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US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
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SOUTH ASIAN CENTRE OF EXCELLENCE IN
MICRO HYDRO (RCEMH)
REGIONAL WORKSHOP ON MICRO
HYDROPOWER DEVELOPMENT:
PROSPECTS &
CHALLENGES IN SOUTH ASIA
U.S. AGENCY FOR INTERNATIONAL
DEVELOPMENT & NEPAL ALTERNATIVE
ENERGY PROMOTION CENTRE CO-
HOSTED WORKSHOP
IN KATHMANDU, NEPAL
Over 150 energy officials gathered in Kathmandu, Nepal to discuss strategies for microhydro electricity
generation to provide reliable energy access to villages currently lacking an economic way of powering their
homes. The U.S. Agency for International Development (USAID) South Asia Regional Initiative for Energy
(SARI/Energy) and the South Asian Centre of Excellence in Microhydro (RCEMH), through the Nepal
Alternative Energy Promotion Centre (AEPC) hosted a three-day workshop to identify and share best practices
and success stories of small-scale hydropower developments in South Asia. The audience included policymakers,
senior technical officials, and industry leaders with experience in microhydro projects from Nepal, with special
guests from Pakistan and Sri Lanka.
Left: Special Guest,
Honorable Deputy Prime
Minister Mr. Bijay Kumar
Gachhadhar, Home &
Environment Ministry.
Right: Deputy PM Kumar
prepares to do the official
lighting of the lamp to launch
the workshop.
RCEMH
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
Page 2
WORKSHOP HIGHLIGHTS The workshop concentrated on microhydro program implementation, manufacturing and installation, survey and
design, and financing. Discussions focused on best practices in the construction and operation of micro hydro and
small hydro facilities, as well as policies to support the sustainable development of electricity generation from
hydro resources.
The Challenge
There were two reoccurring themes during the workshop discussions – (1) the feasibility of connecting small and
microhydro projects to the grid, and (2) the challenge of obtaining the necessary community participation for
small and micro hydro projects to be successful. MHPs are usually located in villages located remotely in hilly
terrain serving small populations. Maintenance and installation of a grid line in these areas is extremely costly,
and bill payment is challenging. In addition, grid operators have not found complete solutions yet for maintaining
frequency control with grid connected renewables. Therefore, transmission utilities are usually reluctant to
connect these projects to the grid.
The Solution
Involvement of local communities, through village energy committees, for maintenance of transmission and
distribution lines and electricity bill payment recovery can solve these problems. Workshop participants strongly
advocated that decentralized generation and distribution in remotely located areas can be cost effective if
maintained by the local community itself. Involvement of local communities in the planning, implementation,
operation and maintenance of distributed generation projects will create sense of belongingness and
responsibility, and vested interest in the success of the project.
Another important key to solving the dilemma of how to reliably connect these small distributed generation
sources and provide electricity access to all, is cross sector involvement. It is imperative that developers,
community leaders, and the transmission system operator all work together to identify solutions. Guest speaker
Mr. Noel Priyantha, Chief Engineer (Renewable Energy) at Ceylon Electricity Board shared Sri Lanka’s
experiences in this area and strongly recommended that other countries take a similar approach – to form a
taskforce of utility, community members, developers, and other stakeholders whose goal is to identify the barriers
facing grid connection for small, rural communities (many of which rely on renewable energy sources) and
together develop frameworks for overcoming those barriers.
Inaugural Session
An inaugural session was held on September 12,
2011 in Hotel Annapurna in Kathmandu, Nepal.
Left: Dr. Narayan Prasad Chaulagain, Executive
Director of the Alternative Energy Promotion Centre,
highlights AEPC’s progress in grid connected and off-
grid renewable energy development during his keynote
remarks.
Right: Mr. David C. Atteberry, USAID/Nepal Mission
Director welcomes the delegates and highlights the
country’s need for improved energy security.
Below: Workshop participants
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
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REGIONAL CENTRE FOR EXCELLENCE IN MICRO HYDRO (RCEMH)
The aim of the RCEMH is to build upon AEPC’s and other stakeholder’s collective experience of engineering and project
development and delivery. RCEMH is designed to advise local, regional and international organizations and companies
that are pursuing micro hydro projects or designing the policy and institutional arrangement for the sector.
The objectives of RCEMH are:
To be a resource to policymakers 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 center for the micro hydro sector in the South Asia.
