Micro-Hydropower and its

Benefits
By: Sunny Shrestha
MBA I, KUSOM
 Introduction to the Problem

Second richest country in water resources.

SO WHAT?

Potential of 83,000 MW (42,000 MW economically

feasible) but only 619 MW generated. 

Establishment of new hydropower projects.

But, what about rural areas?

Current Scenario of Hydropower in Nepal

Only 7% of the rural households

have access to electricity.

Electricity demand rising by 9%-10%

annually. (ADB)

Production level not at all sufficient

to meet demand resulting long
hours of power cut-offs
MHP Development in Nepal

Started from the traditional water mills

(ghatta)

‘‘Ghattas’’ are upgraded by coupling

turbines with generators or induction
motors which inturn produce electricity.
1769 MHP plants have been set up with a
total capacity of 12.4 MW (International
Energy Journal, Vol.3, 2002)
 Benefits from MHP
Agro-products processing like electrically driven grinders,
oil extractors which saves time.

Rural entrepreneurship – cottage industries, hotels,

bakery

Social welfare – by making services available locally

Discourages Migration

Reduced drudgery for women

 Mechanical energy for grain milling from a micro
Micro hydro powered grain hydro plant
milling by
villagers in Barpak
Organisations involved in MHP development
in Nepal
Rural Energy development center (REDP) ,
Annapurna Conservation Area Project (ACAP)
and King Mahendra Trust for Nature
Conservation (KMTNC) are some of the major
organisations involved in MHP development in
Nepal.

REDP assisted projects receive about 45% grant

from REDP whereas ACAP/KMTNC assisted
projects receive 70% subsidy.
 Tariff structure
Some MHPs have a flat tariff rate ranging from 0.25 per unit per month to
Rs. 2 per unit per month.

However, there is no standard tariff determination guideline for MHPs.

Rates seem to be cheaper than that of NEA.

In some cases the current rates are not even sufficient for the
collection of minimum operating costs of the MHPs.

Price could be raised but are the consumers ready to pay?

 Contd…
• Tariff structures in some of the MHPs are
tabulated as:
    Tariff (Rs./kWh)

Project Estd. (Capacity) Domestic Non-Domestic Average

Gaura Rice mill, Baglung 2041 (19 kW) 2.43 2.54 2.5

Barpak MHP 2048 (46.5 kW) 6.59 4.55 5.72

Pemba Gelu, Solukhumbu 2051 (12 kW) 4.61 7.21 6.6

Radhalaxmi, Illam 2041 (7.5 kW) 4.21 2.82 3.14

Ghandruk MHP 2048 (50 kW) 6 2.5 4.4

Jomsom MHP 2040 (240 kW) 3.96 5.49 4.54

 Conclusion

MHPs seem beneficial for the rural

population and the national economy as a
whole.

Eco-friendly

Also helps in reducing the import of

petroleum products.
 Recommendations

• Trainings to the staff

• Use of local labour
• Turbine testing facility
Following • Financing the
recommendation entreprenuers
• Aiding the research and
s can be made:
development
• Promotion of electric
cooking – Bijuli Dekchi
 Recommendation continued

• Use of locally manufactured equipments

whereever possible
• Siting of power plants as close to the
village as possible
• Available infrastructures should be used
Cost wherever possible
• Use of local labour
reduction • Good planning for achieving high plant
load factor
THANK YOU