December,2017 ANNUALPROGRESSREPORT
PROJECTPROFILE
AbouttheProject GeographiccoverageoftheprojectProject Title: Renewable Energy for RuralLivelihood
AwardID:76958
Weblink:www.aepc.gov.np
Nationallevelcoverage(Yes/No):Yes
NumberofRegionscovered:NA
NumberofDistrictsCovered:NA
NumberofMunicipalitiesCovered:NA
NumberofVDCsCovered:NA
StrategicResultsUNDPStrategicPlanOutcome:Growth&developmentareinclusiveandsustainable,incorporatingproductivecapacitiesthatcreateemploymentandlivelihoodsforthepoorandexcludedUNDPStrategicPlanOutput:Inclusiveandsustainablesolutionsadoptedtoachieveincreasedenergyefficiencyanduniversalmodernenergyaccess(especiallyoff-gridsourcesofrenewableenergy)UNDAFOutcome2:VulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotectionUNDAF/CPAPOutput2.4:VulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservicesUNDPOutput2.4.1.AEPC'scapacityenhancedforscalingupenergyservicesintheruralareas
ProjectDuration(day/month/year)
ImplementingPartner(s) ImplementationModality
StartDate:21July2014EndDate:30June2019
1.MinistryofPopulationandEnvironment,GovernmentofNepal
2.AlternativeEnergyPromotionCentre(AEPC)
NationalImplementationModality(NIM)
ProjectBudget(USD)UNDPContribution:USD2,000,000GovernmentContribution:USD30,312,500OtherContributions:USD24,249,600DonorContributions:
Donor1:USD3,000,000(GEF)Donor2:USD378,000(Norwegian)Donor3:USD99,269(Korean)
Unfunded:USD244,930TotalProjectBudget: USD35,312,500(NPR3,813,750,000)TotalProjectExpendituretill2017: USD1,296,529Budget2017: USD1,321,520Expenditure2017(GEF&UNDPonly): USD1,276,596BudgetUtilization%(2017) 97%
Name:SatishGautam Name:RamPrasadDhitalProjectManager Executive-ProjectBoardDate: Date:
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TABLEOFCONTENTCONTENT PAGENO
Abbreviation 3
ListofTables 4
1. EXECUTIVESUMMARY 5
2. BACKGROUNDANDRATIONALE 6
3. PROJECTSUMMARYANDOBJECTIVES 6
4. PROGRAMMATICREVISIONS 8
5. NARRATIVESONKEYRESULTSACHIEVEDIN2016 8
5.1ProgresstowardtheUNDAF/CPAPOutcomes 13
5.2 ProgressonProjectOutputs 25
6. BUDGETANDEXPENDITURE 44
7. CROSSCUTTINGISSUES 45
7.1 TargetingandVoice/Participationoftargetgroups 45
7.2 Genderequality,Women’sempowermentandSocialInclusion 45
7.3 NationalCapacityDevelopment 46
7.4 Sustainability 46
7.5 South-SouthandTriangularcooperation 47
7.6 Partnership 47
7.7 Promotionofcivicengagement 48
7.8 ExpandingOpportunitiesforYouth 48
7.9 Innovation 48
7.10 KnowledgeManagementandProducts 49
8. LESSONLEARNED 49
9. IMPLEMENTATIONISSUESANDCHALLENGES 50
10. PRIORITIESFOR2018 51
11. ASPECIFICSTORY 52
12. ISSUESANDRISKLOGS 53
13. PROGRESSAGAINSTANNUALWORKPLAN 57
14. ANNEX 66
• Annex1:ListofMicroHydroInstalledin2017
• Annex2:ListofISPVin2017underReliefandRehabilitation
• Annex3:ListofInstalledSolarPVin2017
• Annex4:ListofPhotoVoltaicPumpingSystemInstalledin2017
• Annex5:PhotoGallery
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ABBREVIATIONAEPC : AlternativeEnergyPromotionCentreBFI : BankingandFinancialInstitutionsBoA : BusinessOpportunitiesAssessmentCAA : CountryActionAgendaCREF : CentralRenewableEnergyFundCoP : ConferenceofPartiesDDC : DistrictDevelopmentCommitteeDEECCS : DistrictEnergyEnvironmentClimateChangeSectionDEMP : DistrictEletrificationMasterPlanDFS : DetailedFeasibilityStudyNRREP : NationalRenewableRuralEnergyProgrammeSHS : SolarHomeSystemSPV : SpecialPurposeVehiclePPP : PublicPrivatePartnershipUNDP : UnitedNationsDevelopmentProgrammeGEF : GlobalEnvironmentalFacilityGESI : GenderEqualityandSocialInclusionGIS : GeographicInformationSystemICS : ImprovedCookingStovesIGA : IncomeGeneratingActivitiesISPV : InstitutionalSolarPhotoVoltaicIP : InvestmentProspectuskW : KilowattMEP : MunicipalEnergyPlanMHP : MicroHydroPowerMSME : Micro,Small&MediumEnterprisesMQAU : MonitoringandQualityAssuranceUnitMW MegawattNEA : NationalElectricityAuthorityNPC : NationalPlanningCommissionPEUC : ProductiveEnergyUseComponentPPA : PowerPurchaseAgreementPOV : PowerOutputVerificationPV : PhotoVoltaicRERL : RenewableEnergyforRuralLivelihoodRET : RenewableEnergyTechnologySASEC : SouthAsiaSub-regionalEconomicCooperationSDG : SustainableDevelopmentGoalSEforALL : SustainableEnergyforALLSPV : SpecialPurposeVehicleUNDAF : UnitedNationsDevelopmentAssistanceFrameworkUNESCAP : UnitedNationsEconomicandSocialCommissionforAsiaandthePacificVDC : VillageDevelopmentCommitteeWB : TheWorldBank
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LISTOFTABLES
TABLENO. TITLE PAGENO
Table1: OutcomeandOutputStatements 11
Table2: ProgresstowardstheUNDAF/CPAPOutcomes 13
Table3: ListofMiniHydroProjectsunderconstruction 18
Table4: ListofMiniHydroProjectsonline 18
Table5: ListofSolarPVSystems
20
Table6: RESystemssupportedbyAEPCandRERLunderreliefandrehabilitation
21
Table7: ProgressonOutputIndicators
25
Table8: Outputwiseannualbudgetandcorrespondingexpenditure
44
Table9: SourcesoffundsBudgetandUtilizationoftheprojectperiod 44
Table10: M&EExpenditure:In2016,ProjectspendonM&Eactivities
45
Table11: RiskLogMatrix 53
Table12: IssueLogMatrix 56
Table11: ProgressAgainstAnnualWorkPlan2017 57
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1. EXECUTIVESUMMARY RenewableEnergyforRuralLivelihood(RERL)issupportingAlternativeEnergyPromotionCenter(AEPC)toremovebarriersforscalinguprenewableenergysystemssuchasminihydro,largemicrohydroandlargesolarphotovoltaicsystems(PV).RERLwasdevelopedasanintegralpartofAEPC’sumbrellaprogramme,theNationalRuralRenewableEnergyProgramme(NRREP),withtheaimtoaddressgapsinNRREPrelevanttopromotingmini-hydroandlarge-scalesolarPVprojects.RERL through its well-designed interventions has been successful in formulating policy instruments,developingdemonstrationprojects, introducing innovativewaysofengagingprivatesectorand fosteringpublicprivatepartnership.Thecumulativeimpactoftheseactivitieshaveresultedinelectricityaccessto17,590households,rehabilitationof5,995microhydropowerplantsdamagedduringthe2015earthquake,andsupporttoAEPCfortheinstallationof11,695microhydropowerplants.Inthechangedfederalcontext,RERLprovidedcriticalsupporttodefinetheroleandresponsibilitiesoflocalgovernment,whichareclearlydefinedintherecentlypromulgatedLocalGovernmentOperationsAct2017.BuildingontheAct,RERLiscurrentlyworkingwith2municipalitiestopreparetheirintegratedMunicipalEnergyPlans(MEP),helpingthemidentifytheirenergyprioritiestobeconsequentlyplannedandbudgetedinperiodicplans. Inaddition,RERLhasextensivelyhelpedAEPCtore-alignitsroles,responsibilitiesandmandatesinthechangedfederalcontext.RERLhassupportedAEPCandNepalElectricityAuthority(NEA)todevelopandadopttechnicalstandardsforgridconnectionofMicroHydroPower(MHP)andsolarPVsystems.Basedonagreedtechnicalstandards,NEAhassignedPowerPurchaseAgreements(PPA)oftwomicrohydropowerplantsforgridconnection.Inthesamecontext,withRERL’stechnicalassistance,the23kWSyaurebhumiMHPinNuwakotsuccessfullysynchronizedwiththenationalelectricitygrid,thefirstgridinterconnectionofaMHPoflessthan100kWandanunprecedentedexampleofmicrohydropowerplantscontributingtoruralelectrificationandboostingruralincomegeneratingcapacities.Similarly,thegridinterconnectionofLeguwaKholaMHPinDhankutaison-going. RERL also provided technical and financial assistance to Surya Power Company to connect its1000kWsolarPVsystemtothegrid.Furthermore,RERLalsopreparedguidelinesandmodalitiesinvolvingprivatecompaniesinminihydrodevelopmentthroughPublicPrivatePartnership.InordertodemonstratefinancialandtechnicalviabilityoflargerREsystems,RERLsupportedAEPCandtheADB-supported South Asia Sub-regional Economic Cooperation (SASEC) project to promote largemicrohydro,minihydro,microhydrointerconnectedminigridandlargesolarsystems.In2017,RERLandSASECinitiatedtheconstructionof2minihydropowerprojectswithatotalcapacityof0.4MWthatwillbenefitmorethan4,500ruralhouseholds.RERL provided technical and financial assistance to install a solar PV back-up system at the Snake BiteTreatmentCentersinNepalArmyBarracksatLetang(Morang),Itahari(Sunsari)andChariali(Jhapa).The1.5kWindividualsystemsprovideelectricitytoensureundisruptedpowersupplyforrefrigeratorsstoringlife-savingsnakevenomvaccinesthatneedtobestoredbetween2˚and8˚C,alongwithpowerfans,lightsandnebulizers.RERLisalsoassistingAEPCforcommercialoperationofMHPindifferentpartsofthecountry.InDolakhaandBaglungdistricts,RERL is assisting communities to formcooperatives for sustainableoperationandmanagementoftheirrehabilitatedMHPs.Likewise,the83kWDarnaMHPinAchhamdistrictisalsobeingsupportedforcommercialoperation.TheinnovativeideaistoorientthecommunitiestotaketheirMHPasaprofit-makingassetandtoimproverevenuegeneration.ForincreasingtherevenueoftheMHPs,RERLhasbeenworking closelywith the Productive Energy Use Component of AEPC to promotemicro and smallenterprisesutilizingavailableelectricity.Sofar,1,182enterpriseshavebeenestablishedwithAEPCsubsidy,
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318 of which received direct technical support from RERL. To ensure that women and men frommarginalizedgroupsbenefitfromaccesstoelectricity,AEPChasprovidedanadditionalsubsidytoestablishenterprises.RERLhasbeenfocusingonenhancingcapacitiesandskillsofvariousstakeholdersintheREsector,primarilysystemdesigners,fabricators,installersandoperators.Astheserviceprovidersaremainlyfromtheprivatesectors, theircapacitybuildinghasactivelypursuedbyAEPCandRERLthroughclassroomandhandsontraining, orientation and study tours. In 2017, RERL providedMicro Hydro Operators’ Trainings for 51operators locally. Decentralizing training programs has drastically reduced the cost of travel andaccommodationwhilealsoensuringmorehands-ontrainingandPeer-to-Peer(P2P)learning.Similarly,51womenentrepreneursfromEasternandMid-WesternRegionswereprovidedtrainingtoimpartknowledgeonbusinessmanagementparticularlyonentrepreneurship,bookkeepingandmarketingoftheirbusinesses. 2. BACKGROUNDANDRATIONALE
Over85%ofthepopulationofNepalhasaccesstoelectricity.However,inruralareas,itisonly60%.Mostofthe households in the country receive electricity from the national grid and about 15% from off-gridrenewableenergysourcessuchasPicoHydro(<10kW),MicroHydro(10to100kW)andSolarHomeSystems(SHS).ThoughthereisahugepotentialforMiniHydro(>100kW),veryfewprojectshavebeendevelopedinthecountryinrecentyearsduetotechnicalandoperationalchallenges. Inareaswithoutsufficienthydroresources,largersolarPVsystemswouldprovidemuchmorepotentialforeconomicgrowthcomparedtoSHS.TheGovernmentofNepal (GoN)envisagesprovidingcleancookingand lightingsolutions toallby2030,whichisalsoaSustainableDevelopmentGoal(SDG7)andSustainableEnergyforAll(SEforAll)target.Thegoal expected to achievewith both on grid and off grid solutions. GEF-UNDP RERL has been providingtechnical support to AEPC to promote mini/micro hydro and large Solar PV Systems apart from thepromotionofminigrid,productiveenergyusesandestablishingamechanismforprojectdevelopmentunderaPublicPrivatePartnership(PPP)modality.3. PROJECTSUMMARYANDOBJECTIVES
TheRenewableEnergyforRuralLivelihood(RERL)projectisfundedbyGlobalEnvironmentalFacility(GEF)andtheUnitedNationsDevelopmentProgramme(UNDP).RERLhasbeendevelopedasanintegralpartofAlternativeEnergyPromotionCentre(AEPC)’sNationalRuralandRenewableEnergyProgramme(NRREP)and thus, has been assisting in fulfilling its ambitious targets. AEPC and donors have adopted a singleprogramme framework. Thus, the NRREP represents the collective baseline activities in the country onrenewableenergy.ThespecificRenewableEnergy(RE)relatedcomponentsofthatprogramme,particularlyonMini/Micro Hydro and large solar PV systems are included in the GEF-UNDP RERL project baselineactivities.ThemainobjectiveofRERListosupportAEPCtoremovebarriersforscalingupinterventionthatpromotelesserdisseminatedlargerrenewableenergysystemssuchasminihydro,largemicrohydroandlargesolarPVsystems.RERLhasbeensupportingthedevelopmentofsustainableimplementationmodalitiessuchasdemonstrationprojects,privatesectorinvolvementforfinancingandattainmentoffinancialsustainabilitythroughpromotionofproductiveenergyuses.RERLhasbeenproviding technicalassistance todevelopmini/microhydropowerprojectswith the totalinstalledcapacityof10MWandLargeSolarPVSystemsof2.5MW.Amongthis,RERLhasdirectlysupportedbeneficiariestodevelop1MWofminihydroand0.5MWofsolarPVasdemonstrationprojects.
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TheoryofChange
Nepalhasmadesignificantachievementsindevelopingisolatedmicrohydro(lessthan100kWwithaveragecapacityof30kW)andsolarhomesystems.About15%ofthecountry’spopulationgettheirelectricityfromthesetwosources.Ontheotherhand,Nepalhasalsodevelopedlargerhydropowerprojects(>1000kW)tofeedintothenationalgrid.However,intermediaterenewableenergysystemswithcapacitybetween100-1000kWarelimited.RERLwaslaunchedbyGoN,GEFandUNDPtoremovethebarriersinpolicy,financing,sustainabilityandcapacitytopromotelessdisseminatedtechnologiessuchasminihydro(>100-1000kW), largemicro hydro (>60-100kW), large solar PV (mini grid, institutional and pumping) and mini gridsinterconnectingseveralmicrohydropowerplants.The Constitution of Nepal 2015 envisaged a three-tiered federal governance structure includingfederal,provincialandlocalgovernments.Theconstitutionmandateslocalgovernmentstodeveloprenewable energy (RE) andhydropowerprojects up to 1000kW. In this regard, AEPCwithRERLdrafted roles and responsibilities of different levels of governments for RE, which has beenincorporated in the recently promulgated Local Government Operation Act 2017. However, localgovernments have limited technical and managerial capacities to effectively carry out their rolesrelatedtoRE.Inthisline,RERLhasdraftedamethodologyfortheMunicipalEnergyPlan(MEP),whichassessesenergysupplyanddemand,andidentifiesfinanciallyfeasibleoptionstomeettheSDG7targetofreliableandaffordablecleanenergysolutionsforlightingandcookingforall.MEPwillfurtherhelpmunicipalitiestoprioritizeprojectsandallocateresourcesaccordingly.Itisexpectedthatremovingbarriers in policyand institutional arrangementswillhelppromoteminihydro and large solarPVsystemsbyattractingprivateinvestment.Furthermore,RERLhaspreparedguidelinesandmodalitiesto involve private companies in mini hydro development through Public Private Partnershiparrangement by forming Special Purpose Vehicle, which has been recognized by the RenewableEnergySubsidyPolicy2016,pavingthewayforprivatesectorinvolvementinthedevelopmentofREprojects.OneofthemainbarriersforattractingprivateinvestmentinREprojectsinruralareasistheperceivedhighrisksofcommunityownedandmanagedsystemsbyBankingandFinancialInstitutions(BFIs).RERLandCentralRenewableEnergyFund(CREF)havedevelopedinnovativefinancingmechanismssuchassoftcredit,creditguarantee,vendorfinancingandcreditinsurancetoreducetherisksofBFIsinREinvestments.AnothermajorreasonforthelackofprivateinvestmentinREsectorislowreturns.To enhance revenue generation from RE projects, RERL has been working closely with AEPC todevelop mechanisms for promotion of productive energy uses. Moreover, RERL has also beensupporting women and marginalized communities to benefit from electricity by establishingenterprisesandincomegeneratingactivitiesandswitchingfromfirewoodtoelectricityforcookingandotherhouseholdenergyneeds.RERLhasbeenworkingwithAEPCtopromotedemonstrationprojectsthataretechnicallyviableandfinanciallyattractiveforprivateinvestment.AEPC,RERLandCREFhavebeeninteractingextensivelywithBFIsandprivatecompaniestoattractinvestmentinminihydro,minigrid,largemicrohydroandlargesolarPVsystemsindifferentpartsofthecountry.RERLplanstosupportcapacitybuildingoftheprivatesectorfordevelopmentofin-countryexpertiserelatedtothesetechnologiessothataftersalesservicesarereadilyavailable.Oncedemonstrationprojectiscompleted,andit isexpectedthattheprivatesectorwillseethebenefitsininvestinginrenewableenergyinruralareas.
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4. PROGRAMMATICREVISIONS-NA
5. NARRATIVEONKEYRESULTSACHIEVEDIN2017
Deliveringrenewableenergysolutionstoimprovelivelihoodandconservetheenvironment,RERLprojecthasbeeninstrumentalinprovidingtheneededtechnicalassistancetoAEPCinrehabilitationwork,policysupport, demonstration of new pilots/solutions, productive energy use promotion and capacityenhancement.
