FEATURES NEWS THE RISING NEPAL (DAILY)

Micro Hydropower Generation Private Sector Important

By Khilendra Basnyat

NEPAL has a huge potential for hydroelectricity generation. However, only 18 per cent of the country’s population, mostly urban, are enjoying electricity facilities.

Despite the necessity of developing hydropower, Nepal did little for a long time to promote micro hydropower. Obsession with big hydropower projects took away much of the attention that had to go into small hydropower development.

Low Cost

Micro hydroelectric plants can be set up at low costs. Since such plants can be established in a short duration, rural electrification can be done with minimum transmission cost and loss. Such power plants not only help in meeting the increasing demand of power but also help in flood control and in enhancing irrigation facilities.

The establishment of micro hydroelectric plants will illuminate rural homes. It will also assist the people in improving their traditional technology. No doubt, power helps in operating industries. It is natural, therefore, to expect rural people to be interested in establishing cottage and small industries. This will help rural folks in income generation and meeting their daily needs.

The preservation of the environment may be helped through the reduction of pressure on agricultural land and dwindling forests. This is possible through micro-hydro power. It has been estimated that the daily amount of electricity required to sustain the basic living standard, domestic as well as commercial, is about 0.3 kilowatt per day. These can be produced in ‘run-of-the-river’ micro hydroelectric plants. Actually, the micro-hydro-technology is dependable and also suitable for hilly regions, where the majority of the people live without lights. In fact, the existence of abundant water resources is by itself not enough for a country’s economic development. What is essential is their efficient exploitation, which is possible through improved technique.

As micro hydro-electricity holds enormous potential for rural electrification, the government has brought in policies and programmes in this regard. However, they have not been translated into reality.
Some UN agencies and donors are trying to promote and enhance rural electrification. The fifth, sixth and seventh power projects carried out under the rural electrification scheme provided electrification to mostly Tarai and inner Tarai regions of our country through the financial assistance of Asian Development Bank and the government.

Multilateral agencies such as United Nations Capital Development Fund and some friendly countries have provided financial assistance for the on-going micro hydro projects. Under the Rural Energy Development Programme (REDP) jointly launched by the United Nations Development Programme (UNDP) and the government, some amount of electricity has been generated in the remote villages of our country.

UNDP started its REDP in rural areas by developing rural energy technology. In the beginning, REDP was launched in just three districts, but it is now operating in more districts. Under REDP, the community owns the micro project and decides the tariff charges. Once the benefit becomes apparent, there is a total social mobilisation and participation. Out of the several districts covered by REDP, most have had electricity. Some people have directly benefited from this facility. It has been expected that with sixty micro hydro-plants 1,000 kilowatt of energy will be generated. Also, about 40 per cent electric power will be added and nearly 8,500 households will be electrified. In regard to the UNDP giving priority to development programmes, REDP has contributed to reducing poverty in project areas. However, the rural poor living in different parts of our country are still facing various kinds of problems.

Although the community based rural electrification programme started as a poverty alleviation and agricultural development programme, it has now become an important civil society movement. The government of Nepal, recognising rural people’s needs, has given facilities for power generation up to 1,000 kw. It is encouraging that the establishments of such hydropower projects by giving soft loans, subsides and tax exemption will help meet the power needs of the rural people to some extent. Some years ago, the government decided to provide a subsidy of 50-74 per cent for the installation of hydropower projects, depending on the remoteness of project sites. Also, there was an exemption of tax on the important of materials necessary for hydroelectricity generation.

Even the Agricultural Development Bank of Nepal is giving soft loans for installing micro hydro-projects. Already several traditional water mills have been upgraded, generating more than 3,000 kilowatt of electricity. In reality, the micro hydroelectricity generation has had positive impact on rural people. What is more, the rural people are also using the energy judiciously and installing power only up to 5 kw as required by a village. It is expected that Nepal would add 50 per cent more power to its capacity through these micro sets.

Although big hydro projects have long gestation period, micro hydro-projects have more capacity and can be evenly distributed regionally. For this reason, recent times, have seen some initiatives across Nepal in micro hydropower generation. In this, context, some hydropower developers have already begun to produce power and sell it to Nepal Electricity Authority (NEA). Nepal has become a trendsetter in setting up micro hydro-plants for electricity generation. Although 82 per cent of the total population goes without electricity, Nepal is considering the possibility of generating micro hydro-electricity from its 6,000 rivers and streams. Actually, the decentralisation of power generation has been the result of joint efforts of the villagers and private players to upgrade the traditional water mills for electricity.

NEA, with the assistance from the government, is carrying out the task of rural electrification till now. Also some rural consumers have been provided with the electricity campaign.

Necessity

Since the amount allocated for hydropower generation is by no means adequate, the participation of private entrepreneurs in micro hydropower generation should be looked at as a necessity. However, the private entrepreneurs will be attracted to micro hydropower only when the infrastructure development programme is given top priority.

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