decentralised local governance support programme · though there is a huge potential for mini hydro...

NEPAL

ANNUAL

PROGRESS REPORT 2018

Renewable Energy for

Rural Livelihood (RERL)

Removing barriers for increased utilization of renewable energy in Nepal

RERL is providing post -installation

support in micro hydro sector. This has

been helpful in making their organization

capable, management transparent and

efficient, thereby increasing revenue

generation.

OUR PARTNERS

December, 2018 ANNUAL PROGRESS REPORT

PROJECT PROFILE

About the Project Geographic coverage of the project

Project Title: Renewable Energy for Rural Livelihood

Award ID: 00076958

Web link: www.aepc.gov.np

National level coverage (Yes/No): Yes

Number of Provinces covered: NA

Number of Districts Covered: NA

Number of Municipalities Covered: NA

Number of Rural Municipalities Covered: NA

Strategic Results

UNDP Strategic Plan Outcome: Growth & development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded

UNDP Strategic Plan Output: Number and proportion of households benefitting from clean, affordable and sustainable energy access

Country Programme Outcome 1: By 2022, impoverished, especially economically vulnerable, unemployed and under-employed and vulnerable people, have increased access to sustainable livelihood, safe and decent employment and income opportunities

Country Programme Output 1.1.: Policy, institutional and capacity development solutions lead to improved disaster and climate resilient livelihoods, productive employment and increased productivity in rural areas

Country Programme Output Indicator 1.1.2: Number of households with energy access with UNDP-supported interventions (SDG7.1.1)

Project Duration Implementing Partner(s) Implementation Modality

Start Date: 21 July 2014

End Date: 30 June 2019

1. Ministry of Energy Water Resource and Irrigation (MoEWRI) / Alternative Energy Promotion Centre (AEPC)

National Implementation Modality (NIM)

Project Budget (USD)

UNDP Contribution: USD 2,000,000

Government Contribution: USD 30,312,500

Other Contributions: USD 24,249,600

Donor Contributions:

Donor 1: USD 3,000,000 (GEF)

Donor 2: USD 378,000 (Norwegian)

Donor 3: USD 99,269 (Korean)

Unfunded: USD 244,930

Total Project Budget: USD 35,312,500 (NPR 3,813,750,000)

Total Project Expenditure till 2018: USD 4,951,721.19

Budget 2018: USD 828,000

Expenditure 2018 (GEF & UNDP only): USD 820,643

Budget Utilization % (2018) 99%

Name: Satish Gautam Name: Nawa Raj Dhakal

Project Manager Acting Executive Director

Date: Date: 1 Feb 2019

http://www.aepc.gov.np/


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TABLE OF CONTENT

CONTENT PAGE NO

Abbreviation 4

List of Tables 6

1. EXECUTIVE SUMMARY 7

2. BACKGROUND AND RATIONALE 8

3. PROJECT SUMMARY AND OBJECTIVES 8

4. PROGRAMMEATIC REVISION 9

5. NARRATIVES ON KEY RESULTS ACHIEVED IN 2018 11

5.1 Progress toward the CPD Outcome 17

5.2 Progress on Project Outputs 28

6. BUDGET AND EXPENDITURE 46

7. CROSS CUTTING ISSUES 48

7.1 Targeting and Voice/Participation of target groups 48

7.2 Gender equality, Women’s empowerment and Social Inclusion 48

7.3 National Capacity Development 49

7.4 Sustainability 49

7.5 South- South and Triangular cooperation 51

7.6 Partnership 51

7.7 Promotion of civic engagement 51

7.8 Expanding Opportunities for Youth 52

7.9 Innovation 52

7.10 Knowledge Management and Products 53

8. LESSON LEARNED 53

9. IMPLEMENTATION ISSUES AND CHALLENGES 54

10. PRIORITIES FOR 2019 54

11. A SPECIFIC STORY 55

12. ISSUES AND RISK LOGS 56


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13. PROGRESS AGAINST ANNUAL WORKPLAN 60

14. ANNEX 71

Annex 1: List of Municipality (Demand for MEP) 71

Annex 2: List of Institutional Solar PV installed in 2018 71

Annex 3: List of Solar Mini Grid installed in 2018 72

Annex 4: List of Micro Hydropower Project installed in 2018 72

Annex 5: List of Rehabilitated Micro Hydropower Project 73

Annex 6: Photo Gallery 75


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ABBREVIATION

AEPC : Alternative Energy Promotion Centre

BFI : Banking and Financial Institutions

BoA : Business Opportunities Assessment

CAA : Country Action Agenda

CPP : Community Private Partnership

CREF : Central Renewable Energy Fund

CoP : Conference of Parties

DDC : District Development Committee

DEMP : District Eletrification Master Plan

DFS : Detailed Feasibility Study

DoED : Department of Energy Development

ESCO : Energy Service Companies

GEF : Global Environment Facility

GESI : Gender Equality and Social Inclusion

GIS : Geographic Information System

HEC : Hydro Energy Concern

HH : Household

IGA : Income Generating Activities

ISPV : Institutional Solar Photo Voltaic

IP : Investment Prospectus

kW : Kilowatt

MEP : Municipal Energy Plan

MHP : Micro Hydro Project

MoEWRI : Ministry of Energy, Water Resources and Irrigation

MW : Megawatt

NMHDA : Nepal Micro Hydro Development Association

MoU : Memorandum of Understanding


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MQAU : Monitoring and Quality Assurance Unit

MSME : Micro, Small & Medium Enterprises

NEA : Nepal Electricity Authority

NPC : National Planning Commission

NRREP : National Renewable Rural Energy Programme

PEUC : Productive Energy Use Component

POV : Power Output Verification

PPA : Power Purchase Agreement

PPP : Public Private Partnership

PV : Photo Voltaic

RE : Renewable Energy

RERA : Renewable Energy for Rural Area

RERL : Renewable Energy for Rural Likelihood

RET : Renewable Energy Technology

SASEC : South Asia Sub-regional Economic Cooperation

SDG : Sustainable Development Goal

SCECO : Salleri Chialsa Electricity Company

SEforALL : Sustainable Energy for ALL

SHS : Solar Home System

SPV : Special Purpose Vehicle

UNDP : United Nations Development Programme

UPEI : University of Prince Edward Island

UNDAF : United Nations Development Assistance Framework

UNESCAP : United Nations Economic and Social Commission for Asia and the Pacific

VDC : Village Development Committee

WB : The World Bank


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LIST OF TABLES

TABLE NO. TITLE PAGE NO

Table 1: Outcome and Output Statements 14

Table 2: Progress towards the UNDAF/CPAP Outcomes 17

Table 3: Financial Closure of Mini Hydro Projects 21

Table 4: Mini Hydro Project Under Construction 22

Table 5: Distribution of MHP by Rural/Urban Municipalities

24

Table 6: Vendor Financing Challenge Fund 25

Table 7: Progress on Output Indicators

28

Table 8: Output wise annual budget and corresponding expenditure

46

Table 9: Sources of funds Budget and Utilization of the project period 47

Table 10: M&E Expenditure: In 2018, Project spend on M&E activities

48

Table 11: Risk Log Matrix 56

Table 12: Issue Log Matrix 59

Table 11: Progress Against Annual Work Plan 2018 60


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1. EXECUTIVE SUMMARY

2018 has been a remarkable year for renewable energy as it has been mainstreamed in the White Paper of Ministry of Energy, Water Resources and Irrigation (MoEWRI). Moreover, as AEPC has now come under the jurisdiction of MoEWRI, it is expected that collaboration with Department of Electricity Development (DoED) and Nepal Electricity Authority (NEA), major government agencies mandated for electricity generation and distribution, all are under the same ministry. Further, the MoEWRI has taken initiative to draft AEPC’s Act that will insure AEPC’s autonomy and clarify its roles and responsibilities at federal, provincial and municipal levels. RERL helped AEPC to draft its Transition Paper reflecting the new context and provided inputs on Draft AEPC Bill to be submitted to Government of Nepal

Building on the Local Government Operation Act 2017, RERL supported Palungtar Municipality, Gorkha and Mahankal Rural Municipality, Lalitpur to prepare their Municipal Energy Plans (MEP) with focus on domestic uses such as clean cooking, lighting and operating household appliances, community systems for street lighting, community centers, schools and health centers and productive uses. Earlier, RERL had prepared the methodology for municipal energy planning which is followed by GIZ RERA to support 16 municipalities to prepare their MEPs.

In 2018, the guidelines for development of utility scale solar PV projects were finalized by a task force with representation from RERL/AEPC, DoED, MoEWRI and Nepal Electricity Authority (NEA). The document has been submitted to MoEWRI for endorsement and implementation. The guidelines cover aspects from project conception, survey, design, financing and applicable rules and regulations. It is expected that the guidelines will help both developers and regulators to align their expectations and come to common understanding on forms, formats, legal requirements, etc. for development of utility scale solar PV systems.

RERL is providing technical assistance to develop 4.3MW of mini hydro and 500kWp of solar mini grid projects under AEPC/SASEC with ADB funding. As of December 2018, 165kWp solar mini grid projects have been completed and 310kWp are under construction. RERL is supporting from survey, design, procurement, construction supervision to institution formation and strengthening, business opportunity assessment, financial closure and business plan preparation. For sustainable operation of mini hydropower projects developed with AEPC fund, RERL carried out a study on governance and management of mini hydro in Nepal and identified Salleri Chialsa Mini Hydropower Project as the most suitable model. To replicate this successful management system, AEPC and (SCECO), owner of Salleri Chialsa Mini Hydro Project, have signed an MoU. As per the MoU, AEPC will procure SCECO services for capacity development of AEPC supported mini hydro project personnel for smooth operation and management.

Based on the remarkable impacts of solar PV back-up system in health centers, supported by RERL under “energy for health”, UNDP provided additional financial assistance to procure and install 3kWp solar PV back up systems in 6 Snake Bite Treatment Centers operated by the Nepal Army and 3kWp solar systems in 4 Birthing Centers and 3 Health Centers established with UNICEF funding in Mugu district. The back-up system in Snake Bite Treatment Centers provide uninterrupted power supply to operate refrigerated storage for anti-snake venom vaccines whereas the fully equipped birthing centers were unable to provide services due lack of power supply.

After the successful interconnection of 23kW Syaurebhumi MHP, Nuwakot, with the national grid, RERL and AEPC supported interconnection of the 40kW Leguwa Khola MHP, Dhankuta, the 90 kW Chimal MHP, Tapjejung and the 100kW Midim Khola MHP, Lamjung were also interconnected with the grid in 2018. Interconnection of micro hydro with the grid helps generate additional revenue for the MHP and avoid transmission losses of NEA.

RERL worked with AEPC to complete 9 solar pumping projects funded by KfW. Altogether RERL supported AEPC to install 50 KfW funded PVPS projects benefiting 430 HHs.

Under its support for the private sector, RERL provided financial and technical assistance to Hydro Energy Concern (HEC) Pvt. Ltd, the contractor of the 200kW Simrutu Khola MHP, the 200kW Giri Khola MHP and the


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500kW Phawa Khola MHP. The Hydro Energy Concern has been involved in micro hydropower projects for over a decade but had limited experience in mini hydro. RERL is supporting HEC through CREF to remove cash flow constraint and help build up its financial management capacity.

RERL supported AEPC to formulate its productive energy use promotion modality, which helped women and marginalized communities to benefit from access to electricity by establishing enterprises and income generating activities with provision of additional financial assistance. Until now, 1,270 productive use enterprises have been established with financial assistance of AEPC; of which female entrepreneur operated 70 enterprises.

2. BACKGROUND AND RATIONALE Over 94.7% of the population of Nepal has access to electricity. However, in rural areas, it is only 70.7%. Most of the households in the country receive electricity from the national grid and about 23% from off-grid renewable energy sources such as Pico Hydro (<10kW), Micro Hydro (10 to 100kW) and Solar Home Systems (SHS)1. Though there is a huge potential for Mini Hydro (> 100kW), very few projects have been developed in the country in recent years due to technical and operational challenges. In areas where water is scarce making hydro power plant infeasible, larger solar Photo Voltaic (PV) systems have higher potential to contribute for economic growth of the energy deprived communities as compared to the SHS. The Government of Nepal (GoN) envisages providing clean cooking and lighting solutions to all by 2030, which is also a Sustainable Development Goal (SDG 7) and Sustainable Energy for All (SEforAll) target. This goal is expected to be met through both on-grid and off-grid energy solutions. UNDP through its Global Environment Facility (GEF) funded Renewable Energy for Rural Livelihood (RERL) project has been providing technical support to the Alternative Energy Promotion Centre (AEPC) to promote mini/micro hydro and large Solar PV Systems apart from the promotion of mini grid, productive energy uses and establishing a mechanism for project development under Public Private Partnership (PPP) modality.

3. PROJECT SUMMARY AND OBJECTIVES

The Renewable Energy for Rural Livelihood (RERL) project is funded by Global Environment Facility (GEF) and United Nations Development Programme (UNDP) and executed by Alternative Energy Promotion Centre (AEPC) under the Ministry of Energy, Water Resources and Irrigation (MoEWRI), GoN. RERL was developed as an integral part of the AEPC’s National Rural and Renewable Energy Programme (NRREP), 2012-2017. NRREP was a single programme framework agreed by GoN and development partners dedicated for the development and promotion of renewable energy. Beside NRREP, RERL has been supporting Asian Development Bank (ADB) funded (SASEC) Programme of AEPC to develop mini hydro and solar mini grid projects. The main objective of RERL is to support AEPC to remove barriers for scaling up lesser disseminated larger renewable energy systems such as mini hydro, large micro hydro and large solar PV systems. RERL has been supporting the development of sustainable implementation modalities such as demonstration projects, private sector involvement for financing and attainment of financial sustainability through promotion of productive energy uses. The project-wise targets for RERL are providing technical assistance to develop mini/micro hydropower projects with the total installed capacity of 10 MW and Large Solar PV Systems of 2.5 MW. Among this, RERL’s target is to directly support beneficiaries to develop 1 MW of mini hydro and 0.5 MW of solar PV as demonstration projects.

1 Data Source: Draft Multi Tier Framework 2019


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4. PROGRAMMEATIC REVISION

NA

Theory of Change RERL was launched by GoN, GEF and UNDP to remove the barriers in policy, financing, sustainability and capacity to promote less disseminated renewable energy technologies such as mini hydro (>100-1000 kW), large micro hydro (>60kW), large solar PV (mini grid, institutional and pumping) and mini grids interconnecting several micro hydropower plants. The roles and responsibilities of main beneficiary institutions as describe in the project document have changed after the promulgation of Constitution of Nepal 2015. In the new context, the mandate to develop renewable energy (RE) and hydropower projects up to 1000 kW has been given to the Municipality. In this regard, RERL helped draft roles and responsibilities of different levels of governments for RE, which was incorporated in the Local Government Operation Act 2017. However, local governments have limited technical and managerial capacities to effectively carry out their roles as mandated by the Act. In this line, RERL has drafted a methodology for the Municipal Energy Plan (MEP), which assesses energy supply and demand, and identifies financially feasible options to meet targets of the SDG 7 and the White Paper of MoEWRI of reliable and affordable clean energy solutions for lighting and cooking for all by 2030. It is expected that removing barriers in policy and institutional arrangements will help promote mini hydro and large solar PV systems by attracting private investment through Public Private Partnership arrangement by forming Special Purpose Vehicle, which has already been incorporated in the Renewable Energy Subsidy Policy 2016. Furthermore, RERL has supported to establish public limited companies to develop Tara Khola and Bom Khola Mini Hydropower Projects. One of the main barriers for attracting private investment in RE projects in rural areas is the Banks and Financial Institutions (BFIs) high risks perceptions of community owned and managed systems in general and in remote areas in particular. RERL and Central Renewable Energy Fund (CREF) have developed innovative financial instruments such as soft credit, credit guarantee, vendor financing and credit insurance to reduce the risks of BFIs in RE investments. RERL has supported developers of 6 mini hydropower projects to successfully achieve financial closure of their projects. Another major reason for the lack of private investment in RE sector is low returns on investment (RoI). Once demonstration project is completed, it is expected that the private sector will see the benefits in investing in renewable energy in rural areas. To enhance revenue generation from RE projects, RERL has been working closely with AEPC to develop mechanisms for promotion of productive energy uses. Moreover, RERL has also been supporting women and marginalized communities to benefit from electricity by establishing enterprises and income generating activities and switching from firewood to electricity for cooking and other household energy needs. RERL is also supporting in capacity enhancement of governmental agencies, local and provincial governments, private sector and beneficiaries. Support for private sector is geared towards development of in-country expertise related to deployment RE technologies, governmental agencies for planning and policy and beneficiaries for smooth operation and management of RE systems.