PolicyandInstitution:RERLhasbeenworkingwithAEPCtoformulatepoliciesforrenewableenergypromotioninthecountry.Inthechangedcontextoffederalism,RERLprovidedcriticalinputstodefinerolesandresponsibilitiesofthelocalgovernmentwhichwereclearlyenshrinedintherecentlypromulgatedLocalGovernment Operations Act 2017. Building on the Act, RERL has currently been working with 2municipalities–PalungtarMunicipality,GorkhaandMahankalRuralMunicipality,Lalitpur-topreparetheirintegrated Municipal Energy Plans (MEP) with a focus on clean lighting and cooking solutions. ThemethodologytoprepareMEP,draftedbyRERL,hasbeenfinalizedwithinputsfromkeystakeholderslikemunicipalities, AEPC and partner organizations including GIZ and ICIMOD. The draft MEPmethodologyfocusedonprovisionofcleancookingandlightingsolutionforallby2030,energyforcommunityservicessuchashealthcentersandschoolsandenterprises.Themethodologyisexpectedtohelpidentifythebestsolutionsconsideringthelifecyclecostofdifferentrenewableenergytechnologies.TheRenewableEnergyfor Rural Areas (RERA) of GIZ will help selected municipalities in Provinces 1 and 7 under the sameframework.Hence,RERL’spilotinitiativeshavecontributedinmobilizingpartnerstopromulgatelocallevel
Fivekeyresultsachievedin2017
1. IntermsofPolicyandInstitution,theprojecthassupportedintheformulationofthefollowinghigh-leveldocuments:1.1. LocalGovernmentOperationAct20171.2. TechnicalGuidelinesandStandardsforgridconnectionofRETs1.3. MunicipalEnergyPlans
2. PrivateInvestmentinREProjects2.1. FinancialClosureofMiniHydroandSolarPVProjects2.2. CommercialOperationofMHPs
3. DemonstrationProjects3.1. ConstructionofMiniHydropowerProjects3.2. InstallationofSolarPVback-upinSnakeBiteTreatmentCenters3.3. GridconnectionofRETs
4. CapacityDevelopment4.1. CapacityEnhancementofAEPC4.2. DecentralizationofTraining
5. WrappingupofReliefandRehabilitationActivities
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energy planningmechanisms, thus contributing towards achievement of national targets of SustainableDevelopmentGoal7-increasingthenumberofpeoplewithaccesstoenergy.Likewise,RERLhasextensivelyhelpedAEPCtoreconfigureitsroles,responsibilitiesandmandatesinthechanged federal context vis-à-vis provincial and local governments. RERL drafted detailed roles andresponsibilitiesoffederal,provincialandlocalgovernmentsbasedontheConstitutionofNepal2015,whichwereincorporatedintherecentlyenactedLocalGovernmentOperationAct2017.Toensure sustainabilityandwiderpromotionofRenewableEnergyTechnologies (RETs) in the country,RERLhassupportedAEPCandNepalElectricityAuthority(NEA)todevelopandadopttechnicalstandardsforgridconnectionofMHPandsolarPVsystems.NEAhassignedPowerPurchaseAgreements(PPA)withtwomicrohydropowerplantsbasedontheagreedtechnicalstandard,openingupopportunitiesformicrohydro and other renewable energy technologies for grid connection. Furthermore, RERL has preparedguidelinesandmodalitiestoinvolveprivatecompaniesinminihydrodevelopmentthroughPublicPrivatePartnershipsbyformingtheSpecialPurposeVehicle(SPV),whichhasbeenincorporatedintheRenewableEnergySubsidyPolicy2016,providingaccesstosubsidyfortheprivatesector.ItisexpectedthatremovingthisbarrierinpolicyandinstitutionalarrangementswillhelppromoteminihydroandlargesolarPVsystemswithprivateinvestment.
DemonstrationProjects:To demonstrate financial attractiveness and technical viability of larger REsystems,RERLhasbeenworkingwithAEPCandSASECtopromotelargemicrohydro,minihydro,microhydrointerconnectedminigrid,largesolarsystemlikeinstitutionalsolar,solarpumpingandsolarminigridandgridinterconnectionofRETs.In2017,constructionoftwonewminihydropowerprojects,withcapacityof 0.4 MW, were installed benefiting over 4,500 households with the support from RERL and SASEC.Likewise,RERLandAEPChavebeensupportingtwootherprojectswiththetotalinstalledcapacityof0.64MW,whichexpectedtobenefit2,800households.TheseprojectshavebeendevelopedunderPPPmodalitywith financial participation of the government, commercial banks and beneficiary communities. It isexpected that these projectswill not only generate enough revenue to hire professionals for day-to-dayoperationsbutalsopaybacktheirloansontime,reducingperceivedriskofinvestingincommunityownedrenewableenergysystemsinremotelocations.RERLprovided1.5kWpsolarPVbackupsystemsatSnakeBiteTreatmentCentersinLetang,Morang,Itahari,Sunsari and Chariali, Jhapa. The system has been providing uninterrupted power supply to operaterefrigeratedstorage foranti-snakevenomvaccinesalongwith fans, lightsandnebulizers to improve thepublicservicebeingprovidedbytheCenters.Onaverage,morethan1,500snakebitecasesaretreatedbythecenterseveryyear.Acknowledgingtheremarkableimpactthissolarsystemhashadinreducingsnakebitecasualties due to disrupted services, AEPChas planned to replicate themodel by supporting PV backupsystemin25SnakeBiteTreatmentCentersinthecomingfiscalyear(2018/19).The23kWSyaurebhumiMHPinNuwakothassuccessfullybeensynchronizedwiththenationalelectricitygrid,whichisthefirstgridconnectionoflessthan100kWcapacitythussettinganunprecedentedexampleofhowmicrohydropowerplantscancontributetothegrid,therebymutuallybenefitingtheoverallgridandthe community’s income generating capacities. The 23 kW Syaurebhumi and the 40 kW Leguwa Khola,DhankutaMHPshavealreadysignedPowerPurchaseAgreementwithNEAwhereAEPCprovidedfinancialsupportforelectricalequipmentwhileRERL’sfinancialsupportforcivilworksenabledinterconnectionofthetwosystems.Thesetwoprojectshavebeenselectedforgridinterconnectionasthegridencroachedtheircatchmentsimmediatelyaftercommissioning.RERLprovidedtechnicalandfinancialsupporttoSuryaPowerCompanytoconnectits1000kWsolarPVsysteminNawalparasidistricttothegrid.ThisisthefirsttimeinNepalwhereacaptivegenerationsolarplanthasbeengridconnectedthusunfoldingpreviouslyuntappedenergysourcecontributingtoachieving
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national SDG7 target of increasing the number of grid connected solar PV systems (Indicator 7.2.1.3 ofnationalSDGtargets).Private Investment in RE Projects: CREF, with RERL support, has established innovative financialinstrumentssuchassoftcredit,creditguaranteeandinsurancetoreducetherisksofBFIstoinvestinREprojects.With theprovisionof credit guaranteemechanisms,RERLandSASEChavebeenable to realizefinancialclosureoftwominihydropowerprojectsthroughcreditfromcommercialbanksamountingtoNPR26 million1. Similarly, CREF has been supporting Sahara Nepal Cooperative (SNC) in eastern Nepal topromotedomesticsizesolarwaterpumpswithprivateequityandmicro-financelendingforbothdomesticpurposeandirrigatingkitchengardens.11suchpumpshavealreadybeeninstalledwithatotalinvestment(equalamountofequityandcredit)ofoverNPR600,000.AccordingtoSNC,thereisincreaseddemandforsmall scalesolarpumpsafter thedemonstration.Hence,CREFhasbeenworkingwithSNCandotherco-operativemicrofinancecompaniestodeveloploanproductstoservethedemand.To demonstrate financial viability of MHPs, RERL has been supporting 20 MHPs in five districts forcommercial operation wherein the micro hydro is seen not only as a social infrastructure but also acommercially feasible enterprise. RERL support includes communitymobilization, institutionalization ofMHPsandendusepromotion.AfterRERLintervention,themonthlyrevenuecollectionof83kWDarnaMHPinoneofthemostremotedistrictsofNepal(Achham)hasincreasedfivefoldsfromameagreNPR25,000.This interventionalso showed thatwithmore reliable services, customerswerewilling topay increasedtariffs.Capacity Development: RERL has been working with various stakeholders to enhance capacities topromote,develop,operateandmanageREsystemsensuringGenderEqualityandSocialInclusion(GESI).RERLhasbeendesignedtoassistinbuildingupAEPC’scapacityforwidescalepromotionoflargerRETs.BesidesupportforpolicyandinstitutionalstrengtheningofAEPC,RERLhasprovidedextensiveinputsinthedesignandformulationofGIZ fundedRERAandanupcomingDFIDsupportedprogramme.Furthermore,RERLandUNDPhavebeensupportingAEPCtogetaccreditedGreenClimateFund(GCF).Anothermajor intervention of RERL in 2017was to decentralizeMHP operator andmanager trainings.Previously, all such trainings were organized in Kathmandu which were very expensive and had noprovisions for peer-to-peer (P2P) learning. RERL organized two trainings in Babiyachaur, Surkhet;technically facilitated byMHP expert and twoMHP operators whereas facilitation onmanagement wasprovided byRERL personnel andMHPmanagement. The P2P learningwas appreciated by the trainees.Moreover,asthetrainingwasheldinruralsetting,thecostwasalmostreducedtohalf.ItishopedthattheBabiyachaurMHPwillgraduallybedevelopedasa trainingcentercateringtoMHPs intheMid-andFar-Western Regions. Promoting similar training centers in other regions will help decentralize RE-relatedtrainingsandminimizetheiroperatingcost.WrappingupofReliefandRehabilitationActivities:Afterthedevastatingearthquakesof2015,RERLhadprovisionedUSD 1million for relief and rehabilitation activities. RERL immediately provided 28mobilephonechargingsystemsinDolakhadistrict forquickrecoveryofcommunicationnetworkandconductedrapidassessmentofdamagesto140MHPsand45solarwaterpumpingsystemssupportedbyAEPC.RERLworkedcloselywithAEPCtopreparePostDisasterNeedsAssessment(PDNA)relatedtorenewableenergyfortheNationalPlanningCommission(NPC).Then,RERLfocusedonprovisionofelectricityforgovernmentoffices,healthposts,birthingcenters,schoolsandtemporarylearningcenters.Asaresult,installationof230institutionalPVsystemsandrehabilitationof56MHPswiththetotalinstalledcapacityofaround1.25MWweresupported,benefiting180,486households.
1 UN Exchange rate for December 2017 is $1=NPR 102.9
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GESI: RERL supported AEPC to formulate its productive energy use promotion modality which helpedwomenandmarginalizedcommunitiestobenefitfromaccesstoelectricitybyestablishingenterprisesandincomegeneratingactivitieswithprovisionofadditionalfinancialassistance.Untilnow,1,182productiveuseenterpriseshavebeenestablishedwithfinancialassistanceofAEPC;ofwhich1070areownedbymale,82 by female and 30 by community. These enterprises employ 2,955 people. Besides, AEPC has alsosupported 3,151 income-generating activities (IGA) benefiting 14,809 people from marginalizedcommunities.Followingtableshowsthelinkageofoutcomeandoutputstatementsoftheproject:
Table1:OutcomeandOutputStatements
OutcomeStatement OutputStatementUNDAF/CPAPOutcome2:Vulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotection
UNDAF/CPAPOutput2.4:VulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservicesUNDPOutput2.4.1.AEPC'scapacityenhancedforscalingupenergyservicesintheruralareas
ProjectOutcome1:Strengthenedlegal,institutionalandpolicyenvironmenttosupportREandotherlow–carbontechnologydevelopmentandutilization
Output1.1:ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructureOutput1.2:MethodologyanddatabasedevelopedandmadeavailableforincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplansOutput1.3:CompletedtrainingandawarenessprogrammeforrelevantgovernmentagenciesandstakeholdersonminihydroandlargescalesolarPVsystemsdevelopmentandproductiveenduse
ProjectOutcome2:IncreasedinvestmentinRE
Output2a.1:Commissionedminihydrodemonstrationprojectstotaling1MWthroughPPPmodelOutput2a.2:Commissionedminigriddemonstrationprojectstotaling300kWOutput2a.3:CommissionedlargescalesolarPVdemonstrationprojectstotaling500kWOutput2b.1:DemonstratedPPPmodelsfacilitatingcooperationbetweenprivatesector,publicsector,andlocalorganizationsthroughestablishmentofSpecialPurposeVehicles(SPV)inthreeselectedminihydroproject(1MW)Output2b.2:Demonstratedfinanciallysustainableandreliableminigridconnecting10microhydrosystems(300kW)Output2b.3:DemonstratedfinanciallysustainableandreliablelargescalesolarPVsystem(300kW)Output2b.4:Operationalized2MWofoff-gridlargemicrohydro(over60kW)powerprojectsdemonstratingcostadvantagefeasibility,productiveenduse,andbestpracticethroughtechnicalassistanceOutput2b.5:Completedfinancialclosureof7MWofoff-gridmini-hydropowerprojectsreplicatingPPPmodelthroughestablishment
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ofSPVs,demonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistanceOutput2b.6:Completedfinancialclosureof2MWoflargescalesolarPVsystems,demonstratingcostadvantageoversmallerPVsystems,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance
ProjectOutcome3a:ImprovedavailabilityoffinancialinvestmentsupportsforruralREandotherlow-carbontechnologyapplications
Output3a.1:EstablishedawholesalefinancinginstrumenttoincentivizeBankingandFinancialInstitutions(BFIs)forfinancingdomesticmanufacturerstomeetgrowingordersandbecostcompetitiveOutput3a.2:EstablishedawholesalefinancinginstrumenttoincentivizeBankingandFinancialInstitutions(BFIs)topromotecommercialfinancingformini-hydroandlarge-scalesolarPVprojects
ProjectOutcome3b:ImproveddesignandpackagingofinvestmentsupportmechanismsforruralREandotherlow-carbontechnologyapplications
Output3b.1:DesignedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturersOutput3b.2:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingformini-hydroandlarge-scalesolarPVprojectsOutput3b.3:Developedtrainingmaterialsonmini-hydroandlarge-scalesolarPVprojectsforfinancinginstitutionsOutput3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusersOutput3b.5:EstablishedfunctionalenterprisesadoptingproductiveuseofelectricityOutput3b.6:Operationalizedmechanismtopromotefinancialproductsforentrepreneurs/endusersOutput3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablished
ProjectOutcome4:EnhancedcapacitiesandskillofvariousstakeholdersintheREsector
Output4.1:Establisheddatabaseoftechnicalspecificationsforthedesign,manufactureofmicrohydro(60+kW)andminihydro,installationandaftersalesserviceinmicrohydro(60+kW)andlargescalesolarPVsystemsOutput4.2:Fullytrainedskilledandtechnicallycapablepeopleavailableforprojectidentification,feasibilitystudiesanddetaildesignofminihydroprojectsOutput4.3:Fullytrained,skilledandtechnicallycapableminihydromanufacturersinidentifiedareaswithaftersalesservicesOutput4.4:Fullytrained,skilledandtechnicallycapableconstructionandinstallationteamswithincompaniestoimprovequalityofinstalledminihydroprojectsandlargesolarPVsystemOutput4.5:Fullytrained,skilledandtechnicallycapablepeopleavailableforoperation,maintenanceandbusinessmanagementofminihydroprojectsandlargescalesolarPVsystems
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ProgresstowardstheUNDAF/CPAPOutcomes
Table2:ProgressonOutcomeIndicators
Outcomestateme
nt
Outcome
indicator
Baseline
Cumulative
Targetfor
2013-2017
Totaltargetachievedtill2015
Milestonefor2016,ifany
Achievement2016
Milestonefor2017,ifany
Achievement2017 Yearforthelatestdata
Sourceofdata
UNDAFOutput2.4Vulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservices
# of
househ
olds in
remote
areas
connect
ed to
energy
services
(UNDA
F 1
#2.4.3)
59,172
househ
olds
25,000
HHs
connecte
dto
energy
services
24,159HHsbenefitted
(2013=11965,2014=
8351,2015=3843)
30 kW
solar PV
systems
installed
;600kW
rehabilit
ation of
earthqua
ke
affected
MHPs;
financial
closure
of 500
kW mini
hydro
complet
ed
53,898
househol
ds
benefited
from
energy
services.
Financial
closure of
200 kW
initiated.
50,000 HHs
benefited from
services
provided by
Public
Institutions
that have
access to
electricityafter
earthquakes.
(1) Altogether 17,690
households connected
toelectricityaccess
(5,995 rehabilitationof
MHP + 11,695 TA
support to AEPC for
installationofMHP)
(2)53,669HHsdirectly
benefited from
electricity access to
their Health post/
Birthing Centre,
VDC/DDC Offices,
Schools, Temporary
Learning Centers,
Snake Bite Treatment
Centers
(3) 400kW Financial
Closure of Mini Hydro
completed (200kW
Simrutu Khola, Rukum
+ 200kW Giri Khola,
Jumla)
2017 UNDP
Nepal
County
Progra
m
Action
Plan
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Highlightsof2017
ProgresstowardsOutcome1:Strengthenedlegal,institutionalandpolicyenvironmenttosupportREandotherlow–carbontechnologydevelopmentandutilizationOutcome 1: This outcome focuses on formulation of policies, institutional arrangement and capacitydevelopmentofgovernmentalagencies tocreateconducivepolicyenvironment forprivate investment inrenewableenergyprojects.TheprojecthassupportedtheGovernmentofNepal,specificallyAEPCindraftingtherolesandresponsibilitiesofFederal,ProvincialandLocalLevelgovernmentsrelatingtoalternativeandrenewableenergyinthechangedcontextof federalism.RERLhasalsobeenassistingthenodalagencyindefiningtheinstitutionalstructureofalternativeenergypromotioninthenewcontext.RERLhasbeenworkingwithgovernmentagencies,includingAEPCtobuildtheircapacitytodevelopminihydroandlargersolarPVsystems.RERLhasdraftedandissupportingtwomunicipalitiesnamelyMahankalRuralMunicipality,LalitpurandPalungtarMunicipality,GorkhatopilotthepreparationofMunicipalEnergyPlan(MEP).Themethodologyforpreparingtheplantoreplicateinothermunicipalities.Similarly,theprojecthashelpedAEPCtopreparevariousconcepts,standardsandguidelinestooptimizedesign,efficientservicedeliveryandpromoterenewabletechnologies.
ProgressonOutput1.1:ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructure RERL extensively supported the drafting of theRenewable Energy Subsidy Policy 2016, which opensopportunitiesforprivateparticipationinREdevelopment.Thepolicyspecificallydiscussesthepublicprivatepartnership(PPP)modelfordevelopingREprojectsinthecountry.Supplementingthisenablingpolicy,RERLhasalsobeenworkingwithCREFtodesignandoperationalizefinancialinstrumentssuchassoftcredit,creditguarantee,vendorfinancingandcreditinsurancetofosterprivatesectorconfidenceinREinvestments.
