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1Jalashak
hnzlQmJalashak
Vol. No. 13Year BS 2071 (2014 AD)
EditorialTime has to come for Micro Hydro to be a common
terminology that is to call Micro Hydro as nations pride,
recognizing Nepals expertise in micro hydropower technology, its
application of policies and regulations developed and implemented
have been successful in gaining excellence. This needs to have
happened some time ago, as the stakeholders - the public sector,
the private sector and communities are supporting each other. Such
obstacles have been sidelined in the present scenario for last few
years. Micro hydro development, as such, has been an inuential
instrument.
As a matter of fact, the expertise achieved by Nepal in Micro
Hydro by putting immense of efforts by techno-entrepreneurs and
technocrats have been ranked greater in the South Asia region. It
has gained wider reputation beyond the region as well. Shares of
credit go to the brilliant public sector who brought in policies,
procedures, regulations and funding supports and enthusiastic
private sector who performed in all technical aspects efciently -
survey and design, manufacturing of turbines, penstock pipes and
hydro-mechanical parts, governing equipments etc. and supply,
construction and installation and after sales service.
Fifty ve districts had seen stay alone electricity facility by
micro hydro projects for the betterment of the people living in the
remote and semi-remote settlements. Thus, micro hydro has been
placed as a vital instrument when issues rise on electricity, rural
energy, alternative energy, poverty alleviation, social justice in
the country. Planners and economists appreciate the features of
micro hydro in this respect.
Database reports say that some 3,000 micro hydropower plants
have been established in the country so far with cumulative
capacity to produce 32,000 kW of electricity to access 350,000
households have accessed to electricity for lighting at least. The
gure expected jump to a greater scale by end mid-July, 2017,
according to the plans the government nodal agency is exercising
for. The private sector is extending whole hearted support to this
mission.
Performance in micro hydro in Nepal was initiated half a century
ago with the aim to ease out feeds for shes at a sh pond in
Godawari Garden. However, electrication by water mills with
technical improvement was one another landmark. Agro-processing
facility in addition to electrication by improved water mill was
also recognized as a step ahead.
Introduction of Peltric set, designed for electrication of a few
household was proved an exclusive product of Nepal to be used by
small volume of water from pretty much height and channelized
through pipe to hit the Pelton runners and generate electricity by
an attached generator was successful and much popular even
today.
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Editor
Krishna Prasad Devkota
Advisor
Surendra Bhakta Mathema
Consulng Editor
Purna N. Ranjitkar
Markeng Management
Sarmila Rayamajhi (Khadka)
Distribuon
Padam Raj Joshi
Published by
Nepal Micro Hydropower Development AssociaonShahi Shukra Marg -
131, Teku, KMC - 12, Kathmandu, Nepal
Phone: 977 - 1 - 4230678, 977 - 1 - 4231024Email :
[email protected], [email protected]
website : microhydro.org.np
Printed at Creave Press, Kathmandu Phone : 977-1-4420053/54
Producing Pelton turbines and Crossow turbines for Micro Hydro
for all situations have been a tradition of the country. On top of
that Nepal has been providing turbines and other products along
with technical services to other countries.
Nepal has hosted jamborees of Micro Hydro personnel in the past,
a few in number but greater in terms of outcome. Non Aligned
Countries Science & Technology Centre organized international
workshop on Role of Micro Hydel for Developing Countries conducted
by Nepal Academy of Science & Technology with support of
Alternative Energy Promotion Centre, Regional Centre for Excellence
in Micro Hydro and Nepal Micro Hydropower Development Association
was a mentionable event. This event was highly successful in
exposing of Nepals expertise the micro hydro world.
To recall, in this context, the international level micro hydro
training programme conducted in 1993 in Nepal was an opening
landmark. Likwise, a batch of Afghan engineers come to Nepal to
learn on micro hydro later on some other occasion was also much
talked in micro hydro sector.
Regional Centre of Execellence in Micro Hydro (RCEMH),
established by USAID to work jointly with Alternative Energy
Promotion Centre has take initiative to share knowledge and skill
in Micro Hydro Nepal has gained by experience with the countries of
the rgiona and even beyond is an appreciable step. The
Iinternational event in Kathmandu in Novemebr this year will be a
bright land mark in the scroe.
In context to Jalashakti, the Micro Hydro Magazine published by
NMHDA for around two decades, this time in English has been focused
at sharing Nepals information on Micro Hydro. This issue is
expected to portray Nepal image abroad as well.
Wish all the best to all.
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3Jalashak
Regional Centre of Excellence in Micro Hydro (RCEMH) established
in Nepal with support of USAID as a joint effort with Alternative
Energy Promotion Centre (AEPC) is readying an international
gathering in collaboration with Nepal Micro Hydropower Development
Association (NMHDA) put efforts to share Nepals knowledge and
experience in micro hydro with the counterparts from various
countries of South Asia region and
beyond. RCEMH and NMHDA, thus, organizing Exhibition cum
International Workshop on Micro Hydro in Kathmandu, Nepal during
11th till 16th of November 2014. This is also an occasion for RCEMH
to showcase its functionality and service offerings, and
demonstrate achievement in development of micro hydro in Nepal.
Likewise, NMHDA is elaborating knowledge, skill and experience
accumulated by the private sector
Exhibition cum International Workshop on Micro Hydro
an event to exchange of idea and experience
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entrepreneurs who played the vital role in successful
implementation of micro hydro in Nepal. The spirit of event is also
added with elaboration on state role in successful implementation
with effective intervention of various policies and regulations
that AEPC practiced as the state agency responsible for development
and promotion of alternative energy in Nepal.
Thus, the event is aimed at exposure to the latest developments
in micro hydropower in Nepal, highlight the role of micro
hydropower in poverty remediation and rural electrication in Nepal,
discuss on the markets for micro hydropower, how can it be
established and how can it lead to investments and associated
economic activities in rural areas, know-how to promote development
of the micro hydropower sector, on-site knowledge sharing,
personal, one to one interaction with Micro Hydro experts, design
consultants, manufacturers, installers, community representatives,
trainers involved in the eld of micro hydropower and so on.
The organizers are set to mobilize experts who had provided
their services abroad and have plenty of knowledge and skill will
deliver the content and to lead the participants for the
fruitfulness of the event. The one day exhibition at the Nepal
Academy of Science & Technology (NAST) premises will feature
Nepals workmanship in micro hydro in phase wise watermill, improved
water mill, Peltric set and accessories, Crossow and Pelton
turbines and accessories, innovated Crossow Turbine and Pelton
Turbine, the Francis turbine made in Nepal, Electronic Load
controller and Transformers. Elaboration research and application
on mini grid and grid connection in Nepals context will also be
featured. Likewise, various information regarding aims, activities
and achievement achieved by efforts of public sector and private
sectors in developing micro hydro in Nepal will also be part of
exposition.
The site visit for inspecting the micro hydropower plant is one
of the fascinating parts of Exhibition cum International Workshop
on Micro Hydro. The site selected for the purpose in rich in
technicality, end-uses and management. It throws idea on the best
of uses of micro hydro plant and satisfaction
to all stakeholders the government, development partners, local
community and even private sector. Malekhu Khola Micro Hydropower
Project (26 kW), Mahadevsthan in Dhading district therefore has
been selected as an ideal site to learn by seeing.
Exhibition cum International Workshop on Micro Hydro has been
designed for MH developers, researchers, engineers, entrepreneurs,
village and district community representatives and policy makers,
with the relevant background and active involvement in the areas
related to Micro Hydropower. A total of 25 participants are joining
in the workshop training program. Out of the total, 20 participants
will be from the region, whereas 5 participants will be from Nepal
who will facilitate the international participants to understand
the local context.
The programme offers a suite of services ranging across the full
micro hydro value chain. It will present case studies; showcase
emerging technologies, designs, and best practices for development,
implementation and management of micro hydro systems; share
techniques for maintaining quality and meeting performance
standards; advises on methods for social and user committee
mobilization; and serves the capacity building needs of the micro
hydro sector.
The 6-day exhibition cum workshop will feature experienced micro
hydro power developers and implementers, manufacturers and
policymakers. Developers, researchers, engineers, entrepreneurs,
village and district community representatives and policymakers who
work in the micro hydro sector or wish to do so will benet from
attending the workshop.
The experts and planners from Afghanistan, Bangladesh, Bhutan,
India, Malaysia, Myanmar and Pakistan are participating in the
event who will also cast the Micro hydro scenario in their
countries and exchange knowledge and skills on Micro Hydro.
Building cooperation for mutual benet among the participating
countries will be another vital outcome of the Exhibition cum
International Workshop on Micro Hydro.
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Bearing distinct character in Micro Hydro, Nepal has been
attracting neighbours to tell a lot on this simple but signicant
technology to provide electricity access to a lot of people who
might not see electrical light and use any appliance at his own
home. Micro hydro has been a tool for them availed by native
techno-entrepreneurs with support of the government and development
partners.
