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Micro-Hydro Development in Nepal: An Overview and Achievements


Table of Contents

[top] [end]History of Micro-Hydro Development

The history of waterpower in Nepal begins with the traditional water mills or ghatta used for grinding flour. Nepal has over 6,000 rivers of length over 2 km. Therefore the total theoretical potential of micro-hydropower is very large. However, there are varieties of technologies already available or being developed, which come under the mini and micro hydropower category. The improved ghatta i.e. Multi-Purpose Power Unit (MPPU) also known as improved water mills (IWM) is an innovation on the traditional ghatta. This uses a metal runner to increase efficiency higher than that of traditional ghatta.

Turbine for milling purpose, accounts for more than 50 percent of the existing micro-hydro schemes in Nepal at present. These schemes are used to run a range of agro-processing machines such as rice huller, grinder, oil expeller and other end use applications.

In some cases, a small generator is added to an existing turbine mill to provide electric lighting in the evening to the communities close to the powerhouse.

A peltric unit consists of an induction generator with the runner of a pelton turbine hanging from its shaft. It is designed to operate under a head of 20-50 meters and flow up to 25 liters per second and is suitable for providing electric lighting to a few households.

A turbine installation that is established primarily to produce electricity and to serve agro-processing activities only as a secondary function is called a stand-alone micro-hydro power plant.

[top] [end]Micro-Hydro Planning Process

ESAP and REDP under AEPC is implementing micro-hydro programme in Nepal. ESAP has 8 Regional Energy Centres and REDP has implemented the programme in 40 districts. Hence, the planning process for the installation of renewable energy technology is very important. Considerable planning is to be done before conducting survey and installation. Briefly, the planning process would include the following:

Why is micro-hydro? Is it for mechanical power or for rural electrification? If it is for mechanical power, is it for agro-processing, saw mill operation, furniture making, soap making or establishment of other local industries? If it is for electrification, battery charging, milk chilling, cardamom drying, ropeways operation, making bakeries, running photo studio, poultry farming or ice cream production?

Similarly a number of following questions need to be answered properly before installing a micro-hydro plant.
  • Do you need mechanical or electrical power?
  • How much power is demanded?
  • Have you done any economical analysis of the project?
  • How much it costs and who is financing?
  • Have you thought of any savings and credit programme? How do you set tariff and pay loan?
  • Who is providing technical support?
  • How is your capacity built?
  • Who makes decision to install the micro-hydro plant? How do you implement your decision?
  • Is it after discussion and meeting in the group?
  • What are the roles of men and women in the micro-hydro project?
  • How do you use leisure time if your workload is reduced after having micro-hydro?
  • What changes do you expect in the gender role after having micro-hydro?
  • Do you think all your expectations will be fulfilled after having micro-hydro?

Thus, micro-hydro project should be clearly defined. Project management brings together and optimizes the resources necessary to complete the project successfully. In this way micro-hydro project synopsis covers: the reasons for the project, the required output, any known constraints and a suitable contractor for the survey as well as installation of the scheme. The success of such project depends on team organization.

Planning and operational standards are always to be found at the heart of the project. While planning we should consider the time, budget and quality dimensions. While implementing the plan, it concentrates on work progress, feedback, negotiation and resolving differences. Once the project is completed, it has to be handed over. During this stage, check the final quality, test the finished product, and inspect externally and ultimately forward signing of procedure.

While planning for micro-hydro project, the possible changes in gender roles have to be assessed. Similarly, the changes in access and control have to be analyzed. It is advised that men and women both should have decision-making role from the planning stage of the micro-hydro scheme. What are the positive impacts of micro-hydro? How do you use power? Is it for lighting alone or with other end use applications such as agro-processing, battery charging, milk chilling, cash crop drying, food or fruit processing, running rope ways, saw mills or others.

Is there any group formation? If so, does the group meet regularly and make fruitful decision? Did you discuss on savings and credit programme? Have you thought of capacity building of your resources? These questions have to be answered while planning for micro-hydro installation.

Thus, the process of installing micro-hydro begins with project conceived by the owner or community people living in the same village and having common interest of installing micro-hydro. Once the community is organized, mass sensitization is carried out within the communities comprising male and female of all ethnic groups. The community then requests one of the pre-qualified firms for detail cost analysis, size and specification of all micro-hydro components. After detail feasibility study, the community needs to plan for installation management, if the project is technically as well as economically feasible. Bank loans may be requested if the owner is unable to manage the cost. The power is then distributed as per their needs and tariff is collected as per the decisions.

