Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

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Community based Rural Electrification in Nepal Status, Prospect and Challenges Presented by Madhusudhan Adhikari, National Advisor AEPC/NRREP

Transcript of Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

Page 1: Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

Community based Rural Electrification in Nepal

Status, Prospect and Challenges

Presented byMadhusudhan Adhikari,

National Advisor AEPC/NRREP

Page 2: Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

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ELECTICTY USE IN NEPAL

74%

26%

Total

94%

6%

Urban

70%30%

Rural47%

41%

12% Grid

Off-Grid

National Census 2011

Population with electricity Population without electricity

World Development Indicator

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ENERGY FOR COOKING

64%21%

10%

2% 1%

Total

Fuelwood LPGAnimal dung BiogasKerosene

National Census 2011

26%

68%

2%2%2%

Urban

73%

10%12%

3%1%

Rural

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POWER GRID MAP OF NEPAL

Page 6: Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

OFF GRID RE TREND IN NEPAL

Solar PVMicrohydro

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0

500

1000

1500

2000

2500

3000

Source: RE Data Book 2012, ESAP, RERL

AEPC ESTABLISHED IN 1996

Total ~36000 kW~28000 kW (AEPC)

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MICRO HYDRO DEVELOPMENT TREND IN NEPAL

2013

2014

2016

2015

2017

AEPC/NRREP Target~25000 kW

NRREP Year

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MICRO/MINI HYDRO DISTRIDUTION

Page 9: Kathmandu | Apr-15 | Community based Rural Electrification in Nepal Status, Prospect and Challenges

TARGET OF AEPC/NRREP (2012-2017)

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IMPLEMENTATION MODEL

Public Private

PartnershipDemand side

Public sector

Supply side

Private sector

Awareness & capacity building

Technical & financial assistance

Planning, coordination & networking

Quality assurance, monitoring & evaluation

Manufacturing & supply

Sales & installation

After sales services, repair & maintenance

Int. Quality control & monitoring

Subsidy

Users/ Beneficiary

Qualification/ Grading/

Evaluation

Standards/ Guidelines

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CHALLENGES OF COMMUNITY BASED RE

Definition of Electrification◦Replacing wick lamp, wood, kerosene lamp???◦Electricity for evening lighting x Wp PV ???◦Availability of electricity for or amount ???

Sustainability and economic benefits of investment◦Role of government◦Awareness of capacity of local

Improvement in Livelihood◦Comparing themselves◦Compare to city or Capital◦Compare to global

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CHALLENGES OF COMMUNITY BASED RE

is

NOT TO PROVIDE ACCESS TO

MODERN LIGHTS its

SUSTAINABILITY OF TECHNICAL SOLUTIN AND INCREASED

LIVING STANDARD OF LOCAL PEOPLE.

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CHALLENGES OF COMMUNITY BASED RE

Up scaling and upgrading – scaling implementation & upgrading quality

Financial viability in business model

Remoteness and difficult geography high transportation cost.

Sustainability – O & M of plant in local level

Integrated planning and inter-connection of off and on grid systems

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BARRIERS IN UPSCALING

High initial upfront costs of technology for end-users

Sub-optimal financing mechanisms – grant/subsidy-long approval process

Lack of access to credit - high transaction costs

Productive consumption of energy produced – end use promotion

Funds to be arranged by community is very high.

Procurement by community - Bidding process, low bargaining power, end with poor quality high cost

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WAY FORWARD To shorten the project development period –subsidy

approval and financial closure.

Promotion of credit facilities in rural area. Expansion of reach of financial institution. Cutting/sharing the overhead cost Subsidized interest rates on credit

Mobilization of urban developers in rural areas – need of FIT

Equitable investment by government by cross subsidy-Urban Vs Rural

Strong policy to promote rural energy based enterprises.

More comprehensive capacity building for local on O & M skills

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THANKS FOR LISTENING

Madhusudhan Adhikari, National Advisor , Community Electrification

AEPC/NRREP

Email: [email protected]: madhusudhan-2015

LinkedIn: madhusudhan1967Cell: +977-9851079427

www.aepc.gov.np