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Jalashak
Vol. No. 13

Year BS 2071 (2014 AD)

Editorial
Time has to come for Micro Hydro to be a common terminology that is to call Micro Hydro as nations pride,
recognizing Nepals expertise in micro hydropower technology, its application of policies and regulations
developed and implemented have been successful in gaining excellence. This needs to have happened some
time ago, as the stakeholders - the public sector, the private sector and communities are supporting each other.
Such obstacles have been sidelined in the present scenario for last few years. Micro hydro development, as
such, has been an inuential instrument.
As a matter of fact, the expertise achieved by Nepal in Micro Hydro by putting immense of efforts by
techno-entrepreneurs and technocrats have been ranked greater in the South Asia region. It has gained wider
reputation beyond the region as well. Shares of credit go to the brilliant public sector who brought in policies,
procedures, regulations and funding supports and enthusiastic private sector who performed in all technical
aspects efciently - survey and design, manufacturing of turbines, penstock pipes and hydro-mechanical parts,
governing equipments etc. and supply, construction and installation and after sales service.
Fifty ve districts had seen stay alone electricity facility by micro hydro projects for the betterment of the people
living in the remote and semi-remote settlements. Thus, micro hydro has been placed as a vital instrument
when issues rise on electricity, rural energy, alternative energy, poverty alleviation, social justice in the country.
Planners and economists appreciate the features of micro hydro in this respect.
Database reports say that some 3,000 micro hydropower plants have been established in the country so far
with cumulative capacity to produce 32,000 kW of electricity to access 350,000 households have accessed to
electricity for lighting at least. The gure expected jump to a greater scale by end mid-July, 2017, according
to the plans the government nodal agency is exercising for. The private sector is extending whole hearted
support to this mission.
Performance in micro hydro in Nepal was initiated half a century ago with the aim to ease out feeds for shes
at a sh pond in Godawari Garden. However, electrication by water mills with technical improvement was
one another landmark. Agro-processing facility in addition to electrication by improved water mill was also
recognized as a step ahead.
Introduction of Peltric set, designed for electrication of a few household was proved an exclusive product
of Nepal to be used by small volume of water from pretty much height and channelized through pipe to hit
the Pelton runners and generate electricity by an attached generator was successful and much popular even
today.
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Producing Pelton turbines and Crossow turbines for Micro Hydro for all situations have been a tradition of
the country. On top of that Nepal has been providing turbines and other products along with technical services
to other countries.
Nepal has hosted jamborees of Micro Hydro personnel in the past, a few in number but greater in terms of
outcome. Non Aligned Countries Science & Technology Centre organized international workshop on Role of
Micro Hydel for Developing Countries conducted by Nepal Academy of Science & Technology with support
of Alternative Energy Promotion Centre, Regional Centre for Excellence in Micro Hydro and Nepal Micro
Hydropower Development Association was a mentionable event. This event was highly successful in exposing
of Nepals expertise the micro hydro world.
To recall, in this context, the international level micro hydro training programme conducted in 1993 in Nepal
was an opening landmark. Likwise, a batch of Afghan engineers come to Nepal to learn on micro hydro later
on some other occasion was also much talked in micro hydro sector.
Regional Centre of Execellence in Micro Hydro (RCEMH), established by USAID to work jointly with
Alternative Energy Promotion Centre has take initiative to share knowledge and skill in Micro Hydro Nepal has
gained by experience with the countries of the rgiona and even beyond is an appreciable step. The Iinternational
event in Kathmandu in Novemebr this year will be a bright land mark in the scroe.
In context to Jalashakti, the Micro Hydro Magazine published by NMHDA for around two decades, this time
in English has been focused at sharing Nepals information on Micro Hydro. This issue is expected to portray
Nepal image abroad as well.
Wish all the best to all.

Editor

Krishna Prasad Devkota

Advisor

Surendra Bhakta Mathema

Consulng Editor

Purna N. Ranjitkar
Markeng Management

Sarmila Rayamajhi (Khadka)

Distribuon

Padam Raj Joshi

Published by

Nepal Micro Hydropower Development Associaon

Shahi Shukra Marg - 131, Teku, KMC - 12, Kathmandu, Nepal
Phone: 977 - 1 - 4230678, 977 - 1 - 4231024
Email : nmhda@ntc.net.np, nmhdanmhda@gmail.com
website : microhydro.org.np

Printed at Creave Press, Kathmandu Phone : 977-1-4420053/54

Jalashak

Exhibition cum International Workshop

on Micro Hydro
an event to exchange of idea and experience

egional Centre of Excellence in Micro

Hydro (RCEMH) established in Nepal with
support of USAID as a joint effort with Alternative
Energy Promotion Centre (AEPC) is readying an
international gathering in collaboration with Nepal
Micro Hydropower Development Association
(NMHDA) put efforts to share Nepals knowledge
and experience in micro hydro with the counterparts
from various countries of South Asia region and

beyond. RCEMH and NMHDA, thus, organizing

Exhibition cum International Workshop on Micro
Hydro in Kathmandu, Nepal during 11th till 16th
of November 2014. This is also an occasion
for RCEMH to showcase its functionality and
service offerings, and demonstrate achievement in
development of micro hydro in Nepal. Likewise,
NMHDA is elaborating knowledge, skill and
experience accumulated by the private sector

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entrepreneurs who played the vital role in successful

implementation of micro hydro in Nepal. The spirit
of event is also added with elaboration on state
role in successful implementation with effective
intervention of various policies and regulations that
AEPC practiced as the state agency responsible for
development and promotion of alternative energy in
Nepal.
Thus, the event is aimed at exposure to the latest
developments in micro hydropower in Nepal,
highlight the role of micro hydropower in poverty
remediation and rural electrication in Nepal,
discuss on the markets for micro hydropower,
how can it be established and how can it lead to
investments and associated economic activities in
rural areas, know-how to promote development of
the micro hydropower sector, on-site knowledge
sharing, personal, one to one interaction with Micro
Hydro experts, design consultants, manufacturers,
installers, community representatives, trainers
involved in the eld of micro hydropower and so on.
The organizers are set to mobilize experts who had
provided their services abroad and have plenty of
knowledge and skill will deliver the content and
to lead the participants for the fruitfulness of the
event. The one day exhibition at the Nepal Academy
of Science & Technology (NAST) premises will
feature Nepals workmanship in micro hydro in
phase wise watermill, improved water mill, Peltric
set and accessories, Crossow and Pelton turbines
and accessories, innovated Crossow Turbine and
Pelton Turbine, the Francis turbine made in Nepal,
Electronic Load controller and Transformers.
Elaboration research and application on mini grid
and grid connection in Nepals context will also be
featured. Likewise, various information regarding
aims, activities and achievement achieved by efforts
of public sector and private sectors in developing
micro hydro in Nepal will also be part of exposition.
The site visit for inspecting the micro hydropower
plant is one of the fascinating parts of Exhibition
cum International Workshop on Micro Hydro. The
site selected for the purpose in rich in technicality,
end-uses and management. It throws idea on the
best of uses of micro hydro plant and satisfaction

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to all stakeholders the government, development

partners, local community and even private sector.
Malekhu Khola Micro Hydropower Project (26
kW), Mahadevsthan in Dhading district therefore
has been selected as an ideal site to learn by seeing.
Exhibition cum International Workshop on Micro
Hydro has been designed for MH developers,
researchers, engineers, entrepreneurs, village
and district community representatives and
policy makers, with the relevant background and
active involvement in the areas related to Micro
Hydropower. A total of 25 participants are joining
in the workshop training program. Out of the total,
20 participants will be from the region, whereas 5
participants will be from Nepal who will facilitate
the international participants to understand the local
context.
The programme offers a suite of services ranging
across the full micro hydro value chain. It
will present case studies; showcase emerging
technologies, designs, and best practices for
development, implementation and management
of micro hydro systems; share techniques for
maintaining quality and meeting performance
standards; advises on methods for social and user
committee mobilization; and serves the capacity
building needs of the micro hydro sector.
The 6-day exhibition cum workshop will feature
experienced micro hydro power developers and
implementers, manufacturers and policymakers.
Developers, researchers, engineers, entrepreneurs,
village and district community representatives and
policymakers who work in the micro hydro sector
or wish to do so will benet from attending the
workshop.
The experts and planners from Afghanistan,
Bangladesh, Bhutan, India, Malaysia, Myanmar and
Pakistan are participating in the event who will also
cast the Micro hydro scenario in their countries and
exchange knowledge and skills on Micro Hydro.
Building cooperation for mutual benet among the
participating countries will be another vital outcome
of the Exhibition cum International Workshop on
Micro Hydro.

Role of Micro Hydel for Developing Countries

Exchange of Experience on Micro Hydro

earing distinct character in Micro Hydro, Nepal

has been attracting neighbours to tell a lot on
this simple but signicant technology to provide
electricity access to a lot of people who might not
see electrical light and use any appliance at his own
home. Micro hydro has been a tool for them availed
by native techno-entrepreneurs with support of the
government and development partners.
The seminar workshops and symposiums organized
in Nepal and abroad also have been the platforms
for Nepali experts to share knowledge and skills
with counterparts. A few workshops and seminars
organized in Nepal also had been highly successful
in terms of knowledge sharing. International
Workshop on Role of Micro Hydel for Developing
Countries is one such successful event organized in
Nepal in April, 2013.
The three day jamboree of 22 representatives from

17 countries (Afghanistan, Bhutan, India, Indonesia,

Iraq, Malawi, Malaysia, Mauritius, Myanmar,
Pakistan, South Africa, Sri Lanka, Uganda, Vietnam,
Zambia and Zimbabwe) and around 25 experts,
academicians and micro hydro professionals from
Nepal took part in discussing on the methodologies,
government initiatives and experiences of
professionals. The participants agreed for the
exchange of knowledge, skill and experience so as
micro hydropower be more effective and accessible
to the target groups.
Micro hydro, the technology for small sized
hydropower projects of upto 100 kW, is not only
to bring light into people live in the off grid
locality but also give energy and water security to
population, make people economically more stable,
reduce the physical work load for women, enable
the mechanization of rural industries and lessen
environmental damages from cutting wood for
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fuel and heat or harming aquatic fauna and ora.

Moreover, no waste or by-products are produced
unlike the energy generation based on fossil sources.
Many countries have begun to embrace micro hydro
technology as a viable and alternative source of
energy, especially for remote and rural areas. There
are different replicable success stories on micro
hydro based projects in many developing countries.
In order to explore wider prospects and share
the best practices on micro hydro, the centre for
Science and Technology of Non-Aligned and Other
Developing Countries (NAM S&T Centre) and
Nepal Academy of Science and Technology (NAST)
in collaboration with Alternative energy Promotion
Centre (AEPC) organized the international
workshop.
As the event aimed at the overall objective
to demonstrate micro hydro technology, its
implementation and sharing the success stories to
explore replication of successful models among the
developing countries. The workshop provided a
valuable platform for sharing of knowledge, transfer
of technology and capacity building, coordination
and networking among experts and professionals
of the developing countries. The workshop was
successful to deliberate on various aspects of micro
hydro such as the potential and benets of micro
and mini hydro; micro hydro turbines and their
head range; site selection; micro hydro installation,
commissioning and maintenance; integrated
approaches with other forms of non-conventional
sources of energy; ecological implications; energysocial-employment correlations; policy and planning
issues, training etc.
The Centre for Science & Technology of the NonAligned and Other Developing Countries is an
international organization with a membership of 46
countries spread over Asia, Africa, Middle East and
Latin America. The centre was set up in 1989 in
New Delhi (India) in pursuance of recommendations
of various NAM Summit meetings for the
promotion of South-South cooperation in science
and technology is one of the organizers. Likewise,
Nepal Academy of Science and Technology
(NAST), established in 1982 with the main objective
of the advancement of science and technology
6

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for overall development of the country is also

organizer of the workshop while Alternative Energy
Promotion Centre, established by the Government of
Nepal in 1996 as a focal agency for the promotion
and development of renewable energy technologies
in the country is active supporter of the event.
AEPC, under the Ministry of Science & Technology
and Environment, extend technical and nancial
supports to community level for easier access to
renewable energy, enhance technical capabilities to
non-governmental organization and private sector
involved in renewable energy sector for target
people. It also channelizes the cooperation of donor
countries, agencies and nancial institutions for the
renewable energy for rural people.
The Regional Centre of Excellence in Micro Hydro
(RCEMH), during the discussions, offered itself as
a common platform for developing countries for
standardization of micro and small hydropower
system and its components, generating and sharing
relevant database as well as knowledge, networking
among the professionals, capacity building and
carrying out collaborative research for enhancement
of efciency, reduction of cost, expansion of
technological domains, and identication of strategy
for up-scaling, which was greatly appreciated by the
participants.
Nepal Micro Hydropower Development Association
(NMHDA) extended supports for the successful
organization of the international event. WECAN
(Water and Energy Consultants Association Nepal),
Tribhuwan University - Centre for Energy Studies,
Kathmandu University also took part to conduct the
event.
A day-long eld visit to two micro hydropower
plants was organized for foreign participants at
Karamdanda Micro Hydropower Project (17 kW)
located at BP Highway in Kavre and Chhange Khola
Micro Hydropower Project (16 kW) at Dumja,
Sindhuli. The participants also visited the Centre
for Excellence in Production & Transportation
of Electrical Energy (CEPTE/KU), Department
of Civil & Geomatics Engineering, Kathmandu
University, Dhulikhel where a mini-grid is currently
in its prototype design stage.

