Bonneville Power Administration Exchanges Transmission ... · PDF filedesign, and financing ... distribution interconnection lines ... In addition to a reliable power supply, the microhydro

US Energy Association // South Asia Regional Initiative for Energy, 1300 Pennsylvania Avenue, NW Suite 550 Box 142 Washington, DC 20004-3022

Telephone (202) 312-1230; Fax (202) 682-1682; website: http://www.usea.org; SARI/Energy www.sari-energy.org

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SOUTH ASIAN CENTRE OF EXCELLENCE IN

MICRO HYDRO (RCEMH)

REGIONAL WORKSHOP ON MICRO

HYDROPOWER DEVELOPMENT:

PROSPECTS &

CHALLENGES IN SOUTH ASIA

U.S. AGENCY FOR INTERNATIONAL

DEVELOPMENT & NEPAL ALTERNATIVE

ENERGY PROMOTION CENTRE CO-

HOSTED WORKSHOP

IN KATHMANDU, NEPAL

Over 150 energy officials gathered in Kathmandu, Nepal to discuss strategies for microhydro electricity

generation to provide reliable energy access to villages currently lacking an economic way of powering their

homes. The U.S. Agency for International Development (USAID) South Asia Regional Initiative for Energy

(SARI/Energy) and the South Asian Centre of Excellence in Microhydro (RCEMH), through the Nepal

Alternative Energy Promotion Centre (AEPC) hosted a three-day workshop to identify and share best practices

and success stories of small-scale hydropower developments in South Asia. The audience included policymakers,

senior technical officials, and industry leaders with experience in microhydro projects from Nepal, with special

guests from Pakistan and Sri Lanka.

Left: Special Guest,

Honorable Deputy Prime

Minister Mr. Bijay Kumar

Gachhadhar, Home &

Environment Ministry.

Right: Deputy PM Kumar

prepares to do the official

lighting of the lamp to launch

the workshop.

RCEMH



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WORKSHOP HIGHLIGHTS The workshop concentrated on microhydro program implementation, manufacturing and installation, survey and

design, and financing. Discussions focused on best practices in the construction and operation of micro hydro and

small hydro facilities, as well as policies to support the sustainable development of electricity generation from

hydro resources.

The Challenge

There were two reoccurring themes during the workshop discussions – (1) the feasibility of connecting small and

microhydro projects to the grid, and (2) the challenge of obtaining the necessary community participation for

small and micro hydro projects to be successful. MHPs are usually located in villages located remotely in hilly

terrain serving small populations. Maintenance and installation of a grid line in these areas is extremely costly,

and bill payment is challenging. In addition, grid operators have not found complete solutions yet for maintaining

frequency control with grid connected renewables. Therefore, transmission utilities are usually reluctant to

connect these projects to the grid.

The Solution

Involvement of local communities, through village energy committees, for maintenance of transmission and

distribution lines and electricity bill payment recovery can solve these problems. Workshop participants strongly

advocated that decentralized generation and distribution in remotely located areas can be cost effective if

maintained by the local community itself. Involvement of local communities in the planning, implementation,

operation and maintenance of distributed generation projects will create sense of belongingness and

responsibility, and vested interest in the success of the project.

Another important key to solving the dilemma of how to reliably connect these small distributed generation

sources and provide electricity access to all, is cross sector involvement. It is imperative that developers,

community leaders, and the transmission system operator all work together to identify solutions. Guest speaker

Mr. Noel Priyantha, Chief Engineer (Renewable Energy) at Ceylon Electricity Board shared Sri Lanka’s

experiences in this area and strongly recommended that other countries take a similar approach – to form a

taskforce of utility, community members, developers, and other stakeholders whose goal is to identify the barriers

facing grid connection for small, rural communities (many of which rely on renewable energy sources) and

together develop frameworks for overcoming those barriers.

Inaugural Session

An inaugural session was held on September 12,

2011 in Hotel Annapurna in Kathmandu, Nepal.

Left: Dr. Narayan Prasad Chaulagain, Executive

Director of the Alternative Energy Promotion Centre,

highlights AEPC’s progress in grid connected and off-

grid renewable energy development during his keynote

remarks.

Right: Mr. David C. Atteberry, USAID/Nepal Mission

Director welcomes the delegates and highlights the

country’s need for improved energy security.

Below: Workshop participants



Page 3

REGIONAL CENTRE FOR EXCELLENCE IN MICRO HYDRO (RCEMH)

The aim of the RCEMH is to build upon AEPC’s and other stakeholder’s collective experience of engineering and project

development and delivery. RCEMH is designed to advise local, regional and international organizations and companies

that are pursuing micro hydro projects or designing the policy and institutional arrangement for the sector.

