1. Experiences Sharing on Micro/Mini Hydro Power Development in Nepal
Ram Prasad Dhital
Executive Director

2. Outline Nepal’s Renewable Energy Overview
RE Sources- Prospects, Potential and Progress
Institutional Arrangement
Policy Landscape of RE Sector
RE Policy, Delivery Mechanism and Financial Incentives
NRREP and Micro/Mini Hydro Power Sector Development
MHP Development Trend
Implementation Modalities and Challenges
Key Actors
Success Factors
Few Recommendations for Myanmar

3. Energy Sector Overview
Total Energy consumption (FY 2012/13)- 10,038 Million ToE
High dependence on traditional fuel and imported petroleum products
Rich in water resources but an acute energy crisis.
Access to Electricity: 69 % of total population (14 % from RETs)
Residential sector consumes about 87% of the total energy
Per capita energy consumption is about 16 GJ. (One of the lowest in the world)
Sources: Economic Survey 2014 (MoF), APR 2013(NEA), UNDP 2013

4. DEVELOPMENT IN ENERGY MIX
Traditional: Fuel wood, Agro- residue, Animal Residue
Commercial: Petroleum, Coal, Electricity
Renewable: Solar, MH, Bio-gas, Wind etc.
Sources: Economic Survey 2014 (MoF), APR 2013(NEA), UNDP 2013

5. Energy Sector Institutional Overview
HYDRO
Coordination
Renewable
MOFALD
Petroleum
Renewable
DDC/DEECCS
Source: NPC 2013

6. AEPC APPROACH FOR PROgram Implementation
Public
Private
Partnership
Demand side
Supply side
Public sector
Private sector
Manufacturing
Supply &
installation
After sales services
Internal quality control
capacity building
Technical & financial assistance
Coordination
Quality assurance
Procedures/ Guidelines
Subsidy
Users/ Beneficiary

7. Institutional Solar System & Solar Water Pumping:
Micro-Hydro (MH)
Domestic Biogas
Wind
Improved Water Mill (IWM)
Improved Cook Stove (ICS)
Biofuel
Solar Home System (SHS)
Solar Dryer & Cooker
Institutional Solar System & Solar Water Pumping:

8. Existing and Future Policies on RE Sector
Rural Energy Policy, 2006
Renewable (Rural) Energy Subsidy Policy, 2012
RE Subsidy Delivery Mechanism, 2013
Additional Financial Support to Micro Hydro Policy, 2013
Financial Act, 2014 – Exemption of VAT & Custom Duty in RE equipments/materials
AEPC Act (in the process)
RE Act including FIT (in the process)
20 Yrs RE Perspective Plan (in the process)
Establishment & operation of Central RE Fund (in the process)

9. NEW INITIATIVES AND APPROACH
PROJECT BASED APPROACH TO SINGLE FRAMEWORK MODALITY APPROACH
SECTOR WIDE APPROACH (SWAP)
Programme Name: National Rural and Renewable
Energy Programe(NRREP), July July 2017

10. National Rural and Renewable Energy Programme
Single Program Modality
Starting Date: 16 July 2012
Duration: 5 years
Budget: USD 170 Million
Support:
UNESCAP

11. NRREP Components Institutional Support Technical Support
MICRO HYDRO
AEPC/
NRREP
Gender Equality and Social Inclusion
Carbon and Climate Change
Productive End Use
Central Renewable Energy Fund
Monitoring and Quality Assurance

12. MICRO HYDRO TREND IN NEPAL
AEPC/NRREP Target
~25000 kW
Total ~36000 kW
~28000 kW (AEPC)
AEPC ESTABLISHED IN 1996
NRREP Year
2013
2014
2015
2016
2017

13. Institutions for Development of M/MHPs
AEPC /
NRREP
Users / Developers
RSCs, DEECCUs
Financial Institutions
Consulting Firms
Installer Companies