Micro-Hydro in Nepal
A look back and ahead

By: Tilak Kandangwa and Rana Bahadur Thapa

icro-Hydro sector in Nepal has come a long

way since its inception during the 60s by
Agricultural Development Bank. The sector did not
ourish much during the period from 60s to 90s
as this period saw fewer number of micro-hydro
installations. However, during the middle of 90s,
the sector picked up its pace with involvement of
some serious donors and government commitment.
Alternative Energy Promotion Centre (AEPC), a
government autonomous body mandated to promote
renewable energy in Nepal, also came into force
during that time. As a result, fuelled by AEPCs
leading role and donors resources, the country
saw increased installation of micro-hydro systems.
Thousands of rural households, who had never
dreamed of electricity, were electried. This golden
era of micro-hydro development started some 15
years ago and over the years this sector has enjoyed
considerable success. Will this success continue?
This is a question worth looking into.

households would get subsidy from Government;

own that particular micro-hydro scheme; would
share resources for its construction; and generate
tariff for its operation and maintenance. Lastly, it
was pictured that the private sector would grow
proportionately to the growth in micro-hydro
demands. Private sector in micro-hydro includes
turbine manufacturers, electrical and electronic
equipment manufacturers, surveyors, designers
and installers. Increase in volume of transaction
would expand capacity of existing manufacturing
companies and new companies will come up for
designing, installing as well as manufacturing parts
of micro-hydro schemes.
The rst envisioned scenario holds true even after
15 years. The government, at the moment, is facing
increasing pressure to electrify rural households.
Electrication through Grid extension is a costly
affair. Furthermore, rural electrication cannot
rely only on the generated power of future to be

Before looking into this question, lets look at the

three scenarios envisioned during the rapid growth
of micro-hydro installations.
Firstly, it was envisioned that the Government
and donor commitment would increase over time.
In the long run, the Government contribution
would outpace that of donors. Secondly, the
community-based model of micro-hydro promotion
would provide a sound platform for sustainable
operation of micro-hydro schemes. All electried

Mr. Kandangwa and Mr. Thapa, article contributors

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constructed big hydro plants as these powers, most

likely, would prefer going to the power hungry
urban areas rather than the rural households. Microhydro will, therefore, continue to remain one of the
alternative sources for electrifying rural households.
Due to this, the Government contribution has
increased. Donor commitment is growing as well.
The international commitment on green house gas
reduction and the big discourse of climate change
would likely increase donor commitment in this
sector for few more years to come.
The second pictured scenario did not keep its
promise fully. Over the years, experience with
community managed model shows that it is not
effective over the full life cycle of micro-hydro
scheme. This model is most effective during the
construction phase of the project. During this phase
getting electricity is one common incentive
among the households that makes this model
work. Every household wants electricity, so every
household contribute to their best. However, once
this incentive is achieved, the community does not
have any further incentives derivable from the plant.
As a result, The plant is owned by all, at the same
time owned by none. The community ownership
model, most often, does not seem to work during the
operation phase, hence, posing a serious question of
sustainability.
The third and the last scenario also have not been
realized fully. There has been signicant growth
in number of consulting companies and installers.
However, the manufacturing sector did not grow
as expected. It would not be unfair to say that the
number of manufacturers remained practically
constant in the last 15 years. Among many, some of
the claimed reasons hindering growth are (a) There
is not enough demand to sustain a manufacturing
house (b) There is lack of upfront capital (c) Longterm security of investment is not guaranteed.
Now, we come back to our question: Will this
success continue? Success will critically depend on
how well the second and the third scenario will be
addressed.

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Many micro-hydro schemes that are under operation

are underperforming; and in the core of the problem
lay ownership issues. Ownership of all and at the
same time ownership of none is a classic issue
faced by public energy utilities all over the world.
The same applies here as well. Since the future
of new micro-hydro scheme directly depends
on the successful continuation of old ones, this
problem needs to be addressed as soon as possible.
Alternative ownership/management models need to
be explored for older schemes. For example Small
business holders whose business directly depends
on electricity would have the highest incentive in
keeping the micro hydro plant under operation.
Incentive of running business would naturally be
more than incentive of lighting, especially in cases
where alternative household lighting solutions like
solar is available. Lease out models to such small
business holders/group of business holders should
be tried wherever applicable.
Manufacturing companies usually have some
important business questions. The most important
being the long-term security of their investment,
at least for a horizon of 10 to 15 years. Many feel
that micro-hydro demands are decreasing and that
they may not be able to recoup their investment. In
addition, for them, long-term availability of subsidy
is also a big uncertainty. In order to allay fears of
private sector, the sector needs to demonstrate that
(a) there is signicant amount of demands for a
practical period (b) there is guaranteed government
and donor resources for a certain period (c)
nancing tools/nancial instruments are available
for the private sector in order to recoup their
investments and prots on time. Proper planning in
these concerns would greatly facilitate the private
sectors in making informed decision on possible
investments on manufacturing houses.
Therefore, the continuation of success of microhydro sector will depend on how well the sector can
address and manage these scenarios in future.
(Views expressed here are not necessarily the views of
the organization they work with)

Micro Hydro in Nepal: At a glance

ydropower is one of the renewable energy

sources. In Nepal, electricity generation is
dominated by Hydropower. Experts estimate that
this mountain dominated country has a potential of
83,000 MW to produce by various rivers owing
from Himalayas to south and meet Bay of Bengal
owing through Ganges plain in India. Out of the
total potential 42,000 MW of electricity have been
considered as commercially viable. Currently, Nepal
has been able to produce 750 MW of electricity
as hydropower and connected to INPS to feed the
urban areas.
The national grid connection could not have
been possible to stretch
of transmission to the
settlements at remote
hills and mountains of the
country as it is nancially
and technically not feasible.
As such, most of the
rural people in Nepal are
getting electricity through
Renewable and Alternative
Energy Technologies such
as Pico hydro, Micro/Mini
hydro, IWM and Solar PV
systems etc.

350,000 rural households.

The Pharping Powerhouse was established in
Nepal in 1911. This historical plant was installed
with British support. This is standing as second
hydropower plant in South Asia. Likewise, the
rst Micro Hydropower Plant with 5 kW Propeller
turbine was established in 1962 in Godawari
Garden, Lalitpur.

Micro Hydropower in Nepal

MH Plants started to establish for agro-processing
and electrication at off grid locations around

Currently, 40 MW of
electricity is generating by
Pico hydro (up to 10 kW),
Micro hydro (greater than
10 kW but up to 100 kW)
and Mini hydro (greater
than 100 kW but up to
1000 kW), and providing
electricity facility to

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mid-1980s. Agricultural Development Bank Ltd.

had facilitated to channelize government fund as
subsidy to establish MHPs in rural locations around
the decade of 1985-1995. ITDG/N, USAID, UMN,
ICIMOD, SDC and ACAP had extended support to
promote MH in Nepal.
The private sector had put enough efforts in
shaping excellence in micro hydro by carrying out
all assignments related to development of micro
hydro. They proved Nepals efciency in survey and
design, manufacturing of turbines and other hydromechanical parts, installation and commissioning
and providing services after sales.
Balaju Yantra Shala Pvt. Ltd., established in 1962,
pioneered in turbine manufacturing in Nepal.
Likewise, Nepal Yantra Shala Energy, and Thapa
Engineering Industry followed in 1976 and 1981
respectively.
Mr. Akkal Man Nakarmi, late Mr. Shyam Raj
Pradhan, Mr. Dewan Singh Thapa had contributed
signicantly to technical development of MH. Mr.
Krishna Bahadur Nakarmi also had contributed
extensively in turbine designs. The fore mentioned
had been successful in supplying turbines and other
parts for MHPs to various countries. Thus, Balaju
Yantra Shala Pvt. Ltd., Kathmandu Metal Industry
Pvt. Ltd., Nepal Yantra Shala Energy, Thapa
Engineering Industry Pvt. Ltd. have been mentioned
as pioneering in MH in Nepal and even abroad.
Private entrepreneurship in survey and design,
manufacturing and fabrication of turbine,
penstock pipe and other parts and construction and
installation grew up gradually. There were 9 such
companies / rms come into action till end of 1992
at the time of establishment of NMHDA.
Alternative Energy Promotion Centre (AEPC), a
government institution established on November
3, 1996 under the then Ministry of Science and
Technology with the objective of developing
and promoting renewable/alternative energy
technologies in Nepal also has been successful in
proving nancial supports as subsidy and technical
supports and implement the regulation adopted by

10

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the government for the promotion of alternative

energy sources.
UNDP and The WB funded Rural Energy
Development Program (REDP) was rst introduced
to ve districts and successfully carried out in
55 districts. Later, continued with the name of
Renewable Energy for Rural Livelihood (RERL)
since January 2012.
Energy Sector Assistance Programme (ESAP)
rst and second phase were successful to deliver
alternative energy access to target groups. ESAP
with ve years each phase was ended at mid July
2012. Danish and Norwegian governments extended
supports to both phases of ESAP.
Alternative Energy Promotion Centre (AEPC) has
activated National Rural and Renewable Energy
Programme (NRREP) with effective from 16
July, 2012 with a single programme modality for
development and promotion of alternative energy
in the remote villages of Nepal. It has an extensive
aims to generating 25 Mega Watt of electricity
through pico, micro and mini hydropower plants
during ve year period of NRREP. Solar, Bio-gas,
Bio-mass and improved cooking stoves are also
targeted for extensive growth.
Governments of Denmark and Norway, DFID (UK),
kfW (Germany), GiZ (Germany), SNV/Netherlands,
The WB, ADB, UNDP, UNCDF are supporting fund
to GoN for NRREP.
Around 80 private companies/ rms are working for
the development of MH in Nepal, according to PQ
List of AEPC/NRREP (mid July 2014).
Poverty Alleviation Fund, Kadoori and DolIDAR
also take initiatives in establishing MHPs for
the benet of people living in remote hills and
mountains.
The success in MH technology and bearing ability
to share knowledge and skill to other countries,
USAID has established Regional Centre for
Excellence in Micro Hydro (RCEMH) in Nepal. The
RCEMH is planning to create better access to the
aspirants in the region and beyond.

