173 feasibility study of micro hydro power in nepal
TRANSCRIPT
RESEARCH REPORT ON “FEASIBILITY STUDY OF MICRO HYDROPOWER IN NEPAL
BY VAIBHAV PANDEY Under graduating student, Research coordinator Nepal Engineering College, nec 6/20/2011
The research was strongly
supported by Nepal
Engineering College
And
It was an initiative of Centre
for Advanced Research and
Obligatory Learning,
CAROL
This page is intentionally left
blank
SALIENT FEATURE
Gross Head : 30 m
Measured Flow & Date : 204 lps, May-11, 2009
Least Flow : 201.34 lps
Design discharge : 154 lps
Name of the River : Lower Puwa Khola
Power Output : 25 kW
Beneficiary Households (Nos) : 259 HH
Length of Power Canal (m) : 1071 m
1015 Stone masonry (1:4) C/S
56 m RCC Canal
Power House : Internal dimension (5x 7.95 x 2.7, m)
Stone masonry with mud mortar
Type of Turbine : Cross flow 38 kW Shaft Output
Type of Generator : 50 kVA, 3 Phases, Synchronous, Brushless
Type of Load Controller : ELC 25 kW with Ballast tank 30 kW
Penstock Type & Length : M.S 280 mm ID, 3 mm thickness – 66.0 m
Length of T & D Lines (m) : 24.008 km (single length)
H.T line 5.834 km
L.T 3 phase 7.824 km
L.T 1 phase 10.6 km
Composite Line 4.734 km
Transformer : 25 kVA -2 nos, Setp up, Setup down
Road head Name : Nepaltar, Puwa khola bazaar (Ilaam)
Distance (km) : 45
Productive End uses : Agro-processing, Rural Carpentry, Computer
Bakery and High vision hall
Proposed Tariff : Rs. 2/Watt/month for HH lighting
Rs.8/kWh for end uses
Average Subscribed Power : 96 Watt per HH
Project Costs
Total Project Cost (Rs.) : 9, 048, 745.00
Cost per kW (Rs.) : 361, 950.00
Total Non Local Cost (Rs.) : 7, 604, 702.00
Non Local Cost per kW (Rs.) : 305, 950.00
Source of Finance (Rs.)
Subsidy : 3,562,500.00
Community Investment (Loan) : 1,160,853.00
DDC Investment : 452, 437.00 (5% of TPC)
VDC Investment : 904, 875.00 (10% of TPC)
Community Equity (Local costs) : 1,414, 081.00
Community Equity (Cash) : 1,554,000.00
Nepal Engineering College : 50,000.00
CAROL : 80,000.00
Financial Analysis
IRR : 15%
NPV (Rs.) : 1,120,955.00 (Rate of 10%, 15 yrs)
B/C Ratio : 1.07
Payback Period : 6.8 yrs.
Economical Analysis
EIRR : 11%
NPV (Rs.) : 453,222.00, (Rate of 10 %, 15yrs)
Payback Period : 7.5 yrs.
TABLE OF CONTENT
SAILENT FEATURE ..................................................................................................... - 0 -
TABLE OF CONTENT .................................................................................................. - 5 -
EXECUTIVE SUMMARY ............................................................................................. - 8 -
ACKNOWLEDGEMENT ............................................................................................... - 9 -
ACRONYMS AND ABBREVIATIONS ...................................................................... - 10 -
Chapter 1 ........................................................................................................................... 12
INTRODUCTION ............................................................................................................. 12
1.1 Back ground ............................................................................................................ 12
1.2 Objective of the Study ............................................................................................ 13
1.3 Methodology ........................................................................................................... 13
1.3.1 Field Work ....................................................................................................... 13
1.3.2 Office Work ..................................................................................................... 14
Chapter 2 ........................................................................................................................... 15
GENERAL PROJECT DESCRIPTION ............................................................................ 15
2.1 Locations and Accessibility .................................................................................... 15
2.2 Topography and Geography ................................................................................... 15
2.3 Climate and Vegetation. ......................................................................................... 16
2.4 Project Area and Facilities ...................................................................................... 16
2.5 Hydrology and Water Right Issues ......................................................................... 16
2.6 Energy Consumption Pattern .................................................................................. 17
2.6.1 Present Situation .............................................................................................. 17
2.6.2 Domestic Demand of Electricity ..................................................................... 17
2.6.3 Potential End Uses ........................................................................................... 18
I Agro-processing ............................................................................................... 18
II Rural Carpentry ............................................................................................... 18
III Computer ......................................................................................................... 19
IV Bakery .............................................................................................................. 19
V High Vision Hall .............................................................................................. 19
2.6.4 Expected Load Demand Pattern ...................................................................... 20
2.7 Socioeconomic Condition and Affordability .......................................................... 20
2.8 Status of DEES Community Mobilization Process ................................................ 21
2.9 Plant Size and Power Requirements ....................................................................... 21
Chapter 3 ........................................................................................................................... 23
TECHNICAL ASPECTS OF THE MHS .......................................................................... 23
3.1 Civil Components ................................................................................................... 23
3.1.1 I ntake Structure and Diversion ....................................................................... 23
3.1.2 Headrace Conveyance ..................................................................................... 23
3.1.3 Crossing ........................................................................................................... 23
3.1.4 Desilting Basin ................................................................................................ 23
3.1.3 Forebay Cum Settling Basin ............................................................................ 24
3.1.5 Anchor Block & Support Piers ........................................................................ 24
3.1.6 Powerhouse, Machine Foundation & Tailrace ............................................... 24
3.2 Electro-mechanical Works: ..................................................................................... 25
3.2.1 Trash rack ........................................................................................................ 25
3.2.2 Penstock layout & Expansion Joints .............................................................. 25
3.2.3 Turbine ............................................................................................................ 26
3.2.4 Generator ......................................................................................................... 26
3.2.5 Drive System ................................................................................................... 27
3.2.6 Control System ................................................................................................ 27
3.2.7 Powerhouse Cabling ........................................................................................ 28
3.2.8 Transmission / Distribution Network .............................................................. 28
3.2.9 Earthings & Lightening Arrestors ................................................................... 29
3.2.10 Consumer Protection & Service Wire ............................................................. 30
Chapter 4 ........................................................................................................................... 31
FINANCIAL AND ECONOMICAL ASPECTS OF THE MHS...................................... 31
4.1 Quantity Estimate and Rate Analysis ..................................................................... 31
4.2 Detailed Cost Estimate ............................................................................................ 31
4.2.2 Cost of Electro Mechanical Components ........................................................ 32
4.2.3 Other Costs ...................................................................................................... 33
4.3 Summary of Cost .................................................................................................... 33
4.4 Financial Mix .......................................................................................................... 34
4.5 Annual Expenses ..................................................................................................... 35
4.6 Annual Incomes ..................................................................................................... 35
4.7 Financial Analysis ................................................................................................... 36
4.8 Economic Analysis ................................................................................................. 37
4.8.1 Investment Cost ............................................................................................... 37
4.8.2 Operation and Maintenance Cost .................................................................... 37
4.8.3 Economic Benefit ............................................................................................ 37
4.8.4 Economical Indicators ..................................................................................... 39
Chapter 5 ........................................................................................................................... 40
OPERATION AND MANAGEMENT ASPECTS OF THE MHS .................................. 40
5.1 Institutions .............................................................................................................. 40
5.2 Skilled Manpower ................................................................................................... 41
5.3 Follow-up, Supervision and Reporting ................................................................... 41
Chapter 6 ........................................................................................................................... 42
ENVIRONMENTAL ANALYSIS .................................................................................... 42
Chapter 7 ........................................................................................................................... 45
SOCIAL (VULNERABLE COMMUNITY) ASPECTS OF THE MHS.......................... 45
Chapter 8 ........................................................................................................................... 47
CONCLUSIONS AND RECOMMENDATIONS ............................................................ 47
REFERENCES .................................................................................................................. 48
ANNEXES: ....................................................................... Error! Bookmark not defined.
ANNEX I ........................................................................... Error! Bookmark not defined.
QUANTITY ESTIMATE .................................................. Error! Bookmark not defined.
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UNIT RATE OF MATERIALS AND LABOUR ............. Error! Bookmark not defined.
ANNEX II (B) ................................................................... Error! Bookmark not defined.
RATE ANALYSIS ............................................................ Error! Bookmark not defined.
ANNEX III ........................................................................ Error! Bookmark not defined.
COST ESTIMATE ............................................................ Error! Bookmark not defined.
ANNEX IV (A) ................................................................. Error! Bookmark not defined.
INVESTMENT & SOURCES OF FUNDING ................. Error! Bookmark not defined.
ANNEX IV (B) .................................................................. Error! Bookmark not defined.
ANNUAL EXPENDITURES & INCOME ....................... Error! Bookmark not defined.
ANNEX V (A) ................................................................... Error! Bookmark not defined.
FINANCIAL ANALYSIS SPREADSHEET .................... Error! Bookmark not defined.
ANNEX V (B) ................................................................... Error! Bookmark not defined.