The seminar workshops and symposiums organized in Nepal and
abroad also have been the platforms for Nepali experts to share
knowledge and skills with counterparts. A few workshops and
seminars organized in Nepal also had been highly successful in
terms of knowledge sharing. International Workshop on Role of Micro
Hydel for Developing Countries is one such successful event
organized in Nepal in April, 2013.
The three day jamboree of 22 representatives from
17 countries (Afghanistan, Bhutan, India, Indonesia, Iraq,
Malawi, Malaysia, Mauritius, Myanmar, Pakistan, South Africa, Sri
Lanka, Uganda, Vietnam, Zambia and Zimbabwe) and around 25 experts,
academicians and micro hydro professionals from Nepal took part in
discussing on the methodologies, government initiatives and
experiences of professionals. The participants agreed for the
exchange of knowledge, skill and experience so as micro hydropower
be more effective and accessible to the target groups.
Micro hydro, the technology for small sized hydropower projects
of upto 100 kW, is not only to bring light into people live in the
off grid locality but also give energy and water security to
population, make people economically more stable, reduce the
physical work load for women, enable the mechanization of rural
industries and lessen environmental damages from cutting wood
for
Role of Micro Hydel for Developing Countries
Exchange of Experience on Micro Hydro
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fuel and heat or harming aquatic fauna and ora. Moreover, no
waste or by-products are produced unlike the energy generation
based on fossil sources. Many countries have begun to embrace micro
hydro technology as a viable and alternative source of energy,
especially for remote and rural areas. There are different
replicable success stories on micro hydro based projects in many
developing countries. In order to explore wider prospects and share
the best practices on micro hydro, the centre for Science and
Technology of Non-Aligned and Other Developing Countries (NAM
S&T Centre) and Nepal Academy of Science and Technology (NAST)
in collaboration with Alternative energy Promotion Centre (AEPC)
organized the international workshop.
As the event aimed at the overall objective to demonstrate micro
hydro technology, its implementation and sharing the success
stories to explore replication of successful models among the
developing countries. The workshop provided a valuable platform for
sharing of knowledge, transfer of technology and capacity building,
coordination and networking among experts and professionals of the
developing countries. The workshop was successful to deliberate on
various aspects of micro hydro such as the potential and benets of
micro and mini hydro; micro hydro turbines and their head range;
site selection; micro hydro installation, commissioning and
maintenance; integrated approaches with other forms of
non-conventional sources of energy; ecological implications;
energy-social-employment correlations; policy and planning issues,
training etc.
The Centre for Science & Technology of the Non-Aligned and
Other Developing Countries is an international organization with a
membership of 46 countries spread over Asia, Africa, Middle East
and Latin America. The centre was set up in 1989 in New Delhi
(India) in pursuance of recommendations of various NAM Summit
meetings for the promotion of South-South cooperation in science
and technology is one of the organizers. Likewise, Nepal Academy of
Science and Technology (NAST), established in 1982 with the main
objective of the advancement of science and technology
for overall development of the country is also organizer of the
workshop while Alternative Energy Promotion Centre, established by
the Government of Nepal in 1996 as a focal agency for the promotion
and development of renewable energy technologies in the country is
active supporter of the event. AEPC, under the Ministry of Science
& Technology and Environment, extend technical and nancial
supports to community level for easier access to renewable energy,
enhance technical capabilities to non-governmental organization and
private sector involved in renewable energy sector for target
people. It also channelizes the cooperation of donor countries,
agencies and nancial institutions for the renewable energy for
rural people.
The Regional Centre of Excellence in Micro Hydro (RCEMH), during
the discussions, offered itself as a common platform for developing
countries for standardization of micro and small hydropower system
and its components, generating and sharing relevant database as
well as knowledge, networking among the professionals, capacity
building and carrying out collaborative research for enhancement of
efciency, reduction of cost, expansion of technological domains,
and identication of strategy for up-scaling, which was greatly
appreciated by the participants.
Nepal Micro Hydropower Development Association (NMHDA) extended
supports for the successful organization of the international
event. WECAN (Water and Energy Consultants Association Nepal),
Tribhuwan University - Centre for Energy Studies, Kathmandu
University also took part to conduct the event.
A day-long eld visit to two micro hydropower plants was
organized for foreign participants at Karamdanda Micro Hydropower
Project (17 kW) located at BP Highway in Kavre and Chhange Khola
Micro Hydropower Project (16 kW) at Dumja, Sindhuli. The
participants also visited the Centre for Excellence in Production
& Transportation of Electrical Energy (CEPTE/KU), Department of
Civil & Geomatics Engineering, Kathmandu University, Dhulikhel
where a mini-grid is currently in its prototype design stage.
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Micro-Hydro in Nepal A look back and ahead
By: Tilak Kandangwa and Rana Bahadur Thapa
Micro-Hydro sector in Nepal has come a long way since its
inception during the 60s by Agricultural Development Bank. The
sector did not ourish much during the period from 60s to 90s as
this period saw fewer number of micro-hydro installations. However,
during the middle of 90s, the sector picked up its pace with
involvement of some serious donors and government commitment.
Alternative Energy Promotion Centre (AEPC), a government autonomous
body mandated to promote renewable energy in Nepal, also came into
force during that time. As a result, fuelled by AEPCs leading role
and donors resources, the country saw increased installation of
micro-hydro systems. Thousands of rural households, who had never
dreamed of electricity, were electried. This golden era of
micro-hydro development started some 15 years ago and over the
years this sector has enjoyed considerable success. Will this
success continue? This is a question worth looking into.
Before looking into this question, lets look at the three
scenarios envisioned during the rapid growth of micro-hydro
installations.
Firstly, it was envisioned that the Government and donor
commitment would increase over time. In the long run, the
Government contribution would outpace that of donors. Secondly, the
community-based model of micro-hydro promotion would provide a
sound platform for sustainable operation of micro-hydro schemes.
All electried
households would get subsidy from Government; own that
particular micro-hydro scheme; would share resources for its
construction; and generate tariff for its operation and
maintenance. Lastly, it was pictured that the private sector would
grow proportionately to the growth in micro-hydro demands. Private
sector in micro-hydro includes turbine manufacturers, electrical
and electronic equipment manufacturers, surveyors, designers and
installers. Increase in volume of transaction would expand capacity
of existing manufacturing companies and new companies will come up
for designing, installing as well as manufacturing parts of
micro-hydro schemes.
The rst envisioned scenario holds true even after 15 years. The
government, at the moment, is facing increasing pressure to
electrify rural households. Electrication through Grid extension is
a costly affair. Furthermore, rural electrication cannot rely only
on the generated power of future to be
Mr. Kandangwa and Mr. Thapa, article contributors
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constructed big hydro plants as these powers, most likely, would
prefer going to the power hungry urban areas rather than the rural
households. Micro-hydro will, therefore, continue to remain one of
the alternative sources for electrifying rural households. Due to
this, the Government contribution has increased. Donor commitment
is growing as well. The international commitment on green house gas
reduction and the big discourse of climate change would likely
increase donor commitment in this sector for few more years to
come.
The second pictured scenario did not keep its promise fully.
Over the years, experience with community managed model shows that
it is not effective over the full life cycle of micro-hydro scheme.
This model is most effective during the construction phase of the
project. During this phase getting electricity is one common
incentive among the households that makes this model work. Every
household wants electricity, so every household contribute to their
best. However, once this incentive is achieved, the community does
not have any further incentives derivable from the plant. As a
result, The plant is owned by all, at the same time owned by none.
The community ownership model, most often, does not seem to work
during the operation phase, hence, posing a serious question of
sustainability.
The third and the last scenario also have not been realized
fully. There has been signicant growth in number of consulting
companies and installers. However, the manufacturing sector did not
grow as expected. It would not be unfair to say that the number of
manufacturers remained practically constant in the last 15 years.
Among many, some of the claimed reasons hindering growth are (a)
There is not enough demand to sustain a manufacturing house (b)
There is lack of upfront capital (c) Long-term security of
investment is not guaranteed.
Now, we come back to our question: Will this success continue?
Success will critically depend on how well the second and the third
scenario will be addressed.
Many micro-hydro schemes that are under operation are
underperforming; and in the core of the problem lay ownership
issues. Ownership of all and at the same time ownership of none is
a classic issue faced by public energy utilities all over the
world. The same applies here as well. Since the future of new
micro-hydro scheme directly depends on the successful continuation
of old ones, this problem needs to be addressed as soon as
possible. Alternative ownership/management models need to be
explored for older schemes. For example Small business holders
whose business directly depends on electricity would have the
highest incentive in keeping the micro hydro plant under operation.
Incentive of running business would naturally be more than
incentive of lighting, especially in cases where alternative
household lighting solutions like solar is available. Lease out
models to such small business holders/group of business holders
should be tried wherever applicable.