The objectives of RCEMH are:

To be a resource to policymakers that are embarking on a new generation of renewable energy frameworks, of

end-user communities, and of developers and investors interested in pursuing off-grid hydro projects.

Be a knowledge center for the micro hydro sector in the South Asia.

Be a self-sustaining center for promoting micro hydro development that will catalyze high growth of micro hydro

by addressing all-round capacity building needs for the sector.

Regional Potential

India

India has identified 15,384 MW in small hydro potential, of which 3042 MW is currently installed. Targets are

set for an additional 300 MW of added capacity per year. To support this, to date, 23 states have announced

policies for setting up commercial small hydro power plants. Most states have covered micro hydro as part of

their small hydro policies. Uttarakhand and Arunachal Pradesh have come up with specific policies for micro

hydro that mainly differs in allotment processes and eligibility. The Ministry of New and Renewable Energy

provides specific incentives for micro hydro power projects with capacities up to 100 kW and for projects with

capacities between 100 to 1000 kW. The Ministry of Power, under the Decentralized Distribution and Generation

scheme, provides

capital grants of 90%

for off-grid

renewable energy

projects including

micro hydro projects.

There is also a

growing private

sector in microhydro.

To date, 285 SHP

projects aggregating

1,423 MW have

been commissioned

by the private sector.

Nepal As a mountainous Himalayan country, Nepal is extremely

rich in hydro potential, both large and small, with over 30

years’ experience in microhydro project development. To

date, the country has built nearly 22,000 kW of installed

microhydro capacity. By 2013, the country expects an

additional 13,000 kW. The microhydro private sector of

Nepal is also developing, and is extending its products and

services inside and outside the country. However, policy

reforms are still needed to provide more support to off-grid

renewable energy options such as microhydro, and there is

a need for greater regional collaboration to scale-up the

area’s microhydro sector. Current issues facing the Nepal

Above: Nepalese speakers discuss the country’s subsidy

arrangement for microhydro project development,

including equipment transportation and support of end-

use promotion. The government is also providing

support for mapping, grid connected pilot projects,

technical support.

Right: Dr. Arun Kumar, Head, Alternate

Hydro Energy Centre, Indian Institute of

Technology Roorkee. Dr. Kumar, as a

guest speaker, provided presentations on

successful implementation modalities

used in India. Dr. Kumar, who has over

30 years’ experience in R&D in

hydropower and other renewables,

manages a multidisciplinary expert team

at the institute working for

environmental management of water

bodies like rivers and lakes for

renewable energy development.



Page 4

SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY (SARI/ENERGY)

The USAID/SARI/Energy program promotes energy security in South Asia through three activity areas: (1) cross border

energy trade, (2) energy market formation, and (3) regional clean energy development. Through these activities,

SARI/Energy facilitates more efficient regional energy resource utilization, works toward transparent and profitable energy

practices, mitigates the environmental impacts of energy production, and increases regional access to energy.

The Renewable Energy Partnership brings together energy sector professionals from Afghanistan, Bangladesh, Bhutan,

India, Maldives, Nepal, Pakistan and Sri Lanka to understand, identify and develop sustainable approaches to providing

low-cost efficient renewable energy to poor women and men in rural and urban areas throughout the region.

MUNDA

WARSAK

KALABAGH

TARBELA

DASU

KOHALA

MANGLA

HYDROPOWER DEVELOPMENT IN PAKISTAN

DIAMER-BASHA

DUBAIR KHWAR

KHAN KHWAR

ALLAI KHWAR

GOLEN GOL

NEW BONG

JINNAH

KEYAL

GHAZI BAROTHA

PHANDER

IN OPERATION

UNDER CONSTRUCTION

LAWI

PALAS VALLEY

SPAT GAH

BUNJI

CHASHMA

(LOCATION MAP)