Review of Micro Hydro Implementation

Modality for Rural Electrication
By Madhusudhan Adhikari
Background
In its 50 years journey of small water power
generation system travelled from Ghatta - Water
Mills-Multi Purpose Power Unit (MPPU) - Pico
hydro - Micro hydro - Mini hydro - Mini grid - grid
connected micro/mini hydro. During its course
of development, different delivery modalities
and nancial support models have been tried out.
Judging from the perspective of deployment, the
technology development modalities were by fairly
successful. In period of thirty years, around 30
MW of electricity is produced from off-grid pico/
micro/mini hydro projects implemented through
government and non-government projects and
programmes providing lights to more than one
million rural people. But, the time has proved that
this pace of development of off-grid electrication
will not serve the people aspiration and meet the
need of the electricity in the changed context of
social and technological development.
Micro hydro development path actually travelled
different ownership models: from mill owner
developing mills (private entrepreneur led) to
micro hydro user committees and micro hydro
co-operative. The private sector ownership has
virtually stopped from 2006 when RE policy
2006 scrapped subsidy to private developer. The
private entrepreneur and community led models
of construction and operation of micro hydro
schemes have their own merits and demerits. In the
recent context of socio/economic and demographic
changes in the rural areas, it seems that there is
shortage of volunteers to lead community micro

hydro development process which takes, even in

its normal course, 2-3 years to complete it. The
operation and maintenance of MH project for
another 15 years of its useful life has separate story
to tell. Therefore, the community led model1 has
shown its serious limitations for future scaling up
of micro hydro technology to provide services in
rural Nepal. This has again made it mandatory to
review the micro hydro development modality to t
in the changed context. It seems imperative to vouch
for some sort of new MHP implementation model
where private entrepreneurs role cleared up and
subsidy policy should not curtail the private sector
led modal as well.

Issues in Existing Community Led Model

Longer implementation cycle
Following are the main areas where the micro hydro
development cycle eats up time and resources,
Time taking from demand to approval process
1year
No time card, low quality of DFS, slow
exchange of feedbacks comments among
stakeholders etc
Bidding process and documents for nal
approval 1 year.
No proper bidding process, interest group
play, time for documentation, no time pressure
felt by parties.
Financing arrangement and construction time
: 1-2 years

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11

Big funds to be arranged by user committee,

ination and time value of money not
considered, poor construction supervision,
seasonal nature of construction and poor
project management skills.
Unreasonable time for testing commissioning
and power output verication 1 year.
Companies taking it lightly, RSC not following
up, AEPC waiting it to come, issues of low
power output, ow seasonal issues etc.

Difculties to arrange nance timely

Micro hydro construction demand reasonably high
upfront construction cost, the government has mode
provision of investment subsidy through Alternative
Energy Promotion Center (AEPC), but the subsidy
covers only around 50% of the total cost of
construction. It is very difcult for user committee
to arrange remaining of the 50% and they have to
move from door to door of the potential funding
government and non-government agencies which
takes long time and consume large part of the funds
collected. This is the most time consuming issue if
someone tries genuinely also. Moreover, now a day
it has also started to become an opportunity to some
of the user committee ofcials to collect funds from
all possible sources and misuse it.
The table below shows indicative funding and time
needed to collect it,
Source of Funds

% in total Time to get

project
funds
cost
40-50%
2 year
40-30%
2-3 years

GoN (AEPC) Subsidy

Public funds (DDC,
VDC, PAF, ING/Os etc.)
Users contribution cash 15-20%
and kind
Loan
very few
cases

1-2 years
2-3 years

Reasonably long time is needed to collect the

required fund from difference sources, as they
provide funds only when it is surplus from other
activities and in the continuous effort/lobby from
user committee. Moreover, due to ination, time
value of money and loss due to time (wastage of
cement, steel, or completed civil work swept out by
landslide slide or rain etc) the nancial efciency
12

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of the project is very low. Though the modality

foresees that micro hydro developing communities
should take loan from nancing institution but it has
been not very easy, the nancing institution demand
for the collateral which user committee cannot
provide easily.

Unmatched High cost and poor quality of

construction
The micro hydro installing companies argue that
the time to complete construction, handover to user
community and collect the full payment of a micro
hydro project takes 3 - 4 years, the installation
companies need to adjust tender prices at the time
of bidding to cover ination, exchange risk and
possible bad debt from communities. This is one
primary reason for the high cost of micro hydro
equipment in Nepal. According to them those new
and inexperience companies who do not structure
these risks in their initial bidding will suffer loss
and may try to deliver lower quality equipment
and services. This story is partly true but main
part of the cost incurs in the lost time and in
efcient project management skills of the installing
company and the user committee. There is not clear
cut responsibility between installing companies,
regional service center (RSC) technicians and
project developing user committee.

Possible New and Revised Implementation

Modalities
Separating the construction works between
user committee and Installation Company
In this model, it is envisaged that after
conditional approval of detail feasibility study
(DFS) from technical review committee (TRC),
community from their cash and kind contribution
and support from DDC and department of
irrigation should take the responsibility complete
civil works. When they come with the objective
evidence of 75% completion of civil works then
AEPC should give the nal approval of subsidy
and start the selection of Installation Company.
The whole responsibility of completing hydro

mechanical work and electro-mechanical

works like Penstock, PH equipment and all
transmission work of the project should be given
to Installation Company with xed time and
budget system (fully covered from subsidy). The
remaining of distribution of electricity produced
will be done by villagers with help of DDC,
VDCs, PAF. Here AEPC have to wait the user
committee to complete civil works by putting
their genuine effort within a specied time to
get the subsidy otherwise the project should
be dropped in the initial stage not have more
problems later. This reduces the risks in the part
of the installation companies but there could be
only few communities which can come forward
with commitment of civil works.
Giving Installation Company complete full
construction the project
After approval of the micro hydro project from

TRC, the user committee (together with AEPC/

DDEU/RSC) has rst to work to assure the funds
required for the project from AEPC subsidy,
users contribution, DDC, VDCs, PAF etc. before
tendering the project. Once the funds for the
project is secured then the nal approval is given
and AEPC will select a installation company
and give full responsibilities to construct the
project in the xed time and cost basis to
complete the construction and handover to the
user community. For this model the existing
subsidy policy of providing only 40-50% of
total project cost in subsidy is not possible, this
demand higher percentage of subsidy lets say
around 75 to 80% ( which is actually in not
strange as APEC from last three year is giving
70-80% subsidy (including additional) even in
the inated cost).
The analysis of nancing mixed of the
completed micro hydro projects shows that in
the present nancing mechanism also the total

Villagers carrying turbine to project site

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13

public funds (subsidy, support of DDC, VDC,

PAF, Sansadakosh, direct support from ministry
of nance etc.) is around 80-85% of total project
cost in most of cases. In this model, AEPC (RSC
or DDU) will supervise the installing company
together with user committee to ensure the
quality of construction as per AEPC standard
and to complete project within given budget and
timeframe.
Private sector to take complete responsibilities
to construct and run project
This could be a derivative of micro utility model,
where AEPC subsidy is made available to private
developer also. Then the interested private sector
developer will carry out the project work in
turnkey basis from survey, design, construction
and operation and maintenance of project
(project period 10-15 years). Detail contracting
arrangement could be worked out to make
binding to company to construct micro hydro
Written by
Mr. MADHUSUDHAN ADHIKARI (MPhil, MBA
, BE )
National Advisor, Community Electrication
Component, National Rural and Renewable
Energy Programme, Alternative Energy Promotion Center
Renewable Energy Expert having total of 22 years experiences
managing programmes and projects in various renewable energy
technologies in private, INGO, and government agencies.

projects as per the AEPC technical guidelines and

standard and run without major power stoppage
for project life time. The community and private
company will agree on a tariff structure and user
committee will ensure that every member of
the community will pay their tariff in time and
will also support the developer to build and run
project. The local government VDC or DDC
will play the role of patron to protect the interest
of the private company as well of the local user
through a properly agreed contract between both
parties. In the derivate of it, the government
subsidy could be given as the difference between
the levelised cost of electricity of the micro
hydro plant (in kWh basis) and normal tariff of

14

Jalashak

Nepal electricity authority (NEA) which is paid

by other electricity users in country. This model
will be very cost efcient and timely because
with private entrepreneur the decision making
and nancing will be faster and may get loan
easily from nancing institutions in the project
nancing concept. However, attracting private
sector investment demands liberal state policy
in subsidy so that investor will get rational prot
for the risk taken and the co-operation of user
and local government in the construction and
operation of the micro utility in the remote rural
areas.

Conclusions
In the conclusion, it is evident that the exiting
modality of micro hydro project implementation is
lengthy, costly, resulting poor quality output and not
nancial efcient, so there is no for improvement.
The main challenges are to have quality of the
preparation of the projects, faster arrangement of the
nancing, good quality and timely construction. The
need to build the capacity of local communities in
the proper use of electricity produced and operation
and maintenance management of micro hydro plant
for long term economic benets of the rural and
remote people.
The present modality demand big nancing
burden is shouldered to community which is
practically difcult to achieve. Similarly, there is
lacking clearing up responsibility for the overall
project management. Hence, there is a need to
revise the existing implementation and introduce
some new and efcient modalities for up-scaled
implementation of micro hydro technology.
Engagement of private sector entrepreneurs in the
development and management electricity as micro
energy utility may open wider spectrum of energy
enterprising which will lower the responsibility
of state to provide electricity to off grid areas and
denitely will gain cost efciency as well. For all
this government should make enabling environment
for rural electrication through micro hydro and
user should be committed to pay for the modern
services.

Regional Centre of Excellence

in Micro Hydro (RCEMH) - Nepal:
An Introduction

icro hydropower technology for mechanical

power and electrical power generation is a
technology that has matured substantially over the
past 50 years. Many governments in South Asia,
South East Asia and Africa and many other regions
in the world have begun to embrace the technology
as a viable energy option, especially for remote
and rural areas, within a larger renewable energy
portfolio driven strategy. In Nepal, Alternative
Energy Promotion Centre (AEPC) established in
1996 as a central nodal agency to promote and
disseminate alternative energy,
is a body of experience built
up around conceptualization
till nancing and
implementing more than 1,000
micro-hydro installations so
far.
With a view of supporting
disseminate extensive knowledge and experience
built up locally in the eld of Micro Hydro Power,
at regional and international level, USAID/Nepal,
Ministry of Finance/Government of Nepal and
Alternative Energy Promotion Centre under
Ministry of Science, Technology and Environment
Signed/concurred in signing Implementation
letter for the establishment of Regional Centre of
Excellence in Micro Hydro (RCEMH) in Nepal.
The implementation letter was signed during mid

of April 2013 with major support for a period of

two years coming from USAID. Government of
Nepals contribution through AEPC will not be less
than one-third of the total actual costs of the AEPC
reimbursed by USAID. The main objective of the
RCEMH is to make available Nepals 30+ years of
experience in Micro Hydro development regionally
and globally. More specically, following are the
objectives of RCEMH:

To ll the knowledge and experience gaps

amongst policy makers that are embarking on a
new generation of renewable
energy frameworks, of enduser communities, and of
developers and investors
interested in pursuing off-grid
hydro projects.
Be a knowledge centre for
the micro hydro sector in the South Asia by
establishing a Regional Centre of Excellence in
Small Hydropower in Nepal.

Be a self sustaining centre for promoting micro

hydro development that will catalyze high
growth of micro hydro by addressing all-round
capacity building needs for the sector.

Given that securing livelihoods is a major theme

in rural development, and the central role of hydro
power generation, it is proposed that RCEMH with a

Jalashak

15

mission of improving information dissemination on

micro hydro, promoting quality and efcient product
application, supporting clean energy establishment,
catalyzing high growth of micro hydro through
advisory and human resource capacity building
and improving the economy of the local region
be established within AEPC. The Centre would
provide demonstration and success case studies of
efcient small hydro power technologies, designs,
and practices, product testing for maintaining
quality and performance standards,
technical assistance to manufacturers
to build quality products and encourage
local entrepreneurs to develop the local
economy and raise living standards of
disadvantaged populations and advising
policy makers.

of clients that will represent a base set of business

revenues. These clients could be domestic as
well as regional and international companies
or organizations that are pursuing micro hydro
projects or designing the policy and institutional
arrangements for the sector.
The Centre will develop its business through
client visits, focused market outreach, and thought
leadership on key topics (e.g., micro hydro) and
building out area social infrastructure, workshops

In order to be self sustainable centre

within reasonable timeframe, which is
one of the specic objectives of RCEMH
the key focus of the Centre will be to sell
service offerings to clients, which are
broadly classied as:
Knowledge management
Training
Project monitoring
Technical assistance.
Under these broad themes, the Centre will offer
a range of services. These would include, for
example, human resources training, conducting
research, establishing product manufacturing
standards, facilitating small hydro power technology
information sourcing, promoting quality and
efcient turbine applications, promoting the
manufacture of quality small hydro power plants
and system designs, providing opportunities for
appliance producers, suppliers and researchers to
promote new technologies in efcient small hydro
power plant manufacturing, catalyzing policy
changes with respect to the application of efcient
technologies in small hydro power plants, and
encouraging new investments in efcient quality
products manufacturing and research.
RCEMH will concentrate on securing a core set

16

Jalashak

and conferences and information dissemination.