Manufacturing companies usually have some important business
questions. The most important being the long-term security of their
investment, at least for a horizon of 10 to 15 years. Many feel
that micro-hydro demands are decreasing and that they may not be
able to recoup their investment. In addition, for them, long-term
availability of subsidy is also a big uncertainty. In order to
allay fears of private sector, the sector needs to demonstrate that
(a) there is signicant amount of demands for a practical period (b)
there is guaranteed government and donor resources for a certain
period (c) nancing tools/nancial instruments are available for the
private sector in order to recoup their investments and prots on
time. Proper planning in these concerns would greatly facilitate
the private sectors in making informed decision on possible
investments on manufacturing houses.
Therefore, the continuation of success of micro-hydro sector
will depend on how well the sector can address and manage these
scenarios in future.
(Views expressed here are not necessarily the views of
the organization they work with)
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Hydropower is one of the renewable energy sources. In Nepal,
electricity generation is dominated by Hydropower. Experts estimate
that this mountain dominated country has a potential of 83,000 MW
to produce by various rivers owing from Himalayas to south and meet
Bay of Bengal owing through Ganges plain in India. Out of the total
potential 42,000 MW of electricity have been considered as
commercially viable. Currently, Nepal has been able to produce 750
MW of electricity as hydropower and connected to INPS to feed the
urban areas.
The national grid connection could not have been possible to
stretch of transmission to the settlements at remote hills and
mountains of the country as it is nancially and technically not
feasible. As such, most of the rural people in Nepal are getting
electricity through Renewable and Alternative Energy Technologies
such as Pico hydro, Micro/Mini hydro, IWM and Solar PV systems
etc.
Currently, 40 MW of electricity is generating by Pico hydro (up
to 10 kW), Micro hydro (greater than 10 kW but up to 100 kW) and
Mini hydro (greater than 100 kW but up to 1000 kW), and providing
electricity facility to
350,000 rural households.
The Pharping Powerhouse was established in Nepal in 1911. This
historical plant was installed with British support. This is
standing as second hydropower plant in South Asia. Likewise, the
rst Micro Hydropower Plant with 5 kW Propeller turbine was
established in 1962 in Godawari Garden, Lalitpur.
Micro Hydropower in Nepal
MH Plants started to establish for agro-processing and
electrication at off grid locations around
Micro Hydro in Nepal: At a glance
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mid-1980s. Agricultural Development Bank Ltd. had facilitated to
channelize government fund as subsidy to establish MHPs in rural
locations around the decade of 1985-1995. ITDG/N, USAID, UMN,
ICIMOD, SDC and ACAP had extended support to promote MH in
Nepal.
The private sector had put enough efforts in shaping excellence
in micro hydro by carrying out all assignments related to
development of micro hydro. They proved Nepals efciency in survey
and design, manufacturing of turbines and other hydro-mechanical
parts, installation and commissioning and providing services after
sales.
Balaju Yantra Shala Pvt. Ltd., established in 1962, pioneered in
turbine manufacturing in Nepal. Likewise, Nepal Yantra Shala
Energy, and Thapa Engineering Industry followed in 1976 and 1981
respectively.
Mr. Akkal Man Nakarmi, late Mr. Shyam Raj Pradhan, Mr. Dewan
Singh Thapa had contributed signicantly to technical development of
MH. Mr. Krishna Bahadur Nakarmi also had contributed extensively in
turbine designs. The fore mentioned had been successful in
supplying turbines and other parts for MHPs to various countries.
Thus, Balaju Yantra Shala Pvt. Ltd., Kathmandu Metal Industry Pvt.
Ltd., Nepal Yantra Shala Energy, Thapa Engineering Industry Pvt.
Ltd. have been mentioned as pioneering in MH in Nepal and even
abroad.
Private entrepreneurship in survey and design, manufacturing and
fabrication of turbine, penstock pipe and other parts and
construction and installation grew up gradually. There were 9 such
companies / rms come into action till end of 1992 at the time of
establishment of NMHDA.
Alternative Energy Promotion Centre (AEPC), a government
institution established on November 3, 1996 under the then Ministry
of Science and Technology with the objective of developing and
promoting renewable/alternative energy technologies in Nepal also
has been successful in proving nancial supports as subsidy and
technical supports and implement the regulation adopted by
the government for the promotion of alternative energy
sources.
UNDP and The WB funded Rural Energy Development Program (REDP)
was rst introduced to ve districts and successfully carried out in
55 districts. Later, continued with the name of Renewable Energy
for Rural Livelihood (RERL) since January 2012.
Energy Sector Assistance Programme (ESAP) rst and second phase
were successful to deliver alternative energy access to target
groups. ESAP with ve years each phase was ended at mid July 2012.
Danish and Norwegian governments extended supports to both phases
of ESAP.
Alternative Energy Promotion Centre (AEPC) has activated
National Rural and Renewable Energy Programme (NRREP) with
effective from 16 July, 2012 with a single programme modality for
development and promotion of alternative energy in the remote
villages of Nepal. It has an extensive aims to generating 25 Mega
Watt of electricity through pico, micro and mini hydropower plants
during ve year period of NRREP. Solar, Bio-gas, Bio-mass and
improved cooking stoves are also targeted for extensive growth.
Governments of Denmark and Norway, DFID (UK), kfW (Germany), GiZ
(Germany), SNV/Netherlands, The WB, ADB, UNDP, UNCDF are supporting
fund to GoN for NRREP.
Around 80 private companies/ rms are working for the development
of MH in Nepal, according to PQ List of AEPC/NRREP (mid July
2014).
Poverty Alleviation Fund, Kadoori and DolIDAR also take
initiatives in establishing MHPs for the benet of people living in
remote hills and mountains.
The success in MH technology and bearing ability to share
knowledge and skill to other countries, USAID has established
Regional Centre for Excellence in Micro Hydro (RCEMH) in Nepal. The
RCEMH is planning to create better access to the aspirants in the
region and beyond.
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Background
In its 50 years journey of small water power generation system
travelled from Ghatta - Water Mills-Multi Purpose Power Unit (MPPU)
- Pico hydro - Micro hydro - Mini hydro - Mini grid - grid
connected micro/mini hydro. During its course of development,
different delivery modalities and nancial support models have been
tried out. Judging from the perspective of deployment, the
technology development modalities were by fairly successful. In
period of thirty years, around 30 MW of electricity is produced
from off-grid pico/micro/mini hydro projects implemented through
government and non-government projects and programmes providing
lights to more than one million rural people. But, the time has
proved that this pace of development of off-grid electrication will
not serve the people aspiration and meet the need of the
electricity in the changed context of social and technological
development.
Micro hydro development path actually travelled different
ownership models: from mill owner developing mills (private
entrepreneur led) to micro hydro user committees and micro hydro
co-operative. The private sector ownership has virtually stopped
from 2006 when RE policy 2006 scrapped subsidy to private
developer. The private entrepreneur and community led models of
construction and operation of micro hydro schemes have their own
merits and demerits. In the recent context of socio/economic and
demographic changes in the rural areas, it seems that there is
shortage of volunteers to lead community micro
hydro development process which takes, even in its normal
course, 2-3 years to complete it. The operation and maintenance of
MH project for another 15 years of its useful life has separate
story to tell. Therefore, the community led model1 has shown its
serious limitations for future scaling up of micro hydro technology
to provide services in rural Nepal. This has again made it
mandatory to review the micro hydro development modality to t in
the changed context. It seems imperative to vouch for some sort of
new MHP implementation model where private entrepreneurs role
cleared up and subsidy policy should not curtail the private sector
led modal as well.
Issues in Existing Community Led Model
Longer implementation cycle
Following are the main areas where the micro hydro development
cycle eats up time and resources,
Time taking from demand to approval process 1year
No time card, low quality of DFS, slow exchange of feedbacks
comments among stakeholders etc
Bidding process and documents for nal approval 1 year.
No proper bidding process, interest group play, time for
documentation, no time pressure felt by parties.
Financing arrangement and construction time : 1-2 years
Review of Micro Hydro Implementation Modality for Rural
Electrication
By Madhusudhan Adhikari
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12 Jalashak
Big funds to be arranged by user committee, ination and time
value of money not considered, poor construction supervision,
seasonal nature of construction and poor project management
skills.
Unreasonable time for testing commissioning and power output
verication 1 year.
Companies taking it lightly, RSC not following up, AEPC waiting
it to come, issues of low power output, ow seasonal issues etc.
Difculties to arrange nance timely
Micro hydro construction demand reasonably high upfront
construction cost, the government has mode provision of investment
subsidy through Alternative Energy Promotion Center (AEPC), but the
subsidy covers only around 50% of the total cost of construction.
It is very difcult for user committee to arrange remaining of the
50% and they have to move from door to door of the potential
funding government and non-government agencies which takes long
time and consume large part of the funds collected. This is the
most time consuming issue if someone tries genuinely also.
Moreover, now a day it has also started to become an opportunity to
some of the user committee ofcials to collect funds from all
possible sources and misuse it.
