SUDIGGAA Final Version

Universalizing
Clean Energy in Nepal

A Plan for Sustainable Distributed Generation
and Grid Access to All by 2022
G O V E R N M E N T O F N E PA L
NEA
ENGINEERING
NATIONAL PLANNING COMMISSION COMPANY
K AT H M A N D U
Universalizing
Clean Energy in Nepal
A Plan for Sustainable Distributed Generation
and Grid Access to All by 2022
G O V E R N M E N T O F N E PA L NEA
ENGINEERING
NATIONAL PLANNING COMMISSION COMPANY
K AT H M A N D U
Universalizing Clean Energy in Nepal:
Sustainable Distributed Generation and Grid Access to All (SUDIGGAA) by 2022
February 2018
Copyright © 2018
Published by
Government of Nepal
National Planning Commission
Singha Durbar, Kathmandu
www.npc.gov.np
Printed in Nepal
Photo Credit: Government of Nepal, ADB, Babu Raja Maharjan, Debu Dahal and Sawrov Poudel
Designed and Processed by

Spandan Design Communication, Kupondole, Lalitpur
Printed in Nepal
KATHMANDU
NATIONAL PLANNING NEPAL
COMMISSION
Preface
Despite holding a mammoth potential for offers a practical guide for relevant stake-
generating clean hydropower, every three holders to undertake the ambitious task of
in ten rural Nepalese continue to live in supplying electricity to each municipality
darkness. They lack access to the nation- with their own generation. It presents a fi-
al grid, and the generation of electricity is nancially viable distributed generator for
centralized which is barely keeping up with each of the 753 municipalities and optimal
rising demand as the country urbanizes expansion of national grid to each munic-
fast. The national target, aligned with the ipality.
Sustainable Development Goals, is to strive
for universal access to modern sources of I take this opportunity to thank all officials,
clean energy well within 2030. particularly at NPC and NEA for their con-
tributions in pulling off this impressive feat
This study represents a bold policy foray, in record time. I have no doubt that when
jointly undertaken by the National Plan- the dream of near universal access to en-
ning Commission and the Nepal Electric- ergy is realized over the next decade, this
ity Authority’s Engineering Company. It initiative by NPC would have proved pre-
presents insights for policymakers and sciently instrumental.
Swarnim Waglé, PhD

Vice-Chair
KATHMANDU
NATIONAL PLANNING NEPAL
COMMISSION
Foreword
The topography of Nepal has always posed electricity to all Nepalis within a realistic
a challenge in ensuring access to electricity timetable.
in all parts of the country. Electricity today
is an essential component of daily life; it is We now need to develop plans and strate-
indispensable to augmenting productivity gies to realize this ambitious vision. This is
in any vocation, from subsistence agricul- one such plan. This action study of Optimal
ture to sophisticated manufacturing and Distributed Generation and Grid Access by
services. Realizing this, we have made 2022 provides a workable solution to pro-
solemn national and international com- vide access to grid electricity, with the ac-
mitments to expand the reach of modern tive participation of local governments.
Arbind Kumar Mishra, PhD

Member
NEA
ENGINEERING
COMPANY
THAPATHALI, KATHMANDU
Foreword
We thank the collective leadership of the to each of these municipalities is a solution
National Planning Commission for en- that we believed is the most viable and im-
dorsing this novel proposal. It is a matter plementable one to remove darkness from
of honor and privilege for a new company the remote villages of Nepal in five years.
like NEAEC to carry out this study and de- We will always remain grateful to the apex
sign work for the apex planning body of the planning body of Nepal to have had faith in
country. We hope the Government of Nepal our conceptual proposal and adopted it and
will consider the merits of these findings, even further led the whole research effort.
and move swiftly towards implementation. We are confident that a faithful realization
The two-pronged strategy of constructing of the possibilities exhibited in this study
distributed generation at local levels of will form a durable basis for Nepal’s long
governance and extending national grid term prosperity.
Hitendra Dev Shakya

