Tribhuvan University

Institute of Engineering
Department of Mechanical Engineering
M.Sc. in Energy System Planning and Management
Pulchowk

Research
On
Sustainability Study of MHPP taking Pasgaun MPP as an example

Submitted by
Robin Neupane (075-MSESPM-016)
Submitted to
Department of Mechanical Engineering,
IOE, Pulchowk Campus.
July 2, 2019
Table of Contents
Introduction ................................................................................................................................ 1
Objectives .................................................................................................................................. 2
Methodology .............................................................................................................................. 3
Questionnaire development .................................................................................................... 3
Indirect field visit.................................................................................................................... 3
Data Collection ....................................................................................................................... 3
Data Analysis .......................................................................................................................... 4
Findings...................................................................................................................................... 4
Current status of MHPP in Lamjung and in Nepal ................................................................. 4
Investment aspects .................................................................................................................. 4
Technical aspects .................................................................................................................... 5
Socio-economic aspects .......................................................................................................... 5
Environmental aspects ............................................................................................................ 6
SWOT Analysis ......................................................................................................................... 6
Strength ................................................................................................................................... 7
Weakness ................................................................................................................................ 7
Opportunities .......................................................................................................................... 7
Threats .................................................................................................................................... 8
Conclusions ................................................................................................................................ 8
Bibliography .............................................................................................................................. 9
 1. Introduction

Energy is one of the important bases of life after means of sustenance like air, water and food.
The need of energy in the ranges of thousands of kilowatts was usual thing during European
industrial revolution; coal and natural gas supplemented the need ( Stern & Kander, 2012).
The demand for energy is always positive and assumes an increasing trend. This is partly due
to population explosion and partly due to economic development.
In order to attain all the eight Millennium Development Goals, energy plays an important role
(Ranabhat & Paudyal, 2016). It is also basis for sustainable development. Such process of
energy conversion will be sustainable if while converting and using the outputs of energy
resources also supports long-term social and economic human development. Such process
also helps preserve resources for futurity and is compatible with environmental balance
(Rafaj, 2005).
Recent technological developments have increased the efficiency of traditional energy
conversion process. Additionally, technological advancements have opened new avenues of
renewable, non-conventional resources like solar, wind, biomass etc. Since the effects of the
negative externalities from the fossil fuel became more visible, more aggravating, concerns
over sustainability and environmental impact of these traditional fuels became the ‘talk of the
town’. Therefore, production of clean, sustainable power sustainably from renewable
resources has got attention around the globe (Boyle, 2004).
Renewable energy gives two major benefits – it supersedes the supply of energy from the
traditional sources thereby reducing emission of the air pollutant and secondly it is the best
choice for electrifying the location far away from the national grid. Micro hydro power plant
(M.H.P.P.) and solar photovoltaic (S.P.V.) have been built for rural electrification. However,
sustainability still poses as main challenge for off-grid electrification.
Sustainability issue is a multi-dimensional concept. It is composed of technical, socio-cultural,
institutional and environmental aspects (Bambang, et al., 2018). With proper MHPP design
and construction, proper operation and timely maintenance, availability of spare parts and
technician can help realize the technical sustainability of the MHPP. Tariff consideration and
productive use of MHPP constitute the economic sustainability of MHPP. Growth in
Consumer’s load, increment of consumer’s quantity and full institutional support comes
under the social dimension. Institutional aspects denote to the ability to train and create a
team of manpower for running the MHPP. Water availability, generation of required head,
prevention of water related disaster make a MHPP environmentally sustainable.
From technical point of view, MHPP technology is comparatively simple (Bambang, et al.,
2018). Almost all component can be produced within Nepal. From economy and financial
viewpoint, operating and maintenance cost is also less than other renewable energy
technologies. Water is clean, cheap, environmentally favourable and freely available unlike
fossil fuels. The water for MHPP can be utilized from irrigation channel, rivers or natural
waterfall. According to JICA, MHPP is a hydropower plant with capacity up to 200 kW
(JICA, 2003).

