This slide describes about the status of community-based rural electrification in Nepal

1. Community Rural
Electrification in Nepal
Himal Chaulagain
075MSREE008
IOE, Pulchowk Campus

2. Content
• Introduction
• International Scenario
• National Scenario
• Electricity Tariff System
• Impact of Community Rural Electrification
• Challenges on Community Rural Electrification
• Conclusion

3. Introduction
• Electricity is the great invention of human being
• It brought out our lives from darkness to light

4. • First hydroelectric power project: Pharping Hydroelectric Plant (500 KW) in 1911
• Though 108 years long history of electricity development, still 22% of population didn’t
have access of electricity
• Lack of significant amount of resources, materials, proper planning, political instability
and due to geographical difficulties
• The electrification program was primarily promoted in easy village, cities and dense
settlement
• Nepal Government has been operating the community rural electrification program under
NEA, DCS
• Community rural electrification entities (CREEs) were established since 2003 and
spread across 53 districts of Nepal

5. International Scenario
• Idea of community based Rural Electrification (RE) was first developed in the USA in
the 1930s
• Majority of rural USA was electrified by the formation of local co-operatives during
1930s, 1940s and 1950s
• Different types of rural electrification delivery models have been tried in some
developing countries
 Dealer networks offering consumer credit schemes for solar home systems in Kenya

6.  Creation of concessionary areas for rural electrification, in north-west Argentina
 Assisted development of emerging retail markets for local energy
service companies in India, Sri Lanka and Laos
 USAID encourages the participation of local communities and consumers in its rural
electrification projects in South Asia
 In Asia, Bangladesh was the first country to establish rural electrification
 Rural Electrification Board (REB) took over the responsibility of rural electrification
from the Bangladesh Power Development Board in 1977

7. • REB works with rural communities to establish local electrical cooperatives known as
Palli Bidyut Samities (PBSs) that develop and distribute electricity
• The Government of India launched ‘Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY) – Programme in 2005 for creation of Rural Electricity Infrastructure &
Household Electrification
• By now, RE programs have been established and are successfully managed in several
Asian countries, such as Vietnam, the Philippines and Nepal

8. National Scenario
• In Nepal the government together with the national utility – Nepal Electricity Authority
(NEA) initiated a first pilot area for grid extension, where the community contributed
20% of the total investment cost for the extension.
• Recognized as a successful vehicle for rural electrification, the Community Rural
Electrification Programme (CREP) was officially launched in 2003/04 to increase the
grid-connected electrification rate in areas without access to electricity
• South Lalitpur Electricity Campaign Committee was formed in 1996 and was the first
example of CBO successfully applying for grid extension and taking over local
distribution from NEA

9. • CREEs purchase electricity in bulk from NEA as per the ETFC tariff and provide services
basically to the rural lighting consumers along with commitment of timely billings,
services, repair and maintenance of the leased electricity distribution infrastructures
owned by NEA
• Nowadays NEA undertakes 90% finances of the investment and 10% of costs by CREEs
• To apply for the subsidy the community has to form a legal entity, which is registered on
a district level
• For the application, this Community Rural Electrification Entity (CREE) submits the
official request. The Community Rural Electrification Department (CRED), a department
within NEA, which is authorized to manage the programme, then initiates a survey and
cost estimate for the grid-extension

10. • To effort on CBO-led electrification, members from around 17 rural electric cooperatives
and user groups independently established the National Association of Community
Electricity Users in Nepal (NACEUN) in 2006
• Till date there were 288 CREEs spread over 53 districts

11. Electricity Tariff Structure
Service and energy charge (Single
Phase)
kWh
(Monthly)
Units
5 Amperes 15 Amperes 30 Amperes
Service
Charge
Energy
Charge
Service
Charge
Energy
Charge
Service
Charge
Energy
Charge
0-20 30 3 50 4 75 5
21-30 50 7 75 7 100 7
31-50 75 8.50 100 8.50 125 8.50
51-150 100 10 125 10 150 10
151-250 125 11 150 11 175 11
250-400 150 12 175 12 200 12
Above 400 175 13 200 13 225 13
Service and energy charge(Three
phase)
kWh
Units
Up to 10 KVA Above 10 KVA
Service
Charge
Energy
Charge
Service
Charge
Energy
Charge
Up to 400 1100 12.50 1800 12.50
Above 400 13.50 13.50
• Service and Energy charge (Single Phase)

12. Voltage Level Energy Charge (Rs./Unit)
a) Medium Voltage (11KV/33KV)
Up to (N*× 30) Units 4.25
Above (N*× 30) Units 6.00
a) Lower Voltage Level (230/400V)
Up to (N*× 30) Units 4.25
Above (N*× 30) Units 6.25
Tariff imposed by NEA to the
CREEs
N* = Total number of consumers
of a community group
N* = Total number of consumers of a community group

13. Impact of Community Rural Electrification
• Socio-economic impact

14. • Impact on Socio-
culture/Values/Gender
• Impact on Environment

15.  Impact on Health
 Impact on Education

16. Challenges in Community Rural
Electrification
• Geographical difficulties
• Lack of ability to collect the 10% share
• Delay in constructing infrastructure
• Dispute in maintaining infrastructure
• Lack of skilled manpower for the regular maintenance
• Difficulties in promoting PEU applications for Sustainability of CREEs

17. Conclusion
• Participation of local people shall be increased for the electrification in rural areas of
Nepal.
• Relevant policies, rules and regulations shall be made for the electrification of rural areas.
• Local government shall decentralized rural electrification more effectively for increasing
the participation of local people in decision-making process.
• In order to sustain the CREEs, ETFC has to allow the rural cooperative to charge tariffs
only up to the level of NEA’s retail tariffs
• Furthermore, the CREEs should organize themselves to generate funds by doing small
scale ventures, income generating business by promoting the benefits of using electrical
energy

18. References
• Bond, M., Fuller, R.J., Aye, L., 2007. A policy proposal for the introduction of solar
home systems in East Timor. Energy Policy
• Ghimire, D., Community Participation in Rural Electrification (2009)
• Gyawali, D., PhD fieldwork research on 28th May in Kathmandu, Nepal (2009)
• Nepal Electricity Authority, the NEA homepage, Community Rural
• United Nations Development Programme (UNDP), 2009. Energy in National
Decentralization Policies. UNDP, New York.
• Yadoo, A., Cruickshank, H., The value of cooperatives in rural electrification.
Energy Policy (2010)

19. THANK
YOU