Srsp Microhydel Initiatives

A decade of SRSP efforts in provision of renewable and sustainable energy 2014

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A decade of SRSP’s efforts in Renewable and Sustainable Energy in Khyber Pakhtunkhwa and FATA

This brief paper by Atif Zeeshan Rauf, Programme Manager Monitoring and Evaluation, SRSP presents efforts of Sarhad Rural Support Programme (SRSP) in promoting and developing renewable & sustainable energy in Khyber Pakhtunkhwa (KP) and FATA. Starting its journey in 2004 with only 2 Micro Hydro Projects (MHPs) in district Chitral, today SRSP has initiated/completed 166 MHPs producing 9.6 megawatt electricity benefiting over 242,000 population mostly women. These MHPs have multiple benefits as discussed in the paper. SRSP plans to expand scope and magnitude of such projects and by 2016 it would have initiated 422 micro hydro projects producing 33 megawatt electricity to benefit over 700,000 population.

Key Words: Mini-Micro-Small Hydro Projects (MHPs), Renewable and Sustainable Energy, Community Based Organizations, Business Interest Group

Prologue Pakistan has been facing acute power shortage in recent past, which invariably has affected its economy and added miseries to life of its, especially, rural population. Electricity generated through various sources in Pakistan has not been able to meet ever growing demand of urban and especially rural population. Coupled with this, poorly maintained energy infrastructure, increasing demand, transmission losses, power theft and seasonal reduction in availability of hydro-electricity are other major factors to aggravate this situation. In remote/difficult areas of Pakistan, in general, and KP specifically, even today, state has not been able to extend power infrastructure to provide electricity. A recent study conducted in 7 districts of Malakand Division revealed that 25% of total population is still not connected to main-grid electricity (Baseline Malakand Division, 2013). Keeping in view these alarming figures/facts mentioned above, SRSP, based on natural/human potential in KP and especially Malakand1 Division started developing small scale hydro projects for provision of clean, renewable, and sustainable energy.

Mini-Micro and Small Hdyro Projects There is no universally accepted definition of the term “small hydro” which, depending on local definitions can range in size from a few kilowatts to 50 megawatts or more of rated power output.

Internationally, “small” hydro power plant capacities typically range in size from 1 MW to 50 MW, with projects in the 100 kW to 1 MW range sometimes referred to as “mini” hydro and projects under 100 kW referred to as “micro” hydro (Hydro Project, MNR, 2004). Apart from the discourse on mini-micro or small hydro projects, it is indeed an acceptable fact that hydroelectricity is one of the most mature forms of renewable energy, providing more than 19% of the world’s

electricity consumption from both large and small power plants. Brazil, United States, Canada and Norway produce significant amounts of electricity from very large hydroelectric facilities (Hydro Project, MNR, 2004).There are also many regions of the world that have a large number of small hydro power plants in operation e.g. China produces

1 Malakand Division comprises 7 districts; Chitral, Buner, Shangla, Swat, Malakand, Upper and Lower Dir


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Table 01-Donors supporting MHPs (as of Oct, 2014)

Donors No of MHPs

EU –PEACE 84

PPAF 39

Go KP (BK PAP) 15

UNHCR, UNHCR-RAHA, OSF 14

AusAID 7

CIDA, ICCO and IKF 7

Grand Total 166

Table 02-Districts with MHPs (as of October, 2014)

Districts No of MHPs Production in KW

Battagram 7 45

Buner 1 25

Chitral 25 1,924

Kohistan 18 355

Kurram 1 30

Lower Dir 5 225

Shangla 24 1,269

Swat 43 3,375

Dir Upper 42 2,389

Grand Total 166 9,637

19,000 MW of electricity from 43,000 small hydro facilities. Pakistan and Khyber Pakhtunkhwa endowed with plenty of water resources, have rich potential for hydropower generation, estimated at 60,000 megawatt, which could be economically harnessed. Out of this vast hydropower potential only 11% has been developed so far as shown in figures 1.1 and 1.2 (Hydro power Resources of Pakistan, 2011). In view of multiple challenges, for Pakistan, Hydropower is one of the best available options in current scenario to meet challenges of projected future energy demands of Pakistan as it is sustainable, reliable, renewable, clean, low cost and indigenous thus can be a principal source of energy. Efforts, invariably, needs to be directed towards development of un-tapped hydropower potential in Pakistan and especially Khyber Pakhtunkhwa as hydropower resources in Pakistan are mainly located in mountainous areas in northern region of Pakistan. The hydropower resources in the South being scarce mainly comprising small to medium schemes on barrages and canal falls (Hydro power Resources of Pakistan, 2011).