Direct client presentations, written proposals and
referrals will be the main tool the RCEMH which
will be used to achieve its business plan goals.
RCEMH has recently provided Training of Trainers
(ToT) to 20 highly skilled MH professionals in the
recent past who are now ready to take up training
assignments on various aspects of Micro Hydro
Development locally and regionally. RCEMH is
contemplating supporting establishment of one
dedicated demonstration Micro Hydro Plant nearby
Kathmandu, where all the available technologies
will be demonstrated while operating, which will
double as training centre for providing training
in every aspects of MH development. A number
of guidelines, standards and manuals to cater to
the region are under development and dedicated
marketing visits to few of South Asian (e.g.
Afghanistan) and South East Asian countries (e.g.
Myanmar) are planned to be completed in this scal
year (2014/15).

Private sector eorts in ourishing

MH in Nepal

he success stories of Micro Hydro in Nepal

have been told in places and occasions
frequently. The Government, The private sector and
the community are appreciated in such contexts.
Keeping in view their involvements and enthusiasm
none of them should be called great, but greater, as a
matter of fact.

by twenty more and only a few are recently entered

ones. Balaju Yantra Shala Pvt. Ltd., Kathmandu
Metal Industries Pvt. Ltd., Nepal Yantra Shala
Energy, Nepal Hydro & Electric Pvt. Ltd. Nepal
Machine and Steel Structure and Thapa Engineering
Industries who were the pioneers in the eld are
leading the sector for 50 to 25 years.

Private sector, one of them bears different

characteristics, off course. These entrepreneur
communities have to live with a lot of challenges
- such as unsecured investment, non-cooperative
staffs, changing policies and regulations and users
unsound background. However, they take the
challenge at the cost of satisfaction of their social
responsibility, just besides earning of livelihood by
business ventures.

Besides the data in the table below, AEPC/NRREP

mentioned that pico and micro hydro plants
established in between mid-July 2012 to mid-July
2014 generate 6.2 MW of electricity. NRREP will
be operational till mid July 2017. It has a set target
to establish pico hydro, micro hydro and mini hydro
plants to generate in total of 25 MW of electricity
in its ve year tenure. Thus, the private sector sees
sizable opportunities to show and prove strength to
further development of pico hydro, micro hydro and
mini hydro projects. The upcoming projects of other
institution like Kadoorie, Poverty Alleviation Fund,
Dolidar and others will be in addition.

The private sector techno-entrepreneurs undertake

all assignments related to establishment of
Micro Hydro - survey and design of the projects,
manufacturing of suitable turbines, penstock pipes,
poles a hydro-mechanical parts, supply, delivery,
installation and commissioning and after sales
services by one single individual company or
rm. However, the classication of jobs has been
exercised in the later phase. Thus, a company or
rm dedicated to micro hydro development may
perform assignment of all jobs as said above or part
of the jobs, as opt for specialization on a single or
selected segment.

AEPC/NRREP has conducted prequalication of

private sector companies and rms for various MH
assignments. For survey and design 61 companies
and rms have been prequalied. Likewise, 78
companies and rms for installation of MH projects
are prequalied - categorically, 11 for pico hydro
(up to 10 kW), 14 for up to 50 kW and 53 for 100
kW. Similarly, prequalication of manufacturing
companies or rms is under progress. The PQ for
manufacturers is set to classify as manufacturer of

Despite of the problems and hurdles, they have been

successful to serve
AEPC
the country for half
Category
Quantity Capacity
a century by some,
Pico Hydro
862
2.339 MW
for a quarter of a
Micro Hydro 815
17.786
century by around
Mini Hydro 1
0.4
a dozen and around
Total
1678
20525
one and half dozen

Other institutions
Quantity Capacity
772
1.364
472
6.819
41
15.940
1285
24.123

Total
Quantity Capacity
1643
3.703
1287
24.605
42
16.340
2963
44.64

(Source: AEPC/RET Baseline 2012)

Jalashak

17

turbines, manufacturer of penstock

pipes, poles and other hydro
mechanical parts, and manufacturer of
Electronic Load Controller.
The private sector has been expanded
to some 80 company or rms in
the country (excluding those who
specialized in survey and design
jobs). The private sector, as such,
has accumulated strength to delivers
supplies and services for establishing
micro hydropower plants to generate
electricity of 8,000 kW or more per
Francis Turbine ( 92 kW ) at Kathmandu University
year, taking as one company or rm
perform for 100 kW in an average.
Micro Francis Turbines were fabricated in the past
Besides that the sector has a pool of around 500
but they did not yield expected results. Later, one
technical and 500 non-technical staff altogether.
92 kW Francis turbine which is a reduced size of
Most of them are experienced in their profession.
4 MW design was made in Nepal and waiting for
The private sector companies and rms are working testing at Kathmandu University Turbine Testing
at the limit of 100 kW capacity projects till now,
Lab. The hydrolic prole of runners of the 92 kW
but a segment of the private sector entrepreneurs
Francis Turbine was developed at KU TTL with
claim that they are looking for their real capacity to
application of CFD. As such, the future of Francis
show performing for 1000 kW or below projects.
Turbine fabricating in Nepal has been considered
On the basis of long time experience, specially
coming soon in action.
turbines and accessories manufacturers, say that
Nepals private has been successful in supplying
they are in the position to manufacture bigger than
turbines and other parts to foreign countries also.
100 kW size turbines. The Government and other
They even provide service of installation and
institutions linked to micro hydro if extend technical
commissioning of the plant. Likewise, they are
and nancial support for new and better instruments
seen sometime doing transfer of technology to
their capacity will grow rather. Some of such private
foreign technical personnel in Nepal or at their own
companies or rms are looking for opportunities to
countries.
manufacture Francis turbines to suite the possible
Given below are some earlier steps in micro hydro
demand in Nepals bigger than micro hydropower
in Nepal which resulted favourable situation in the
projects that is to come into market in future.
present days and expected better for the days to
Regarding manufacturing of Francis turbines, some
come.
First Installation of MHP was done at
Godavari in 1962 (5 kW) by BYS
Fifth 5 years plan (1975/76-79/80)- Small
hydro Power mentioned for the rst time
Wrien by :

Purna N. Ranjitkar
Consulng Editor,

18

Jalashak

Sixth 5 years plan (1980/81-84/85)- ADB/N

Lunched Rural Electrication Project
The Government waived the Licensing
Requirement for MHP- 1984

 Eighth 5 years plan (1992/93-96/97) - Target

Fixing Started
Ninth 5 years plan (1996/97-2001/02)- MHP
Targeted 5 MW
REDP Initiated in 1996
AEPC Established in 1996
ESAP Initiated in 1999
NEA Announced the Policy of purchasing
electricity from Independent Power Procedure
The development phases
1960 : KMI developed Improved Grinding Mill
1962 : BYS manufactured and installed 5 kW
Propeller Turbine
1974 : BYS manufactured Crossow Turbine and
installed
1975 : BTI manufactured Pelton Turbine
1979 : BYS manufactured Crossow Turbine for
rural electrication
1989 : KMI produced Multiple Purpose Power
Unit
1982 : BYS manufactured Crossow T3 Turbine
1983 : 1. Development and installation of rst
split-ow turbine by BYS
2. First Corss-ow turbine installed by
KMI
3. First stand alone electrication unit
produced by BEW
4. First add-0n generator installed by DCS
5. Development and construction of
propeller turbine in a scroll case by KMI
6. Development and construction of a mini
poncelet water wheel by AEW
1984 : BYS manufactured Crossow T7 Turbine
1985 Electric motor converted to induction
generator by KMI
1986 : Redesign of MPPU by NSECO
1987 : Cross-ow turbine with double inletvalves produced by TEW
1988 : Pelton wheel on a 1 kW induction
generator tested by DCS
1989 50 kW stand-alone electrication plant
installed by DCS
1990 : 1. KMI introduced Peltric set

Turbine
3. 50 kW electrication with Pelton
wheel installed by KMI/NPP
1992 : 1. 100 kW stand-alone rural
electrication project initiated by DCS
2. Design, manufacture and
commissioning of 250 kW turbine by
NHE
3. High tension lattice transmission line
towers tested and developed by NHE
2003 : NYSE manufactured Crossow T15
Turbine. BYS introduced T15 simultanously.
Water Energy Consultants Association Nepal
(WECAN), established in 2009, is one of the major
private sector forces in the country to develop Micro
Hydro in Nepal. This is an umbrella organization
of surveyors and designers. Members of this
association are contributing in survey and design
of micro hydropower projects and even larger
hydropower projects.
The main objectives WECAN are:
Supporting Consultants values, rights and
maintaining professionalism.
Coordinating at national and international level
for carrying out seminars, workshops, trainings
and consulting services.
Creating awareness about the importance of
water and energy by media.
Creating WECAN fund internally involving
consulting rms and individual consultants so
that it can support for strengthening the technical
capability of water and energy sector within the
country
Creating a common platform for all water and
energy consultants working within and abroad
country so that it could even support for long
term economic development of the country.
The surveyors and designers of the private sector
dedicated to promotion and development of micro
hydro development in Nepal has played important
roles. For vital participation such players, AEPC/
NRREP has prequalied 61 such survey and design
of micro hydropower projects.

2. BYS manufactured Crossow T12

Jalashak

19

Some Turbines exporteted from Nepal

BYS manufactured 70
kW Crossow Turbine in
Chjenbedji, Butan

Turbine made by Nepal Yantra

Shala Energy installed in Laos

BYS Turbine installed at

Sarawak Plant, Malaysia.

20

Jalashak

Mini Grid Development in Nepal

an RERL experience

here are thousands of isolated mini and

MHPs and hundreds of thousands solar home
systems (SHS) promoted by Alternative Energy
Promotion Centre (AEPC) of Ministry of Science,
Technology and Environment providing electricity
to rural population of the country. AEPCs
agship programmes; Rural Energy Development
Programme (REDP)/ Renewable Energy for
Rural Livelihood (RERL) Programme and Energy
Sector Assistance Programme (ESAP) helped in
development of the MHP sector and are a good
example for other similar mountainous countries
to learn from. There are around 3,000 micro-hydro
electrication schemes with a total installed capacity
of about 28,000 kW in the hills and mountains of
Nepal providing electricity access to hundreds of
thousands of households.
Why Mini Grid ?
MHPs installed in the isolated areas in the rural
parts of the country are mainly serving the lighting
needs of the people. The average plant factor
is around 20% or near. On the other hand, the
average installed capacity of MHP in Nepal is
around 20 kW which does not allow simultaneous
operation of multiple end uses to increase the
plant utilization factor. In addition, the demands
for power is increasing rapidly in rural areas too
as the living standards are improving and many
MHPs are struggling to meet the peak demand. In
this contradictory scenario where some plants are
not using their capacity and others are overloaded,

providing reliable and quality electricity is a huge

challenge for community managed micro utilities
scattered all over the country. If MHPs have
interconnected facilities for transferring spill power
from one area to the other, more productive uses can
be operated and consequently increase the overall
plant utilization factor. Though MHP has benetted
the rural population tremendously by providing
better lighting and opportunity for operating micro
enterprises, there are limitations to scale up due to
low power output (<100 kW), supply disruption and
quality of electricity.
Furthermore, due to lack of integrated rural
electrication planning, a major emerging problem
is encroachment by the national grid in the
areas served by MHPs creating divisions within
the community between people who want grid
electricity and those who want to keep the MHPs
in operation. According to data analyzed by RERL,
the national grid has already encroached about
11% of MHPs catchment area and about 27% more
will be affected within a few years. Though it is
mandated by the Electricity Act (1992) for NEA
to purchase the power plant itself once its grid
reaches an area previously served by an isolated
hydropower plant, NEA has a practice of not
interconnecting hydropower plants of less than 100
kW to its system, which rules out power purchase
agreement for all most all MHPs installed by rural
communities. On the other hand, Nepal Electricity
Authority (NEA) considers management of such
plants cumbersome as a consequence, MHPs are

