ……………….. 177
Table 6.6 GHG (CO2) avoidance cost and benefits in Dajungkhola
MHP ……………. 178
Table 6.7 Tariff rate in few community owned MHP for lighting
and end-uses ……….184
Table 6.8 Tariff collection, willingness to pay and behavior
……………………………186
Table 6.9 Employment in MHP survey and manufacturing sector
…………………… 191
Table 6.10 MHP technologies and employment in operation and
management …… 192
Table 6.11 Employment in hydro & electricity related
manufacturing sector in Nepal 193
Table 6.12 Involvement of economically active manpower in
economic sectors …….193
Table 6.13 Employment opportunities created by MHP
implementation ……………. 194
Table 6.14 Investment in the MHP component manufacturing sectors
in Nepal ……….196
Table 6.15 Assets in manufacturing of electromechanical
components in Nepal ……… 196
Table 6.16 Salary and tax paid by MHP manufacturers (in Rs for
FY 2001/02) ……… 197
Table 6.17 Cost of the some MHP projects …………………………………………….
199
Table: 6.18 Analyses of the costs of MHP components
……………………………….. 200
Table 6.19 Exiting scenario of MHP ………………………………………………… . 204
Table 6.20 Employment after the MHP systems in five VDCs in
Nepal ……………… 206
Table 6.21 The financial status of the project …………………………………………
211
Table 6.22 Economic analysis internalising subsidy externalities
………………………213
Table 6.23 Economic analysis internalising pecuniary
externalities ………………… .214
C
Table 5.2 Negative impacts of energy resources and technologies
used in Nepal …… .143
Table 5.3 Scenario of fossil fuel consumption and pricing (FY
2001/2002) ……………145
Table 5.4 Subsidy provided to rural households on kerosene for
lighting only ………. .147
Table 5.5 Typical Household dry-cell batteries used in rural
Nepal …………………….148
Table 5.6 Expenses on dry cell battery by rural households
…………………………….149
Table 5.7 CO2 emission from energy carriers in rural Nepal
………………………… 151
Table 5.8 CO2 emission from unsustainable energy carriers in
rural Nepal. ………… 152
Table 5.9 Average per capita consumption of household in rural
Nepal ………………..155
Table 5.10 Customs duties paid for MHP components import
………………………….159 Table 5.11 The average transmission and distribution
costs of MHP in Nepal …………161
Table 5.12 Transmission and distribution cost of Grid and MHP in
Nepal ……………. 162
Table 5.13 Average externality in rural energy sector of Nepal
……………………… 165
Table 6.1 Kerosene consumption and GHG emission in 10 different
villages in Nepal 172
Table 6.2 End-uses and their GHG (CO2) emission in Okharbot
before MHP …………172
Table.6.3 Ecological impacts of MHP other than GHG ………………………………
175
Table 6.4 Kerosene and electricity in rural lighting from
ecological perspective …….176
Table 6.5 Ecological benefits in terms of GHG after MHP
installation ……………….. 177
Table 6.6 GHG (CO2) avoidance cost and benefits in Dajungkhola
MHP ……………. 178
Table 6.7 Tariff rate in few community owned MHP for lighting
and end-uses ……….184
Table 6.8 Tariff collection, willingness to pay and behavior
……………………………186
Table 6.9 Employment in MHP survey and manufacturing sector
…………………… 191
Table 6.10 MHP technologies and employment in operation and
management …… 192
Table 6.11 Employment in hydro & electricity related
manufacturing sector in Nepal 193
Table 6.12 Involvement of economically active manpower in
economic sectors …….193
Table 6.13 Employment opportunities created by MHP
implementation ……………. 194
Table 6.14 Investment in the MHP component manufacturing sectors
in Nepal ……….196
Table 6.15 Assets in manufacturing of electromechanical
components in Nepal ……… 196
Table 6.16 Salary and tax paid by MHP manufacturers (in Rs for
FY 2001/02) ……… 197
Table 6.17 Cost of the some MHP projects …………………………………………….
