session 1- micro hydro implementation model in nepal - ma and jk

7/29/2019 Session 1- Micro Hydro Implementation Model in Nepal - MA and JK

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Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural Nepal

International Workshop on Sharing Business Models

and

Scaling up Mini Grids in Asia and the Pacific6 and 7 February 2013, Kathmandu, Nepal

Mr. Jagadish Kumar Khoju,Programme Manager

Mr. Madushudan Adhikari, National Advisor

AEPC/NRREP, Nepal

MICRO HYDRO IMPLEMENTATION MODEL IN NEPAL

AND

WAY FORWARD FOR SCALING UP : TECHNICAL AND FINANCIALBARRIERS


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PRESENTATION OUTLINE

Introduction

Micro Hydro Development Progress in Nepal

Micro Hydro Implementation Model in NepalBarriers

Financial

technicalWay Forward for Scaling Up


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INTRODUCTION

Per capita income US$562 and

85% population live inrural areas (total 26.6million) and agriculturemain occupation

Per capita energy

consumption is 14 GJ

60% population haveaccess to electricityincluding 14% from RETs


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INTRODUCTION

Districts : 75Zones : 14

Regions : 5
http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=BFUGJM-FL4PjdM&tbnid=ajslUfCOybh3XM:&ved=0CAUQjRw&url=http://mountainflightnepal.com/about-nepal.html&ei=WawQUYbyHPCXiAe5z4CoAw&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=BFUGJM-FL4PjdM&tbnid=ajslUfCOybh3XM:&ved=0CAUQjRw&url=http://mountainflightnepal.com/about-nepal.html&ei=WawQUYbyHPCXiAe5z4CoAw&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=BFUGJM-FL4PjdM&tbnid=ajslUfCOybh3XM:&ved=0CAUQjRw&url=http://mountainflightnepal.com/about-nepal.html&ei=WawQUYbyHPCXiAe5z4CoAw&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=BFUGJM-FL4PjdM&tbnid=ajslUfCOybh3XM:&ved=0CAUQjRw&url=http://mountainflightnepal.com/about-nepal.html&ei=WawQUYbyHPCXiAe5z4CoAw&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859


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INTRODUCTION

Rivers No. : 6000

Hydro Potential : 84000 MW

Generation : 705 MW


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INTRODUCTION

Rivers No. : 6000

Hydro Potential : 84000 MW

Generation : 705 MW
http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=3q4GbxQBzYYARM&tbnid=ST6iWXNJ2U9AYM:&ved=0CAUQjRw&url=http://www.fao.org/docrep/005/y3994e/y3994e0r.htm&ei=QqsQUfnNLseeiAej5oGwBg&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=3q4GbxQBzYYARM&tbnid=ST6iWXNJ2U9AYM:&ved=0CAUQjRw&url=http://www.fao.org/docrep/005/y3994e/y3994e0r.htm&ei=QqsQUfnNLseeiAej5oGwBg&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=3q4GbxQBzYYARM&tbnid=ST6iWXNJ2U9AYM:&ved=0CAUQjRw&url=http://www.fao.org/docrep/005/y3994e/y3994e0r.htm&ei=QqsQUfnNLseeiAej5oGwBg&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859http://www.google.com.np/url?sa=i&rct=j&q=rivers+of+nepal&source=images&cd=&cad=rja&docid=3q4GbxQBzYYARM&tbnid=ST6iWXNJ2U9AYM:&ved=0CAUQjRw&url=http://www.fao.org/docrep/005/y3994e/y3994e0r.htm&ei=QqsQUfnNLseeiAej5oGwBg&bvm=bv.41867550,d.bmk&psig=AFQjCNH9q4MgvVCmQjsA7EJKvBtJzywrMg&ust=1360132590949859


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HYDRO RESOURCES IN NEAPL


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POWER (GRID) DISTRIBUTION IN NEPAL


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MICRO HYDRO PROGRESS IN NEPAL

Potential > 100 MW

Progress ~ 22 MW


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0

500

1000

1500

2000

2500

3000

3500

4000

4500

kW

AEPC ESTABLISHED IN 1996

Total ~25000 kW

~17000 kW (AEPC)

MICRO HYDRO DEVELOPMENT TREND IN NEPAL

1962-1985 20121996


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RRESCs

DDC/DEESs/DEEUs

Community Users

Groups

Technological

Actors

(Universities,

research institutes,

standardization

bodies)