Jalashak

21

purchased and shut down. If appropriate policy and

related rules and regulations for interconnection
of MHPs with the NEA grid is not formulated
and implemented, more MHPs are likely to be
abandoned resulting in waste of national resources
and efforts, AEPC/REDP/RERL brought up this
issue with NEA time and again and was usually told
that it would not be feasible to connect MHPs with
the national grid both from nancial and technical
perspective. The main issues raised by NEA area;
Most of the generators used in MHPs are
induction types which draws the reactive
power from grid,

could be interconnected forming a Mini Grid and

the Mini Grid could be interconnected with the
nation grid, sustainability of these small plants could
be ensured and rural population could generate more
revenue that could be spent for their development.
Besides the economic benet, people would get
quality electricity as the MHPs have to meet the
voltage and frequency standards of the national
grid. In addition, maximum utilization of installed
MHP has direct positive inuence in reduction of
greenhouse gases.
NEA would also get benet from interconnecting

Topographic map of six MHPs (circle) forming the Mini Grid,

rectangle represents the distribution transformer of national grid.
Connection of small MHP creates technical
and managerial hassles to the grid and NEA
and it will aggravate the safety issues during
repair and maintenance.
AEPC and UNDP initiated establishment of a
Mini Grid connecting a number of MHPs in
Urja Upatyaka of Baglung district to address the
technical and management related issues raised
by NEA. If the MHPs of below 100 kW capacities

22

Jalashak

MHPs as it need not buy the plants which would

be managed by the beneciaries themselves, just a
Power Purchase Agreement (PPA) to buy electricity
would sufce. In addition, connection of power
generating sources at the end point of weak grid
will help improve the voltage prole in the system.
MHPs interconnected local grid (Mini Grid) is an
innovative and cost effective solution to deliver the
reliable electricity supplies to the beneciary. It is
One step forward in the development of micro

hydro in Nepal. Mini Grid, conceptualized by

AEPC/REDP, is a local grid that connects two or
more isolated MHPs to operate in parallel mode and
share the load in the system in same proportion with
respect to their capacities. Mini Grid would have
various benets including sustainable supply of
electricity, some of which are discussed below.
Optimization of Electricity Generation:
o Balancing the surplus electricity of one or
more MHPs with the decit of another one
or more MHPs
o Opportunity to establish bigger sized
industries (mechanical workshops with
welding machines and lathe machines,
stone crushing machines, etc) requiring
more electricity (more than 50 kW) than
generated by an average MHP of 20 to 30
kW
o Operating all plants at their full generation
capacity round the clock without dumping
spill power
o Continuous power supply even when one
plant is closed down for vital maintenance
activity, beneciary households would
still get electricity to meet their basic
household needs from other plants.
Connection of Mini Grid with National Grid:
o NEA would be more inclined to
interconnect a Mini Grid than individual
MHPs with their system as it would reduce
technical and managerial issues raised by
them
Achievement of System Sustainability:
o Increased revenue for MHPs from
increased uses/sales of electricity
o Promotion of better inter scheme coordination and sense of electricity
Resources, Government grant, communities'
cash contributions and voluntary labor spent
for building MHPs are not wasted by closing
them down when the grid reaches their
catchment areas.

Development of distributed power generation

system which is more reliable in the long run
with MHP and other small scale renewable
energy technologies as an integral part
of the national electricity production and
distribution system.
Urja Upatyaka Mini Grid Project
MHPs interconnected local grid is a much talked
about potential technology to address some issues
related to rural electrication in Nepal. However,
there was no known micro hydro interconnected
Mini Grid in operation in South Asia. Concept
papers and thesis have been written highlighting
potential benets from the perspectives of optimum

(This article is excerpted

from a write up by Mr.
Shakya, then Renewable
Energy Expert at AEPC/
RERL. This was published
in Experience Sharing of
Mini Grid and Biomass
Gasication, a AEPC/
Mr. Bhupendra Shakya RERL publication).
utilization of electricity both locally and through
grid feedings, and nancial benets to rural people.
In 2001, UNDP/REDP had supported the Institute
of Engineering, Tribhuban University to test
synchronization of MHP in its laboratory with the
national grid. The interconnection was successfully
done. A report was produced and disseminated
widely to stakeholders including NEA. In 2007,
REDP conducted Detailed Feasibility Study
for Mini Grid Development in Urja Upatyaka,
Baglung. In 2009, AEPC/REDP supported
interconnection of six MHPs in Baglung with the
total installed capacity of 107 kW through 8 km
long 11 kV line. As a result, over 1200 households
are beneting with quality and reliable electricity
round the clock.
The MHPs connected as Mini Grid are Upper Kalun

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23

Khola (12 kW/ 115 households) at Paiyun, Kalun

Khola (22 kW/ 230 houses holds) at Paiyun, Urja
Khola I 26 kW/274 households), Rangkhani, Urja
Khola II (9 kW/158 households), Rangkhani, Urja
Khola IV (14 kW/ 290 households), Damek and
Theule Khola (24 kW/ 290 household), Sarkuwa.
All six of them generate 107 kW of electricity and
connected households are 1200.
Lessons learnt
Mini Grid connecting several MHPs is
technically feasible. However, nancial
viability depends on a number of factors such
as end-uses potential, distance between the
MHPs, total capacity of the MHPs, potential
for power trading with NEA, etc. A rigorous
assessment is necessary to determine nancial
viability.
Mini Grid could be the permanent source
of electricity for areas with low chance of
getting the national grid in near future.
By interconnecting a number of MHPs, Mini
Grid provides sizeable capacity to connect
with NEA grid. Furthermore, it creates an
opportunity for rural people to trader power
with the national grid and thereby keeps their
plants in good condition.
Capacity building, coordination,
understanding among community is major
step for sustainable operation of Mini Gird
project.
Baglung Mini Grid is becoming a research
place and has built condence for replication
of Mini Grid projects in other parts of the
country.
Way forward
Capacity building: The community that
operates the Mini Grid requires continuous
support for still some more time. RERL has
helped them to prepare their short term and
long term strategies. As the technology and
the management system are both new to the
24

Jalashak

rural areas, AEPC's support is required for

training operators, cooperative management
and end-use promotion.
Continuous research and development of
technologies involved is establishment of
a Mini Grid is required to build up local
capacity for operation, management, repair
and fabrication. Academic institutions, private
companies and AEPC need to come together
to help incorporate Mini Grid in curriculum,
undertake research and development and
ultimately fabrication or assembling.
Productive End-uses: Special efforts need to
be given to promote productive end-uses so
that the system can be nancially viable.
Monitoring: AEPC and DEES need to closely
monitor the operation of the Mini grid and
provide technical assistance for some time.
Interconnection with the national Grid:
AEPC's Initiative to interconnect the Mini
Grid with the national grid has not yielded
any result so far but the initiative needs to be
continued. Grid connection will give many
benets to the community and the NEA. It
will open new avenues in the mini-micro
hydropower sector in the country. The rural
people will not merely be consumers but also
producers and suppliers of power.
The nancial support for institutionalization
of the cooperative, smooth operation, repair
and maintenance and capacity building of
the people involved in Mini Grid may still
needed.
Another source of power needs to be
connected to the Mini Grid to meet the
growing power demand and stability of the
whole system.
Before more Mini Grid are promoted in the
country, framework, guidelines and standards
need to be prepared based on the Baglung
experience. A cursory study has indicated that
there are 21 potential Mini grid projects in 16
districts.

Hydro Power Development in the

Global Energy Market

Micro/Mini Hydro Power as an Important Segment

By Jagadish Kumar Khoju
Introduction
In achieving the sustainable development, hydro
power project considers a key position and operates
at the crossroads of two essential requirements
for human welfare water and electricity in the
form of modern clean energy. Even though there
is no magic single solution to the sustainable
development of the world, hydro power projects
offer development potential for cleaner energy
and effective water management where and
when it is most needed. Moreover, the broad
range of hydro power projects types and scales
makes it more appropriate for various needs and
contexts. The hydro power projects nevertheless
remain efcient tools provided they form part of
a properly integrated approach which balances
all the factors required to achieve it. While not a
cure-all for the worlds energy and water needs
hydro power projects deserve proper consideration
in any assessment of a countrys energy and water
requirements. There is no doubt that the hydro
power projects can contribute the energy mix and
deliver benets for the sustainable development
if the projects are found to be appropriate to local
circumstances.
Electricity and Development
Access to affordable and reliable energy underpins
all sustainable development objectives. Where
energy supplies are lacking or insufcient,

employment prospects are hindered, women and

children remain trapped on the treadmill of domestic
chores and so cannot participate in the wider society,
children do not have access to adequate education,
health concerns remain neglected and services
are insufcient, economic growth is stunted, and
the way out of poverty is barred. Thus, basic
development goals will be thwarted unless energy
provision can be augmented. Following are the key
points how electricity contributes the development.
Leads people out of poverty by enabling small
scale enterprise and off-farm activities
Empowers women by freeing them from
domestic drudgery
Promotes better health and health- care by
powering hospitals and dispensaries
Increases educational opportunities for
children by supplying power to schools
Provides cleaner and more efcient heating
and cooking facilities in the home
Spurs economic productivity in providing
reliable energy services for industrial
development
However, poverty is a multi-faceted challenge and
policies are required to tackle all aspects of it and
electrication alone cannot deliver on development
promises. In many places, both rural and urban
electricity services, often suffer from poor or
corrupt management, illegal connections, power

Jalashak

25

shortage and blackouts. In addition, an electricity

service is usually too expensive for the poor to use.
Quite apart from these problems, different kinds of
systems will be required for different areas. Remote
rural areas are often best served by decentralized
off-grid projects, where as densely populated urban
areas often benet most from a centralized, compact
electricity system.
Similarly, most people live without electricity in
developing countries and many of these people are
the worlds poorest and therefore least able to cope
with challenges. Electrication can assist in meeting
the millennium targets.
Small Hydro Power Project: Response to
Rural Electrication
Where the extension of national grid to remote
isolated rural communities is not feasible, the
decentralized small hydro power projects can
contribute signicantly to improving the economic
development of the rural communities. Small scale
hydro like micro and mini hydro power projects
are most cost effective energy alternatives to
national grid extension in the rural areas. Actual
the comparative advantage of the small scale hydro
has already resulted in the thousands of small dams
encountered all over the world. The increasing
number of such hydro projects can be observed
in Asia, where is a signicant hydro potential for
further development.
Table 1. Small Hydro Power Project Installed
Capacity by World Region (Source: IHA)
Region
Asia
Africa
South America
North America
Europe
Australasia-Oceania
Total

Installed
Percentage
capacity (MW)
32,641
68.0 %
228
0.5 %
1280
2.7 %
2929
6.1 %
10723
22.3 %
198
0.4 %
47, 997
100 %

Small Hydro Power Project in European Union

An important role in achieving European

26

Jalashak

renewable energy goals can still be played by

small hydropower resources that are distributed
on the continent and can offer all the benets
of dispersed renewable generation. Since about
1950, small hydropower has had a negative
development in some EU member countries.
Many small hydropower plants have been shut
down because of age and competition from new,
larger plants. The potential from reinstalling these
plants and upgrading existing, underdeveloped
small hydropower plants is estimated at an annual
electricity production of approximately 4,500 GWh.
Based on an analysis/study carried out in the years
19992000, the potential of new plants, reduced
when economic and environmental constraints have
been taken into account, is calculated to be about
19,600 GWh per year. If the economic situation
for producers improves, and the environmental
constraints decrease, the total contribution from
small hydropower in the EUs fteen member
countries could probably reach 60 TWh in the
decade 202030.
However, among the European countries, Norway
has a good experience in mini hydro power project
development; its experience can be replicated in
the other developing countries as well. In Norway,
there was a big political issue of rural electrication
for the remote rural areas when 75 % urban area
had the access of electricity in 1980. In order to
address this issue, the Norway government initiated
to study of possible options of rural electrication
for the rural areas. The study showed that the mini
hydro power projects are not nancially sound and
the government had formulated the subsidy policy
for the mini hydro power promotion and highly
encouraged local bodies, private companies and
community as well. As a mountainous geographical
situation and abundant hydro power potential,
there was no problem of site identications and
the increasing number of mini hydro project
development was introduced as an approach of
mini- grid that more than two mini hydro power
projects gradually was synchronized at local
networking form and the projects were integrated
with irrigation purposes also from the perspective
of multipurpose use of water resources for the more

nancially viable. However, the central government

played such coordinated role that the mini grid
projects were further connected to national grid in
feasible specic sites as per local demand. Norway
is now such country where 99.8 % of total energy
supply comes from hydro power.

up an industrial sector capable of manufacturing or

assembling all micro/mini-hydropower components
except the generators for micro-turbines up to 500
kW. Nepal has developed micro/mini-hydro power
projects of 52 MW through various technical and
nancial support programmes.