Managing Director
NEA Engineering Company
UNIVERSALIZING CLEAN ENERGY IN NEPAL:
vi A PLAN FOR SUSTAINABLE DISTRIBUTED
GENERATION AND GRID ACCESS TO ALL BY 2022
Acknowledgements
This study is prepared by the National Plan- focal points. We would also like to thank Dr.
ning Commission (NPC) under the leader- Biswo Poudel for his constructive feedback
ship of the Vice-Chair Dr. Swarnim Waglé, related to economic analysis. We thank all
with the support of all Members of the Com- the offcials from participating ministries for
mission. Dr. Arbind Kumar Mishra, Mem- their contributions to this study. From the
ber of NPC, guided and coordinated the NEA Engineering Company, Hitendra Dev
study, aided by a core team of staff at NPC Shakya took on this challenging task at the
including Radha Krishna Pradhan, Tulasi request of NPC. A list of his team and con-
Prasad Gautam, Deepak Dhakal, Shiva Ran- tributors to this report is included in Annex 1.
jan Poudyal, Binda Sitaula and line ministry To all of them, NPC expresses its gratitude.
A PLAN FOR SUSTAINABLE DISTRIBUTED vii
Table of Contents
Preface III
Foreword IV
Foreword V
Acknowledgement VI
1 Introduction 1
1.1 The Global Context 1
1.2 The National Context 2
1.3 Identification of the Challenges 4
1.4 Exploration of Solutions 4
2 Findings 9
2.1 Hydropower 9
2.2 Solar 10
2.3 Biomass & Wind 13
2.4 Grid Extension 13
2.5 Financial Analysis of Generation Projects 14
3 Conclusion and Recommendations 23

3.1 Economic Analysis 23
3.2 Implementation Modality 25
4 Distributed Generation in each VM/TM 33
References 52
Annex 1: Contributors to SUDIGGAA 53

Annex 2: Glimpses of the Event 54
Annex 3: Selected Distributed Generation in each VM/TM with Existing
and Proposed Substations and Lines 56
vii
viii A PLAN FOR SUSTAINABLE DISTRIBUTED
A PLAN FOR SUSTAINABLE DISTRIBUTED 1
Chapter 1
Introduction
The National Planning Commission (NPC) curb the use of fossil fuel to combat climate Access to
commissioned the NEA Engineering Com- change; on the other hand, more than one electricity reduces
pany (NEAEC) to conduct the “Study and billion people in low- or middle-income human drudgery,
Analysis of Optimal Distributed Gener- countries of South Asia and Africa have no
enhances comfort
ation for Access to Grid Electricity for All access to modern electricity services. Access
and enables
in Five Years with Participation from Lo- to electricity reduces human drudgery, en-
safer and cleaner
cal-level Government.” The NPC, headed hances comfort and enables safer and clean-
by the Prime Minister of Nepal, is the apex er environment. It boosts productivity and environment.
advisory body of the Government of Nepal economic activity, creates jobs, and facili- It boosts
for formulating a national vision, periodic tates the delivery of education, health and productivity and
plans and policies for development. The government services. As services provided economic activity,
NPC assesses resource needs, identifies by energy are critical ingredients of socio- creates jobs,
sources of funding, and allocates budget for economic development, there is an urgent and facilitates
socio-economic development, while serv- need to enable modern electricity services the delivery of
ing as the central agency for monitoring for everyone. education, health
and evaluating development plans, policies and government
and programs. Recognizing the benefits of modern energy, services.
the United Nations (UN) led Sustainable
The NEA Engineering Company Ltd. was Energy for All (SE4ALL) initiative seeks
established to provide complete engineer- to ensure universal access to modern en-
ing services and solutions to hydropower ergy services and the Sustainable Devel-
and other infrastructure industry. Nepal opment Goal 7 (SDG7) aims to ensure ac-
Electricity Authority (NEA) holds the ma- cess to affordable, reliable, sustainable and
jority ownership (51%) and the remaining modern energy for everyone by 2030. The
49% of shares are held by the Vidhyut Ut- Government of Nepal (GoN) has adopted
padan Company Limited (17%), Rastriya a Multi-Tier Framework (MTF) for house-
Prasharan Grid Company Limited (17%), hold electricity access (shown in Table 1 )
and the Hydroelectricity Investment and to measure and track SE4ALL and SDG7
Development Company Ltd. (15%). energy access goals and targets.
The perils of destabilizing the climate