AEPC

NRREP

Indirect

Horizontal

Relations

Direct

Horizontal

Relations

Dow

nstre

am

Vertical

Relations

GO/NGOs/INGOs/

Private

Organisations

Working in RE

Sector

Central Renewable

Energy Fund

(CREF)

Socio-cultural

Actors

(Civil society,

media, opinion

leaders,)

Political/RegulatoryActors

(government, lobbyists,

parties, regulatory

bodies, international

institutions)

Economic Actors

(Banks, MFIs, )

Upstream

Vertical

Relations

GoN(MoF,NPC,

MoSTE),AEPC Board,Steering

Committ,External

Development Partners

MAJOR STAKEHOLDERS


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INSTITUTIONAL ARRANGEMENT

FinancialTechnical

Assistance

Operation &Management

Community

Mobilisation

Loan

Credit

Manufacturing,S

urvey,Design

Policy,Coordination

Planning

AEPC

ApproachFor

Micro Hydro

Development

Financial

Institutions


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IMPLEMENTATION MODALITY


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DEMAND COLLECTION PROCESS


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PROJECT IDENTIFICATION PROCESS- GIS


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PROJECT IDENTIFICATION (Based on GIS Map)


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PROJECT DEVELOPMENT


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PROJECT APPROVAL PROCESS


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PROJECT IMPLEMENTATION


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QUALITY CONTROL MECHANISM


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PROJECT OPERATION AND MANAGEMENT


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TOOLS/GUIDELINES/FORMATS AT AEPC


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Micro hydro Implementation Way

Forward for Scaling up : Technical

and Financial Barriers


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Challenges of micro hydro community electrification

Up scaling and upgrading

scaling up of the

implementation, upgrading quality of technology and

construction

Inter connection and grid connection of existing

schemes

Capacity addition in old projects due to increased

demand of electricity


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Challenges of micro hydro community electrification

Financial viability in business model

Operation and management of plant in local level

Fate of the micro hydro plants after grid expansion

Rehabilitation and protection from natural calamities


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Barriers in up scaling

Unsuitable financing mechanisms grant/subsidy

High initial upfront costs for end-users high costs ofequipment

Information barriers end user has poor access to info

Lack of complementary investments end use etc.

Institutional and decision-making barriers fast andpersonalized decisions to get short term benefits

Inappropriate technology choices / cultural barriers


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Lack of Access to Credit - high transaction costs

Consumption of energy produced end use

promotion

Subsidies for fossil fuels and non-renewables

Policy of costing Environmental Externalities


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Financial issues in Nepal

Very high cost of E/M equipment - difficult to justify with other

competing technologies

Bidding process - Procurement by community - low bargaining

power : end with poor quality high cost

Funds to be arranged by community is very high.

No consideration for inflation, interest etc. during construction.

Lack of scalable and self-sustaining financial models.


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Technological Barriers in Nepal

Develop of bigger size projects

Equipment development

Construction & management by community

Quality of projects for grid connection

Controller, transmission, distribution etc.

Operation maintenance in the local level Retention of the skilled technician.

Availability of spare parts.


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Technological barriers in Nepal

Quality of project study

Quality of DFS is poor which can not be rely on

Time taking time for finalization 1-2 years.

Project Construction

Quality Electro/Mechanical component

Quality of civil construction-responsibility.Time taking long time 2/3 years


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Way forward

Promotion of credit facilities in rural area.

Expansion of reach of financial institution.

Cutting/sharing the overhead cost

Subsidized interest rates on credit

Mobilization of urban developers in rural areas

Equitable investment by government in subsidy

Strong policy to promote rural energy basedenterprises.


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Way forward

Development of higher size equipment

specially the turbine andgovernor

Upgrading the quality of the project to grid connection level

Improvement quality of DFS, more defined technical specificationsand BOQs

Training to design engineers and project managers.

More defined Procurement process


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Way forward

To shorten the project development period -Final approval shouldstrictly assures financial closure and time bound constructionschedule

More comprehensive skill O & M and enterprising training fortechnicians in the local level

Capacity building of companies in design/fabrication up to 500kW

(if not 1MW) Turbine, governors, Generators

Turbine testing and certification


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Alternative Energy Promotion Centre

Thank you

For further information:

Alternative Energy Promotion Centre

PO Box 14237, Tel. No - 5539390, 5548468, Kathmandu, Nepal

E-mail: [email protected] / [email protected]

www.aepc.gov.np

session 1- micro hydro implementation model in nepal - ma and jk

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