NepalEnergyForum

Micro-Hydro Grid Integration, Sustainability and Energy Transition Discussed at Visions Innovation Lab Conference

Kathmandu: A Transdisciplinary Conference has been concluded under the “Visions Innovation Lab” project, organized by Winrock International in collaboration with PEEDA and RECOFTC Nepal. Held with the support of the Alternative Energy Promotion Centre, the conference featured extensive discussions on clean energy transition, rural resilience, and the sustainability of micro-hydro systems.

Addressing the conference, Nisha Jaiswal, Senior Program Officer at Winrock International, said the organization has been working over the past few years in Baglung and Jumla with a focus on the long-term sustainability of decentralized renewable energy systems. She noted that the project has emphasized not only technical aspects but also understanding the interconnections between energy systems and livelihoods, landscapes, financial conditions, and local governance systems.

She further informed that the project has advanced initiatives such as micro-hydro grid interconnection, productive use of electricity, e-cooking, e-mobility, and bio-engineering for climate resilience. As the project has reached its final phase, the conference was organized to facilitate knowledge exchange, share experiences, and discuss future strategies.

Speaking at the event, Winrock International Country Director Bandrinath Baral said, “We are not talking about megawatts, but the impact of kilowatts,” emphasizing that energy generated at the local level can bring significant changes to rural livelihoods and the economy. He noted that micro-hydro systems are not only energy infrastructure but are also closely linked to the overall development of communities, adding that the project has been implemented in collaboration with various agencies.

The project has moved forward with financial and technical support from the Nepal Electricity Authority, the Alternative Energy Promotion Centre, the British Embassy’s NRREP project, the European Union, and GIZ, among other development partners. Active participation from local governments was also described as significant.

Among the project’s key achievements, Baral highlighted the formation of the “Daram-Badigad Watershed Inter-Local Government Coordination Committee” with the participation of seven local units in Baglung and Gulmi, the connection of micro-hydro systems to the national grid through a cooperative model, and the promotion of productive electricity use. According to him, micro-hydro income increased by 42 to 50 percent after grid connection.

Similarly, feasibility studies for e-mobility operations in western Baglung and pilot testing of e-cooking have shown positive impacts on local enterprises and household use. Baral also said that bio-engineering measures using local plants such as nettle have been adopted to reduce climate risks.

At the program, Alternative Energy Promotion Centre Executive Director Nabraj Dhakal said Nepal has been advancing programs in line with the government’s energy development roadmap, the net-zero target by 2045, and the Sustainable Development Goals.

He said micro-hydro projects should be registered as companies, adding that around 1,950 projects in the micro-hydro sector have so far generated more than 40 megawatts of electricity, while 16 projects have already been connected to the national grid.

Speaking at the inaugural session, Gandaki Thapa Adhikari, Chairperson of Badigad Rural Municipality in Baglung district, said that in the past, micro-hydropower projects built through the initiative of local residents in areas not reached by the national transmission line had made significant contributions to education, healthcare, and the operation of local industries. She added that there is now strong potential to gain further benefits by integrating those projects into the national grid.

Adhikari informed that Badigad Rural Municipality alone has 14 micro-hydropower projects, stating that grid connection has helped prevent electricity wastage, increase production, and improve the long-term sustainability of the projects.

Likewise, Narayan Prasad Chaulagai, Senior Energy Advisor at GIZ, said the organization has always remained committed to the promotion and development of micro-hydro projects. Samuel Fell, Economic Team Leader at the British Embassy, said transmission lines remain the main challenge.

The conference also discussed issues such as energy transition, mobilization of climate finance, carbon trading, and viability gap funding. Participants said the sustainability of micro-hydro is no longer just a possibility, but is becoming a practical reality.

The first technical session of the conference focused on the “Future of Micro-Hydro.” Chairing the session, Nepal Electricity Authority Director Teknath Tiwari said effective coordination between the Nepal Electricity Authority and micro-hydropower projects is essential to maintain grid reliability.

“Particularly in trimming branches or cutting trees near transmission lines, consent and cooperation from local governments are crucial so that electricity services are not disrupted by storms or other causes. In terms of the metering system, earlier there was a compulsion to travel to Hetauda or Kathmandu for meter testing and programming, but now such services are available through provincial offices. The use of smart meters has made operations easier and more efficient, as configurations can be changed remotely according to approved capacity,” he said.

He further said that installing relays and breakers in accordance with standards set by the authority may increase costs somewhat, but it is essential for equipment and human safety. He added that the decision on whether to transmit electricity at 11 kV or 400 volts can be made based on technical and economic considerations depending on the project site.

It was also noted that priority should first be given to consuming electricity generated by micro-hydro projects at the local level. For this, local enterprises such as wine industries can be encouraged, which would help increase project revenues.

He stressed that micro-hydropower projects should be operated under the concept of “Fit and Take Care” rather than “Fit and Forget.” Instead of depending on outside technicians, projects become more sustainable and effective when local manpower is trained and made skilled.

During the session, Shubhalaxmi Shrestha, Deputy Director at the Alternative Energy Promotion Centre, said that so far only 18 micro-hydro projects have been connected to the grid. She added that work is underway with the Nepal Electricity Authority to connect another 100 or more micro-hydro projects.

According to her experience, it has been very difficult to convince consumers to connect micro-hydro projects to the grid. She said consumers now need to think in terms of a business model. She also noted that many complaints have been raised about the high cost of grid connection, and efforts are being made to make it more affordable.

RECON Chairperson Kushal Gurung said all micro-hydro projects need to be integrated under a structural model. He stated that even with a 50 percent subsidy for grid connection, the payback period remains four to five years, making it a high-risk investment. “It would be better to move ahead in partnership with the private sector. This should be advanced through a business model,” he said.

GIZ Energy Advisor Tripti Prajapati said connecting micro-hydro projects to the grid should be viewed not as a challenge but as an opportunity. She informed that two micro-hydro projects have already been connected to the grid through GIZ support, adding that technical, financial, and institutional capacity are crucial for success. Besides grid connection, she said opportunities also exist in promoting electric stoves, electric vehicles, and the operation of small industries.

According to Narayandhoj Khadka, President of the National Micro and Mini Hydro User Society, even though the government provides a 50 percent subsidy, it has been difficult for community electricity users to raise the remaining 50 percent. He also said persuading consumers to agree to grid connection has been the most complex challenge. He added that they are ready to move forward in collaboration with the private sector and see net metering as an opportunity.

Similarly, Jhavinra Budhathoki, operator of Chachalghat Micro Hydro, shared his experience of successfully achieving grid connection despite various challenges. He said net metering is important for ensuring the sustainability of the institution, preventing electricity wastage, and strengthening its financial stability.

Overall, the first session of the conference held in-depth discussions on the real challenges of micro-hydropower, operational and management issues, policy complexities, and future prospects. All participants expressed consensus on the need to move forward by simultaneously strengthening community participation, technical improvements, and robust financial management to ensure long-term sustainability.

 

Urjasanchar