1. Prepared by
Md. Sayeed Ur Rahim Mahadi
Exchanged to People Energy & Environment Development Association (PEEDA)-Nepal
Date: 19th May, 2015
Welcome to Experience Sharing Workshop
On
Promotion of appropriate green technologies
for rural prosperity

2. • Getting exposure on various Renewable Energy technologies and
services models in Nepal
• Study best practiced approaches and technologies in Nepal
• Exposure on PEEDA and its partners’projects
• Review and develop the business/promotion models of the renewable
energy technologies to address climate change and poverty reduction
suitable for Bangladesh context
• Packaging of renewable energy technologiesfor piloting and scale-up
• Social cultural dimension of energy services models
Learning Objectives

3. Learning Methodology
The main process was on the Job Training for 11.5 Months with
People, Energy & Environment Development Association (PEEDA):
• Desk Review/Online Material Review;
• Group Works & Discussion/meeting with Colleagues;
• Field Visit & Discussion with Villagers/Community people;
• Meeting with Professionals
• Attending workshops, training sessions and conferences

4. About Nepal
Capital Kathmandu
Region South Asia
Total Area (km²) 147,180
Population 27,797,457 (2013)
Rural Population (% of total
population)
82 (2013)
GDP Per Capita (current US$) 694.10 (2013)
Access to Electricity (% of population) 76.30 (2014)
Energy Imports Net (% of energy use) 13.02 (2011)
Fossil Fuel Energy Consumption (% of
total)
12.54 (2011)
Source: World Bank

5. Some Facts about Nepal
Total Hydro Potential 83,000MW
Economically feasible hydropower potential 40,000 MW
Rivers more than 6000
Total electricity generation capacity around 700MW
Load-shedding 10-12 hours per day
Mini-hydro plants 40 (generating 14.95 MW)
Micro hydro plants 1000 (generating 18.86 MW)
Pico/peltric Plants 1,480 (generating 3.18 MW)
Improved Water Mills 8000 (Approx.)
households biogas plants (fixed dome GGC 2047) 300,000 households (Approx.)
Institutional biogas plants 200 (Approx.)
community biogas plants 60 (Approx.)
Pre-qualified Biogas companies 113 (Approx.)
Improved cooking stoves (ICSs) developed in Nepal efficiency of 18% to 28%
ICS installed 0.7 million
Pre-qualified ICS companies 32
Listed Manufacturers of solar heaters 30 (Approx.)
Pre-qualified companies for solar system 43

6. About my Host Organization
 People, Energy & Environment Development Association (PEEDA)
was established in 1997 jointly by various hydropower related
organizations for the enhancement of the renewable energy sector
in Nepal.
 PEEDA aims to mobilize both local and external resources to harness
Nepal’s indigenous resources, thereby promoting activities for
economic development and poverty alleviation.
 Partners:
 United Mission to Nepal
 Bread for the World (BfdW), Germany
 Tarayana Foundation, Bhutan
 Technology and Action for Rural Advancement (TARA), India
 Practical Actions, Bangladesh
 Alternative Energy Promotion Center (AEPC), Lalitpur
 Oshin Power Services (OPS), Butwal
 Kathmandu Alternative Power Group (KAPEG), Kathmandu

7. Hydropower Sector in Nepal
Technical
Social
Financial
Regulatory
Political
Etc. Etc.

8. Pro-Poor Hydropower:
 PPHP is a concept by which the poor of Nepal are
facilitated into the profitable ownership of their
water resources.
 Development of commercially profitable
hydropower projects with the local poor gaining
significant ownership of the projects.
 Significant means :- sizeable earning when
compared to other earning streams

9. How Poor Invest in Hydropower?
 Too high initial investment for poor people
 In all projects there is a local labour component
(10-20% of total cost)
 The poor can invest their labour
 The poor will be offered a levering grant to
increase their share

10. Pro-Poor Hydropower (PPHP)
approach

11. Pro-Poor Hydropower (PPHP) approach

12. PPHP Pure Approach

13. PPHP Dilute Approach
5P (Pro-Poor Public-Private Partnerships)

14. Pro-Poor Hydropower Concept
Loan facility to purchase 1-2 shares
or debentures
Salary received by the local poor
Salary sacrifice of the value of 1 share
Matching grant of 1 share
Normal
daily
wage

15. Pro-Poor Hydropower in Relation
to Poverty
Economic empowermentOpportunity
Security
Poor given choice to
invest in hydropower
company
Earn regular stream of income
from hydropower company
dividends
Make other
investments
Combat economic &
social vulnerabilities
Earn further income
PPHP
starts
here!!!