GULPUR

RAJDHANI

DETAILED DESIGN & TENDER DOCUMENTS IN HAND

JABBAN

SAT PARA

NALTAR-I

KOTLI

AKHORI

KURRAM TANGI

HARPO

BASHO

184 MW, 0.61 MAF

96 MW

3600 MW, 6.1 MAF

83 MW, 0.76 MAF1000 MW,4.5 MAF

1450 MW

243 MW

600 MW, 6.0 MAF

79 MW

132 MW

100 MW

100 MW

3478 MW, 7.0 MAF740 MW, 0.90 MAF

20 MW

72 MW

70 MW106 MW

122 MW

130 MW

665 MW

121 MW

1100 MW

16 MW, 0.09 MAF

28 MW

4500 MW, 6.4 MAF

80 MW

496 MW

4320 MW

7100 MW18 MW

33 MW

HERIGHAL

53 MW

SHARMAI

115 MW

N

MATILTAN

84 MW

JAGRAN

30 MW

PATRIND

150 MW

SUKI KINARI

840 MW

MALAKAND-III

81 MW

DARGAI

20 MW

MADYAN

157 MW

GABRAL KALAM

105 MW

PROJECTS UNDER PPIB

KAROT

720 MW

AZAD PATTAN

650 MW

SEHRA

130 MW

ASRIT KEDAM

215 MW

KARRANG

458 MW

KAIGAH

548 MW

MAHL

600 MW

CHAKOTHI HATTIAN

139 MW

KALAM ASRIT

197 MW

PATTAN

2800 MW

THAHKOT

2800 MW

JUNE 2011

GENERAL MANAGER (HYDRO) PLANNING, WAPDA

YULBO

2800 MW

GOMAL ZAM

18 MW, 0.9 MAF

960 MW

TARBELA 4th Ext.

TANGUS

2200 MW

SKARDU

SHYOK/YUGO

520 MW

DESK STUDIES IN HAND

DUDHNIAL

960 MW

UNDER STUDY

READY FOR INPLEMENTATION

1600 MW

TRAPPI

32 MW

NEELUM-JHELUM

969 MW

DOYAN

490 MW

microhydro sector include a high dependency on donor fund; high cost and low affordability of the product; low

economic return due to negligible industrial use of electricity (low load factor); interconnection and grid

connection has not yet materialized; the microhydro sector is not fully commercialized yet; and there is great

difficulty in reaching out to more remote areas and marginalized people.

Pakistan

Pakistan has almost 500 microhydro

plants installed to date, providing almost

7,000 MW of electricity and serving over

59,000 households. Pakistan shares

many of the same challenges facing the

other countries – the difficulty of project

development in remote areas, lack of

domestic equipment manufacturers,

education/training deficits, insufficient

policies and tariff structures, and

inadequate funding. However,

microhydro could serve a much needed

demand for electricity access in remote,

mountainous communities.

Sri Lanka

Sri Lanka has a strong history of promoting renewables, with over 50% of

its total energy generated from renewables (which includes large hydro)

and a goal of 20% by 2020 from non-conventional renewable sources

(generation under 10 MW). To date, the country has 183 MW of installed

capacity in mini hydro projects, with over 2/3 of this under standardized

power purchase agreements. Ceylon Electricity Board credits its

framework of tax exemptions and power purchase agreements for

promoting private sector investment in renewables, including microhydro.

Of particular importance is the grid code for grid interconnection of

embedded generation. Sri Lanka has developed a rather unique model in

its allowance of private sector developers to build transmission and

distribution interconnection lines (under CEB supervision). This

arrangement has led to great success by taking advantage of the motivation

the private developer has to get the project completed and grid connected.



Page 5

Site Visits On the final day of the program, participants departed

Kathmandu in the early morning to drive to the Daunne Khola

microhydro demonstration scheme (MHDS) in Mangaltar. The

Daunne Khola MHDS serves about 125 households within a

small village of about 3,700 people, who otherwise rely solely

on fuel wood, kerosene, battery, and some bio-gas for their

electricity generation. In addition to a reliable power supply,

the microhydro scheme powers an agro processing mill and saw

mill that supports local industry.

Above: Mr. Haji Muhammad Farooq, a

Project Director of the Hydro Electric

Power Organization within Pakistan’s

Water & Power Development Authority

(WAPDA), receives a Buddhist greeting

from local villagers at the Mangaltar

village.

Surrounding photos: Daunne

Khola microhydro with agro

processing mill in Mangaltar

village.

Above: Delegates at the Karam Danda microhydro project in Bhimpokhari. This 17 kW project also supports agro

processing mills, as well as rural carpentry industry. With a project cost of approximately $48,000 USD, the plant

supports about 150 households.



Page 6

RESULTS

This three-day workshop conducted jointly with the Regional Centre of Excellence in Microhydro (RCEMH)

based within the Alternative Energy Promotion Centre in Kathmandu, Nepal, focused on best practices in the

construction and operation of micro hydro and small hydro facilities, as well as policies to support the sustainable

development of electricity generation from hydro resources. The workshop served to provide a forum for

exchanging ideas and best practices in micro hydro power and strengthen implementation of sustainable micro

hydro policies and technologies.

