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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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7. Achievements .contd
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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7. Achievements .contd
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)
8. Stake Holders Interactive Meet ..contd
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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
8. Stake Holders Interactive Meet ..contd
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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
8. Stake Holders Interactive Meet ..contd
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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!!!