Be a self-sustaining center for promoting micro hydro development that will catalyze high growth of micro hydro
by addressing all-round capacity building needs for the sector.
Regional Potential
India
India has identified 15,384 MW in small hydro potential, of which 3042 MW is currently installed. Targets are
set for an additional 300 MW of added capacity per year. To support this, to date, 23 states have announced
policies for setting up commercial small hydro power plants. Most states have covered micro hydro as part of
their small hydro policies. Uttarakhand and Arunachal Pradesh have come up with specific policies for micro
hydro that mainly differs in allotment processes and eligibility. The Ministry of New and Renewable Energy
provides specific incentives for micro hydro power projects with capacities up to 100 kW and for projects with
capacities between 100 to 1000 kW. The Ministry of Power, under the Decentralized Distribution and Generation
scheme, provides
capital grants of 90%
for off-grid
renewable energy
projects including
micro hydro projects.
There is also a
growing private
sector in microhydro.
To date, 285 SHP
projects aggregating
1,423 MW have
been commissioned
by the private sector.
Nepal As a mountainous Himalayan country, Nepal is extremely
rich in hydro potential, both large and small, with over 30
years’ experience in microhydro project development. To
date, the country has built nearly 22,000 kW of installed
microhydro capacity. By 2013, the country expects an
additional 13,000 kW. The microhydro private sector of
Nepal is also developing, and is extending its products and
services inside and outside the country. However, policy
reforms are still needed to provide more support to off-grid
renewable energy options such as microhydro, and there is
a need for greater regional collaboration to scale-up the
area’s microhydro sector. Current issues facing the Nepal
Above: Nepalese speakers discuss the country’s subsidy
arrangement for microhydro project development,
including equipment transportation and support of end-
use promotion. The government is also providing
support for mapping, grid connected pilot projects,
technical support.
Right: Dr. Arun Kumar, Head, Alternate
Hydro Energy Centre, Indian Institute of
Technology Roorkee. Dr. Kumar, as a
guest speaker, provided presentations on
successful implementation modalities
used in India. Dr. Kumar, who has over
30 years’ experience in R&D in
hydropower and other renewables,
manages a multidisciplinary expert team
at the institute working for
environmental management of water
bodies like rivers and lakes for
renewable energy development.
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
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SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY (SARI/ENERGY)
The USAID/SARI/Energy program promotes energy security in South Asia through three activity areas: (1) cross border
energy trade, (2) energy market formation, and (3) regional clean energy development. Through these activities,
SARI/Energy facilitates more efficient regional energy resource utilization, works toward transparent and profitable energy
practices, mitigates the environmental impacts of energy production, and increases regional access to energy.
The Renewable Energy Partnership brings together energy sector professionals from Afghanistan, Bangladesh, Bhutan,
India, Maldives, Nepal, Pakistan and Sri Lanka to understand, identify and develop sustainable approaches to providing
low-cost efficient renewable energy to poor women and men in rural and urban areas throughout the region.
MUNDA
WARSAK
KALABAGH
TARBELA
DASU
KOHALA
MANGLA
HYDROPOWER DEVELOPMENT IN PAKISTAN
DIAMER-BASHA
DUBAIR KHWAR
KHAN KHWAR
ALLAI KHWAR
GOLEN GOL
NEW BONG
JINNAH
KEYAL
GHAZI BAROTHA
PHANDER
IN OPERATION
UNDER CONSTRUCTION
LAWI
PALAS VALLEY
SPAT GAH
BUNJI
CHASHMA
(LOCATION MAP)
GULPUR
RAJDHANI
DETAILED DESIGN & TENDER DOCUMENTS IN HAND
JABBAN
SAT PARA
NALTAR-I
KOTLI
AKHORI
KURRAM TANGI
HARPO
BASHO
184 MW, 0.61 MAF
96 MW
3600 MW, 6.1 MAF
83 MW, 0.76 MAF1000 MW,4.5 MAF
1450 MW
243 MW
600 MW, 6.0 MAF
79 MW
132 MW
100 MW
100 MW
3478 MW, 7.0 MAF740 MW, 0.90 MAF
20 MW
72 MW
70 MW106 MW
122 MW
130 MW
665 MW
121 MW
1100 MW
16 MW, 0.09 MAF
28 MW
4500 MW, 6.4 MAF
80 MW
496 MW
4320 MW
7100 MW18 MW
33 MW
HERIGHAL
53 MW
SHARMAI
115 MW
N
MATILTAN
84 MW
JAGRAN
30 MW
PATRIND
150 MW
SUKI KINARI
840 MW
MALAKAND-III
81 MW
DARGAI
20 MW
MADYAN
157 MW
GABRAL KALAM
105 MW
PROJECTS UNDER PPIB
KAROT
720 MW
AZAD PATTAN
650 MW
SEHRA
130 MW
ASRIT KEDAM
215 MW
KARRANG
458 MW
KAIGAH
548 MW
MAHL
600 MW
CHAKOTHI HATTIAN
139 MW
KALAM ASRIT
197 MW
PATTAN
2800 MW
THAHKOT
2800 MW
JUNE 2011
GENERAL MANAGER (HYDRO) PLANNING, WAPDA
YULBO
2800 MW
GOMAL ZAM
18 MW, 0.9 MAF
960 MW
TARBELA 4th Ext.