Outcome 1: Strengthened legal, institutional and policy environment to support RE and other low – carbon technologydevelopment and utilization
Outcome 2: Increased investment in RE
Outcome 3: Improved availability of financial investment supports for rural RE & other low-carbon technology application
Outcome 4: Enhanced capacities & skill of various stakeholders in the RE sector
• Local Government Operation Act – Renewable Energy in Federal Context
• AEPC re-positioning in the federal context
• Standards for Grid connection of RETs
• Workshop on Enabling Environment for Mini Hydro in Nepal
• Piloted Municipal Energy Plan in 2 Municipalities
• Grid connection of 23 kW Micro Hydropower Plant in National Grid in Nuwakot
• Financial assistance to connect a 1MWp solar plant to the national grid in Nawalparasi
• Installed 1506.2 kWp solar PV systems in solar mini grid, pumping & institutional solar system in schools/ learning centers & government offices
• Commercial Operation of 25 micro hydropower plants
• Co-operative strengthening & Micro Finance for Simrutu Khola Mini Hydro 83
• 83KW Darna Micro Hydropower Plant (MHP) run MHP as an Enterprise
• Enhanced capacity of 40 MHP Managers including two women for commercial operation of the Micro Hydropower plant
• Training for 46 Micro Hydro Operators
• 51 women entrepreneurs trained on business management
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RERLhassupportedAEPCtodeveloptheBestAvailableTechnology(BAT)modelforruralareas.BATisincluded in the approvedRE Subsidy Policy 2016 and SubsidyDeliveryMechanism to identify themostsuitableREalternativeforpoweringruralvillages.BATexaminestheenergyservicesrequiredataparticularlocationandidentifiestheleastcostoption.ThismechanismhasbeeninpracticeafteritwasapprovedbyMinistryofPopulationandEnvironment(MoPE)in2016.Communitymanagedsystemsusecommonresourcesanditsmanagementaffectedbysocial,political,andeconomicstructures insociety.Thequalityandreliabilityofenergysupply iskey to thesustainabilityoftechnologicaloptionsadoptedforenhancingenergyaccess.Thesustainabilityofthesystemanditseconomicviabilitydependsupontheamountofreturncontributingtolocallivelihoods.Inthisbackdrop,RERLandSEforALLarecollaboratingwithUniversityofNewSouthWales(UNSW),AustraliaincarryingoutastudytoprovidethebasisfordevisingsuitablepoliceandstrategiesforAEPCthatclearlyspellsoutthetieredenergyaccessconceptandprovidessupporttoruralcommunitiesandhouseholdstoengageineconomicactivitiesandhelpuplifttheirlivelihood.In2017,AEPCandNEAsignedanMoUandorganizedcoordinationmeetingstodiscusstheactivitiesrelatedtocollaborationbetweenthetwoorganizationsspecificallyrelatedtogridconnectionofREsystemswhileagreeinganddevelopingapplicablenationalstandards.AEPC/RERL,theDepartmentofElectricityAuthority(DoEA)andNEAhavebeenworkingtogethertoprepareguidelinesforaDetailedFeasibilityStudyofgridconnectedlargesolarPVsystemprojects.TheprojecthasalsodraftedStandardsandTechnicalSpecificationsforGridInterconnectionofMicroHydroPlants(MHP).Itisenvisagedthatthegridinterconnectionofmicrohydrowillensuresustainabilitysinceadditionalrevenuewillbegenerated.RERL supported Nepal Electricity Authority (NEA) to promotemegawatt (MW) scale projects in Nepal,providedtechnicalinputsforpreparingRequestforProposal(RfP),andbidevaluation,includingfinalizationoftheenergytablesofthesubmittedproposal.NEAplanstoaddover60MWofsolarPVprojectstoitssystemnearmajorloadcenterstoreduceload-sheddinghoursandreducedependenceonimportedelectricity.Inordertoorientenergysectoractorsparticularlymicrohydroinstallersandconsultingfirmsonprivatesector led Energy Service Company (ESCO) model, RERL supported Nepal Micro Hydro DevelopmentAssociation (NMHDA) to organize national workshop on “Public Private Partnership approach fordevelopmentofMini/MicroHydroandMicroUtilityModel”.Theworkshopprovidedimportantinsightontheneedandrelevanceoftheprivatesectorinminihydroprojectdevelopment,whichwillbeasignificantshiftfromthetraditionalcommunityownedandmanagedapproach.Untilnow,theprivatesectorhasonlyparticipatedasvendorsandsuppliersofequipmentandservicesinmini/microhydroprojects.Aftertheworkshop,someoftheNMHDAmembershavestartedworkingtoidentifysuitableprojectstodevelopwiththeirandbeneficiaries’equityalongwithgovernmentsubsidyandbankloan.Toencourageparticipationofmorevendors,RERLandSASECorganizedaone-dayinteractionprogrammeinButwal on7 July 2017. InformationonAEPC’s andADB’s procurement requirements disseminated toparticipants.Altogether13engineers, techniciansandmanagementpersonnelsfromdifferentcompanies,mainlymicrohydromanufacturersandinstallers,participatedintheprogramme.AsitevisittothePhawaKhola, Taplejung was also organized. As a result, of these efforts, 4 bids for supply of equipment andconstructionofthe500kWPhawaKholaMiniHydroProjectweresubmitted.Likewise,RERL/CREFandADBorganizeda ‘matchmaking’platform inearly2017 to showcasepotentialminihydroprojects toBFIs toattractprivatefinancing.RERL, in collaboration with Practical Action Consulting and United Nations Environmental Programme(UNEP),carriedoutacasestudyonMiniHydroperformanceinNepal.Thestudyconsidered:i)currentpolicyenablers,ii)stakeholdermappingthroughParticipatoryMarketSystemDevelopment(PMSD)Framework,iii)casestudiesof6MiniHydroand2SmallHydroProjects,andiv)aHouseholdSurveytoassessconsumer
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satisfaction. The studymade recommendations for private sector led development ofmini hydro in thecountryaswellaspostconstructionsupportrequiredforsmoothoperationoftheplants.Thestudyfoundthat the 400kW Salleri Chialsa Mini Hydropower Project (SCMHP) in the vicinity of Mount Everest inSolukhumbu district was the best managed project. RERL has prepared mini hydro operation andmanagementmanualbasedon theexperienceofSCMHPwith theexpectation thatgoodpracticeswillbereplicated in AEPC supportedmini hydro projects. In addition, the SCMHPmanagement team providedorientationtoprospectivedevelopersofAEPCsupportedminihydropowerprojectsonefficientoperationandmanagement. In2017,RERLalsosupportedCREF topreparedocumentsondeprivedsector lendingceilingforminihydroandorganizedmeetingswithNepalRastraBank(NRB)toamendtheceilinglimitfromNPR10milliontoNPR30millionleadingtomostminihydropowerprojectssupportedbyAEPCqualifyingforloansunderthisprovision.Thisalsoencouragesbankstoinvestinminihydroprojects.Progress on Output 1.2: Methodology and database developed and made available forincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplansInthenewfederalsystem,municipalitieshavebeengiventheresponsibilitytodevelopsmallhydropowerandrenewableenergyprojects.BuildingonthemethodologiesdevelopedforAEPC’sDistrictClimateandEnergy Plan (DCEP) and District Electrification Master Plan (DEMP), RERL prepared a framework andmethodologyforpreparingMunicipalEnergyPlan(MEP).TheMEPpreparationprocessstartsattheWardlevelwherethestatusofelectrificationandcookingfuelinuseineachwardisidentifiedandthecosteffectivealternatives among grid extension, mini/micro hydro, solar PV, biogas and improved cooking stove isanalyzed.AggregationofWardlevelplanswillbethebasisfortheMunicipalEnergyPlan,whichwillbeGISbased.Basedonthedraftedframeworkandmethodology,RERLissupportingtwomunicipalities–PalungtarMunicipality, Gorkha and Mahankal Rural Municipality, Lalitpur – to pilot MEP preparation, in closecollaboration with GIZ’s Renewable Energy for Rural Areas (RERA) project. RERA is assisting AEPC todevelopframeworks,modalities,guidelines,manuals,etc.forpromotionofREprojectsinthenewfederalstructure.RERAwillalsosupplementRERLinitiativesbyimplementingpreparationofMEPinProvinces1&7(RERAworkingareas)underthesameframeworkandmethodology.TocalculatepotentialareasfordevelopmentofrooftopsolarPVsystemsineachlocation,RERLdevelopedasoftware/application tool “Rooftop Solar Estimator” in 2016. The software helped in alleviating existingpower deficiency in residential, commercial and industrial buildings and promoted cost effectiveopportunitiestogeneratetheirownelectricity,makingthemlessdependentonthenationalgrid.Likewise,RERLdevelopedanandroid-basedsurvey,theRenewableEnergySurveyTool,in2017toimprovethequalityofpre-feasibilityandreconnaissancesurvey.Thistooliscompatibletooperateonasmartphone,tabletandcomputer.AEPCplanstouploadthetoolonitswebsiteandmakeitmandatoryforpre-feasibilitystudies.ProgressonOutput1.3:Completedtrainingandawarenessprogrammesforrelevantgovernmentagencies and stakeholders on mini hydro and large scale solar PV systems development andproductiveenduseTo clarify roles and responsibilities of government agencies in promotion of RE in the changed federalcontext,RERLhasdraftedadocumenthighlightingrolesandresponsibilitiesoflocal,provincialandfederalgovernments,includingAEPC.Itisenvisagedthatthisdocumentwillhelpstreamlineactivitiesatdifferentlevelsofgovernance.TherolesandresponsibilitiesoftheLocalLevelinlinewiththenewConstitutionofNepal,withkeyinputsfromRERL,hasbeenreflectedintheLocalGovernmentOperationsAct2017.To fulfill the ambitious targets of GoN to provide access to clean cooking and lighting solutions to allhouseholds by 2030, in linewith SDG 7, RERL provided inputs to develop UNDP’s Country ProgrammeDocument(CPD)for2018-2022onactivitiesrelatedtorenewableenergyandinclusiveeconomicgrowth.Inthenewdocument,energyhasbeenreflectedasasignaturesolutionforimprovingresilienceagainstnatural
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disasters and climate change effects and as a means for enhancing livelihoods in rural areas througheconomicactivities.The GoN has recommended AEPC for accreditation to Green Climate Fund (GCF) and RERL has beensupportingAEPCtopreparethenecessarydocumentationinthisprocess.Asaresult,AEPChasenteredStage2oftheaccreditationprocessandtobolstertheprocess,andRERLhassupportedAEPC’sparticipationinaPeer-to-Peer workshop. Once accreditation achieved, AEPC will have access to funds for promoting REprojects.ToupscalelessonsfromimplementationofRERLonprivateinvestmentinREprojects,aconceptpaperhasbeendevelopedseekingaccesstoGCFfunds.Hydro Power Empowerment Network (HPNET) is a forum mainly of practitioners, hydropower policymakersandhydropowerregulatorsinSouthAsiaandSouth-EastAsia.RERLhasbeenengagedwithHPNETformore than 2 years in several activities and has prepared Frequently AskedQuestions (FAQ) on gridconnectionofMHPtobepublishedonlineontheHPNETwebsite.RERLhasbeensharingNepal’sexperienceinminigridandgridconnectionofREtechnologiesandpre-paidmeterswithorganizationsandexpertsfromaroundtheregion.TheregionalmeetingonSustainableEnergyforAsia-PacificLDCcountriesjointlyorganizedbytheUNOfficeof theHigh Representative for LDCs, LLDCs and SIDS (UN-OHRLLS) and the Government of Nepal,withsupport fromUNDPNepal CountryOffice on 22 and 23March 2017 in Kathmandu. The SEforALL teamprovided substantial inputs in preparation and organization of thismeeting. The RegionalMeetingwasaimedatbuildingnationalleadershiponenergysectorandcreatingstrongermulti-stakeholderpartnershipsto improve access to finance, with major highlights on the SEforALL implementation agenda, SDG 7implementation process, financing, and project development. Key stakeholders from Asia Pacific LDCcountries,internationalorganizationsandtheprivatesectorparticipatedinopendiscussionssharingtheirknowledgeandexperiencestodisseminatebestpracticesaroundtheregion.ProgresstowardsOutcome2:IncreasedinvestmentinREOutcome 2: This outcome deals with increased investment in RE projects with provision of financingmechanismsanddemonstrationoftechnicallysoundandfinanciallyviableminihydro,minigrid,largesolarPVandlargemicrohydroprojects.RERLhasbeenworkingwithCentralRenewableEnergyFund(CREF)ofAEPCtoestablish financingmechanismtoattractprivate investment inrenewableenergyprojects.CREFsupportwillinitiallygotodemonstrationprojectspromotedbyRERL/AEPC. Mostof thebudgetallocated for supportingdemonstrationprojects reallocated to supportgovernment’sreliefandrehabilitationeffortsafterthe2015earthquakes.ProgressonOutput2a:Commissioned1MWminihydro,300kWminigridand500kWlargescalesolarPVdemonstrationprojectsthroughPPPmodelOutput2aprovisionsactivitiestoestablishdifferentfinancialmechanismstoattractprivateinvestmentinrenewableenergydemonstrationprojectssupportedbyRERL.Inthisregard,RERLhassupportedCREFtoestablishandoperationalizefinancialinstrumentssuchassoftcredit,creditguaranteeandvendorfinancingforrenewableenergyprojects.WiththeclosingofdonorfundingforNRREP,AEPChasfacilitatedcollaborationbetweenRERLandAsianDevelopmentBank (ADB)-fundedSouthAsiaSub-regionalEconomicCooperation (SASEC)programme tojointlypromoteminihydroandsolarminigridprojects.RERLandSASEChavecollaboratedtosupportAEPCinidentifying7minihydropowerprojectsfordevelopment.Theseprojectsinclude500kWPhawaKholainTaplejung,184kWNamche,512kWManjoKholaand186kWBomKholaIIinSolukhumbu,200kWSimrutu
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Kholaand200kWSaniBheriKholainRukum,and200kWGiriKholainJumla.Inthisarrangement,SASECwillprovidefinancialassistance(bothloanandsubsidy)todeveloptheseprojectsandRERLwillprovidetechnicalassistancenecessaryforfinancialclosurethroughoperationandmanagementoftheprojects.RERL and SASEC, through CREF, supported the community to successfully achieve financial closure ofSimrutuKholaandGiriKholaMiniHydroProjectsinRukumandJumlarespectively.CivilBankandNepalInvestmentBankhaveprovidedcommercialcreditlineofNPR26milliontosupportthetwoprojects.RERLhasalsosupportedfinancialclosureofBagauneKholaMicroHydroProject,Rolpa.
Table3:ListofMiniHydroProjectsunderConstruction
Progress on Output2b.1: Demonstrated PPP models facilitating cooperation between sector,publicsector,andorganizationsthroughestablishmentofSpecialPurposeVehicles(SPV)inthreeselectedminihydroprojects(1MW)RERL/SASEC/AEPChasbeensupportingthedevelopmentoffollowingminihydroprojects:
Table4:ListofMiniHydroProjectsonlineProjects kW HHs District Status
LowerBomKhola 282 620 SolukhumbuSpecialPurposeVehicle(SPV)establishedEngineering drawings for civil components beingprepared
KhtayadKhola 500 3,200 Mugu TRCApproved
PatrasiKhola 500 2,500 Jumla DFSCompleted
TapKhola-II 303 2,671 Khotang Costrevision&100Mcanalcompleted
ThesoKhola 250 NA Solukhumbu DFSCompletedLungKhola 500 NA Pyuthan DFSCompleted
ChuwaKhola 1,000 NA Humla DFSOngoing
GhamiKhola 500 1,000 Mustang ABCmodelWorldBank-YetiAirlines
Total 3,835 9,991
Projects kW HHs District Status
SimrutuKhola 200 1,386 Rukum CivilworksunderconstructionInstitutionalStrengtheningofcooperativeinitiated
GiriKhola 200 1,840 Jumla NegotiationwithNIBLforcreditfundingInstitutionalStrengtheningofcooperativeongoing
PhawaKhola 500 2,093 TaplejungContract awarded for supply & installation of electro-mechanicalequipment&civilworks700Mcanalcompleted
TaraKhola 394 2,200 Baglung SpecialPurposeVehicle(SPV)establishedIntake,Canal,DesiltingBasin,Forebaycompleted
UpperJunbeshi 250 615 Solukhumbu EngineeringdrawingsforcivilcomponentspreparedConstructionofcivilworksongoing
Total 1,544 8,134
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ProgressonOutput2b.2:Demonstratedafinanciallysustainableandreliableminigridconnecting300kWmicrohydrosystemsRERLhasbeensupportingAEPCtoimplementComponent3oftheWorldBankfundedKabeliTransmissionProject.TheTaplejungMiniGridinterconnecting6miniandmicrohydropowerplantstoevacuateelectricitytothedistrictheadquartersisbeingdevelopedunderthisproject.RERLhasprovidedassistancetofinalizethedetailedfeasibilitystudyoftheprojectandtoestablishtheTaplejungMiniGridDevelopmentFunctionalGroup.RERLdesignedcontrolandprotectionsystemsforinterconnectionandparalleloperationofmicrohydropowerplantswithAEPCallocatingNPR10milliontoprocureandinstallthesystem.RERLhasalsobeensupportingthecommunitiestoprocuregoodsandservices.RERLalsoprovidedassistancetoassessbidsforinstallationof11kVtransmissionline,andpreparetheVulnerableCommunityDevelopmentPlanandEnvironmentAssessmentrelatedtotheminigrid.TheTaplejungMiniGridFunctionalGrouphasalreadycompletedtheinstallationof37kmofthe11kVtransmissionline.The23kWSyaurebhumiMHPofNuwakot,thefirstgridconnectedMHPoflessthan100kW,wassuccessfullysynchronized with the national electricity grid in 2017. The MHP has already signed Power PurchaseAgreement with NEA. AEPC provided financial support for electrical equipment and RERL providedassistance for civilworks required for interconnectionof the twosystems.AEPCandNEAhadagreed tointerconnect MHP less than 100kW with the national grid in 2015 and PPA was signed by NEA andSyaurebhumiMHPin2016.AEPC/RERLhasalsosupportedinterconnectionofthe40kWLaguwaKholaMHP,IDhankutatothegrid.InterconnectionofmicrohydrowiththegridhashelpedgenerateadditionalrevenuefortheMHPandavoidtransmissionlossesforNEA.Furthermore,havinggenerationsystemsattheendofthelinehelpedimprovevoltagequalityandsystemreliability.Basedontheexperience,NEAandAEPCwillgraduallyconnectMHPswherethenationalgridintersectsMHPserviceareas.Similarly,RERLprovidedtechnicalsupporttoAEPCforconductingfeasibilitystudyofgridconnectionof4MHPs:Thalaligad30kWandAgrigad25kWinDarchulaandPutputeKhola44kWandPutputeKholaII98kW,inSyangja.
Progress on Output 2b.3: Demonstrated large scale solar PV systems under relief andrehabilitationactivitiesandthroughTechnicalAssistance(500kWtotal)TopromotesolarPVbasedsystems,RERLcollaboratednotonlywithAEPCbutalsowithotherdifferentorganizationssothatthesystemscontinuetoreceivefinancialandtechnicalsupportaftertheinstallation.Inthis regard, partnership has been fostered with diverse organizations ranging from Nepal Army andgovernmentagencies,suchasNepalOilCorporationandDepartmentofIrrigation,tolocalnon-governmentalorganizations.AslargescalesolarPVsystemssuchassolarminigrid,institutionalsolarforschoolsandhealthposts,andsolar pumping for water supply and irrigation are relatively new in Nepal, RERL has been focusing onprovidingtechnicalassistancetoAEPCandotherinstitutionstodesign,implementanddevelopinnovativeconcepts. In2017,RERLprepared theconceptnoteonusingSolarPV topowerFuelPumpStations.Theconceptnotewassubmitted to theNepalOilCorporationunder theMinistryofCommerceandSupplies.Similarly,RERLprovidedfinancialassistancetoconnecta1MWpsolarplantinNawalparasidistricttothenationalgrid.ThisisthefirstinstanceinNepalwhereacaptivesolarplanthasbeenconnectedtothenationalgrid.Similarly,AEPCprovidedfinancialandtechnicalsupportforinstallationof15kWpgridconnectedsolarPVsystematNepalEngineersAssociationbuildinginLalitpur.Interconnectionofsmallgenerationsystemsattheendofthelinehashelpedimprovequalityofelectricityandproperutilizationofspiltenergy.
