Country Presentation on

Hydropower Development in Nepal

Presentation By:
Saroj Acharya
Hydropower Engineer
Department of Electricity Development (DoED), Ministry of Energy
sarojacharya116@gmail.com
Subash Tuladhar
Engineer
Department of Electricity Development (DoED), Ministry of Energy
subash70@hotmail.com
Pashupati Prasad Khatri
Energy Development Officer
Renewable Energy for Rural Livelihood (GoN/UNDP/WB), DDC, Bajhang
Rojina Sharma
Engineer, AEPC, Ministry of Environment
19
th
Annual International Training course on Small Hydro Power Development, IIT Roorkee,2012
1. Country profile
2. Hydropower development and status
3. Country Policy and Private sector
5. Small Hydropower
6. Alternative Energy (Micro-Hydro, Mini Grid, Gasifier, CDM)
7. Photo Gallery
General
Land Locked Country
Area 147,181 sq. km.
Population 26 Million
No coal and natural gas source available
River Network
More than 6,000 rivers and rivulets
An annual 224 billion cubic meter of surface runoff
Total Hydropower Potential of 83,000 MW and more

Indian
Plains
Terai
Siwalik
hills
Middle
hills
High
Mountains
High
Himalayas
Tibetan
Plateau
67 m amsl
8848 m amsl
`
First Hydropower Plant: Pharping (500kW), 1911 A.D.

Hydropower Potential of the country 83,000 MW
Micro hydro installed (Dec. 2011) 12MW
Total Installed Capacity (2011) 705.566MW
Under Construction 931.133 MW
Parameter Classification
<100kW Micro hydro
101 kW- 1 MW Mini hydro
1-25 MW Small hydro
>25 MW Medium and Large hydro
Thermal
7.57%
Solar
0.01%
Hydro
92.42%
Installation By type (MW)
Small
hydro
28%
Medium
and Large
72%
Installed Capacity (MW)
Category Installed Capacity (MW)
Hydropower 652.05
Thermal (Diesel) 53.41
Solar 0.1
Total 705.566
Category Installed Capacity (MW)
Small Hydropower 181.05
Medium and Large 471
Total 652.05
S. N Name Installed Capacity, MW
1 Upper Tamakoshi 456.00
2 Chamelia 30.00
3 Kulekhani III 14.00
4 Upper Trishuli 3"A" 60.00
5 Rahughat 32.00
6 From Private Sector 338.73
Total 930.73
S. N Name Installed Capacity, MW
1 Upper Trishuli-3'B' 37.00
2 Budhi Gandaki 600.00
3 Upper Seti (Storage) 128.00
4 Seti Trishuli (Storage) 128.00
5 Upper Modi 'A' 42.00
6 Nalsyagu Gad (Storage Project) 1335.00
Total 1335.00
Ministry of Energy, Department of Electricity Development
Regulatory body
Policy making
Issuing license and facilitation
Identification study and solicitation of hydropower projects
Study and development of hydropower projects
Nepal Electricity Authority
Electrification
PPA (Power purchase agreement), Transmission and distribution
Project study and construction, Operation and maintenance
Ministry of Environment /Alternative Energy Promotion Center
Promotes Renewable Energy Technologies
Electricity Tariff Fixation Committee
Fixes the tariff
Private Sector (IPPs)
Development
Construction and Operation
Transmission up to substation

Develop hydropower as much as possible to contribute in
economic growth of the country
Privatization and Market economy was adopted
Electric power supply industry or utility was opened up for
private and investment came to play after the Electricity Act
(1992)
Nepal is one of the countries to start BOOT scheme in
Hydropower
Licensing Procedures (Two stage licensing procedure)
-Survey License (for study and PPA)
-Generation License (35 years including construction
period, for construction and Operation)
Virtually anyone could get a license and license fee is very
nominal so many could apply and get license


No EIA required for <50MW Project
Minimum royalty is charged during the payback period (for first 10
years)
PPP (Public Private Partnership ) to encourage Local People in the
development of SHP
Facility for the developer to promote Sector
Value added tax (VAT) is not levied on
-the electricity tariff
-the industrial machineries, equipment and spare parts imported
Only 1 % custom duty on the imported devices, equipment,
machineries and spare parts
Income tax holiday for the projects which will be completed within
2019
No income source looked into if investment is for hydropower till 2019
Private Sector is equally contributing in hydropower development and
in reduction of load shedding
Khimti Hydropower was the first hydropower project commercially
operated from Private sector in 2000
Solicitation of SHP to IPPs: 6 projects, 171.5 MW