Specific outcomes included:

Showcasing of successful microhydro project models from India, Nepal, Pakistan, and Sri Lanka

Sri Lanka shared their model for successful project deployment, including forming task groups composed

of developers, community representatives, utility representatives, and other stakeholders to identify

barriers to small renewable grid integration and develop strategies jointly to overcome those barriers.

One important step in this process is jointly developing a grid code to further the speed and likelihood of

new small renewable projects being added to the grid. As part of this, CEB shared copies of their grid

code to workshop participants.

Mr. Kumar from IIT Roorkee offered certification and type testing models for microhydro equipment.

Nepal has been recently expanding its certification/testing programs, and can utilize Mr. Kumar’s

recommendations for following international standards for quality control as well as to potentially expand

Nepal’s export trade.

Delegates held extensive discussions on the importance of testing and certifications for turbines and other

equipment. The final day of the workshop included site visits to two microhydro projects and to a

certification/testing lab that is being built at Kathmandu University. Once completed, the center will be

conducting testing and certification of micro/mini turbines as well as development/design of mini-grids.

Below: Delegates visit Kathmandu University construction site for a new micro and minihydro turbine testing center and

laboratory. The center will be providing turbine testing, product development, and certification services to the Nepalese market,

and will serve as a meeting place for industry and researchers to collaborate. Currently, research is being conducted in sand

erosion in turbines, pump technologies, and maintenance, as well as design and development of mini-grids for efficient use of

distributed power systems.



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WORKSHOP PARTICIPANTS

Nepal participants:

Mr. Bijaya Kumar Gakchyadaar, Hon. Deputy Prime Minister, Government of Nepal

Honorable Minister Posta Bahadur Bogati, Ministry of Energy & Chairman, Alternative Energy Promotion

Centre

Mr. Moti Bahadur Kunwar, Joint Secretary, Ministry of Energy & Board Member, Alternative Energy

Promotion Centre

Mr. Govinda, Energy Energy Specialist & Board Member, Alternative Energy Promotion Centre

Mr. Yug Ratna Tamrakar, Director, SEC& Board Member, Alternative Energy Promotion Centre

Dr. Narayan Prasad Chaulagain, Executive Director & Board Member Secretary, Alternative Energy

Promotion Centre

Ms. Meena Khanal, Joint Secretary, Ministry of Environment

Mr. Naresh Sharma, Economist, Ministry of Environment

Mr. Mahendra Gurung, Director General, Department of Electricity Development

Mr. Bharat Poudel, Sr. Engineer, Alternative Energy Promotion Centre & Director, Regional Centre of

Excellence in Microhydro

Mr. Ram Prasad Dhital, Sr. Energy Officer, Alternative Energy Promotion Centre

Mr. Raju Laudari, Sr. Socio-Economist, Alternative Energy Promotion Centre

Mr. Nawaraj Dhakal, Sr. Training Officer, Alternative Energy Promotion Centre

Mr. Laxman Pd Khanal, Account Officer, Alternative Energy Promotion Centre

Mr. Prakash Aryal, Engineer, Alternative Energy Promotion Centre

Ms. Rojina Sharma, Engineer, Alternative Energy Promotion Centre

Mr. Raja Ram Gautam, Program Officer, Alternative Energy Promotion Centre

Ms. Sindhu Devkota, Engineer, Alternative Energy Promotion Centre

Ms. Sangita Karki, Engineer, Alternative Energy Promotion Centre

Ms. Laxmi Bhusal, Engineer, Alternative Energy Promotion Centre

Mr. Chandra Kishor Chaudhary, Account Officer, Alternative Energy Promotion Centre

Mr. Ramesh Danai, Administrative Assistant, Alternative Energy Promotion Centre

Krishna Chandra Poudel, Info. & Communication Officer, Alternative Energy Promotion Centre