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FIVE KEY RESULT ACHIEVED IN 2018

• 30 Trainings and Orientations Conducted

o 654 Male Participants

o 248 Female Participants

• Financial Closure of 6 mini hydropower projects, 2MW with

USD 713,400 loan of total project cost USD 5,920,963

• 2MW Mini Hydropower Projects under construction

• 165kWp Solar Mini Grid completed & 310kWp under construction

• Solar PV solution for

7 Health & Birthing Centers

6 Snake Bite Treatment Centers

50 water pumping projects with KfW fund – 9 in 2018

• 4 Micro Hydro Plant interconnected to National Grid – 2 in 2018

• Renewable Energy Mainstreamed in the White Paper of MoEWRI 2018

• Draft AEPC Bill

• Draft 15th Plan

• Update of CBS Statistics for RE

• Local Government Operation Act 2017

• Municipal Energy Plan

• Grid Interconnection of RE Projects

• Surplus Electricity Export

Outcome 1: Policy

& Institutions -

Significant

Progress Towards

Mainstreaming

Renewable Energy

in Nepal

Outcome 2:

Demonstration

Projects - Access of

Clean, Reliable &

Affordable Modern

Energy Services

in Nepal

Outcome 3: RE

financing

instruments - BFI

Investment

Outcome 4:

Capacity

Development

1

2

3

4


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5. NARRATIVE ON KEY RESULTS ACHIEVED IN 2018

In 2018, significant progress was made towards mainstreaming renewable energy in Nepal as clearly indicated in the White Paper of MOEWRI and the draft AEPC Act, both of which see renewable energy (RE) not only as an alternative to commercial energy sources but also as one of the main contributors in energy mix of the country and an indigenous resource supporting towards energy security.

Policy and Institution: RERL has extensively helped AEPC to reposition itself in the changed federal context by drafting AEPC’s Transition Paper and detailing its roles and responsibilities at federal, provincial and municipal levels which in general have been incorporated in draft AEPC Bill, which has been submitted to MoEWRI for further processing. RERL also helped AEPC to prepare its Support Package for Local and Provincial Governments for promotion of RE in Nepal and organize orientations to officials of provincial governments and municipalities in Provinces 1, 2, 4, 6 and 7.

Building on the Local Government Operation Act 2017, RERL worked closely with (i) Palungtar Municipality, Gorkha and (ii) Mahankal Rular Municipality to draft their Municipal Energy Plans (MEP) with focus on domestic uses such as clean cooking, lighting and operating household appliances, community systems for street lighting, community centers, schools and health centers and productive uses. The methodology thus developed has been adopted by GIZ supported Renewable Energy for Rural Area (RERA) project to prepare MEP of 14 municipalities of Provinces 1 and 7. In the meanwhile, realizing the benefits of having periodic energy plans, other municipalities have approached AEPC/RERL to help them prepare their MEPs.

In 2018, RERL received demand from 11 municipalities from Provinces 2, 3 and 4 to prepare their MEPs and have already allocated NPR. 1,800,000, list of municipalities is provided in Annex 1. In line with the Local Government Operation Act 2017, AEPC /RERL/SASEC are working closely with respective municipalities to develop demonstration projects. Municipalities are not participating as subsidy providers in these projects but as investors/developers and their capacities are also improving along the way.

RERL in collaboration with Practical Action Consultancy had prepared a case study of mini hydropower projects in Nepal in July 2017, covering 8 projects managed by Nepal Electricity Authority (NEA), community and private companies. The study identified the governance and management of the 603kW Salleri Chialsa Mini Hydropower Project, which has been in operation since 1989, as the best in the country. In 2018, to replicate this successful management system, a memorandum of understanding (MoU) was signed by AEPC and Salleri Chialsa Electricity Company (SCECO), owner of Salleri Chialsa Mini Hydro Project. As per the MoU, AEPC will procure SCECO services for capacity development of AEPC supported mini hydro project personnel for smooth operation and management.

On the request of Department of Electricity Development (DoED), RERL/AEPC initiated development of “Guidelines for Utility Scale Solar PV Project” in 2017. The guidelines were finalized by a task force with representation from RERL/AEPC, DoED, Ministry of Energy, Water Resources and Irrigation (MoEWRI) and NEA in September 2018. The document has been submitted to MoEWRI for endorsement and implementation. The guidelines cover aspects from project conception, survey, design, financing and applicable rules and regulations related to development of utility scale solar PV projects. The document was widely shared with stakeholders including the private sector and finalized.

Demonstration Projects: RERL and SASEC are working together to develop 2.35MW of mini hydro and 500kWp of solar mini grid projects, out of which 165kWp solar mini grid projects are completed and 310kWp are under construction. RERL is mainly providing technical assistance for survey, design, procurement, construction supervision, institution formation and strengthening, business opportunity assessment, financial closure and business plan preparation.

These projects have been developed under public-private-partnership (PPP) modality with financial contribution of the government, commercial banks, municipalities and beneficiary communities. It is expected that these projects will not only generate enough revenue to hire professionals for day-to-day


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operations but also pay back their loans on time, reducing perceived risk of investing in community owned renewable energy systems in remote locations.

In 2018, RERL worked with AEPC to complete 9 solar pumping projects funded by KfW, German Development Bank. Altogether RERL supported AEPC to install 50 KfW funded Photo Voltaic Pumping Systems (PVPS) benefiting 430 HHs.

Based on the remarkable impacts of solar PV back-up system in health centers supported by RERL under “energy for health”in 2017 and early 2018, UNDP provided additional financial assistance to procure and install 3kWp solar PV back-up systems in 6 Snake Bite Treatment Centers operated by the Nepal Army and 3kWp solar systems in 4 Birthing Centers and 3 health centers established with UNICEF funding in Mugu district. The back-up system in Snake Bite Treatment Centers provide uninterrupted power supply to operate refrigerated storage for anti-snake venom vaccines whereas the fully equipped birthing centers were unable to provide services due to lack of power supply. With RERL support these birthing centers were able to integrate waste management by installing autoclaves.

After the successful interconnection of 23kW Syaurebhumi MHP inNuwakot district with the national grid, RERL and AEPC supported interconnection of the 40kW Leguwa Khola MHP, Dhankuta, the 90 kW Chimal MHP, Tapjejung and the 100kW Midim Khola MHP, Lamjung with the grid in 2018. Interconnection of micro hydro with the grid helps generating additional revenue for the MHP and avoid transmission losses of NEA. Furthermore, having generation systems at the end of the line helps improve both voltage quality and system reliability. Based on the experience, NEA and AEPC will gradually grid connect other MHPs as the grid encroaches MHP service areas. AEPC has allocated budget to carry to feasibility study of grid interconnection of 25 micro hydropower plant.

Private Investment in RE Projects: CREF, with RERL support, has established innovative financial instruments such as soft credit, credit guarantee and insurance to reduce the risks of BFIs to invest in RE projects. With the provision of credit guarantee mechanisms, RERL and SASEC have been able to achieve financial closure of 6 mini hydropower projects so far through credit from commercial banks amounting to USD 26 million. In 2018, financial closure of the 500kW Khatyad Khola Mini Hydropower Project was

achieved.

To ensure that women maximize benefits from access to electricity, RERL is supporting women from

each beneficiary household of the 200kW Simrutu Khola Mini Hydropower Project to engage in micro

financing activities. Women will directly benefit from access to finance and indirectly from group organization and management. It envisaged that after active participation in micro financing, women will be able to take up leadership positions in the cooperative responsible for operation and management of the mini hydro projects.

To demonstrate financial viability of MHPs, RERL has been supporting 25 MHPs in five districts for

commercial operation wherein the micro hydro is seen not only as a social infrastructure but also as a commercially feasible enterprise. RERL support includes community mobilization, institutionalization of MHPs and end use promotion. After RERL intervention, the monthly revenue collection of 83 kW Darna MHP in one of the most remote districts of Nepal (Achham) has increased five folds from a meagre NPR 25,000, due to regular tariff payment and electricity export to a nearby village. This intervention also shows that with more reliable services, customers are willing to pay even increased tariffs and with proper incentives, staff are willing to work harder. According to Ms. Bhakti Thakulla, Meter Reader, post commercialization of the Darna MHP, salary is paid on time and there are other incentives provisioned by the Cooperative for its staff.


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Besides, 315 beneficiary women are also engaged in saving and credit scheme where they save up to NPR. 100 a month and their total savings so far is over NPR. 100,000. The women’s cooperative intends to initiate lending to members for income generating activities soon.

Capacity Development: RERL has been designed to assist in building up AEPC’s capacity for wide scale promotion of larger RETs. RERL is working closely with AEPC’s Monitoring and Quality Assurance (MQA) Unit to institutionalize different quality assurance mechanisms related to mini/micro hydro and solar PV. RERL developed Sustainability Framework for Mini/Micro Hydro and relevant forms and formats for total quality management of both mini/micro hydro and solar PV related activities of AEPC. These systems will be internalized in AEPC in coming years. In 2018, RERL and MQA unit jointly carried out the field monitoring training for 60 independent engineers.

Center Renewable Energy Fund Component

Technical Support

Component

Planning and Institution Component

Biogas Biomass Solar Community Electrification

Productive Energy Use

Gender & Social Inclusion

Climate Carbon

AEPC

Monitoring & Quality

Assurance Information

Community Private Partnership (CPP)Model In 2018, the 29kW Simli MHP, West Rukum, Karnali Province was leased out to Mr. Moti Ram Roka, a local entrepreneur, for day to day operation and management for an annual fee of NPR. 84,000. The community decided to lease out their plant as it was generating only about NPR. 20,000 a month which was hardly enough to meet the operating costs. After taking over the management of the plant, Mr. Roka focused on increasing the number of productive use enterprises to maximize revenue. As of December 2018, Simli MHP is powering more than 40 enterprises, of which only 12 received government subsidy and the rest were established by entrepreneurs themselves. The enterprises thus established include eateries, lodges, tailoring shops, jewelry stores, beauty parlor, among others. In addition, there is 1 offset press, an automobile repair workshop and a health post powered by the MHP. Moreover, 60 different enterprises are also benefiting from better lighting in Simli Bazar. Out of 102 enterprises recorded in December 2018, 24 are owned by women and 78 by men. Altogether, these enterprises employ 96 men and 49 women. The credit for the sharp increase in number of enterprises goes to reliable electricity supply, as Mr. Roka is fully aware that his income is directly tied up with reliable supply. Mr. Roka makes NPR 75,000 from electricity sales and gives NPR 7,000 to the community as per the lease agreement. He further informed that a couple of other MHPs have also shown interest in this “community owned and privately managed model”.


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In 2018, RERL provided financial and technical support to Hydro Energy Concern (HEC) Pvt. Ltd, the contractor of the 200kW Simrutu Khola MHP, the 200kW Giri Khola MHP and the 500kW Phawa Khola MHP. The Hydro Energy Concern has been involved in micro hydropower projects for over a decade but had limited experience in mini hydro. RERL is supporting HEC through CREF to remove cash flow constraint and help improve its financial management capacity.

Another significant RERL support for the private sector capacity development includes Preesu Electronics Pvt. Ltd and Techno Village Pvt. Ltd in both grid connections of MHP and MHP to MHP interconnection. RERL provided extensive technical support to both companies to successfully complete grid connection of 4 MHPs and establishment of Taplejung Mini Grid interconnecting 3 MHPs. Further, RERL/AEPC are working with University of Prince Edward Island (UPEI) and Kathmandu Engineering College to develop load controllers for both grid connection of MHP, MHP to MHP interconnection in collaboration with AKA Pvt. Ltd, Canada. The AKA Canada is willing to share intellectual property related to electronic load controllers with Nepali private companies.

RERL has prepared guidelines/manual for development and management of mini hydropower projects. With the support of Salleri Chialsa Electricity Company, RERL organized a training for SASEC supported mini hydro projects on governance and management of mini hydro.

GESI: RERL supported AEPC to formulate its productive energy use promotion modality, which helped women and marginalized communities to benefit from access to electricity by establishing enterprises and income generating activities with provision of additional financial assistance. Until now, 1,270 productive use enterprises have been established with financial assistance of AEPC; of which women own 70.

In order to bring direct impact on women empowerment, socio-economic development and ultimately

reduce the poverty by involving them in income generating activities, RERL is supporting Simrutu Khola Mini Hydro Cooperative Limited to implement micro finance activities at the vicinity of their local grid coverage. So far, in this cooperative 900 women and 70 male members are involved in regular saving and credit activities from 43 micro finance groups.

RERL has been providing training on account keeping, business management, marketing, etc. every year targeting women entrepreneurs so far 248 women have been trained. Details of capacity development activities is discussed below.

Following table shows the linkage of outcome and output statements of the project:

Table 1: Outcome and Output Statements

Outcome Statement Output Statement

CPD Outcome 1: By 2022, impoverished, especially economically vulnerable, unemployed and under-employed and vulnerable people, have increased access to sustainable livelihoods, safe and decent employment and income opportunities.

Output 1.1: Policy, institutional and capacity development solutions lead to improved disaster and climate resilient livelihoods, productive employment and increased productivity in rural areas.

UNDP Output 1.1.2. Number of households with energy access with UNDP supported interventions (SDG 7.1.1)

Project Outcome 1: Strengthened legal, institutional and policy environment to support RE

Output 1.1: Approved and enforced policy that enables PPP model for mini hydro and large scale solar PV development, including fiscal incentives and sustainability for possible changes in Nepal government structure


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and other low – carbon technology development and utilization

Output 1.2: Methodology and database developed and made available for incorporating mini hydro and large scale solar PV systems into district RE plans

Output 1.3: Completed training and awareness programme for relevant government agencies and stakeholders on mini hydro and large scale solar PV systems development and productive end use

Project Outcome 2: Increased investment in RE

Output 2a.1: Commissioned mini hydro demonstration projects totaling 1 MW through PPP model

Output 2a.2: Commissioned mini grid demonstration projects totaling 300 kW

Output 2a.3: Commissioned large scale solar PV demonstration projects totaling 500 kW

Output 2b.1: Demonstrated PPP models facilitating cooperation between private sector, public sector, and local organizations through establishment of Special Purpose Vehicles (SPV) in three selected mini hydro project (1MW)

Output 2b.2: Demonstrated financially sustainable and reliable mini grid connecting 10 micro hydro systems (300 kW)

Output 2b.3: Demonstrated financially sustainable and reliable large scale solar PV system (300 kW)

Output 2b.4: Operationalized 2 MW of off- grid large micro hydro (over 60 kW) power projects demonstrating cost advantage feasibility, productive end use, and best practice through technical assistance

Output 2b.5: Completed financial closure of 7 MW of off-grid mini-hydro power projects replicating PPP model through establishment of SPVs, demonstrating cost-advantage, feasibility, productive end-uses, and best practice through technical assistance

Output 2b.6: Completed financial closure of 2 MW of large scale solar PV systems, demonstrating cost advantage over smaller PV systems, feasibility, productive end-uses, and best practice through technical assistance

Project Outcome 3a: Improved availability of financial investment supports for rural RE and other low-carbon technology applications

Output 3a.1: Established a wholesale financing instrument to incentivize Banking and Financial Institutions (BFIs) for financing domestic manufacturers to meet growing orders and be cost competitive

Output 3a.2: Established a wholesale financing instrument to incentivize Banking and Financial Institutions (BFIs) to promote


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commercial financing for mini-hydro and large-scale solar PV projects

Project Outcome 3b: Improved design and packaging of investment support mechanisms for rural RE and other low-carbon technology applications

Output 3b.1: Designed and provided technical support for financing platforms and services for promoting commercial financing for domestic manufacturers

Output 3b.2: Designed and provided technical support for financing platforms and services for promoting commercial financing for mini-hydro and large-scale solar PV projects

Output 3b.3: Developed training materials on mini-hydro and large-scale solar PV projects for financing institutions

Output 3b.4: Created matchmaking platform for mini-hydro and large-scale solar PV developers, financing institutions, and equity investors, and productive end users

Output 3b.5: Established functional enterprises adopting productive use of electricity