Private
73%

27%
Installed Capacity MW
Category Installed Capacity (MW)
Public Sector 477.53
Private Sector 178.52
Total 656.05
S.N Name of the Project Operation (KW) Name of the Project Under Construction (KW)
1 Khimtikhola 60,000 Sanjen (Upper) 14,800
2 Bhotekoshi 36,000 Sanjen (Lower) 42,500
3 Chilime 2,2000 Middle Bhotekoshi 102,000
4 Jhimruk 12,000 Rasuwagadi 111,000
5 Indrawati III 7,500 Lower Modi I 9,900
6 Andhikhola 5,100 Sipring Khola 9,658
7 Mai Khola 4,500 Ankhu Khola-I 8,400
8 Khudi Khola 3450 Siuri Khola 4,950
9 Mardi Khola 3,100 Lower Indrawati 4,500
10 Piluwa Khola 3,000 Hewa Khola 4,455
11 Sunkoshi Small 2,500 Lower Piluwa 990
12 Ridi Khola ,2400 Mai SHP 9800
13 Thoppal Khola 1,650 Sanima Mai 15600
14 Chaku Khola 1,500
15 Patikhola 996
16 Pheme Khola 995
17 Upper Hadi Khola 991
18 Baramchi 4,200
19 Seti-II 979
20 Sisne Khola 750
21 Rairang 500
22 Salinadi 232
23 Sange Khola 183
Total 178,526 338,733
Hardly can get Long term study data (hydrology, meteorology etc.)
Evacuation and transmission Line problem
Should face some social problems as large projects
Low tariff (PPA rates)(Low rate of return), Fixed PPA rate
Financing Problems (Lack of capital)
High interest rate on debt
Poor Infrastructure and Accessibility issues
All machines and equipments should be imported from outside
Transmission line issues
One Window leads to several doors (Lengthy approval process, several
clearances required)


Environmental and social risks
Financial risks
Hydrological and GLOF Risks
Inflation and currency exchange rate risks


Very small amount of energy is harnessed in spite of its huge
potential
Positive scenario for the development of SHP
Local capacity is improving rapidly
PPA rate has been fixed for Small Hydro Projects i.e. up to 25
MW
Dry Season Rate : NRs 8.4 / KWh ( 10.5 US Cent )
Wet Season Rate : NRs 4.8/ KWh ( 6.0 US Cent)
(Exchange rate: 1USD=NRS 80.00)
Cost per KW generation >USD 1500.00
Bijayapur SHP 4.5MW
Under Construction
Ridi SHP 2.4MW
Under Operation
Mai SHP 15.6MW
Under Construction
Baramchi SHP 4.2MW
Under Operation



Established in 1996
Now under the Ministry of Environment
Government agency working in the field of
renewable energy
What does AEPC do?????
Prepares Plans & Policies
Coordinates between different agencies working in the field of
RETs promotion
Provides technical as well as financial support for RETs
Achievements till date :
MHPs :- 895 Nos., 12 MW
Renewable Energy for Rural Livelihood
Program. (RERL), through DEESs and
DEEUs (in DDC) covering all 75 districts.

Energy Sector Assistance Program (ESAP)
through 7 RRESCs (local NGOs).
19
Main policies relating to RETs
Renewable (Rural) Energy Subsidy
Mechanism, 2008
Renewable (Rural) Energy Subsidy Delivery
Mechanism, 2008
Custom duty and VAT exemption on the
equipments of different RETs
Rural Energy Policy, 2006
7/10/2014 20
CDM Project Cycle
A project needs to satisfy a number of rules and conditions and has to go
through a series of procedures with the involvement of several independent
entities in order to be classified as a CDM project activity.

10 July 2014 20
Project Design Document (PDD) / Project Information Note (PIN)
Validation
Registration
Implementation
Monitoring and Reporting
Verification
Certification
Stakeholder
consultations,
Public comment
Project Participants (AEPC)
Host Country Approval
Designated Operational Entity
CDM Executive Board
Host country - DNA
Public/Stakeholders
Independent Third Party
Baseline Studies
7/10/2014 21
AEPC CDM Projects
10 July 2014 21
Name of Projects Project
Proponent
Status
Biogas Support Program Nepal Activity-1 (9708 plants)
Estimated Annual Emission Reduction: 46,990 tCO2e
AEPC Registered & CER
issued
Biogas Support Program Nepal Activity-2 (9688 plants)
Estimated Annual Emission Reduction: 46,893 tCO2e
AEPC Registered & CER
Issued
Micro-hydro Promotion (capacity of 14.965 MW)
Estimated Annual Emission Reduction: 40,535 tCO2e
AEPC Registered
Biogas Support Program Nepal Activity-3 (20,254 plants)
Estimated Annual Emission Reduction: 51,086 tCO2e
AEPC Request for
registration
Biogas Support Program - Nepal Activity-4 (20,254 plants)
Estimated Annual Emission Reduction: 51,086 tCO2e
AEPC Request for
registration
Nepal Biogas Support Program-PoA (20000 plants)
Estimated Annual Emission Reduction: 40,535 tCO2e
AEPC Final stage of
validation
Promotion of the Improved Cooking Stove (ICS) Nepal
Estimated Annual Emission Reduction: 113,128 tCO2e
AEPC Under Validation
Promotion of the Improved Water Mills (IWM) - Nepal
Estimated Annual Emission Reduction: 38,699 tCO2e
AEPC Under Validation
INCREASED
ACCESS
TO ELECTRICITY