[top] [end]Subsidy Policy and Delivery Mechanism

The Government of Nepal approved subsidy for micro-hydro (Sept. 2006) replacing the earlier policy of 2000.
  • The subsidy amount of Rs 8000 per household will be provided for new MHP projects up to 5 kW capacities. However, the subsidy will not be more than Rs 65000 per installed kW.
  • A subsidy of Rs 10,000 per household will be provided for new MHP projects ranging from 5 kW to 500 kW but not exceeding to Rs 85000 per installed kW.
  • A subsidy amount of Rs 4000 per household will be provided for add on MHP projects but not exceeding to Rs 40,000 per installed kW.
  • For rehabilitation of MHP more than 5 kW capacities, a subsidy of 10,000 will be provided per additional households but not exceeding to Rs 85,000 per incremental kW due to rehabilitation.
  • Transportation subsidy of Rs 1200 and Rs 3000 per households will be provided for the projects that are located at a distance of more than 50 km and 25 km walking distance from nearest road head respectively.

[top] [end]MH Project Cycle

During the planning stage these questions need to be clarified. An example of basic planning process for a community micro-hydro project is briefly discussed below.

[top] [end]Basic Planning Process

  1. Basic dream: At the beginning, if it is a community plant, the villagers dream about RETs and start their internal discussions. They think of entrepreneurship and try to motivate each other. If it is individual, they should discuss among their family members.
  2. Project planning: Once they agree in principle to install RETs, the need assessment process is started which is followed by feasibility study. Initially pre-feasibility study is carried out. If it indicates that the project is feasible, detailed study is carried out by a recognized and pre-qualified organization.
  3. Survey and layout design: The qualified company chosen by the owner is selected for the detail survey. This company surveys the site measuring head, discharge and power calculations. The detail report including necessary drawings, calculations, socio-economic conditions, end- use applications, environmental impacts is submitted to AEPC/ESAP. Interim Rural Energy Fund (IREF) of ESAP reviews the report and approves or disapproves the project for providing subsidy for micro-hydro, wind and solar energy technologies. In case of biogas, the responsibility is that of Biogas Support programme. In the mean time the owner explores/manages for additional funds either in the form of cash or loan from banks.
  4. Installation: Once the fund is managed, the recognized company having relatively low rate is assigned for installation of the plant. This company supplies all necessary equipment and materials and the owner transports them to the site.
  5. Operation and management: In order to operate the plant smoothly, a manager is hired for account keeping, tariff collection and proper management of micro-hydro and wind projects. S/he is supposed to provide quality services to the customers. Similarly one or two operators are trained and are made responsible for operation of the plant.
  6. Repairs and maintenance: The operator or user is responsible for the smooth operation of the plant. S/he should be familiar with all the components of renewable energy technologies that s/he is having.
  7. Monitoring and evaluation: During monitoring of the scheme, the power output verification is done by micro-hydro power verification inspector recognized by AEPC/ESAP. The financial analysis, social justice, sustainability of the project and future extension needs to be considered while conducting monitoring and evaluation of operation of the plant.

[top] [end]Present Status of Micro-hydro

There are several types of turbines used in Nepal, mostly on the basis of their head and flow.

[top] [end]Peltric set

Peltric set normally ranges from a few hundred watts to 5 kW. Peltric set is the most useful water powered turbine and generator combined, highly suitable for electrification especially in the rural areas where there is less flow but adequate head. Although peltric set is comparatively a cheaper form of power generation it is still expensive for many potential users. The penstock pipe can be of high-density polythene, which is light in weight, cheaper in cost and readily available in the markets.

[top] [end]Pico-hydro

Pico plants are smaller units (a few hundred watts to a few kW) suitable for a smaller number of households. ICIMOD has recently completed the installation of Pico hydro at Godavari in Lalitpur district as a demonstration scheme. The plant has been functioning properly. Similarly ITDG has recently completed the installation of a new type 4 kW Pico hydro unit at Kushadevi in Kabhre district as demonstration project in collaboration with Nottingham Trent University, UK. The unit is called Pico power pack used for generating AC power and grinding flour.