Output 3b.6: Operationalized mechanism to promote financial products for entrepreneurs/end users

Output 3b.7: Ensured women and marginalized/vulnerable groups own 33% of the functional electricity based enterprises established

Project Outcome 4: Enhanced capacities and skill of various stakeholders in the RE sector

Output 4.1: Established database of technical specifications for the design, manufacture of micro hydro (60+ kW) and mini hydro , installation and after sales service in micro hydro (60+ kW) and large scale solar PV systems

Output 4.2: Fully trained skilled and technically capable people available for project identification, feasibility studies and detail design of mini hydro projects

Output 4.3: Fully trained, skilled and technically capable mini hydro manufacturers in identified areas with after sales services

Output 4.4: Fully trained, skilled and technically capable construction and installation teams within companies to improve quality of installed mini hydro projects and large solar PV system

Output 4.5: Fully trained, skilled and technically capable people available for operation, maintenance and business management of mini hydro projects and large scale solar PV systems


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5.1. PROGRESS TOWARDS THE CPD OUTCOMES

Table 2: Progress on Outcome Indicators

Outcome statement Outcome indicator

Baseline Cumulative Target for

2013 - 2017

Total target achieved till

2017

Milestone for 2018, if

any

Achievement 2018

Year for the

latest data

Source of data

Country Programme Output 1.1 Policy, institutional and capacity development solutions lead to improved disaster and climate resilient livelihoods, productive employment and increased productivity in rural areas

Number of households with energy access with UNDP supported interventions (SDG 7.1.1)

50,261 HHs

25,000 HHs connected to energy services

50,261 HHs benefitted (2013 = 11,965, 2014 = 8,351, 2015 = 3,843, 2016 = 14,407 2017 = 11,695)

5,000 households with electricity access

Micro Hydropower Plant:

28 MHPs installed, benefited 11,367 HHs

Solar Mini Grid:

3 Solar Mini Grid installed, benefited 163 HHs

In 2018:

Total 11,530 new HHs connected to electricity

2018 RERL MIS


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Progress towards Outcome 1: Strengthened legal, institutional and policy environment to support RE and other low – carbon technology development and utilization

Outcome 1: This outcome is focused on enhancing the investment environment for mini hydro and large PV technologies by providing policy supports to the government along with support for policy planning and enhancing information availability for policy decisions. The project will support formulation and adoption of policy that will create positive environment for a public-private partnership (PPP) model to attract investment in mini hydro and large scale solar PV systems. Furthermore, the project will support the local government to prepare energy planning. The project will also emphasize capacity development of government officials at all level.

Progress on Output 1.1: Approved and enforced policy that enables PPP model for mini hydro and large scale solar PV development, including fiscal incentives and sustainability for possible changes in Nepal government structure

For a wider renewable energy promotion in Nepal, RERL supported AEPC to prepare new RE subsidy policy and delivery mechanism 2016. The policy is expected to reduce the initial upfront cost of renewable energy, promote productive use of energy, inject credit into the renewable energy sector, encourage private sector participation as well as improve access to cleaner and modern energy services benefitting particularly women, vulnerable communities and socially excluded groups. The new policy mainly focuses on gradually replacing subsidy by credit in the long-term. Similarly, it focuses on further scaling up of RETs and achieving the targets of the Sustainable Development Goals 7 and the White Paper 2018 of MoEWRI. Furthermore, in line with the new subsidy policy, RERL has supported to establish public limited companies to develop Tara Khola and Bom Khola Mini Hydropower Projects and helped CREF to achieved financial closure of 6 mini hydropower projects by mobilizing bank credit.

Furthermore, the new RE subsidy policy introduce a Best Available Technology (BAT) which define as the least cost option/s (Best Available Technology) for given energy services/set of services. Technologies include both on-grid and off-grid solutions, for example cooking energy could be biogas or fuel wood used in an Improved Cooking Stove (ICS) or grid/off-grid electricity or a combination of these energy sources depending on the demand and supply. Least cost option takes into consideration the lifetime cost of all available technological options; not only the upfront cost but also operation and maintenance cost, insurance, cost for replacement /renovation, efficiency and losses, etc. are taken into account to ascertain the least cost option. For this, RERL supported AEPC to develop the BAT model for rural areas.

In 2018, RERL supported AEPC to draft its Transition Paper reflecting the new context and provided inputs on Draft AEPC Bill to be submitted to Government of Nepal. In line with the roles and responsibilities given by the constitution to local, provincial and federal levels, RERL helped AEPC to develop the Support Package for Local and Provincial Governments for promotion of RE in Nepal. Support package includes model RE policy, methodology for MEP preparation, forms and formats for subsidy processing, etc. AEPC has signed separate MoUs with all 7 provincial governments to jointly promote renewable energy activities. In fiscal year 2018/19, AEPC has provided Conditional Grant to all 753 local and 7 provincial governments to support RE projects and activities.

UNDP Delegation: On 27 March 2018, a high-level UNDP official from headquarters and Chinese Embassy, Kathmandu visited Sindhupalchowk district to observe UNDP supported post-earthquake relief and recovery activities. The delegation accompanied by Deputy Country Director (DCD) and Assistant Country Director (ACD) of UNDP Nepal also visited the premises of the District Coordination Committee (DCC). UNDP had provided 3 prefabricated buildings for office use and solar PV system for lighting and operating equipment.


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GEF Mission: UNDP GEF Regional Focal Person Ms. Usha Rao visited Nepal from January 21- 27, 2018. The visit aimed to observe and understand RERL activities and progresses and potential for GEF 7 RE projects. Ms. Rao visited the 12kW Daunne Khola Micro Hydropower Plan. In the same occasion, RERL organized the stakeholder Consultation Meeting. The main objective of the meeting was to share RERL progress and impact and partnership with different governmental organizations and development partners.

UNDP, GEF and AEPC agreed in principle to prepare documents for GEF 7 to formulation a follow-up project aiming at the demand side management such as clean cooking, electric mobility as well as commercialization of RE projects

with involvement of private sector and BFIs.

Progress on Output 1.2: Methodology and database developed and made available for incorporating mini hydro and large scale solar PV systems into district RE plans

In line with the roles and responsibilities given by the constitution to local, provincial and federal levels, RERL/AEPC prepared methodology for preparation of Municipal Energy Plan (MEP) with focus on domestic consumption, including clean cooking, lighting and operating household appliances, community systems for street lighting, community centers, schools and health centers and productive uses. The MEP preparation process starts at the Ward level where the status of electrification and cooking fuel in use in each ward is identified and the cost effective alternatives among grid extension, mini/micro hydro, solar PV, biogas and improved cooking stove is analyzed. Aggregation of Ward level plans is the basis for the Municipal Energy Plan, which is GIS based. This methodology has also been adopted by GIZ funded RERA project of AEPC.

RERL directly provided assistance to 2 municipalities and RERA supported 14 municipalities of Provinces 1 and 7 (RERA working areas) to prepare their MEPs in 2018. RERL presented MEP preparation methodology in the orientation to municipalities of Province 2 and Jumla district organized by AEPC. After the orientation, the participants realized the importance of MEP and expressed their desire to prepare similar plans for their municipalities.

In 2018, AEPC provided conditional grant of USD 8,906,165 to 753 local governments for renewable energy development at the local level, out of which, a total of USD 1,819,642 was allocated for policy, planning, management and administration of the overall activity. This allocated amount can be used to prepare municipal energy plans. In future, such conditional grants to local governments will be based on their MEPs.

Likewise, AEPC provided conditional grant of USD 535,741 to provincial governments for development of renewable energy projects. In this regards, RERL carried out assessment of electricity supply and consumption of Ministry of Physical Infrastructure Development of Provinces 1, 2 and 7 for designing solar PV back up systems. Part of the conditional grant could be utilized to install solar PV back up systems.

Progress on Output 1.3: Completed training and awareness programmes for relevant government agencies and stakeholders on mini hydro and large scale solar PV systems development and productive end use

As large scale solar PV system is rare in Nepal, RERL has been providing orientation and training to engineers from different government agencies such as Nepal Electricity Authority (NEA), Department of Electricity Development (DoED) and Ministry of Energy, Water Resources and Irrigation (MoEWRI) on project conception, survey, design, financing, etc. Upon the request of DoED and NEA, RERL and AEPC drafted Guidelines for “Utility Scale Solar PV Project” in 2017 which was finalized through wide stakeholders including the private sector consultation. The final guidelines were submitted to MoEWRI in 2018 for endorsement and implementation. Further, a one-day workshop was organized on 3 August 2018 for government and private sector engineers to orient them on different aspects of utility scale solar PV projects


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developments and experiences of other countries mainly India. Likewise, RERL provided training on "MW Scale Solar PV" to 14 engineers from Nepal Telecom, Nepal Electricity Authority, Water Energy and Commission Secretariat and Private Sector and “Grid connection of MHP and Solar PV” to 20 AEPC personnel. The training covered selection of solar array, inverter, row spacing calculation, losses in PV system and experience from MHP grid interconnection. These trainings will help promotion of large solar PV system in the country.

As in the new federal context the mandate for the promotion of renewable energy and hydropower projects up to 1 MW has been given to the municipality, RERL supported AEPC to organize orientation on RE development to representatives of Provincial Governments and parliamentarians of Provinces 1,2,4,6 and 7. The orientation included presentations on renewable energy technologies; status of AEPC supported projects in the province and roles and responsibilities of provincial and local governments.

RERL in collaboration with Practical Action Consultancy had prepared a case study of mini hydropower projects in Nepal in July 2017, covering 8 projects managed by Nepal Electricity Authority, community and private companies. The study identified the governance and management of the 603kW Salleri Chialsa Mini Hydropower Project, which has been in operation since 1989, as the best in the country. In 2018, to replicate this successful management system, AEPC and Salleri Chialsa Electricity Company (SCECO), owner of Salleri Chialsa Mini Hydro Project, signed a MoU. As per the MoU, AEPC will procure SCECO services for capacity development of AEPC supported mini hydro project personnel for smooth operation and management. SCECO provided orientation on their operation and management system to personnel of 6 mini hydropower projects funded by AEPC/SASEC. Likewise, selected managers and operators of Simrutu Khola and Tara Khola mini hydro projects were provided onsite operation and management training in Salleri.

Knowledge Sharing Event: Renewable Energy for Rural Livelihood (RERL) and Nepal Micro Hydro Development Association (NMHDA) jointly organized Knowledge Sharing Event on 13 April 2018. The event aimed to share breakthrough achievements of RERL/AEPC in grid interconnection of Micro Hydro and Roles of Private Sector in promoting renewable energy in federal context. Speaking during the programme, Minister of Energy, Water Resources and Irrigation (MoEWRI) Mr. Barsha Man Pun welcomed the fact that a micro hydropower plant had been interconnected with the National Grid and promised to make necessary changes in the policy to encourage similar interconnections all over the country. Moreover, he emphasized renewable energy should not be taken as an alternative to the grid but seen as a complete solution for rural households in off grid areas. The event included presentations of technical papers and panel discussions on grid interconnection of MHPs and private sectors role in federal context.


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Climate Launchpad 2018: Climate Launchpad, the world’s leading green business ideas competition, was hosted for the first time in Nepal from 17 to 24 August 2018. The event was organized by Emerging Technologies Pvt. Ltd. in collaboration with the Government of Nepal, UNDP,, German Development Cooperation, Wind Power Nepal, Sagarmatha Cement, Nepal Insurance Company, Thames International College, and SUN Urja Nepal. This annual competition aims to provide a platform for helping aspiring entrepreneurs grow their green ideas into global businesses to address Climate Change. The Climate

Launchpad 2018 in Nepal had 58 applications, out of which only 12 teams were selected to take part in the Boot Camp – the intensive training for the selected participants ahead of the competition. Following the first two rounds of competition, the national grand finale selected top 3 teams to represent Nepal in the Global Grand Finale in the UK in November 2018.

Progress towards Outcome 2: Increased investment in RE

This outcome deals with increased investment in RE projects with demonstration of technically sound and financially viable 1MW of mini hydropower projects. In this regard, RERL has been working with Central Renewable Energy Fund (CREF) of AEPC to establish financial instruments such as credit guarantee, vendor financing, credit insurance, etc. to attract private investment in renewable energy projects.

RERL is working with SASEC to develop mini hydro and solar mini grid projects. In this arrangement, SASEC provides financial assistance (both loan and subsidy) to develop these projects and RERL provides technical assistance to achieve financial closure. The following projects have achieved financial closure.

Table 3: Financial Closure of Mini Hydro Projects

Progress on Output2b.1: Demonstrated PPP models facilitating cooperation between private and public sector organizations through establishment of Special Purpose Vehicles (SPV) in three selected mini hydro projects (1 MW)

Community owned and managed RE projects are seen by both BFIs and private developers as highly risky and are averse to invest in such projects. RERL project document clearly mentions involvement of the private

S.N. Project District Capacity (kW) HH

1. Simrutu Khola Rukum 200 1386

2. Giri Khola Jumla 200 1840

3. Tara Khola Baglung 394 2200

4. Phawa Khola Taplejung 500 2093

5. Khatyad Khola Mugu 500 3200

6. Lower Bom Solukhumbu 200 620

Total 1,994 11,339


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sector in demonstration projects by establishing Special Purpose Vehicles (SPV), private companies or cooperatives, for sustainable operation and management. It is expected that after completion of demonstration projects the private sector, both BFIs and Energy Service Companies (ESCO) will be more willing to invest in renewable energy projects in rural areas. The following mini hydropower projects supported by RERL/SASEC/AEPC are expected to be completed in 2019.

Table 4: Mini Hydro Projects Under Construction

Projects District kW HHs Funding

Simrutu Khola Rukum 200 1300 SASEC

Tara Khola Baglung 384 2200 AEPC

Giri Khola Jumla 200 1840 SASEC

Phawa Khola Taplejung 500 2093 SASEC

Lower Bom Khola Solukhumbu 300 300 SASEC

Khatyad Khola Mugu 500 3200 SASEC

Total 2,048 10,933

Progress on Output 2b.2: Demonstrated a financially sustainable and reliable mini grid connecting 300 kW micro hydro systems

RERL is supporting AEPC to implement Taplejung Mini Grid Project interconnecting 5 mini/micro hydropower plants and grid connection. RERL finalized the detailed feasibility study of the project and helped establish Taplejung Mini Grid Development Functional Group. RERL also designed control and protection system for interconnection and parallel operation of micro hydro power plants and grid connection. The project has 37km of 11kV transmission line that connects all 5 MHPs to the national grid. In December 2018, 3 of the 5 MHPs were successfully interconnected. The mini grid project will be completed after the commissioning of the 500kW Phawa Khola Mini Hydro Project. Grid connecting of interconnected MHPs will help generate additional revenue for the MHP and avoid transmission losses of NEA.

After the breakthrough achievement of grid interconnection of 23kW Syaurebhumi MHP in Nuwakot, RERL assisted to interconnect 40kW Leguwa Khola MHP, Dhankuta, 90 kW Chimal MHP, Tapjejung and 100kW Midim Khola MHP, Lamjung with the national grid in 2018. With the grid interconnection, the Plant Load Factor (PLF) of Syaurebhumi MHP has increased to 65% from an average of less than 10% before interconnection. The increased PLF is still less than expected PLF of 95% because of higher outage of 11kV feeder line. This substantial increment of PLF is not only contributing to financial sustainability of the MHP but also utilizing the abandoned resources. Furthermore, it also contributes in reduction of transmission and distribution losses to some extent and enhances system reliability of the rural feeder line.

Progress on Output 2b.3: Demonstrated large scale solar PV systems under relief and rehabilitation activities and through Technical Assistance (500 kW total)

To promote solar PV based systems, RERL collaborated not only with AEPC but also with different other organizations so that the systems continue to receive financial and technical support after the installation. In this regard, partnership has been fostered with diverse organizations ranging from Nepal Army and government agencies, such as Nepal Oil Corporation and Department of Irrigation, development partners, private sector to local non-governmental organizations.


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In 2018, RERL provided technical and financial assistance to promote large solar PV systems such as solar mini grid for lighting and productive uses, institutional solar for health and solar pumping for water supply and irrigation in Nepal. RERL provided technical assistance to AEPC to install 50 Photo Voltaic Pumping System funded by KfW in Baglung, Kaski, Tanahun, Pancthar, Rukum, Salyan, Acchaam, Dadeldhura, Ramechaap, Chitwan, Tanahun, Dailekh, Palpa and Gulmi and 23 more PVPS are under construction. RERL support included demand collection, Environment and Social Safeguard screening, feasibility study, design and installation.