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The aim of this paper is to investigate sustainability aspects of MHPP taking an example of
Pasgaun MHPP.

Fig: Three major aspects of sustainability

Hydropower is sustainable form of energy which is extracted from water. It has gain
reputation worldwide as it emits less greenhouse gas, operates with minimum cost and has
relatively longer life among many other benefits.
Hydropower potential of Nepal is sufficiently large as it is the second richest country in
hydropower in the world after Brazil (Adhikari, 2011 ). But only 1% of the total potential has
been extracted till date (Dahal & Shrestha, 2016), which is very unfortunate. Despite having
such a huge potential in renewable energy sector, traditional biomass supplies nearly 85% of
the energy demand while only 56% of households have access to electricity (Ranabhat &
Paudyal, 2016). The population in the rural area is huge and people living in the rural
community are poor. The idea of improving the quality of life in the rural community can’t be
realized until and unless their demand for clean, sustainable energy is met. But due to
difficult terrain, high cost of transporting energy, limited financial capability of the Nepal’s
Government and dispersed habitant always pose as threat to connect the rural communities
with national grid. Thus, micro-hydro includes best benefits in term of having positive socio-
economic impacts over the rural households.

2. Objectives

The following scenario is well known in Nepalese context – the demand of electricity(power)
is always increasing; Nepal does not possess its own oil and gas reserve; the price of oil and

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natural gas gets fluctuating day in and day out. So, there lies an opportunity for demand side
management for the electric power utilities as well as for the customer (Dahal & Shrestha,
2016). This demand side management is only to be applied to a Micro Hydro Power Project.

The followings are the other aims of this research besides demand side management of a
MHPP –
A. To study sustainability aspects of a micro-hydro power station, which is the study of
the ability of a hydro power project to run smoothly up to its projected time of
operations dispatching targeted benefits as well as services all the time.

B. To conduct sustainability analysis of a micro hydro power project, which is defined as

‘the identification and analysis of degree of presence or absence of factors that are
likely to impact, either positively or negatively on the prospects of sustained delivery
of benefits from the project’.

C. To present equitable, viable and bearable solution(s) to the problem(s) faced during
the sustainability study

3. Methodology

- Questionnaire development
Typical questionnaires were prepared in order to receive feedback from stake holding
community in the Khwolasothar village community, where Pasgaun MHPP is located.
The collected data was input for the sustainability analysis.

- Indirect field visit

An independent 3rd party was hired to visit the site (Pasgaun Mini Hydropower Project-
66kW, Lamjung) who reported the technical, social, economic impacts from the micro
hydropower project.

- Data Collection
The publications from Alternative Energy Promotion Centre (A.E.P.C.), Nepal
Electricity Authority (N.E.A.) and other similar organization became the sources of
primary and secondary data. These data were fed into computer for further processing.

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 - Data Analysis
The quantitative results from the questionnaire, indirect field visit and data
collections that were fed into a computer were processed with spreadsheet
application like MS Excel.

4. Findings

- Current status of MHPP in Lamjung and in Nepal

The year 1996 AD was the time when Government of Nepal established Alternative
Energy Promoting Centre (AEPC) with the objectives of developing and promoting
renewable/alternative energy.
Annapurna Conservation Area Project, which also passes through Lamjung district has
as many as 49 micro hydropower projects (Services, 2016). Lamjung district alone has
three micro hydropower projects. As many as 13 mini/micro projects have support
from the Annapurna Conservation Area Project (Services, 2016).
.

Fig. The number of installed mini/micro hydropower project per year (Source – AEPC)

- Investment aspects
The hydropower of 66 kW was completed with investment of 1 crore 50 lacks. Local
has put 30% of the investment in the project, while the government has given
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 remaining 70%. All the major plant equipment was transported via a rough road
connecting Pasgaun with Pokhara.