The table below shows indicative funding and time needed to
collect it,
Source of Funds % in total project
cost
Time to get funds
GoN (AEPC) Subsidy 40-50% 2 year
Public funds (DDC, VDC, PAF, ING/Os etc.)
40-30% 2-3 years
Users contribution cash and kind
15-20% 1-2 years
Loan very few cases
2-3 years
Reasonably long time is needed to collect the required fund from
difference sources, as they provide funds only when it is surplus
from other activities and in the continuous effort/lobby from user
committee. Moreover, due to ination, time value of money and loss
due to time (wastage of cement, steel, or completed civil work
swept out by landslide slide or rain etc) the nancial efciency
of the project is very low. Though the modality foresees that
micro hydro developing communities should take loan from nancing
institution but it has been not very easy, the nancing institution
demand for the collateral which user committee cannot provide
easily.
Unmatched High cost and poor quality of construction
The micro hydro installing companies argue that the time to
complete construction, handover to user community and collect the
full payment of a micro hydro project takes 3 - 4 years, the
installation companies need to adjust tender prices at the time of
bidding to cover ination, exchange risk and possible bad debt from
communities. This is one primary reason for the high cost of micro
hydro equipment in Nepal. According to them those new and
inexperience companies who do not structure these risks in their
initial bidding will suffer loss and may try to deliver lower
quality equipment and services. This story is partly true but main
part of the cost incurs in the lost time and in efcient project
management skills of the installing company and the user committee.
There is not clear cut responsibility between installing companies,
regional service center (RSC) technicians and project developing
user committee.
Possible New and Revised Implementation Modalities
Separating the construction works between user committee and
Installation Company
In this model, it is envisaged that after conditional approval
of detail feasibility study (DFS) from technical review committee
(TRC), community from their cash and kind contribution and support
from DDC and department of irrigation should take the
responsibility complete civil works. When they come with the
objective evidence of 75% completion of civil works then AEPC
should give the nal approval of subsidy and start the selection of
Installation Company. The whole responsibility of completing
hydro
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13Jalashak
mechanical work and electro-mechanical works like Penstock, PH
equipment and all transmission work of the project should be given
to Installation Company with xed time and budget system (fully
covered from subsidy). The remaining of distribution of electricity
produced will be done by villagers with help of DDC, VDCs, PAF.
Here AEPC have to wait the user committee to complete civil works
by putting their genuine effort within a specied time to get the
subsidy otherwise the project should be dropped in the initial
stage not have more problems later. This reduces the risks in the
part of the installation companies but there could be only few
communities which can come forward with commitment of civil
works.
Giving Installation Company complete full construction the
project
After approval of the micro hydro project from
TRC, the user committee (together with AEPC/DDEU/RSC) has rst to
work to assure the funds required for the project from AEPC
subsidy, users contribution, DDC, VDCs, PAF etc. before tendering
the project. Once the funds for the project is secured then the nal
approval is given and AEPC will select a installation company and
give full responsibilities to construct the project in the xed time
and cost basis to complete the construction and handover to the
user community. For this model the existing subsidy policy of
providing only 40-50% of total project cost in subsidy is not
possible, this demand higher percentage of subsidy lets say around
75 to 80% ( which is actually in not strange as APEC from last
three year is giving 70-80% subsidy (including additional) even in
the inated cost).
The analysis of nancing mixed of the completed micro hydro
projects shows that in the present nancing mechanism also the
total
Villagers carrying turbine to project site
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14 Jalashak
public funds (subsidy, support of DDC, VDC, PAF, Sansadakosh,
direct support from ministry of nance etc.) is around 80-85% of
total project cost in most of cases. In this model, AEPC (RSC or
DDU) will supervise the installing company together with user
committee to ensure the quality of construction as per AEPC
standard and to complete project within given budget and
timeframe.
Private sector to take complete responsibilities to construct
and run project
This could be a derivative of micro utility model, where AEPC
subsidy is made available to private developer also. Then the
interested private sector developer will carry out the project work
in turnkey basis from survey, design, construction and operation
and maintenance of project (project period 10-15 years). Detail
contracting arrangement could be worked out to make binding to
company to construct micro hydro
projects as per the AEPC technical guidelines and standard and
run without major power stoppage for project life time. The
community and private company will agree on a tariff structure and
user committee will ensure that every member of the community will
pay their tariff in time and will also support the developer to
build and run project. The local government VDC or DDC will play
the role of patron to protect the interest of the private company
as well of the local user through a properly agreed contract
between both parties. In the derivate of it, the government subsidy
could be given as the difference between the levelised cost of
electricity of the micro hydro plant (in kWh basis) and normal
tariff of
Nepal electricity authority (NEA) which is paid by other
electricity users in country. This model will be very cost efcient
and timely because with private entrepreneur the decision making
and nancing will be faster and may get loan easily from nancing
institutions in the project nancing concept. However, attracting
private sector investment demands liberal state policy in subsidy
so that investor will get rational prot for the risk taken and the
co-operation of user and local government in the construction and
operation of the micro utility in the remote rural areas.
Conclusions
In the conclusion, it is evident that the exiting modality of
micro hydro project implementation is lengthy, costly, resulting
poor quality output and not nancial efcient, so there is no for
improvement. The main challenges are to have quality of the
preparation of the projects, faster arrangement of the nancing,
good quality and timely construction. The need to build the
capacity of local communities in the proper use of electricity
produced and operation and maintenance management of micro hydro
plant for long term economic benets of the rural and remote
people.
The present modality demand big nancing burden is shouldered to
community which is practically difcult to achieve. Similarly, there
is lacking clearing up responsibility for the overall project
management. Hence, there is a need to revise the existing
implementation and introduce some new and efcient modalities for
up-scaled implementation of micro hydro technology. Engagement of
private sector entrepreneurs in the development and management
electricity as micro energy utility may open wider spectrum of
energy enterprising which will lower the responsibility of state to
provide electricity to off grid areas and denitely will gain cost
efciency as well. For all this government should make enabling
environment for rural electrication through micro hydro and user
should be committed to pay for the modern services.
Written by
Mr. MADHUSUDHAN ADHIKARI (MPhil, MBA , BE )
National Advisor, Community Electrication Component, National
Rural and Renewable
Energy Programme, Alternative Energy Promotion Center
Renewable Energy Expert having total of 22 years experiences
managing programmes and projects in various renewable energy
technologies in private, INGO, and government agencies.
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Micro hydropower technology for mechanical power and electrical
power generation is a technology that has matured substantially
over the past 50 years. Many governments in South Asia, South East
Asia and Africa and many other regions in the world have begun to
embrace the technology as a viable energy option, especially for
remote and rural areas, within a larger renewable energy portfolio
driven strategy. In Nepal, Alternative Energy Promotion Centre
(AEPC) established in 1996 as a central nodal agency to promote and
disseminate alternative energy, is a body of experience built up
around conceptualization till nancing and implementing more than
1,000 micro-hydro installations so far.
With a view of supporting disseminate extensive knowledge and
experience built up locally in the eld of Micro Hydro Power, at
regional and international level, USAID/Nepal, Ministry of
Finance/Government of Nepal and Alternative Energy Promotion Centre
under Ministry of Science, Technology and Environment
Signed/concurred in signing Implementation letter for the
establishment of Regional Centre of Excellence in Micro Hydro
(RCEMH) in Nepal. The implementation letter was signed during
mid
of April 2013 with major support for a period of two years
coming from USAID. Government of Nepals contribution through AEPC
will not be less than one-third of the total actual costs of the
AEPC reimbursed by USAID. The main objective of the RCEMH is to
make available Nepals 30+ years of experience in Micro Hydro
development regionally and globally. More specically, following are
the objectives of RCEMH:
To ll the knowledge and experience gaps amongst policy makers
that are embarking on a
new generation of renewable energy frameworks, of end-user
communities, and of developers and investors interested in pursuing
off-grid hydro projects.
Be a knowledge centre for the micro hydro sector in the South
Asia by establishing a Regional Centre of Excellence in Small
Hydropower in Nepal.
Be a self sustaining centre for promoting micro hydro
development that will catalyze high growth of micro hydro by
addressing all-round capacity building needs for the sector.
Given that securing livelihoods is a major theme in rural
development, and the central role of hydro power generation, it is
proposed that RCEMH with a
Regional Centre of Excellence in Micro Hydro (RCEMH) - Nepal: An
Introduction
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16 Jalashak
mission of improving information dissemination on micro hydro,
promoting quality and efcient product application, supporting clean
energy establishment, catalyzing high growth of micro hydro through
advisory and human resource capacity building and improving the
economy of the local region be established within AEPC. The Centre
would provide demonstration and success case studies of efcient
small hydro power technologies, designs, and practices, product
testing for maintaining quality and performance standards,
technical assistance to manufacturers to build quality products and
encourage local entrepreneurs to develop the local economy and
raise living standards of disadvantaged populations and advising
policy makers.