IMPROVED
HEALTH AND
SANITATION
LABOR SAVING &
DRUDGERY
REDUCTION

STRONG SOCIAL
CAPITAL AND
EMPOWERMEN
T
BETTER
EDUCATION
HUMAN
RESOURCES
DEVELOPMEN
T
INTERNALIZATION
OF RURAL ENERGY
IN DISTRICTS
POLICY, PLANNING
AND
MANAGEMENT


REDUCED
CONSUMPTION OF
TRDITIONAL SOURCE
OF ENERGY


INCREASED
EMPLOYMENT, INCOME
AND CHEAPER
SERVICES

MAJOR IMPACT
ENHANCED
LIVELIHOOD
PRESERVED
ENVIRONMENT

BIO-MASS GASIFIER (SARLAHI)
PRE STRESSED RCC POLES
PLANT SEED OIL
THREE PHASE INDUCTION GENERATOR CONTROLLER
PRESERVATIVE TREATMENT FOR MH WOODEN POLES
PUMP AS TURBINE
TURGO TURBINE
HORIZONTAL AXIS PELTRIC SET
COMPUTER AIDED DESIGN OF MICRO HYDRO SCHEME
LOW COST RURAL LIGHTING
MOTOR STARTING SYSTEM FOR MICRO HYDRO SCHEMES
GRID CONNECTION OF MICRO HYDRO SCHEME
MINI GRID CONNECTION OF MHPs
1
st
pilot project in Nepal.
Implemented by Rural Energy Development
Programme (Now, RERL)
Consultant :- Entec Consulting & Engineering,
Switzerland.
Contractor/Supplier :- Ytek Controls Inc,
Deharadun, U.K., India
Approx. Cost :- NRs. 15 millions.
K2U2MGWC Regulatory body
12
kw
22
kw
26
kw
9
kw
14
kw
25
kw
23
kw
Urja I Urja II Urja III Theule
Kalung
Urja IV U Kalung
Transmission Length: 8 Km
Transmission Voltage :11 kV
No of Power Plants connected: 7
Total Installed Capacity of the Plants: 132 kW
Total No of HH: 1400
Biggest Size of the Plant:26kW
Smallest Size of the Plant:9kW
Peak Load: 128kW(18:00-22:00)
Mini grid shall purchase the power with
respective MHFG (IPP) in the rate of Rs
2.50/kWH.
Respective IPP shall be penalized if they are
not able to supply the power as per the
agreement made with the mini grid.

S.No Domestic Consumer Minimum
Charge (NRs)
Exempt (kWH)
1 Minimum Monthly Charge 70.00 20
2 Energy Charge
A UP to 20 Units 3.50
B 20 units-250 Units 7
3 Industrial Demand /HP Per Unit(NRS)
A Induction Motor based Tariff 10 7
B Other End uses - 7
Name of the
Schemes
U.Kalun
g
(12kW)
Kalung(
22kW)
Urja I
(26kW)
Urja II
(9kW)
Urja III
(25kW)
Urja IV
(14kW)
Theule
(24kW)
Generation(k
WH)
4590 7020 8400 3720 8910 4650 7590
Maximum
Capacity(kWh)
8640 15840 18720 6480 18000 10080 17280
load Factor 53.125 44.318 44.87 57.407 49.5 46.13
43.92

Previous
Income
7510 14200 16240 6500 16200 7200 14850
Income after
Grid
Connection.
11,475 17,550 21,000 9300 22275 11625 18975
Rural Energy Systems bring positive benefits such as
better light, reduced labour and drudgery, increased
income, improved environment, better education,
better health, value addition, social harmony, etc.

MH is best means to increase access to electricity by
the rural poor.

Biogas and Improved Cooking Stoves are best means
to reduce fuel-wood consumption.
Continued.
Women's involvement is high as rural energy bring
positive changes in their lives.

Rural energy is an effective entry-point for the
poverty alleviation.

Holistic development approach is needed for the
sustainability of Rural Energy Systems.

Demand for rural energy systems is high in remote
districts
Continued
Local people are capable to implement and manage
rural energy systems with guidance and capacity
building.

Community mobilization is the key for harnessing
people's potentials, mainstreaming women and
vulnerable groups and also ensuring equity.

Decentralized institutional frameworks and
operational modalities are required for wide-scale
promotion of Rural Energy Systems.
Photo Gallery
Thank You