These projects are primarily for providing water supply for drinking and household uses. This year, RERL worked with SNV Nepal to install 3kWp solar PV systems in 2 health posts in Rukum and Salyan districts. The system has been providing uninterrupted power supply for lighting and operation of medical equipment.

Further, RERL is working with SASEC to develop 100kW Gutu Solar Mini Grid, Surkhet and 70kW Sugarkhal Solar Mini Grid, Kailali. The 25kW Olane Solar Mini Grid and 70kW of Saptame Solar Mini Grid, Panchthar district have been installed. Besides technical support for survey and design, RERL is also supporting the beneficiaries to establish special purpose vehicle (SPV, cooperative/company) to manage their systems. These projects are funded by ADB. In 2018, RERL provided technical and financial support to install 3 solar mini grid at Morang and Parsa districts which benefiting 163 households.

Based on the remarkable impacts of solar PV back up system in health centers, supported by RERL under “energy for health”, UNDP provided additional financial assistance in 2018 to procure and install solar back up systems for 3kWp solar PV back up systems in 6 Snake Bite Treatment Centers operated by the Nepal Army and 3kWp solar systems in 4 Birthing Centers established with UNICEF funding in Mugu district and 3 health posts in Surkhet and Makawanpur districts that provide services to about 60,000 households. The back up system in Snake Bite Treatment Centers provide uninterrupted power supply to operate refrigerated storage for anti-snake venom vaccines whereas the fully equipped birthing centers were unable to provide services due lack of power supply.

AEPC provided solar PV solutions to ICIMOD supported earthquake resistant Dhugentar Model Village in Nuwakot district. With ICIMOD’s support about 100 houses have been built with hollow concrete blocks. All the residents of the model village belong to the marginalized dalit community. AEPC support includes solar systems for lighting residences, streets and a community center. RERL coordinated AEPC support and provided technical assistance to install the systems. In 2018 RERL provided technical and financial support to install 13 solar PV back up for snake bite treatment center, heath post and birthing centers. Detailed provided in Annex 2.

Progress on Output 2b.4: Operationalized 2 MW of off-grid large micro-hydro (over 60 kW) power projects demonstrating cost-advantage, feasibility, productive end-uses, and best practices through technical assistance

In 2018, RERL provided technical assistance to AEPC to install 28 Micro Hydropower Plants with total capacity of 1,253kW and benefiting 11,367 households. Distribution of MHPs by rural/urban municipalities are given below;


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Table 5: Distribution of MHP by Rural/Urban Municipalities

Progress towards Outcome 3: Improved design and packaging of investment support mechanisms for rural RE and other low-carbon technology applications

This outcome focusing on enhancing the availability of RE financing through establishing financing instruments through Center Renewable Energy Fund (CREF) for manufactures and project developers as well as ensuring financial sustainability. This component deals with improved design and packaging of investment support mechanisms for rural RE and low-carbon technology applications in Nepal.

A detailed study was carried out by RERL in February, 2016 to identify the reasons why Banks and Financial Institutions (BFIs) were reluctant to finance RE projects in rural area and the kind of support they required to make the investment less risky. The study recommended designs and operationalization of financial instruments such as soft credit, credit guarantee and insurance to help reduce the perceived risks by the BFIs. A soft credit and credit guarantee mechanism for financing mini hydro demonstration projects and vendor financing mechanism for small solar PV pumping for irrigation was established and operationalized by CREF with RERL support. ADB’s financial support for mini hydro and solar mini grid projects under SASEC are supported by these instruments to achieve financial closure.

RERL/CREF pioneered private sector involvement in house hold size solar irrigation through vendor financing mechanism. Based on this experience, CREF with RERL and UNCDF support established Vendor Challenge Fund to encourage private sector involvement in RE projects. Under this scheme, Ghampower Consulting Pvt. Ltd has installed 7 PVPS for aquaculture (fish farming) in Bardiya, Kailali, Dang and Sarlahi districts.

Progress on Output 3a.1: RERL, UNCDF and CREF studied a MHP that was funded by a micro finance company in Myagdi district of western Nepal. The 11.5kW MHP is among few projects where household equity is provided through a micro finance company. The study found that all the loans were repaid within a year of project completion with no defaults. Involving local financial institutions that know the community and are confident about recovering loans in time is a business model, which could address the issues of risks perceived by larger commercial banks. To help reduce lender’s doubts and perceived risks, RERL/SASEC/AEPC has been working with communities of mini hydro projects to initiate micro finance activities among beneficiary women. In Simrutu, Rukm women from all beneficiary households are engaged in saving and credit activities.

Progress on Output 3b.1 and 3b.2: Designed and provided technical support for financing platforms and services for promoting commercial financing for domestic manufacturers and mini hydro and large solar PV projects

RERL and UNCDF jointly established the RE Vendor Challenge Fund at CREF in 2017 with the main objective of supporting RE vendors to test, develop and scale up innovative business models for vendor finance in Nepal. The fund supports a maximum 50% of the total NPR 19.67 million budget. The CREF has entered into Performance Based Agreement (PBA) with three vendors (Astha Engineering Solution Pvt. Ltd., JBS Urja Pvt. Ltd., and Gham Power Nepal Pvt. Ltd.) selected under stringent procurement process as mentioned in the

Municipality No of MHPs Capacity (kW) Households

Urban 4 245 2,627

Rural 24 1008 8,740

Total 28 1,253 11,367


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government approved Vendor Finance Operation Manual. The detailed fund disbursed is given below

Table 6: Vendor Finance Challenge Fund

Applicant Activity Total Budget

(NPR)

Total Grant

(NPR)

Disbursement

(NPR)

Aastha Engineering Solution Pvt.Ltd.

Introduction of Innovative Drying Technologies in Nepal and Value Addition in Cash Crops

5,556,600

2,778,300

694,575

Gham Power Nepal Pvt.Ltd.

Off Grid Bazaar for Selling Solar Water Pumping Systems

6,752,660

2,696,330

674,082

JBS Urja Pvt.Ltd. Implementation of PAYG Technology in Solar Energy Devices System

7,359,480

3,205,780

801,445

Total 19,668,740 8,680,410 2,170,102

Progress on Output 3b.5: Functional enterprises adopting productive use of electricity

To demonstrate financial viability of MHPs, RERL is supporting 25 MHPs in five districts for commercial operation wherein the micro hydro is seen not only as a social infrastructure but also a commercially feasible enterprise. RERL support includes community mobilization, institutional strengthening and productive end use promotion.

After RERL intervention, monthly revenue collection of the 83 kW Darna MHP, Achham increased from NPR. 36,000 to 80,000 on an average. With RERL support the MHP is practicing computerized accounting system which has drastically improved transparency and willingness among users to pay their bills on time.

To ensure that women directly take advantage of access to electricity, RERL facilitated to establish women’s cooperative and engage monthly saving and credit activities. Further, RERL has carried out feasibility of lift irrigation systems to promote high value agriculture in Kailash Khola corridor.

Similarly, one way of overcoming the collective action problems faced by the communities managing MHPs is to lease out the management of the plant including daily operation, minor repair and maintenance, tariff collection, etc. to a private party, entrepreneur or company for an agreed monthly/annual amount. RERL’s initiation the community leased out operation and management of Simli Khola MHP in Rukum to a local entrepreneur.

RERL is working on electric cooking and space heating with electricity generated by micro hydropower plants as recommended by the MTR. One of the major hindrances in this regard is the limited power of MHPs – it is not possible to provide electricity to all beneficiaries as the designed power allocation to each household is only 200W, which is not enough for electric cooking nor space heating. RERL is testing low wattage cooking, modification of commercial available stoves and demand side management to promote electric cooking. After laboratory testing, induction stoves were given to 10 households in Simli Micro Hydro catchment area in Rukum district. A two-week long baseline survey was carried out to find out the cooking habits,

types and quantities of fuel used, etc. in 10 households before connecting the electric stoves. A separate three phase data logger and sensors were used to measure data in the power house to determine effects of induction cooker on the generator. The field test was conducted for 2 weeks and a follow up consumer satisfaction survey was also carried out. It was found that the micro hydro plant operated without any problems during the test. On


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the consumer side, it was found that they were satisfied with the performance of induction heaters/cookers as it not only saved time and fuel cost but also time for cleaning cooking utensil. RERL will field test Infra Red and Low Wattage Heat Storage Stoves soon. RERL has successfully lab tested low wattage electric stove with storage facility in collaboration with Kathmandu Alternative Power and Energy Group. If these test are successful and the consumer accept the technologies, a section of MHP beneficiaries could be encouraged to fuel switch for cooking which would on one hand help reduce consumption of fire wood and other biomass resources and increase revenue of MHPs on the other.

Progress on Output 3b.7: Ensured women and marginalized/vulnerable groups own 33% of the functional electricity based enterprises established

Towards achieving the national goal of building an equitable and gender inclusive society by ensuring equal rights to women and men of all castes, creed and regions in the social, political and economic aspects of national development, AEPC has been promoting GESI sensitive renewable energy projects and productive end-use applications. The revised subsidy policy and delivery mechanism provide additional financial assistance to single women headed and disadvantaged households.

In this reporting period, RERL provided trainings to 96 women member of Simrutu Khola Mini Hydro Cooperative Limited (SKMCL)on “Financial Literacy, Leadership and Microfinance Operation”. The main objective of the training was to build capacity of beneficiaries to enhance the knowledge on financial literacy and microfinance operation. So far in this cooperative, 900 women and 70 men from 43 micro finance groups are involved in regular saving and credit activities.

Progress towards Outcome 4: Enhanced capacities and skill of various stakeholders in the RE sector

This outcome focuses on enhancing capacities and skills of stakeholders in the RE sector, the trainees are primarily system designers, fabricators, installers and operators. As the service providers are mainly from the private sectors, their capacity building has been actively pursued by AEPC and RERL through classroom and hands-on-training, orientation and study tours. Besides, in 2018, RERL provided support to Hydro Energy Concern to help strengthen its management. Hydro Energy Concern is supplying and installing electro mechanical equipment of 3 mini hydro projects funded by SASEC.

Progress on Output 4.5: Fully trained, skilled and technically capable people available for operation, maintenance and business management

In order to enhance knowledge and skill on computerized accounting system and management, RERL provided training to MHP managers. The training focused on accounting keeping through computer software.

It is expected that this training will help improve financial management of MHP including accounting and book keeping. Training was also provided on demand collection and subsidy processing for Productive Energy Uses (PEU) promotion. The training was conducted from 2 to 7 September, 2018. Altogether 20 participants including 2 women from Rukum, Rolpa, Achham, Bajura and Jumla took part in the training.

A 15 days long training on the “Mini/Micro Hydro Operation” was held at Surkhet from September 25 to 9 October 2018. The objective of the training was to BUDILD UP the capacity of operators for trouble shooting and smooth operation and minor repair works. Altogether 24 operators received both practical and theoretical knowledge and skills on various aspects of micro hydro operation, management, electricity distribution and regular maintenance. Decentralizing training programs has drastically reduced the cost of travel and accommodation while also ensuring more hands-on training and experience sharing through Peer-to-Peer (P2P) Learning.

Training on Computerized Accounting System: To improve knowledge on account keeping of MHP managers, RERL has conducted training on “Cooperative Account Keeping” for 24 participants including 2 women from Baglung, Sindhuli, Morang, Solukhumbu, Mugu Achham and Jumla districts. The training was conducted between 19 and 28 May 2018. The training focused on operation of accounting software.


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Training cum exposer visit: AEPC/SASEC/RERL organized training cum exposer visit for Mini Hydro Developers and officials of Rural Municipalities. The participants visited Salleri Chialsa Mini Hydro Project, which is one of the best managed community owned project in Nepal, and learnt about efficient management including reliable and quality electricity supply, appropriate tariff setting, timely revenue collection, maintaining inventory, timely consumer services and regular maintenance of the plant, etc. The participants were also orientated on Mini Hydro Operation and Management Manual drafted by RERL. Altogether, 21 people including 1 woman from Rukum, Jumla, Baglung, Mugu, Solukhumbu and Taplejung participated in the programme.

Orientation on Special Purpose Vehicle (SPV): RERL organized an orientation on formation of SPV for development of the 422kW Shantipur Mini Hydro Project, Shantipur, Kailali. The orientation provided information on advantages and disadvantages of different institutional options such as cooperative and private company. A total of 35 Municipal officials and members of Users Committee including 2 women participated in the programme. on Cooperative & Company Acts.

Orientation on Productive Energy Uses: RERL organized orientation on Productive Energy Uses for focal person and field coordinators of Regional Technical Service Providers (RTSP) of AEPC. The main purpose of the orientation was to provide information on subsidy policy and the processes of delivery mechanism for promotion of productive energy uses. Altogether 18 men and 2 women actively participated in the training.

Monitoring Training: RERL supported Monitoring and Quality Assurance Unit of AEPC to carry out a monitoring training for engineers. The main objective of the training was imparting knowledge and skill to effectively and efficiently carry out field monitoring of the RE systems.


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5.2. PROGRESS ON PROJECT OUTPUTS

Table 7: Progress on Output Indicators

Output statement Output

indicator Baseline

Cumulative Target for 2013

- 2017

Cumulative progress up to

2017

Milestone 2018

Progress 2018

Means of verification

Output 1.1 Approved and enforced policy that enables PPP model for mini hydro and large scale solar PV development, including fiscal incentives and sustainability for possible changes in Nepal government structure

Policy document on RE is in place

Rural Energy Policy 2006

RE Policy, GESI sensitive subsidy policy, subsidy delivery mechanism and draft RE Act submitted to GoN

RE Subsidy Policy approved by GON

Support AEPC to prepare Renewable Energy Service Package for Local and Provincial Government.

Support Package for AEPC prepared

RE Subsidy Policy

AEPC Support Package

NEA Board approved Technical Standard for interconnection of MHP with the grid

NA NA

Technical Standard

NEA Board Document

Connection Agreement MHP

Operating Procedure for MHP

Documents for Power Purchase Agreement between NEA and 2 MHP submitted to NEA

NA NA Power

Purchase Agreement


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Technical Standard for interconnection of solar PV with grid prepared

Finalize Utility Scale Solar PV Guidelines

Utility Scale Solar PV Guidelines submitted to MoEWRI for endorsement

Technical Standard publication

Utility Scale Solar PV Guidelines

Prepared concept documents to address energy crisis resulting from border blockade prepared and submitted to the GoN

NA NA

Concept documents on energy crisis

Output 1.2 Methodology and database developed and made available for incorporating mini hydro and large scale solar PV systems into district RE plans

No. of integrated district RE plans prepared

NA

District Renewable Energy Master Plan (DREMP) prepared for 15 DDCs

Municipal Energy Plan of Gorkha district completed

Municipal Energy Plan of Palungtar, Gorkha

Energy Plan Completed and submitted to Palungtar Municipality

Municipal Energy Plan

RERL supported AEPC to develop concept on BAT

NA NA BAT report

AEPC’s role in Federal Context completed

Prepare AEPC Act

Act drafted and submitted to AEPC

Draft AEPC Act,

AEPC’s Transition Paper

AEPC’s Transition Paper

Transition Paper


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submitted to AEPC

Output 1.3 Completed training and awareness programs for relevant government agencies and stakeholders on mini-hydro and large-scale solar PV systems development and on productive end uses

No. of trainings conducted

NA

3 case studies prepared and 6 trainings conducted

Large Scale Solar PV Case Study completed Workshop on Enabling Environment for Mini Hydro in Nepal organized

NA NA

Case Study/ Completion report and workshop proceeding

1 training on design of large SPV for DEECCS

NA NA Proceeding

report

Preparation for Exhibition to create awareness on RE technologies

Prepare Knowledge Products

Knowledge Products of RERL such as Website, Infographics, Metallic Board

Completion Report

Websites, Infographic

1 Training on DFS of Mini Hydro and 1 training on GIS for AEPC completed

NA NA Training

reports

Coordination meeting organized and signed MOU for Power Purchase Agreement

Discussion on AEPC support package for provincial and local governments

Workshop conducted

MOU PPT


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Asia-Pacific Meeting conducted on Sustainable Energy for LDC countries