[top] [end]Improved Water Mill (IWM) or Multi Purpose Power Unit (MPPU)

A typical ghatta utilizes a head of 2-4 m and develops 0.5 - 0.75 kW traditionally used to grind grains. To use ghatta for generating electricity and running other small machines for agro-processing, the multipurpose power unit was developed.

MPPU is an improved version of traditional mills. A cube with metallic frame is made for housing a bucket type turbine, which is fitted below the original milling device. This enables to run with waterpower and through the pulley mechanical power is taken off. The installation of MPPU is as that of traditional water ghatta. It is 4-8 times efficient in grinding to that of the traditional mills. The multiple applications are that any small machine 3-7 kW can be coupled to MPPU. Similarly, a small alternator coupled to MPPU can supply electricity to near by consumers. CRT/N with support from AEPV and SNV Nepal is implementing the programme.

Micro-hydro ranges from 5 - 100 kW. The components of a typical micro-hydro scheme comprise intake, desilting basin, a canal, a forebay tank, penstock pipe, powerhouse, and transmission and distribution lines. Micro hydro is more commonly used in Nepal mainly for milling and rural electrification. However, the trend of rural electrification and other end - use applications are being widely promoted in these days.

Normally the following turbines are used in Nepal.
  • Cross-flow - These are normally used for heads from 3 - 50 m and water flow rate from 30 - 1500 lit/s, which produce an output from 5 - 100 kW. These are characterized by simplicity, resulting in low investment cost, and easy installation and maintenance.
  • Pelton - These are used for heads above 50 m and in the case of less water flow. It is complicated to fabricate but more efficient in uses.

[top] [end]Micro-hydro Pre-feasibility Studies

A number of possible micro-hydro plants in the districts are surveyed as field verification of GIS based desk identified mini-grid schemes. The cost of the study is being born by ESAP.

[top] [end]Detail Survey Studies

Once the projects are feasible for detail study, a team will be sent for the survey and design of micro-hydro project and a report will be prepared. The cost of this survey is being provided by ESAP and REDP in their respective areas.

[top] [end]Installation

A total of 2496 micro-hydro including peltric sets (until July 2006) have been installed in the country generating a total of 17.03 MW power. The total power generation for milling and electrification is given in table 2.

Similarly the following graph shows the number of micro-hydro plants installed in Nepal in different fiscal years.

Table 2: MH installation in various FY
Year of Installation Pico (Up to 3 kW) Micro hydro (Above 3 kW) Total
No kW No kW No kW
2006 34 72.7 35 744.4 69 817.1
2005 48 100.7 38 661.6 86 762.3
2004 66 140.9 35 420.8 53 316.4
2003 80 184.3 53 749.5 133 933.8
2002 61 140.5 34 364.5 95 505
2001 36 81.2 50 891 86 972.2
2000 112 213.5 40 719.5 152 932.9
1999 123 226.4 25 386.5 148 612.9
1998 97 185 28 430.5 125 615.5
1997 84 143.4 16 262.7 100 406.1
1996 130 203.3 14 174.2 144 377.5
1995 115 170.9 13 145.3 128 316.2
1994 79 100.3 5 125.7 84 226
1993 - - 3 26.5 3 26.5
1992 13 12 6 106.5 19 118.5
1991 46 43 7 125.1 53 168.1
1990 - - 11 97.8 11 97.8
1989 - - 17 183 17 183
1988 - - 11 109.8 11 109.8
1987 - - 17 190.5 17 190.5
1986 - - 20 203.8 20 203.8
1962-1985 - - 68 593.5 68 593.5
Year not known - - 7 92.3 7 92.3
Total 1124 2019 553 7805 1677 9824

Source: Renewable Energy technology in Nepal - GD

Table 3: Growth Trend of Turbine Mills: The growth trend of turbine mill and micro-hydro installation is shown in the following Fig 2 and table 3.
Fig. 2: Growth trend of turbine - Source: Renewable Energy Technology in Nepal: GD
Fig. 2: Growth trend of turbine - Source: Renewable Energy Technology in Nepal: GD