In order to be self sustainable centre within reasonable
timeframe, which is one of the specic objectives of RCEMH the key
focus of the Centre will be to sell service offerings to clients,
which are broadly classied as:
Knowledge management Training Project monitoring Technical
assistance.
Under these broad themes, the Centre will offer a range of
services. These would include, for example, human resources
training, conducting research, establishing product manufacturing
standards, facilitating small hydro power technology information
sourcing, promoting quality and efcient turbine applications,
promoting the manufacture of quality small hydro power plants and
system designs, providing opportunities for appliance producers,
suppliers and researchers to promote new technologies in efcient
small hydro power plant manufacturing, catalyzing policy changes
with respect to the application of efcient technologies in small
hydro power plants, and encouraging new investments in efcient
quality products manufacturing and research.
RCEMH will concentrate on securing a core set
of clients that will represent a base set of business revenues.
These clients could be domestic as well as regional and
international companies or organizations that are pursuing micro
hydro projects or designing the policy and institutional
arrangements for the sector.
The Centre will develop its business through client visits,
focused market outreach, and thought leadership on key topics
(e.g., micro hydro) and building out area social infrastructure,
workshops
and conferences and information dissemination. Direct client
presentations, written proposals and referrals will be the main
tool the RCEMH which will be used to achieve its business plan
goals.
RCEMH has recently provided Training of Trainers (ToT) to 20
highly skilled MH professionals in the recent past who are now
ready to take up training assignments on various aspects of Micro
Hydro Development locally and regionally. RCEMH is contemplating
supporting establishment of one dedicated demonstration Micro Hydro
Plant nearby Kathmandu, where all the available technologies will
be demonstrated while operating, which will double as training
centre for providing training in every aspects of MH development. A
number of guidelines, standards and manuals to cater to the region
are under development and dedicated marketing visits to few of
South Asian (e.g. Afghanistan) and South East Asian countries (e.g.
Myanmar) are planned to be completed in this scal year
(2014/15).
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17Jalashak
The success stories of Micro Hydro in Nepal have been told in
places and occasions frequently. The Government, The private sector
and the community are appreciated in such contexts. Keeping in view
their involvements and enthusiasm none of them should be called
great, but greater, as a matter of fact.
Private sector, one of them bears different characteristics, off
course. These entrepreneur communities have to live with a lot of
challenges - such as unsecured investment, non-cooperative staffs,
changing policies and regulations and users unsound background.
However, they take the challenge at the cost of satisfaction of
their social responsibility, just besides earning of livelihood by
business ventures.
The private sector techno-entrepreneurs undertake all
assignments related to establishment of Micro Hydro - survey and
design of the projects, manufacturing of suitable turbines,
penstock pipes, poles a hydro-mechanical parts, supply, delivery,
installation and commissioning and after sales services by one
single individual company or rm. However, the classication of jobs
has been exercised in the later phase. Thus, a company or rm
dedicated to micro hydro development may perform assignment of all
jobs as said above or part of the jobs, as opt for specialization
on a single or selected segment.
Despite of the problems and hurdles, they have been successful
to serve the country for half a century by some, for a quarter of a
century by around a dozen and around one and half dozen
by twenty more and only a few are recently entered ones. Balaju
Yantra Shala Pvt. Ltd., Kathmandu Metal Industries Pvt. Ltd., Nepal
Yantra Shala Energy, Nepal Hydro & Electric Pvt. Ltd. Nepal
Machine and Steel Structure and Thapa Engineering Industries who
were the pioneers in the eld are leading the sector for 50 to 25
years.
Besides the data in the table below, AEPC/NRREP mentioned that
pico and micro hydro plants established in between mid-July 2012 to
mid-July 2014 generate 6.2 MW of electricity. NRREP will be
operational till mid July 2017. It has a set target to establish
pico hydro, micro hydro and mini hydro plants to generate in total
of 25 MW of electricity in its ve year tenure. Thus, the private
sector sees sizable opportunities to show and prove strength to
further development of pico hydro, micro hydro and mini hydro
projects. The upcoming projects of other institution like Kadoorie,
Poverty Alleviation Fund, Dolidar and others will be in
addition.
AEPC/NRREP has conducted prequalication of private sector
companies and rms for various MH assignments. For survey and design
61 companies and rms have been prequalied. Likewise, 78 companies
and rms for installation of MH projects are prequalied -
categorically, 11 for pico hydro (up to 10 kW), 14 for up to 50 kW
and 53 for 100 kW. Similarly, prequalication of manufacturing
companies or rms is under progress. The PQ for manufacturers is set
to classify as manufacturer of
Private sector eorts in ourishing MH in Nepal
AEPC Other institutions Total
Category Quantity Capacity Quantity Capacity Quantity
Capacity
Pico Hydro 862 2.339 MW 772 1.364 1643 3.703
Micro Hydro 815 17.786 472 6.819 1287 24.605
Mini Hydro 1 0.4 41 15.940 42 16.340
Total 1678 20525 1285 24.123 2963 44.64
(Source: AEPC/RET Baseline 2012)
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18 Jalashak
turbines, manufacturer of penstock pipes, poles and other hydro
mechanical parts, and manufacturer of Electronic Load
Controller.
The private sector has been expanded to some 80 company or rms
in the country (excluding those who specialized in survey and
design jobs). The private sector, as such, has accumulated strength
to delivers supplies and services for establishing micro hydropower
plants to generate electricity of 8,000 kW or more per year, taking
as one company or rm perform for 100 kW in an average. Besides that
the sector has a pool of around 500 technical and 500 non-technical
staff altogether. Most of them are experienced in their
profession.
The private sector companies and rms are working at the limit of
100 kW capacity projects till now, but a segment of the private
sector entrepreneurs claim that they are looking for their real
capacity to show performing for 1000 kW or below projects. On the
basis of long time experience, specially turbines and accessories
manufacturers, say that they are in the position to manufacture
bigger than 100 kW size turbines. The Government and other
institutions linked to micro hydro if extend technical and nancial
support for new and better instruments their capacity will grow
rather. Some of such private companies or rms are looking for
opportunities to manufacture Francis turbines to suite the possible
demand in Nepals bigger than micro hydropower projects that is to
come into market in future. Regarding manufacturing of Francis
turbines, some
Micro Francis Turbines were fabricated in the past but they did
not yield expected results. Later, one 92 kW Francis turbine which
is a reduced size of 4 MW design was made in Nepal and waiting for
testing at Kathmandu University Turbine Testing Lab. The hydrolic
prole of runners of the 92 kW Francis Turbine was developed at KU
TTL with application of CFD. As such, the future of Francis Turbine
fabricating in Nepal has been considered coming soon in action.
Nepals private has been successful in supplying turbines and
other parts to foreign countries also. They even provide service of
installation and commissioning of the plant. Likewise, they are
seen sometime doing transfer of technology to foreign technical
personnel in Nepal or at their own countries.
Given below are some earlier steps in micro hydro in Nepal which
resulted favourable situation in the present days and expected
better for the days to come.
First Installation of MHP was done at Godavari in 1962 (5 kW) by
BYS
Fifth 5 years plan (1975/76-79/80)- Small hydro Power mentioned
for the rst time
Sixth 5 years plan (1980/81-84/85)- ADB/N Lunched Rural
Electrication Project
The Government waived the Licensing Requirement for MHP-
1984
Wrien by :Purna N. RanjitkarConsulng Editor,
Francis Turbine ( 92 kW ) at Kathmandu University
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19Jalashak
Eighth 5 years plan (1992/93-96/97) - Target Fixing Started
Ninth 5 years plan (1996/97-2001/02)- MHP Targeted 5 MW
REDP Initiated in 1996 AEPC Established in 1996 ESAP Initiated
in 1999 NEA Announced the Policy of purchasing
electricity from Independent Power Procedure
The development phases
1960 : KMI developed Improved Grinding Mill 1962 : BYS
manufactured and installed 5 kW
Propeller Turbine
1974 : BYS manufactured Crossow Turbine and installed
1975 : BTI manufactured Pelton Turbine 1979 : BYS manufactured
Crossow Turbine for
rural electrication
1989 : KMI produced Multiple Purpose Power Unit
1982 : BYS manufactured Crossow T3 Turbine 1983 : 1. Development
and installation of rst
split-ow turbine by BYS
2. First Corss-ow turbine installed by KMI
3. First stand alone electrication unit produced by BEW
4. First add-0n generator installed by DCS
5. Development and construction of propeller turbine in a scroll
case by KMI
6. Development and construction of a mini poncelet water wheel
by AEW
1984 : BYS manufactured Crossow T7 Turbine 1985 Electric motor
converted to induction
generator by KMI
1986 : Redesign of MPPU by NSECO 1987 : Cross-ow turbine with
double inlet-
valves produced by TEW
1988 : Pelton wheel on a 1 kW induction generator tested by
DCS
1989 50 kW stand-alone electrication plant installed by DCS
1990 : 1. KMI introduced Peltric set2. BYS manufactured Crossow
T12
Turbine
3. 50 kW electrication with Pelton wheel installed by
KMI/NPP
1992 : 1. 100 kW stand-alone rural electrication project
initiated by DCS
2. Design, manufacture and commissioning of 250 kW turbine by
NHE
3. High tension lattice transmission line towers tested and
developed by NHE
2003 : NYSE manufactured Crossow T15 Turbine. BYS introduced T15
simultanously.