Binod Acharya, Administrative Officer, Alternative Energy Promotion Centre

Sabita Aryal, Administrative Officer, Alternative Energy Promotion Centre

Sharmila Shrestha, Computer Officer, Alternative Energy Promotion Centre

Puja Mishra, IT Officer, Alternative Energy Promotion Centre

Saroj Karki, Technical Assistant, Alternative Energy Promotion Centre

Sushil Acharya, Credit Officer, Alternative Energy Promotion Centre

Narayan Prasdad Adhikari, Engineer, Alternative Energy Promotion Centre

Madan KC, Administrative Officer, Alternative Energy Promotion Centre

Mr. Lil Bhadur Moktan, Assistant, Alternative Energy Promotion Centre

Mr. Niels Julh Thomsen, Chief Advisor, Energy Sector Assistance Programme

Devendra Prasad Adhikari, Manager-MGREC, Energy Sector Assistance Programme

Rana B. Thapa, Programme, Officer-MGREC, Energy Sector Assistance Programme

Anand R. Maskey, Manager-REF, Energy Sector Assistance Programme

Karuna Sharma, Manager-ISRESC, Energy Sector Assistance Programme

Madusudan Adhikari, Manager-SEC, Energy Sector Assistance Programme

Manu Binod Aryal, ISRESC, Energy Sector Assistance Programme

Mr. Satish Gautam, National Programme Manager, RERL

Mr. Bhupendra Shakya, REA, RERL



Page 8

Krishna Prasad Devkota, TRC Member, Water and Energy Consultants' Association

Krishna Prasad Sapkota, TRC Member, Nepal Micro Hydropower Development Association

Dr. Ramesh Maskey, President, Water and Energy Consultant Association (WECAN)

Mr. Surendra Bhakta Mathema, Chairman, Nepal Micro Hydro Developer Association (NMHDA)

Mr. Kalidas Neupane, Member, Water and Energy Consultants' Association

Mr. Khimananda Kandel, Member, Water and Energy Consultants' Association

Mr. Gunaraj Dhakal, Member, Water and Energy Consultants' Association

Mr. shiba R. Laudari, Member, Water and Energy Consultants' Association

Mr. Sher Bahadur Buda, Member, Nepal Micro Hydropower Development Association

Mr. Prem Shakya, Member, Nepal Micro Hydropower Development Association

Mr. Dhan Bahadur Gurung, Member, Water and Energy Consultants' Association

Mr. Juddha Bahadur Gurung, Member Secretary, The Annapurna Conservation Area Project (ACAP)

Mr. Bharat Sapkota, Water Resource Officer, Rural Village Water Resources Management Project

Mr. Binod Prasad Shrestha, Director, REPSO/ Winrock International

Mr. Anil Manandhar, Country Director, World Wildlife Fund, Nepal

Dr. Tri Ratna Bajracharya, Director, Center for Energy Studies

Mr. Saroj Rai, Sr. RE Advisor, SNV Netherlands Development Organization - Nepal

Dr. Arabinda Dey, Executive Director, People Energy & Environment Development Association (PEEDA)

Mr. Muhan Maskey, Programme Manager PPHP, People Energy & Environment Development Association

Mr. Gaurav Dahal, Project Manager, People Energy & Environment Development Association (PEEDA)

Dr. Subarna Das Shrestha, President, Independent Power Producers Association Nepal (IPPAN)

Mr. Pradeep Poudel, Programme Officer, National Association of VDCs in Nepal (NAVIN)

Mr. Nabin Bhujel, President, Solar Electric Manufacturers Association Nepal (SEMAN)

Mr. Mahendra Chudal, Programme Manager, Centre for Rural Technology/Nepal

Mr. Dilli Ghimire, Chairperson, National Association of Community Electricity Users

Mr. Surya Psd. Adhikari, Project Manager, NHDPL

Mr. Balaram Shrestha, Director, Admin & Finance, Biogas Sector Partnership Nepal

Mr. Manoj Goyal, CEO, Clean Energy Development Bank Limited

Mr. Dinesh Dulal, Assistant Manager, Clean Energy Development Bank

Mr. Ashoke SJB Rana, Chief Executive Officer, Himalayan Bank Limited

Mr. Amrit Malla, Manager, Himalayan Bank Limited

Mr. Mrigendra Pradhan, Manager, Himalayan Bank Limited

Mr. Rajesh Bhattarai, Manager, Corporate Marketing Dept., Himalayan Bank

Mr. Kuldip Karki, Assistant Manager, Patan Branch, Himalayan Bank

Mr. Shiva Poudyal, Sr. Programme Officer, Embassy of Denmark

Mr. Gokul Gautam, Regional Co-ordinator, Resource Management and Rural Empowerment Centre

Mr. Mahendra Bhattarai, CMC, DEES Kavre

Foreign Guests:

Dr. Arun Kumar, Head, IIT Roorkee, India

Mr. Muhammad Farooq, Project Director, WAPDA, Pakistan

Mr. Noel Priyantha, Chief Engineer (Renewable Energy), Ceylon Electricity Board, Sri Lanka

For more information, contact Sarah Blanford at [email protected] or visit www.sari-energy.org.

mailto:[email protected]

http://www.sari-energy.org/

Documents

Bonneville Power Administration Exchanges Transmission ... · PDF filedesign, and financing ... distribution interconnection lines ... In addition to a reliable power supply, the microhydro