Organize Climate Lunchpad

Event organized in 17 to 24 August, 2018

Training Report

Event Completion Report

Output 2a.1: Commissioned mini-hydro demonstration projects totaling 1 MW through PPP model

No. of mini hydro demonstration projects commissioned

NA

1 mini hydro project initiated

RERL is supporting CREF banks for financial closure

Continue Support for CREF Bank Commitment/ Meeting Minutes

Financial closure of Simrutu and Giri Khola completed

Construction Work Ongoing

Output 2b.1: Demonstrated PPP models facilitating cooperation between private sector, public sector, and local organizations through establishment of Special Purpose Vehicle (SPV) in three selected mini-hydro projects (1 MW)

No. of projects strengthened

NA

5 institutions strengthened including SPVs

Financial closure of 2 mini hydro completed

Financial closure of 3 mini hydro projects

Financial closure of Tara Khola, Phawa Khola & Khatyad Khola

Detailed Feasibility Report

Guidelines for developing mini hydro under PPP model developed

NA NA PPP

Guidelines

Initiated financial closure of 2 mini-hydro projects (Tap Khola 2,600 HHs and Giri Khola 2,000) totaling 500 kW

IEE of Chukeni Khola Mini Hydro Project, Patrasi Jumla

IEE of Chukeni Khola Mini Hydro Project, Patrasi Jumla and Namche Spring conducted

Bank commitment


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DFS of 4 mini hydro projects with total capacity of 2 MW completed

DFS of Mini Hydro Projects

DFS of 6 Mini Hydro Projects completed

DFS Report

Institutional support for 2 SPVs on-going (Phawa Khola, Tara)

Institutional Support for Mini hydro

Support to establish SPV of 2 Mini Hydro Projects

Bank Commitment

Output 2b.2: Demonstrated financially sustainable and reliable mini-grid connecting ten (10) micro-hydro systems (300 kW)

No. of mini-grid and grid connection supported - 1 mini-grid interconnecting 2 MHP with capacity of 218 kW in Gulmi completed NA

1Mini-grid interconnecting 10 MHP with 300 kW capacity

Interconnection of 2 MHP in Gulmi completed

Erection of Transmission and Distribution line completed in Taplejung

Interconnecting 5 mini/micro hydropower plants and grid connection

3 mini/micro hydro interconnected in national grid Commissioni

ng Report

- 1 mini grid interconnecting 6 MHPs with the capacity 106 kW in Baglung revived

Grid Interconnection of 23kW Syaurebhumi MHP completed

Interconnection of 3 micro hydro projects

Interconnection of 40kW Leguwa Khola, 90kW Chimal Khola & 100kW Midim Khola completed

Commissioning Report


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- Due diligence of 1 Mini Grid interconnecting 8 MHPs with the total capacity of 900kW completed and procurement initiated

Due diligence of TMG interconnecting 7 MHPs completed. Bid document is being prepared to procure equipment

NA NA

Bid Documents

Output 2b.3: Demonstrated financially sustainable and reliable large scale solar PV systems (500 kW total)

Large scale solar PV systems installed with capacity of 500 kW under relief and rehabilitation

NA

Solar PV systems with the total capacity of 500 kW installed

31.2 kW solar PV systems were installed 41 kW solar PV Systems installed 8 kW directly by RERL under relief and rehabilitation

Installed 72 Institutional Solar PV System

Install Solar DC Mini Grid

3 Solar Micro Grid installed in Morang and Parsa

Project MIS

1.5kW solar PV back up system installed in Snake Bite Treatment Center at Charali Jhapa

Installed Solar PV Systems in 6 Snake Bite Treatment Centers in Terai

Solar PV Back up system installed in 6 Snake Bite Treatment Centers run by Army

Project MIS


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3kW Solar PV system installed in Sahid Chandeshor Lower Secondary School at Dhanusha

Installed Solar PV Systems in Health post and birthing centers in Mugu

Solar PV Back up system installed in 4 Birthing Centers and 3 Health Posts

Project MIS

Assisted AEPC to develop business plan for 18 kW solar mini grid under 5P

NA

NA

Project MIS

Assisted AEPC to initiate institutionalization of 15 kW Solar and 10 kW Wind Hybrid system in Makwanpur

NA

NA

Project MIS

Rapid assessment of 42 solar pumping systems and installation of 72 solar systems completed

NA

NA

Project MIS

Output 2b.4: Operationalized 2 MW of off-grid large micro-hydro (over 60 kW) power projects demonstrating cost-advantage, feasibility, productive end-uses, and best practice through technical assistance

Technical assistance for large micro hydro systems and TA and financial assistance to rehabilitate

Previously installed

MHPs

1.8 MW MHP installed and rehabilitated

Total 3.25 MW electricity generated (2.4 MW from new Micro Hydro + 0.66 MW from rehabilitated MHP + 0.19 MW from solar PV)

Provided TA to AEPC for installation of Micro Hydro Projects

Total 1.25 MW electricity generated (1.25 from new micro hydro +0.25MW from rehabilitated

Project MIS


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MHPs damaged by earthquakes

+0.05MW from solar)

25,000 households have access to energy

3,581 new households (RERL and NRREP) have access to electricity

5,000 households have access to electricity

13,810 micro hydro & 163 benefited from solar mini grid = Total 13,973 HHs

Project MIS

Rapid assessment of 140 MHPs affected by earthquakes completed. USD 176,493 for rehabilitation of 31 MHPs, 755 kW, 7,500 HHs for immediate rehabilitation transferred to DEF

NA

NA

Project MIS

Support AEPC to establish 25 MHP with total capacity of 1229kW

NA

NA

Project MIS


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Output 2b.5: Completed financial closure of 7 MW of off-grid mini-hydro power projects replicating PPP model through establishment of SPVs, demonstrating cost-advantage, feasibility, productive end-uses, and best practice through technical assistance

DFS of mini hydro

NA

DFS of 1 MW mini hydro completed

DFS of 5 Mini Hydro Complete benefiting more than 5,000 HHs

5 mini hydro projects with total capacity of 1.5MW is under construction

DFS of Mini Hydro Projects

4 Mini Hydro Project completed

Bid document

Output 3a.1: Established a financing instrument to incentivize Banking and Financing Institutions for financing domestic manufacture Financing

instrument established

NA NA

Financing instrument prepared and establishment process on going

NA

NA

Financial Instrument/ Report

Output 3a.2: Established a financing instrument to incentivize Banking and Financing Institutions to commercial financing for mini hydro and solar PV

NA NA

TOR for credit financing has been published in AEPC website.

NA

NA

AEPC Website

Output 3b.1: Designed and provided technical support for financing platforms and services for promoting commercial financing for domestic manufacturers

Design of financial package for domestic manufacturers

NA

1 gap analysis conducted and 1 financial instrument developed

Gap analysis conducted and development of business plan ongoing

NA

NA

Inception Report

Output 3b.2: Designed and provided technical support for financing platforms and services for promoting commercial financing for mini-hydro and large-scale solar PV projects

Design of commercial financing instruments

NA 2 instruments developed

Gap analysis completed along with Financial instruments.

Partial Credit Guarantee

NA

NA

Gap analysis report,

Financial instruments,


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instrument completed

Partial credit Guarantee instrument

5 PVPS are supported in Chitwan district. Vendor financing instrument implemented in Chitwan

NA

NA

CREF/Completion report

CREF, with RERL support, has established innovative financial instruments such as soft credit, credit guarantee and insurance to reduce the risks of BFIs to invest in RE projects

NA

NA

CREF Report

Output 3b.3: Developed training materials on mini-hydro and large-scale solar PV projects for financing institutions

No. of training materials for bankers

NA 1 training material prepared

Training materials prepared & orientation for bank officials organized, 15 bank officials participated in the training

NA

NA

Training Report

RERL, UNCDF and CREF jointly carried out a study on Micro Financing

NA

NA

Training Report


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of 12kW MHP in Myagdi

Study on Micro Financing completed

NA

NA

Study Report

Output 3b.4: Created matchmaking platform for mini-hydro and large-scale solar PV developers, financing institutions, and equity investors, and productive end users

No. of platforms created for matchmaking

NA

1 event organized and 1 website developed

Investor’s Forum organized and 2 mini hydro projects pitched for private investment

NA

NA

Photos and Participants’ list

Output 3b.5: Functional enterprises adopting productive use of electricity

No. of productive use of electricity supported

NA

NRREP Target:300

657 MSMEs were established by PEUC/NRREP, RERL provided direct technical assistance to establish193 MSMEs

525 MSME established

Support AEPC to establish MSME

1182 MSME established Report/

Project MIS

1300 new MSMEs

Business Opportunity Assessment in Tanahun, Achham and Makwanpur carried out

NA

NA

Report/ Project MIS


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RERL provided Technical Assistance to install 1182 MSME

2800 MSMEs upgraded

Management improvement for commercial operation of MHP

Commercial Operation of MHP

Commercial Operation of Darna, Achham & Simli, Rukum

Report/ Project MIS

2 innovative technologies for fuel switching from firewood to electricity developed and tested (Khuwa Making, Lokta Boiling), 1 technology under development (Nettle Leaves Drying)

4 electric Lokta boiler technology fabricated and promoted at community level

Collect Success Stories on Fuel Swithing

Collection of Success Stories on Fuel Switching technology (Lokta Dryer) in Ghandruk, Kaski.

Report/ Project MIS

Framework for development of industrial cluster prepared. 2 potential rural industrial clusters

NA

NA

Report/ Project MIS


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identified. Field work completed

Cooperative have been formed in Darna, Achham

9 lift irrigation projects studied. 2 lift irrigation projects (benefitting 45 HH) constructed with EDM funding and 3 under construction. Business Opportunity

Assessment in Tanahun, Achham and Makwanpur carried out

Lift irrigation installed in Chiuritar, Simthali, Apchaur, Jarung and Chotesh VDC in Dhading

NA

NA

Report/ Project MIS

Draft MoU between AEPC and Department of Irrigation to develop lift irrigation projects prepared.

Commercial Operation of 25 Micro Hydro in Dolakha, Baglung,

NA

NA

Report/ Project MIS


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Achham, Bajura, Rolpa & Rukum

Locally developed pre-paid meter

Installed pre-paid meter in MHP sites

Testing and Installation of 112 units prepaid Energy Meter in Bhorleni Solar Wind Mini-grid Project Phaparbari VDC-8, Makwanpur

Report/ Project MIS

Energy consumption pattern of MHPs being studied.

Field Testing of Electric Cooking

Electric Clean Cooking Program in Solabang, Rukum.

Report/ Project MIS

Lokta Dryer installed in Ghandruk

NA

NA Report/

Project MIS

Value Chain for Telkuwa Solar

NA

NA

Co-operative strengthening & Micro Finance for Simrutu Khola Mini Hydro completed

Financial Literacy, Leadership and Micro Finance Operation Training

Organized training for 96 women members of Simrutu Khola Mni Hydro Project

Report


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including 18 male

Output 3b.7: Ensured women and marginalized/ vulnerable groups own 33% of the functional electricity based enterprises established

No. of training and orientations to women and marginalized groups

NA 2 training orientations conducted

Impact study of PEU on women completed

NA

NA Study report

74 women and 80 men benefitted from skill based training on tailoring, computer education and bakery while 51 women trained on business management

Mobile Phone Repair Training to Women

15 Days Basic Mobile Phone Repair Training to Women from Micro Hydro Power Project in Musikot, Khalanga, Rukum

Training Reports

25 participants trained from commercial operation and institutional strengthening

Computerized Billing Systems and Cooperative Accounting Training

24 members trained on Computerized Billing Systems and Cooperative Accounting including 2 women

Training Report

55 participants trained on cooperative management of micro hydro

Cooperative Management Training

32 (9 male and 23 female) members trained on Cooperative Management in Hariharpur Gadi

Training Report


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Output 4.1: Created a knowledge base of technical challenges and opportunities in the design, manufacture (for micro-hydro (+60 kW) and mini-hydro), installation and after-sales service in micro-hydro (60+ kW), mini-hydro and large scale solar PV systems

No. of monitoring and quality assurance mechanism and framework

NA

1 gap analysis, 1 monitoring system, 2 quality assurance mechanism, 1 framework developed, and 1 workshop conducted

1 gap analysis on manufacturing of mini hydro components in the country completed.

NA

NA

Gap analysis report

2 monitoring and quality assurance mechanism for mini/micro hydro and solar PV developed.

NA

NA

Sustainability framework tested and 1 workshop organized to finalize it. Piloting on 10 MHPs initiated.

NA

NA

3 Remote Monitoring Systems completed in Sindhuli, Okhaldhunga and Kathmandu

NA

NA

Installed site and completion report

66 engineers trained on field level monitoring system

Training for Third party Monitoring Consultants

66 Engineers trained on Third Party Monitoring

Training Report

Remote monitoring system for solar PV developed

NA

NA Software


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Output 4.2: Fully trained, skilled and technically capable people available for project identification, feasibility studies and detailed design of mini-hydro and large-scale solar PV systems

No. of training and manuals for developing skilled and technically capable people

NA

4 training and 2 manuals prepared

POV Guideline prepared and 50 engineers trained

NA

NA

POV Guideline and Training report

10 engineers from solar equipment vendors were trained on designing large solar PV installations while 11 PVPS technicians oriented

Conduct Orientation Program on Productive Energy Use for TRSP Focal Persons/Field Coordinators

Orientation Program on Productive Energy Use for TRSP 16 Focal Persons/Field Coordinators

Training and orientation reports

Output 4.3: Fully trained, skilled and technically capable mini hydro manufacturers in identified areas and their after-sales services

No. of new technologies for mini hydro

Old ELC, DLC, and

Turbine

2 ELC, 2 DLC and 1 turbine technology designed

Digital ELC for micro hydro developed and tested in the laboratory Procurement process to implement digital ELC ongoing

NA

NA Reports

Output 4.4: Fully trained and technically capable construction and installation teams within companies to improve quality of installed mini-hydro projects and large solar PV system

No. of training for installation of large micro hydro

NA 1 training conducted

Training on installation of large micro hydropower plants with 20 participants conducted.

Tariff Fixation and Operation Guidelines for the Management of Mini Hydro Power Projects

Orientation on Tariff Fixation and Operation Guidelines for the Management of Mini Hydro Power Projects for 17 participants

Training Report


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Training manual for design and installation of large solar PV systems is being prepared.

Workshop for Governance System of Mini Hydro Project

Manual

30 technicians trained on house wiring at Rukum and Biratnagar

Conduct House Wiring Training for Solar PV System Operators

16 Solar PV System Operators trained on House Wiring training

Training Report

Output 4.5: Fully trained, skilled and technically capable people available for operation, maintenance and business management of mini-hydro projects and large scale solar PV

No. of people trained in mini hydro, large micro hydro and large scale solar PV system

NA

60 people trained and 3 trainings conducted on RE as business

109 micro hydro operators trained on management and operation

Organized training on micro/mini hydro operation and management

45 operator trained on micro/mini hydro operation and management

Training Report

29 women entrepreneurs trained on business management training

NA

NA Training

Report

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6. BUDGET AND EXPENDITURE

The following table shows the output wise indicative budget and expenditure for 2018 and the sources of funds budgeted and utilized.

Table 8: Output wise annual budget and corresponding expenditure

Amount in US$

Output Annual Budget

Annual Expenditure

through project

Annual Expenditure

through UNDP

Total Expenditure

Budget Utilization%

Output 1.1 66,800 63,761 3,300 67,061 100%

Output 1.2 11,000 11,039 0 11,039 100%

Output 1.3 11,900 6,773 5,000 11,773 99%

Output 2b.1 112,650 110,732 0 110,732 98%

Output 2b.2 0 0 0 0 0

Output 2b.3 220,375 37,628 180,575 2,18,203 99%

Output 2b.4 23,500 21,666 0 21,666 92%

Output 2b.5 45,000 44,560 0 44,560 99%

Output 3b.1 0 0 0 0 0

Output 3b.3 0 0 0 0 0

Output 3b.5 78,300 79,114 0 79,114 101%

Output 3b.7 10,000 10,657 0 10,657 107%

Output 4.1 1,500 1,301 0 1,301 87%

Output 4.2 4,500 4,393 0 4,393 98%

Output 4.3 7,500 7,387 0 7,387 98%

Output 4.4 0 0 0 0 0

Output 4.5 33,000 33,431 0 33,431 101%

Program support 201,975 151,326 48,000 199,326 99%

Total 828,000 583,768 236,875 820,643 99%

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Table 9: Sources of funds Budget and Utilization of the project period

`Source of

Funding

Funding period (Start –

End Date)

Total Project Budget

Additional TRAC Fund

Total

Expenditure 2014

Expenditure 2015

Expenditure 2016

Expenditure 2017

Expenditure 2018

Total expenditure till 2018

Total Budget

utilization %

Budget Balance

US$

UNDP July 2014 – Dec 2019

2,000,000 299,859 2,299,85922

66,945 355,601 296,882 796,624 583,806

2,099,859 91% 200,000

GEF July 2014 – Dec 2019

3,000,000

3,000,000

144,845 737,836 1,325,606 420,502 223,072

2,851,862 95% 148,137.90

Total

5,000,000

299,859

5299,859

211,792

1,093,437 1,622,488 1,217,126 806,878 4,951,721 93% 48,278.81

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Table 10: M&E Expenditure

Narrative on Progress related to Budget and Expenditure

In 2018, RERL allocated USD 828,000 to carry out various activities of which USD 600,000 was from UNDP’s TRAC fund and USD 228,000 from GEF fund. This year RERL utilized 99% of total budget.