Water Energy Consultants Association Nepal (WECAN), established
in 2009, is one of the major private sector forces in the country
to develop Micro Hydro in Nepal. This is an umbrella organization
of surveyors and designers. Members of this association are
contributing in survey and design of micro hydropower projects and
even larger hydropower projects.
The main objectives WECAN are:
Supporting Consultants values, rights and maintaining
professionalism.
Coordinating at national and international level for carrying
out seminars, workshops, trainings and consulting services.
Creating awareness about the importance of water and energy by
media.
Creating WECAN fund internally involving consulting rms and
individual consultants so that it can support for strengthening the
technical capability of water and energy sector within the
country
Creating a common platform for all water and energy consultants
working within and abroad country so that it could even support for
long term economic development of the country.
The surveyors and designers of the private sector dedicated to
promotion and development of micro hydro development in Nepal has
played important roles. For vital participation such players,
AEPC/NRREP has prequalied 61 such survey and design of micro
hydropower projects.
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20 Jalashak
BYS manufactured 70 kW Crossow Turbine in Chjenbedji, Butan
Turbine made by Nepal Yantra Shala Energy installed in Laos
Some Turbines exporteted from Nepal
BYS Turbine installed at Sarawak Plant, Malaysia.
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21Jalashak
There are thousands of isolated mini and MHPs and hundreds of
thousands solar home systems (SHS) promoted by Alternative Energy
Promotion Centre (AEPC) of Ministry of Science, Technology and
Environment providing electricity to rural population of the
country. AEPCs agship programmes; Rural Energy Development
Programme (REDP)/ Renewable Energy for Rural Livelihood (RERL)
Programme and Energy Sector Assistance Programme (ESAP) helped in
development of the MHP sector and are a good example for other
similar mountainous countries to learn from. There are around 3,000
micro-hydro electrication schemes with a total installed capacity
of about 28,000 kW in the hills and mountains of Nepal providing
electricity access to hundreds of thousands of households.
Why Mini Grid ?
MHPs installed in the isolated areas in the rural parts of the
country are mainly serving the lighting needs of the people. The
average plant factor is around 20% or near. On the other hand, the
average installed capacity of MHP in Nepal is around 20 kW which
does not allow simultaneous operation of multiple end uses to
increase the plant utilization factor. In addition, the demands for
power is increasing rapidly in rural areas too as the living
standards are improving and many MHPs are struggling to meet the
peak demand. In this contradictory scenario where some plants are
not using their capacity and others are overloaded,
providing reliable and quality electricity is a huge challenge
for community managed micro utilities scattered all over the
country. If MHPs have interconnected facilities for transferring
spill power from one area to the other, more productive uses can be
operated and consequently increase the overall plant utilization
factor. Though MHP has benetted the rural population tremendously
by providing better lighting and opportunity for operating micro
enterprises, there are limitations to scale up due to low power
output (
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22 Jalashak
purchased and shut down. If appropriate policy and related rules
and regulations for interconnection of MHPs with the NEA grid is
not formulated and implemented, more MHPs are likely to be
abandoned resulting in waste of national resources and efforts,
AEPC/REDP/RERL brought up this issue with NEA time and again and
was usually told that it would not be feasible to connect MHPs with
the national grid both from nancial and technical perspective. The
main issues raised by NEA area;
Most of the generators used in MHPs are induction types which
draws the reactive power from grid,
Connection of small MHP creates technical and managerial hassles
to the grid and NEA and it will aggravate the safety issues during
repair and maintenance.
AEPC and UNDP initiated establishment of a Mini Grid connecting
a number of MHPs in Urja Upatyaka of Baglung district to address
the technical and management related issues raised by NEA. If the
MHPs of below 100 kW capacities
could be interconnected forming a Mini Grid and the Mini Grid
could be interconnected with the nation grid, sustainability of
these small plants could be ensured and rural population could
generate more revenue that could be spent for their
development.
Besides the economic benet, people would get quality electricity
as the MHPs have to meet the voltage and frequency standards of the
national grid. In addition, maximum utilization of installed MHP
has direct positive inuence in reduction of greenhouse gases.
NEA would also get benet from interconnecting
MHPs as it need not buy the plants which would be managed by the
beneciaries themselves, just a Power Purchase Agreement (PPA) to
buy electricity would sufce. In addition, connection of power
generating sources at the end point of weak grid will help improve
the voltage prole in the system. MHPs interconnected local grid
(Mini Grid) is an innovative and cost effective solution to deliver
the reliable electricity supplies to the beneciary. It is One step
forward in the development of micro
Topographic map of six MHPs (circle) forming the Mini Grid,
rectangle represents the distribution transformer of national
grid.
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23Jalashak
hydro in Nepal. Mini Grid, conceptualized by AEPC/REDP, is a
local grid that connects two or more isolated MHPs to operate in
parallel mode and share the load in the system in same proportion
with respect to their capacities. Mini Grid would have various
benets including sustainable supply of electricity, some of which
are discussed below.
Optimization of Electricity Generation:
o Balancing the surplus electricity of one or more MHPs with the
decit of another one or more MHPs
o Opportunity to establish bigger sized industries (mechanical
workshops with welding machines and lathe machines, stone crushing
machines, etc) requiring more electricity (more than 50 kW) than
generated by an average MHP of 20 to 30 kW
o Operating all plants at their full generation capacity round
the clock without dumping spill power
o Continuous power supply even when one plant is closed down for
vital maintenance activity, beneciary households would still get
electricity to meet their basic household needs from other
plants.
Connection of Mini Grid with National Grid:
o NEA would be more inclined to interconnect a Mini Grid than
individual MHPs with their system as it would reduce technical and
managerial issues raised by them
Achievement of System Sustainability:
o Increased revenue for MHPs from increased uses/sales of
electricity
o Promotion of better inter scheme co-ordination and sense of
electricity
Resources, Government grant, communities' cash contributions and
voluntary labor spent for building MHPs are not wasted by closing
them down when the grid reaches their catchment areas.
Development of distributed power generation system which is more
reliable in the long run with MHP and other small scale renewable
energy technologies as an integral part of the national electricity
production and distribution system.
Urja Upatyaka Mini Grid Project
MHPs interconnected local grid is a much talked about potential
technology to address some issues related to rural electrication in
Nepal. However, there was no known micro hydro interconnected Mini
Grid in operation in South Asia. Concept papers and thesis have
been written highlighting potential benets from the perspectives of
optimum
utilization of electricity both locally and through grid
feedings, and nancial benets to rural people.
In 2001, UNDP/REDP had supported the Institute of Engineering,
Tribhuban University to test synchronization of MHP in its
laboratory with the national grid. The interconnection was
successfully done. A report was produced and disseminated widely to
stakeholders including NEA. In 2007, REDP conducted Detailed
Feasibility Study for Mini Grid Development in Urja Upatyaka,
Baglung. In 2009, AEPC/REDP supported interconnection of six MHPs
in Baglung with the total installed capacity of 107 kW through 8 km
long 11 kV line. As a result, over 1200 households are beneting
with quality and reliable electricity round the clock.
The MHPs connected as Mini Grid are Upper Kalun
(This article is excerpted from a write up by Mr. Shakya, then
Renewable Energy Expert at AEPC/ RERL. This was published in
Experience Sharing of Mini Grid and Biomass Gasication, a AEPC/RERL
publication). Mr. Bhupendra Shakya
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24 Jalashak
Khola (12 kW/ 115 households) at Paiyun, Kalun Khola (22 kW/ 230
houses holds) at Paiyun, Urja Khola I 26 kW/274 households),
Rangkhani, Urja Khola II (9 kW/158 households), Rangkhani, Urja
Khola IV (14 kW/ 290 households), Damek and Theule Khola (24 kW/
290 household), Sarkuwa. All six of them generate 107 kW of
electricity and connected households are 1200.
Lessons learnt
Mini Grid connecting several MHPs is technically feasible.
However, nancial viability depends on a number of factors such as
end-uses potential, distance between the MHPs, total capacity of
the MHPs, potential for power trading with NEA, etc. A rigorous
assessment is necessary to determine nancial viability.
Mini Grid could be the permanent source of electricity for areas
with low chance of getting the national grid in near future.
By interconnecting a number of MHPs, Mini Grid provides sizeable
capacity to connect with NEA grid. Furthermore, it creates an
opportunity for rural people to trader power with the national grid
and thereby keeps their plants in good condition.