199
Table: 6.18 Analyses of the costs of MHP components
……………………………….. 200
Table 6.19 Exiting scenario of MHP ………………………………………………… . 204
Table 6.20 Employment after the MHP systems in five VDCs in
Nepal ……………… 206
Table 6.21 The financial status of the project …………………………………………
211
Table 6.22 Economic analysis internalising subsidy externalities
………………………213
Table 6.23 Economic analysis internalising pecuniary
externalities ………………… .214
C
Table 5.2 Negative impacts of energy resources and technologies
used in Nepal …… .143
Table 5.3 Scenario of fossil fuel consumption and pricing (FY
2001/2002) ……………145
Table 5.4 Subsidy provided to rural households on kerosene for
lighting only ………. .147
Table 5.5 Typical Household dry-cell batteries used in rural
Nepal …………………….148
Table 5.6 Expenses on dry cell battery by rural households
…………………………….149
Table 5.7 CO2 emission from energy carriers in rural Nepal
………………………… 151
Table 5.8 CO2 emission from unsustainable energy carriers in
rural Nepal. ………… 152
Table 5.9 Average per capita consumption of household in rural
Nepal ………………..155
Table 5.10 Customs duties paid for MHP components import
………………………….159 Table 5.11 The average transmission and distribution
costs of MHP in Nepal …………161
Table 5.12 Transmission and distribution cost of Grid and MHP in
Nepal ……………. 162
Table 5.13 Average externality in rural energy sector of Nepal
……………………… 165
Table 6.1 Kerosene consumption and GHG emission in 10 different
villages in Nepal 172
Table 6.2 End-uses and their GHG (CO2) emission in Okharbot
before MHP …………172
Table.6.3 Ecological impacts of MHP other than GHG ………………………………
175
Table 6.4 Kerosene and electricity in rural lighting from
ecological perspective …….176
Table 6.5 Ecological benefits in terms of GHG after MHP
installation ……………….. 177
Table 6.6 GHG (CO2) avoidance cost and benefits in Dajungkhola
MHP ……………. 178
Table 6.7 Tariff rate in few community owned MHP for lighting
and end-uses ……….184
Table 6.8 Tariff collection, willingness to pay and behavior
……………………………186
Table 6.9 Employment in MHP survey and manufacturing sector
…………………… 191
Table 6.10 MHP technologies and employment in operation and
management …… 192
Table 6.11 Employment in hydro & electricity related
manufacturing sector in Nepal 193
Table 6.12 Involvement of economically active manpower in
economic sectors …….193
Table 6.13 Employment opportunities created by MHP
implementation ……………. 194
Table 6.14 Investment in the MHP component manufacturing sectors
in Nepal ……….196
Table 6.15 Assets in manufacturing of electromechanical
components in Nepal ……… 196
Table 6.16 Salary and tax paid by MHP manufacturers (in Rs for
FY 2001/02) ……… 197
Table 6.17 Cost of the some MHP projects …………………………………………….
199
Table: 6.18 Analyses of the costs of MHP components
……………………………….. 200
Table 6.19 Exiting scenario of MHP ………………………………………………… . 204
Table 6.20 Employment after the MHP systems in five VDCs in
Nepal ……………… 206
Table 6.21 The financial status of the project …………………………………………
211
Table 6.22 Economic analysis internalising subsidy externalities
………………………213
Table 6.23 Economic analysis internalising pecuniary
externalities ………………… .214
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D
Table 6.24 Economic analysis from community’s perspective
(subsidy externalities) 216
Table 6.25Economic analysis from community ‘s perspective
(pecuniary externalities) 216
Table 6.26 Economic benefits due to saving of fossil fuels in
the end-use sector …. 217
Table 6.27 Financial indicators of MHPs in Myagdi district
………………………. .219
Table 6.28 Agroprocessing done by different methods and
technologies in Nepal …. 222
Table 6.29 Community voluntary contribution for the installation
of MHP ………… 223
Table 6.30 Quality of lighting from electricity bulbs and
kerosene lamps ………….. 224
Table 6.31 Comparison of pollutions from kerosene and electric
bulb ……………… 225
Table 6.32 Agroprocessing technologies in the villages after MHP
projects ……… …227 Table 6.33 Women’s employment after the community
MHP systems in few VDCs . ..229
Table 6.34 Distribution of bulbs according subscription in
Okharbot VDC …………. .231
