This document discusses rural electrification in Nepal, including its current status, prospects, and challenges. It notes that while 74% of Nepal's population has access to electricity, only 47% of the rural population has access, with many relying on fuelwood for cooking. Community-based rural electrification projects have expanded access through solar PV and microhydro projects. However, challenges remain around ensuring the sustainability of solutions and improved livelihoods, upscaling projects while maintaining quality, and overcoming barriers like high upfront costs and lack of access to financing. Addressing these challenges will require strengthened policies, financing mechanisms, capacity building, and promotion of energy-based rural enterprises.

1. Community based
Rural Electrification in Nepal
Status, Prospect and Challenges
Presented by
Madhusudhan Adhikari,
National Advisor
AEPC/NRREP

2. 2
ELECTICTY USE IN NEPAL
74
%
26
%
Total
94
%
6%
Urban
70
%
30
%
Rural 47%
41%
12%
53%
Grid
Off-Grid
National Census 2011
Population with electricity Population without electricity
World Development Indicator

3. 3
ENERGY FOR COOKING
64%
21%
10%
2%1%
Total
Fuelwood LPG
Animal dung Biogas
Kerosene
National Census
2011
26%
68%
2%
2%
2%
Urban
73%
10%
12%
3%1%
Rural

4. 4
POWER GRID MAP OF NEPAL

5. RIVERS IN NEPAL
Rivers No. : 6000
Hydro Potential : 84000 MW
Generation : 800 MW

6. OFF GRID RE TREND IN NEPAL
Solar PV
Microhydro

7. 0
500
1000
1500
2000
2500
3000
19621987198919911993199519971999200120032005200720092011
Source: RE Data Book 2012,
AEPC ESTABLISHED IN 1996
Total ~36000 kW
~28000 kW (AEPC)
7
MICRO HYDRO DEVELOPMENT TREND IN
NEPAL
2013
2014
2016
2015
2017
AEPC/NRREP Target
~25000 kW
NRREP
Year

8. MICRO/MINI HYDRO DISTRIDUTION

9. TARGET OF AEPC/NRREP (2012-2017)

10. IMPLEMENTATION MODEL
Public
Private
Partnership
Demand side
Public sector
Supply side
Private sector
Awareness & capacity
building
Technical & financial
assistance
Planning, coordination &
networking
Quality assurance,
monitoring & evaluation
Manufacturing & supply
Sales & installation
After sales services, repair
& maintenance
Int. Quality control &
monitoring
Subsidy
Users/ Beneficiary
Qualification/
Grading/
Evaluation
Standards/
Guidelines

11. CHALLENGES OF COMMUNITY BASED RE
 Definition of Electrification
◦ Replacing wick lamp, wood, kerosene lamp???
◦ Electricity for evening lighting x Wp PV ???
◦ Availability of electricity for or amount ???
 Sustainability and economic benefits of
investment
◦ Role of government
◦ Awareness of capacity of local
 Improvement in Livelihood
◦ Comparing themselves
◦ Compare to city or Capital
◦ Compare to global

12. CHALLENGES OF COMMUNITY BASED RE
is
NOT TO PROVIDE ACCESS TO
MODERN LIGHTS its
SUSTAINABILITY OF TECHNICAL
SOLUTIN AND INCREASED LIVING
STANDARD OF LOCAL PEOPLE.

13. CHALLENGES OF COMMUNITY BASED RE
 Up scaling and upgrading – scaling
implementation & upgrading quality
 Financial viability in business model
 Remoteness and difficult geography high
transportation cost.
 Sustainability – O & M of plant in local level
 Integrated planning and inter-connection of
off and on grid systems

14. BARRIERS IN UPSCALING
 High initial upfront costs of technology for end-
users
 Sub-optimal financing mechanisms –
grant/subsidy-long approval process
 Lack of access to credit - high transaction costs
 Productive consumption of energy produced –
end use promotion
 Funds to be arranged by community is very
high.
 Procurement by community - Bidding process,
low bargaining power, end with poor quality high

15. WAY FORWARD
 To shorten the project development period –subsidy approval
and financial closure.
 Promotion of credit facilities in rural area.
 Expansion of reach of financial institution.
 Cutting/sharing the overhead cost
 Subsidized interest rates on credit
 Mobilization of urban developers in rural areas – need of FIT
 Equitable investment by government by cross subsidy-Urban
Vs Rural
 Strong policy to promote rural energy based enterprises.
 More comprehensive capacity building for local on O & M
skills

16. THANKS FOR LISTENING
Madhusudhan Adhikari,
National Advisor , Community Electrification
AEPC/NRREP
Email: madhusudhan.adhikari@aepc.gov.np
Skype: madhusudhan-2015
LinkedIn: madhusudhan1967
Cell: +977-9851079427
www.aepc.gov.np