First Step or Giant Leap in Future The year 2004 has a special significance in SRSP’s history as it saw initiation of two micro hydro projects in union council Koh and Ayun supported by Pakistan Poverty Alleviation Fund. These two projects2 produced 80 kW and benefited over 1,000 population. District Chitral endowed wlith plenty of water resources was perhaps one of the best options at that time to initiate these initial projects and even today by end of 2014, SRSP has, ‘predominantly, initiated MHPs in same region (Malakand Division) with an active support of national, international and local partners as mentioned in tables 01 and 02. This clean energy is likely to contribute to overall social and economic development of this area, which in recent past had been severely affected by natural and human made disasters.

An interesting fact is that initiation of above mentioned MHPs in district Chitral in 2004 as ‘starting step’ was indeed a ‘giant leap’ in future and SRSP, as of today, is the largest non government organization proactive in promoting and supporting renewable, clean, and sustainable energy in impoverished areas, which have not been connected to main grid even after 65 years of independence. By October 2014, SRSP has initiated 166 micro hydro projects with a total cost of PKR 1.25 billion with

2 The projects are still running and delivering clean energy even after decade of its completion.


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an active support of national and international donors across KP. These projects are producing 9.6 megawatt electricity benefitting over 242,000 population mostly women. The portfolio of MHPs, attributed to SRSP’s expansive presence, scale, technological know-how, is growing at an encouraging pace and by end of 2016, SRSP would be one of the largest, if not the largest, actors in Khyber Pakhtunkhwa to provide clean, affordable, renewable, and sustainable energy. With an active support from European Union and Government of Khyber Pakhtunkhwa, SRSP by 2016 would have initiated and completed 422 micro hydro projects of varying capacity producing 33 megawatt electricity benefitting over 700,000 population. The mentioned 422 projects with an overall cost of PKR 3.2 billion would essentially focus impoverished areas and population lacking an access to main-grid electricity. The development of micro-mini hydro projects typically takes 9-12 months to complete, from conception to handing it over to local communities. This time is required to undertake feasibilities studies and design work, to receive necessary approvals and to construct the project. Once constructed, micro-mini hydro plants require little maintenance over their useful life, which can be well over 25 years. Normally, one/two operators and 7-8 members of power committees can easily handle operation and routine maintenance of smaller units, with periodic maintenance of the larger components/units of a plant usually requiring help from outside contractors/service providers. The technical and financial viability of each potential small hydro project are site specific. Power output depends on the available water (flow) and head (drop in elevation). The amount of energy that can be generated depends on the quantity of water available and the variability of flow throughout the year.

Little twists-tweaks enhancing efficiency-effectiveness To maximize efficiency, direct coupling of locally manufactured cross flow turbines with alternators and gear box system are introduced. Programme logic control (PLC) based panels are introduced for first time in MHPs at this level. For controlling fluctuation in voltage electrical load controllers (ELC) in micro-mini units have also been introduced. Brushless alternators of reputed imported brands are incorporated keeping in view site requirement regarding altitude, temperature and ELC factor. Due to very high cost of imported PLC based hydraulic governors, an extensive one year research with local private sector actor has resulted in developing same governors at national level for the first time. These locally manufactured PLC governors have been tested and installed at all new sites saving useful resources. In most units, cylindrical steel poles are used to avoid wooden poles thus avoiding deforestation. For controlling line losses properly designed and tested conductors are being used along with transformers. Proper trainings to local communities, connection charges, monthly billing collections and regular local monitoring are major factors contributing to sustainability of these units.

MHPs promoting collective action These micro hydro projects are significant in promoting social cohesiveness in areas affected by conflict and recent floods. Through these micro-mini hydro projects, community members from


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diverse backgrounds and different economic classes/categories are organized in shape of people’s institutions at local level. These local institutions are instrumental in transparent execution of MHPs. Once completed, these MHPs are managed and run by people’s institutions with a particular focus on operation and maintenance to ensure sustained benefits at local level. Or in other words, these MHPs are not seen as projects rather identified as gelling factor to strengthen community bond and promote collective action at local level to address local needs.