TANGUS
2200 MW
SKARDU
SHYOK/YUGO
520 MW
DESK STUDIES IN HAND
DUDHNIAL
960 MW
UNDER STUDY
READY FOR INPLEMENTATION
1600 MW
TRAPPI
32 MW
NEELUM-JHELUM
969 MW
DOYAN
490 MW
microhydro sector include a high dependency on donor fund; high cost and low affordability of the product; low
economic return due to negligible industrial use of electricity (low load factor); interconnection and grid
connection has not yet materialized; the microhydro sector is not fully commercialized yet; and there is great
difficulty in reaching out to more remote areas and marginalized people.
Pakistan
Pakistan has almost 500 microhydro
plants installed to date, providing almost
7,000 MW of electricity and serving over
59,000 households. Pakistan shares
many of the same challenges facing the
other countries – the difficulty of project
development in remote areas, lack of
domestic equipment manufacturers,
education/training deficits, insufficient
policies and tariff structures, and
inadequate funding. However,
microhydro could serve a much needed
demand for electricity access in remote,
mountainous communities.
Sri Lanka
Sri Lanka has a strong history of promoting renewables, with over 50% of
its total energy generated from renewables (which includes large hydro)
and a goal of 20% by 2020 from non-conventional renewable sources
(generation under 10 MW). To date, the country has 183 MW of installed
capacity in mini hydro projects, with over 2/3 of this under standardized
power purchase agreements. Ceylon Electricity Board credits its
framework of tax exemptions and power purchase agreements for
promoting private sector investment in renewables, including microhydro.
Of particular importance is the grid code for grid interconnection of
embedded generation. Sri Lanka has developed a rather unique model in
its allowance of private sector developers to build transmission and
distribution interconnection lines (under CEB supervision). This
arrangement has led to great success by taking advantage of the motivation
the private developer has to get the project completed and grid connected.
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
Page 5
Site Visits On the final day of the program, participants departed
Kathmandu in the early morning to drive to the Daunne Khola
microhydro demonstration scheme (MHDS) in Mangaltar. The
Daunne Khola MHDS serves about 125 households within a
small village of about 3,700 people, who otherwise rely solely
on fuel wood, kerosene, battery, and some bio-gas for their
electricity generation. In addition to a reliable power supply,
the microhydro scheme powers an agro processing mill and saw
mill that supports local industry.
Above: Mr. Haji Muhammad Farooq, a
Project Director of the Hydro Electric
Power Organization within Pakistan’s
Water & Power Development Authority
(WAPDA), receives a Buddhist greeting
from local villagers at the Mangaltar
village.
Surrounding photos: Daunne
Khola microhydro with agro
processing mill in Mangaltar
village.
Above: Delegates at the Karam Danda microhydro project in Bhimpokhari. This 17 kW project also supports agro
processing mills, as well as rural carpentry industry. With a project cost of approximately $48,000 USD, the plant
supports about 150 households.
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
Page 6
RESULTS
This three-day workshop conducted jointly with the Regional Centre of Excellence in Microhydro (RCEMH)
based within the Alternative Energy Promotion Centre in Kathmandu, Nepal, focused on best practices in the
construction and operation of micro hydro and small hydro facilities, as well as policies to support the sustainable
development of electricity generation from hydro resources. The workshop served to provide a forum for
exchanging ideas and best practices in micro hydro power and strengthen implementation of sustainable micro
hydro policies and technologies.