ECONOMICAL ANALYSIS ............................................ Error! Bookmark not defined.
ANNEX VI ........................................................................ Error! Bookmark not defined.
T & D VOLTAGE DROP CALACULATION ................. Error! Bookmark not defined.
ANNEX VII ....................................................................... Error! Bookmark not defined.
DATA COLLECTION FORM .......................................... Error! Bookmark not defined.
ANNEX VIII ..................................................................... Error! Bookmark not defined.
HYDROLOGY CALCULATIONS .................................. Error! Bookmark not defined.
ANNEX IX ........................................................................ Error! Bookmark not defined.
PHOTOGRAPHS .............................................................. Error! Bookmark not defined.
ANNEX X ......................................................................... Error! Bookmark not defined.
DRAWINGS ...................................................................... Error! Bookmark not defined.
EXECUTIVE SUMMARY
Lower Puwa Khola MHS Project is located on the left bank of Lower Puwa Khola in Ilaam
VDC-6 of Ilaam District.
After a thorough research conducted by students of civil engineering (07 batch) at nec and
CAROL, the Lower Puwa Khola MHS is found to be feasible, technically, economically
and socially as well. The site for the scheme is in stable region and hence the components of
the scheme do not need any major protection measures.
Lower Puwa Khola MHS is a runoff river type with the source as Puwa Khola. Analysis
shows that the source is perennial and has sufficient discharge even in dry season. The
survey team from Himal Dolakha Hydropower Company (HDHC) measured the discharge
of 204 lps on 11th
May 2009. The lowest flow in the Lower Puwa Khola based on
hydrological calculations for un-gauged MHP River is 201.34 lps. The design discharge is
taken as 154 lps after considering 15% of the lowest flow for downstream water release due
to environmental reasons and 10% of discharge diverted for water losses due to evaporation
/flushing/ seepage.
The gross head and design discharge of the scheme is 30 m and 154 lps respectively
resulting the total power generation of 25 kW with overall efficiency of 55 %. The scheme
will provide electricity to the residents of ward no 4, 5, 6 and 7 of Puwa Khola VDC. The
electricity generated will be utilized mostly for household uses along with some end uses.
Altogether 259 households from the settlement will be benefited from the scheme with
possibility of addition of few more household during implementation. The detailed survey
data shows that there will be end use diversification with the implementation of the project
in years to come. Amongst the different end use possibilities, agro processing mill
consisting of grinder can be installed. Local carpentry is also potentially installed after the
project implementation. Similarly computer, bakery and high vision hall can be run.
The total cost of the project is Rs. 9, 048, 745.00. And the cost per kW is Rs 361, 950.00.
The program would provide Rs 3,562,500.00 as subsidy to the MHS through the District
Energy Fund. The DDC would invest Rs 452, 437.00 at the rate of 5% of the total project
cost and VDC would also invest Rs 904, 875.00 at the rate of 10% of the total project cost.
The community people would mobilize Rs.1, 414,081 through voluntary labor and local
material contribution and Rs. 1, 554, 00.00 as cash contribution. And remaining amount of
Rs 1,160,853.00 will be mobilized from nec, CAROL and HDHC.
ACKNOWLEDGEMENT
The Detailed-feasibility study of Lower Puwa Khola MHS was brought to effect after
awarding the assignment to HDHC, CAROL and civil engineering Students (07
batch) of nec. For the purpose of fulfilling the above task, a well managed survey
team with sufficient equipment was mobilized.
We would like to express our sincerity acknowledgement to District Development
Committee: District Energy & Environment Section (DDC: DEES) Ilaam. Required
drawing, design & cost estimate is prepared according to the information and
guidelines provided by DDC: DEES and present market rate.
The research was a strong initiative of CAROL and civil engineering Students (07
batch) of nec which was supervised by the technical experts of HDHC and
department of civil engineering at nec.
We are deeply grateful to Mr. Bishnu Shakya, REA/REDP Central Region, Prof. Dr.
Hari Krishna Shrestha, Prof. Dr. Deepak Bhttarai, Students of civil engineering (07
batch) from nec, technical experts of Himal Dolakha Hydropower company and Mr
Anil Shrestha (Energy Development Officer, DEES) for their valuable suggestions
and technical support during the preparation and edition of this report. Similarly, we
would like to thank Mrs Kamal Danuwar Community Mobilizer for their tireless
effort, contribution and support in conducting the survey during the field visit.
We would also like to express our sincerity to National Programme Manager and
Senior Rural Energy Development System Advisor for their support and concern to
our effort.
And at last but not the least, we would like to express our acknowledgement to the
local villagers for their support and for delivering valuable information, co-operation
during the site visit and as well as for their hospitality during that period.
We hope that the study will truthfully reflect the villagers lighting problem and their
desire to implement the proposed MHS scheme.
………………………………………..
Project Manager
CAROL
ACRONYMS AND ABBREVIATIONS
ACSR - Aluminum Conductor Steel Reinforced
AEPC - Alternative Energy Promotion Centre
Amp - Ampere
BOQ - Bill of Quantity
CAROL - Centre for Advanced Research and Obligatory Learning
CM - Community Mobilizer
Cu.m - Cubic Meter
DDC - District Development Committee
DDC: DEES - District Development Committee: District Energy &
Environment Section
EIA - Environment Impact Assessment
E/M - Electromechanical
HDHC - Himal Dolakha Hydropower Company
kg - Kilogram
km - Kilometer
kV - Kilovolt
kVA - Kilo Volt Ampere
kW - Kilo Watt
kWh - Kilo Watt Hour
LA - Lightning Arrestor
LPS - Liter per second
LT - Low Tension
MCB - Miniature Circuit Breaker
m - Meter
MHDS - Micro Hydro Demonstration Scheme
MHFG - Micro Hydro Functional Group
MHP - Micro Hydro Project
MHS - Micro Hydropower System
MIP - Medium Irrigation Project
nec - Nepal Engineering College
PCC - Plain Cement Concrete
PCD - Pitch Circle Diameter
PDP - Power Development Project
RCC - Reinforced Cement Concrete
RPM - Revolution per Minute
Rs. - Rupees
Sq. m. - Square Meter
UNDP - United Nations Development Program
VCDP - Vulnerable Community Development Plan
VDC - Village Development Committee
WB - The World Bank
Chapter 1
INTRODUCTION
1.1 Back ground
Renewable energy technologies are being presently promoted in Nepal through several
organizations. Among various organizations Rural Energy Development Programme (REDP) is
one of the major organizations which have been working for the promotion of rural energy
technologies with community mobilization approach. To address the aspects of the decentralized
energy planning and management in Nepal, REDP was initiated in 1996 with the joint effort of
Nepal Government and United Nations Development Program (UNDP). It was initiated with
covering 5 hilly districts in 1996, 10 districts in the 1998 and 15 districts in 2000 of its operation
under the REDP-1 phase. Then REDP-II was functional in 25 districts since 2003 to 2007. Since
2007, the program is in 40 districts with the joint effort of GoN, UNDP and the WB. The
program aims to support the community managed and community-oriented development
initiatives, the implementation of CM process with its six basic principles viz. Organization
development: capital formation: skill enhancement: technology promotion: environment
management and Vulnerable Community’s empowerment.
The Lower Puwa Khola Micro Hydropower System was reported as feasible for detail study,
preliminarily surveyed by DDC: DEES, Ilaam. For detail feasibility study of the Lower Puwa
Khola MHS, a contract was signed between HImal Dolakha Hydropower Company Students of
civil engineering (07 batch) and CAROL on behalf of Lower Puwa Khola MHFG. In accordance
to that contract, this report is the final outcome of the technical and socio economic aspects of
the field survey and interaction during meeting with Lower Puwa Khola MHS functional group
and villagers.
The site was surveyed by Civil Engineers from the contractors from 10th
May to 13th
May 2009.
Professionals as enlisted below visited the site:
Table 1: Manpower
Designation Name of candidate
Project manager: Vaibhav Pandey
Program coordinator: Dinesh Shrestha
Administrator: Kalyan Bikram Neupane
Chief development officer: Baibhav Ojha
Chief technical officer: Ganesh Aryal
Technical officer: Ashish Gautam, Prakriti Pradhan and Ganesh Niraula
Development officer: Bal KrishnaThapa, Sushma Chaudhary
Research analyst: Lokendra Pun
Researchers: Usha Dhami and Paras Mani Bhatta
Finance controller: Shakti Pandey and Ritu Mishra
Public relationship officer: Ranjan Bhatta
Surveyors: Anil Bhatta, Dipak Basnet, Rajeev Shrestha, Nirajan
K.C, Mandeep Shrestha and Nirmal Shrestha
1.2 Objective of the Study
Energy is the basic tool for development activities in any village. From analyzing various
projects, the study shows that most of the project fails due to the improper analysis of the
hydrology, failure in civil structure and also in selection of the appropriate and sufficient electro-
mechanical components. Considering all the issues following objectives have been noted to carry
out the feasibility study of the project.
