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WEBINAR | RESILIENCE RELIABILITY ENERGY PROJECTS NEPAL | Mini/Micro Hydropower in Nepal - Jiwan Kumar Mallik

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Smart Villages/LCEDN webinar series

For more information, please go to e4sv.org

www.e4sv.org/events/webinar-resilience-reliability-energy-nepal

The successful provision of energy services depends on the creation of resilient and reliable energy projects. Their resilience depends on the whole system’s ability to handle shocks and stresses, such as natural hazards and the effects of climate change. Meanwhile, the reliability of schemes depends on the on-going relationship between communities and technology. This can, in turn, contribute to broader community resilience. This webinar explores these interlinkages in the context of Nepal, and is being held jointly with HPNet - the Hydro Empowerment Network (www.hpnet.org)

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WEBINAR | RESILIENCE RELIABILITY ENERGY PROJECTS NEPAL | Mini/Micro Hydropower in Nepal - Jiwan Kumar Mallik

  1. 1. Mini/Micro Hydropower in Nepal (A Journey from Standalone System to Distributed Generation) By: Jiwan Kumar Mallik Renewable Energy for Rural Livelihood (RERL), Nepal Date: 28 February 2019
  2. 2. Declaration: This presentation is based on personal opinion and should not be considered as view of the organization.
  3. 3. Hydro Power in Nepal On-grid - 1070 MW Off-grid 25 MW, 2500 MHPs, 250,000 households
  4. 4. Per capita electricity consumption (kWh) Government of Nepal has set target of 700 units in next five year and 1500 units in next ten year
  5. 5. Targets ● Energy access targets ○ commitment to meeting SDG-7 to provide affordable, reliable, sustainable and modern energy for all by 2030, ■ 99% of households with access to electricity ■ Only 10% households using firewood for cooking ■ Generation of at least 10,000 MW electricity ■ Decreasing energy intensity of GDP by 0.8% per annum ● Renewable energy targets ● by 2030, ■ Increase share of renewable energy from lowly less than 1% to 10% of total energy supply ■ Increase access to electricity from alternative energy sources from 10% to 30% ● Graduation from LDC by 2022: RE on top priority
  6. 6. Micro/Mini Hydro Power (MHP) in Nepal ● MHPs has successfully demonstrated direct relationship of alternative energy technology with economic growth. ● From basic lighting to operating medium-sized enterprises such as soap factories, poultry, paper mills etc, MHP is making positive impact in economy and livelihood of rural community ● Alternative Energy Promotion Center (AEPC), an apex body for Government of Nepal for the promotion of RET in Nepal has to provide technical and financial support and incentives for aged MHPs. ● Maintenance and Operation of MHP including collection of Tariff in several MHPs is challenge and lead to poor functionality of the plants.
  7. 7. ● AEPC and donor agencies realized that it is high time to transit from subsidy based mechanism business as usual model to a market driven business model. But how do this, has been a challenge. ● AEPC envisions to test a model for forging partnership with private sector towards a more economically viable businesses oriented off-grid system development.
  8. 8. Post Disaster Need Assessment (PDNA) for RETs RETs Damage in number Damage (USD) Loss (USD) Total cost of Recovery (USD) MHP, SSHS/SHS and ISPS 262 MHP, 115,438 SSHS/SHS and 156 ISPS 43.644 M 0.406 M. Include IGA and MSME 44.05 M ICS and Biogas 146,767 ICS and 16,721 biogas 15.73 M 274.16 metric ton CO2 equiv 15.73 M +USD equiv. to 274.16 metric ton CO2 PV pumping 37 0.15 M - 0.15M Total cost of damage and loss for three sector is USD 59.93 million
  9. 9. Road Map of Horizon Power, an Australian utility Source: reneweconomy.com.au
  10. 10. Future Energy Systems
  11. 11. What’s next then? Based on AEPCs long experience in off-grid RE sector, AEPC has now learnt that the approaches of decentralized community driven RET model that has been in operation since 1996 needs improvement to make them still relevant in the current context where a great change in socio, demographic, economic and technological spheres has happened. Standalone MHP to Distributed Generation
  12. 12. Advocacy initiated in 2011 Decision to interconnect MHP of less than 100kW capacity in July 2014 First PPA concluded in February 2016 First Interconnection completed in January 2018 Policy Breakthrough: MHP Interconnection with Grid
  13. 13.  Capacity: 23 kW  Design discharge of 370 lps and gross head of 11.4 meters  Construction of MHP completed in June 2013  The national grid encroached its catchment during construction and all 240 HHs potential consumers switched to the national grid  Total Annual Energy Generation of 178,245 kW-hr Pilot Grid Interconnection Project: Salient Features
  14. 14. Grid Interconnected MHPs ● Four MHPs has been interconnected so far ○ 23 kW of Syaurebhumi MHP in Nuwakot ○ 40 kW of Leguwa MHP in Dhankutta ○ 90 kW of Chimal MHP in Taplejung ○ 100 kW of Midim MHP in Lamjung- PPA rate of NPR 5.73/unit for 4 months and NPR 3.28/unit for 8 months. ● PPA rate- USD 4.8 cents/kWhr for 8 months (wet season) and USD 8.4 cents/kWhr for 4 months (dry season) ● 24 are in pipeline
  15. 15. Technical Aspects of Interconnection
  16. 16. 17kW, 1, 13% 17kW, 2, 8% 17kW, 3, 3% 17kW, 4, 0% 17kW, 5, -2% 17kW, 10, 0% 25kW, 1, 25% 25kW, 2, 17% 25kW, 3, 12% 25kW, 4, 8% 25kW, 5, 5% 25kW, 10, 0% 50kW, 1, 73% 50kW, 2, 55% 50kW, 3, 43% 50kW, 4, 34% 50kW, 5, 27% 50kW, 10, 11% 75kW, 1, 119% 75kW, 2, 93% 75kW, 3, 74% 75kW, 4, 61% 75kW, 5, 51% 75kW, 10, 24% 100kW, 1, 166% 100kW, 2, 133% 100kW, 3, 108% 100kW, 4, 91% 100kW, 5, 77% 100kW, 10, 39% IRR%withoutsubsidy “Distance between MHP and Grid” in Km 17kW 25kW 50kW 75kW 100kW Only interconnection cost has been considered in CAPEX (cost of construction of MHP not included) Financial Aspect of Grid Interconnection of MHP
  17. 17. ● The voltage of feeder line increased, and thus enhanced the power quality of feeder line. [370V to 382V] ● Distributed generation helped to minimize the power loss of T&D by injecting power near the load center. ● Despite of unreliable rural feeder line of utility (high outage), the plant load factor increased significantly, and therefore increased the economic sustainability of the MHP. [PLF from around 25% to 58%] Impact of Grid Interconnection of MHP
  18. 18. • Simple connectivity – a solution of compact device • Sustainability – Involvement of the Private Sector-Currently monopoly in Nepal • Finding subsidy for Interconnection until the technology is readily available in the Nepalese market • Distribution Grid Code – Code for connectivity • PEA/SPPA policies • Moving analog to digital ELC with Droop characteristics Challenges of Grid Interconnection of MHPs
  19. 19. Thank You For more information contact @ jiwan.mallik@apec.gov.np or jiwanmallik@gmail.com

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