Table 6.35 Patterns of electricity consumption in Pinthali VDC
of Kavre district … ….232
Table 6.36 Financial indicators of Dajungkhola MHP with
fluctuating kerosene price ..238
Table 7.1 Production of crops in the hilly and mountainous areas
of Nepal ……… ...244
Table 7.2 Agroprocessing energy required to the hills &
mountains MHP areas ………244
Table 7.3 Utilization of plant capacity in the community owned
MHP plant ………….247
Table 7.4 Utilization of plant capacity in community owned MHP
in scenario I …….. 248
Table 7.5 MHP components: locally manufactured and
export/imported …………… ..253
Table 7.6 Per capita income, HDI and lighting expenses
…………………………… …262
Table 7.7 Average expenses on lighting before and after MHP/year
………………… 264
Table 7.8 CDM/CERs value needed for the projects to be
financially feasible ……… .274
Table 7.9 Sensitivity analysis with different scenarios and
CDM/CERs values ……… 275
Table 7.10 Increment of electricity tariff to make project
feasible …………………….. 276
Table 7.11 Financial indicators of few MHPs after CDM/CERs
……………………… .278
Table 7.12 Financial indicators of MHPs after CDM/CERs (If
people pay as before) …278
Table 7.13 Financial indicators of few MHPs after CDM/CERs and
Subsidy ………….280
Table 7.14 Impacts of maintaining status quo of kerosene, diesel
and battery use …… 290
Table 8.1 Sustainability matrix of MHP project ………………………………………
..299
D
Table 6.24 Economic analysis from community’s perspective
(subsidy externalities) 216
Table 6.25Economic analysis from community ‘s perspective
(pecuniary externalities) 216
Table 6.26 Economic benefits due to saving of fossil fuels in
the end-use sector …. 217
Table 6.27 Financial indicators of MHPs in Myagdi district
………………………. .219
Table 6.28 Agroprocessing done by different methods and
technologies in Nepal …. 222
Table 6.29 Community voluntary contribution for the installation
of MHP ………… 223
Table 6.30 Quality of lighting from electricity bulbs and
kerosene lamps ………….. 224
Table 6.31 Comparison of pollutions from kerosene and electric
bulb ……………… 225
Table 6.32 Agroprocessing technologies in the villages after MHP
projects ……… …227 Table 6.33 Women’s employment after the community
MHP systems in few VDCs . ..229
Table 6.34 Distribution of bulbs according subscription in
Okharbot VDC …………. .231
Table 6.35 Patterns of electricity consumption in Pinthali VDC
of Kavre district … ….232
Table 6.36 Financial indicators of Dajungkhola MHP with
fluctuating kerosene price ..238
Table 7.1 Production of crops in the hilly and mountainous areas
of Nepal ……… ...244
Table 7.2 Agroprocessing energy required to the hills &
mountains MHP areas ………244
Table 7.3 Utilization of plant capacity in the community owned
MHP plant ………….247
Table 7.4 Utilization of plant capacity in community owned MHP
in scenario I …….. 248
Table 7.5 MHP components: locally manufactured and
export/imported …………… ..253
Table 7.6 Per capita income, HDI and lighting expenses
…………………………… …262
Table 7.7 Average expenses on lighting before and after MHP/year
………………… 264
Table 7.8 CDM/CERs value needed for the projects to be
financially feasible ……… .274
Table 7.9 Sensitivity analysis with different scenarios and
CDM/CERs values ……… 275
Table 7.10 Increment of electricity tariff to make project
feasible …………………….. 276
Table 7.11 Financial indicators of few MHPs after CDM/CERs
……………………… .278
Table 7.12 Financial indicators of MHPs after CDM/CERs (If
people pay as before) …278
Table 7.13 Financial indicators of few MHPs after CDM/CERs and
Subsidy ………….280
Table 7.14 Impacts of maintaining status quo of kerosene, diesel
and battery use …… 290
Table 8.1 Sustainability matrix of MHP project ………………………………………
..299
D
Table 6.24 Economic analysis from community’s perspective
(subsidy externalities) 216
Table 6.25Economic analysis from community ‘s perspective
(pecuniary externalities) 216
Table 6.26 Economic benefits due to saving of fossil fuels in
the end-use sector …. 217
Table 6.27 Financial indicators of MHPs in Myagdi district
………………………. .219
Table 6.28 Agroprocessing done by different methods and
technologies in Nepal …. 222
Table 6.29 Community voluntary contribution for the instal