- Technical aspects
The 66 kW Pasgaun Micro Project is owned and run by the local community. The
project produces power 22 hours a day with just two hours of artificial outage to some
300 households. A total of two manpower is recruited for the powerhouse. They handle
the operation turn by turn. Upkeep of the intake areas is allotted to the local.
Maintenance works were done time to time in various component such as distribution
line, generator, generator and civil structure.
- Socio-economic aspects
Sustainability and economic activities go hand in hand. Without enough fund, smooth
running of a community owned project is next to impossible.
Chiefly Gurung with very small amount of Damai, Sharki and ‘bhagaunda/haliya’
Bahun also community uses the electricity from Pasgaun Micro Project. Gurung
communities are either pensioner in foreign armies or farmers or both. Nearly 90% of
the Gurungs comes under this category. The houses are made up of stones and also
using local materials, have small doors and windows. The electric power is chiefly
utilized to illuminate the houses. Well-to-do families have erected houses also in
nearby big cities like Ramnagar, Damauli and Pokhara.
Potatoes and large cardamom are the chief cash crops of the community. The
community also falls as one of the pocket regions for large cardamom farming in
Lamjung-Kaski district. The price of large cardamom rose to a record-breaking Rs
2700/kg during 2014 AD. But in year 2018, the price dropped to Rs850/Kg (Portel,
2018). The cardamom is exported to the foreign destination via India. Potatoes are sold
Rs15/Kg to nearby big cities like Ramnagar, Damauli and Pokhara.
In other, food crops like rice and wheat rarely sees the market. Therefore, it is to satisfy
the village hunger only.
An ongoing Rudi Hydropower project had to utilize a portion of cultivable land
belonging to the community. For this, the affected owners were handsomely
compensated. With running of one Rudi –‘A’ project and construction activities of
another, the local communities are reaping off the benefits of employment
opportunities earning Rs.18000 per month to Rs. 45000 per month. The Corporate
Social Responsibility of the Rudi projects are also helping in improving the quality of
life of the Pasgaun village.
Cows and buffalos are reared for milk, meat and hide while oxen are reared for tilling
the land. Donkeys are reared for transporting the goods to the village.
Local sheep and Chyangra goat are also sold with price tag of Rs 5000 to Rs 15000 per
head. Due to being a part of Annapurna Conversation Area Project, Pasgaun also

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 welcomes tourist as well as ornithologists. There is community managed homestay.
Road connectivity has also improved chances of attracting indoor tourism.
There are one government school which teaches up to 10 standard and one health post
for immediate health support. Common medicine, vaccination, dressing and simple
health check-ups are the facilities in the health post. Family planning is practised
nowadays.

- Environmental aspects
The village sits in the glade of dense forest on a sloping mountain. The Rudi Khola is
the source of water for daily activities and agricultural need. The environmental
impacts in the Pasgaun areas are due to use of coal, wood, kerosene, dry cells, solar
cells and animal residues. The combustion/use of these materials release, either directly
or indirectly, air pollutants like greenhouse gases and land pollutants like chemical
waste.
With availability of electricity from the micro hydropower, the aforementioned
pollutants have decreased.

Fig: Pasgaun Village

5. SWOT Analysis
Nepal is a country where natural resources are available profusely and exceptionally.
Water resource is the best example of resource which, due to mismanagement, and lack of
attractive investment environment, the country is behind to exploit it up to the full
potential. When utilized fully, hydropower will be best in terms of revenue generation and
poverty alleviation.

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- Strength
As per a conservative estimate, the growth of electricity demand is likely to increase by
10% per annum (Gangol, 2015). With a gross capacity of 86000MW, Nepal could very
easily meet its demand. The rising giants of neighbourhood countries like India, China
could be the market for the surplus production.
As guardian to its people, Nepal could easily set up micro hydropower projects in all
the geographically difficult places. This will boost the morale in the citizenry of far-
flung places.

