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.
Declaration: This presentation is based on personal opinion and should not be considered as
view of the organization.

3.
Hydro Power in Nepal
On-grid - 1070 MW
Off-grid
25 MW,
2500 MHPs,
250,000 households

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.
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.
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.
● 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.
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.
Road Map of Horizon Power, an Australian
utility
Source: reneweconomy.com.au

10.
Future
Energy Systems

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.
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.
 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.
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.
Technical Aspects
of Interconnection

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.
● 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.
• 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.
Thank You
For more information contact @ jiwan.mallik@apec.gov.np or jiwanmallik@gmail.com