Capacity building, coordination, understanding among community
is major step for sustainable operation of Mini Gird project.
Baglung Mini Grid is becoming a research place and has built
condence for replication of Mini Grid projects in other parts of
the country.
Way forward
Capacity building: The community that operates the Mini Grid
requires continuous support for still some more time. RERL has
helped them to prepare their short term and long term strategies.
As the technology and the management system are both new to the
rural areas, AEPC's support is required for training operators,
cooperative management and end-use promotion.
Continuous research and development of technologies involved is
establishment of a Mini Grid is required to build up local capacity
for operation, management, repair and fabrication. Academic
institutions, private companies and AEPC need to come together to
help incorporate Mini Grid in curriculum, undertake research and
development and ultimately fabrication or assembling.
Productive End-uses: Special efforts need to be given to promote
productive end-uses so that the system can be nancially viable.
Monitoring: AEPC and DEES need to closely monitor the operation
of the Mini grid and provide technical assistance for some
time.
Interconnection with the national Grid: AEPC's Initiative to
interconnect the Mini Grid with the national grid has not yielded
any result so far but the initiative needs to be continued. Grid
connection will give many benets to the community and the NEA. It
will open new avenues in the mini-micro hydropower sector in the
country. The rural people will not merely be consumers but also
producers and suppliers of power.
The nancial support for institutionalization of the cooperative,
smooth operation, repair and maintenance and capacity building of
the people involved in Mini Grid may still needed.
Another source of power needs to be connected to the Mini Grid
to meet the growing power demand and stability of the whole
system.
Before more Mini Grid are promoted in the country, framework,
guidelines and standards need to be prepared based on the Baglung
experience. A cursory study has indicated that there are 21
potential Mini grid projects in 16 districts.
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25Jalashak
Introduction
In achieving the sustainable development, hydro power project
considers a key position and operates at the crossroads of two
essential requirements for human welfare water and electricity in
the form of modern clean energy. Even though there is no magic
single solution to the sustainable development of the world, hydro
power projects offer development potential for cleaner energy and
effective water management where and when it is most needed.
Moreover, the broad range of hydro power projects types and scales
makes it more appropriate for various needs and contexts. The hydro
power projects nevertheless remain efcient tools provided they form
part of a properly integrated approach which balances all the
factors required to achieve it. While not a cure-all for the worlds
energy and water needs hydro power projects deserve proper
consideration in any assessment of a countrys energy and water
requirements. There is no doubt that the hydro power projects can
contribute the energy mix and deliver benets for the sustainable
development if the projects are found to be appropriate to local
circumstances.
Electricity and Development
Access to affordable and reliable energy underpins all
sustainable development objectives. Where energy supplies are
lacking or insufcient,
employment prospects are hindered, women and children remain
trapped on the treadmill of domestic chores and so cannot
participate in the wider society, children do not have access to
adequate education, health concerns remain neglected and services
are insufcient, economic growth is stunted, and the way out of
poverty is barred. Thus, basic development goals will be thwarted
unless energy provision can be augmented. Following are the key
points how electricity contributes the development.
Leads people out of poverty by enabling small scale enterprise
and off-farm activities
Empowers women by freeing them from domestic drudgery
Promotes better health and health- care by powering hospitals
and dispensaries
Increases educational opportunities for children by supplying
power to schools
Provides cleaner and more efcient heating and cooking facilities
in the home
Spurs economic productivity in providing reliable energy
services for industrial development
However, poverty is a multi-faceted challenge and policies are
required to tackle all aspects of it and electrication alone cannot
deliver on development promises. In many places, both rural and
urban electricity services, often suffer from poor or corrupt
management, illegal connections, power
Hydro Power Development in theGlobal Energy Market
Micro/Mini Hydro Power as an Important Segment
By Jagadish Kumar Khoju
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26 Jalashak
shortage and blackouts. In addition, an electricity service is
usually too expensive for the poor to use. Quite apart from these
problems, different kinds of systems will be required for different
areas. Remote rural areas are often best served by decentralized
off-grid projects, where as densely populated urban areas often
benet most from a centralized, compact electricity system.
Similarly, most people live without electricity in developing
countries and many of these people are the worlds poorest and
therefore least able to cope with challenges. Electrication can
assist in meeting the millennium targets.
Small Hydro Power Project: Response to Rural Electrication
Where the extension of national grid to remote isolated rural
communities is not feasible, the decentralized small hydro power
projects can contribute signicantly to improving the economic
development of the rural communities. Small scale hydro like micro
and mini hydro power projects are most cost effective energy
alternatives to national grid extension in the rural areas. Actual
the comparative advantage of the small scale hydro has already
resulted in the thousands of small dams encountered all over the
world. The increasing number of such hydro projects can be observed
in Asia, where is a signicant hydro potential for further
development.
Table 1. Small Hydro Power Project Installed Capacity by World
Region (Source: IHA)
Region Installed capacity (MW)
Percentage
Asia 32,641 68.0 %Africa 228 0.5 %South America 1280 2.7 %North
America 2929 6.1 %Europe 10723 22.3 %Australasia-Oceania 198 0.4
%Total 47, 997 100 %
Small Hydro Power Project in European Union
An important role in achieving European
renewable energy goals can still be played by small hydropower
resources that are distributed on the continent and can offer all
the benets of dispersed renewable generation. Since about 1950,
small hydropower has had a negative development in some EU member
countries. Many small hydropower plants have been shut down because
of age and competition from new, larger plants. The potential from
reinstalling these plants and upgrading existing, underdeveloped
small hydropower plants is estimated at an annual electricity
production of approximately 4,500 GWh. Based on an analysis/study
carried out in the years 19992000, the potential of new plants,
reduced when economic and environmental constraints have been taken
into account, is calculated to be about 19,600 GWh per year. If the
economic situation for producers improves, and the environmental
constraints decrease, the total contribution from small hydropower
in the EUs fteen member countries could probably reach 60 TWh in
the decade 202030.
However, among the European countries, Norway has a good
experience in mini hydro power project development; its experience
can be replicated in the other developing countries as well. In
Norway, there was a big political issue of rural electrication for
the remote rural areas when 75 % urban area had the access of
electricity in 1980. In order to address this issue, the Norway
government initiated to study of possible options of rural
electrication for the rural areas. The study showed that the mini
hydro power projects are not nancially sound and the government had
formulated the subsidy policy for the mini hydro power promotion
and highly encouraged local bodies, private companies and community
as well. As a mountainous geographical situation and abundant hydro
power potential, there was no problem of site identications and the
increasing number of mini hydro project development was introduced
as an approach of mini- grid that more than two mini hydro power
projects gradually was synchronized at local networking form and
the projects were integrated with irrigation purposes also from the
perspective of multipurpose use of water resources for the more
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27Jalashak
nancially viable. However, the central government played such
coordinated role that the mini grid projects were further connected
to national grid in feasible specic sites as per local demand.
Norway is now such country where 99.8 % of total energy supply
comes from hydro power.
Micro/Mini Hydro Power Project in Developing Countries
Micro-hydro installations are widespread in Asia, where there is
a signicant resource potential for further development. China has a
well-developed hydropower industry, with an estimated 60,000 small
hydropower installations (less than 1 MW), and a combined capacity
of about 17 GW. The installed small hydropower (less than 10 MW)
capacity in Viet Nam is 61.4 MW, with an estimated potential of
about 1.8 GW. Some 3,000 sites have been identied for micro-hydro
installations in the range of 1 to 10 kW. These sites will serve
irrigation and drainage needs, in addition to generating
electricity for 2 million households. Many areas in Viet Nam do not
have access to the electricity grid, due to the high extension
costs. In these areas, mini hydro units are used by individual
families for lighting and battery charging (for television and
lighting use). It is estimated that over 3,000 family units of 1 kW
or less are installed in Viet Nam. Other developing countries like
Sri Lanka (35 MW), Laos, Bangladesh, India (1694 MW), Brazil (859
MW), Peru (215 MW), Congo (65 MW), Pakistan (107 MW), Papua New
Guinea (20 MW) are the potential countries in micro and mini hydro
power project development which most population reside in the rural
mountain areas. There are also small scale hydro power projects in
Africa. Guinea has identied 150 mini- and micro-hydro sites;
Nigeria plans to develop 700 MW of capacity in 236 different
projects. In the sub-Saharan region of Africa, such as in Ethiopia,
Malawi, Uganda or the United Republic of Tanzania, topographical
and hydrological conditions would also allow the implementation of
hydropower plants.
With the support of different development partners since the
1970s, Nepal has succeeded in building
up an industrial sector capable of manufacturing or assembling
all micro/mini-hydropower components except the generators for
micro-turbines up to 500 kW. Nepal has developed micro/mini-hydro
power projects of 52 MW through various technical and nancial
support programmes.