Sky high vs. community determined modest tariffs The largest electricity provider in Khyber Pakhtunkhwa is state owned Water and Power Development Authority (WAPDA) or Small Hydro Development Organization (SHYDO now known as PEDO). Two types of tariffs; 12/unit for normal hours and 18/unit for peak hours- have been set by state owned organizations. Notwithstanding, high rates, power outage for minimum of 8 hours in urban and 12-16 hours in rural areas per day add miseries to life of urban and rural population connected to main grid. The unreliability and/or limited availability of electricity dramatically reduces its value and potential uses to both households and businesses. On contrary, SRSP supported MHPs are providing 24/7 electricity to domestic and commercial users at much lower cost. In general, 4/unit is charged for domestic and 7/unit for commercial use. The mentioned rates are determined by respective power committees in light of O & M cost per month of respective MHP and local context. Increasing reliability of electricity in programme districts/target areas has encouraged households/businesses to stop use of other makeshift measures, such as costly diesel/gasoline generators e.g. a local hotelier in UC Kalam, district Swat reported savings of PKR. 100,000/month by getting connected to recently completed MHP under EU PEACE Programme (Case study, SRSP, 2014). Increasing reliability of electricity through these MHPs has also ensured willingness to pay for such quality services in a country where electricity theft is common phenomenon.

Multiple Models Multiple Benefits Two models of service delivery through MHPs are developed and followed at SRSP. MHPs with capacity up-to 50 KW are categorized as small projects. Part time operators are engaged and need based cost sharing is encouraged to provide electricity at local level. The larger projects with production capacity of 100 KW and above (treated as Social Enterprise), especially in case of EU PEACE programme, a more robust model is developed and followed. To manage such ventures, power committees are constituted and their technical capacities are enhanced. In addition, power committees comprising 7-8 members from local community are constituted to assume important roles of determining tariff for domestic/commercial users, follow up on connections, collect revenue and check any irregularities. The revenue, thus, generated/collected is utilized for remuneration of paid technical staff and undertaking regular operation and maintenance of respective MHPs. The social and economic benefits of smaller/larger MHP projects in various districts of Malakand Division are mentioned below:

i) The revenue generated through tariff collection from domestic and commercial users in case of larger MHPs has been invested in community based school, supporting teacher salary of local community based school and preservation of local culture and heritage. Generation of adequate electricity in case of larger project is also extended to e.g. a hospital in Kalam or BHUs in respective BHUs thus improving social sector services.


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ii) Being run-of-river units, these MHPs does not require displacing local population or affecting riverine life or bio-diversity. SRSP initiated MHPs also contribute to regeneration and preservation of local forests3.

iii) The current portfolio of 166 units producing 9.6 megawatt4 electricity is a major contributor in reduction of CO2 emissions by 29,000 tonnes per year. By 2016, SRSP with all 422 units producing 33 megawatt electricity would contribute in reducing CO2 emissions by 99,792 tonnes per year.

iv) With 166 units producing 9.6 megawatt5 electricity, SRSP MHPs have been contributing in saving 33 million litres of kerosene oil worth PKR 3.2 billion. By 2016, SRSP with all 422 units producing 33 megawatt electricity would contribute in saving 114 million litres of kerosene oil worth PKR. 11 billion.

v) SRSP initiated MHPs have created short and long term employment opportunities at local level. The current 166 engaging approximately 500 operators has resulted in improving and strengthening livelihoods of at least 500 families. By 2016, all 422 units would engage over 1200 operators benefiting 1,200 families or 9,000 population.