16. The Result-based financing
mechanism (RBF)
 Objective: Establih a long-term sustainable market for energy
services and products targeting poor and off-grid households
 Strengthen involvement of private sector
 Get away from subsidies
 Private companies take up initiative for developing hoodstove
market and they get money paid for their results
 “RBFmoney” is an award for their upfront investment and risk
taking

17. RBF Incentive Flow-Model
h
Option: Mix
Practical Action
NGO
Independent consultant
Auditing firm
Cooperatives
Association 100+ Hood-stove
entrepreneur
Financial Institution
Households
Provide
Loans
Working
Capital Loan
Hood-stove
Companies
RBF Fund
Village
cooperatives
Foreach
loan issued
Foreach hood-
stove installed
Rs
RBF
Rs
RBF

18. Use of RBF Incentives
Note: The incentives will be reduced gradually every year so there will be
no significant change in price or profit after project also.
RBF
Incentives
Entrepreneurs
Sales incentives
Discount to users
Marketing cost
Cooperatives
Management,
documentation reporting
and marketing cost
Creation of credit lines
Soft loan to borrowers

19. Renewable Energy Subsidy
Policy in Nepal
 Rural Energy Policy (2006)(to promote clean, reliable
and appropriate energy sources as a means to reduce
rural poverty and protect the environment)
 Subsidy Policy for Renewable Energy (February 2013)
 Renewable Energy Subsidy Delivery Mechanism (June
2013)

20. Subsidy Type and Level
 While designing the subsidy rate, the basis of around 40% of the
total cost will be covered by subsidy, around 40% by the soft loan
from the financial institutions, and rest minimum of 20% by the
community or households in kind and cash.
 AEPC has published a list indicating the category of each VDCs.
Category Type of VDCs
Category “A” Village
Development Committees,
very remote VDCs
Category “B” Village Development
Committees,
remote VDCs
Category “C” Village
Development Committees,
accessible VDCs

21. Subsidies for Renewable Energy
Technologies
 Solar System
 Solar Water System
 Solar Dryer
 Solar Cooker
 Biogas Plant
 Improved Cooking Stove
 Gasifier System
 Improved Water Mill
 Productive Energy Use
 Wind Energy
 Small and Micro Hydropower
 Rehabilitation of Damaged Projects (only for hydro)
 Provides subsidy up to 50% of the total cost in various renewable energy
projects
 Extra amount per household (single woman, backward, disaster victim,
conflict affected, poor and endangered ethnic group as identified by the
Government of Nepal.

22. Subsidy delivery mechanism for
Solar Home System
Renewable Energy
Test Station
Nepal Photovoltaic
Quality Standard
punish and penalize
By AEPC (centre)
Council of Technical
Education and
Vocational Training
solar electric technician level I
and II
private companies and
their networks
import, manufacturing,
distribution and providing the
after sale service

23. • Participated in Participatory Market System Development Training
from 20 to 22th August which is organized by Alternative Energy
Promotion Centre (AEPC) and Practical Action Nepal.
 Applying PMSD approach in Energizing Sustainable Rural Livelihood
(ESRL) project to ensure proper use of electricity from the micro hydro
plant.
Participatory Market System Development (PMSD)

24. Nepal:
Pico Hydro = < 10 kW capacity
Micro Hydro = 10 kW to 100 kW
Mini Hydro = 100 kW to 1000 kW
Large Hydro = > 1000 kW or 1 MW
[Ref: AEPC]
Bangladesh:
Pico Hydro = < 5 kW capacity
Micro Hydro = 5kw to 300 kW
Mini Hydro = 300kW to 3MW
Small Hydro = 3MW to 10MW
Large Hydro = > 10MW
[Ref : LGED]
Classification of Hydro:

25. Pico Hydro Promotion Project
Head vs. flow rate diagram for turbine selection

26. Pico Hydro Technologies of PEEDA

27. Low-Head Pico Hydro:
Headway Canal
Conical Draft Tube
Powerhouse
Generator
Volute Casing
Inlet from Headway
Canal
Propeller (inside case)

28. Propeller type technology
• 74% mechanical efficiency , allowing for an overall efficiency of 54%.
• Generator type- Induction type, synchronous type

29. PT1 (Propeller Turbine) demonstration pico hydro site
 1KW PT1 (Propeller Turbine) demonstration pico hydro site implemented by
PEEDA in collaboration with Oshin Power Service Private Limited, Butwal.
 Trial sites have shown that this technology can provide lighting (using efficient
LED bulbs) for up to 40 households at an affordable price.
 Technology cost : 2,200 USD
 Civil construction cost: 1,000 USD

30. Nuwakot 1 KW pico project
Pre-feasibility study consists of a number of stages:
1. Technological appraisal
2. Flow and head measurement
3. Environmental Impact assessment
4. Geological survey
5. Socio-economic survey

31. Oshin Power Service Pvt. Ltd.
 It is very easy to manufacture hydro technologies in a simple
workshop.

32. Implementation phases
 Community mobilization
 Site Surveying
 Pico Hydro Designs
 Powerhouse Construction
 Distribution System
 Domestic Wiring
 Testing, Commissioning and Operation

33. Nuwakot 1 KW pico project

34.  Weather of Nepal is unpredictable
 Probability of Landslide
 Projects are in very remote areas
 Difficult to communicate with the community people
(Language barrier, No Mobile Network)
 Political problems
 Technology transfer
Challenges

35. Opportunities for Bangladesh
 Though Bangladesh has less potential in hydro sector, but still
Bangladesh can implement hydro technologies in feasible sites
to generate electricity.
 Opportunities for IWM (Improved water mill)
 Pro-poor approach can be implemented in renewable energy
projects which will generate income for poor people.
 We can form an institution like Council of Technical Education
and Vocational Training which will certify the solar technicians
for ensuring the proper installation of our solar systems.
 A proper subsidy system can be introduced for off-grid area
people to ensure their energy access.
 Performance based project can be introduced to develop the
market system.

36. Thank You All
Email:
sayeed.mahadi@practicalaction.org.bd