Hydrological study and flow measurement
Carry out survey for appropriate civil structures, their location and design
Design appropriate and suitable electro-mechanical equipment
Design transmission / distribution lines
Identification of potential load and load center / demand of power
Identification of environment and issues related to water right
Identify any other suitable measures for the futures sustainability
Discuss about the technical and socio- economic aspects of the proposed scheme
1.3 Methodology
The entire work of the Detailed Feasibility Study was carried out in two stage viz fieldwork and
desk (office) work.
1.3.1 Field Work
To start with, the team made a comprehensive reconnaissance survey around the village and
stream bank with the villagers. Consultations were made with the former VDC Chairman, local
teachers, social workers and senior citizens of the locality, who were present in the village during
the time. With the thorough analysis of the situation, detailed measurements were carried out to
locate the best suitable intake, proper canal alignment, stable forebay location and powerhouse.
The detail survey was done with the help of an Anbey Level, GPS, 50 and 5 m tapes. The detail
survey was done within the principles of leveling. The flow measurement was done by salt
dilution method using conductivity meter.
The team carried out detailed engineering survey of intake area, alignment of the headrace
conveyance, forebay and powerhouse locations and exit of the water (tailrace and spillway) with
the help of the members of the Functional Groups. The transmission / distribution line was also
measured with due considerations of having least adverse impact on environment and aesthetics.
The team tried to make the T/D lines shortest possible and the alignment in the stable place. Due
attention was given to have multipurpose use of water, both for irrigation and power generation.
A meeting with the MHS users, the Micro Hydro Functional Group (MHFG) with the help of
Community Mobilizers (CM) was done. Participatory approach was adopted with the direct and
active involvement of the beneficiary community members during the survey of the MHS. Focus
Group Discussions (FGD) were also organized in order to acquire the necessary information,
especially about the socio-economic situation of the area.
1.3.2 Office Work
After the completion of the fieldwork, the team proceeded to analyze the data and work out
designs of various components. All the data and information were carefully analyzed to come to
the final and detailed designs of all the necessary components. The views and suggestions were
duly taken into consideration while carrying out the detail designs of the scheme. The design of
all civil as well as electro-mechanical components was carried out following AEPC/REDP guide
lines and design spread sheets and necessary drawings were prepared. This detailed feasibility
study report is the outcome of the survey conducted.
Chapter 2
GENERAL PROJECT DESCRIPTION
2.1 Locations and Accessibility
The proposed micro-hydro project is in Puwakola VDC; ward no - 6 of Ilaam district. Ilaam
district lies in the Mechi zone, Eastern Development Region of Nepal. It is one of the
mountainous regions with full of slope terrain and cultivated land. The proposed site is situated
at about 1300 m above msl.
The proposed project site lies north of the district head quarter. It takes about 1.5 day walk for
normal and about 3 days for loaded porter to reach the site. The nearest road head is Magar gau
VDC of Ilaam which is about 45 km away from the project site.
2.2 Topography and Geography
The topography and geography condition of the proposed site is found to be fairly stable enough.
The topography of the proposed site lies in the Mahabharat range. Most of the proposed project
area lies in moderate sloppy area with full of slope terrain. No any sign of major landslide and
other instability were found during the site visit.
Geologically the proposed site is predominated by sedimentary and metamorphic rock consisting
of shale, mudstone and limestone. All the structure of the proposed MHS lies on the left bank of
the Banakhu Khola.
The proposed intake and diversion location is at the left bank of Banakhu Khola, and lies in
stable place and possibility of bed scouring is also less. The bank of the Khola is also strong and
stable enough with provision of large boulders for diverting water safely to the canal. The
alignment of the headrace runs through left bank of the Khola. The total length of the headrace
canal is about 1071 meter.
2.3 Climate and Vegetation.
The District lies in the MIP region 5, which is categorized as mountainous catchments. The two
seasons of the year are well marked with typical variations. Due to the moderate altitude the
climate is suitable for growing different types of plant and vegetation. The natural vegetation in
this project area changes with the variation in elevation, soil regime and slope. Agriculture is the
most predominant occupation of the people of that area.
Major land use category of the VDC includes agriculture land, forest and bushes, hard rock and
mountain, rivers and stream banks. The natural vegetation around the project area
consists of bushes, soft wood trees and hard wood trees. Sal wood is also available in the area.
Major agricultural products are rice, maize, wheat, millet, potato etc.
2.4 Project Area and Facilities
The target area covers ward no 4, 5, 6 and 7 of Puwa khola gau VDC. The number of household
in beneficiary area is 259 with the population about 1922. There are four primary schools as well
as one high school. Other facility in the area includes VDC office and Post office.
2.5 Hydrology and Water Right Issues
The source of flow is Puwa Khola, which is a perennial stream. The flow in the stream was
measured by salt dilution method using conductivity meter. And the discharge is found to 204.0
lps. The calculation sheet is given in the annex VIII. The flow was measured on 11th
of May
2009.
The hydrological calculation is based on MIP method. The site lies on the MIP region 5. The
design discharge is taken as 154 lps after considering 15% of the lowest flow for downstream
water release due to environmental reasons and 10% of discharge diverted for water losses due to
evaporation /flushing/ seepage.
Table 2: Mean Monthly Flow, Banakhu Khola (source:HDHC)
Month Flow at River, lps
January 535.44
February 402.69
March 300.91
April 221.26
May 201.34
June 604.03
July 2480.30
August 3084.34
September 2212.58
October 1442.60
November 1006.72
December 736.79
Annual Average 1102.42
(Note: The Hydrological Data was measured by the technical experts of HDHC)
There are no water right conflicts in the area for power generation. The water needed for the
plant can be diverted without any conflicts. There is sufficient discharge in the stream even in the
driest month. The matter of water use was thoroughly discussed amongst the community people.
The MHFG is in the process of registering the MHS in the District Water Resource Committee
for obtaining the water use right legally.
2.6 Energy Consumption Pattern
2.6.1 Present Situation
Firewood is being used extensively as the major source of energy and it is being largely
consumed for residential purposes. Consequently, massive encroachment of forests has taken
place due to fuel wood collection. Kerosene is mainly used for lighting. The general energy use
pattern of this settlement (community) has been summarized in the following table.
Table 3: Energy Source and Use (source: HDHC)
Description Unit Rate/
Unit
Qty. (per HH
per month)
Average Monthly Use Remarks
Cooking % Lighting %
Fuel Wood
Per HH Bhari 50
~5-6 Bhari
(280 kg) - 100 - -
Free of cost normally,
pressure on forest is
maximum
Kerosene Litre 100 3.5 - - 3 86
Dry Cell
Batteries Pair 50 3 - - 1.0 33
67 % for radio,
cassette.
2.6.2 Domestic Demand of Electricity
The study shows that almost the entire village has minimum 2 to maximum 4 rooms. That means
an average demand of electricity is between 2 to 4 bulbs, which will be enough. Considering the
average demand and the production of electricity about 96 watt per household is proposed for the
electricity, which is just sufficient to illuminate three to four incandescent bulbs of 25 watt.
Furthermore, the technological advancement in the area of
efficient lighting (CFLs) would solve the future demand of peak hour lighting. Study shows that
the peak demand of electricity has been coming from household lighting in morning and in the
evening. In addition to household lighting, for the use of daytime energy there is possibility to
promote different kinds of end-uses by providing technical training and other kinds of supports.
2.6.3 Potential End Uses
Electrical energy is one of the least cost options for income generating activities in the remote
rural area. The proposed MHS is designed to produce 25 kW, which can only meet
the peak demand for lighting, so the end-use application will be done mostly during daytime.
I Agro-processing
Based on the survey on agriculture production and the assessment of quantities that could be
processed in the beneficiary area it has been found that there is the potentiality for the
establishment of an agro-processing mill. At present most of the local people are using the
traditional way of agro-processing which is time consuming and also needs more strength. As
per the survey and discussion with the local people and MHFG members, the MHFG seems
interested to operate the agro-processing mill itself. Based on the survey, there seems a good
potentiality for an agro-processing mill. An agro-processing of 8 kW power is proposed running
for 10 hours a day during day time.
II Rural Carpentry
The area has very good vegetation of forest with different types of trees. So it is very much
possible to run a rural carpentry for wood works. There are skilled carpenters in the project area,
who make furniture by using manual tools to meet local demand. With the establishment of the
industry, the quality of the products would be enhanced, thus would also increase their demand.
As per discussion with the community people, at least one such workshop would be established
in the community. The proposed rural carpentry will consume 3 kW power for 10 hours a day
during day time.
III Computer
The micro hydro power system covered the primary schools as well as high school, So the power
to be utilized in school and for computer and other works in school which would be consume 2
kW running for 8 hours a day during day time.
IV Bakery
According to the local people of surveyed area bakery will be a good endues in this project and
the micro hydropower system covers the local bazaar of the VDC. So there is a possibility of
bakery which would consume 5 kW for 6 hours a day during night time.