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RERLsupportedAEPCtoinstall35kWpSolarMiniGridSysteminHarkapur,Okhaldhungand25kWpSolarWindHybridMiniGridSysteminBhorleni,Makawanpur.TheprojectisfundedbytheAsianDevelopmentBank(ADB).Thoughboththesystemshavebeenoperatingwell,ithasbeenastruggletomeettheincreasingdemandofthecommunity.Inthiscontext,RERLhasconductedadetailedfeasibilitystudyforupgradationofthepromotedsolarandwindhybridminigridsystems.Inaddition,AEPCandRERLcollaboratedwithDDCMakwanpurtoestablishacooperativeinBhorlenitobringtogether140beneficiaryhouseholdstomanageandsustainablyoperatethe25kWwind-solarhybridsystem.AtAEPC’srequest,RERLcarriedoutdetailedfeasibilitystudiesofpotentialminigrid,institutionalsolarandsolarpumpingsitesinBaitadidistrict,andofpotentialminigridsitesinWardNo.1and2ofKimriVDCandWardNo.4and5ofRowaVDC,Mugu. It is expected that the solarmini gridwillhelp to fulfill the localcommunity’sdemandforelectricityandsupportsolardrivenproductiveenergyuse.RERLsupportedAEPCandSASECtodevelop13solarminigridprojects,includingsiteselection,finalizationoffeasibilitystudy,biddocumentpreparationparticularlytechnicalspecificationsandon-sitemonitoringduringtheinstallation.AsNepalhaslimitedexperienceininstallationandoperationofsolarminigrid,theseprojectswillhelpdevelopthein-countrycapacityforup-scalinginthefuture.SolarPVbasedprojectswithtechnicaland/orfinancialassistancefromRERLarelistedbelow:
S.N. Project Location District kWp Type Funding1 KamalBazaarSWMG KamalBazar Achham 31.0 SWMG AEPC2 HarrekandaSurket Surket Harrekanda 7.2 SWMG AEPC3 Chisapani Chisapani Sindhuli 35.0 SWMG AEPC/SASEC
4 TheCommissionfortheInvestigationofAbuseofAuthority(CIAA).
Naxsal Kathmandu 375.0 ISPS AEPC
5 TelkuwaSolarIrrigation Telkuwa Bara 4.0 Agro RERL6 SnakeBiteTreatmentCenter Letang Morang 2.0 ISPS RERL7 SnakeBiteTreatmentCenter Itahari Sunsari 2.5 ISPS RERL8 SnakeBiteTreatmentCenter Charali Jhapa 2.5 ISPS RERL9 NawalparasiCaptiveSolarPVplant Ranipakar Nawalparsi 1000.0 Captive
SolarPVSuryaPower
10 RamiteKhola Morang 35.0 SMG RERL11 KhtwaraHealthPost Katwara Salyan 3.0 ISPS RERL12 SimrutuHealthPost Simrutu Rukum 3.0 ISPS RERL13 KabilasiMiniGrid-SolarPumping Kabilasi Sarlahi 6.0 SMG RERL
Total 1,506.2
Table5:ListofSolarPVProjectsTheprojecthasworkedon(i)34kWp(ii)22kWpBajhangParakatneMiniGrid(iii)35kWpHariharpurGadhiSindhuliMiniGridProject(iv)30kWpRamiteKhola,Morang(v)8kWpSurkhetand(vi)30kWpKamalBazar,Achham.RERLprovided1.5kWpsolarPVbackupsystemsatSnakeBiteTreatmentCentersinLetang,Morang,Itahari,Sunsari and Charali, Jhapa. The systems provide continuous electricity to power refrigerators to storesnakebiteanti-venomvaccinesatbetween2˚Cand8˚C,fans,lightsandnebulizers.Onaverage,morethan
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1500snakebitecasesweretreatedbythecenterseachyear.Afterknowingthehugeimpactofsolarsystems,AEPChasplannedtosupportPVbackupsystemin25otherSnakeBiteTreatmentCentersinFY2074/2075.TheEnergyforEducation(E4E)concepthasbeenpilotedbyRERLintwoschoolsofDhadingandParsadistrictsin2016.Thisinitiativehasprovidedopportunitytolearnthroughaudio-visualinteractions.Aftersuccessofthepilotproject,RERLsupportedtoinstall1.5kWpsolarPVsysteminSahidChandeswhorLowerSecondarySchoolinDhanushaDistrictin2017.Besidesstudents,localwomenandmenfromdisadvantagegroupswereabletolearnabouttheuseofcomputers.Moreover,thesystemhasbeenusedinthelocalcybercafewhichhashelpedgeneraterevenueforsustainableoperationofthesystem,enhancingitspotentialtobereplicated.WithRERL’s financial and technical support,4kWpsolarPVsystem installed inTelkuwaSolar IrrigationProject inBara.TelkuwaKrishiCompany,aSpecialPurposeVehicleownedbybeneficiary farmersandaprivatecompany,ownsthesystem.In2017,RERLprovidedfinancialassistancetothecompanytoworkonvarious aspects of the vegetable value chain. This will help improve revenue generation of the project.Similarly,RERL,withthefinancialsupportfromUNESCAP,hasinstalledsolarpumpingsystemsforwatersupplyandirrigationthroughanSPVattheChepangCommunityofRaksirang,Makawanpur.RERL provided technical support to theWorld Bank and AEPC on implementation of Anchor-Business-Customer(ABC)projects.IthasprovidedGeo-codedinformationofenergyinfrastructureprojectsinNepaland helped select candidate sites for implementation. The World Bank is also considering gridinterconnectionofRenewableEnergyTechnologiesundertheproject.ReliefandRehabilitation:Underreliefandrehabilitation,RERLsupportedinstallationof72solarsystemsinschools,healthpostsandpublicofficesofearthquakeaffecteddistricts.Likewise,RERLalsosupportedtorehabilitate27MHPswithtotalinstalledcapacityof633kWand9PVPSin2017.Afterthedevastatingearthquakesof2015,RERLprovisioned USD 1 million for relief andrehabilitation activities immediately providing28 mobile phone charging systems in Dolakhadistrict for quick recovery of communicationnetwork and conducting a rapid damageassessment of 156 MHPs and 45 solar water-pumping systems supported by AEPC. RERLworked closely with AEPC to prepare PostDisaster Needs Assessment (PDNA) related torenewable energy for the National PlanningCommission (NPC). Then, RERL focused onproviding electricity to government offices,health posts, birthing centers, schools andtemporary learning centers, and also providedtechnical support to implement other AEPCsupported relief activities fundedbyDfID.RERLhas provided support on the rehabilitation of 230 suchinstitutionalPVsystemsand56 MHPs with the total installed capacity of around 1.25 MW (See Table 6). With these supports, 180,486 households have benefitted from overall energy services.
RERL AEPC GrandTotal
MicroHydro
No. 56 39 95
kW 1,337 1,417 2,754
HHs 13,143 14,170 27,313InstitutionalSolarPV
No. 72 150 175
kW 21.6 700 721.6
HHs 53,403 NA 53,403
Table6:RESystemssupportedbyAEPCandRERLunderreliefandrehabilitation
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ProgressonOutput2b.4:Operationalized2MWofoff-gridlargemicro-hydro(over60kW)powerprojectsdemonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticesthroughtechnicalassistanceRERLhasbeenassistingCommunityElectrificationSubComponent(CESC)ofAEPCtopromotelargemicrohydro projects in various ways, from conducting detailed feasibility studies to project supervision andmonitoring.In2017,AEPCsupportedcommunitiestoinstall17MHPswiththetotalcapacityof932.5kWbenefiting7,696households.RERLalsosupportedonupdatingPowerOutputVerification(POV)GuidelinesandtrainingPowerOutputVerificationInspectors(POVI).POVisanimportantmonitoringmechanismtoensurethequalityofworksdonebycontractors,whichisrequiredbeforethereleaseoffinalinstallmentofsubsidyforcompletedMHPs.However,AEPChasbeenimplementingmicrohydroprojectsinNepal.Thegovernmentsubsidieswiththeright to basic lighting approach, many micro hydropower plants are not optimally utilized. The newenterprisebasedapproachisexpectedtoencouragebeneficiariestomakeproductiveusesofelectricitysothatnotonlythelocalpeoplebenefitfromavailabilityofdifferentservicesbutalsotheMHPitselfgeneratesmore revenue tobe sustainable.Hence,RERLhas startedworkingwith thebeneficiaries in25MHPs forcommercialoperation.Detailsarediscussedinsection3b.5.ProgresstowardsOutcome3:ImproveddesignandpackagingofinvestmentsupportmechanismsforruralREandotherlow-carbontechnologyapplicationsThisoutcomedealswithimproveddesignandpackagingof investmentsupportmechanismsforruralREand low-carbon technology applications in Nepal. A detailed study carried out by RERL to identify thereasonswhyBanksandFinancialInstitutions(BFIs)werereluctanttofinanceREprojectsinruralareaandthe kind of support required to make the investment less risky. The study recommended designs andoperationalizationoffinancialinstrumentssuchassoftcredit,creditguaranteeandinsurancetohelpreducetheperceivedrisksbytheBFIsforattractingprivateinvestmentintheREsectoringeneralandcommunityownedprojectsinparticular.ThestudyhasbeenwidelydiscussedanddisseminatedwithplanstointegratethefindingswithinCREF’sBusinessPlan.AsoftcreditandcreditguaranteemechanismforfinancingminihydrodemonstrationprojectsandvendorfinancingmechanismforsmallsolarPVpumpingforirrigationhasbeenestablishedandisoperational.ItisexpectedthatmorefundwillbeavailablethroughthesemechanismstoupscaleREinNepal.ToencourageprivatesectorandBFIsinthesector,RERLjointlyorganizedanInvestors’ForumwithAEPCandAsianDevelopmentBank,adshowcasingpotentialminihydroprojects.RERLhasorganizedseveralsitevisitsforBFIsinterestedinprovidingloanstominihydroprojects.However,BFIshaveindicatedreluctancetofinanceREprojectsinruralareassofarbecausetheyconsiderthisahigh-riskventure.BFIsprimarilylackconfidenceintheprojectedcashflowoftheprojectduetoissuesontariffcollectionunlikegridconnectedprojectswherePPAprovidessomeassuranceforregularcashflowintotheproject.Theperceivedrisksareamplified with community projects because of risks with management and technical knowhow of thecommunityaswellasthelegalbasisofthecommunitygroups.To improved financial viability of mini/micro hydro projects, RERL has been working closely with theProductiveEnergyUseComponent(PEUC)ofAEPCtopromoteMSME.Thiswillhelpattractprivatesectoractorstodevelopandoperaterenewableenergyprojects.ProgressonOutput3a.1:RERL,UNCDFandCREFcarriedoutastudyofaMHPthatwasfundedbyamicrofinancecompanyinMyagdidistrictofwesternNepal.The11.5kWMHPisamongfewprojectswherehouseholdequityprovidedthroughamicrofinancecompany.Thestudyfoundthatalltheloanswererepaid
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within a year of project completionwithnodefaults. Involving local financial institutions that know thecommunityandareconfidentaboutrecoveringloansintimeisabusinessmodel,whichcouldaddresstheissuesofrisksperceivedbylargercommercialbanks.Tohelpreducelender’sdoubtsandperceivedrisks,RERL/SASEC/AEPChasbeenworkingwithcommunitiesofSimrutu,RukumandTatopani,Jumlatoinitiatemicrofinanceactivitiesamongbeneficiarywomen.Progress on Output 3b.1 and 3b.2: Designed and provided technical support for financingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturersandminihydroandlargesolarPVprojects
RERLandUNCDFhasjointlyestablishedtheREVendorChallengeFundatCREFwiththemainobjectiveofsupporting RE vendors to test, develop and scale up innovative business models for vendor finance inNepal.Thefundsupportsamaximum50%ofthetotalNPR19.67millionbudget.TheCREFhasenteredintoPerformanceBasedAgreement(PBA)withthreevendors(AsthaEngineeringSolutionPvt.Ltd.,JBSUrjaPvt.Ltd.,andGhamPowerNepalPvt.Ltd.)selectedunderstringentprocurementprocessasmentionedinthegovernment approvedVendor FinanceOperationManual. By the end of the project term (i.e. 31August2019),theselectedgranteesareexpectedtoleverageNPR113.90millionfortheinstallationof400SolarConductionDryers(SCDs),200solarpumpsforirrigationand3,000unitsofsolarhomesystemsunderPay-As-You-Go(PAYG)model.Output3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusersRERLandSASEC inpartnershipwithCREFconductedoutreachprogramstoattractcommercialcredit tominihydroprojects. InteractionprogramsbetweencommunitiesandinterestedbankswereorganizedatGiriKhola,JumlaandPhawaKhola,Taplejung.Asaresult,letterofcommitmenthasbeenprovidedbytwobanks for these projects ensuring financial closure. As a result, Giri Khola MHP has already startedconstructionandcontractforequipmentsupplyandconstructionofPhawaKholaMHPhasbeenawarded.ProgressonOutput3b.5:Functionalenterprisesadoptingproductiveuseofelectricity Inorder todisseminate informationon thebenefits of running “MHPas anEnterprise”,RERLorganizedorientationprogramsinRolpa,RukumandAchhamdistricts.Moreover, to enhance the institutional capacities of the large-scale micro hydropower projects forcommercial operation of the system, RERL worked with AEPC to support beneficiary communities forinstitutionalizationoftheirorganizationandhelpedstrengthentheircapacitiesforcommercialoperationoflargescalemicrohydropowerplantsinAchham,Bajura,Baglung,Dolakha,RukumandRolpadistricts.RERLhassupported83kWDarnaMHPofAchham.Thebeneficiarieshavestartedsellingsurpluspowerto500HHsfromneighboringKalagaunVDC.WithRERLsupport,cooperativeshavebeenformedinDarnaandKalagaunVDCs.ThetwoVDCssignedaPowerPurchaseAgreementtoexport25kWfromDarnatoKalagaun.ThepeopleofKalagaunhavemobilizedequityandgrantfromWISIONS,GermanyandtheKalagaunVDCtoconstructa11kVtransmissionanddistributionline.EfficientmanagementandelectricityexporthasmorethantripledaveragemonthlyrevenueofDarnaMHPfromNPR.45,000toNPR.150,000.Encouragedfromthisresult,RERLhasbeenworkingwiththecommunitiesinAchham,Bajura,Rukum,RolpaandBaglungforcommercial operation of 25 MHPs. Towards this, RERL organized orientation and training for 40 MHPmanagers,includingtwowomen,toenhancetheirskillsforcommercialoperationoftheplants.Thetrainingincludedcooperativeaccounting,commercialtariffsetting,computerizedbillingandproductiveenergyusepromotion.Asaresult,16MHPshavealreadystartedcomputerizedbillingwhichensurestransparencyintariffsetting,billing,collectionandaccountkeeping.
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In2015,RERLdesignedandfabricatedelectricloktaboilertohelpswitchenergysourcefromfirewoodtoelectricity.ThisinnovativetechnologywastriedfirstinGhandruk,KaskiinwesternNepalwithpowerfromanAEPCsupportedMHP.Afterthetechnologywasproventobeeasytohandleandcosteffective,electricloktaboilerswereboughtby5loktaentrepreneursfromdifferentpartsofthecountry.RERLthenworkedon lokta drying technology to reduce dependence on natural sunlight for drying lokta paper during thewinterandmonsoonseasonswhentheskyisusuallyovercast.
ProgressonOutput3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablishedSo far, RERLhas providedBusinessManagementTraining to 141women entrepreneurs. In 2017,RERLorganizedtwotrainingonbusinessmanagementfor51womenentrepreneursinBiratnagarandNepalgunjwith an objective to impart knowledge on business management, particularly entrepreneurship, bookkeeping andmarketing.Earlier in2016, anRERL studyon the impact of businessmanagement training,indicatedthatthetraininghelpedimproveentrepreneurs’’knowledgeandcapacityonaccountingandbook-keeping,accessingmarketsandcommunicationabilities.Progress towardsOutcome4:Enhancedcapacitiesandskillofvarious stakeholders in theREsectorThisoutcomefocusesonenhancingcapacitiesandskillsofstakeholdersintheREsector,thetraineesareprimarilysystemdesigners,fabricators,installersandoperators.Astheserviceprovidersaremainlyfromtheprivatesectors,theircapacitybuildinghasbeenactivelypursuedbyAEPCandRERLthroughclassroomandhands-on-training,orientationandstudytours.Progress on Output 4.5: Fully trained, skilled and technically capable people available foroperation,maintenanceandbusinessmanagement
RERLorganizedtwoMicroHydroOperators’TrainingsatKhamariKholaMHP,Babiyachaur,andSurkhet,benefitingatotalof51operatorsof51MHPs.Traditionally,operators’traininghasbeenconductedeitherinKathmanduorButwal,whichislogisticallyexpensiveandmoretheoretical.Decentralizingtrainingprogramshasdrasticallyreducedthecostoftravelandaccommodationwhilealsoensuringmorehands-ontrainingandexperiencesharingthroughPeer-to-Peer(P2P)Learning.
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5.2 ProgressonProjectOutputs
Table6:ProgressonOutputIndicators
Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Output1.1ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructure
Policydocumenton RE is inplace
RuralEnergyPolicy2006
RE Policy,GESIsensitivesubsidypolicy,subsidydeliverymechanismand draftRE ActsubmittedtoGoN
RESubsidypolicyrevisionsubmittedtogovernment
Finalization ofLocalGovernmentAct2017
LocalGovernmentOperationAct2017RenewableEnergyinFederalContext
RE Subsidy PolicyapprovedbyGON
RE SubsidyPolicy
NEABoardapprovedTechnicalStandardforinterconnectionofMHPwiththegrid
NA NA
NEABoardapprovedTechnicalStandardforinterconnectionofMHPwiththegrid
TechnicalStandard forinterconnectionofMHP
DocumentsforPowerPurchaseAgreementbetweenNEAand2MHPsubmittedtoNEA
GuidelinepreparationUtility ScaleSolar PVDevelopment
Utility Scale SolarPV DevelopmentGuidelinesinitiated
DocumentsforPowerPurchaseAgreementbetweenNEAand2MHPsubmittedtoNEA
PowerPurchaseAgreement
DraftTechnicalStandardforinterconnectionofsolarPVwithgridprepared
NA NA
TechnicalStandardforinterconnectionofsolarPVwithgridprepared
TechnicalStandardpublication
PreparedconceptdocumentstoaddressenergycrisisresultingfromborderblockadeandsubmittedtotheGoN
NA NA
PreparedconceptdocumentstoaddressenergycrisisresultingfromborderblockadepreparedandsubmittedtotheGoN
Conceptdocumentsonenergycrisis
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Output1.2MethodologyanddatabasedevelopedandmadeavailableforincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplans
No.ofintegrateddistrictREplansprepared
NA
DistrictRenewableEnergyMasterPlan(DREMP)preparedfor15DDCs
DistrictRuralElectrificationMasterPlancompletedforGorkhadistrict
Preparation ofMunicipalEnergyPlan
2 Municipal planshave beeninitiated
Municipal EnergyPlan of Gorkhadistrictcompleted
MunicipalEnergyPlan
SupportAEPCtodevelopconcepton BestAvailableTechnology(BAT)
RERL supportedAEPC to developconceptonBAT
RERL supportedAEPC to developconceptonBAT
BATreport
SupportAEPCtopreparedocumentonREin FederalContext
AEPC’s role inFederal Contextcompleted
AEPC’s role inFederal Contextcompleted
Draft AEPCAct, AEPCTransitionPaper, AEPCsupportpackage forProvincialGovernment
Output1.3Completedtrainingandawarenessprogramsforrelevantgovernmentagenciesandstakeholdersonmini-hydroandlarge-scalesolarPVsystemsdevelopmentandonproductiveenduses
No.oftrainingsconducted
NA
3casestudiespreparedand6trainingsconducted
LargeScaleSolarPVCaseStudycompleted
OrganizedWorkshop onEnablingEnvironmentfor Mini Hydroin Nepal basedon the Casestudy preparedbyUNSCAP
Workshop onEnablingEnvironment forMini Hydro inNepalorganized
LargeScaleSolarPVCaseStudycompletedWorkshoponEnablingEnvironmentforMiniHydroinNepalorganized
Case Study/Completionreport andworkshopproceeding
1trainingondesignoflargeSPVforDEECCS
NA NA1trainingondesignoflargeSPVforDEECCS
Proceedingreport
PreparationforExhibitiontocreateawarenessonREtechnologies
NEA and AEPCCoordinationMeeting
Coordinationmeetingconducted on 22August2017
PreparationforExhibitiontocreateawarenessonREtechnologies
Minutes ofcoordinationMeetingCompletionReport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
1TrainingonDFSofMiniHydroand1trainingonGISforAEPCcompleted
NA NA
1 Training on DFSofMiniHydroand1training on GIS forAEPCcompleted
Trainingreports
NA
NA
Coordinationmeetingorganizedand signed MOUfor PowerPurchaseAgreement
Coordinationmeeting organizedandsignedMOUforPower PurchaseAgreement
MOU
NA NA Asia-PacificMeeting onSustainableEnergy for LDCcountries
Asia-PacificMeeting conductedon SustainableEnergy for LDCcountries
TrainingReport
Output2a.1:Commissionedmini-hydrodemonstrationprojectstotaling1MWthroughPPPmodel
No.ofminihydrodemonstrationprojectscommissioned
NA
1minihydroprojectinitiated
RERLissupportingCREFbanksforfinancialclosure
Initiatefinancialclosureof2MiniHydroProjects
Financial closureof Simrutu andGiri Kholacompleted
RERL issupportingCREF banks forfinancialclosure Bank
Commitment/ MeetingMinutes
FinancialclosureofSimrutu and GiriKholacompleted
Output2b.1:DemonstratedPPPmodelsfacilitatingcooperationbetweenprivatesector,publicsector,andlocalorganizationsthroughestablishmentof
No.ofprojectsstrengthened
NA
5institutionsstrengthenedincludingSPVs
GuidelinesfordevelopingminihydrounderPPPmodeldeveloped
DetailedFeasibilityStudy of MiniHydroProjects
DFS of 4 minihydro projectswithtotalcapacityof 2MWcompleted
Financialclosureof2minihydrocompleted
DetailedFeasibilityReport
Initiatedfinancialclosureof2mini-hydroprojects(TapKhola2,600HHsandGiriKhola2,000)totaling500kW
GuidelinesfordevelopingminihydrounderPPPmodeldeveloped
PPPGuidelines
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
SpecialPurposeVehicle(SPV)inthreeselectedmini-hydroprojects(1MW)
Institutionalsupportfor2SPVson-going(PhawaKhola,TaraKhola)
Initiatedfinancialclosureof2mini-hydroprojects(TapKhola2,600HHsandGiriKhola2,000)totaling500kW
Bankcommitment
DFSof9minihydroprojectswithtotalcapacityof3MWcompleted
Institutionalsupportfor2SPVson-going(PhawaKhola,TaraKhola)
DFSReport
Institutionalsupportfor2SPVson-going(PhawaKhola,Tara
DFSof9minihydroprojectswithtotalcapacityof3.4MWcompleted
DFSReport
DFSof4minihydroprojectswithtotalcapacityof2MWcompleted
DFSReport
Institutionalsupportfor2SPVson-going(PhawaKhola,Tara)
BankCommitment
Output2b.2:Demonstratedfinanciallysustainableandreliablemini-gridconnectingten(10)micro-hydrosystems(300kW)
No.ofmini-gridandgridconnectionsupported-1mini-gridinterconnecting2MHPwithcapacityof218kWinGulmicompleted
NA
1Mini-gridinterconnecting10MHPwith300kWcapacity
1mini-gridcommissionedinGulmidistrictbenefiting2,300HHs
Installationof37km11kVtransmissionline
Erection ofTransmission andDistribution linecompleted
Interconnectionof2MHPinGulmicompletedErectionofTransmissionandDistributionlinecompletedinTaplejung
CommissioningReport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
-1minigridinterconnecting6MHPswiththecapacity106kWinBaglungrevived
TaplejungMiniGridDevelopmentFunctionalGroupestablished.