14. Roles & Responsibilities of the key stakeholders
Create Enabling Environment
Demand generation and Quality Service delivery
Govt/AEPC
Policy
Planning
Resource Mobilization
Funding
Monitoring
Private Sector
Service Delivery
Survey/Design
Fabrication
Installation
After Sales
USERS
Construction
Operation
Management and Ownership
DDC/DEECCSs
Coordination (Line Agencies/Programs/Private sector and stakeholders)
Local Fund Mobilization (DEF)
Information Dissemination (Awareness on technology and quality, Demand Generation)
Monitoring
Regional Offices/Service Center
Community Mobilization
Project Development and Processing for Funding
Construction Supervision
Building Bridge between Pvt sector , Local Agency and Users
Awareness on adoption
Demand generation
Building bridges between users and PSOs, DDC
Facilitation and coordination

15. Mini/Micro Hydro Project Approval Cycle
Demand Collection
Preliminary Survey
Detail
Feasibility
Study
TRC / Conditional Approval
Contract Award
Final Approval
Const. & Installation
T & C / POHV
OneYear
Guarantee
Users / RSCs / DEECCUs
REF
RSCs / DEECCUs
Existing
MHP Approval Cycle
Installer / MQA (POHVI)
Consulting Firm
AEPC / CESC / REF
Users / Installer
REF
Users / Developers

16. Key Challenges in Micro/Mini Hydro
Ever increasing cost of installation(raw material cost, transportation etc)
Longer project completion period
Lack of productive energy use (Low Plant Factor)
Inadequate revenue stream to cover operation and maintenance expenses
Installations not immune to natural disasters like floods and landslides
Private financial institutions skeptical by and large

17. Generating Social Capital through CM Community Mobilization (CM)
Organization
Development
Skill
Enhancement
Environment
Management
Capital Formation
Community Mobilization (CM)
Technology
Promotion
Women’s
Empowerment

18. Key TO Success 1- Favorable Policy Environment
Promulgation of Rural Energy Policy 2006
Reduce dependency on traditional energy & conserve environment by increasing access to RETs.
Increase employment and productivity through RETs.
Increase living standard of rural population by integrating RETs with social and economic activities.
11/19/2018

19. Key TO Success 2- Strong Quality Assurance System
Guidelines
Pre feasibility study Guidelines
Detail feasibility study Guidelines
Tariff Setting Guidelines
Model Biding Document
Technical Standards
Biogas, Solar and Micro Hydro
Renewable Energy Test Station (RETS) to test and verify the quality standard
Pre qualification:
Consulting Firms
Manufacturers, Fabricators & Installers
Quality Supervisor, POV inspectors
11/19/2018

20. Key TO Success 2: Quality Control, Monitoring & Evaluation
Beneficiaries’ direct involvement from the beginning
Third party monitoring and verification
Penalty system for non-compliance up to the disqualification of the companies
Mini/ Micro hydro – 100% checking and verification
Biogas/ solar systems/ metallic ICS- sample checking

21. Key TO Success 3- Appropriate Institutional Mechanism
Centre
Autonomous AEPC
Centralized Capacity Building Centre and Service Providers; CRT/N,BSP/N,NMHDA,SEMAN,NBPA
Prequalified private sector organizations
District
DEES
Regional service centers and support organization
Branch offices of qualified private companies
Users network
Community
Community Based Organizations, Cooperatives and functional groups

22. Success: A Long Journey
Pilot
In few places
Lessons learned ( , 5 districts)
Expansion
Based on lessons learned expansion in
25 districts
Replication
In other districts and region and neighboring countries
Mainstreaming
Policy formulation, government commitment
(2006 RE policy)
Up-scaling

23. Possible Insights for Myanmar
Dedicated Ministry/Institute mandated for development of off grid electrification from various renewable energy sources
Financial support
Technical Assistance
Careful design of the program, with all stakeholders in mind on their roles, responsibilities, core competence and limitations
Suitable package for training, orientation, capacity building and exposure to relevant institutions/scenarios.
Effective team building with competent members having previous similar experience
Identifying roles for the development partners(Donors)
Money(for subsidy etc)
Policy level support
Robust selection mechanism of partner organizations with clearly defined exit plan

24. Thank you very much for your kind attention !!!
Ram Prasad Dhital
Phone: /