V High Vision Hall
According to the young people of the surveyed area, high vision hall will be a best endues and
they want the high vision with them. The high vision hall consumes 3 kW running for 6 hours
per a day during morning time.
Table 4: Possible End Uses (source: HDHC)
S.N. Type of Business Location
Ward no.
Power
(kW)
Operating
Hours
Operating
Days
/Month
Operating
Months
/Year
Total
Energy
Consump
(kwh)
Tariff/kWh Remarks
1 Agro-processing Village 8 10 26 12 24960 8 One
unit at a
time 2 Rural Carpentry Village 3 10 26 12 9360 8
3 Computer
Centre Village 2 8 26 12 4992 8
4 Bakery Village 5 6 25 12 9000 8
5 High vison Hall Village 3 6 24 12 5184 8
Total: 21 53496
Above mentioned end uses could be established with DEES’s support for end use promotions.
The DEES Support Rs 250, 000.00 (Rs. 10,000 per kW of installed capacity of the MHS, Rs.
250,000 maximum) for end-use promotions that will be provided to the concerned MHFG as
grant and the respective MHFG will provide the support to interested entrepreneur in the form of
soft loans. The MHFG will provide only 50% (maximum) of total investment cost for the
establishment of the enterprises to the respective entrepreneurs. The entrepreneurs themselves
will mobilize additional amount required. The DDC: DEES helps the community people for
identification of the potential end-uses.
2.6.4 Expected Load Demand Pattern
The expected load demand pattern (Watt) over 24 hours period has been provided in the
following table.
Table 5: Expected Load Demand Pattern (source: HDHC)
Load 4.00 am –
7.00 am
7.00 am –
10.00 am
10.00 am –
12.00 pm
12.00 pm
–4.00 pm
4.00 pm –
6.00 pm
6.00 pm –
11.00 pm
11.00 pm
– 4.00 am Remarks
HH lightening 25 25 9 hrs/day
Agro-
processing 8 kW 8 kW
10 hrs/day, 312
days/year operation
Rural carpentry 3 kW 3 kW
10 hrs/day, 312
days/year operation
Computer 2 kW 8 hrs/day, 312 days/year
operation
Bakery 5 kW 5 hrs/day, 300 days/year
operation
High Vision
Hall 3 kW
6 hrs/day, 288 days/year
operation
Total 25 kW 18kW 10kW 11 kW 11 kW 25 kW 5 kW
Note: The agro-processing units and other end use should be run at different times during the day without
overloading the plant.
2.7 Socioeconomic Condition and Affordability
The detail socio-economic status of the project area will be discussed in the Volume III of the
Detail Project Report as Vulnerable Community Development Study Report (VCDSR) to be
prepared by the DDC: DEES, however some relevant information about the socio-economic
condition of the proposed project area has been discussed herein.
There are 259 households with about 1922 households’ members to be benefited from this
project. The main occupation of the people of the village is agriculture and livestock. The
average landholding per household in the village is about 15 ropanis. Main agricultural products
are rice, maize and millet, oilseeds and potatoes. The economic status of the villagers is
considerably fair.
There is at least a literate in each household. There are facilities of schools at a distance of 2 km
from powerhouse. The status and interest of the women in the area is good and having high
levels of enthusiasm for the development of project, the MHS is highly viable for the area.
The socio-economic survey of the impact area indicates that about almost all the beneficiaries
HHs are capable to pay for the electricity. The main source of income of the local people is
agriculture-products, livestock.
2.8 Status of DEES Community Mobilization Process
District Development Committee: District Energy and Environment (DDC: DEES), Ilaam has
been established for the development programme of the local villagers. The main activities of
this mobilization are to make the local people aware of the capacity building , natural resource
management, Skill enhancement, Vulnerable community development, Capital formation and
their application with the local technology with the participation of the local people.
The DDC: DEES has started the CM process in the area since Jan 2010. DDC: DEES is
conducting the community mobilization as per the six principles of community mobilization. All
together 28 Cos are formed which include 14 male and 14 female Cos. These COs will be
carrying out various socio-economic activities in the community, especially through the
mobilization of local resources as well as resources from different agencies. The MHFG is
registered at the District Water Resources Committee.
2.9 Plant Size and Power Requirements
Before effective design of hydropower project, one must consider the coordinated use of the
stream water for power generation as well as other local purposes. The site for the powerhouse is
selected in such a way that the water from the tailrace can safely be discharge to the parent
stream. No serious water right issues have been observed during the survey.
Power (P) = x Qmin x Hg x g
= 0.55*0.154*30*9.81
= 25 kW
Where,
Q = Discharge in lps- 0.154 m3/sec
H = Gross Head in m- 30 m
= Overall Efficiency of System (55%)
g = Acceleration due to gravity, 9.81 m3/sec
All the project structures are proposed to be constructed on the left bank of Puwa Khola. The tail
water will be safely discharged to river. The length of the tailrace canal is 20 m.
Chapter 3
TECHNICAL ASPECTS OF THE MHS
3.1 Civil Components
3.1.1 Intake Structure and Diversion
The intake structure is proposed at left bank of Lower Puwa Khola and is located at Puwa Khola
VDC, ward no 6. In consideration of the flow of the river, temporary type diversion structure of
gabion weir of approximate height of 1 m and 10 meter long is proposed to be built across the
river. The proposed temporary weir is of low cost and can be easily maintained if it is damaged
by the flood during rainy seasons. The respective position of weirs and other fundamental
components of Lower Puwa Khola MHS are shown in drawing no 1 and 2.
The geological condition of the intake site is appropriate for diverting water into the canal. An
orifice type of side intake is proposed. The orifice is designed to drag 171 lps of discharge and
the size of orifice is 0.2 x 0.6 m. A coarse trash rack is also proposed. Details of the head works
are given in drawing no 2.
3.1.2 Headrace Conveyance
Due to geology and topography of the site, stone masonry canal in 1:4 cement mortars with 1:4
cement plasters is proposed. The headrace pipe passes through left bank of the river. The details
of the headrace profile and section are shown in the annex, drawing no 3.
Stone masonry canal, W-0.5 m, H-0.3 m, FB-0.15 m, Length- 1015 m
3.1.3 Crossing
There is crossing in the alignment of headrace. So a crossing structure of RCC in 1:2:4 is
proposed and the typical details of crossing structure is given in the drawing no 5.
Crossing structure : CH-0+567.0 to CH-0+601.0 m & CH-0+602.5 to CH-0+624.5 m
: W-0.5 m, H-0.3 m, B-0.1 m, Length-56 m
3.1.4 Desilting Basin
Considering the flow and geological condition a desilting basin is proposed at 35 m from the
intake. The desilting basin is designed considering 2 kg/m3 sediment concentration in order to
settle particles larger than 3 mm. The internal size of the basin is proposed of 8 x 1.75 x 1.1m
length, breadth and depth (avg) respectively. The basin is designed to flush at every 12 hours
manually. A spillway of 2.5 m and flushing gate of M.S is proposed. The flushing canal is about
10 m long. The structure is proposed to be made of stone masonry with 1:4 c/m with inner
surface plaster with 1:4 c/s. The detail of the desilting basin is given in the drawing no 4.
3.1.3 Forebay cum Settling Basin
Considering the flow and geological condition a forebay cum settling basin type of structure is
proposed. It is located at the end of headrace canal. The basin is designed for settling particles as
well as for forebay purpose. The settling basin is designed considering 1 kg/cm3 sediment
concentration in order to settle particles larger than 0.3 mm. The internal size of the basin is
proposed of 8.0 x 1.75 x 1.1(avg) m. The basin is designed to flush at every 12 hours and
manually. A flushing gate and about 43 meter of canal is proposed for flushing sediments as well
as over flow is proposed for flushing sediments as well as over flow. A fine trash rack is
provided in order to prevent any debris
entering in the turbine through penstock.
The second part is the forebay with 1.75x1.5x1.6 m with internal size. The structure is proposed
to be made of stone masonry with 1:4 c/m with inner surface plaster with 1:4 c/s. A fine trash
rack is provided in order to prevent any debris entering in the turbine through penstock. The
details of the basin structure are given in the annex, drawing no 6.
3.1.5 Anchor Block & Support Piers
The anchor blocks and the support piers are designed to support the penstock pipe. Anchor
blocks are proposed to be designed at every vertical bend and at 30 meter spacing at the straight
section. Altogether 4 numbers of anchor blocks are required along the penstock pipe. Each
anchor block is constructed of 1:3:6 PCC with 40% plum concrete. Support piers are designed at
about 3.5 to 4 meter spacing. Altogether 14 nos. of supports piers are designed. Support piers are
constructed of stone masonry in 1:4 c/s mortars. These blocks are designed considering the
stability, bearing capacity of soil, thrust pressure and water pressure. The details of the blocks are
given in the annex X, drawing no 9 & 10.