Successful Implementation of Micro/Mini Hydro Power Project
Successful implementation of mini hydro power project in
developing countries does not complete with the successful
commissioning of the project. However, sustainable operation and
maintenance of such project must be taken into consideration from
the planning phase of the project. The sustainable mini hydro power
project considers the several parameter of the smooth operation
like quality, quantity, continuity, efciency, affordability.
Similarly, institutionalization is another major factor of the
sustainable project and operation cost of the project must be
covered at a local level even after the discontinuity of external
support. Hence, major objectives of the project should be clearly
addressed before initiating such project which include social
infrastructure (provision of energy for schools, health services,
and drinking water), physical infrastructure (irrigations systems,
roads), and economic infrastructure (small scale prot making
business). As the capacity of rural people is very low in technical
knowhow of such technology, capacity building processes like
orientation, training, awareness creation are always most even this
process takes a lot of time and additional cost except the total
project construction cost which not only minimizes the operation
and maintenance of the project in the project operation phase but
contributes to increase the ownership of the community towards the
sustainable project. Similarly, since the political interference is
a major hurdle in the local community, the corporate structure or
cooperative model of the management and the address of property
right issue should always be considered from the beginning the
project planning.
Based on the various studies of case study reports,
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28 Jalashak
(Mr. Khoju i s Sen ior Engineer at Alternative Energy Promotion
Centre (AEPC) and Community Electrification Progarmme Manager at
National Rural and Renewable Energy Programme (NRREP) of AEPC in
Nepal and contact email : [email protected]. Jagadish
Kumar Khoju
following are the major technical and nancial reasons of the
failure of the mini hydro projects:
Poor site selection and installation of equipment,
Affected by oods and landslides,
Poor estimation of hydrological conditions,
Non economic canal design
Negligence of civil works,
Lack of nancial sources for the repair and maintenance
It is well accepted matter that small river sections with
geological stability, no vulnerable species, a high head within a
short horizontal distance and where is strong support for
development from the local community represent best sites for
technically, environmentally and economically development sound
hydropower project. The small hydro option depends for its success
on competence in the wise choice of the best sites. However,
funding small projects simply on the basis of their scale would be
a pitfall, all factors like political, economical ,social,
technical, environmental and, legal, need to be considered into the
equation while development
and managing the small projects. Furthermore, in developing
countries, there might be institutional constraints as well as a
lack of experts to undertake the required support to several
hundred small projects, where one large scheme might be easier to
handle such point of view.
Conclusion
Renewable energy represented one-fth of total power generation,
out of which hydro power is most advanced and exible of renewable
and represents 87% of this production. Similarly, most of the
worlds hydro energy remains to be tapped and worldwide total of
economically feasible hydro generation is over roughly three times
the current exploited total. Europe has the highest share of
exploited capacity (more than 45%) and major hydro power projects
of the 21th century will be built only in Asia, Latin America, and
Africa. In developing countries, electricity supply from the large
hydro power project to scattered rural hilly areas is not nancially
viable due to high transmission and distribution cost to extend the
grid to scattered settlements and low purchasing capacity of rural
poor and the small hydro power project like micro/mini hydro power
project is the best solution for the rural electrication to the
isolated communities which can be taken an entry point for holistic
rural development in a sustainable manner. Just electrication is
not only the solution of sustainable development and there are
various factors of social, economic and environmental issues in
rural areas. Hence, if the proper management of development project
taking the entry point of small scale hydro power project is
introduced, it not only enhances the sustainable rural livelihoods
of the areas but also supports to large hydro power project
development. Such type of win-win approach not only contributes to
achieve the international development goals at local and national
levels but also supports the global thinking in sustainable
development issue as large hydro power project development is the
national and international interest and the produced electricity
can also be exported to neighbour countries to meet the high power
demand of dense population and small scale hydro project
development, including mini grid connection to national grid in the
feasible sites, is the interest for local level in hydro power
potentially developing countries in the world.
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29Jalashak
Alternative Energy Promotion Centre (AEPC) is a nodal
institution established by the Government of Nepal with the
objectives to popularise and promote the use of renewable energy
technologies, to raise the living standards of the rural people, to
protect the environment, and to develop commercially viable
renewable energy industries in the country. AEPC was established in
November 3, 1996 under then Ministry of Science and Technology of
the Government of Nepal. Currently, it is under the Ministry of
Environment, Science and Technology. The centre functions
independently, and has a eleven member board with representatives
from government sector, industry sector and non-governmental
organizations.
As Nepal faces the challenges of poverty, issues of gender and
social inclusion and issues of climate change all at the same time,
promotion of renewable energy technologies has been one of the
indispensible tools to overcome these challenges. AEPC, since its
establishment has been promoting sustainable energy solutions to
off-grid rural households and communities in Nepal who primarily
lack electricity to light their homes or burning polluting fuels
either for their lighting or cooking needs or to run their local
enterprises and businesses. Recently, AEPC has also been promoting
solar options to urban areas in an effort to lessen the burden of
energy demand from the grid electricity. Clean Cooking and Lighting
Solutions for All by 2017, the vision GoN to put on has created new
opportunity to AEPC to perform well and with wider
participations.
AEPC has wider vision and mission in promotion of alternative
energy as roles and responsibilities. Short, medium and long term
policy and plan formulation, Promotion of RET development
programmes, Standardization, quality assurance and monitoring,
Service and support, Subsidy and nancial assistance delivery,
Co-ordination with various government organization, development
partners, NGOs/INGOs and private sector, monitoring, evaluation and
quality control, and strengthening AEPC and its partners are the
main roles and responsibilities.
AEPC has implemented Energy Sector Assistance Programme (ESAP I
and ESAP II), Rural Energy Development Programme (REDP)
successfully in the past.
Both phases of ESAP, supported by Danish Government were
appreciably meaningful in development and promotion of micro hydro
in Nepal. Other renewable energy technologies were also taken in to
consideration as well in the ESAP. The support was focused on three
main areas: 1) increased access to electricity produced from
renewable energy sources (hydro and solar) to the rural population
2) increased use of improved cooking stoves among the rural
population and 3) capacity development of the Centre itself. The
rural activities are implemented through a solid network of NGOs
and the private sector. The Centre is responsible for quality
assurance, result
AEPC in promotion of RETsNRREP focus on Micro Hydro
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30 Jalashak
dissemination and awareness raising. The activities were
implemented despite the running conict in the country.
Rural Energy Development Programme (REDP) was launched in 1996
as a small pilot initiative in ve remote hill districts. UNDP and
The World Bank supported REDP to conduct as an AEPC programme. The
programme was subsequently scaled up via the national Hydropower
Development Policy of 2001, which focused on rural development via
low-cost hydropower systems.
Keeping in view better results and requirement, REDP was
extended to 40 districts. As of 2010, the programme had connected
59,000 households to micro hydropower installations, constructed
317 new micro hydropower plants with 5.7 megawatts of installed
capacity, and installed numerous improved cooking stoves,
toilet-attached biogas plants, and solar home heating systems. The
primary beneciaries of the programme, which is now being extended
to all 75 districts, are rural communities, with particular
attention to vulnerable women and indigenous people. In addition to
improving access to energy services, the programme has made
possible signicant progress in rural development. Research
conducted by UNDP and Nepals AEPC found that improved access to
electricity in rural areas led to increase in household income by a
thin growth, reduced average annual household spending on energy
and creation of 40 new businesses for every new micro hydropower
station brought on line. In addition to supporting business
formation and raising rural incomes, this research found increases
in school enrolment rates (particularly for girls), and
improvements in child and maternity health, in water quality and
access to modern sanitation, as well as in environmental quality.
Reductions in time spent gathering water and rewood also allowed
women to more actively
participate in socio-economic life.
REDP, thus, demonstrated the benets that can come from rural
development programming that takes an integrated approach to
economic, environmental, and social development challenges
Renewable Energy for Rural Livelihood Programme (RERL) had been
introduced as continuation of REDP in 2011.
As AEPC has hosted different project interventions through
support from development partners in the past.. Especially, the
second phase of the Energy Sector Assistance Program (ESAP II)
nanced by the GoN, Danida, DfID, the Norwegian Ministry of Foreign
Affairs, KfW and SNV followed a
more coherent and coordinated approach that led towards
realization of the need of a more coordinated sector development.
As its result, in 2011, the GoN and development partners (Danida,
DfID, the Norwegian Ministry of Foreign Affairs, KfW, SNV and UNDP)
jointly agreed to support formulation of a National Rural and
Renewable Energy Programme (NRREP), that it will be a single
programme modality in which there will no other programmes or
projects funded outside the NRREP and where the GoN has
committed
itself to reform the subsidy system and nance a higher portion
of the subsidies for Renewable Energy Technologies (RET).
The development objective of the National Rural and Renewable
Energy Programme (NRREP) is to improve the living standard of rural
women and men, increase employment of women and men as well as
productivity, reduce dependency on traditional energy and attain
sustainable development through integrating the alternative energy
with the socioeconomic