Micro/Mini Hydro Power Project in Developing

Countries

Successful Implementation of Micro/Mini Hydro

Power Project

Micro-hydro installations are widespread in Asia,

where there is a signicant resource potential for
further development. China has a well-developed
hydropower industry, with an estimated 60,000
small hydropower installations (less than 1 MW),
and a combined capacity of about 17 GW. The
installed small hydropower (less than 10 MW)
capacity in Viet Nam is 61.4 MW, with an estimated
potential of about 1.8 GW. Some 3,000 sites have
been identied for micro-hydro installations in the
range of 1 to 10 kW. These sites will serve irrigation
and drainage needs, in addition to generating
electricity for 2 million households. Many areas
in Viet Nam do not have access to the electricity
grid, due to the high extension costs. In these areas,
mini hydro units are used by individual families
for lighting and battery charging (for television
and lighting use). It is estimated that over 3,000
family units of 1 kW or less are installed in Viet
Nam. Other developing countries like Sri Lanka (35
MW), Laos, Bangladesh, India (1694 MW), Brazil
(859 MW), Peru (215 MW), Congo (65 MW),
Pakistan (107 MW), Papua New Guinea (20 MW)
are the potential countries in micro and mini hydro
power project development which most population
reside in the rural mountain areas. There are also
small scale hydro power projects in Africa. Guinea
has identied 150 mini- and micro-hydro sites;
Nigeria plans to develop 700 MW of capacity in
236 different projects. In the sub-Saharan region
of Africa, such as in Ethiopia, Malawi, Uganda or
the United Republic of Tanzania, topographical
and hydrological conditions would also allow the
implementation of hydropower plants.

Successful implementation of mini hydro power

project in developing countries does not complete
with the successful commissioning of the project.
However, sustainable operation and maintenance of
such project must be taken into consideration from
the planning phase of the project. The sustainable
mini hydro power project considers the several
parameter of the smooth operation like quality,
quantity, continuity, efciency, affordability.
Similarly, institutionalization is another major
factor of the sustainable project and operation
cost of the project must be covered at a local level
even after the discontinuity of external support.
Hence, major objectives of the project should be
clearly addressed before initiating such project
which include social infrastructure (provision of
energy for schools, health services, and drinking
water), physical infrastructure (irrigations systems,
roads), and economic infrastructure (small scale
prot making business). As the capacity of rural
people is very low in technical knowhow of such
technology, capacity building processes like
orientation, training, awareness creation are always
most even this process takes a lot of time and
additional cost except the total project construction
cost which not only minimizes the operation and
maintenance of the project in the project operation
phase but contributes to increase the ownership
of the community towards the sustainable project.
Similarly, since the political interference is a
major hurdle in the local community, the corporate
structure or cooperative model of the management
and the address of property right issue should
always be considered from the beginning the project
planning.

With the support of different development partners

since the 1970s, Nepal has succeeded in building

Based on the various studies of case study reports,

Jalashak

27

following are the major technical and nancial

reasons of the failure of the mini hydro projects:
Poor site selection and installation of
equipment,
Affected by oods and landslides,
Poor estimation of hydrological conditions,
Non economic canal design
Negligence of civil works,
Lack of nancial sources for the repair and
maintenance
It is well accepted matter that small river sections
with geological stability, no vulnerable species, a
high head within a short horizontal distance and
where is strong support for development from the
local community represent best sites for technically,
environmentally and economically development
sound hydropower project. The small hydro option
depends for its success on competence in the wise
choice of the best sites. However, funding small
projects simply on the basis of their scale would
be a pitfall, all factors like political, economical
,social, technical, environmental and, legal, need to
be considered into the equation while development
( M r. K h o j u i s S e n i o r
Engineer at Alternative
Energy Promotion Centre
(AEPC) and Community
Electrification Progarmme
Manager at National Rural
a n d R e n e w a b l e E n e rg y
Programme (NRREP) of AEPC
in Nepal and contact email :
Mr. Jagadish Kumar Khoju jagadish.khoju@gmail.com

and managing the small projects. Furthermore, in

developing countries, there might be institutional
constraints as well as a lack of experts to undertake
the required support to several hundred small
projects, where one large scheme might be easier to
handle such point of view.
Conclusion

28

Jalashak

Renewable energy represented one-fth of total

power generation, out of which hydro power is
most advanced and exible of renewable and
represents 87% of this production. Similarly, most
of the worlds hydro energy remains to be tapped
and worldwide total of economically feasible hydro
generation is over roughly three times the current
exploited total. Europe has the highest share of
exploited capacity (more than 45%) and major
hydro power projects of the 21th century will
be built only in Asia, Latin America, and Africa.
In developing countries, electricity supply from
the large hydro power project to scattered rural
hilly areas is not nancially viable due to high
transmission and distribution cost to extend the
grid to scattered settlements and low purchasing
capacity of rural poor and the small hydro power
project like micro/mini hydro power project is
the best solution for the rural electrication to the
isolated communities which can be taken an entry
point for holistic rural development in a sustainable
manner. Just electrication is not only the solution
of sustainable development and there are various
factors of social, economic and environmental issues
in rural areas. Hence, if the proper management of
development project taking the entry point of small
scale hydro power project is introduced, it not only
enhances the sustainable rural livelihoods of the
areas but also supports to large hydro power project
development. Such type of win-win approach
not only contributes to achieve the international
development goals at local and national levels but
also supports the global thinking in sustainable
development issue as large hydro power project
development is the national and international
interest and the produced electricity can also be
exported to neighbour countries to meet the high
power demand of dense population and small scale
hydro project development, including mini grid
connection to national grid in the feasible sites, is
the interest for local level in hydro power potentially
developing countries in the world.

AEPC in promotion of RETs

NRREP focus on Micro Hydro

lternative Energy Promotion Centre (AEPC)

is a nodal institution established by the
Government of Nepal with the objectives to
popularise and promote the use of renewable energy
technologies, to raise the living standards of the
rural people, to protect the environment, and to
develop commercially viable renewable energy
industries in the country. AEPC was established in
November 3, 1996 under then Ministry of Science
and Technology of the Government of Nepal.
Currently, it is under the Ministry of Environment,
Science and Technology. The centre functions
independently, and has a eleven member board with
representatives from government sector, industry
sector and non-governmental organizations.
As Nepal faces the challenges of poverty, issues
of gender and social inclusion and issues of
climate change all at the same time, promotion
of renewable energy technologies has been one
of the indispensible tools to overcome these
challenges. AEPC, since its establishment has been
promoting sustainable energy solutions to off-grid
rural households and communities in Nepal who
primarily lack electricity to light their homes or
burning polluting fuels either for their lighting
or cooking needs or to run their local enterprises
and businesses. Recently, AEPC has also been
promoting solar options to urban areas in an effort
to lessen the burden of energy demand from the grid
electricity. Clean Cooking and Lighting Solutions
for All by 2017, the vision GoN to put on has
created new opportunity to AEPC to perform well
and with wider participations.

programmes, Standardization, quality assurance

and monitoring, Service and support, Subsidy and
nancial assistance delivery, Co-ordination with
various government organization, development
partners, NGOs/INGOs and private sector,
monitoring, evaluation and quality control, and
strengthening AEPC and its partners are the main
roles and responsibilities.
AEPC has implemented Energy Sector Assistance
Programme (ESAP I and ESAP II), Rural Energy
Development Programme (REDP) successfully in
the past.
Both phases of ESAP, supported by Danish
Government were appreciably meaningful in
development and promotion of micro hydro in
Nepal. Other renewable energy technologies were
also taken in to consideration as well in the ESAP.
The support was focused on three main areas:
1) increased access to electricity produced from
renewable energy sources (hydro and solar) to
the rural population 2) increased use of improved
cooking stoves among the rural population and
3) capacity development of the Centre itself. The
rural activities are implemented through a solid
network of NGOs and the private sector. The
Centre is responsible for quality assurance, result

AEPC has wider vision and mission in promotion

of alternative energy as roles and responsibilities.
Short, medium and long term policy and plan
formulation, Promotion of RET development

Jalashak

29

dissemination and awareness raising. The activities

were implemented despite the running conict in the
country.
Rural Energy Development Programme (REDP)
was launched in 1996 as a small pilot initiative in
ve remote hill districts. UNDP and The World
Bank supported REDP to conduct as an AEPC
programme. The programme was subsequently
scaled up via the national Hydropower Development
Policy of 2001, which focused on rural development
via low-cost hydropower systems.
Keeping in view better results and requirement,
REDP was extended to 40 districts. As of 2010,
the programme had connected 59,000 households
to micro hydropower installations, constructed
317 new micro hydropower
plants with 5.7 megawatts
of installed capacity, and
installed numerous improved
cooking stoves, toilet-attached
biogas plants, and solar home
heating systems.
The primary beneciaries
of the programme, which
is now being extended to
all 75 districts, are rural
communities, with particular
attention to vulnerable women
and indigenous people.
In addition to improving
access to energy services, the
programme has made possible signicant progress
in rural development. Research conducted by UNDP
and Nepals AEPC found that improved access to
electricity in rural areas led to increase in household
income by a thin growth, reduced average annual
household spending on energy and creation of 40
new businesses for every new micro hydropower
station brought on line. In addition to supporting
business formation and raising rural incomes, this
research found increases in school enrolment rates
(particularly for girls), and improvements in child
and maternity health, in water quality and access
to modern sanitation, as well as in environmental
quality. Reductions in time spent gathering water
and rewood also allowed women to more actively
30

Jalashak

participate in socio-economic life.