3.1.6 Powerhouse, Machine Foundation & Tailrace
The powerhouse is proposed to be located on the uncultivated forest land. It is located in flatter
portion of land having sufficient space for building the house. The powerhouse is sufficiently
above the flood level. The powerhouse consists of internal dimensions of 5 m lengths, 4 m
widths and 2.7m heights. Similarly operator room of internal dimension 3m lengths, 2.5 m
widths and 2.7 m heights. The building is to be built of locally available stone masonry walls
with mud mortar. The roof is to be covered with CGI sheets with wooden rafters and purlins. The
details of the power house are given in the drawing no 11.
Machine foundation has been designed as required to be in safer side against over turning,
bearing pressure and sliding considering the forces due to maximum expected surge head, weight
of turbine and weight of generator. A minimum of 20 mm diameter, 700 mm long anchor bars
are to be used to fix base frame to the machine foundation. 10 mm dia Tor steel bars are to be
used for reinforcement. Maximum spacing to be provided is 150 mm in turbine pit and 300 mm
on other faces. Lap length will be 400 mm on other faces. Lap length shall be 400 mm min.
Minimum reinforcement cover shall be 50 mm. Structural concrete shall be 1:2:4 mix. 10 mm
width of sand and gravel has been placed at periphery of machine foundation down to depth of
powerhouse floor.
A stone masonry tailrace canal is proposed from the powerhouse after the turbine to discharge
the water back into the stream. The length of the tailrace canal is about 20 m. It will be of about
50 cm width and 30 cm depth in dimensions. The details of the machine foundation and tailrace
canal are given in the annex X, drawing 12.
3.2 Electro-mechanical Works:
Most of the electromechanical components would be manufactured / fabricated in Nepal. The
topic gives a brief description about design and selection of the components proposed for the
project.
3.2.1 Trash rack
A coarse trash rack is proposed at the intake. The proposed size of the coarse trash rack is 0.6 m
x 0.6 m. The trash rack is proposed of 5 x 40 mm steel plate with 50 mm c/c spacing of the bars
and inclined at 1:3.
Similarly a fine trash rack is proposed at the forebay. The proposed size of the fine trash rack is
0.9 m x 1.75 m. The trash rack is proposed of 5 x 40 mm steel plates with 25 mm c/c spacing of
the bars. The details of the trash racks are given in the drawing no 8.
3.2.2 Penstock layout & Expansion Joints
According to the available head, a mild steel pipe of 280 mm MS ID is proposed. The overall
length of the penstock is 66 meter and 3 mm thickness.
The M.S pipes are proposed of about 2.5 meters in length, rolled/ welded having flange at each
end connected together. Flange should have 12 mm thickness and properly welded together with
the pipe. The details of penstock profile are given in the drawing no 7.
Expansion joints are also designed for the movement of the pipes during the temperature
variation. The thickness and size of the joints are decided on the basis of the temperature
variation of the scheme. The maximum temperature of the site is considered 30 degree and
minimum as 1 degree. Altogether 4 nos of expansions joints are enough. An air vent pipe of 50
mm diameter is proposed at the starting point of the penstock pipe.
3.2.3 Turbine
For the available gross head of 30 meter and the design discharge 154 lps, a Cross flow turbine has
been proposed. Though the each manufacturer has their own design and product specification, we
have recommended the following major specifications of the turbine. Detail design will be as per
the manufacturer at the time of manufacturing with required output. Specification of the
proposed turbine is presented below.
Type Cross flow turbine (T15)
Valve Butterfly (Gear Operated)
RPM 750
Rated capacity 38 kW
Efficiency 70%
Discharge 154 lps
The turbine is proposed to be equipped with manually operated flow regulating valve. The bearings
are rated to withstand runway speed of the turbine. The bearings are recommended such that they
take into account the static load exerted on it due to the drive system.
3.2.4 Generator
(Note: all the electrical works is implemented by the technical team of HDHPC)
To convert the mechanical power available at the turbine shaft, synchronous, 3-phase brushless
generator is proposed for the scheme. The generator size and type is compatible with the electronic
regulation system. The specification of the generator is as follow.
Type and rating 3 Phase, brush less synchronous Generator
Synchronous, 50 kVA
Frequency 50 Hz
Voltage 400 Volts, 3- phase
Pole 4 pole
Efficiency 86%
Power Factor 0.8 lagging
Speed 1500 rpm
Over speed 180 % continuously
Connection Star
AVR Mounted internally, voltage regulation + or – 5%
With under/over voltage and under/over frequency
protection
3.2.5 Drive System
The drive system transfers the mechanical energy from the Turbine shaft to the generator rotor at
required speed. Here, the speed of the turbine is 750 rpm and the generator rated speed is 1500
rpm. So, the gear ratio should be 1:2. For this, habasit belt is recommended. The belt could get
loose after some period of operation. A sliding mechanism should be incorporated in the
generator base to tight the belt.
3.2.6 Control System
For matching variable behavior of the load an Electric Load Controller (ELC) is to be used to
safe guard in the system. 25 kW capacity ELC is proposed to be used along with the ballast
heater of 30 kW capacities. Incorporation of the Load controller with generator helps to maintain
the generator speed at constant level. The ELC diverts the excess power generated to the ballast
heater in the ballast tank. The box enclosing ELC also contains meter showing current, voltage
and frequency output of the generator, kW meter and one energy meter (kWh meter).
Similarly, the protection system should also include adequately sized MCCBs to protect against
overload as well as short circuits without damaging the generator and other control equipment.
Table 6: MCCB
MCCB on the generator side MCCB after ELC
No. of poles 4 pole with switched neutral 34pole with switched neutral
Operating voltage 400 V 400 V
Rated Current at 415V 80 A 63 A
Breaking Capacity 10kA 10kA
Frame Size GS GS
Similarly for the protection in the transformer following MCCB are proposed
MCCB for step up transformer: 32 Amp
MCCB for step down transformer: 32 Amp
3.2.7 Powerhouse Cabling
Armored copper 35 mm² power cables are proposed to connect generator, panel and dummy load
inside the powerhouse. Similarly, 50 mm2, 4- core armored aluminum cable is proposed for the
connection between the main switch and the first pole. Cable ratings are proposed such that they
can carry at least 150 percent of the required maximum current. At least 3 light points with
incandescent lamps and one power point with necessary switches and fuses are proposed for the
powerhouse use. The details of power single line diagram are given in the annex X, drawing no
13.
3.2.8 Transmission / Distribution Network
(Note: T/D network would be completely managed by HDHC)
Since the transmission line is long, so a 25 kVA setup transformer (star/delta) is proposed at power
house and 25 kVA set down transformer (delta/star) is proposed at different cluster. The
transmission and distribution network consists of poles, transformers, conductors and insulators.
The generated power is proposed to be transmitted and distributed to the load centers via 3 phases,
11 kV High-Tension (H. T.), 0.4 kV Low-Tension (L. T.) overhead lines and single phase 230V
overhead lines. The design and construction has been simplified with an overview to reducing the
project cost by using locally available resources as much as possible. The transmission and
distribution lines are designed considering 10% voltage drop. The total single line length is 19.52
kilometer.
ACSR Conductor for transmission and Distribution purpose
1. ACSR Squirrel 60326 m
2. ACSR Weasel 11950 m
3. ACSR Rabbit 4721 m
Poles
9 meter Tubular Swage Poles has been proposed for the H.T line and 7 meter 8 m wooden poles
are proposed for the L. T for single phase and three phase lines respectively. The average pole-
to-pole distance is kept at 35 m in case of wooden poles and 50 m in case of steel poles.
Table 7: Specification of Wooden poles:
Specifications Wooden poles for 3
phase L.T.
Wooden Poles for 1
phase l.T
Tubular poles for
H.T. (Steel)
No. of Poles 116 260 125 Spacing 35 m 35 m 50 m Pole Height 8 m 7 m 9 m Min. ground
clearance 5 m 4.5 m 5.5 m
Conductor spacing 30 cm (vertical) 30 cm (vertical) *See note below Min. top diameter 140 mm 125 mm 5 inch
* NOTE: L.T. lines are placed vertically. The details of diagram are given in the drawing.
For L.T. lines, the conductor spacing is 30 cm vertically.
Stay set
Stay sets are required at every bends, first pole and last pole of the transmission and distribution
and in steep slope upward. Generally, for safety, every 5th pole is to be stayed on both sides even
if the poles are in straight line, so as to provide protection from storms according to the standard
of REDP. The stay set consists of MS rod, stay bow, stay insulator, turn buckle and anchor plate
of 3 mm. About 101 stay wires are used for support of the poles depending upon the
geographical condition of the site.
Insulators, D-iron Clamp
To lay the wire in poles insulators are used. Shackle type insulators are used for the L.T. lines of
both 3 phase and 1 phase. Total 1430 numbers of shackle insulators are proposed. Details of
transmission and distribution are also given in the drawing no 14.
Table 8: Insulators Type:
S.N. Size Dimension Numbers
1 Small 55 mm*55 mm 1070 units
2 Medium 75mm*90mm 360 units
*Each set of Shackle type insulators is provided with D clamp, nuts and bolts.
Similarly for H T lines
Pin Type Insulators: 383 units.
Disc Type Insulators: 30 units.