Unfolding PURE; Diversifying Electricity Usage Stereo-typing led to ‘limiting’ use of electricity produced by MHPs for lighting or lighting/heating (in case of bigger projects). A recent study conducted internally by SRSP economic growth component of PEACE project highlighted major problems faced by fresh fruit producers comprising market price fluctuation, uncertain supply and demand, lack of access to market information, pre/post harvest losses in fresh fruits, lack of storage facilities and ignorance about value addition in the fruits. This results in huge post harvest losses and low income from marketing of fresh fruits in local/national markets. To make best use of renewable energy and diversify utilization of electricity produced by micro hydro power units, the concept of Productive Utilization of Renewable Energy (PURE) has been introduced by SRSP to diversify utilization of energy produced by MHPs for benefit of poor and marginalized community with special focus on women folk. The members of Business Interest Group (fresh fruits) with technical support from SRSP has utilized hydro-electricity for drying fruits to fetch better price in the market. On trial basis, Japenese fruit has been processed (dried) by men and women members in Swat and marketed in local markets. This processed/dry fruit fetched a net income of PKR. 440 per Kg or more than 156% increase in income. Based on these figures, one can assume that effects on production are significant. This renewable energy has been utilized as a direct input in production or to increase efficiency of current human and capital inputs already being utilized (or both).

Discussion and Conclusion Developing power infrastructure and provide 24/7 electricity to rural population by State in coming few years is like a fairy tale. In such a bleak scenario, these small scale hydro projects developed by SRSP and similar organizations beyond any doubt would be transformative for these impoverished districts areas and vulnerable population. Spending millions to set up a MHP, preferably, in rural

3 A study conducted by Humayun et al. (2014) presented an alarming figure of 472 Kg of wood used by an individual per year in Malakand division. 4 1 KWH hydro- electricity reduces Carbon emission by 0.42 kg. 5 1 KWH hydro-electricity reduces kerosene use by 0.48 litres.


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areas may seem difficult for smaller organizations or NGOs like SRSP but little support from development partners and local communities can change fortunes of these areas. Based on facts, figures and calculations presented in this brief paper, one can easily assess that social, economic, and environmental benefits of especially larger projects with bigger production capacity outweighs the cost incurred. This also leads to think whether SRSP should start investing in larger projects with capacity of 100 kW and above. If electricity is used first and foremost for production, then it is more likely to require larger amounts of electricity vis-à-vis developing bigger units but If it is used primarily for household consumption, then smaller units may be more appropriate, at least in the short-term. May be a demand could be created for bigger units through sensitizing communities on productive use of this renewable energy. Regardless of small or bigger units, in order to achieve a reliable high-quality electricity service, there will have to be significant investments in quality of the electricity infrastructure. SRSP through its current ventures and upcoming projects/partnership plans expand and upscale MHPs in potential areas but this may not prove to be sufficient keeping in view the ever growing demand for such services. Recent investment by government of Khyber Pakhtunkhwa in supporting hydro projects6 through non government organization is encouraging, nevertheless other partners especially international agencies needs to be proactive in supporting such initiatives in order to support and strengthen livelihoods of population living in Northern Mountains of Khyber Pakhtinkhwa, Pakistan.

6 Government of KP plans to support over 350 MHPs in Malakand and Hazara division with local organizations.


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The author would like to extend gratitude to Mr. Sohail Marwat (Programme Engineer, MHP) Khalid Hussain (Programme Coordinator, Economic Growth), Aftab Shakir (Programme Officer M & E,) and Zahid Khan (Programme Manager), EU PEACE Programme to provide necessary details for completion of this brief paper.

Literature Reviewed

i) IGC Evidence Paper; Energy Growth and Development, 2014 ii) Hydro-power resources of Pakistan, 2011 iii) ADB-Hydro power development in Pakistan; A sector assessment, 2007. iv) Social Impact Evaluation; Project fund for promotion of MHPS, IDTG, 2010. v) Clean Energy project Analysis; RETSCREEN Engineering and Cases, 2009 vi) Small Hydro Project Analysis, MNR, 2001-04, Ca. vii) Economic risk & sensitivity analysis for small scale Hydro Projects, IEA, 2000. viii) Development of hydro power & renewable energy in KP, KFW-PPAF, 2013. ix) Baseline report of Malakand Division, EU-PEACE programme, 2013. x) Evaluating impact of selected value chain in Malaknd Division, 2013. xi) Humayun et al.; Wood as a Fuel Source in the Hindukush: A Case Study of Utror and Gabral Valleys,

Northern Pakistan; PJ Life Science, Issue 02, 2013.

Srsp Microhydel Initiatives

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