REDP, thus, demonstrated the benets that can come
from rural development programming that takes an
integrated approach to economic, environmental,
and social development challenges
Renewable Energy for Rural Livelihood Programme
(RERL) had been introduced as continuation of
REDP in 2011.
As AEPC has hosted different project interventions
through support from development partners in the
past.. Especially, the second phase of the Energy
Sector Assistance Program (ESAP II) nanced by
the GoN, Danida, DfID, the Norwegian Ministry
of Foreign Affairs, KfW and SNV followed a
more coherent and coordinated
approach that led towards
realization of the need of a more
coordinated sector development.
As its result, in 2011, the GoN
and development partners
(Danida, DfID, the Norwegian
Ministry of Foreign Affairs,
KfW, SNV and UNDP) jointly
agreed to support formulation of
a National Rural and Renewable
Energy Programme (NRREP),
that it will be a single programme
modality in which there will no
other programmes or projects
funded outside the NRREP and
where the GoN has committed
itself to reform the subsidy system and nance
a higher portion of the subsidies for Renewable
Energy Technologies (RET).
The development objective of the National Rural
and Renewable Energy Programme (NRREP) is
to improve the living standard of rural women
and men, increase employment of women and
men as well as productivity, reduce dependency
on traditional energy and attain sustainable
development through integrating the alternative
energy with the socioeconomic activities of women
and men in rural communities.
NRREP has a clear emphasis on effectively

reaching out to the more remote and poorest part

of the country, it will apply demand led approaches
actively involving beneciaries in decision making,
and support use of energy for productive purposes
leading to income and employment increase in rural
areas, and it has mainstreamed Gender and Social
Inclusion (GESI) into the programme at all levels.
GESI mainstreaming is done by including it in
the development objective, each of the immediate
objectives, in relevant outputs and activities, in
indicators and targets as well as in monitoring.
It is expected that the Government of Nepal
(GoN) will mainstream GESI in the energy sector
through providing equal access to and control of
renewable energy technologies (RET) for increasing
contributions to rural women and men towards
economic growth. This will be in line with the GoN
commitment to mainstream GESI and empowerment
of women in the interim 3 year (2010-2013) plan.
The Renewable Energy for Rural Livelihood
(RERL) is implemented from 1 April 2011 upon
the successful completion of the Rural Energy
Development Programme (REDP) with main
focus on enhancing rural livelihood. It is a joint
project of Government of Nepal, United Nations
Development Programme and the World Bank. The
objective of the programme is to increase equitable
access to energy services expanded for the poor
women and socially excluded groups. One of the
intended outputs of the RERL is to use the lessons
and best practices of REDP and other experiences
for design of new model pertaining to livelihood
promotion and poverty alleviation in Nepal. In
addition, RERL supports to Alternative Energy
Promotion Centre (AEPC) for implementing the
Rural Energy Policy 2006 in conjunction with the
local level environment mainstreaming following
the decentralized rural energy planning and
management.
In order to achieve the targets, AEPC has developed
a number of policies, regulations, guidelines and
other norms. It has also organized various training
programmes to develop human resource for the
development of renewable energy technologies.
The full edged team of Community Electrication

Sub-Component (CESC) of AEPC has the

responsible for development and promotion of pico
hydro, micro hydro and mini hydro systems. The
capable and experienced technical personnel are
leading it for the best results NRREP envisaged.
Likewise, the assigned regional centres to assist
AEPC plans and programmes are putting their efforts.
CESC with AEPC/NRREP
Community electrication schemes, currently,
are too small to provide meaningful capacity for
productive energy end-use. At the same time, it
has in general not been possible to utilise the small
capacity available in a protable manner that would
make a difference to the schemes sustainability.
Load factors are low, and this generates far less
income from electricity sales than is necessary to
achieve sustainable operation and maintenance.
The Community Electrication Sub-Component
(CESC) within National Rural Renewable Energy
Programme, keeping in view the constraints
said above, aims at stepping up the rate of
implementation, increasing the average size of
micro hydro power schemes, and improving the
sustainability and nancial viability of small and mini
hydropower schemes by taking a business approach.
The support is primarily geared to overcome
technical, nancing, institutional and managerial
challenges, which constitute the most serious
obstacles in scaling up community electrication.
Thus, electrication to communities by Mini, Micro
and Pico hydro schemes is the focus of CESC.
As agreed in the governments national framework
agreed by major external development partners in
NRREP, CE-subcomponent, through its four specic
outputs has a target of installing 25MW through
mini/micro hydropower and 4,000 Improved
Water Mill. This is expected to electrify additional
150,000 rural households. According to CESC, it
has installed 402 no. of MHP and PHP from July
16, 2012 to July 15, 2014 which generates 6.1 MW
MHP and beneting 63,360 HHs. Similarly, 1,751
IWM installed and benetting 82,224 HHs.

(Jalashakti/Nov.2014)

Jalashak

31

Micro Hydro in Nepal and NMHDA

epal Micro Hydropower Development Association

(NMHDA) was established in December, 1992 as
the umbrella organization of privately run companies
and rms active in survey and design, manufacturing
and fabrication of turbine, penstock pipe and other
parts and construction is active since its establishment
and successful to accelerate the advancement in
developing micro hydropower sector in the country.
The members of this organization had played a crucial
role in furnishing the micro hydro resource of Nepal.
Some of them have been contributing this sector for 3
decades and more. To date, around 3000 micro hydro
plants are providing a worthy and much needed service
to the villages of Nepal. These hydropower plants are
becoming main source of energy in the villages. It has
been popular amongst the rural people, mostly women
whose time has been saved a lot and their
workload consequently.
For implementation micro hydropower
projects the Association members have
been involved in all aspects of micro
hydro for its sustainable development
as they are of diverse typed, focusing
on project identication, survey, design,
installation, manufacturing, repair and maintenance
and research etc. of micro hydropower.

The Associations objectives are to contribute to

national economic progress by advancing micro
hydropower industry in Nepal and to assist its members
in fullling the task. To achieve the objectives, due
attention have been paid to following aspects.
As a lobby group to inuence micro/mini/small
hydropower policy.
To provide technical support to its members in
the eld of hydropower technology.
To be focal point for the hydropower related
activities in the country.
Working jointly with regional and global players

32

Jalashak

of the sector.
Conducting Promotional, Training, Research
and other supporting activities for the sector.
Some of the representative main activities of NMHDA
are:
1. Representation of private sector players of
micro hydro sector.
2. Capacity Enhancement Activities: Training
Seminar, Discussion.
3. Working jointly with various educational and
training institutes for research activities.
4. Working jointly with GoN/Alternative Energy
Promotion Centre (AEPC) for implementation
of sector activities.
5. Working jointly with other sectors
of Renewable Energy Technology (RET)
like Solar, Biogas and Wind etc.
6. In process for establishment of a
Model MHP as a Micro Hydro Technical
Centre for research, study and human
resource development of micro hydro.
7. Activities for commercialization and
mass awareness of micro hydro sector.
8. Publication of Jalashakti (the Micro Hydro
magazine) regularly.
9. Maintaining a website dedicated to all aspects
of Nepals Micro hydro and NMHDA.
10. Publishing books/manuals/cds useful for
development of micro hydro sector.
NMHDA in HRD for Micro Hydro
Nepal Micro Hydropower Development Association
(NMHDA) is contributing the MH sector since 1996
AD by producing semi skilled and skilled manpower.
NMHDA, also conducts training programmes to
produce better surveyors, designers, installers, and
others types of technical hands required for the sector

such as MHP Operators Training, Advanced Training

for MHP Operators, Survey and Design training,
AutoCAD training for Engineers and Technicians
working at manufacturing companies, Power Output
Verication Training and so on. POV and Trouble
Shooting Training for AEPC Engineers and Installers
Training for technicians of installer companies also
conducted in the past.
Conducting training programmes to produce the
operators for micro hydropower plants (MHPs) has
become a regular process to NMHDA. NMHDA trains
the people from villages to smoothly run the plant, take
care of civil structure and electrical and mechanical
equipments and parts. Quality improvement and
sustainable operation of MHPs are also benets of
such trainings. Obviously, the participants will be
benetted more from the training programme as the
training organizer and the trainers involved are well
experienced and bear sound knowledge.
Remarkably, NMHDA had conducted MHP Operators
Training for 52 batches, Advanced Training for
MHP Operators for 10 batches, Refresher Training
for Operators 1 time so far. Likewise, Survey and
Design training, AutoCAD Training for Engineers
and Technicians, POVI Training, Managers Training
and Quality and Management aspects of MHP for
installers had been organized. POV and Trouble
Shooting Training for AEPC Engineers and Installers
Training for technicians of installer companies also
conducted successfully.

native skills. The spare slot may be used for studies

on other turbines of suitable size and type.
The Model MHP will be well used in the future as a
MHP Technical Centre. The Model MHP will basically
work as:
a. MH working demonstration in powerhouse
b. Training hall with demonstration of MH
components and displays
c. Will conduct trainings on MHP
d. Will support the centre based training to
engineering colleges and technical training
institutes
e. Provide visiting opportunities to science students
of different levels
f. Manage the centre to allow and promote the
common visitor to visit the centre
Publishing books/manuals/CDs
NMHDA has been successful in publishing useful
books/manual/CDs for development of micro hydro
sector. The manual for MHP Operation for operators
and Construction and Installation Manual have been
published by NMHDA with support of AEPC/ESAP
and AEPC/RE-Source.
Micro/Mini Hydro Survey & Design Tools (book and
CD) authored by Mr. Pushpa Chitrakar, hydropower
specialist was published by NMHDA with support of
AEPC/NRREP.

Dhamile Khola MMHP in Kathmandu

The present Executive Committee

Keeping in view the requirement of a live site for

research, studies and training on micro hydropower,
NMHDA has moved ahead with establishment of
Model Micro Hydropower Plant at Setidevi VDC-8,
Pharping, 12 km south-west from Kathmandu, Ring
Road at Balkhu. Civil construction works of weir,
intake, headrace canal have been done. The electromechanical equipments and parts also have been
fabricated for the Model MHP. There will be Pelton
turbine (37 kW) and Crossow turbine (10 kW) in a
single Powerhouse to be run by two different sources
of water. A separate space has been planned for a
suitable size Francis turbine that is made in Nepal by

Mr. Surendra Bhakta Mathema is the President of

Nepal Micro Hydropower Development Association.
Immediate Past President is Mr. Mahendra Bahadur
Karki, First Vice President is Mr. Prem Tamrakar and
Second Vice President is Mr. Prakash Chandra Subedi.
Likewise, Mr. Krishna Prasad Devkota is the General
Secretary, Mr. Dilip Acharya is Secretary and Mr. Tej
Narayan Thakur is Treasurer. Similarly, Mr. Bishnu
Prasad Neupane, Mr. Bal Bahadur KC, Mr. Basanta
Raj Lamichhane, Mr. Krishna Prasad Dhakal, Mr.
Shree Ram Adhikari and Mr. Thakur Prasad Adhikari
are Executive Committee Members.

Jalashak

33

Members of
Nepal Micro Hydropower Development Association
S/No.
Name and Address
01 AG POWER COMPANY PVT. LTD.
SAMAKHUSI, KATHMANDU, NEPAL
Phone: 01- 4382407, 4355875
Fax : 01-4382407
Email: ag@ntc.net.np

02

ALLIANCE CONSULTS PVT. LTD.

03

APPROPRIATE ENGINEERING (PVT.)

LTD.

SHANTINAGAR, KATHMANDU, NEPAL

Phone: 01-4107768
Email: info@allianceconsults.com

KALIKANAGAR, BUTWAL -11,

RUPANDEHI, NEPAL
Phone 071- 437748, Fax : 071- 437748
Email: appeng@nec.com.np

04

11

DIBYA URJA PVT.LTD.

12

D.L. ENERGY CONCERN PVT. LTD.

13

ENERGY DEVELOPMENT SERVICES

PVT. LTD.

05

BEACON ENERGY PVT. LTD.

06

CADS CONSULTANCY & HYDRO

RESEACH PVT. LTD.

14

15

AMRITNAGAR, KIRTIPUR 1,
KATHMANDU, NEPAL
PHONE : 01-4288730 .4283801
Email: crcnepal2009@gmail.com

08

09

CREAM HYDEL PVT.LTD.

16

GREAT NEPAL PVT. LTD.

17

GREEN TECH NEPAL PVT. LTD.

BODE, MADHYAPUR THIMI-4,

BHAKTAPUR, NEPAL
PHONE: 01-5011213
Email: gtechnepal@gmail.com

H.A. HYDROPOWER PVT. LTD.

DHAULAGIRI CEM ENGINEERING

PVT. LTD.

19

HIMALAYAN POWER INDUSTRY

PVT. LTD.

DHAULAGIRI HYDRO CONSULT

BUTWAL PVT.LTD.

