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Assessment (2009)
Csaba Zagoni
1. Introduction
In the present context, 42 GW of Nepal’s hydropower potential is known to be economically
viable out of the 83 GW theoretical potential (Ghimire, 2008), however, in 2008 the total installed
capacity was only 611 MW of which 148 MW came from the private sector (Shestra, 2008).
Depending on scale, the technology can cause serious negative environmental effects, and have
GHG emissions comparable to a fossil-fuel plant (Giles, 2006). Nevertheless, carefully designed
small-scale hydropower plants have little negative environmental impact, therefore they have the
potential of delivering clean energy to the communities of the ecologically sensitive Himalaya
region (Rijal, 2000.)
According to the assessment carried out by the World Bank (2006), in areas where grid-
extensions are unlikely in the near future, off-grid pico-hydro schemes with output of less than 5kW
(Pokharel, 2006), have the prospects to be 3-5 times more cost-effective than other electricity
generation technologies including solar PV, wind, and diesel-generators (fig. 1, p. 1). (World Bank,
2006.)
This paper aims to identify the power-demand of rural communities in highland Nepal and
discuss the potential of pico-hydro schemes in meeting this demand. Four different locally
manufactured, standardized pico-hydro packages are compared, the upgrading of traditional water
mills is studied and financial issues are considered.
Figure 1. Predicted cost for off-grid electricity (Source: Williams et al., 2009)
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
Domestic lighting is the first and basic power demand of rural communities. In high-elevation
areas of Nepal, lighting at night is produced by burning pine resin, which creates an unhealthy,
smoky indoor environment and contributes to deforestation (Zahnd et al., 2007). By electrifying
domestic lighting, a pico-hydro power plant can reduce fossil-fuel usage, and thus cut down CO2
emissions, lower the number of house-fires, improve indoor air-quality and extend working/
studying hours per day (Williams, 2007).
Combining current WLED technology with pico-hydro power generation is a cost-effective
and highly-efficient solution for meeting domestic lighting needs. Two 1W WLED light per
household provides better quality lighting than currently used traditional methods (Bhusal et al.,
2007), which means that a generator can supply 500 households per kW.
By providing energy for lighting only, the load-factor of a hydropower plant rarely exceeds
10% (Paish, 2002) and it used to be general practice to utilize an air-heater as a ballast load. To
reduce the amount of energy wasted, newer plants are designed to heat water in an insulated tank
to promote both maintaining personal hygiene and supply warm/hot water for cooking purposes
thus lowering firewood consumption (Zahnd et al. 2007).
For a project to become economically viable, it is necessary that the plant has a high load-
factor, and if possible, part of the power generated is used directly for income generating activities
(Paish, 2002). In rural areas grain grinding, rice hulling, oil expelling and saw milling are the basic
power-intensive tasks of agricultural and industrial production, therefore the most cost-effective use
of hydropower is driving mechanical machinery in addition to meeting the community’s electricity
needs (UNDP, 2009). Different choices of end-uses benefit those members of the communities as
well, who cannot be connected to the electricity supply because of financial reasons or location
(Khennas et al., 2000).
High-head, low-flow schemes are the most common among recently installed pico-hydro
projects (PEEDA, 2009).
The Peltric Set is a Nepalese-made standardized pico-hydro package consisting of a small
vertical shaft pelton turbine coupled with an induction generator. This simple, robust, lightweight
and low-cost package has proved to be reliable and it is being manufactured at a rate of 100 per
annum. (CRT/N, 2005.)
The design of the Pico Power Pack (fig. 2, p. 3) is based on the successful Peltric Set with a
different horizontal arrangement to increase ease of inspection and maintenance. The typical
required flow is between 3 to 15 l/s and the range of head is 25-100 m. In addition to the mains AC
output, it includes a free shaft which can be used to drive mechanical loads. (Maher, 1999.)
Many communities don’t have suitable sites for peltric-type high-head turbines, however they
might have low-head, high-flow rivers or irrigation channels nearby (PEEDA, 2009). At the present,
low-head pico-hydro schemes are uncommon in Nepal, however, recent research has been
focusing on the development of affordable packages for these sites (Williams et al., 2009).
Nepal Hydro Electric (NHE) has recently developed a pico-hydro package based on a 73%
efficient volute cased propeller turbine which requires a head of 3.3 m (PEEDA, 2009).
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
Figure 2. The Pico Power Pack generates AC electricity and allows mechanical equipment to be driven.
(Source: Maher, 1999)
Kathmandu Metal Industry has developed a pico-sized crossflow turbine package of 100W -
5kW power named the KMI Crossric, with the operating ranges of 5 - 20 m head and 5 - 50 l/s flow
(PEEDA, 2009).