Table 3: Year wise MH Installation both mills and electrification
Year of Installation No. of installation Cumulative
1962 1 1
1963 1 2
1965 1 3
1970 1 4
1972 1 5
1975 1 6
1976 1 7
1977 3 10
1978 13 23
1979 16 39
1980 16 55
1981 37 92
1982 69 161
1983 83 244
1984 81 325
1985 104 429
1986 91 520
1987 92 612
1988 62 674
1989 54 728
1990 43 771
1991 95 866
1992 44 910
1993 16 926
1994 105 1031
1995 140 1171
1996 153 1324
1997 105 1429
1998 127 1556
1999 153 1709
2000 153 1862
2001 48 1910
2002 95 2005
2003 140 2145
2004 56 2201
2005 92 2293
2006 71 2364
Installation date unknown 46 2410

Source: Renewable Energy Technology in Nepal : GD

Fig 4: MH installed in various FY
Fig 4: MH installed in various FY


In this fiscal year 2064/65, the following micro-hydro activities were carried out in the country:

MH activities Number kW
MH Installation 98 2170.1
Pico/peltric installation 70 224.2
Turbine mills installation 5 49.5
IWM installation 452 537.0
MH under construction 93 1714.5
Detailed feasibility study 240 6160.1
Pre-feasibility study 687
Training 32

[top] [end]Capacity Building

AEPC is conducting several training to the concerned to enhance their capability. These include:
  • Micro-hydro management training for micro-hydro managers
  • Training on end use diversification for IWM owners
  • Micro-hydro operators training for micro-hydro operators
  • Advance operator's training
  • District level orientation cum interaction programme
  • Orientation training to GOs and NGOs
  • Trainers training for service centre technicians.

Likewise several studies such as micro-hydro users survey, cost analysis of micro-hydro, development of micro-hydro manuals and catalogue etc are being carried out.

[top] [end]Organizations Involved

[top] [end]Alternative Energy Promotion Centre

AEPC under the Ministry of Environment, Science and Technology, is the nodal agency for the promotion and dissemination of alternative energy in the country. All the major off-grid electrification programmes are executed by AEPC. It has been executing two major programmes: Energy Sector Assistance Programme (ESAP) and Rural Energy Development Programme (REDP). Mini-Grid Support programme is one of the major component of AEPC/ESAP.

REDP is a joint programme of the Government of Nepal, UNDP and World Bank and has covered 40 districts under District Development Committee / Rural Energy and Environment Section.AEPC also administers the Rural Energy Fund (REF) for providing subsidy support to the micro-hydro schemes.

Alternative Energy Promotion Centre (AEPC) is an organization devoted to the development and promotion of renewable and alternative energy technologies in the country. The overall objective of AEPC is to popularize and promote the use of renewable energy technology to raise living standards of the rural people, to protect the environment and to develop commercially viable small-scale industries in the rural areas of the country. Micro-hydro power development is one of the major components of AEPC, which is supporting rural community and private entrepreneurs to improve the living conditions of rural people by providing electricity through micro-hydro power. Similarly, Energy Sector Assistance Program (ESAP) and Rural Energy Development Program (REDP) are also actively working in the promotion and dissemination of micro hydro technology in the country in association with AEPC. In order to support micro hydro program, ESAP and REDP under AEPC is responsible for the support of new and rehabilitation projects of micro hydro, peltric sets and improved water mills (IWM).

[top] [end]Survey, Installation and Manufacturing Companies

Micro-hydro companies eligible for carrying out manufacturing and installation of up to 100 kW capacities. Pre-qualification is subjected to change every year depending on the performance of the companies. The following numbers of companies are pre-qualified for installation and survey/design of micro-hydro for the year 2008:
Installation Up to 1MW Up to 100 kw Up to 5 kw
Companies 6 23 8
Survey/design 500 kw to 1MW Up to 100 kw Up to 40 kw
Consulting firms 8 16 21

[top] [end]Micro-hydropower Development Association

Nepal Micro Hydropower Development Association (NMHDA) is an umbrella organization of manufacturing, installation companies and consulting firms. Likewise, Nepal Micro-hydro Entrepreneurs' Federation (NMEF) represents the micro-hydro developers. This is an umbrella organization of 16 district level micro-hydro associations.