7. CROSS CUTTING ISSUES

7.1. TARGETING AND VOICE/ PARTICIPATION OF TARGET GROUPS

The main target groups of RERL support are people living in off grid areas. All RERL activities are related to promotion of larger renewable energy systems for provision of modern energy in such areas through enabling environment for participation of the private sector in project development. Further, at the operational level, RERL has helped AEPC to prepare GESI sensitive Special Purpose Vehicle (SPV) formation guidelines, which ensures participation of women and marginalized groups in decision making. The revised RE Subsidy Policy and Delivery Mechanism provides additional financial assistance to vulnerable and disadvantaged groups, people living in remote locations and women headed households. Similarly, RERL has prepared methodology for Municipal Energy Planning, which recommends both participation of women and marginalized groups and additional financial assistance for them to access clean lighting and cooking solutions.

7.2. GENDER EQUALITY, WOMEN’S EMPOWERMENT, AND SOCIAL INCLUSION

RERL supported to formulate new RE subsidy policy in 2016 which provides additional financial assistance to women and members of marginalized groups. Likewise, with RERL input AEPC formulated its productive energy use promotion modality, which helps women and marginalized communities to benefit from access to electricity by establishing enterprises and income generating activities with provision of additional financial assistance. As of 2018, 1,270 productive use enterprises have been established with financial assistance of AEPC; of which women own 70.

In 2018, in order to bring direct impact on women empowerment, socio-economic development and ultimately reduce the poverty by involving them in income generating activities, RERL is supporting Simrutu

Total spent on Monitoring

Costs associated with UNDP/project staff, consultants, project partners, supporting national statistical systems in designing project specific data collection methodologies (qualitative and quantitative), monitoring methods including stakeholder surveys and other qualitative methods, collection of data, analysis and dissemination of the findings to inform a project, either with project partners or to fulfill specific UNDP/project requirements (preferably the former).

Field Visit - USD 37,538

Training – USD 7,387

Staff Salary – USD 45,502

Total USD 90,427 cost spent on project staff and monitoring visit in different project areas

Total spent on Decentralized Evaluations

Costs associated in designing, implementing and disseminating evaluations for specific projects

NA

Combined total spent on M&E USD 90,427

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Khola Mini Hydro Cooperative Limited to implement micro finance activities at the vicinity of their local grid coverage. So far, in this cooperative 900 women and 70 male members are involved in regular saving and credit activities from 43 micro finance groups.

RERL has provided trainings to 96 women members of Simrutu Khola Mini Hydro Cooperative Limited on “Financial Literacy, Leadership and Microfinance Operation”.

With financial assistance of UNDP and rural municipalities, RERL supported the extremely marginalized and poor Musahar, Dom and Santhal communities to install 3 Solar Micro Grids in Morang and Parsa districts. RERL is further supporting these communities to operate and manage their systems and to engage in income generating activities.

7.3. NATIONAL CAPACITY DEVELOPMENT

RERL is supporting in capacity enhancement of governmental agencies, local and provincial governments, private sector and beneficiaries. Support for private sector is geared towards development of in-country expertise related to deployment of RE technologies, governmental agencies for planning and policy and beneficiaries for smooth operation and management of RE systems.

In this reporting period, RERL extensively supported capacity development of AEPC to reposition itself in the changed federal context by drafting AEPC’s Transition Paper and detailing its roles and responsibilities at all levels which has been incorporated in draft AEPC Bill and its Support Package for Local and Provincial Governments for promotion of renewable energy in Nepal. In addition, RERL also supported AEPC to organized orientation to officials of provincial governments and municipalities in 5 provinces on their roles and responsibilities in promoting renewable energy and AEPC’s support.

Besides, AEPC and RERL have also been working with relevant governmental organizations to promote less disseminated RE technologies like mini hydro and large solar PV. RERL/AEPC, DoED, Ministry of Energy, Water Resources and Irrigation (MoEWRI) and Nepal Electricity Authority (NEA) jointly developed Guidelines for Utility Scale Solar PV Project. The document has been submitted to MoEWRI for endorsement and implementation.

UNDP/RERL supported AEPC to participate in Peer to Peer learning programme regarding its application to be Designated National Entity (DNE) of Green Climate Fund (GCF) in 2018. Once becomes a DNE it can directly access GCF fund for promotion of renewable energy in the country.

7.4. SUSTAINABILITY

The Government of Nepal (GoN) has given high priority to promotion of renewable energy for both rural development and fossil fuel substitution and energy security. The Government’s priority to RE is reflected in its periodic plans, MOEWRI White Paper 2018, projects that are on-going (RERL, SASEC, SREP, RERA) or on-line (new Nepal Renewable Energy Programme of DFID, Nepal Mini Grid Project of the World Bank, etc.).

RERL project was designed as an integral part of National Rural and Renewable Energy Programme (NRREP) to support AEPC to remove barriers in upscaling less disseminated renewable energy technologies such as mini hydro and large solar PV systems. RERL provided support in 3 main areas viz. i) policy and institution to create conducive environment, ii) demonstration of technically sound and financially viable mini hydro and large solar PV projects, iii) establishment and operationalization of financial instruments to attract private financing.

For continuity of RERL’s best practices and implementation of recommendations from lessons learnt is to internalize them in AEPC and other relevant organizations. For this, RERL has capacity development component targeting governmental agencies, particularly AEPC, private sector and end users. RERL’s contributions and modalities for internalization are discuss below.

Policy and Institution: In the policy and institutional front, RERL helped AEPC and GoN to draft several policies, guidelines, concept papers, etc. related to renewable energy development in Nepal. Among the most prominent contribution of RERL was to provide inputs to draft Local Government Operation Act (LGOA) 2017. As the

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Constitution of Nepal 2015 gives the overall right to develop renewable energy, small hydropower projects, irrigation and drinking supply systems and other local services to municipalities, RERL provided extensive inputs to elaborate their responsibilities that was incorporated in LGOA 2017, which has given rights to development of renewable energy, hydro power plant up to 1MW and electricity distribution system to municipalities. After the enactment of LGOA 2017, RERL is working with AEPC to build up capacities of municipalities for planning, project identification, implementation, monitoring and post installation support related to RE projects. RERL also prepared methodology for municipal energy planning and piloted in 2 municipalities. The methodology thus developed is replicated by GIZ supported RERA project in preparing 16 Municipal Energy Plans (MEP) in Provinces 1 and 7. Further, it is envisaged that DFID supported Nepal Renewable Energy Programme will help to prepare MEPs in remaining provinces.

As discussed above, the right to develop RE projects up to 1MW is with municipalities, role of the Provincial and Federal governments in this regard will be more facilitative, rather than direct implementation. RERL has helped AEPC to prepare concept paper on roles of provincial and federal governments and evolution of AEPC as RE Center of Excellence, helping build up the capacity of local governments to smoothly carry out their responsibilities per the new constitution. The draft AEPC Bill, which incorporates these ideas, has been submitted to GoN for endorsement and approval from the Parliament.

The White Paper published by MOEWRI categorically states that local governments/ municipalities will be supported to develop RE projects both for local consumption as well as export to the national electricity grid. RERL supported to prepare standards/guidelines for grid interconnection of MHP and large solar PV systems, while the standards for MHP-Grid Interconnection has been approved by NEA Board and 4 such systems have been implemented, the guidelines for development and grid interconnection of utility scale solar PV systems has been submitted to MOEWRI for approval.

AEPC has already established its units within the Department of Energy, Ministry of Infrastructure of Provinces 1 and 7. Provinces are responsible to support municipalities to carry out their activities and also to develop provincial level RE projects. The AEPC units work closely with provincial officials to help build up their capacity in planning, implementation, monitoring, quality assurance and standardization, resource mobilization and allocation, etc. for development of RE projects both at provincial and local levels.

Demonstration Projects: At community level, RERL’s focus is on developing technical and managerial capacities of end users to sustainably operate and manage RE projects and maximize benefits. AEPC/RERL has identified Salleri Chialsa Electricity Company (SCECO) model as suitable one for operation and management of Mini Hydro Power Projects. In order to replicate the successful governance and management system in Salleri Chialsa, AEPC and SCECO have signed an MoU to support institutional strengthening of SASEC mini hydro projects. However, many communities are reluctant to go for private ownership and prefer cooperative model. Thus, RERL has prepared and is implementing comprehensive packages for establishment and strengthening of both cooperative and company models. In both models, the renewable energy systems are seen not only as social assets but also commercially viable investment and community/beneficiaries are thus oriented. In the Cooperative Model, extensive support is provided to the communities to engage in micro financing activities so that women and members of marginalized communities can maximize benefits from access to electricity for household consumption but also utilize it for establishment of productive enterprises. Furthermore, to bring efficiency in management of large micro/mini hydropower/solar irrigation projects, RERL is also promoting “Community Private Partnership” (CPP), where the community owns the power plant and leases it out for private management.

RE Financing: RERL is working closely with CREF to attract private investment in off grid renewable energy projects in rural areas. Banks and Financial Institutions (BFIs) in general see investment in community owned and managed RE projects in rural areas as highly risky and are reluctant to put their money. Similarly, the private sector developers also find rural energy projects not beneficial. In such circumstances RERL supported CREF to establish and operationalize financial instruments such as soft credit, credit guarantee and vendor financing for renewable energy projects to provide assurance to BFIs to invest in community owned and managed RE projects. SASEC projects are also supported through these mechanisms to complete financial closure. These facilities are available for all AEPC supported projects.

RERL was the first AEPC project to come up with the concept of attracting private investment in RE projects and made interventions in three areas as discussed above and has been able to establish conducive policy

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environment, innovative financing instruments and demonstrate financial viability of RE projects particularly mini hydro, large micro hydro and solar irrigation projects. This modality has been more or less adopted in other AEPC projects like SASEC and Nepal Mini Grid Project.

7.5. SOUTH-SOUTH AND TRIANGULAR COOPERATION

In 2018, UNDP Country Office China coordinated with country offices in Belt and Road area to submit proposals for China South-South Cooperation Assistance Fund (SSCAF). RERL submitted a proposal for providing renewable energy solution mainly solar PV and clean biomass in 10 rural municipalities of border districts.

7.6. PARTNERSHIPS Asian Development Bank: RERL is providing technical assistance to AEPC to implement ADB funded SASEC project. South Asia Sub-Regional Economic Cooperation (SASEC) Programme (SASEC) project intends to support rural communities to install 4.3MW of mini hydro and 500kW of solar mini grids. In 2018, ADB and AEPC agreed to continue RERL TA support from 2019 to 2021 under a cost sharing agreement with UNDP.

The World Bank: RERL has been supporting Alternative Energy Promotion Centre (AEPC) to implement the World Bank funded Renewable Energy Component of Kabeli Transmission Project in Taplejung. In 2018, 90kW Chimal MHP was interconnected with the national grid and 4 MHPs were interconnected. This project will be completed once the 500kW Middle Phawa MHP is interconnected in the mini grid and the entire system is grid connected. GIZ/RERA: RERL is working closely with GIZ’s Renewable Energy for Rural Area (RERA) project to promote renewable energy in the federal context. In this regard, RERL and RERA finalized methodology for preparation of municipal energy plans. RERA will supplement RERL initiatives by supporting preparation of 14 MEP in Provinces 1 and 7 under same framework and methodology. Besides, RERA is also supporting AEPC to develop frameworks, modalities, guidelines and manuals for promotion of RE projects in the new federal structure.

KfW: RERL supported AEPC to install 50 solar PV pumping systems in drinking water projects funded by KfW. In 2018, 9 project were completed. After the installation of PV pumping systems 430 households have easy access to tapped drinking water.

Private Sector: in 2018, RERL provided support to Hydro Energy Concern to help strengthen its management. Hydro Energy Concern is supplying and installing electro mechanical equipment of 3 mini hydro projects funded by SASEC. Another significant RERL support for the private sector capacity development includes Preesu Electronics Pvt. Ltd and Techno Village Pvt. Ltd in both grid connections of MHP and MHP to MHP interconnection. RERL provided extensive technical support to both companies to successfully complete grid connection of 4 MHPs and establishment of Taplejung Mini Grid interconnecting 4 MHPs.

Salleri Chialsa Electricity Company (SCECO): In 2018, to replicate this successful management system, a MoU was signed by AEPC and Salleri Chialsa Electricity Company (SCECO), owner of Salleri Chialsa Mini Hydro Project. As per the MoU, AEPC will procure SCECO services for capacity development of AEPC supported mini hydro project personnel for smooth operation and management. RERL in collaboration with Practical Action Consultancy had prepared a case study of mini hydropower projects in Nepal in July 2017, covering 8 projects managed by Nepal Electricity Authority, community and private companies. The study identified the governance and management of the 603kW Salleri Chialsa Mini Hydropower Project, which has been in operation since 1989, as the best in the country.

7.7. PROMOTION OF CIVIC ENGAGEMENT

At the field level, RERL has directly been working with beneficiaries following the much-acclaimed REDP’s community empowerment model - where the community is provided close and consistent support to build

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their capacity and to engage in all aspects of service delivery ranging from project identification, planning, implementation, management, operation and monitoring.

RERL has been supporting municipalities to prepare municipal energy plans in participatory approach, engaging individuals, elected officials, civil society, private sectors, governmental line agencies and donors. So far, RERL has supported to prepare 2 Municipal Energy Plan (MEP) for Palungtar, Municipality in Gorkha and Mahankal Rural Municipality in Lalitpur.

In the new federal context, the responsibility for renewable energy promotion has been given to the local governments. RERL organized 3 programmes in mid and far western regions to orient local elected officials on their roles and responsibilities.

7.8. EXPANDING OPPORTUNITIES FOR YOUTH

In 2018, RERL hosted a Climate Launchpad Event, the event provided the opportunity to young entrepreneurs allowing their ideas into global business to address Climate Chang. The competition aims to provide a platform for helping aspiring entrepreneurs grow their ideas into global business to fix Climate Change. Nepal joined Climate Launchpad for the first time and invited applicants with innovations in renewable energy, energy efficiency, food and agriculture, water, transportation, industrial technology or any other way to tackle Climate Change.

Moreover, RERL/AEPC working with University of Prince Edward Island (UPEI) and Kathmandu Engineering Collage (KEC) to develop load controllers for both grid connections of MHP and MHP interconnection in collaboration with AKA Pvt. Ltd, Canada. 7.9. INNOVATION

RERL has been at the forefront in innovating technologies as well as approaches for promotion of renewable energy in Nepal. This includes removing barriers for promotion of large scale RE systems such as mini hydro and large solar PV projects. RERL has also been supporting AEPC for sustainable operation of micro hydropower projects. In this regard, RERL has come up with the concept of ‘Renewable Energy for Enterprise Promotion and Renewable Energy as an Enterprise’. The main concept is to look at RE projects not only as social infrastructures but also as profit making assets. RERL has been piloting MHP as an enterprise concept in 25 MHPs by strengthening their institutional capacities, exploring opportunities for optimum utilization of electricity and building positive incentives in management processes. In 2018, RERL supported the 29kW Simli Khola MHP to lease out their plant to a local entrepreneur under Community Private Partnership model. After the leasing out, Simli Khola MHP has increased revenue collection by 3 folds to NPR. 75,000 per month.