D.O. fuses with operating rod are proposed for the protection of transformers.
3.2.9 Earthings & Lightening Arrestors
All exposed metal parts of the generating equipments and generator neutral terminal are
proposed to be earthed separately in a proper manner. Similarly, each lighting arrestors installed
should be separately earthed. Apart from earth continuity from the powerhouse through the cable
armored up to the main distribution board, each distribution box is proposed to be properly
connected to earth. It is proposed to do the earthing work with the same conductor and plate.
Three different earth pits at the Power House for
One for neutral earthling.
Equipment Ear thing.
Lighting Arrester Ear thing.
The positioning of the Farthing system is shown in details in the transmission/Distribution
diagram in the Annex
Specifications:
600mm*600mm*3mm copper plate. Numbers: 47
Ear thing wire: 8 SWG copper wires
GI pipe for the protection of Earth wire is also recommended. The copper earthing plate should
be buried in a trench of minimum depth 2.5 m.
Similarly lightening arrestors of 11 kV and 0.5 kV is proposed. 21 and 68 nos respectively of
L.As are proposed. The details location of the LAs and earthing are shown in the drawing no 14.
3.2.10 Consumer Protection & Service Wire
All consumer connections should be protected through MCBs of appropriate rating to suit
consumer’s peak wattage subscription. These are to be installed in enamel painted, lockable
metal enclosures. Adequate wiring and terminal connections will be provided for neat and
efficient service cable connection. Total 259 no. of 0.5A MCB are proposed for the scheme but
the costs is not included in the estimate as it is assume to be bought by the consumers
themselves. Similarly service wire of 6 sq.cm is proposed at the rate of 20 m per H/H.
Chapter 4
FINANCIAL AND ECONOMICAL ASPECTS OF THE MHS
4.1 Quantity Estimate and Rate Analysis
Rate analysis for the construction activities of the MHS has been done using Nepal Government
norms. A district rate, published by DDC at Ilaam has been also considered while analyzing the
rates. Since the project is in far remote place and will be constructed by the local people using
available local materials, so the local available materials rates and local labor rates are also
consider in the rate analysis.
After the detailed engineering designed was complete than the quantity and volume of work were
worked. All necessary drawing has been prepared, which are enclosed in the annex X. Item wise
breakdown of the work has been made keeping the importance and needs. The details of rate
analysis and quantities of work are presented in the annex of this report.
4.2 Detailed Cost Estimate
The total cost estimation of the project has been carried out from the costing of mechanical
works, electrical works, civil works, tools, spare parts, transportation cost, and installation,
testing commissioning and contingency. The total project cost is Rs. 9,048,746.00. The cost per
kW is Rs. 361, 950.00.
4.2.1 Cost of Civil Components
The cost of civil components of the project is Rs 2, 051, 942.0. It is 22.68% of the total project cost.
The Cost of estimation for civil structures include cost of intake structure, power canal, forebay,
civil work for penstock, anchor block, saddle support (pier), power house, tail race etc.
Table 9: Cost Estimate of Civil Works
S.N. Description of works Amount
(NRs.) Local
(NRS.) Non Local (NRs.)
1 Intake and Diversion 52166 14242 37924
2 Desilting basin 70773 34783 35990
3 Headrace Conveyance 1524498 686351 838147
4 Forebay cum desilting basin &
Spillway 152851 66759 86091
5 Penstock Support & Anchor Blocks 59908 23850 36058
6 Power House 141522 88365 53157
7 Machine Foundation & Tailrace canal 50224 19284 30940
Total 2051942 933634 1118308
4.2.2 Cost of Electro Mechanical Components (source: HDHC)
The Electro mechanical component cost of the project is Rs 5, 183, 102.0. It is 57.28% of the total
project cost. The costs are based upon quotation from the suppliers.
Table 10: Cost Estimate of E/M Works
S.N. Description of works Amount
(NRs.) Local
(NRS.) Non Local (NRs.)
1 Trash rack and flushing 38475 0 38475
2 Turbine, Drive System & Accessories 340700 0 340700
3 Penstock and Accessories 333500 0 333500
4 Generator & Accessories 195000 0 195000
5
Load Controller, Ballast & 759200 0 759200
Main Switch ( Protection System)
6 Transmission/Distribution Line 2083427 0 2083427
7 Poles 1112800 112800 1000000
8 Transformer 320000 0 320000
Grand Total 5183102 112800 5070302
4.2.3 Other Costs
Apart from the civil and electromechanical costs, costs of various other components are costs of
tools and spare parts, transportation costs and installation and testing/commissioning costs. These
costs add up to Rs. 613, 647.00. Whereas, 5% contingencies of TPC is Rs. 363, 665.00
Table 11: Cost of Others
S.N Particular Amount(Rs.) Local (Rs.) Non-Local (Rs.)
1 Tools 16000 0 16000
2 Spare parts 20000 0 20000
3 Transportation and Packing 427647 367647 60000
4 Installation & Commissioning 150000 0 150000
4.3 Summary of Cost
The total cost of project consists of civil costs, electro mechanical costs, transportation costs,
installation costs, and testing/commissioning costs, costs of tools and spare parts and contingencies.
The summary of costs of the MHS is presented below;
Table 12: Summary of Projects Costs
S.N. Description of works Amount
(NRs.) Local
(NRS.) Non Local
(NRs.) % of Total
cost
1 Civil works 2,051,942 933,634 1,118,308 22.68
2 Mechanical works 712,675 0 712,675 7.88
3 Electrical works 4,470,427 112,800 4,357,627 49.40
4 Tools 16,000 0 16,000 0.18
5 Spare parts 20,000 0 20,000 0.22
6 Transportation 427,647 367,647 60,000 4.73
7 Installation &
Commissioning 150,000 0 150,000 1.66
Sub Total 7848691 1414081 6434610 86.74
Vat (13% of non local costs) 836,499 0 836,499 9.24
Sub Total 8,685,190 1,414,081 7,271,109 95.98
Contingencies 5% of TPC 0 0 363,555 4.02
Total Project Cost Rs. 9,048,746 1,414,081 7,634,665 100.00
Power output kW 25
Cost per kW Rs. 361,950
Total Beneficial HH 259
Cost per HH 34,937
Non Local Cost per kW 305,387
4.4 Financial Mix
For the implementation of this MHS, major source of finance will be provided by REDP/AEPC
as a subsidy. The source of financial will be mobilized from as shown below.
Table 13: Mobilization of Resources
S.N. Sources Amount (Rs) Share (%) Remarks
1 GoN / Subsidy 3562500 39.85 (@125,000 per kW+ 500 x 35 x per
kW)
2 DDC Investment 452437 5.0 5 % of TPC
3 VDC Investment 904875 10.0 10 % of TPC
4 nec, CAROL and
individual students
investment 513353 5.67
5 Cash Collection
from community 2201500 24.33 @ Rs.8500/HH (Total 259 HH)
6 Community Equity 1414081 15.63 Local Costs
Total Source of Finance 9048746 100.00
4.5 Annual Expenses
The total annual expenses are tabulated below.
4.6 Annual Incomes
The MHS FG will have to determine the tariff rate for the MHS, facilitated by the DDC: DEES.
Based on the investment required, annual expenses and other necessary provisions, tariff rate has
been proposed herewith but this might have to be revised regularly to incorporate the changes in
price and other relevant factors over time. Considering these, fixed tariff rate of Rs. 2 per watt
per month for domestic lighting and Rs. 8 per kWh for end-use activities have been proposed for
this scheme.
Table 16: Annual Income
Probable Business:
S.N. Type of Business Power
(kW)
Operating
Hours
Operating
Days
/Month
Operating
Months
/Year
Total
Energy
Consump
(kwh)
Tariff/kWh Total
Income Remarks
1 Agro-processing 8 10 26 12 24960 8 199680 One unit at
a time 2 Rural Carpentry 3 10 26 12 9360 8 74880
3 Computer Centre 2 8 26 12 4992 8 39936
4 Bakery 5 6 25 12 9000 8 72000
5 High vison Hall 3 6 24 12 5184 8 41472
Total: 21 53496 427968
427968
Household Lighting:
S.N. No of Households Power
(kW)
Operating
Hours
Operating
Days
/Month
Operating
Months
/Year
Total
Energy
Consump
(kWh)
Tariff Total
Income Remarks
1 259 25 9 28 12 75600 2 600000
Total Electrical Income from Household Lighting(Ilit) =
600000
Total Electrical Income (Annual) Ie : (Iind+Ilit) =
1027968
Annual Energy Production Potential (kWh) =
201600
(336 days operation / year)
Productive End-uses (%) =
27
4.7 Financial Analysis
This section of the report presents the brief cost analysis of the proposed scheme. The cost
evaluation is undertaken to assess the economic viability (soundness) of the project. This will be
useful to judge the project from the developer's and financial institution's perspective. The
following parameters are considered for the cost analysis of the project.