[top] [end]Other organizations

[top] [end]Donor/International Agencies

The major donor international agencies providing support for the development of micro-hydro sector in Nepal are Royal Danish Embassy, Royal Norwegian Embassy, United Nations Development Programme, The World Bank and GTZ.

[top] [end]Non-Governmental Organisations

A total of more than 44 NGOs are involved in micro-hydro sector in various capacities. MGSP of AEPC/ESAP supported Regional Renewable Energy Services Centres are operated by local NGOs in eight different geographical areas covering 40 districts.

[top] [end]International Non-governmental Organisations

There are several INGOs involved in the promotion of micro-hydro in Nepal. These include but not limited to: The Kaduri Agricultural Aid Association (KAAA), Practical Action Nepal, World Wide Fund for Nature Conservation have supported in the installation of micro-hydro while SNV Nepal have supported to launch the programme on improved water mills.

[top] [end]Financing Institutions

The Agricultural Development Bank (ADB/N) and Rastriya Banijya Bank (RBB) are the two major financing institutions supporting micro-hydro sector. Recently, a new financing institution called Clean Energy Development Bank has been established to serve the energy sector in Nepal.

[top] [end]Academic/Training Institutions

Some academic institutions associated with various universities have courses on renewable energy. The Centre for Energy Studies / Institute of Engineering / Tribhuvan University has a master degree programme on renewable energy. The Nepal Engineering College / Pokhara University have continued its Bachelor of Engineering course on energy. Likewise, the School of Engineering/ Kathmandu University is also involved in training of students as well as research and development on micro-hydro.

Other training institutes such as Balaju Technical Training Centre (BTTC) and Butwal Technical Institute (BTI) have experience of conducting multi-year courses for producing mid level technicians who can work in manufacturing / installation and consulting firms.

[top] [end]Opportunities and Challenges

There are following opportunities and challenges in the programme:

[top] [end]Opportunities

  • Rural people will have electricity facilities where there is almost no chance of national grid connection;
  • Employment generation;
  • Establishment of local entrepreneurs through end use applications;
  • Support from other donors;
  • Duplication of this model in other countries; and
  • Transfer of technology and skilled manpower.

[top] [end]Challenges

  • Subsidy based programme;
  • Competency of the programme staff;
  • Efficient design of the equipment;
  • Successful operation of the plant; and
  • Political change in the country.

[top] [end]Conclusion and Recommendations

[top] [end]Conclusions

  • Nepal’s energy scenario is dominated by forestry sector as it supplies more than 80 percent of total energy demand.
  • Energy situation in Nepal is characterized by diverse energy consumption patterns due to the differences in geography, culture and economy. The majority of rural households live in poverty with a minimum level of energy consumption. This implies a high level of price and income inelasticity of energy. The subsistence economy of most households makes them difficult new and commercial forms of energy.
  • The micro-hydro technology has been proved to be viable alternative energy technologies in Nepal. This has developed awareness among the rural people, made the life of rural people more comfortable, improved educational status of rural children and have promoted some industrial activities, which have to some extent generated employment opportunities.
  • The present subsidy on the installation of micro-hydro technology is clearly defined and budget is allocated proportionately. However, all subsidies should be adequately funded, well targeted and of good quality outcome.
  • Several government and semi-government agencies as well as private organizations have been involved in the development and dissemination of micro-hydro technology.
  • Micro-hydro technology has not been massively disseminated in Nepal as compared to its technical potentialities. For commercialization of the technology, various promotional and marketing studies need to be conducted. Integration of renewable energy with agriculture, livestock, irrigation and health sectors might create a reasonable market of the technology in the country.

[top] [end]Recommendations

Based on the conclusion drawn, following recommendations are made.
  • Energy development should be based on proper assessment of resources to meet the energy needs of rural people.
  • Development and promotion of micro-hydro should be made an integral part of overall rural development.
  • Continuous but applied R & D should be carried out for the development of micro-hydro.
  • Private sector need to be encouraged to play an important role in the development and dissemination of the technology.

[top] [end]Contributors

Govinda P. Devkota,
Executive Chairman, UCS.
Categories: MicroHydro| Nepal


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Page created: 01 September 2008; Last edited: 02 September 2008; Version: 0
Knowledge Bank text is available under the terms of the GNU Free Documentation License.

Pagename: Micro-hydroDevelopmentInNepal @HEDON: MHNA