720_en_Promotion of Small Hydro in Nepal

7/28/2019 720_en_Promotion of Small Hydro in Nepal

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Promotion of Small Hydropower InNepal

Sridhar Devkota, Project Manager

Small Hydropower Promotion Project,

SHPP-GTZ


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1. Nepal

Location: Latitude 26022 N to 30027N

Longitude 800

4 E to 880

12E Sandwiched inbetween two big countries China and India.

Area = 147,181 Sq. Km

Population = 23.1 Million ( 2001 Census) Literacy rate = 54%

GNI per Capita = US$340 (WB 2007)

Life Expectancy Male = 63 years

Female = 64 years


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Religion Hindu = 82%

Buddhist = 11%

Others = 7%

Major River Basins Koshi

Gandaki

Karnali

Mahakali

Average Annual Precipitation = 1700mm (May September)

1. Nepal .contd.


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Estimated Total Annual Average run-off for thecountries 600 perennial river = 200billion m3

Estimated water storage potential = 88billion m3

Estimated theoretically potential hydropower =83000MW

Estimated Technically viable Hydropower = 43000MW

Present Status of Energy Hydro Installed capacity 555MW (GoN 400MW,

IPP155MW)

Thermal Installed Capacity 54MW (GoN) Electricity Access to people 42% of Population

1. Nepal .contd.


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2. Hydropower Policy

No license required up to 3MW capacity projects. Implementation of projects on BOOT basis Encourage to develop Storage and multi purpose

projects, public private partnership approach Mobilization of internal capital market for investment Electricity Export Encouragement of community /cooperatives / local

bodies Foreign investment on HP generation/ transmission and

distribution Private sector establishment shall not be nationalized

during license period Exchange facilities to foreign investors, can repatriate

the amount in foreign currency at the prevailing rate


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3. License Royalty

Yearly12500 US$100MW 500MW

Yearly125 US$/MW5MW 100MW

Yearly25000 US$500MW - Above

yearly625 US$1MW 5MW

-Up to 1MW

PeriodRoyaltyInstalled Capacity


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4. Power Purchase Agreement

27%esc

10

-

$0.0875/kWh

$0,05/kWh

1

-

12%esc

5

-

15%esc

6

-

18%esc

7

20%

21%esc

8

24%esc

9

---Income Tax

Dry Season(Jan April)

9%esc

6%esc

3%esc

Wet season

(May Dec)

432Year

esc = escalation


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5. Small Hydropower PromotionProject (SHPP)

1.Objectives:

German Technical Cooperation (GTZ) startedSmall Hydropower Promotion Project (SHPP) in2001 with the aim that private entrepreneurparticipate in the development of Small

Hydropower Sector Facilitate the establishment of a market for SHP

leading to investments and associated economic

activities in rural areas,


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7. Achievements .contd

2. Synchonization Synchronization of isolated mini/micro-

hydropower plants into the grid Establishment of mini-grid

End use diversification in isolated plantsand introduction to energy efficiency e.g.,efficient lighting.

3. IPPs becoming capable in the sector

4. Improved communication amongstsector actors through seminars,workshops and training

5. Organizational Development Trainingfor Rural Electric Comminutes Over 295 rural community members trained

in distribution of electricity

6. Backstopping support to Micro-hydropower sector through ESAP,

Danida & AEPC, GoVN


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Feasibility Study report Review / Assessment < 100kW 270 projects

>100 kW 100 projects

Site Verification 110 Projects Construction Supervision technical support

Piluwa 3 MW Thoppal 1.65 MW

Sunkoshi 2.6 MW Feme 0.995 MW

Sange 0.183 MW Pati 0.996 MW

Baramchi 0.98 MW Phawa 5 MW

Rairang 0.5 MW Seti II 0.979 MW

Riddhi Khola 2.4MW Handi Khola 0.991 MW

Sisne 0.75 MW Mardi Khola 3.1 MW

Chaku 1.5 MW Mailung Khola 5 MW


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Projects initiation has made possible the investmentby private sector and financial institutions on SmallHydropower Sector reached to:

45M EURO loan dispersed to 37 Power Stations whosetotal worth is 67M EURO.

Further Investment on new projects are in the process.


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8. Stake Holders Interactive Meet

1. Project Finance & Risk Management2. Discussion on Financial Analysis of Hydropower

Projects

3. Power Development Fund and Financing of SmallHydropower

4. Issues Pertaining to Insurance of Small Hydropower

Project

A. Finance & Insurance


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B. Technical

1. Model Contract for SHP Civil Works Construction

Contract Introduction and Industry DiscussionForum

2. Sedimentation Problems on Hydropower Projects

and Silt ing Problems of Existing HydropowerPlants in Nepal

3. Water Conveyance Systems in Small Hydropower

Development,4. Interconnection Manual and Interconnection

Agreement for Small Hydropower Plants

8. Stake Holders Interactive Meet ..contd


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5. Issues Pertaining to Insurance of Small hydropowerProjects

6. Opportunities in Hydropower Investment in Nepal,

7. Grid Connection of Micro/Small Hydropower Plants,

8. Use of New Technology for Penstock Pipe on SmallHydropower Plants Glass Reinforced Pipe (GRP)



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DGIS Activities- Support to REEs

1. Organizational Development / FinancialManagement Training

2. Training for Trainers / electrical safety3. End Use Promotion,

4. Financial Planning / Accounting

5. House wiring Training



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1. Sharing of Experience on Leased out Small

Hydropower by NEA

2. Achievements and Challenges of PiluwakholaSmall Hydropower Project (3 MW), Experience

Sharing

3. Operational Experiences of Small Hydropower IPPsin Nepal

4. Media Training, Pokhara, Nepalgunj, Biratnagar,Chitawan - to Energy Journalists

C. Experience Sharing and Others



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Objectives:

A. Symposium

-To arrange Common plat farm to get together Policy Makers,

Entrepreneur, Investors, Regulatory Bodies, Power Purchaser,Financial Institutions, Insurance Agencies, Independent PowerProducers, Contractors, Consultants, Suppliers

-To interface to be well acquainted with investment opportunities in

Small Hydropower-To create environment for the interested to network and talk businesswith various players to finalize implementation of hydropower projects

B. Exposition

- To set up respective pavilion of interested off takers, developers,Financial Institutions, Independent Power Producers, Manufacturers,Developers, Contractors, Suppliers, sponsors to show their VisionMission, present work and future plan

9. Hydropower Investment Mart


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10. Publication

1. Mini Hydropower Design Aids, 2006

1. Organizational and Staff DevelopmentTraining for Rural Electric Entities, 2007


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11. Activities

Capacity Building of rural ElectricEntities

Technology Pilot project on connecting isolated

mini hydro to the national grid Two NEA owned isolated mini-hydropower

stations are successfully connected to the grid


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Implication of grid connecting micro/mini hydro

- As a result of government subsidy andaggressive promotion strategy large number of

micro-hydropower plants are being installed.During the current 10th Five Year Plan, the targetis to achieve 2 MW of Micro-hydro installedcapacity/year

If such MHP can be synchronized with the grid,NEA could just buy the electrical energygenerated (i.e., standard PPA) and need not

compensate the plant owner. Thus, a resource that is about to be wasted is

optimally used

11. Activities ..contd


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Thank you!!!

Documents

720_en_Promotion of Small Hydro in Nepal