20

BUTWAL INDUSTRIAL ESTATE,

BUTWAL, RUPANDEHI, NEPAL
Phone: 071-540496, 071-546422
Email: dhaulagiribtl@yahoo.com

34

JWAGAL- 10, KUPONDOLE, LALITPUR,

NEPAL
Phone: 01- 5546859, 01-5011213, Fax: 015011213
Email: great@greatnepal.com

18

SANKARNAGAR V.D.C.-2, BUTWAL,

RUPENDEHI, NEPAL
Phone: 071- 438671, Fax : 071-438670
Email: chydel@wlink.com.np

Jalashak

THAPATHALI, KATHMANDU, NEPAL

PHONE: 01-4253985, FAX:01-4261665
Email: mail@hagroups.com.np

BHAKTAPUR INDUSTRIAL ESTATE,

BAYASI, BHAKATAPUR, NEPAL
Phone : 01-6610109
Email: kmihp@ntc.net.np

BAGLUNG -11, SHREENAGAR CHOWK,

BAGLUNG, NEPAL
Phone : 068-520221,522705
Email: dcem@mail.com

10

GAUTAM ENERGY ENGINEERING

PVT. LTD.
BUTWAL INDUSTRIAL ESTATE,
BUTWAL, RUPANDEHI, NEPAL
Phone: 071-550140, 071-543314
Fax: 071-543314
Email: energy@ntc.net.np

GAIRI TOLE, BASUNDHARA,

KATHMANDU, NEPAL
Phone 01-4016791, Fax : 01-4016791
Email: benergy@gmail.com

CENTRE FOR RESOURCE

CONSERVATION NEPAL PVT. LTD.

ENERGY PRABARDHAN COMPANY

PVT.LTD.
GONGABU -7, KATHMANDU, NEPAL
Phone : :01-4353697, Fax :01-4380069
Email: epc_5@yahoo.com

JWAAGAL, KUPANDOLE, LALITPUR,

NEPAL
cads.mh@gmail.com

07

KMC -29 , MITRANAGAR, KATHMANDU,

NEPAL
Phone: 01-4354398
Email: dlecnepal@gmail.com

SITAPILA 02, KATHMANDU, NEPAL

Phone: 01-4033016, Fax : 01-4033016
Email: edspl@ntc.net.np

BALAJU YANTRA SHALA PVT. LTD.

BALAJU INDUSTRIAL ESTATE, BALAJU,

KATHMANDU, NEPAL
Phone 01-4350894, Fax : 01-4350379
Email: bys@info.com.np

MAHARAJGUNJ, KATHMANDU, NEPAL

Phone: 01-4720996, 01-4720716
Email: dibyaurja@wlink.com.np

HIMALI POWER DEVELOPMENT

PVT. LTD.

NEW ROAD, BHARATPUR 04, CHITWAN,

NEPAL
PHONE:056-692893 FAX : 056-520482
Email: hipod2009@hotmail.com

21

HIMCHULI MULTIPURPOSE
COMPANY PVT. LTD.
BANEPA 05, KAVRE, NEPAL
PHONE: 011-680435
Email: himchulicpl@gmail.com

22

HOUSING & HYDRO SERVICE

COMPANY PVT. LTD.

NA TOLE, PULCHOWK, LALITPUR,

NEPAL
Phone: 01-5541864, 01-5547485
Fax: 01-5547485
Email: housing@ntc.net.np

23

HYDRO ENERGY CONCERN PVT.

LTD.

SAMAKHUSI, KMC - 29, KATHMANDU,

NEPAL
PHONE :01-4355416 FAX :01-4354186
Email: hydroconcern@gmail.com

24

KHANAL ENGINEERING
INDUSTRIES PVT. LTD.

BUTWAL INDUSTRIEL ESTATE,

BUTWAL, RUPANDEHI, NEPAL
Phone: 071-544492 Fax: 071-547492
Email: khanaleng@ntc.net.np

25

KATHNANDU METAL INDUSTRY &

HYDRO POWER PVT. LTD.

27

28

MANASALU ENERGY PVT. LTD.

32

MANIKEJ URJA PVT.LTD.

33

MEC CONSULTANCY PVT. LTD.

34

MOTHERLAND ENERGY GROUP

PVT. LTD.

35

DHAPASI, KATHMANDU, NEPAL

Phone : 01-6915612 Fax: 01-4650387
Email: mecc@wlink.com.np

MULTI POWER CONSTRUCTION

PVT. LTD.
ALOK NAGAR, NAYA BANESHWOR,
KATHMANDU, NEPAL
Phone: 01-4106650, 01-4106651
Email: jyoad2011@gmail.com

MULTI SERVICE LINK NEPAL PVT.

LTD.
ICHANGU VDC -6, KATHMANDU,
NEPAL
Phone: 01-6208789
Email: md@doslink.com.np

37

NATIONAL POWER PRODUCER PVT.

LTD.
KATHMANDU, NEPAL
Phone:
Email:

BHUMIPRASHASAN CHOWK 13,

BIRATNAGAR, MORANG, NEPAL
GPO BOX NO : 150, BIRATNAGAR
PHONE :021-471492, 01-4650919
Email:kgktc_brt@wlink.com.np

38

NEPAL ENERGY DEVELOPMENT

COMPANY PVT.LTD.
SANEPA, LALITPUR, NEPAL
Phone: 01-5536490,01-5537679
Email: nedco@ntc.net.np

LUMBINI ENGINEERING &

HYDROPOWER

39

NEPAL HYDRO AND ELECTRIC LTD.

MAA SHAKTI ENGINEERING &

HYDROPOWER PVT. LTD.

40

NEPAL MACHINE & STEEL

STRUCTURE

MALIKA ENGINEERING &

MECHANICAL WORKS PVT. LTD.

41

K.P. BYABASAYIK SEWA PVT.LTD.

BIRENDRANAGAR-6, BUDHA PATH
LINE, SURKHET, NEPAL
Tel : 083-521428
Email: krishna_dhakal@ntc.net.np

KRISHNA GRILL & ENGINEERING

WORKS PVT. LTD.

DHANGADHI, KAILALI, NEPAL

PHONE: 091-522730, 091-525330
Email: malikaengg@ntc.net.np

DURBAR MARG, BUTWAL-6,

RUPANDEHI, NEPAL
Phone: 071-540212
Email: eadoce@nhe.com.np,
arkeng@nhe.com.np

BUTWAL- 6, RUPANDEHI, NEPAL

Phone : 071- 542522, Fax :71-541022
Email: nmass@ntc.net.np

GATTHAGHAR 15, BHAKTAPUR, NEPAL

PHONE: 01-6635391
Email: mashak2011@gmail.com

30

BIRENDRANAGAR -11, SURKHET,

NEPAL
Phone: 083-520045, Fax : 083- 522360
Email: manikej@gmail.com

BALAJU CHOWK, KATHMANDU, NEPAL

Phone: 01-4350580, 01-4385585
Fax: 01- 4382495
Email: meg061@ntc.net.np

SWAYAMBHU, KMC -15, KATHMANDU,

NEPAL
PHONE :01-4287818, 01-2180144
Email: lumbini.hydropower@gmail.com

29

CHABAHIL, KATHMANDU, NEPAL

Phone : 01-4823015, 01-4823016
Email: manasalu.energy@gmail.com

36

QUADON, CHHETRAPATI,
KATHMANDU, NEPAL
Phone: 01-4265539, Fax: 01-4259069
Email: kmihp@ntc.net.np

26

31

NEPAL POWER SOLUTION PVT. LTD.

PALPASA ROAD, HETAUDA,
MAKWANPUR, NEPAL
PHONE : 057-691955 057-210833
Email: npshetauda@gmail.com

Jalashak

35

42

NEPAL YANTRA SHALA ENERGY

43

NORTH ENGINEERING COMPANY

PVT. LTD.

PATAN INDUSTRIAL ESTATE,

LAGANKHEL, LALITPUR, NEPAL
Phone: 01-5522167, 01-5527857,
Fax: 01-5530600
Email: nysenergy@wlink.com.np
28 MAINA NAGAR-4, BUTWAL,
RUPANDEHI, NEPAL
Phone: 071-550181, 071-546622
Email: necpl@ntc.net.np,
ecbutwal@gmail.com

44

OSHIN POWER SERVICES PVT. LTD

45

POWER TECH NEPAL PVT.

46

PRABIDHI UTTHAN ENGINEERING

KENDRA

B.T.I. COMPLEX, BUTWAL, RUPANDEHI

Phone: O71-545217 Fax: 071-551525
Email: oshinpower@ntc.net.np
PATAN INDUSTRIAL ESTATE, LALITPUR
Phone: 01-5522263, 5543067
Fax: 01- 4288886
Email: powertech@info.com.np

53

STRUCTO NEPAL PVT. LTD.

54

SUNSHINE ENERGY PVT.LTD.

55

TECHNICAL DESIGN ENGINEERING

CONSULTANCY & CONSTRUCTION
PVT. LTD.

47

56

TECHNO VILLAGE PVT. LTD.

57

TEJ ENERGY SOLUTION NEPAL

PVT.LTD.

48

RURAL & ALTERNATIVE ENERGY

PVT. LTD.

HEAD OFFICE: MAIN ROAD, DAMUALI

CHOWK, TANAHUN
Phone : 065-560573, 01-4388604
Fax: 065-560899
Email: resurja@ntc.net.np

49

SEIMENS HYDRO ENGINEERING &

ENERGY PRODUCTS

58

SINGHABAHINI ENGINEERING
W0RKS PVT.LTD.

59

52

36

SITARA CONSULT PVT. LTD.

PULCHOK, LALITPUR, NEPAL
Phone: 01-01-5549045
Email: sitaraconsult@wlink.com.np

SOURYA ENERGY PVT.LTD.

CHABAHIL, KATHMANDU, NEPAL

Phone: 01-4822600, 01-4822472
Email: souryaenergy@ntc.net.np

Jalashak

TRISHNA HYDRO ENGINEERING &

BUSINESS CO. PVT. LTD.
BIRENDRANAGAR- 3 KALAGAU,
SURKHET, NEPAL
Phone: 083-521230, 083-521953
Fax: 083-521953
Email: energyskt@ntc.net.np

60

UNIVERSAL CONSULTANCY
SERVICE PVT. LTD.

BALAJU CHOWK, KATHMANDU, NEPAL

Phone: 01-4350580, 01-4385585
Fax: 01-4382495
Email: ucs@ntc.net.np

61

ITAHARI, SUNSARII, NEPAL

Phone: 025-587169
Email: sewitahari123@gmail.com

51

THAPA ENGINEERING INDUSTRY

PVT.LTD.

BUTWAL INDUSTRIAL ESTATE,

BUTWAL, RUPANDEHI, NEPAL
Phone: 071- 543658/ 551560, Fax: 071-551559
Email: tei@ntc.net.np

AWA ROAD, BAGLUNG, NEPAL

Phone: 068-520822, Fax: 068-520822
Email: siemenshydro@ntc.net.np

50

BANASTHALI, KATHMANDU, NEPAL

01-4390229
GPO Box No : 8975 EPC 1522
Email: technovillage.co@gmail.com
PEPSI COLA , KATHMANDU, NEPAL
Phone: 01- 4992942 Fax: 01- 4992942
Email: tejesnepal@gmail.com

RADHA STRUCTURE &

ENGINEERING WORKS PVT. LTD

BANESHWOR, KATHMANDU
Phone: 01-4472111, 4491132 Fax: 01-4491030

SAMAKHUSI, KATHMANDU, NEPAL

Phone: 01-4383095, 01-4383096
Email: info@sunshine.com.np

MAYALBARI, TEKU, KATHMANDU,

NEPAL
PHONE: 01-4230013
Email: tedecc@yahoo.com

(TECHNOLOGY UPLIFTMENT
ENGINEERING CENTRE)

HETAUDA-11, MAKWANPUR
PHONE : 057-522880
Email: tuecmp@gmail.com

PATAN INDUSTRIAL ESTATE,

LALITPUR, NEPAL
Phone: 01-5521192/ 5526161, Fax: 01-5542118
Email: structo@wlink.com.np

UNIVERSAL EQUIPMENT
INDUSTRIES PVT. LTD.

BUTWAL INDUSTRIAL ESTATE,

BUTWAL, RUPANDEHI, NEPAL
Phone: 071-540074, Fax: 071-540271
Email: unibtl@yahoo.com

62

URJA CONSULT PVT.LTD.

JADIBUTI, KATHMANDU, NEPAL

Phone: 01-4991213
Email: urjaconsult@ntc.net.np

More information about NMHDA members is availble in

Website : microhydro.org.np

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