- Capital Investment
- Construction Period
- Economic Life of the Project
- Running Cost Involved
- Revenues from the Project
The financial analysis of the scheme focuses on the source of funding for the project, annual
income, annual loss, and financial indicator of the project such as Net Present Value, Benefit
Cost Ratio, and Internal Rate of Return etc. The Financial Analysis Sheet has been attached in
Annex V (A). Main financial indicators are presented below.
NPV at 10% Rate = Rs. 1,120,955.00
IRR = 15 %
Pay Back Period = 6.06
Benefit Cost Ratio = 1.17
The depreciation of the scheme is calculated by straight-line depreciation method with subsidy
deducted (for project life of 15 years) will be Rs. 365, 750.00. The analysis has been done
considering total project cost deducting the subsidy amount to be the total investment amount.
Table 17: Annuity Payment Schedule
S.No. Description Amount, Rs Remarks
1 Annuity Payment (Rs) 322032 12 % annual Interest & loan maturity period is 5 years
2 Depreciation (Rs) 365750 Straight line Calculation, (Total project cost - Subsidy) / 15
3 Recuring Annual Cost (Rs) 327862
4 Total Annual Cost (Rs) 1015644
5 Net Annual Profit (Rs) 12324 Total income - Total annual cost
6 Dividend to DDC (Rs) 616 5 % dividend as % of investment
7 Dividend to VDC (Rs) 1232 10 % dividend as % of investment
4.8 Economic Analysis
The economic analysis is carried out to assess the economic efficiency of the resources invested
in a project. As the scope of the economic benefit encompasses the welfare effect of all the
members of the society, the definition of cost and benefit is a bit different from the financial
analysis. The assessment of the efficiency can be done through the changes in the welfare of the
society, on the basis of costs and benefits brought about by the systems (MHS) to the society.
The present analysis is being carried out in that tune to assess the efficiency of the investment
made in the Lower Puwa Khola MHS.
4.8.1 Investment Cost
The total investment cost has been calculated after deducting all the applicable taxes from the
total project cost. In our case, no any taxes are charged so the total investment cost is calculated
as shown below.
Investment Cost = Total Project Cost - taxes/Duties
= Rs. 9, 048, 746.00 – 836, 499.00
= Rs. 8, 212, 247.00
4.8.2 Operation and Maintenance Cost
In terms of the cost for repair and maintenance, the usual practice is to take 3 % of the total
project cost.
Operation and Maintenance Cost = Repair and Maintenance Cost
= Rs. 271,462. 00
4.8.3 Economic Benefit
The net benefit to all the individuals in the community brought about by a Micro Hydro scheme
is the economic benefit of the system. The net benefit to an individual can be accessed through
the aggregation of all the benefits and other costs incurred, apart from the cost of the system. As
the scope of economic benefit is broad, some assumptions have been made and only quantifiable
benefits are considered in order to make the assessment of the economic benefits of the proposed
MHS simple and precise. The economic benefits have been assessed based on the avoided cost of
diesel in case of supply for productive end uses, and the avoided cost of kerosene uses in case of
supply to households for lighting. Furthermore, the avoided cost of the dry cell battery use for
household purposes has also been taken into account.
Annual Saving from Kerosene Replacement
With the operation of the MH scheme, it is assumed that the electricity would replace nearly
86% of the kerosene being consumed. In this way average monthly kerosene consumption for
lighting would reduce from 3.5 lit/HH to 0.5 lit/HH, i.e. saving 3 lit/HH/month. Annual saving
from kerosene replacement
= Rs. 100/lit x 3 lit/HH x 259 HHs x 12 months
= Rs 932, 400.00
Annual Saving from Diesel Replacement
If it were assumed that a 10 HP diesel agro-processing mill will promoted in absence of the MHS
which would consume 1 lit/hr diesel, then amount of diesel that would be replaced by the
electrically driven agro-processing mill after promotion of the MHS would be around 1 lit/hr x 5
hrs/day x 330 days/year i.e. 1,200 liters/year. Thus annual saving due to diesel replacement
would be Rs. 110 x 2, 400 (at prevailing diesel rate of Rs. 110/lit) i.e. Rs. 1815, 000.00.
Annual Saving from Dry Cell Battery Replacement
Average battery consumption of the MHS area is 3.0 pair/HH/month (1.0 pair for lighting and 2
pair for radio, cassette etc.), the total battery replaced by the electricity would be 2.5
pair/HH/month. Annual saving from Cell replacement
= Rs. 50 x 2.5 pair/HH/month x 259 HHs x 12 months
= Rs. 388, 500.00
Therefore, total annual saving from kerosene, diesel and battery replacements
= Rs. 1, 502, 400.00
4.8.4 Economical Indicators
With the calculation and assumptions mentioned in preceding topics, the economic analysis has
been carried out. The economic analysis spreadsheet is given in Annex VI (B).
NPV at 10% Rate = Rs. 453222.00
IRR = 11 %
Pay Back Period = 7.16
Chapter 5
OPERATION AND MANAGEMENT ASPECTS OF THE MHS
The success of a project depends on its operation and management. As the project itself is the
property of the local people, so it is the responsibility of the local people to look after the project.
Considerable benefits can be reaped from MHS if it is operated and managed properly. Neither
the entrepreneurs nor the consumers will gain from the MHS that is not operated and managed
properly. Prospective MHS entrepreneurs should bear in mind the aspects of operation and
management i.e. management of daily operations, availability of operators and resource
management.
5.1 Institutions
The ownership type of the MHS is community owned. Community Mobilization works is being
carried out by DDC: DEES, Ilaam based on the Community mobilization’s fundamental
principles.
The MHFG will be fully responsible for the operation and management of the MHS with
guidance from DDC: DEES. It is mandatory for the MHFG to create a Community Energy Fund
(CEF) for the mobilization of the resource from different partner organizations. The DDC: DEES
will release funds from the District Energy Fund (DEF) as grants to the CEF. And the CEF will
release funds to pay the electro-mechanical equipment and for materials for civil works and
others on approval of the MHFG and DDC: DEES. The management structure of the MHS will
be is as follows.
Lower Puwa Khola Micro Hydro Functional
Group
Micro Hydro Plant Manager Micro Hydro Plant Operator
Lower Puwa Khola Micro Hydro Management
Committee
5.2 Skilled Manpower
Selection of the micro hydro operator and manager will be undertaken by the MHFG based on
technical aptitude and commitment to the community. The selected persons will make written
commitments to the community, that they will provide their services on along-term basis. The
manger and operators will assist the community mobilization works, scheme operation and
management after the training. Training will be provided to them by DEES. The manager and
operator will be responsible for the daily operation and management of the MHS.
Similarly local man power like unskilled labour, mason and carpenter are easily available at the
project area. Mostly they are within the MHS community.
5.3 Follow-up, Supervision and Reporting
The monitoring will be carried out regularly based on information collection, decision making
from follow-up and reports. The periodic reports and information received at different places and
different intervals will be reviewed and evaluated. The regular weekly, monthly and mass
meeting of COs, MHWC and MHFG ensure the transparency and consensus decisions among the
community members in participatory manner.
The MHFG will be responsible for procurement and construction of the system. It is mandatory
to hire a civil overseer to set out and supervise the construction of the work. Construction
progress records (including volunteer labor provided by each household) will be maintained by
the overseer, and release of fund for payment of the suppliers will be made only after DDC:
DEES have verified that quantities are correct, and construction quality is to acceptable standard.
And the completion of the project construction, generally auditing by registered auditor and
public audit among the community in the presence of representative of DDC, VDC and DDC:
DEES and other partner organizations will be conducted by the respective MHFG with in the
process of the DEES community mobilization procedure.
Similarly, the micro hydro operator and manger will report MHFG regularly on the status of the
MHS operation and management. And operational rules administered by the MHFG will provide
for connection condition, collection of tariffs, fines for late fee and disconnection for
nonpayment. The manger will be responsible for ensuring timely payment of electricity bills by
consumers and for dealing with tampering, theft, etc. Lists of defaulting consumers will be
announced at monthly MHFG meeting.
Chapter 6
ENVIRONMENTAL ANALYSIS
Generally, environmental problems in Nepal are the result of mismanagement of natural
resources evolved from the lack of integration of environmental considerations in the
development process. Integration of environmental assessment in the development of MH from
the planning stage helps identify possible adverse impacts and their mitigation measures to avoid
or minimize the adverse consequences in the micro level, which in the long run helps to make the
MH scheme cost effective as well sustainable. Realizing this, a separate EIA study of the project
has been conducted by DDC: DEES Ilaam and the report are presented as Vol. II of the DPR of
the Lower Puwa Khola MHS.
After implementation of the MHS, the social situations, community facilities, employment
opportunities, land price and markets for local produce will increase considerably. There will not be
considerable biological impacts such as effects on vegetation and forest resources, wild life, crops,
aquatic life etc. The implementation of the project will not cause significant physical impacts such
as floods, landslides, and deterioration of water and soil qualities. However, minor impacts such as
loss of some agriculture lands, cutting of some trees etc. will occur in the project area. Preventive
measures such as awareness creation and tree plantation are suggested to reduce potential adverse
impacts. Especially, micro watershed development and tree plantation are recommended in the
peripheral areas of the canal, intake, penstock alignment, overflow canal, tailrace canal etc.