RERL is also collaborating with Global Alliance for Clean Cooking (GACC) to promote electric cooking in mini/micro hydro catchments areas. In this regards, RERL is working with PEEDA, Coventry University and Bristol University of UK in Rukum district to test electric stoves and understand users’ acceptability. After laboratory testing, induction stoves were given to 10households in Simli Khola MHP catchment area in Rukum district. A two-week long baseline survey was carried out to find out the cooking habits, types and quantities of fuel used, etc. in 10 households before connecting the electric stoves. A separate three phase data logger and sensors were used to measure data in the power house to determine effects of induction cooker on the generator. The field test was conducted for 2 weeks and a follow up consumer satisfaction survey was also carried out. It was found that the micro hydro plant operated without any problems during the test. On the consumer side, it was found that they were satisfied with the performance of induction heaters/cookers as it not only saved time and fuel cost but also time for cleaning cooking utensil. RERL will field test Infra-Red and Low Wattage Heat Storage Stoves in 2019.

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7.10. KNOWLEDGE MANAGEMENT AND PRODUCTS

Utility Scale Solar PV Guidelines Mini hydro Operation Guidelines Municipal Energy Plan (MEP) Documentary on Commercial Operation of Micro Hydro Documentary on Energy for Education Documentary on Telkuwa Irrigation Documentary on Dhading Solar Infographics (SDGS) http://www.aepc.gov.np http://np.undp.org/RERL http://www.undp.org

8. LESSONS LEARNED

Community Private Partnership (CPP): In 2018, RERL supported the community of 29kW Simli Khola MHP to lease out their plant to a local entrepreneur under Community Private Partnership model. Mr. Moti Ram Roka, the leasee is responsible for day to day operation and management including tariff collection and productive end use promotion. Mr. Roka makes about NPR. 75,000 a month mainly from 40 odd enterprises using electricity and pays NPR. 7000 to the community as per the lease agreement. Mr. Roka has increased the service hours of MHP to 22 hours to encourage enterprises. Involvement of the private sector/entrepreneur in management of community owned project with correctly aligned incentives helps in smooth operation of MHPs and increase revenue generation.

Capacity Development of Local Governments: Though the Constitutions of Nepal 2015 gives all the rights related to alternative/renewable energy to the local governments, their capacity is limited. Local governments require a lot of support to be able to plan, identification of projects, project implementation, monitoring and supervision. RERL is working with AEPC and other projects to develop guidelines and manuals to support the local governments.

Solar Irrigation: RERL has supported several solar irrigation projects with capacity ranging from community size to household size under different modalities in the past 3 years, all of these projects have private sector involvement in one way or the other. RERL in partnership with UNESCAP had supported Raksirang Solar Irrigation Project developed jointly by extremely marginalized Chepang community and a Kathamandu based energy company. This project is now bearing fruits as Chepang farmers are growing chilies which is marketed by Saral Urja in Kathmandu. Under another modality, RERL worked with CREF and UNCDF to establish Vendor Challenge Fund (VCF) to support private sector to develop RE projects. Gham Power Private Limited has provided solar pumping for 5 fish ponds in the far western Terai under VCF. As irrigation/water lifting facility directly contributes to agricultural production and thus cash generation, the private sector has shown interest to invest in such projects.

Management of Mini Hydropower Projects: Nepal has a lot of experience in micro (<100kW) and larger hydropower projects (>1000kW) for grid evacuation but limited experience in mini hydropower projects (>100 & <1000). This segment of hydropower is more complex than micro hydro but there is no economy of scale as in larger hydropower projects and thus has not been exploited. RERL carried out a study of mini hydropower projects in Nepal and found that most of them are not properly operated. There are only a few examples successfully operated mini hydro projects and all of them were supported by donors. The main lesson from these projects is that the rural community require extensive technical support before they are capable of operating mini hydropower project on their own.

http://www.aepc.gov.np/

http://np.undp.org/RERL

http://www.undp.org/

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9. IMPLEMENTATION ISSUES AND CHALLENGES

• Reluctance of BFIs in providing credit: Banks and Financing Institutions (BFIs) in Nepal are risk averse and do not want to invest in renewable energy systems in rural areas, particularly those owned and managed by a community. An RERL study identified reasons for their risk averseness and recommended several financial instruments to attract BFI in rural energy investment. RERL has been working with CREF to develop and establish financing instruments such as soft credit, credit guarantee, vendor financing, and project insurance among others, to attract BFI’s investment in renewable energy systems in rural areas.

• CREF not fully operational: Credit facilities are necessary to attract private investment and achieve

timely financial closure of larger projects like mini hydro. Lack of available credit with CREF has also hampered on time financial closure. AEPC is forwarding credit facility to CREF from ADB funded SASEC to promote mini hydro and solar mini grids. This will help in achieving financial closure of RERL supported projects too.

• Adoption of PEU in RE Projects: Reliability and quality electricity supply were few of the major reasons

for reluctance of rural entrepreneurs to invest in productive energy use enterprises in RE projects. Further, lack of professional management of community owned RE systems and limited market in rural areas for local products have also been cited as reasons for low investment. RERL has been working with PEUC of AEPC to realize the concept of energy as an enterprise as well as for enterprises. For example, the 83 kW Darna MHP, Achham is operated as an enterprise and will export power to neighboring Kala Gaun VDC which does not have resources of its own to produce electricity. It is expected that with extensive support on awareness, capacity enhancement and transparent governance, most of the MHPs supported by AEPC could be encouraged towards commercial operation.

10. PRIORITIES FOR 2019 TA for SASEC: South Asia Sub-Regional Economic Cooperation (SASEC) project intends to support rural communities to install 4.3MW of mini hydro and 500kW of solar mini grids. ADB and AEPC agreed to continue RERL TA support from 2019 to 2021 under a cost sharing agreement with UNDP. RERL will continue technical assistance to SASEC to complete 1MW mini hydropower projects and 500kW solar mini grids projects in 2019.

Chinese Project: In 2018, UNDP Country Office China coordinated with country offices in Belt and Road area to submit proposals for China South-South Cooperation Assistance Fund (SSCAF). RERL submitted a proposal for providing renewable energy solution mainly solar PV and clean biomass in 10 rural municipalities of border districts.

Terminal Evaluation of GEF: As per GEF requirement, RERL’s Terminal Evaluation needs to be carried out 3 months before the end of the project. RERL has planned to organize TE in the second quarter of 2019.

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11. A SPECIFIC STORY 2

2 https://www.academia.edu/12862631/Venomous_Snakes_and_Envenomation_in_Nepal

Countless Lives Saved through

Solar PV Back up System

in Health Center

Dr. Sandip Mahat expressed his happiness that with solar PV back up system, they could now easily

operate all the equipment and safely store anti-venom vaccines. Dr. Mahat is the Head of Salkot

Primary Health Centre, Surkhet, one of the beneficiaries of UNDP funded solar PV back up systems

installed by RERL in 2018. He further added that 3 snake bite victims died the previous year as the

Centre was not able to treat them with properly stored vaccines as the power from the local micro

hydro was not sufficient to operate all the medical equipment in the Centre. In 2018, UNDP provided

additional financial assistance to support install solar PV back up systems in 6 snake bite treatment

centers.

According to Prof. Shyam P. Lohani of Nobel College, Pokhara University, 4823 suspected snake

bite cases were reported in a one-year period between July 2008 and June 2009. However, there are

limited numbers of snakebite treatment centers in the country, which face additional challenge in

properly storing anti-venoms and operating suction machines due to poor and unreliable electricity

supply. To ensure safe and reliable anti-venoms storage, UNDP partnered with Government of Nepal

in 2016 to pilot solar PV back up systems in 3 snakebite treatment centers operated by the Nepal

Army in Morang, Sunsari and Jhapa districts, where the incidences of snakebite are amongst the

highest in Nepal. Each of the 1.5kWp Solar PV back up system provides electricity for storing anti-

venoms safely, operating suction pumps for cleaning the infections and nebulizer. This initiative

continues saving countless lives by making these centers to be energy independent.

https://www.academia.edu/12862631/Venomous_Snakes_and_Envenomation_in_Nepal

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12. RISK AND ISSUE LOGS

Table 11: Risk and Issue Log Matrix

S.N.

Description

Category (financial, political,

operational, organizational, environmental,

regulatory, security,

strategic, other)

Likelihood of risk

(scale of 1 to 5 with 5

being the most likely)

A

Impact

(scale of 1 to 5 with 5 being

the highest impact)

B

Risk factor (A x B)

Mitigation measures if risk occurs Date risk is Identified

Last Updated

Status

1 Political instability at local or national level

Political and Regulatory

3 5 15 • New constitution gives right to develop renewable energy & Mini Hydro to municipalities, which have only recently been elected & have limited capacity. This has affected project activities to some extent. To mitigate this situation, RERL and AEPC have carried out several orientation programmes for newly elected officials. Municipalities have provided financial assistance as investment in most of the Mini Hydro Projects.

• RERL started to prepare District Energy Plan but as the new constitution gives rights to municipalities and roles of districts are very limited, municipalities were supported to prepare Municipal Energy Plans. For this, RERL had modified the methodology which is also used by RERA/AEPC/GIZ to prepare Municipal Energy Plans (MEP) in provinces 1 and 7. RERL has already helped 2 municipalities to

October 2015

December 2018

Local Government Operation Act

Methodology of Municipal Energy Plan

Municipal Energy Plan

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prepare Municiapl Energy Plans of Palungtar Municipalty, Gorkha and Mahankal Rural Municipality, Lalitpur and 5 are ongoing. RERA plans to prepare similar MEPs. RERL is actively working with AEPC and other governmental agencies to define roles and responsibilities of institutions at different levels of governance viz. municipalities, provinces and federal.

In this regard, instead of preparing 15 DEMP, RERL will work with municipalities to prepare 15 MEMP. However, due to the municipal elections, they are yet to be fully operational. This will delay RERL activities at the local level. RERL has been supporting recently elected municipal personnel to understand RE development in Nepal and their roles and responsibilities.

2 Lack of interest on the part of private sector in investing in off-grid projects

Financial 5 5 25 • The private sector in general have high risk perceptions for investing in off grid projects. In spite of several calls for proposals, private sector has not indicated its willingness to invest in RE projects in rural areas. To overcome the situation, AEPC/RERL has encouraged the beneficiaries to establish SPVs Cooperative/Company) to own & operate their RE systems.

• 1 private sector has come up with a proposal for development of a 200kW project in Dailekh district.

14 October 2017

14 October 2017

• Delay in financial closure of mini hydro projects

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3 Lack of willingness of banks to lend to off-grid projects

Operational 3 3 9 On the one hand, Banks consider remote rural off-grid project as high risk and on the other they have very limited experience in funding smaller hydro power projects (<1000kW). RERL and CREF worked in two different fronts to ameliorate this situation; i) Orientation to the Banks on Mini Hydro and Large Solar PV Systems and ii) Development of appropriate financial instrument.

• RERL has supported CREF to establish & operationalize innovative financial instruments including ‘Credit Guarantee’ to mitigate risk, which has helped attain financial closure of 6 Mini Hydro projects. This mechanism needs to be continued until BFIs have confidence in remote rural off grid projects.

30 June 2017

December 2018

• RE projects are not financially attractive

4 Lack of interest by local people in productive applications

Operational 3 3 9 RERL has adopted "Commercialization" of MHP as a strategy for financial sustainability. The strategy includes institutional strengthening and promotion of productive end uses. Besides traditional PEUs, RERL is carrying out field research to promote electric cooking, water & space heating as suggested by MTR.

1 Jan 2017 December 2018

• Field testing

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Table 10: Issue Log Matrix

S.N. Type Date

Identified

Description and Comments

Resolution measures recommended

Status of the issue Status Change Date

1 Government not implementing any effective policy to encourage renewable energy investment from the private sector

December 2017 Delay in implementation of project activities due to long transition period. Municipalities are yet to be fully functional.

AEPC/RERL will take initiative to orient provincial and Local Governments to initiate RE activities.

RERL is actively working with AEPC and other governmental agencies to define roles and responsibilities of institutions at different levels of governance viz. municipalities, provinces and federal.

March 2018

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13. PROGRESS AGAINST ANNUAL WORK PLAN 2018

Project Title: Renewable Energy for Rural Livelihood Programme (RERL)

Award ID: 76958

Duration of this plan : 01 January - 31 December 2018

Country Programme Outcome 1: By 2022, impoverished, especially economically vulnerable, unemployed and under-employed and vulnerable people, have increased access to sustainable livelihood, safe and decent employment and income opportunities

Country Programme Output 1.1: Policy, institutional and capacity development solutions lead to improved disaster and climate resilient livelihoods, productive employment and increased productivity in rural areas

Country Programme Output 1.1.2: Number of households with energy access with UNDP-supported interventions (SDG7.1.1)

EXPECTED OUTPUTS

Activities Planned Activities

Donor (name

and code)

Annual Achievement of Target

Annual Achievement of Target

in %

Approved Budget

from AWP

Amount Spent

Delivery

UNDP/CPAP Output 2.4.1: Alternative Energy Promotion Centre's capacity enhance for scaling up energy services in rural areas

Activity Result 1: Strengthened legal, institutional, policy, planning, and information environment ensures increased RE investment and utilization

Annual Target : Comprehensive Renewable Energy Policy Formulated

Output 1.1: Policy in place operationalizing PPP model for mini-hydro, large-scale solar PV development, productive end-use applications including fiscal incentives and adaptability for possible changes in Nepal government structure (to federal system)

Technical Assistance 100% 33,350 33,138

99%

Sub-Activity 1.1.1.1 Finalize Renewable Energy (RE) Policy and support for its promulgation through government.

RE in Federal Structure

GEF Prepared Mini Hydro

Operational Guidelines

100% 1,000 944

94%

UNDP Workshop on

Strategic & Planning 100% 4,150 3,897

93%

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Institutional arrangement in federal structure

GEF

Support AEPC to prepare Renewable Energy Service Package for Local and Provincial Government.

100% 1,000 967

97%

GEF Workshop on AEPC’s

role in Federal Context

100% 4,000 3,924

98%

Activity 1.1.2 Support preparation and adoption of policy for future grid connection of off-grid mini-hydro, micro-hydro mini-grid, and large-scale solar PV systems

Technical Specification for Grid connection of Solar PV

UNDP Prepared Utility Scale

Solar PV Guidelines 100% 17,000 17,867

105%

Economic and Financial Viability of MHP

UNDP

Assessment on Quality of Access to Energy Services, Institutional Structure and Economic Viability of Various Technological Options for Electrification in Rural Nepal

100% 4,000 3,991

100%

Study on Air Pollution

UNDP Study on Air Pollution 100% 3,300 3,300

100%

Output 1.2: Adequate information available for incorporating mini-hydro and large scale solar PV systems into district RE plans

Activity 1.2.1: Prepare methodology for integrating mini hydro projects and large scale solar PV system into district energy plans.

Support to prepare 15 Municipal Energy Plan

UNDP Support

Municipalities to prepare Energy Plan

100% 11,000 11,039

100%

Annual Target : Comprehensi

Output 1.3: Completed training and awareness programs for relevant government agencies and stakeholders on mini-hydro and large-scale solar PV systems development and on productive end uses

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ve Renewable Energy Policy Formulated

Activity 1.3.3 Completed training and awareness programs for relevant government agencies and stakeholders on mini hydro and large scale solar PV system

Knowledge Products

UNDP

Prepared Knowledge Products of RERL such as Website, Infographics, Metallic Board

100% 5,000 4,924

98%

Knowledge Sharing Event

UNDP

RERL Evaluation and Further Planning Meeting - Discussion on AEPC support package for provincial and local governments

100% 6,900 6,849

99%

Sub Total Activity Result 1 89,700 89,873 100%

Activity Result 2: Increased investments in RE

Output 2b.1: Demonstrated PPP models facilitating cooperation between private sector, public sector, and local organizations through establishment of Special Purpose Vehicles (SPV) in three selected mini-hydro projects (1 MW)


98%

Activity 2b.1.1: Update the feasibility study of the selected Mini-hydro demonstration projects to make it bankable

Detailed Feasibility Study of Mini Hydro Projects

GEF IEE OF Chukeni Khola

Mini Hydro Project, Patrasi Jumla

100% 2,250 2,249

100%

Activity 2b.1.2: Support to establish and strengthen suitable institutional arrangement for development and management of mini hydro projects including SPV model

Establishment & Straitening of SPVs

GEF

Legal Compliance Support to Tara Khola Jalabidhyut Limited, Baglung and Bom Khola Mini Hydropower Limited, Lukla, Solukhumbu.