Specific outcomes included:
Showcasing of successful microhydro project models from India, Nepal, Pakistan, and Sri Lanka
Sri Lanka shared their model for successful project deployment, including forming task groups composed
of developers, community representatives, utility representatives, and other stakeholders to identify
barriers to small renewable grid integration and develop strategies jointly to overcome those barriers.
One important step in this process is jointly developing a grid code to further the speed and likelihood of
new small renewable projects being added to the grid. As part of this, CEB shared copies of their grid
code to workshop participants.
Mr. Kumar from IIT Roorkee offered certification and type testing models for microhydro equipment.
Nepal has been recently expanding its certification/testing programs, and can utilize Mr. Kumar’s
recommendations for following international standards for quality control as well as to potentially expand
Nepal’s export trade.
Delegates held extensive discussions on the importance of testing and certifications for turbines and other
equipment. The final day of the workshop included site visits to two microhydro projects and to a
certification/testing lab that is being built at Kathmandu University. Once completed, the center will be
conducting testing and certification of micro/mini turbines as well as development/design of mini-grids.
Below: Delegates visit Kathmandu University construction site for a new micro and minihydro turbine testing center and
laboratory. The center will be providing turbine testing, product development, and certification services to the Nepalese market,
and will serve as a meeting place for industry and researchers to collaborate. Currently, research is being conducted in sand
erosion in turbines, pump technologies, and maintenance, as well as design and development of mini-grids for efficient use of
distributed power systems.
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
Page 7
WORKSHOP PARTICIPANTS
Nepal participants:
Mr. Bijaya Kumar Gakchyadaar, Hon. Deputy Prime Minister, Government of Nepal
Honorable Minister Posta Bahadur Bogati, Ministry of Energy & Chairman, Alternative Energy Promotion
Centre
Mr. Moti Bahadur Kunwar, Joint Secretary, Ministry of Energy & Board Member, Alternative Energy
Promotion Centre
Mr. Govinda, Energy Energy Specialist & Board Member, Alternative Energy Promotion Centre
Mr. Yug Ratna Tamrakar, Director, SEC& Board Member, Alternative Energy Promotion Centre
Dr. Narayan Prasad Chaulagain, Executive Director & Board Member Secretary, Alternative Energy
Promotion Centre
Ms. Meena Khanal, Joint Secretary, Ministry of Environment
Mr. Naresh Sharma, Economist, Ministry of Environment
Mr. Mahendra Gurung, Director General, Department of Electricity Development
Mr. Bharat Poudel, Sr. Engineer, Alternative Energy Promotion Centre & Director, Regional Centre of
Excellence in Microhydro
Mr. Ram Prasad Dhital, Sr. Energy Officer, Alternative Energy Promotion Centre
Mr. Raju Laudari, Sr. Socio-Economist, Alternative Energy Promotion Centre
Mr. Nawaraj Dhakal, Sr. Training Officer, Alternative Energy Promotion Centre
Mr. Laxman Pd Khanal, Account Officer, Alternative Energy Promotion Centre
Mr. Prakash Aryal, Engineer, Alternative Energy Promotion Centre
Ms. Rojina Sharma, Engineer, Alternative Energy Promotion Centre
Mr. Raja Ram Gautam, Program Officer, Alternative Energy Promotion Centre
Ms. Sindhu Devkota, Engineer, Alternative Energy Promotion Centre
Ms. Sangita Karki, Engineer, Alternative Energy Promotion Centre
Ms. Laxmi Bhusal, Engineer, Alternative Energy Promotion Centre
Mr. Chandra Kishor Chaudhary, Account Officer, Alternative Energy Promotion Centre
Mr. Ramesh Danai, Administrative Assistant, Alternative Energy Promotion Centre
Krishna Chandra Poudel, Info. & Communication Officer, Alternative Energy Promotion Centre
Binod Acharya, Administrative Officer, Alternative Energy Promotion Centre
Sabita Aryal, Administrative Officer, Alternative Energy Promotion Centre
Sharmila Shrestha, Computer Officer, Alternative Energy Promotion Centre