PilotingofGridconnectionof2MHPs
Interconnectionof23kWSayurebhumiMHPcompletedand40kWLeguwaKholaisonprocess
GridInterconnectionof23kWSyaurebhumiMHPcompleted
CommissioningReport
-Duediligenceof1MiniGridinterconnecting8MHPswiththetotalcapacityof900kWcompletedandprocurementinitiated
DuediligenceofTMGinterconnecting7MHPscompleted.Biddocumentisbeingpreparedtoprocureequipment
NA
NA
Due diligence ofTMGinterconnecting 7MHPs completed.Bid document isbeing prepared toprocureequipment
BidDocuments
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Output2b.3:DemonstratedfinanciallysustainableandreliablelargescalesolarPVsystems(500kWtotal)
LargescalesolarPVsystemsinstalledwithcapacityof500kWunderreliefandrehabilitation
NA
SolarPVsystemswiththetotalcapacityof500kWinstalled
41kWsolarPVSystemsinstalled
72institutionalSolarsystemsinstallinpublicinstitutions
Installed72InstitutionalSolar
PVSystem
31.2 kW solar PVsystems wereinstalled41 kW solar PVSystems installed8 kW directly byRERL under reliefandrehabilitationInstalled 72Institutional SolarPVSystem
ProjectMIS
NA
Installation ofSolar PVSystems atSnake BiteTreatmentCenters
1.5kW solar PVback up systeminstalled in SnakeBite TreatmentCenter at CharaliJhapa
1.5kW solar PVback up systeminstalled in SnakeBite TreatmentCenter at CharaliJhapa
ProjectMIS
8kWsolarPVinstalleddirectlybyRERLunderreliefandrehabilitation
Energy foreducation
3kW Solar PVsysteminstalledinSahid ChandeshorLower SecondarySchool atDhanusha
3kW Solar PVsystem installed inSahid ChandeshorLower SecondarySchoolatDhanusha
ProjectMIS
AssistedAEPCtodevelopbusinessplanfor18kWsolarminigridunder5P
NA
NA
AssistedAEPCtodevelopbusinessplanfor18kWsolarminigridunder5P
ProjectMIS
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
AssistedAEPCtoinitiateinstitutionalizationof15kWSolarand10kWWindHybridsysteminMakwanpur
NA NA
AssistedAEPCtoinitiateinstitutionalizationof15kWSolarand10kWWindHybridsysteminMakwanpur
ProjectMIS
Rapidassessmentof42solarpumpingsystemscompleted
Installation ofInstitutionalsolar in earthquake affecteddistricts
72 Solar installedin earthquakeaffecteddistricts
Rapid assessmentof42solarpumpingsystems andinstallation of 72solar systemscompleted
ProjectMIS
Output2b.4:Operationalized2MWofoff-gridlargemicro-hydro(over60kW)powerprojectsdemonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance
TechnicalassistanceforlargemicrohydrosystemsandTAandfinancialassistancetorehabilitateMHPsdamagedbyearthquakes
Previously
installedMHPs
1.8MWMHPinstalledandrehabilitated
2DFScompleted
Rehabilitationof MHPdamaged byearthquake
Rehabilitated 30MHPs with totalcapacity of 682kW
Total 3.25 MWelectricitygenerated (2.4MWfrom new MicroHydro + 0.66 MWfrom rehabilitatedMHP + 0.19 MWfromsolarPV)
ProjectMIS
25,000householdshaveaccesstoenergy
3,581newhouseholds(RERLandNRREP)haveaccesstoelectricity
NA NA
3,581newhouseholds(RERLandNRREP)haveaccesstoelectricity
ProjectMIS
Rapidassessmentof140MHPsaffectedbyearthquakescompleted.USD176,493forrehabilitationof31MHPs,755kW,7,500HHsforimmediate
NA NA
Rapidassessmentof140MHPsaffectedbyearthquakescompleted.USD176,493forrehabilitationof31MHPs,755kW,7,500HHsforimmediate
ProjectMIS
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
rehabilitationtransferredtoDEF
rehabilitationtransferredtoDEF
NATA for MHPinstallation
Support AEPC toestablish 25 MHPwithtotalcapacityof1229kW
SupportAEPCtoestablish25MHPwithtotalcapacityof1229kW
ProjectMIS
Output2b.5:Completedfinancialclosureof7MWofoff-gridmini-hydropowerprojectsreplicatingPPPmodelthroughestablishmentofSPVs,demonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance
DFSofminihydro
NA
DFSof1MWminihydrocompleted
DFSof5MiniHydroCompletebenefitingmorethan5,000HHs
Construction ofmini hydroprojects
Underconstruction of 5mini hydroprojectswithtotalcapacityof1.5MW
DFSof5MiniHydroCompletebenefiting morethan5,000HHs5 mini hydroprojects with totalcapacity of 1.5MWis underconstruction
Biddocument
Output3a.1:EstablishedafinancinginstrumenttoincentivizeBankingandFinancingInstitutionsforfinancingdomesticmanufacture
Financinginstrumentestablished
NA NA NA
Establishmentoffinancinginstrumentfordeveloperandmanufacturer
Financinginstrumentpreparedandestablishmentprocessongoing
Financinginstrumentpreparedandestablishmentprocessongoing
FinancialInstrument/Report
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Output3a.2:EstablishedafinancinginstrumenttoincentivizeBankingandFinancingInstitutionstocommercialfinancingforminihydroandsolarPV
NA NA NA
Demonstrationof severalfinancialinstrumentsuchas Soft Credit,CreditGuarantee,VendorFinancing, LFIFinancing &ProjectInsurance
TORforcreditfinancinghasbeenpublishedinAEPCwebsite.
TORforcreditfinancinghasbeenpublishedinAEPCwebsite.
AEPCWebsite
Output3b.1:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturers
Designoffinancialpackagefordomesticmanufacturers
NA
1gapanalysisconductedand1financialinstrumentdeveloped
Gapanalysiscompleted
CREF Businessplanprepared
Consultanthasbeenhiredtoinitiatethebusinessplan
Gapanalysisconductedanddevelopmentofbusinessplanongoing
InceptionReport
Output3b.2:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromoting
Designofcommercialfinancinginstruments
NA
2instrumentsdeveloped
Gapanalysiscompleted.Financialinstrumentsbeingdeveloped.
Finalizationof2financialinstruments(Partial CreditGuarantee andVendorFinancing)
PartialCreditGuaranteeinstrumentcompleted
GapanalysiscompletedalongwithFinancialinstruments.PartialCreditGuaranteeinstrumentcompleted
Gapanalysisreport,Financialinstruments,PartialcreditGuaranteeinstrument
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
commercialfinancingformini-hydroandlarge-scalesolarPVprojects
CreditguaranteemechanismforhouseholdscalePVpumpingsystems(PVPS)establishedatCREF.Underthisactivity,5PVPSaresupportedinChitwandistrict.
Vendorfinancinginstrumentimplemented
VendorfinancinginstrumentimplementedinChitwan
5PVPSaresupportedinChitwandistrict.VendorfinancinginstrumentimplementedinChitwan
CREF/Completionreport
NA
MiniHydrodebt/projectinsurancedevelop
Theconceptoftheproject insurancefor Mini HydroDebt developedand integratedinto CREF’smodality
CREF, with RERL support, has established innovative financial instruments such as soft credit, credit guarantee and insurance to reduce the risks of BFIs to invest in RE projects
CREFReport
Output3b.3:Developedtrainingmaterialsonmini-hydroandlarge-scalesolarPVprojectsforfinancinginstitutions
No.oftrainingmaterialsforbankers
NA1trainingmaterialprepared
Thetrainingmaterialisbeingprepared
Thetrainingmaterialspreparedandtrainingconducted
Trainingmaterialsprepared&orientationforbankofficialsorganized.15bankofficialsparticipatedinthetraining
Trainingmaterialsprepared&orientationforbankofficialsorganized,15bankofficialsparticipatedinthetraining
TrainingReport
NA
RERL,UNCDFandCREFjointlycarriedoutastudyonMicroFinancingof12kWMHPinMyagdi
RERL,UNCDFandCREFjointlycarriedoutastudyonMicroFinancingof12kWMHPinMyagdi
TrainingReport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Study on MicroFinance
NA
StudyonMicroFinancingcompleted
StudyReport
Output3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusers
No.ofplatformscreatedformatchmaking
NA
1eventorganizedand1websitedeveloped
Investor’sForumcouldnotbeorganizedasscheduledduetocontinuousstrikeandblockade
OrganizeInvestor’sForum aspostponed in2015
Investor’s Forumorganized and 2mini hydroprojects pitchedfor privateinvestment
Investor’s Forumorganized and 2minihydroprojectspitched for privateinvestment
Photos andParticipants’list
Output3b.5:Functionalenterprisesadoptingproductiveuseofelectricity
No.ofproductiveuseofelectricitysupported
NA
NRREPTarget:300
657MSMEwereestablishedbyPEUC/NRREP,RERLprovideddirecttechnicalassistancetoestablish193
ProvideTechnicalAssistance toinstallMSME
525 MSMEestablished
657MSMEswereestablishedbyPEUC/NRREP,RERLprovideddirecttechnicalassistancetoestablish193MSMEs525MSMEestablished
Report/ProjectMIS
1300newMSMEs
BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedout
1300 newMSMEs
RERL providedTechnicalAssistance toinstall1182MSME
BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedoutRERLprovidedTechnical
Report/ProjectMIS
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Assistancetoinstall1182MSME
2800MSMEsupgraded
MHPasanenterprisemodeldeveloped
MHP as anenterprisemodel inDarna,Achham
ManagementimprovementforcommercialoperationofMHP
ManagementimprovementforcommercialoperationofMHP
Report/ProjectMIS
2innovativetechnologiesforfuelswitchingfromfirewoodtoelectricitydevelopedandtested(KhuwaMaking,LoktaBoiling),1technologyunderdevelopment(NettleLeavesDrying)
Initiatedefficiencyimprovement ofelectric Loktaboiler
4 electric Loktaboiler technologyfabricated andpromoted atcommunitylevel
2 innovativetechnologies forfuelswitchingfromfirewood toelectricitydeveloped andtested (KhuwaMaking, LoktaBoiling), 1technology underdevelopment(Nettle LeavesDrying)4 electric Loktaboiler technologyfabricated andpromoted atcommunitylevel
Report/ProjectMIS
Frameworkfordevelopmentofindustrialclusterprepared.2potentialruralindustrialclustersidentified.Fieldworkon-goingin1clusterinAchham
EnhanceinstitutionalcapacityofDarnaMHP,Achhamforcommercialoperationofthesystem
Cooperative havebeen formed inDarna, Achham in2016
Frameworkfordevelopmentofindustrialclusterprepared.2potentialruralindustrialclustersidentified.Fieldworkcompleted
Report/ProjectMIS
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
CooperativehavebeenformedinDarna,Achham
9liftirrigationprojectsstudied.2liftirrigationprojects(benefitting45HHs)constructedwithEDMfundingand3underconstruction.
5liftirrigationinstallwithEDMfunding
Lift irrigationinstalled inChiuritar,Simthali, Apchaur,Jarung andChotesh VDC inDhading
9liftirrigationprojectsstudied.2liftirrigationprojects(benefitting45HH)constructedwithEDMfundingand3underconstruction.BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedoutLiftirrigationinstalledinChiuritar,Simthali,Apchaur,JarungandChoteshVDCinDhading
Report/ProjectMIS
DraftMoUbetweenAEPCandDepartmentofIrrigationtodevelopliftirrigationprojectsprepared.
CommercialOperation ofMicroHydro
CommercialOperationof25MicroHydroinDolakha,Baglung,Achham,Bajura,Rolpa&Rukum
DraftMoUbetweenAEPCandDepartmentofIrrigationtodevelopliftirrigationprojectsprepared.CommercialOperationof25MicroHydroinDolakha,Baglung,
Report/ProjectMIS
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Achham,Bajura,Rolpa&Rukum
-Locallydevelopedpre-paidmeter
NA NALocallydevelopedpre-paidmeter
Report/ProjectMIS
-EnergyconsumptionpatternofMHPsbeingstudied.
NANA
EnergyconsumptionpatternofMHPsbeingstudied.
Report/ProjectMIS
Support toinnovativetechnologies forfuel switchingfrom firewoodtoelectricity
LoktaDryerinstalledinGhandruk
LoktaDryerinstalledinGhandruk
Report/ProjectMIS
Value Chain forTelkuwa SolarIrrigation
ValueChainforTelkuwaSolar
Output3b.6:Operationalizedmechanismtopromotefinancialproductsforentrepreneurs/endusers
No.oftrainingandorientationstowomenandmarginalizedgroups
NA
2trainingorientationsconducted
Conceptnoteprepared
MicroFinanceInstitutionalmapping
Draft reportsubmitted
Draftreportprepared
Draftreport
SupportBaglungminigridcooperativetoworkasMFItopromoteend-use
Trainingonco-operativestrengtheningconducted
Conceptnote;Trainingreport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydroinitiated
Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydrocompleted
Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydrocompleted
Report
Output3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablished
No.oftrainingandorientationstowomenandmarginalizedgroups
NA
2trainingorientationsconducted
43womenfromEasternandWesternDevelopmentRegionswereprovidedenterprisemanagementtraining.
Impact study ofPEUonwomen
Impact study ofPEU on womencompleted
ImpactstudyofPEUonwomencompleted
Studyreport
74womenand80menbenefittedfromskillbasedtrainingontailoring,computereducationandbakery.
Businessmanagementtraining formarginalizedwomen
51womentrainedon businessmanagement
74womenand80menbenefittedfromskillbasedtrainingontailoring,computereducationandbakerywhile51womentrainedonbusinessmanagement
TrainingReports
NA
OrientationforcommercialoperationandinstitutionalstrengtheningtoselectedmicrohydropowerplantmanagementcommitteeinBaglung
25 participantstrained oncommercialoperation andinstitutionalstrengthening
25participantstrainedfromcommercialoperationandinstitutionalstrengthening
TrainingReport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
NACooperativemanagementtraining formicrohydro
55 participantstrained oncooperativemanagement ofmicrohydro
55participantstrainedoncooperativemanagementofmicrohydro
TrainingReport
Output4.1:Createdaknowledgebaseoftechnicalchallengesandopportunitiesinthedesign,manufacture(formicro-hydro(+60kW)andmini-hydro),installationandafter-salesserviceinmicro-hydro(60+kW),mini-hydroandlargescalesolarPVsystems
No.ofmonitoringandqualityassurancemechanismandframework
NA
1gapanalysis,1monitoringsystem,2qualityassurancemechanism,1frameworkdeveloped,and1workshopconducted
1gapanalysisonmanufacturingofminihydrocomponentsinthecountrycompleted.
NA NA 1gapanalysisonmanufacturingofminihydrocomponentsinthecountrycompleted.
Gapanalysisreport
2monitoringandqualityassurancemechanismformini/microhydroandsolarPVdeveloped.
NA NA
2monitoringandqualityassurancemechanismformini/microhydroandsolarPVdeveloped.
Sustainabilityframeworktestedand1workshoporganizedtofinalizeit.Pilotingon10MHPsinitiated.
Sustainabilityframeworktestedand1workshoporganizedtofinalizeit.Pilotingon10MHPsinitiated.
RemotemonitoringsystemforlargeSolarPVdeveloped.
Installationof3RemoteMonitoringSystems
3RemoteMonitoringSystemscompletedinSindhuli,OkhaldhungaandKathmandu
3RemoteMonitoringSystemscompletedinSindhuli,OkhaldhungaandKathmandu
Installedsiteandcompletionreport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
PowerOutputVerificationGuidelinesofAEPCupdatedandPOVforminihydroincluded.Trainingforengineersinitiated
66engineerstrainedonfieldlevelmonitoringsystem
66engineerstrainedonfieldlevelmonitoringsystem
TrainingReport
RemotemonitoringsystemforsolarPV
RemotemonitoringsystemforsolarPVdeveloped
RemotemonitoringsystemforsolarPVdeveloped
Software
Output4.2:Fullytrained,skilledandtechnicallycapablepeopleavailableforprojectidentification,feasibilitystudiesanddetaileddesignofmini-hydroandlarge-scalesolarPVsystems
No.oftrainingandmanualsfordevelopingskilledandtechnicallycapablepeople
NA
4trainingand2manualsprepared
1trainingondesignofminihydrocompleted.25engineersweretrained.