All of the modern pico-hydro packages are connected to an electronic load controller (ELC),
which regulates the voltage and the frequency of the electricity supplied. Any extra power
generated on top of the actual demand is directed to a correctly-sized ballast load, in most cases
to a water heater (Smith et al., 2000). The ELC makes it possible to use mechanical power and
generate electricity at the same time. If the mechanical load takes all the available power at the
shaft, the generator runs slower than it is necessary for excitation. As the mechanical load is
reduced, the shaft spins faster and when the minimal speed for excitation is exceeded, the
generator starts producing electric power and any excess power is routed to the ballast load. In
this state, the generator acts as an electrical brake, preventing overspeeding by self-regulation.
This is highly beneficial in the case when the mechanical load is inconsistent such as milling and
sawing as it improves performance and life span. (Maher, 1999.)
There are more than 25000 indigenous watermills (“gharats”) in Nepal, harnessing the
energy of mountain streams for grinding grains (Shrestha, 2007). These “gharats” are made of
local materials with low capital cost, they have very low running costs and are easy to maintain.
They are usually located close to the village, on the bank of a perennial stream, with a diversion
channel providing 3-6 m head. They consist of a wooden chute, wooden vertical-axis runner,
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
wooden shaft and two grinding stones. The typical mechanical power produced is 0.5-1.5 kW with
an efficiency of 15-25% and they grind 5-10 kg of grain per hour. (Sharma et al., 2008.)
In cases, where adequate flow and head of water is available to produce a minimum of 5 kW
power at the shaft, the traditional “gharat” can be modified to provide mechanical power at an
improved efficiency and generate electricity. Figure 3. (p. 3) shows the comparison of a traditional
water mill and an improved water mill. The main improvements are replacement of the wooden
runner with a metal runner with buckets (or a one-piece casting steel cross-flow turbine), and using
a long steel shaft with ball bearings. This allows for driving the generator as well as other
mechanical equipment for different end-uses. The wooden chute is replaced with HDPE pipe and a
spear valve is fitted. (Sharma et al., 2008.)
The benefits of improved efficiency (typically 30-40%) results in higher grinding output (20-30
kg/h) and operation at lower flow rates thus extending the milling season into the drier seasons
(Shrestha, 2007).
5. Comparison
The following discussion is based on data gathered from the following sources: Shakya
(2007), AEPC (2009), CRT/N (2005), Maher (1999), PEEDA (2009), Sharma et al. (2008) and
Zahnd et al. (2009).
Figure 4. Different options to meet rural energy needs (Costs in Nepalese Rupees). (Source: Shakya, 2007)
Figure 4. (p. 4) shows different options to meet rural energy needs. Subsidies are calculated
on a per household basis, although the total subsidy cannot exceed the amount set by the ‘subsidy
per kW’ value (AEPC, 2009).
In cases when the extension of the national grid is unlikely during the payback period of the
renewable energy project, these schemes can prove to be a cost-effective way of improving the
lives of rural communities.
Solar PV systems can provide electricity for single households, but although it has the
highest rate of subsidy among RE technologies it is usually unfeasible on community level due to
its high capital cost.
The cost/kW value of a new micro-hydro plant and a new pico-hydro plant after deducting the
maximum available subsidy is 115000 NPR/kW, while it is 110000 NPR/kW in case of an improved
water mill. The main difference is that on top of electricity generation, in the case of a new hydro
plant, this cost covers only an option to couple mechanical machinery to the shaft, whereas in case
of an IWM, the cost includes an improved working mill plus the option of different mechanical end-
uses.
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
Figure 6. Economic features of water mill improvements for different end-uses in Nepalese Rupees. (Source:
CRT/N, 2009)
Figure 6. (p. 5) shows the economic features of different mill improvements for different end-
uses. The difference between the annual net income of a grinding and hulling IWM with and
without electrification is really small compared to the great differences in net investment. This
explains that the payback period for an IWM with electrification is roughly twice as long as for one
with mechanical end-uses only. The government subsidy seems to be trying to address this issue,
however the high capital cost makes this option quite unattractive for communities or local
businesses. Alternative financing solutions need to be sought for, to promote and make rural
electrification economically more attractive, as it has invaluable benefits in sustainable rural
development (Zahnd et al., 2009).
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
6. Conclusion
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Csaba Zagoni REBE CAT 0941436 - Module 3. Assessment (2009)
7. References
AEPC, 2009. Subsidy policy for MHP projects in Nepal. Alternative Energy Promotion Centre.
Available from: http://www.aepc.gov.np (Accessed on 24th December 2009)
BHUSAL, P., ZAHND, A., ELOHOLMA, M., HALONEN. L., 2007. Energy-efficient innovative
lighting and energy supply solutions in developing countries. International Review of Electrical
Engineering (I.R.E.E.), 2 (5), pp. 665-670.
