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

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SALIENT FEATURE
Gross Head Measured Flow & Date Least Flow Design discharge Name of the River Power Output Beneficiary Households (Nos) Length of Power Canal (m) : : : : : : : : 30 m 204 lps, May-11, 2009 201.34 lps 154 lps Lower Puwa Khola 25 kW 259 HH 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 Type of Generator Type of Load Controller Penstock Type & Length Length of T & D Lines (m) : : : : : Cross flow 38 kW Shaft Output 50 kVA, 3 Phases, Synchronous, Brushless ELC 25 kW with Ballast tank 30 kW M.S 280 mm ID, 3 mm thickness 66.0 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 Road head Name Distance (km) Productive End uses : : : : 25 kVA -2 nos, Setp up, Setup down Nepaltar, Puwa khola bazaar (Ilaam) 45 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.) Cost per kW (Rs.) Total Non Local Cost (Rs.) Non Local Cost per kW (Rs.) : : : : 9, 048, 745.00 361, 950.00 7, 604, 702.00 305, 950.00

Source of Finance (Rs.) Subsidy Community Investment (Loan) DDC Investment VDC Investment Community Equity (Local costs) Community Equity (Cash) Nepal Engineering College CAROL : : : : : : : : 3,562,500.00 1,160,853.00 452, 437.00 (5% of TPC) 904, 875.00 (10% of TPC) 1,414, 081.00 1,554,000.00 50,000.00 80,000.00

Financial Analysis IRR NPV (Rs.) B/C Ratio Payback Period : : : : 15% 1,120,955.00 (Rate of 10%, 15 yrs) 1.07 6.8 yrs.

Economical Analysis EIRR NPV (Rs.) Payback Period : : : 11% 453,222.00, (Rate of 10 %, 15yrs) 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. ANNEX II (A) ................................................................... Error! Bookmark not defined. 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 AEPC Amp BOQ CAROL CM Cu.m DDC DDC: DEES EIA E/M HDHC kg km kV kVA kW kWh LA LPS LT MCB m MHDS MHFG MHP MHS MIP nec PCC PCD PDP RCC RPM Rs. Sq. m. Aluminum Conductor Steel Reinforced Alternative Energy Promotion Centre Ampere Bill of Quantity Centre for Advanced Research and Obligatory Learning Community Mobilizer Cubic Meter District Development Committee District Development Committee: District Energy & Environment Section Environment Impact Assessment Electromechanical Himal Dolakha Hydropower Company Kilogram Kilometer Kilovolt Kilo Volt Ampere Kilo Watt Kilo Watt Hour Lightning Arrestor Liter per second Low Tension Miniature Circuit Breaker Meter Micro Hydro Demonstration Scheme Micro Hydro Functional Group Micro Hydro Project Micro Hydropower System Medium Irrigation Project Nepal Engineering College Plain Cement Concrete Pitch Circle Diameter Power Development Project Reinforced Cement Concrete Revolution per Minute Rupees Square Meter

UNDP VCDP VDC WB

United Nations Development Program Vulnerable Community Development Plan Village Development Committee 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 Communitys 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 Project manager: Program coordinator: Administrator: Chief development officer: Chief technical officer: Technical officer: Development officer:

Name of candidate Vaibhav Pandey Dinesh Shrestha Kalyan Bikram Neupane Baibhav Ojha Ganesh Aryal Ashish Gautam, Prakriti Pradhan and Ganesh Niraula 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 K.C, Mandeep Shrestha and Nirmal Shrestha

Shrestha,

Nirajan

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 electromechanical components. Considering all the issues following objectives have been noted to carry out the feasibility study of the project. 1.3 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

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 January February March April May Flow at River, lps 535.44 402.69 300.91 221.26 201.34

June July August September October November December Annual Average

604.03 2480.30 3084.34 2212.58 1442.60 1006.72 736.79 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) Rate/ Qty. (per HH Average Monthly Use Description Unit Remarks Unit per month) Cooking % Lighting % Free of cost normally, Fuel Wood ~5-6 Bhari Bhari 50 100 pressure on forest is Per HH (280 kg) maximum Kerosene Litre 100 50 3.5 3 3 1.0 86 33 67 % cassette. for radio,

Dry Cell Pair Batteries

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.

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)

Operating Days /Month Operating Months /Year Total Energy Consump (kwh)

S.N.

Type of Business

Location Ward no.

Power (kW)

Operating Hours

Tariff/kWh

Remarks

1 2 3 4 5

Agro-processing Rural Carpentry Computer Centre Bakery High vison Hall

Total:

Village Village Village Village Village

8 3 2 5 3
21

10 10 8 6 6

26 26 26 25 24

12 12 12 12 12

24960 9360 4992 9000 5184

53496

8 8 8 8 8

One unit at a time

Above mentioned end uses could be established with DEESs 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 HH lightening Agroprocessing Rural carpentry Computer Bakery High Hall Total Vision 25 kW 18kW 4.00 am 7.00 am 25 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 25 11.00 pm 4.00 am Remarks 9 hrs/day 10 hrs/day, 312 days/year operation 10 hrs/day, 312 days/year operation 8 hrs/day, 312 days/year operation 5 hrs/day, 300 days/year operation 6 hrs/day, 288 days/year operation 5 kW