Preparation ofPower OutputVerification(POV)Guidelineandtraining
POV Guidelineprepared and 25engineerstrained
POVGuidelinepreparedand50engineerstrained
POVGuidelineandTrainingreport
10engineersfromsolarequipmentvendorsweretrainedondesigninglargesolarPVinstallations.
Orientation toPVPSTechnicians
Orientation to 11PVPSTechnicians
10engineersfromsolarequipmentvendorsweretrainedondesigninglargesolarPVinstallationswhile11PVPStechniciansoriented
Trainingandorientationreports
Output4.3:Fullytrained,skilledandtechnicallycapableminihydromanufacturersinidentifiedareas
No.ofnewtechnologiesforminihydro
OldELC,DLC,and
Turbine
2ELC,2DLCand1turbinetechnologydesigned
DigitalELCformicrohydrodevelopedandtestedinthelaboratory.
ImplementationofdigitalELConpiloting of gridconnection ofMHP
Procurementprocessongoing
Digital ELC formicro hydrodeveloped andtested in thelaboratoryProcurementprocess to
Reports
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
andtheirafter-salesservices
implement digitalELCongoing
Output4.4:Fullytrainedandtechnicallycapableconstructionandinstallationteamswithincompaniestoimprovequalityofinstalledmini-hydroprojectsandlargesolarPVsystem
No.oftrainingforinstallationoflargemicrohydro
NA1trainingconducted
Trainingoninstallationoflargemicrohydropowerplantswith20participantsconducted. NA NA
Trainingoninstallationoflargemicrohydropowerplantswith20participantsconducted.
TrainingReport
TrainingmanualfordesignandinstallationoflargesolarPVsystemsisbeingprepared.
TrainingmanualfordesignandinstallationoflargesolarPVsystemsisbeingprepared.
Manual
NAHouseWiringTraining
30 technicianstrained on housewiring at RukumandBiratnagar
30 technicianstrained on housewiring at RukumandBiratnagar
TrainingReport
NA
Refreshertrainingonmicrohydrooperators
63 micro hydrooperators trainedon operation ofmicrohydro
63 micro hydrooperators trainedon operation ofmicrohydro
TrainingReport
Output4.5:Fullytrained,skilledandtechnicallycapablepeopleavailableforoperation,maintenanceandbusinessmanagementofmini-hydroprojectsandlargescalesolarPV
No.ofpeopletrainedinminihydro,largemicrohydroandlargescalesolarPVsystem
NA
60peopletrainedand3trainingsconductedonREasbusiness
NA
Conduct microhydro operatortraining
29 micro hydrooperators trainedon managementandoperation
29 micro hydrooperators trainedon managementandoperation
TrainingReport
ConductO&MtrainingforEQaffectedMHP
17microhydrooperatorstrainedonmanagementandoperation
17microhydrooperatorstrainedonmanagementandoperation
TrainingReport
ConducttrainingonbusinessmanagementforMini-hydroandlarge-scale
29womenentrepreneurstrainedonbusinessmanagementtraining
29womenentrepreneurstrainedonbusinessmanagementtraining
TrainingReport
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Outputstatement
Outputindicator
Baseline
CumulativeTargetfor2013-2017
Progressupto2016
2017Milestone
2017Progress
Cumulativeprogressupto
2017
Meansofverification
solarPVsystems
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6. BUDGETANDEXPENDITURE Thefollowingtableshowstheoutputwiseindicativebudgetandexpenditurefor2017andthesourcesoffundsbudgetedandutilized.
Table8:Outputwiseannualbudgetandcorrespondingexpenditure AmountinUS$Output Annual
BudgetAnnualExpenditurethroughproject
AnnualExpenditurethroughUNDP
TotalExpenditure
BudgetUtilization%
Output1.1 56,050 46,641 0 46,641 83%Output1.2 8,600 8,167 0 8,167 95%Output1.3 6,800 6,747 4,000 6,747 99%Output2b.1 506,100 503,547 9,550 513,097 103%Output2b.2 49,000 49,034 0 49,034 100%Output2b.3 217,235 112,453 94,871 207,324 96%Output2b.4 40,500 39,669 0 39,669 98%Output2b.5 20,500 20,400 0 20,400 100%Output3b.1 21,500 21,140 0 21,140 98%Output3b.3 500 456 0 456 91%Output3b.5 45,300 36,189 0 36,189 80%Output3b.7 11,000 11,853 0 11,853 108%Output4.1 3,150 2,975 0 2,975 94%Output4.2 7,200 7,005 0 7,005 97%Output4.3 2,000 1,897 0 1,897 95%Output4.4 9,200 9,193 0 9,193 100%Output4.5 42,000 40,796 0 40,796 97%SEforALL 71,035 44,319 17,362 61,681 Programsupport 203,850 133,687 58,645 192,332 99%
Total 1,321,520 1,096,168 184,428 1,276,596 97%
Table9:SourcesoffundsBudgetandUtilizationoftheprojectperiod
`
Fundingperiod(Start–EndDate)
TotalProjectBudget
Expenditureupto2014 Expenditure
upto2015Expenditurein
2016Expenditurein
2017
Totalexpendituretill
2017
TotalBudgetutilization%
BudgetBalanceUS$
UNDP July2014–Dec2019 2,000,000
66,946355,601 297,054 796,624 1,516,225 73% 1,280,573
Donor1GEF
July2014–Dec2019 3,000,000
144,846737,836 1,325,606 420,502 2,628,790 88% 793,395
Donor2Korean
Jan2015–June2016 99,269
099,269 0 0 99,269 100% 0
Donor3:Norwegian(SEforALL)
Dec2015–Dec2017 378,000
00 79,043 59,470 138,513 37% 298,785
Total 5,477,269 211,792 1,192,706 1,701,703 1,276,596 4,382,797 298,785
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Table10:M&EExpenditure
TotalspentonMonitoringCostsassociatedwithUNDP/projectstaff,consultants,projectpartners,supportingnationalstatisticalsystemsindesigningprojectspecificdatacollectionmethodologies(qualitativeandquantitative),monitoringmethodsincludingstakeholdersurveysandotherqualitativemethods,collectionofdata,analysisanddisseminationofthefindingstoinformaproject,eitherwithprojectpartnersortofulfillspecificUNDP/projectrequirements(preferablytheformer).
Total cost spent on project staffandmonitoringvisit indifferentprojectareas=USD76,403
TotalspentonDecentralizedEvaluationsCostsassociatedindesigning,implementinganddisseminatingevaluationsforspecificprojects
USD5,670spendforimplementation,upgradingandevaluationfortheprojectactivities
CombinedtotalspentonM&E USD82,073 NarrativeonProgressrelatedtoBudgetandExpenditureIn2017,RERLallocatedUSD1,250,485(excludingSE4ALLactivities)tocarryoutvariousactivitiesofwhichUSD800,000wasfromUNDP’sTRACfundandUSD450,485fromGEFfund.ThisyearRERLutilized97%oftotalbudget.7. CROSSCUTTINGISSUES
7.1 Targetingandvoice/ParticipationofTargetgroupsThemaintargetgroupsofRERLsupportarepeoplelivinginoffgridareas.AllRERLactivitiesarerelatedtopromotion of larger renewable energy systems for provision of modern energy in such areas throughenabling environment for participation of the private sector in project development. Further, at theoperationallevel,RERLhashelpedAEPCtoprepareGESIsensitiveSpecialPurposeVehicle(SPV)formationguidelines,whichensuresequalparticipationofwomenandmarginalizedgroupsindecisionmaking.TherevisedRESubsidyPolicyandDeliveryMechanismprovidesadditionalfinancialassistancetovulnerableanddisadvantagedgroups,peopleliveninginremotelocationsandwomenheadedhouseholds.7.2 GenderEquality,Women’sEmpowerment,andSocialInclusion
Towardsachievingthenationalgoalofbuildinganequitableandgenderinclusivesocietybyensuringequalrights towomenandmenofall castes, creedandregions in thesocial,politicalandeconomicaspectsofnationaldevelopment,AEPChasbeenpromotingGESIsensitiverenewableenergyprojectsandproductiveend-use applications. The revised subsidy policy and delivery mechanism provide additional financialassistancetosinglewomenheadedandotherdisadvantagedhouseholds.
RERL has been supporting AEPC to mainstream Gender and Social inclusion (GESI) in RE projects,particularlyminihydro,largemicrohydroandsolarPVsystemstobenefitmarginalizedgroupswithaccesstoelectricityandincomegeneratingactivities.RERLhasbeenworkingwithextremelymarginalizedChepangcommunityinDhadingdistricttosupportthemwithaccesstoelectricityfromsolarPVsystems.Likewise,
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RERLiscurrentlyworkingwithChepangcommunityinMakwanpurdistricttoinstallsolarpumpingsystemsunderthePublicPrivatePartnershipmodality.
RERLhasprovidedtrainingsto141womenentrepreneursonBusinessManagementtobuildknowledgeonbusinessmanagement,particularlyonentrepreneurship,bookkeepingandmarketingofproducts.RERLhasalsobeenworkingonmodification/adaptationandfieldtestingofproductiveusetechnologiestofit the rural context formarginalizedpopulation. In2017,LoktaDryerwas fabricatedand installed.Thistechnology helps reduce dependence on natural sunlight for drying lokta paper which is unpredictableduringthewinterandmonsoonseasons.7.3 NationalCapacityDevelopmentRERL has been working mainly on capacity development of AEPC to develop plans, implementationmodalities and implementation management of their respective components. The project has beensupportingAEPCtopromotelessdisseminated,yethighlyfeasible,renewableenergytechnologieslikeminihydro,largemicrohydroandlargescalesolarPVandproductiveenergyuses.In2017,RERLsupportedAEPCtodraft roles and responsibilities of different levels of government related to alternative and renewableenergyandsmallhydro.ThishasbeenreflectedintherecentlypromulgatedLocalGovernmentOperationsAct2017.Besides AEPC, RERL has also been working with relevant governmental agencies to promote lessdisseminatedREtechnologies likeminihydroandlargesolarPV.AEPC,NEAandDoEDhavejointlybeendevelopingdesignguidelinesforgridconnectedofmegawattscalesolarPVsystemswithkeyinputsfromRERL.RERLisessentiallyanationalcapacitydevelopmentprojectaimedtoproviderequiredcapacityforNPCandrelevant government stakeholders to implement and realize SEforALL objectives in the nationaldevelopmentagenda.Ittargetstoenhancemulti-stakeholdereffortstobringsynergisticactivitiestoachievethecommongoal.EnergyhasbeenthecoretothedevelopmenteffortsofNepalandthegovernmenthasexpresseditscommitmentforthisinitiativeaswellasSDG7.TheprojectsupportedNepaltoparticipateinCOP23heldinBonn,Germany.Oneofthemajoroutcomesofthiseventisthedecisionbytheleastdevelopedcountries(LDCs)toinstitutionalizeRenewableEnergyandEnergyEfficiencyInitiative(REEEI)tomeetSDG7targets.7.4 Sustainability Theprojecthasbeenstrengtheninglegal,institutionalandpolicyenvironmenttosupportrenewableenergyandotherlow-carbontechnologydevelopmentandutilizationthroughformulationofpolicy,planningandinformation dissemination that would create an enabling environment especially for promotion ofminihydro and solar mini grid systems. In terms of enhancing renewable energy financing, RERL has beenworkingcloselywithCentralRenewableEnergyFund(CREF)toestablishdifferentfinancialinstrumentstoattract private investment in larger RE projects. The project has been aligned with AEPC’s mandate,objectivesandactivities.AdetailedstudywasconductedonBFIsinvestmentsinREingeneralandruralareasforaccesstoelectricitywhich recommended various instruments including establishment of SPV under the Public PrivatePartnership(PPP)modelinvolvingtheprivatesector, localgovernmentandcommunityorganizationsforbuilding,operatingandmanagingdemonstrationprojects.FinancialInstrumentssuchassoftcredit,creditguarantee,vendorfinancing,projectinsurance,amongotherswerealsorecommendedbythestudy.RERLinitiatedestablishmentofvendorfinancingmechanismatasmallscaleforpromotinghouseholdlevelsolarirrigationandworkedjointlywithUNCDFtoprepareVendorFinancingManualforscalingup.Tomake
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surethatCREFisfullyoperational,RERLandUNCDFhavebeensupportingthepreparationofitsbusinessplanspellingoutitsareaofoperationandresourcesrequired.Itisenvisagedthattheseactivitieswillsupporttoremoveexistingbarrierstoprojectfinancingfromtheprivatesectorandinjectmorecreditintoprojectsthusmoving from a subsidy drivenRE promotion to amoremarket driven approach ensuring financialsustainability of the promoted systems, which will ultimately enhance the livelihood opportunities andoptionsforlocalcommunities.Theprojectwillensurethatanumberofmicro,smallandmediumenterprises(MSME)are functional in theREproject areasandconsumesubstantial amountof electricitywhichalsocontributes to financial sustainability of RE projectswith affirmative interventions to promotewomen’sorganizations and women-led business to have access to finance for operating MSMEs. To develop thecapacitywithinthecountryforlargersolarPVandminihydropowerprojects,RERLhasbeensupportingprivatecompanies,consultants,engineersandtechnicianswithskilltrainingandestablishedguidelinestoensureatleast33%participationwerewomen,marginalizedandpeoplefromvulnerablecommunities.Sofar,93engineers,ofwhich8women,weretrainedonlargescaleSolarPVforgridconnection,PowerOutputVerificationofmini/microhydro,MHPoperationandmanagement,andREfinancing.7.5 South-SouthandTriangularCooperationHydro Power Empowerment Network (HPNET) is a forum mainly of practitioners, hydropower policymakersandhydropowerregulatorsofSouthAsiaandSouth-EastAsia.RERLhasbeenengagedwithHPNETfor more than 2 years in several activities and has prepared Frequently Asked Questions (FAQ) to bepublishedontheHPNETwebsitefocusingonvariousmisconceptiontogridconnectionofMHP.RegionalmeetingonSustainableEnergyforAsia-PacificLDCcountrieswasjointlyorganizedbytheUNOfficeof theHigh Representative for LDCs, LLDCs and SIDS (UN-OHRLLS) and the Government of Nepal,withsupport fromUNDPNepal CountryOffice on 22 and 23March 2017 in Kathmandu. The SEforALL teamprovided substantial inputs in preparation and organization of thismeeting. The RegionalMeetingwasaimedatbuildingnationalleadershiponenergysectorandcreatingstrongermulti-stakeholderpartnershipstoimproveaccesstofinance.TheSEforALLimplementationagenda,SDG7implementationprocess,projectdevelopmentandfinancing,andopendiscussionamongkeystakeholderswerethemajorhighlightsoftheprogram. Theworkshop brought together key stakeholders in the energy sectors fromAsia Pacific LDCcountries, international organizations and the private sectors to share knowledge and experiences anddisseminatebestpracticesfromaroundtheregion.7.6 PartnershipsTheWorldBank:AlternativeEnergyPromotionCentre (AEPC)has been implementing theWorldBankfundedRenewableEnergyComponentofKabeliTransmissionProjectinTaplejung,withadditionaltechnicalassistancefromRERL.This includes installationof900kWminigridproject interconnecting8MHP.Themini grid, once completed will provide electricity to the district headquarters benefiting over 2000households.UNESCAP:UnderPro-PoorPublicPrivatePartnership(5p)Modality,18kWBaidiSolarMicroGridhasbeeninstalledinDubung,Tanahunbenefiting140households.ThisprojectisthefirstoneinNepaldevelopedbyaSPV,andownedbybeneficiarycommunityandaprivatecompany.RERLhashelpedtheSPVtopreparebusinessplansof20enterprises.Inaddition,RERLhasalsobeensupportingAEPCtopromoteSolarPVbasedwatersupplysystemsinRaksirangVDCofMakawanpurdistrictunderthe5PprojectbyleveragingUNESCAPfinancialassistance.UNEP/ Practical Action Consulting Ltd.: With technical assistance from AEPC/ RERL and financialassistancefromUNEP,PracticalActionConsultingLtd.carriedoutacasestudyofmini/smallhydropower
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(bothoff-andon-grid)inNepaltosupportAEPCinformulatingpoliciesandimplementatingaframeworktopromote mini hydro projects in Nepal. The case study documents and shares experiences of differentbusinessmodelsforboth‘onandoff-grid’minihydrodevelopment;andexploresrolesofvariousenablersandstakeholderstocreateanenablingenvironment.UNDP/Norway:RERLhasbeenassistingUNDPto implementSE4ALLactivities inNepal.GovernmentofNorwayhas provided financial assistance to carry out different activities under SE4ALL. So far, CountryActionPlanhasbeenpreparedandsharedwithdifferentstakeholders.UNCDF:RERLandCleanStartofUNCDFhavebeensupportingCREFtoprepareitsBusinessPlanthatwillhelp to chart the way forward. Likewise, RERL and UNCDF are preparing Vendor Financing Manual topromotesmallREsystemsthroughprivatesectorinvolvement.In2017,RERLandUNCDFsupportedCREFtoestablishVendorFinancingChallengeFund.TheFundhasalreadycalledforproposalsfrominterestedprivatecompanies.7.7 PromotionofcivicengagementAtthefieldlevel,RERLhasdirectlybeenworkingwithbeneficiariesfollowingthemuch-acclaimedREDP’scommunityempowermentmodel -where thecommunityprovidedcloseandconsistentsupport tobuildtheircapacityandtoengageinallaspectsofservicedeliveryrangingfromprojectidentification,planning,implementation,management,operationandmonitoring.
RERL has been supportingmunicipalities to preparemunicipal energy plans in participatory approach,engagingindividuals,electedofficials,civilsociety,privatesectors,governmentallineagenciesanddonors. 7.8 ExpandingopportunitiesforyouthAccesstoelectricityinruralareasbringsopportunitiestoestablishvarioustypesofenterprises.RERLhasbeensupportingProductiveEnergyUseComponent(PEUC)ofAEPCtopromoteenduseactivities,whichtypicallyattractyoungmenandwomeninterestedinstartingtheirownbusiness.Poultry,carpentry,metalshop,bakery,communicationcentersandagro-processingmillsarethemostpopularenterprisesinruralareas.