100% 2,800

2,793

100%

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Annual Target: Demonstrate 1 MW mini hydro projects

UNDP

Workshop on MHP Operation and Management

Orientation to community on MHP companies including exposer visit

100% 1,600 1,594

100%

2b.1.5: Assist in achieving financial closure based on PPP model

Support for financial closure of Mini Hydro

GEF

Inspection visit of 500kW Khatyad Khola Mini Hydro Project for financial closure

100% 2,000

1,765

88%

Output 2b.3: Demonstrated financially sustainable and reliable large scale solar PV systems (500 kW total)

Activity 2b.3.2 Conduct detailed feasibility study of selected demonstration projects

Detailed Feasibility Study conducted of selected Solar PV demonstration projects

GEF

Detailed Feasibility Study (DFS) of Solar Mini-Grid Project Clustering Dailekh, Rolpa and Palpa

Energy Assessment of design of solar PV systems in Province 1 and 2

DFS of solar pumping in Bara and Jaleswor ward 5 and 2

100% 16,700 15,925

95%

Activity 2b.3.7: Provide technical assistance for installation of the project

Pilot large solar PV village electrification project

UNDP

Installation of Solar PV System in Madanpur, Kabilashi Nagarpalika, Sarlahi, Nepal

100% 2,500 2,458

98%

DC Micro Grids - Morang and Parsa

UNDP 3 Solar Micro Grid

installed in Morang and Parsa

100% 98,875 98,875

100%

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Powering in Birthing Centres with Solar PV Supported By UNICEF in Mugu

UNDP

Solar PV back up system installed in Birthing Centers and Health Posts in Mugu and Surkhet

100% 26,500 26,500

100%

UNDP

Conducting Energy Assessment of Birthing Centre in Mugu

100% 1,600 1,384

87%

Solar PV Backup for Snake Bite Treatment Centre Operated by Nepal Army

UNDP

Solar PV back up systems installed in 6 in Snakebite Treatment Centers in Terai

100% 55,200 55,200

100%

Solar Pumping

GEF 10 Rural Solar

Drinking Water Projects completed

100% 6,500 6,169

95%

UNDP Garnt to AEPC for

implementation of MHPs

100% 4,000 3,623

91%

Activity 2b.3.9: Document and disseminate lessons learned

Documentations GEF

Prepared Video documentary on Grid Connection of MHP

Prepared 2 Success Stories (Grid Connection, Policy Intervention of Grid connection)

Collection of stories on Earth quake affected areas in Sindhupalchowk and Dolakah

Documentary on Dhading Solar Projects

100% 8,500 8,069

95%

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Annual Target: Demonstrate 1 MW mini hydro projects

Output 2b.4: Operationalized 2 MW of off-grid large micro-hydro (over 60 kW) power projects demonstrating cost-advantage, feasibility, productive end-uses, and best practice through technical assistance

Activity 2b.4.1 Assist AEPC/NRREP to implement the projects

TA for project implementation

GEF

Detailed assessment of Power Output Verification of Malekhu Khola, Dhadig

Status of 30 MHP sick projects

Detailed Assessment of Suryana Gad MHP, Baitadi

100% 16,500 15,452

94%

EQ Relief and Rehab Micro Hydro and Solar

Documentary UNDP Documentary on

Telkuwa, E4E, Lift Irrigation, Earthquake

100% 7,000 6,214

89%

Output 2b.5: Completed financial closure of 7 MW of off-grid mini-hydro power projects replicating PPP model through establishment of SPVs, demonstrating cost-advantage, feasibility, productive end-uses, and best practice through technical

GEF

IEE of Namche Spring MHP, Solu

PFS of Khaksewa Khola, Taplejung

DFS of Parajul Khola Dailekh

PFS of Tesu Khola MHP, Sankhuwashabha

Layout Design of Saniveri MHP

PFS of Phu Gad MHP, Kalikot

DFS of Amadablam MHP, Solu

Study on cost design review and optimization study of Tap Khola MHP, Khotang

100% 45,000 44,560

99%

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PFS of Kunikhop Khola and Cheyong Khola MHP, Solukhumbu

Tara Khola Monitoring Baglung

PFS of Rati Khola and Lohare MHP, Dailekh

DFS of Jhankre Khola II MHP, Dolakha,

DFS of Sanni Gad Mini Hydro Project

Sub Total Activity Result 2b 4,01,525 3,95,161 98%

Activity Result 3b. Improved design and packaging of investment support mechanism for rural RE and other low carbon technology applications

Output 3b.5: Functional enterprises adopting productive use of electricity

Technical Assistance 100% 25,500 24,773 97%

Annual Target: Support CREF to design financial instruments for financing RE Projects

Activity 3b.5.1 Prepare guidelines for identifying and assessing existing and potential enterprises

Prepare a model to promote cluster of enterprises in mini /large micro hydro catchment area

UNDP

Institutional Strengthening and Commercial Operation of MHP in Achham, Bajura, Rukum and Rolpa

Impact Study on Post Installation support services in selected MHP

Conduct Assessments Identifying Key Areas to Enhance Enterprises through Renewable Energy to Improve Livelihoods of the People belonging to the Rural Communities

100% 16,000 16,460

103%

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Video documentary and Case study of commercial operation of MHP

UNDP

Video Documentary on Commercial Operation of MHP

Case study on Darna MHP Achham

100% 5,000 4,812

96%

Consultation workshop on MHP as enterprise in KTM

UNDP

Workshop on MHP as Enterprise Management Guideline

100% 1,000 923

92%

Activity 3b.5.2 Support the RE project developers (SPVs) in preparing business plan for promoting productive use of electricity

Business Plan of SPVs

UNDP

Training and Enterprise Creation and development in Simrutu Khola MHP in Rukum

Data collection of MSME in selected MHP

100% 12,100 12,130

100%

Activity 3b.5.4 Support existing entrepreneurs for switching to electric energy

Prepaid meter UNDP

Testing and Installation of 112 units prepaid Energy Meter in Bhorleni Solar Wind Mini-grid Project Phaparbari VDC-8, Makwanpur

100% 8,300 8,651

104%

Fuel Swithing (Allo, Lokta)

GEF

Collection of Success Stories on Fuel Switching technology (Lokta Dryer) in Ghandruk, Kaski.

100% 400 326

82%

Piloting electric cooking, water & space heating

UNDP

Feasibility Study of Electric Clean Cooking Program in Solabang, Rukum.

100% 10,000 11,039

110%

Output 3b.7: Ensured women and marginalized/vulnerable groups own 33% of the functional electricity based enterprises established

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Activity 3b.7.1: Provide training/orientation to potential women and marginalized entrepreneurs to switch to electricity and to establish new enterprises

Training/Orientation

UNDP

15 Days Basic Mobile Phone Repair Training to Women from Micro Hydro Power Project in Musikot, Khalanga, Rukum

Financial Literacy Training Program in Rukum, Khalanga from 1-9 October 2018

100% 10,000 10,657

107%

Sub Total Activity Result 3b 88,300 89,771 102%

Activity Result 4. Enhanced Capacities and skills of various stakeholders in the RE sector

Annual Target : Enhance technical capacities and skills in design, manufacture, installation and operation, management of rural RE projects planning, assessment and monitoring

Output 4. 2: Fully trained skilled and technically capable people available for project identification, feasibility studies and detailed design of mini-hydro and large-scale solar PV systems


87%

4.2.2 : Support NRREP in conducting capacity building trainings for developers, consulting firms, and relevant service providers for Mini-hydro projects

TOT for field coordinator & manager on enterprise development & preparation of business plan

UNDP

Conduct Orientation Program on Productive Energy Use for TRSP Focal Persons/Field Coordinators from 28-31 March 2018.

100% 4,500 4,393

98%

Output 4.3: Fully trained skilled and technically capable mini hydro manufacturers in identified areas and their after-sales services

Activity 4.3.3: Quality assurance procedures, training curriculum and manuals for Mini-hydro manufacturing and development

Support AEPC for building up field monitoring capacity

UNDP

Training for Third party Monitoring Consultants 29-31 March 2018

100% 7,500 7,387

98%

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Output 4.5: Fully trained, skilled and technically capable people available for operation, maintenance and business management of mini-hydro projects and large-scale solar PV systems

Activity 4.5.1: Develop O&M training curriculum and manuals for Mini-hydro and conduct training based on these(Operation)

Develop O&M manual and training

UNDP

Tariff Fixation and Operation Guidelines for the Management of Mini Hydro Power Projects

2 Days Workshop for Governance System of Mini Hydro Project

100% 6,000 5,852

98%

Activity 4.5.2 Develop O&M training curriculum and manuals for large-scale solar PV systems and conduct training based on these

Training on house wiring training to SASEC participants

UNDP

Training on Solar System Operation, House Wiring and Electrical Safety for Solar Mini Grid Projects

Basic House Wiring Training to Selected Participants from the Catchment Area of Tara Khola Jalabidyut Company, Baglung

100% 10,000 10,788

108%

Activity 4.5.3 Conduct O&M training for large-scale 60kW+ micro hydro plants (Operation)

Conduct O&M training for MHP

UNDP

Training for Operators of Micro/Mini Hydro Power Project at Khomari Khola MHP, Babiyachaur,Surkhet

100% 8,000 7,580

95%

Activity 4.5.4: Develop business management training curriculum and manuals for Mini/micro-hydro and large-scale solar PV systems

Conduct training on business management for Mini-hydro and large-scale solar PV systems ( Co-operative training)

UNDP

Computerized Billing System Training in Madhyapur Thimi from 18-28 May 2018

100% 9,000

9,211

102%

Sub Total Activity Result 4 46,500 46,512 100%

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Total Programme Cost 6,26,025 6,21,317 99%

Activity Result 5: Programme Support

Programme Support Activities

GEF Programme Support

Cost

100% 32,000 31,508 98%

UNDP 100% 169,975 167,818 99%

Sub Total Program Support Cost 201,975 199,326 99%

Total for RERL Programme ID:88046 8,28,000 8,20,643 99%

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ANNEXES Annex 1: List of Municipality (Demand for MEP)

Annex 2: List of Institutional Solar PV installed in 2018

S.N. Project kWp Location District

1. Snake Bite Treatment Center 2 Mahendra Nagar (Nepal Army Gad) Kanchanpur

2. Snake Bite Treatment Center 3 Mahendra Nagar (Nepal Army Bahini)

Kanchanpur

3. Snake Bite Treatment Center 3 Dipayal, Nepal Army (Nepal Army Bahini)

Dipayal

4. Snake Bite Treatment Center 2 Bardibas Mohotari

5. Snake Bite Treatment Center 2 Bhagawotipur Sarlahi

6. Snake Bite Treatment Center 2 Nawalpur Sarlahi

7. Health Center 2 Upaswasthy Chowk, Raksirang -6 Makawanpur

8. Community Health Center 2 Raksirang -4 Makawanpur

9. Health Center 3 Surkhet Surkhet

S.N. Municipality/Rural Municipality Province Fund Allocated (NPR.)

1. Phikkal RM 3 100,000.00

2. Bagmati RM 3 100,000.00

3. Konjyosom RM 3 100,000.00

4. Madandepur RM 3 200,000.00

5. Gorkha M 4 300,000.00

6. Dudhpokhari RM 4 100,000.00

7. Paterwasugauli RM 2 100,000.00

8. Malangwa M 2 200,000.00

9. Laxmaiya RM 2 100,000.00

10. Nagarain M 2 200,000.00

11. Tilathi Koilari RM 2 300,000.00

Total 1,800,000

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10. Bama Birthing Center 3 Chhayanath Rara NP Mugu

11. Mangri Birthing Center 2 Mugum Karmarong GP Mugu

12. Kimari Birthing Center 3 Mugum Karmarong GP Mugu

13. Pulu Birthing Center 3 Mugum Karmarong GP Mugu

Total 32

Annex 3: List of Solar Mini Grid installed in 2018

S.N. Project

kWp

HHs Location

District

1. Naya Basti Solar Mini Grid 5 30 Jahada-7 RM Morang

2. Birpur Solar Mini Grid 8 48 Jahada-2 RM Morang

3. Avadhpur Solar Mini Grid 5 85 Jagarnathpur-4 RM Parsa

Total 18 163

Annex 4: List of Micro Hydropower Project Installed in 2018

S.N Project Municipality District kW HHs

1. Menkhu Khola MHP Bhume Gaunpalika - 3 Solukhumbu 15 150

2. Darimgad Khola Sotang Gaunpalika - 2 Bajhang 30.5 305

3. Nunekhu Khola Bungal Municipality Udayapur 15 150

4. Tunbang Khola Tapli Gaunpalika - 1 Rukum 32 283

5. Bhuka Khola Pandav Gupha Gaunpalika Bajura 100 1004

6. Kansa Gad Tribeni Munincipality Bajura 45 399

7. Sou Khola Fikkal Gaunpalika - 6 Sindhuli 18 204

8. Taru Gad Chhabispathivera Gaunpalika -1 Bajhang 27 27

9. Dungari Gad Masta Gaunpalika -1 Bajhang 18 320

10 Wachinle Khola Tyamkemaiyum Gaunpalika - 3 Bhojpur 40 270

11. Bhuchchi Khola Putha Uttarganga Gaunpalika - 14

Kalikot 35 280

12. Domahi Khola Palata Gaunpalika, - 7 Rukum (E) 13.5 254

13. Naiwang Khola Sunchhari Gaupalika Rolpa 100 918

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14. Okam Khola Putha Uttarganga Gaunpalika Rukum (E) 69 531

15. Korung Khola MHP (RSC)

Gaurishankar Gaunpalika - 7 Dolakha 30 247

16. Lokante Khola MHP Kanda Gaunpalika -4 Bajhang 18 160

17. Chinde Khola MHP Savapokhari Gaupalika 20. 169

18. Pankha Kosane Khola MHP

Sarkegad gaupalika Humla 60 502

19. Kuchhe Ghatte MHP Gajadulla Gaunpalika Dolpa 50 419

20. Sepu Khola Barakot Gaunpalika-8 Jajarkot 33 300

21. Gandi Gad MHP Purbichauki Gaunpalika - 6 Doti 90 545

22. Okhatte Guda Khola Mheri Gaunpalika - 8 Jajarkot 15 240

23. Nera Khola MHP Soru Gaunpalika Mugu 65 546

24. Labur Khola MHP Chaurjahari Muncipality Rukum (W) 85 961

25. Chmbang Khola Duikhli Gaupalika - 5 Rolpa 41.5 538

26. Mangmaya II MHP Maiwakhola Gaupalika - 3 Taplejung 62 346

27. Baudi Khola II MHP Nisdi Gaunpalika – 5 Palpa 26 182

28. Ikadi Gad II MHP Budhiganga Municipality Bajura 100 1,117

Total 1253.5 11,367

Annex 5: List of Rehabilitated Micro Hydro

S.N Project Municipality District kW HHs

1. Durlung Khola I MHP Khani Khola Gaupalika Kavreplnchowk 15 138

2. Chau Khola II MHP Khani Khola Gaupalika Kavreplnchowk 24 239

3. Chau Khola IV MHP Mahabharat Gaupalika Kavreplnchowk 20 205

4. Khani Khola I MHP Khani Khola Gauplaika Kavreplnchowk 23 154

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5. Gumba Khola MHP Jugal Gaupalika Sindhupalchowk 12 160

6. Bhadrawati Khola MHP Kalinchowk Gaupalika Dolakha 15 135

7. Chyane Gumu Khola MHP Kalinchowk Gaupalika Dolakha 76 678

8. Gumu Khola Vyakure MHP Kalinchowk Gaupalika Dolakha 52 474

9. Chhahare Khola MHP Sulikot Gaupalika Gorkha 21.5 260

Total 258.5 2,443

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ANNEX 6: Photo Gallery

ANNEX 6: Photo Gallery

Paying Electricity Bill in Darna MHP, Achham Women Members Participating in Saving Credit Activity in Achham

Power House Under Consturction: 200kW Simrutu Khola Mini Hydro,

Rukum Women Member took part in financial management training in

Achham

8kW Solar Mini Grid in Jahada RM, Morang 25kW Olane Solar Mini Grid in Panchthar

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