In general, the MHS under consideration is small in magnitude and does not require a huge and
costly mitigation measures. The intake does not need huge excavation and cutting of trees. More
than 15% of the flow will be in the stream even in the driest season, which will help in preserving
the flora and aquatic life in the downstream areas. Similarly, the headrace canal is existing irrigation
canal and there is no any possibility of environmental imbalance even the same canal is used for
MHS.
As forebay area is located in the uncultivated land, the spill water from the forebay tank is proposed
to be diverted through spillway to the source stream. The spill water can also be used for irrigating
lands near the forebay area. Based on the site condition, there is no risk of erosion. The powerhouse
is located at the left bank of the Banakhu Khola. The tailrace canal section is constructed from
powerhouse to Puwa Khola, which follows the natural contour so that erosion due to constant
flow is less.
There will not be heavy excavations and tree cuttings for civil constructions. Hence, there will not
be risk of flooding and erosion. The proposed powerhouse site is high enough than highest flood
level and hence there is no flood risk. The project needs about 376 wooden poles that are being
planned to be obtained from community forest of the areas. The MHFG is planning get the poles by
cutting old, unnecessary and fallen trees of the community forest. The cutting of trees will be as per
the approved work plan of the community forest and as per the District Forest Office regulations. In
this way, environmental implications of poles preparation will be minimized. Also to balance the
cutting of the trees, plantation will be carried out with support from the DEES and the DFO.
Thus, the project does not hamper any household in the project area and does not disturb significant
cultivated lands. As there is minimum of bushes and few trees in the project alignment, there will
not be cutting of trees in a massive scale. Since the excavations for the project is minimum, there is
no possibility of natural disturbances such as landslide, erosion and flooding. Furthermore, as per
the mitigation measures, DEES supports the Environment and Natural Resource Management
(ENRM) activities like nursery establishment, bioengineering works, tree, fruit and fodder
plantations, training to nursery naike, environment campaigns etc. in the project area. The DEES's
support for such activities for the project will be compensated by environmental benefits due to
replacements of kerosene and diesel, and other direct and indirect environmental and social benefits
in the project area.
Establishment of the MHS will certainly change the energy consumption pattern of the area.
Kerosene for lighting and diesel for running mills will be replaced and these will have additional
environmental advantages in terms of equivalent carbon replacement, which otherwise would
have polluted the atmosphere. As per the United Nations Frameworks on Convention of Climate
Change (UNFCCC) guidelines, environmental benefits due to replacement of kerosene by micro
hydro electricity are around 0.9 kg of carbon/kWh electricity consumed. Considering about only
35% plant factor, annual electricity consumption of the project area will be about 0.9 x 0.35 x 25
x 8,760 kg of carbon, i.e. about 68.99 ton of carbon annually. Similarly, if it is assumed that at
least a 10 HP diesel motor is required in the village in case of no electricity. Then economic
analysis show that about 1,200 lit. (1 x 5 hours/day x 330 days) of diesel will be replaced after
implementation of the MHS due to replacement of the diesel mill by the electric mill. With
carbon content of diesel at about 3216 kg per litre, total carbon avoided due to replacement of the
diesel mill by electric mill would be around 6.4 tons of carbon annually. These elaborations
clearly justify the environmental benefits of the proposed MHS.
Chapter 7
SOCIAL (VULNERABLE COMMUNITY) ASPECTS OF THE MHS
Micro-hydro is generally a clean source of energy without adverse impact on the environment.
However, the sustainability of micro-hydro schemes depends much not only on technical,
management and financial aspects but on social aspects also. The past experience on
development suggests that people's access to public goods (such as water and other natural
resources) differs significantly depending on their social identity, in terms of caste, ethnicity and
gender and on their economic status and location (urban/rural/remote rural). Because policies
have been insensitive to the social realities of Nepal, certain groups have been excluded from the
mainstream of the development process. Therefore, it is essential to undertake social assessment
of proposed Micro Hydro power system (MHS) in order to assess existing social considerations
of the locality, determine possible impacts, plan mitigation measures and implement various
social development activities. The social assessment of the proposed MHS area revealed some
degree of social exclusion based on caste and ethnicity. It is recommended that serious attention
should be given their effective participation in the programme to include a specific focus on
social inclusion. In this regard, Vulnerable Community Development Study Report (VCDSR) of
the project has been conducted by DDC: DEES, Ilaam and the report are prepared as Vol. III of
the DPR of the Lower Puwa Khola MHS.
In line with the World Bank's Operational Directives (OD 4.2) that instructs Bank supported
operations to avoid or mitigate potentially adverse effects on VCs, the survey team met with a
number of VC groups and focus groups of the MHS beneficiaries to document any adverse
impacts experienced during community mobilization process and consulted with these groups on
their concerns about possible adverse impacts. During these consultations, focus group
discussions and individual interviews were carried out. Based on these discussions, the survey
team learned that the adverse impacts experienced about the MHS was mainly indirect and had
mostly to do with lack of cultural sensitivity. The team was also concerned that VC groups might
have less access to project benefits than local dominant caste groups.
The lands needed for canal construction and for constructing other civil structures are already
acquired by the concerned MHFG by consulting the landowners and through bilateral
negotiations and consensus mass decisions. All the concerned landowners are well off and not
many lands to be used for MH construction at present. And they have agreed to provide the lands
free of cost. The canal alignment, forebay structure and power house area lies in private land and
the owner is willing to provide the land on the name of the MHFG. Thus there is no issue related
to water right conflict and land acquisition at present and it's unlikely that any issue will arise in
future related to these. Moreover, the MHFG has been already initiated to register at the District
Water Resource Committee, Ilaam in order to avoid the possible conflict regarding the use of
water in future, even though there is not any sign of conflict on water sharing practice at present.
The required collateral for bank loan process i.e. land certificate will be collected from elite
households in consensus decision and there is not any problem for other vulnerable communities
regarding this. The project requires cash contribution of about Rs. 1, 554, 000.00 @ 6,000 per
HH and ready to collect from the beneficiary household. The community will be strongly
encouraged to develop mechanisms to subsidize the contribution from the poor groups.
The provision of end use development with the MHS and internal saving and credit facilities in
the COs will help for economical upliftment of the community. Similarly, the programme will
have positive impacts on health and sanitation through environment awareness programme. All
including the VCs will encouraged to make, ICS, latrines and waste disposal site and the
provision of additional DEES subsidy for toilet attached biogas will be supportive for the
promotion of biogas in the MHS area.
It is observed that the VCs may need additional support to find creative ways to reduce the
dominance of the elite and encourage more democratic behavior in the MHFG/WC. The
successful implementation of VCs concerns activities will be performed by respective
community organizations with the help of support organization and the technical input of DDC:
DEES.
Chapter 8
CONCLUSIONS AND RECOMMENDATIONS
From the preceding analyses and discussions, it is found out that the project is technically and
financially feasible. The implementation of the project will provide high quality lighting for
household purpose as well as reliable and environmentally safe power for end-use applications.
The MHS will help in saving of about 75.4 tons of carbon annually due to the replacement of
kerosene and diesel by micro hydro electricity.
As seen through the financial analysis, the NPV of the project is positive (10% rate, 15 years)
with Payback period of 6.06 years, B/C ratio of 1.17 and IRR being 15%. Similarly, economic
analyses of the project show that a positive NPV at 10% rate with payback Period of 7.16 years
and the EIRR 11%. Thus the project should be considered beneficial from all aspects viz.
financially, environmentally, socially and economically. The cost/kW of the proposed project is
about 361, 950.00.
The local people are very much positive towards the project and are ready to contribute from
their side. During installation, it is highly recommended to involve only experienced parties or
technicians. As DEES has rich institutional experiences in the field MH development, it is hoped
that they will also carry out the monitoring the site conditions and other probable implications of
the project implementation. The project is believed to be very successful with the assistance and
supervision of reputed organizations like DEES and the DDC: DEES.
Obviously, the socio-economical status of the village will be improved with the implementation
of the project. Presently used resources to mitigate the lighting energy demand will be replaced
by converting the water potential to electrical energy as discussed above. It will definitely reduce
forest product consumption. After implementation of the scheme, there will several end uses like
agro-processing mill, rural carpentry, bakery, computer and high vision hall etc and many more
installations, which will automatically make life easier.
Thus the project is feasible and recommended for its construction.
REFERENCES
Micro Hydro Design Manual – Addm Harvey, 1983
Micro Hydro Sources Book – NRECS, 1986
National Environmental Impact Assessment Guidelines, NPC/IUCN, – 1992
Environmental Management Guidelines – REDP, 1997
Financial Guide Line – REDP, Nepal
For more details please contact
Mr. Vaibhav Pandey
Email: [email protected]
Contact no: +977-9849525011
Research coordinator
Centre for Advanced Research and Obligatory Learning, CAROL