CHALISE, S.R., KANSAKAR, S.R., REES, G., CROKER, K., ZAIDMAN, M., 2003. Management of
water resources and low flow estimation for the Himalayan basins of Nepal. Journal of Hydrology.
282. pp. 25-35.
CRT/N, 2009. RE Practices in Nepal – Micro Hydro Technology Improved Water Mill (IWM), Nepal.
Available from: http://www.crtnepal.org (Accessed on 24th December 2009)
GHIMIRE, H.K., 2008. Harnessing of Mini Scale Hydropower for Rural Electrification in Nepal.
Available from: http://www.nepjol.info/index.php/HN/article/viewFile/1165/1178 (Accessed on 24th
December 2009)
GILES, J., 2006. Methane quashes green credentials of hydropower. Nature. 444, pp. 524–525.
ICIMOD, 2009. Climate change in the Himalayas. International Centre for Integrated Mountain
Development, Information sheet 03/09. Available from: http://books.icimod.org/uploads/tmp/icimod-
climate_change_in_the_himalayas.pdf (Accessed on 24th December 2009)
KHENNAS, S., BARNETT, A., 2000. Best practices for sustainable development of micro hydro
power in developing countries. ESMAP Technical Paper 006, IBRD, World Bank.
MAHAT, I., 2004. Implementation of alternative energy technologies in Nepal: towards the
achievement of sustainable livelihoods. Energy for Sustainable Development. 8 (2), pp. 9-16.
MAHER, P., SMITH, N., 1999. The Pico Power Pack: a new design for pico-hydro. Pico Hydro. 10.
pp. 7-8.
PAISH, O., 2002. Small hydro power: technology and current status. Renewable and Sustainable
Energy Reviews. 6. pp. 537-556.
PEEDA, 2009. Low-head pico-hydro promotion project, Nepal. Available from: http://
www.peeda.net/ (Accessed on 24th December 2009)
POKHAREL, G. R., 2006. Plans and policies for RE development. Available from: http://www.sari-
energy.org/PageFiles/What_We_Do/activities/Renewable_Energy_April_2008/Nepal_Pokharel.pdf
(Accessed on 24th December 2009)
RIJAL, K., 2000. Mini and micro hydro power development: status, issues and strategies for the
Hindu Kush Himalayan Region. NESS Journal of Engineering. 9.
SHAKYA, B., 2007. Improved Water Mill - Appropriate source of energy for rural people. Centre for
Rural Technology Nepal. Available from: http://www.iim.uni-flensburg.de/sesam/upload/
Asiana_Alumni/21._IWM_appropriate_source_of_energy_for__rural_people-Bhupendra.pdf
(Accessed on 24th December 2009)
SHARMA, R. C., BISHT, Y., SHARMA, R., SINGH, D., 2008. Gharats (watermills): Indigenous
device for sustainable development of renewable hydro-energy in Uttrakhand Himalayas.
Renewable Energy. 33. pp. 2199-2206.
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SHRESTHA, L., 2007. Upgraded water mills improve livelihoods in the Himalayan villages of
Nepal. Centre for Rural Technology Nepal. Available from: http://www.ashdenawards.org/files/
reports/CRT_Nepal_2007_Technical_report_.pdf (Accessed on 24th December 2009)
SMITH, N., RANJITKAR, G., 2000. Nepal case study - part one (Installation and performance of
the Pico Power Pack). Pico Hydro. 4. pp. 2-4.
UNDP, 2009. Expanding energy access in developing countries: The role of mechanical power.
Practical Action. ISBN 978 1 85339 704 2
WILLIAMS, A., 2007. Pico-hydro for cost-effective lighting. Boiling Point. 53. pp. 14-16.
WILLIAMS, A. A., SIMPSON, R., 2009. Pico-hydro - reducing technical risks for rural electrification.
Renewable Energy. 34. pp. 1986-1991.
WORLD BANK, 2006. Technical and economic assessment of off-grid, mini-grid and grid
electrification technologies – summary report. World Bank Energy Unit;
WWF, 2005. An overview of glaciers, glacier retreat and subsequent impacts in Nepal, India and
China. WWF Nepal. Available from: http://assets.panda.org/downloads/
himalayaglaciersreport2005.pdf (Accessed on 24th December 2009)
ZAHND, A. AND KIMBER, H.M., 2009. Benefits from a renewable energy village electrification
system. Renewable Energy. 34 (2), pp. 362–368.
ZAHND, A. AND McKAY, K., 2007. Pico-hydro Power Plant for elementary lighting as Part of a
Holistic Community Development Project in a remote and impoverished Himalayan Village in
Nepal. RIDS - Nepal.
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