In 2017, the Hult Prize Challenge provided the opportunity to host a local Hult Prize event on campusallowingthewinningteamtofasttracktheirideasthroughregionalfinalsofthecompetition.ThechallengeforHultPrizewastobuildascalable,sustainableenterprisethatharnessesthepowerofenergytotransformthelivesof10millionpeopleby2025.RERLsupportedthreeHultPrizeEventsinPokharaUniversity,SchoolofManagement,TribhuvanUniversityandInstituteofEngineering,PulchowkCampus.Moreover, RERL has been providing internship opportunities to young professionals to be involved inrenewableenergyrelatedactivities. In2017,onefemaleengineerworkedwithRERLtofinalizetechnicalguidelinesandcollectionofhouseholdinformationonenergyconsumption.7.9 InnovationRERLhasbeenattheforefrontininnovatingtechnologiesaswellasapproachesforpromotionofrenewableenergyinNepal.ThisincludesremovingbarriersforpromotionoflargescaleREsystemssuchasminihydroand large solar PV projects. RERL has also been supporting AEPC for sustainable operation of microhydropowerprojects.Inthisregard,RERLhascomeupwiththeconceptof‘RenewableEnergyforEnterprisePromotionandRenewableEnergyPromotionasanEnterprise’.ThemainconceptwastolookatREprojects
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not only as social infrastructures but also as profit making assets. RERL has been piloting MHP as anenterpriseconceptinseveralMHPsbystrengtheningtheinstitutionalcapacities,exploringopportunitiesforoptimumutilizationofelectricityandbuildingpositiveincentivesinmanagementprocesses.RERLhasalsobeenworkingonadaptationormodificationof technologies to fit theruralcontext.Theseproductive end use technologies help fuel switching from traditional biomass to electricity. Thesetechnologieshavebeenunderfieldtestingforwiderdisseminationamongstakeholders.Topromotetheuseofinformationandcommunicationtechnologies(ICT)inallaspectsofrenewableenergydevelopment,RERLhasbeenworkingwithyounginnovatorsinNepaltodevelopmobilephoneapplications.RERLdevelopedbothAndroidandiOSbasedNepalSolarCalculatorthatallowedcalculationofsolarpowerrequiredandinformationoncosts,subsidyandnearestvendors.In2016,incollaborationwithInternationalCentreforMountainDevelopment(ICIMOD),smartphoneapplicationsforfieldsurveyofminigridprojects(microhydroandsolar),calculationofareaforrooftopsolarPVinstallationandremotemonitoringofsolarPV systemswere developed. These applicationswill be used in project identification and pre-feasibilitystudies. 7.10 KnowledgeManagementandProducts
• LocalGovernmentOperationsAct2017• MethodologyforMunicipalEnergyPlan• RenewableEnergySurveyTool(REST)• DocumentaryonSnakeBiteTreatmentCenter• http://www.aepc.gov.np• http://np.undp.org/RERL• http://www.undp.org• http://kathmandupost.ekantipur.com/news/2016-11-04/puffs-of-hope.html• http://epaper.thehimalayantimes.com/index.php?pagedate=2017-5-
28&edcode=71&subcode=71&mod=1&pgnum=2• http://reliefweb.int/report/nepal/united-nations-nepal-news-insight-may-jun-2017-vol-64• http://nagarikplus.nagariknews.com/epaper/src/epaper.php?id=3072#page/20• http://peeda.net/downloads/energy-insight-a-yearly-publication-of-peeda-volume-iii-2016/8. LESSONSLEARNED
Asprivatedevelopershaveverylimitedspacetoworkinsmall-scalerenewableenergysystemsinNepal,thereisagenerallackofknowledgeandexperienceamongboththegovernmentandtheprivatesector.Asapilot, two projectswere completed by AEPC recently, inwhich, private companies partneredwith ruralcommunities inTanahunandKhotang toestablishSpecialPurposeVehicleanddevelopsolarminigrids.These systems connected 223 communities with electricity. Further, RERL partnered with WinrockInternationaltopromotehouseholdsizesolarirrigationsystemsinChitwandistrict.AlltheseexperiencesindicatethatthereareentrepreneurswillingtoinvestinREgivenanenablingandfavorableclimate.Privatesectorattractedtotechnologiesandsystemsthathavestrongreturnsoninvestmentandarescalable.Toencourage private investment, projects should be carefully selected, financing arrangements should beproperlydesignedandbureaucraticred-tapismmustbereduced.Thereisampleevidencethatsomeprivatecompaniesarewillingtotakereasonableriskstopromotetheirtechnologies.FrequentchangesinNPCanditssecretariatstaffhaveaffectedtheworkprogressofSEforALL.AssignmentofdesignatedfocalpersonforSEforALLwouldhelpalleviatethehumanresourcegaps.
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9. IMPLEMENTATIONISSUESANDCHALLENGES
• ReluctanceofBFIsinprovidingcredit:BanksandFinancingInstitutions(BFIs)inNepalareriskaverseand do notwant to invest in renewable energy systems in rural areas, particularly those owned andmanagedbyacommunity.AnRERLstudyidentifiedreasonsfortheirriskaversenessandrecommendedseveralfinancialinstrumentstoattractBFIinruralenergyinvestment.RERLhasbeenworkingwithCREFtodevelopandestablishfinancinginstrumentssuchassoftcredit,creditguarantee,vendorfinancing,andprojectinsuranceamongothers,toattractBFI’sinvestmentinrenewableenergysystemsinruralareas.
• Delayinapprovalofsubsidyanddeliverymechanism:RevisionofRESubsidyPolicytookmoretimethanexpectedduetofrequentchangesingovernment.ThisdelayhasaffectedfinancialclosureofRERLsupportedprojectsandthusimplementation.Asthegovernmenthasrecentlyapprovedboththepolicyanditsdeliverymechanism,itisexpectedthatprojectimplementationin2017willbefasterthanin2016.
• CREFnot fully operational: Credit facilities are necessary to attract private investment and achievetimely financial closureof largerprojects likeminihydro.Lackof available creditwithCREFhasalsohamperedontimefinancialclosure.AEPCisforwardingcreditfacilitytoCREFfromADBfundedSASECtopromoteminihydroandsolarminigrids.ThiswillhelpinachievingfinancialclosureofRERLsupportedprojectstoo.
• AdoptionofPEUinREProjects:Reliabilityandqualityelectricitysupplywerefewofthemajorreasonsfor reluctance of rural entrepreneurs to invest in productive energy use enterprises in RE projects.Further,lackofprofessionalmanagementofcommunityownedREsystemsandlimitedmarketinruralareasforlocalproductshavealsobeencitedasreasonsforlowinvestment.RERLhasbeenworkingwithPEUCofAEPCtorealizetheconceptofenergyasanenterpriseaswellasforenterprises.Forexample,the83kWDarnaMHP,AchhamisoperatedasanenterpriseandwillexportpowertoneighboringKalaGaunVDCwhichdoesnothaveresourcesofitsowntoproduceelectricity.Itisexpectedthatwithextensivesupportonawareness,capacityenhancementandtransparentgovernance,mostoftheMHPssupportedbyAEPCcouldbeencouragedtowardscommercialoperation.
• SEforAll:SEforALLprojectpersonnelhavenotbeenabletobephysicallypresentatNPCduetolackofofficespace,afterNPCSecretariatbuildingwasseverelydamagedin2015.Aftertheearthquake,NPC’spriorities focused on recovery and reconstruction, which has affected SEforALL activities. Similarly,frequent changes in NPC leadership and alterations in responsibilities of officials have affectedimplementationofSEforALLcapacitybuildingprojectactivities.Inspiteofthechallenges,adraftCountryActionAgendahasbeenpreparedandsharedwithstakeholders.
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10. PRIORITIESFOR2018• RenewableenergyinFederalstructure
- CapacityDevelopmentofLocalandProvincialGovernments- PreparationofMunicipalEnergyPlan- PreparationofDraftAEPCActandTransitionalPlan
• DemonstrationProjects- 1.5MWMiniHydroDemonstrationProject- TaplejungMiniGrid- GridConnectionofLeguwaKhola&ChimalMHPs- KfWfundedPVPS&SASECfundedSolarMiniGrid
• OperationalizationofREFinancingInstruments- FinancialClosureofMiniHydroProjects
o PhawaKholao LowerBomKholao KhtayadKholao PatrasiKhola
• CommercialOperationofMHPs- DemandSideManagement–Pre-Paid&SmartMeterinstallation- InstitutionalStrengthening- BusinessManagementTraining- ComputerizedBillingSystem- DecentralizedMHPOperator&ManagerTraining
• GESI- Electriccooking,water&spaceheating–fieldtesting- Skilltrainingforwomenandmarginalizedentrepreneurs
• MiniHydroManagementTraining• TrainingforPrivateSectoronMiniHydroProjectDesign,InstallationandAfterSales
Services
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11. ASPECIFICSTORY
Mr. Poorna Gurung, resident of Gandruk, Kaski, Central Nepal, was inspired to start a business utilizing the lokta plant, daphne, which is abundantly available in the local area. Lokta plant grows at an altitude between 1600 and 4000 meters in the hills of Nepal. The evergreen shrub is used to make handmade paper. In 2002, Mr. Gurung set up a factory in his family field by investing NPR 400,000. After the lokta bark is cleaned with a knife, it is soaked in water for five hours. Then, it is cooked in a solution of hot water and soda for three hours. A beater machine turns the fiber into pulp slurry, which is then poured into wooden frames. After a few minutes of soaking and shaking in the vat, the frame is placed under the sun to dry to make paper, which is a prized item as it is durable, resistant to insects and moths, and non-perishable. It is for this reason that for centuries, lokta paper has been used for record-keeping in government offices across Nepal. Nowadays, however, the paper has been used for making different products, including prayer flags, restaurant menus, wallpapers, certificates, traditional incense wicks, cards and binding books. For years, Gurung had used firewood to boil the raw material. It was not only cumbersome, but also detrimental to the environment. “It was expensive in many ways. I had to spend NPR 2,000 on firewood, which needed to be chopped into smaller pieces. And while cooking, one had to constantly blow air into the hearth,” he recalled. With support from the Alternative Energy Promotion Centre (AEPC), Mr. Gurung bought a beater machine and an electric lokta boiler, which was locally fabricated with AEPC funding. He received NPR 78,750 as a subsidy from AEPC and the 50-kilowatt Bhurgyu Khola Micro Hydropower Project, which started generating electricity three years ago, electrified his factory. The electric boiler has not only replaced firewood but has also reduced boiling time by almost half, making the work more efficient. A group of five local Dalit women, most of them single mothers, is Gurung’s reliable and skilled workforce. Among them is Ms. Sita Bishwakarma, who has proven to be a great manager, overseeing the entire production processes. Ms. Bishwakarma, who earns a monthly salary of NPR 7,000, says the money is enough to support her family of three, including her children’s education. “We used to work the field and it was very hard to survive with what we earned. This is far better,” she says.
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12. RISKANDISSUELOGS
Table11:RiskandIssueLogMatrix
S.N.
Description Category(financial,political,operational,
organizational,environmental,
regulatory,security,strategic,other)
Likelihoodofrisk(scaleof1to5with5beingthemostlikely)
A
Impact(scaleof1to5with5beingthehighestimpact)B
Riskfactor(AxB)
Mitigationmeasuresifriskoccurs
DateriskisIdentified
LastUpdated
Status
1 ThenewConstitutionofNepal2015envisages7provincesand744municipalitiesinthecountry.REistheresponsibilityofthemunicipalities.Inthiscontext,AEPC’srolerelatedtoREprojectsdevelopmentandimplementationisstillunclear.
PoliticalandRegulatory
3 5 15 RERLisactivelyworkingwithAEPCandothergovernmentalagenciestodefinerolesandresponsibilitiesofinstitutionsatdifferentlevelsofgovernanceviz.municipalities,provincesandfederal.Inthisregard,insteadofpreparing15DEMP,RERLwillworkwithmunicipalitiestoprepare15MEMP.However,duetothemunicipalelections,theyareyettobefullyoperational.ThiswilldelayRERL activitiesatthelocallevel.RERLhasbeensupportingrecentlyelectedmunicipalpersonneltounderstandREdevelopmentin Nepal andtheirrolesandresponsibilities.
October2015
December2017
LocalGovernmentOperationActMethodologyofMunicipalEnergyPlan
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2 Thishasdelayedfinancialclosureandconsequentlyprojectdevelopment.Toovercomethissituation,AEPCrecentlydecidedtobroadenitsbankingpartnersbeyonditsexisting7partnerbanksbymakingall28Class‘A’and‘B’bankseligibletoinvestinREprojects.
Financial 5 5 25 AlthoughRERLsupportedCREFtodesignandestablishnewfinancialtoolssuchassoftcredit,creditguarantee,vendorfinancing,etc.,creditflowfordemonstrationprojectshavenotbeenforthcomingasexpected,onlyoneminihydropowerprojecthasachievedfinancialclosure.IthasbeenfoundthattheCREF’spartnercommercialbanksarequiteconservativeandriskaverseespeciallywhenitcomestoinvestingincommunityownedREprojects.
14October2017
14October2017
• Delayinfinancialclosureofminihydroprojects
3 NRREP,thebaselineprojectofRERL,hasphasedouton30June2017.Theprojectwasnotabletoachievemanyofitsambitioustargetsincluding25MWsof
Operational 3 3 9 AEPChasdevisedamechanismforSASECandRERLtocoordinatetheiractivitiesfordevelopmentofminihydroandsolarminigridprojects.ItisexpectedthattheRERLtargetswillbemetfromtheseprojectswithfinancialsupportfromSASEC.
30June2017
December2017
• REprojectsarenotfinanciallyattractive
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mini/microhydro.ThishasadverselyaffectedRERLtargetstoo.
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Table10:IssueLogMatrix
S.N. Type DateIdentified
DescriptionandComments
Resolutionmeasuresrecommended
Statusoftheissue StatusChangeDate
1 Geo-politicalchangesduetostateRe-structuring
December2017 Delayinimplementationofprojectactivitiesduetolongtransitionperiod.Municipalitiesareyettobefullyfunctional.
AEPC/RERLwilltakeinitiativetoorientprovincialandLocalGovernmentstoinitiateREactivities.
RERLisactivelyworkingwithAEPCandothergovernmentalagenciestodefinerolesandresponsibilitiesofinstitutionsatdifferentlevelsofgovernanceviz.municipalities,provincesandfederal.
March2018
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13. PROGRESSAGAINSTANNUALWORKPLAN2017
UNDAFOutcome2:Vulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotection UNDAFOutput2.4:Vulnerablegroupshaveimprovedaccesstosustainableproductiveassetsandenvironmentalservices UNDP/CPAPOutput2.4.1:AlternativeEnergyPromotionCentre'scapacityenhancedforscalingupenergyservicesinruralareas
EXPECTEDOUTPUTS
Activities PlannedActivities DonorName AnnualachievementsofTargets
Annual achievements
of Targets
in %
ApprovedBudget
fromAWP
AmountSpent
%ofexpenditureagainsttheapproved
budget
Remarks(if
targetnotfully
achieved)
ActivityResult1:Strengthenedlegal,institutional,policy,planning,
andinformatio
nenvironm
entensuresincreased
REinvestmen
tandutilization
AnnualTargets:Comprehe
nsive
Activity1.1.1SupportpreparationandadoptionofpolicythatenablesPPPmodelformini-hydro,micro-hydromini-grid,andlarge-scalePVdevelopment,thusattractingtheprivatesectortosuchprojects
InstitutionalArrangementinFederalstructure
GEF
• WorkshoponNepal'sRenewableEnergyinFederalContextconducted
100% 1,000 1,017 102%
• StudyonInstitutionalArrangementforREinLocalDevelopmentActinFederalStructurecarriedout
100% 2,500 2,419 97%
NationalWorkshoptodisseminatePPPapproachfordevelopmentofMini/MicroHydro
GEF
• Interactionworkshopon“opportunityandchallengesofmicro/minihydroprojectpromotioninoff-gridutilitymodel”conducted
100%
2,800 2,743 98%
ProjectImplementationModelforPrivateSectorLedMiniGridEnergyaccessProject(PPPmodel)
GEF
• PreparationofprojectOperationalManualforSREP-SupportBusinessModelforPrivateMiniGridEnergyAccessProjects
100%
2,350 2,350 100%
1,000 971 97%
Activity1.1.2Supportpreparationandadoptionofpolicyforfuturegridconnectionofoff-
TechnicalSpecificationforGridconnectionofSolarPV
UNDP
• Standards&TechnicalSpecificationsforGridInterconnectionofMHPupdated
100%
5,000 4,834 97%
GEF • MeetingondraftPOMforABCProjectsorganized
700 667 95%
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RenewableEnergyPolicy
Formulated
gridmini-hydro,micro-hydromini-grid,andlarge-scalesolarPVsystems
EconomicandFinancialViabilityofMHP
GEF
• Financial&EconomicAnalysisofMHPrelatedfieldworkongoing 75% 7,000 0 0%
• TechnicaleditingofRETguidelinesanddatacollectionofQualityofaccesstoenergy
100% 1,500 1,450 97%
Activity1.2.1:PreparemethodologyforintegratingminihydroprojectsandlargescalesolarPVsystemintodistrictenergyplans.