Puja Mishra, IT Officer, Alternative Energy Promotion Centre
Saroj Karki, Technical Assistant, Alternative Energy Promotion Centre
Sushil Acharya, Credit Officer, Alternative Energy Promotion Centre
Narayan Prasdad Adhikari, Engineer, Alternative Energy Promotion Centre
Madan KC, Administrative Officer, Alternative Energy Promotion Centre
Mr. Lil Bhadur Moktan, Assistant, Alternative Energy Promotion Centre
Mr. Niels Julh Thomsen, Chief Advisor, Energy Sector Assistance Programme
Devendra Prasad Adhikari, Manager-MGREC, Energy Sector Assistance Programme
Rana B. Thapa, Programme, Officer-MGREC, Energy Sector Assistance Programme
Anand R. Maskey, Manager-REF, Energy Sector Assistance Programme
Karuna Sharma, Manager-ISRESC, Energy Sector Assistance Programme
Madusudan Adhikari, Manager-SEC, Energy Sector Assistance Programme
Manu Binod Aryal, ISRESC, Energy Sector Assistance Programme
Mr. Satish Gautam, National Programme Manager, RERL
Mr. Bhupendra Shakya, REA, RERL
US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022
Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org
Page 8
Krishna Prasad Devkota, TRC Member, Water and Energy Consultants' Association
Krishna Prasad Sapkota, TRC Member, Nepal Micro Hydropower Development Association
Dr. Ramesh Maskey, President, Water and Energy Consultant Association (WECAN)
Mr. Surendra Bhakta Mathema, Chairman, Nepal Micro Hydro Developer Association (NMHDA)
Mr. Kalidas Neupane, Member, Water and Energy Consultants' Association
Mr. Khimananda Kandel, Member, Water and Energy Consultants' Association
Mr. Gunaraj Dhakal, Member, Water and Energy Consultants' Association
Mr. shiba R. Laudari, Member, Water and Energy Consultants' Association
Mr. Sher Bahadur Buda, Member, Nepal Micro Hydropower Development Association
Mr. Prem Shakya, Member, Nepal Micro Hydropower Development Association
Mr. Dhan Bahadur Gurung, Member, Water and Energy Consultants' Association
Mr. Juddha Bahadur Gurung, Member Secretary, The Annapurna Conservation Area Project (ACAP)
Mr. Bharat Sapkota, Water Resource Officer, Rural Village Water Resources Management Project
Mr. Binod Prasad Shrestha, Director, REPSO/ Winrock International
Mr. Anil Manandhar, Country Director, World Wildlife Fund, Nepal
Dr. Tri Ratna Bajracharya, Director, Center for Energy Studies
Mr. Saroj Rai, Sr. RE Advisor, SNV Netherlands Development Organization - Nepal
Dr. Arabinda Dey, Executive Director, People Energy & Environment Development Association (PEEDA)
Mr. Muhan Maskey, Programme Manager PPHP, People Energy & Environment Development Association
Mr. Gaurav Dahal, Project Manager, People Energy & Environment Development Association (PEEDA)
Dr. Subarna Das Shrestha, President, Independent Power Producers Association Nepal (IPPAN)
Mr. Pradeep Poudel, Programme Officer, National Association of VDCs in Nepal (NAVIN)
Mr. Nabin Bhujel, President, Solar Electric Manufacturers Association Nepal (SEMAN)
Mr. Mahendra Chudal, Programme Manager, Centre for Rural Technology/Nepal
Mr. Dilli Ghimire, Chairperson, National Association of Community Electricity Users
Mr. Surya Psd. Adhikari, Project Manager, NHDPL
Mr. Balaram Shrestha, Director, Admin & Finance, Biogas Sector Partnership Nepal
Mr. Manoj Goyal, CEO, Clean Energy Development Bank Limited
Mr. Dinesh Dulal, Assistant Manager, Clean Energy Development Bank
Mr. Ashoke SJB Rana, Chief Executive Officer, Himalayan Bank Limited
Mr. Amrit Malla, Manager, Himalayan Bank Limited
Mr. Mrigendra Pradhan, Manager, Himalayan Bank Limited
Mr. Rajesh Bhattarai, Manager, Corporate Marketing Dept., Himalayan Bank
Mr. Kuldip Karki, Assistant Manager, Patan Branch, Himalayan Bank
Mr. Shiva Poudyal, Sr. Programme Officer, Embassy of Denmark
Mr. Gokul Gautam, Regional Co-ordinator, Resource Management and Rural Empowerment Centre
Mr. Mahendra Bhattarai, CMC, DEES Kavre
Foreign Guests:
Dr. Arun Kumar, Head, IIT Roorkee, India
Mr. Muhammad Farooq, Project Director, WAPDA, Pakistan
Mr. Noel Priyantha, Chief Engineer (Renewable Energy), Ceylon Electricity Board, Sri Lanka
For more information, contact Sarah Blanford at [email protected] or visit www.sari-energy.org.