8 kW 3 kW 2 kW 5 kW 3 kW 10kW

8 kW 3 kW

11 kW

11 kW

25 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

Frequency Voltage Pole Efficiency Power Factor Speed Over speed Connection AVR

Synchronous, 50 kVA 50 Hz 400 Volts, 3- phase 4 pole 86% 0.8 lagging 1500 rpm 180 % continuously Star 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 No. of poles Operating voltage Rated Current at 415V 4 pole with switched neutral 400 V 80 A MCCB after ELC 34pole with switched neutral 400 V 63 A

Breaking Capacity Frame Size

10kA GS

10kA 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 mm 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 poleto-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 Wooden Poles for 1 Tubular poles for phase L.T. phase l.T H.T. (Steel) No. of Poles 116 260 125 Spacing 35 m 35 m 50 m Pole Height 8m 7m 9m Min. ground 5 m 4.5 m 5.5 m clearance 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. 1 2 Size Small Medium Dimension 55 mm*55 mm 75mm*90mm Numbers 1070 units 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 consumers 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 Amount (NRs.) 52166 70773 1524498 basin & 152851 59908 141522 50224 2051942 66759 23850 88365 19284 933634 86091 36058 53157 30940 1118308 Local (NRS.) 14242 34783 686351

S.N. 1 2 3 4 5 6

Description of works Intake and Diversion Desilting basin Headrace Conveyance Forebay cum desilting Spillway Power House

Non Local (NRs.) 37924 35990 838147

Penstock Support & Anchor Blocks

7 Machine Foundation & Tailrace canal Total

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 Amount (NRs.) 38475 340700 333500 Local (NRS.) 0 0 0

S.N. Description of works 1 2 3 Trash rack and flushing Turbine, Drive System & Accessories Penstock and Accessories

Non Local (NRs.) 38475 340700 333500

4 5 6 7

Generator & Accessories Load Controller, Ballast & Main Switch ( Protection System) Transmission/Distribution Line Poles

195000 759200 2083427 1112800 320000 5183102

0 0 0 112800 0 112800

195000 759200 2083427 1000000 320000 5070302

8 Transformer Grand Total

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 1 Tools 2 3 4 Spare parts Transportation and Packing Installation & Commissioning Amount(Rs.) 16000 20000 427647 150000 Local (Rs.) 0 0 367647 0 Non-Local (Rs.) 16000 20000 60000 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 Amount (NRs.) Local (NRS.) Non (NRs.) Local % of Total cost

S.N. Description of works

1 2 3 4 5 6 7

Civil works Mechanical works Electrical works Tools Spare parts Transportation Installation Commissioning Sub Total Vat (13% of non local costs) Sub Total Contingencies 5% of TPC Total Project Cost Rs. &

2,051,942 712,675 4,470,427 16,000 20,000 427,647 150,000 7848691 836,499 8,685,190 0 9,048,746

933,634 0 112,800 0 0 367,647 0 1414081 0 1,414,081 0 1,414,081

1,118,308 712,675 4,357,627 16,000 20,000 60,000 150,000 6434610 836,499 7,271,109 363,555 7,634,665

22.68 7.88 49.40 0.18 0.22 4.73 1.66 86.74 9.24 95.98 4.02 100.00

Power output kW Cost per kW Rs. Total Beneficial HH Cost per HH Non Local Cost per kW

25 361,950 259 34,937 305,387

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 1 2 3 4 5 6 GoN / Subsidy DDC Investment VDC Investment Amount (Rs) 3562500 Share (%) 39.85 Remarks (@125,000 per kW+ 500 x 35 x per kW) 5 % of TPC 10 % of TPC

452437 904875

5.0 10.0 5.67 24.33 15.63 100.00

nec, CAROL and individual students 513353 investment Cash Collection 2201500 from community Community Equity

@ Rs.8500/HH (Total 259 HH) Local Costs

1414081 9048746

Total Source of Finance

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 2 3 4 5

Agro-processing Rural Carpentry Computer Centre Bakery High vison Hall

Total:

8 3 2 5 3
21

10 10 8 6 6

26 26 26 25 24

12 12 12 12 12

24960 9360 4992 9000 5184

53496

8 8 8 8 8

199680 74880 39936 72000 41472

427968

One unit at a time

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

259

25

28

12

75600

2 600000 1027968 201600 27

600000

Total Electrical Income from Household Lighting(Ilit) = Total Electrical Income (Annual) Ie : (Iind+Ilit) = Annual Energy Production Potential (kWh) = Productive End-uses (%) =

(336 days operation / year)

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. 1 Description Annuity Payment (Rs) Amount, Rs 322032 Remarks 12 % annual Interest & loan maturity period is 5 years

2 3 4 5 6 7

Depreciation (Rs) Recuring Annual Cost (Rs) Total Annual Cost (Rs) Net Annual Profit (Rs) Dividend to DDC (Rs) Dividend to VDC (Rs)

365750 327862 1015644 12324 616 1232

Straight line Calculation, (Total project cost - Subsidy) / 15

Total income - Total annual cost 5 % dividend as % of investment 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 IRR Pay Back Period = = = Rs. 453222.00 11 % 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 mobilizations 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

Lower Puwa Khola Micro Hydro Management Committee

Micro Hydro Plant Manager

Micro Hydro Plant Operator

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, Environmental Management Guidelines REDP, 1997 Financial Guide Line REDP, Nepal 1992

For more details please contact Mr. Vaibhav Pandey Email: pandey.baibhav@gmail.com Contact no: +977-9849525011 Research coordinator Centre for Advanced Research and Obligatory Learning, CAROL