- Weakness
Investment (money) is prime requisite of carrying out construction activities. There
could be the time where investor might just need completion of project, where the time
and effort to do quality and satisfactory work have to be shortened or be underplayed
just for the sake of completing everything quick. Similarly, there could be the time
where the investor care less for safety, quality and workmanship.
These bad believes are commonly held by investors who are in the project just for
making quick bucks. These sorts of behaviours would will have negative impacts in
effective output from the projects, lives of those involved and sometime might increase
overall cost in rework.
Expert consultation comes first while erecting an MHPP. For mini/micro project, lack
of permanent or salaried income might disturb generation of required fund.
Apathy from the target community cannot be ignored while establishing such a
community-based project. People may show general lack of disinterest for carrying out
such project. Nimbyism may prevail, which would ultimate dislodge the project from
the design site.

- Opportunities
Hydropower was the chief export for the neighbouring country, Bhutan, in 2016
amounting 32.4 % of country’s total export and 8 % of its G.D.P. (Poindexter, 2018).
Indian establishment seems to favour Bhutan’s electricity (Gangol, 2015). If Nepal
could also win India’s or any prospecting country’s favour, Nepal’s hydropower energy
could be very well sold as a foreign income.

This opportunity could bring in multiple benefits like revenue generation, rapid
industrialisation, energy security, employment generation, import substitution of fossil
fuels et cetera.

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 In case of mini/micro project, involvement of local communities as shareholders in
energy generation project foster a sense of ownership within the community’s member.
Loan and license for community-based project are often dispatched without much of a
hassle and less bureaucracies.
The decision making in such a project would be based locally. Quick decision making
is an important characteristic of such enterprises. Decision binding to all could be
passed very quickly and very effectively.
Introduction of any new technologies or principles in the renewable energy sector
could be started in small scaled, community level project since the risks of bad
investment decision is minimum in such a project.

- Threats
With provision of investment friendly rules and regulations, Nepal should have
observed major boom in hydropower generation. But that is not the case.
Investors are frustrated due to red-tapes, delay in processing of approvals, permits,
clearances et cetera.
Due to the absence of power trading company, independent power producers only have
the Nepal Electricity Authority as their sole buyer.
Land acquisition is another big threat while constructing hydropower station. Local
brings in unreasonable demands which often frustrate investors. At times, investors
have to scrap the project off.
For mini/micro project, raising the required funds for carrying out the construction
works as well as maintenance works pose as a major threat.

6. Conclusions

A. The daily demand for electricity in Nepal is 26000 MWh, of which NEA is
supplying 8996 MWh, and is importing 9351 MWh from outside country and
purchasing 7653 MWh from Independent Power Producer within Nepal (Ghising,
2019). The supply is matching the demand. But there is no room for complacency
as it is evident from the historical annals that economic advancements come with
increasing consumption of electricity (Dahal & Shrestha, 2016).

B. When we could be a thriving, self-sustaining economy, Nepal had been a poor

country with economy in the verge of utter disgrace and 21 % of people living

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 below the poverty line (Baskota, 2018). Nepal should strive to create competitive
incentives for Foreign Direct Investment. As for electrification of rural households,
participation of local community would likely to make it self-sustainable.

C. Till date, more than 27 MW power is being generated from micro-hydropower of

Nepal. It is good news that the figure is increasing as we speak.

D. The sales and generation of hydropower is not matching exactly. Nepal’s

hydropower is subjected to repair and maintenance works more.

E. Cost involved in micro-hydro technology is a major player as the output from

such a project is low due to low demand that happens in rural areas. Therefore, the
technology should be variable in scale so that it can meet particular needs or
resource potential.

F. Utilization of water resources besides MHPP such as in agriculture work,

plantation, fish industry, recreation and potable water supply also adds to quality
of life

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Available at: https://www.hydroworld.com
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