Supporttoprepare15MunicipalEnergyPlan
UNDP
• MethodologyforGISbasedDistrictEnergyMasterPlandrafted 100%
5,000 4,782 96%
100 54 54%
UNDP • ConceptofBestAvailableTechnology(BAT)prepared 100%
2,500 2,409 96%
1,000 922 92%
Activity1.3.3CompletedtrainingandawarenessprogramsforrelevantgovernmentagenciesandstakeholdersonminihydroandlargescalesolarPVsystem
WorkshoponMiniHydroinNepal UNDP
• OrientationforMiniHydroDevelopersconducted
100% 2,800 2,747 98%
KnowledgeSharingEvent UNDP • RERLsupportedthreeHultPrize
Events 100% - 4,000
Directpayment
UNDP
SubTotalActivityResult1 35,250 31,367 ActivityResult2:IncreasedinvestmentsinRE
TechnicalAssistance
Fund transfer to CREF for Technical Assistance
UNDP 100% 302,496 302,496 100%
Activity2b.1.1:UpdatethefeasibilitystudyoftheselectedMini-hydrodemonstrationprojectstomakeitbankable
DetailedFeasibilityStudyofMiniHydroProjects
GEF
• StudyonInitialEnvironmentalExamination(IEE),
100%
4,200 4,219 100%
• DetailedTopographicalSurveyandHydrologicalfieldinvestigation,Pre-feasibility,DetailedfeasibilityofdifferentMHPs
100%
25,000 26,960 108%
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AnnualTargets:supportAEPCtoinitiate1MWminihydroprojects
Activity2b.1.2:SupporttoestablishandstrengthensuitableinstitutionalarrangementfordevelopmentandmanagementofminihydroprojectsincludingSPVmodel
Supporttoestablishinstitutions
GEF
• StructureandconstructiondrawingofBomandPatrasi,DetailedfeasibilityofdifferentMHPsandregistrationofMHPscompleted
100% 4,800 4,812 100%
UNDP • RegistrationofTaraKhola 100% 4,400 4,344 99%
GEF • RegistrationofBomKhola 100% 2,200 2,262 103%
UNDP • SPVformationof3minihydroprojects 100% 26,000 25,326 97%
GEF • TAforprojectdevelopersofMHPsandSolarminigridsubproject 100% 22,000 23,406 106%
Activity2b.1.5:AssistinachievingfinancialclosurebasedonPPPmodel
Supportfinancialclosureof5MiniHydroprojects
GEF• FieldvisitofBankersforfinancialclosureinTaplejung,RukumandDolakhaconducted
100% 3,000 3,133 104%
Activity2b.1.6:Providetechnicalassistanceforconstructionoftheproject
2MiniHydroProjects
GEF• TAtoAEPCforconstruction,
supervisionandimplementationofMHPsanddatacollectionofMHPS
100%
8,000 7,930 99%
GEF 1,000 976 98%
UNDP 6,500 6,477 100%
Activity2b.2.2:Providetechnicalassistanceforconstructionoftheproject
2minigrids GEF
• TAforTaplejungminigridandassessmentofMHPsfortheirsuitabilityininterconnectionandgridconnection
100%
11,000 10,934 99%
2,000 1,919 96%
25,000 25,040 100%
Activity2b.2.3:Supportforpilotinggridconnectionof2MHPs
2MHPs GEF• GridInterconnectionof23kW
SyaurebhumiMHPinNationalGridcompleted
100% 9,500 9,705 102%
500 460 92%
Activity2b.2.5:Documentanddisseminatelessonslearned
1documentary GEF • DocumentaryonDhadingSolarProject 100% 1,000 977 98%
Activity2b.3.2Conductdetailedfeasibilitystudyof
DetailedFeasibilityStudyconductedofselectedSolarPV
GEF • MonitoringandSupervisionof80solarPVsystemsandTAprovided 100% 27,000 28,264 105%
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selecteddemonstrationprojects
demonstrationprojects
DevelopSoftwareGEF • SoftwareapplicationforRE
surveytooldeveloped 100% 1,000 879 88%
GEF • EnergyHakathonEventorganized 100% 500 481 96%
AnnualTarget:SupportAEPCtoinitiate1MWminihydroprojects
Activity2b.3.7:Providetechnicalassistanceforinstallationoftheproject
PilotlowheadsolarPVpumpingprojects
UNDP • Rehabilitationofearthquake
damagedsolarPVpumpingsystems
100%
1,400
1,322
94%
UNDP 2,000 1,846 92%
GEF 5,800 5,727 99%
PilotE4H(solarvaccinestorages,healthcenter)
GEF
• SolarPVSystematsnakebitetreatmentcenterandHealthfacilitycenteratRukumandSalyaninstalled
100% 22,500 23,493 104%
PilotE4Ein1school GEF• SolarPVSysteminSahidChandeshworSchoolinDhanusainstalled
100% 6,500 6,587 101%
PilotsolarPVhamletselectrification UNDP • SolarPVsysteminMadanpur,
Sarlahiinstalled 100% 22,000 21,040 96%
PilotsolarPVgridinterconnection GEF • TechnicalverificationofSolarMini
GridatDhading 100% 10,000 9,740 97%
60 55 92% Activity2b.3.9:Documentanddisseminatelessonslearned
DocumentationsGEF • SuccessstoriesofREsolutionon
earthquakecompleted 100% 500 444 89%
GEF • DocumentaryonSnakeBiteTreatmentCentrecompleted 100% 2,400 2,372 99%
2b.3.10SupportforEarthquakereliefandrehabilitation
5.TAforreliefandrehabilitations 31DDCs
UNDP
• TAforAEPCtoimplementMHPs 100%
4,500 4,408 98%
GEF 1,500 1,492 99%
6.Solarsolutionforpublicinstitutions(VDC,healthpost,schools,communication,PVPS)
8systems
GEF• RehabilitationofearthquakedamagedsolarPVpumpingsystems
100% 4,300 4,301 100%
GEF • Installationof72SolarPVsystemindifferentinstitutions 100% 94,872
UNDPPAYMENT
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Activity2b.4.1AssistNRREPtoimplementtheprojects
TAforprojectimplementation
UNDP • TAforMHPimplementation 100% 12,000 11,854 99%
GEF • SupportforrehabilitationofKailashKholaMHP 100% 4,800 4,724 98%
GEF • Updated statusof30EarthquakedamagedMHPs 100% 1,000 810 81%
EQReliefandRehabMicroHydro Rapidassessmentofmicrohydrodamagedbyearthquake
100MHPs GEF • DetailedAssessmentofEarthquakedamagedMHP 100% 7,500 7,617 102%
Commercialoperationofmicrohydrodamagedbyearthquake
10MHPs GEF • CommercialOperationofMHPsandLiftIrrigation 100%
12,000 11,596 97%
800 722 90%
800 754 94% EQReliefandRehabMicroHydroandSolar
Documentary GEF • DocumentaryonReliefandRehab,E4E,TelkuwaIrrigationProject 100% 1,600 1,592 100%
Activity2b.5.1AssistAEPCtoimplementtheprojects
TAforprojectimplementation UNDP
• Pre-feasibilitystudyandDetailedFeasibilitystudyandtechnicalsurveyofMHP
100%
2,500 2,464 99%
18,000 17,936 100%
SubTotalActivityResult2 631,556 728,767
ActivityResult3:Improvedavailability
offinancialinvestmentsupportsforruralREand
otherlow-carbon
technology
Activity3b.3.4SupportProjectDeveloperstoprepareProjectBankableBusinessPlanandotherLoanDocumentforMHPandLarge-ScaleSolarPV
SupportProjectDeveloperstopreparebankablebusinessplans
GEF• TAforfacilitatingpartnerbanksandprojectdevelopersforREfinancingonMHPandSolarproject
100% 500 456 91%
Activity3b.5.1Prepareguidelinesforidentifyingandassessingexistingandpotentialenterprises
Prepareamodeltopromoteclusterofenterprisesinmini/largemicrohydrocatchmentareas
UNDP
• InstitutionalstrengtheningandcommercialoperationofMHPs 100%
22,000 19,993 91%
6,800 6,784 100%
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applications
AnnualTarget:
SupportedCREFtodesignfinancialinstrumen
tsforfinancing
REprojects
Activity3b.5.4Supportexistingentrepreneursforswitchingtoelectricenergy
LiftIrrigation UNDP • Detailedfeasibilityofmicrohydrooperatedliftirrigationsystem 100% 7,600 7,594 100%
SisnoandKhuwaMachine UNDP • Studyontechnicalspecification 100% 200 167 83%
PrepaidmeterinBhorleni,Makawanpur UNDP
• BudgetwasallocatedforinstallationofSmart-PrepaidmeteratBhorleniSolarWindHybridMinigrid,Makawanpur.However,theNationalGridisbeingextendedtothevillageandthecommunitywillinstallNEAmeters.
•
0% 7,000 - 0%
US$8,800wasallocatedforinstallationofSmart-PrepaidmeteratBhorleniSolarWindHybridMinigrid,Makawanpur.However,theNationalGridisbeingextendedtothevillageandthecommunitywillinstallNEAmeters.
Allo,Lokta UNDP • Grantprovidedfor3Loktamachines 100% 1,700 1,652 97%
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Activity3b.7.1:Providetraining/orientationtopotentialwomenandmarginalizedentrepreneurstoswitchtoelectricityandestablishnewenterprises
2training/orientations UNDP • 50womenentrepreneurstrained 100% 11,000 11,853 108%
SubTotalActivityResult3 56,800 48,498
ActivityResult4:Enhancedcapacitiesandskillofvarious
stakeholdersintheREsector
AnnualTarget:CapacityBuildingofvarious
stakeholdersinREsector
Activity4.1.1:Conductastudyonidentificationoftechnicalchallengesandopportunitiesindesign,manufacture,installationandafter-salesservicesforMini-hydroandLarge-scalesolarPVsystems
SupportAEPCtoimplementactivitiesidentifiedbyCapacityNeedAssessment
UNDP • Trainingonmonitoringandevaluationcompleted 100% 250 232 93%
Upgrading&OperationalizationofAEPC'sMIS
UNDP • TAforAEPC 100% 2,500 2,413 97%
Activity4.2.2:SupportNRREPinconductingcapacitybuildingtrainingfordevelopers,consultingfirms,andrelevantserviceprovidersforMini-hydroprojects
OrganizetrainingfordevelopersonMiniHydroProjects
UNDP• Interactionprogrammewithprospectiveminihydroinstallercompanies
100% 4,500 4,410 98%
Activity4.2.3:SupportNRREPindevelopingprojectdevelopment,systemdesignandintegrationmanualsforlarge-
UpdatePVPSdesignguidelines
UNDP
• TechnicaleditingGuidelinesofsolarPVpumping
100% 400 387 97%
UNDP 100% 2,300 2,209 96%
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scalesolarPVsystems
Activity4.3.3:Qualityassuranceprocedures,trainingcurriculumandmanualsforMini-hydromanufacturinganddevelopment
MonitoringEquipment UNDP • EnergyMonitoringdevice 100% 2,000 1,897 95%
Activity4.4.2:SupportAEPCindevelopingpre-qualificationcriteriaandmethodologyofcertificationforinstallationofLarge-scalesolarPVsystems
SupportAEPCtoorganizetrainingforMini/Large-MicroHydromasons,electricians,etc.
UNDP • 15Masonshavebeentrained 100% 9,200 9,193 100%
Activity4.5.2DevelopO&Mtrainingcurriculumandmanualsforlarge-scalesolarPVsystemsandconducttrainingbasedonthese
TrainingonhousewiringtoSASECparticipants
UNDP • 30electricians(27menand3women)havebeentrained 100% 6,000 5,922 99%
Activity4.5.3:ConductO&Mtrainingforlarge-scale60kW+microhydroplants(Operation)
ConductO&MtrainingforMHP UNDP • 46MHPoperatorstrained 100% 22,000 21,095 96%
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Activity4.5.4:DevelopbusinessmanagementtrainingcurriculumandmanualsforMini/micro-hydroandlarge-scalesolarPVsystems
ConducttrainingonbusinessmanagementforMini-hydroandlarge-scalesolarPVsystems
UNDP • 51womenentrepreneurshavebeentrained
100% 14,000 13,779 98%
SubTotalActivityResult4
63,150 61,536
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Annex1:ListofMicroHydroInstalledin2017
S.N. NameofMHP Location DistrictInstalledPower(kW)
HHs
1 KhalichhharaMHP Maidi-5 Dhading 100 1020
2 KharKholaMHP Khari-3 Dhading 70 633
3 RawaKholaMHP Katunje-8 Dhading 100 400
4 TribeniKhola Lujgrupa-7,8,9 Pancthar 35 338
5 HoluKhola Khalanga Jajarkot 14.5 159
6 NagdewaKhola Telok Taplejung 22 142
7 DhoreniKhola Nayakbata Jajarkot 51 336
8 JhumaraKholaChhepaka Dadagaun Jajarkot 13 133
9 AulaKholaMHP Khina Kalikot 70 608
10 MajuwaKuineKhaniMHP Kuinemangale Myagdi 20 119
11 DeuchuliPanighatMHP Arkhala Nawalparasi 28 228
12 BagauneKholaMHP Kureli Rolpa 91 445
13 MailidovanKupungKholaMHP Goli Solukhumbu 75 382
14 GulsuKholaMHP Sutar Achham 19 225
15 MujaKholaMHP Barala Achham 24 225
16 JuddiKholaMHP Gotri Bajura 100 1114
17 JuddiKholaIIMHP Gotri Bajura 100 1189
18 ChhirilingKholaMHPSindrangVDC/Hatuwagadhi Bhojpur 26 256
19 MajuwaKuineKhaniMHP Kuinemangale Myagdi 20 119
20 KyansiKholaMHP Morabang Rukum 52 310
21 KhatiKholaMHP Laha-08 Dolpa 80 792
22 DahaKholaMHP Magma Rukum 20 119
23 WaksuKholaIIMHP FicalGP Sindhuli 15
24 DhawangKholaMHP Dhawang Rolpa 18 143
25 DhunduriKholaMHP Jharlang Dhading 66 260
Total 1229.5 9695
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Annex2:ListofInstitutionalSolarPVin2017underReliefandRehabilitationS.N. InstitutionalSolarPV Location District Unit
Capacity(Wp)
1 NaubiseHealthPost Naubise Dhading 1 300
2 SalyantarPrimaryHealthPost Salyantar Dhading 1 300
3 BaireniHealthPost Baireni Dhading 1 300
4 SertungHealthPost Sertung Dhading 1 300
5 MaidiHealthPost Maidi Dhading 1 300
6 BenighatHealthPost Benighat Dhading 1 300
7 DhuseniShibalayaHealthPost DhuseniShibalayaVDC Kavre 1 300
8 KartikeDeuraliHealthPost KartikeDeuraliVDC Kavre 1 300
9 GothpaniHealthPost GothpaniVDC Kavre 1 300
10 BirtaDeuraliHealthPost BirtaDeuraliVDC Kavre 1 300
11 SalleBhumluHealthPost SalleBhumluVDC Kavre 1 300
12 NagreGagarcheHealthPost NagreGagarcheVDC Kavre 1 300
13 SriLaxmiHigherSecondarySchool Ghangsukathikar Dolakha 1 300
14 SriSahidSmritiAbasiyaSecondarySchool Jiri-6 Dolakha 1 300
15 SitaPailaHigherSecondarySchool Japhe-7 Dolakha 1 300
16 SriSharvaSecondarySchool Bhi.N.Pa.Jilu Dolakha 1 300
17 SriBhangeri/SatesworSecondarySchool Pawati Dolakha 1 300
18 KhopachaguGumba Khopachagu Dolakha 1 300
19 SriBirendraHigherSecondarySchool Katakuti-7 Dolakha 1 300
20 SriHilepaniSanskritHSS Lamidanda-4 Dolakha 1 300
21 SriSitkhaSecondarySchool Sunkhani-5 Dolakha 1 300
22 SriHimaliHealthco-operativeorg.Ltd Kabre Dolakha 1 300
23 DistrictpoliceOffice Charikot Dolakha 1 300
24 JanajagritiHSS Sahare Dolakha 1 300
25 DurgaHigherSecondarySchool Magapauwa:02 Dolakha 1 300
26 LamabagarPrimaryHealthPost Lamabagar Dolakha 1 300
27 NarayaniPrimarySchool LadukVDC Dolakha 1 300
28 DolakhaTourismDevelopmentCommittee Charikot Dolakha 1 300
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29 KarkiManakamanaLowerSecondarySchool Manegau Nuwakot 1 300
30 TribhuvanSecondarySchool Archale,Manakamana Nuwakot 1 300
31 RanabhumaneshwariSecondarySchool KhadgaBhanjyang Nuwakot 1 300
32 GhyangphediPrimarySchool Ghyangphedi Nuwakot 1 300
33 ShreeKundalaSec.School Bhadrutar-1Nuwakot Nuwakot 1 300
34 KalikaSecSchool Bidur11,Nuwakot Nuwakot 1 300
35 UttargayaGaupalikaOffice UttargayaGaupalika Rasuwa 1 300
36 KalikaGaupalikaOffice KalikaGaupalika Rasuwa 1 300
37 ParbatikundaGaupalikaOffice ParbatikundaGaupalika Rasuwa 1 300
38 GosaikundaGaupalika04 Gosaikunda04 Rasuwa 1 300
39 GosaikundaGaupalikaOffice GosaikundaGaupalika Rasuwa 1 300
40 NaukundaGaupalikaOffice NaukundaGaupalika Rasuwa 1 300
41 DistrictEyeHospital Chautara Sindhupalchowk 1 300
42 SipapokhareHealthPost IndrawatiGaupalika,Sipapokhare Sindhupalchowk 1 300
43 PhulpingdadaHealthPost BalephiGaupalika,Phulpingdada Sindhupalchowk 1 300
44 BudepaHealthPost BarhabiseGaupalika,Barhabise Sindhupalchowk 1 300
45 BhotechaurHealthPostMelamchiMunicipality,Bhotechaur
Sindhupalchowk 1 300
46 BaruwaHealthPost PanchpokhariThanpalGaupalika,Baruwa Sindhupalchowk 1 300
47 HelambuHealthPost,Helambu HelambuGaupalika Sindhupalchowk 1 300
48 JageshworiNimabiMelamchiMunicipality-11,Melamchi
Sindhupalchowk 1 300
49 BachchhekHealthPost HansapurVDC Gorkha 1 300
50 BachchhekPolicePost HansapurVDC Gorkha 1 300
51 PolicePost,Baluwa SimjungVDC Gorkha 1 300
52 KharibotHealthPost KharibotVDC Gorkha 1 300
53 MucchowkHealthPost MuchhowkVDC Gorkha 1 300
54 Arupokharihealthpost ArupokhariVDC Gorkha 1 300
55 KettukeHealthPost KettukeVDC Okhaldhunga 1 300
56 JantarkhaniHealthPost JantarkhaniVDC Okhaldhunga 1 300
57 ShreechaurHealthPost ShreechaurvDC Okhaldhunga 1 300
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58 KhijiPhalateHealthPost KhijiPhalateVDC Okhaldhunga 1 300
59 PokhareHealthPost PokhareVDC Okhaldhunga 1 300
60 BhusingaHealthPost BhusingaVDC Okhaldhunga 1 300
61 DimipokhariHealthPost DimipokhariVDC Ramechhap 1 300
62 GunsiHealthPost GunsiVDC Ramechhap 1 300
63 PakarbasHealthPost PakarbasVDC Ramechhap 1 300
64 PreetiHealthPost PreetiVDC Ramechhap 1 300
65 PharpuBirthingCenter PharpuVDC Ramechhap 1 300
66 DuragaonHealthPost DuragaonVDC Ramechhap 1 300
67 AmboteHealthPost AmboteVDC Sindhuli 1 300
68 KholagaunHealthPost KholagaunVDC Sindhuli 1 300
69 KalpaBrikshyaHealthPost KalpaBrikshyaVDC Sindhuli 1 300
70 ToshramKholaHealthPost ToshramKholaVDC Sindhuli 1 300
71 SolpathanaVDC SolpathanaVDC Sindhuli 1 300
72 IlakaPolicePost MahendrajhyadiVDC Sindhuli 1 300
Total 72 21600
Annex3:ListofInstalledSolarPVin2017
S.N. InstitutionalSolarPV Location District UnitCapacity(kWp)
1 KamalBazaarSolarWindMiniGrid KamalBazar Achham 1 31.0
2 HarrekandaSolarWindMiniGrid Surket Harrekanda 1 7.23 ChisapaniSolarWindMiniGrid Chisapani Sindhuli 1 35.0
4 TheCommissionfortheInvestigationofAbuseofAuthority-InstitutionalSolar Tangal Kathmandu 1 375.0
5 TelkuwaSolarIrrigation Telkuwa Bara 1 40006 SnakeBiteTreatmentCenter-InstitutionalSolar Letang Morang 1 2000
7 SnakeBiteTreatmentCenter-InstitutionalSolar Itahari Sunsari 1 2.58 SnakeBiteTreatmentCenter-InstitutionalSolar Charali Jhapa 1 2.59 RamiteKholaSolarMiniGrid Ramite Morang 1 35.010 NawalparasiGirdconnectedCaptiveSolarPV Ranipakar Nawalparsi 1 1000.011 KatwaraHealthPost-InstitutionalSolarPV Katwara Salyan 1 3.012 SimrutuHealthPost-InstitutionalSolarPV Simrutu Rukum 1 3.0
13 KabilasiMiniGrid-SolarPumping Kabilasi Sarlahi 1 6.0Total 10 1506.2
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Annex4:ListofPhotoVoltaicPumpingSystemInstalledin2017
S.N. ProjectName DistrictCapacity(kWp)
HHs
1 DhapKholaRSDWP Dang 1.14 412 SemlekholseRSDWP Udayapur 2.24 413 SharkikholseRSDWP Udayapur 1.26 364 OdarejoreRSDWP Okhaldhunga 2.40 485 BesitoleRSDWP Ramechhap 3.00 306 DhulpairaRSWDP Surkhet 1.86 407 PenautaRSWDP Surkhet 2.80 318 GabudandaRSDWP Galdha-2,Palpa 3.92 429 DharadiRSDWP Mityal-9Palpa 3.36 3110 TamedharaRSDWP Surkhet 2.80 4911 TijugairaRSDWP Surkhet 3.00 40
12 MelganjaRSDWP Dadeldhura 1300 3213 JamunaMulRSDWP Achham 1.52 6114 PatuatRSDWP Baitadi 2.73 4915 SisnepaniRSDWP Doti 1.14 3216 DharapaniRSDWP Surkhet 5.00 5017 Dharapani2RSDWP Surkhet 3.00 44
18 DadathokRSDWP Tanahun 1.40 6419 KotleKholaRSDWP Tanahun 1.90 3420 ChhepardiRSDWP Tanahun 2.28 4721 ChiurikholaRSDWP Rolpa 1.14 3622 RatomateRSDWP Tanahun 2.24 3323 DaduiRSDWP Ilam 0.62 3224 KaliKholaRSDWP Ilam 0.75 3725 NagiRSDWP Panchthar 0.82 4026 KanchanRSDWP Ilam 1.89 20
27 TintaleBaneliRSDWP Ilam 1.89 24
28 KaliDahaRSDWP Panchthar 4.75 5429 KamalKholsiRSDWP Ilam 2.00 3130 SarapaniRSDWP Salyan 8.80 6931 PiuribartibangRSDWP Rolpa 3.00 37
Total 1374.65 1255
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Telkuwa Solar Irrigation Project powered by 4kWp Solar PV System, Bara Snake Bite Treatment Center powered by 2kWp Solar PV System, Letang,
Morang
1 MWp solar plant in Nawalparasi House Wiring Solar DC Micro Grid
Training on Mobile Repairing, Rukum 1 Construction of 200kW Simrutu Khola Mini Hydropower Project, Rukum
ANNEX5:PhotoGallery
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