1.1 The Global Context through the unabated use of fossil fuel in
At the global level, the problems in the en- electricity generation have elucidated that
ergy and environment field are diverse. On Renewable Energy Technologies (RETs)
the one hand, affluent nations with high must play the leading role to achieve “uni-
energy-intensity are accelerating efforts to versal access to electricity” (currently de-
1
2 A PLAN FOR SUSTAINABLE DISTRIBUTED
fined as at least Tier 3 electricity access level ing agricultural productivity, health care,
of the MTF) by 2030. However, for coun- education and opportunities for entrepre-
tries like Nepal with limited resources, the neurship. The poor and rural households
prospect of enabling energy access through spend a large part of their income and time
renewable technologies is saddled with fulfilling their basic energy needs.
challenges.
It is estimated that approximately 30% of
the total population, mostly in remote vil-
1.2 The National Context lages, live in darkness. Based on the data of
Nepal is a mountainous country with 83% the number of customers that Nepal Elec-
of the land lying in the hills and high moun- tricity Authority and some small-scale dis-
tains. The high investments required to tributors serve, and the average size of the
It is build and extend distribution networks to household, it is estimated that only 60% of
estimated that remote areas have hindered government ef- the population has access to grid electricity,
approximately forts in the past to provide access to electric- and geographically, more than 60% of the
30% of the total ity for communities living in remote areas. country is deprived of access to the national
population, grid. Figure 1 presents access to electricity
mostly in remote Nepal’s labor force is disproportionately in Nepal according to economic quintile.
villages, live in employed in agriculture. In rural commu- Only about 40 percent of the poorest 20 per-
darkness. nities, shortage of energy negatively im- cent compared to 90 percent of the richest
pacts economic development by suppress- 20 percent households have access to elec-
Figure 1: Access to Electricity
Source: NLSS, 2012

Table 1a: Multi-tier Matrix for Access to Household Electricity Supply

TIER 0 TIER 1 TIER 2 TIER 3 TIER 4 TIER 5
Power Very low power Low power Min Medium High Power Very High
min 3W 50W Power Min 800W Power Min 2
Min200W KW
And Daily Capacity Min 12Wh Min 200 Wh Min 1.0 Min 3.4 Min8.2 kWh
kWh kWh
1. Capacity
OR Services Lighting of Electrical lighting,
1,000 lmhrs per air circulation,
day and phone television, and
charging phone charging
are possible
Hours per Day Min 4 hrs Min 4 hrs Min 8 hrs Min 16 hrs Min 23 hrs
2. Duration
Hours per evening Min 1 hrs Min 2 hrs Min 3 hrs Min 4 hrs Min 4 hrs
Max 14 Max 3
Attributes
disruptions disruptions per

3. Reliability per week week of total
duration < 2
hours
Voltage problems do not
4. Quality affect the use of desired
appliances
Cost of a standard consumption package
5. Affordability of 365 kWh per annum is less than 5% of
household income
Bill is paid to the utility,
6. Legality prepaid card seller, or
authorized representative
Absence of past accidents
7. Health and Safety and perception of high risk in
the future
1. The minimum power capacity ratings in watts are indicative, particularly for Tier 1 and Tier 2, as the efficiency of end-user appliances is critical to determining the
real level of capacity, and thus the type of electricity services that can be performed.
Table 1b: Multi-tier Matrix for Access to Household Electricity Services

General lighting Tier 2 AND Any Tier 4 AND Any
Not Task lighting Tier 3 AND Any high-
Tier Criteria Television Fan medium power very high-power
applicable Phone charging power appliances
(if needed) appliances appliances
Table 1c: Multi-tier Matrix for Electricity Consumption

Annual consumption levels, in kilowatt-hours (kWh) <4.5 ≥4.5 ≥73 ≥365 ≥1,250 ≥3,000
Daily consumption levels, in watt-hours (Wh) <12 ≥12 ≥200 ≥1,000 ≥3,425 ≥8,219
3
tricity. The disparity in access to electricity dition. Central grid access is essential for
has long-term implications on social equity accelerated boost to productivity and the
and justice. Mid- and Far-Western Regions economy. Moreover, community-based iso-
and rural areas of Nepal are more adversely lated micro-hydro or solar projects demon-
affected by the lack of transmission lines. strate a systemic weakness of unsustainable
operation. Subsidies provided to commu-
Inadequate supply of electricity is one of nities who help build and operate these
the main constraints to expediting eco- plants have resulted in a chronic depen-
nomic growth in Nepal. Quality electric- dence upon such handouts.
ity necessary for industrial activity is not
available to the isolated networks supplied More than 25% of the population has no ac-
either by rooftop solar or by micro-hydro cess to either on-grid or off-grid electricity.
plants. A workable solution in a short Biomass supplies 85% of the total final ener-
time-frame to provide access to grid elec- gy mix and the average per capita electricity
tricity is something the government is consumption annually (including domestic
keen to implement. and commercial consumers) is only around
150 kWh.
1.3 Identification of
Challenges 1.4 Exploration of Solutions
The difficulties in enabling access to elec- The traditional approach to electricity gen-
tricity in scattered settlements of the hilly eration has been to generate power through
and mountainous regions of Nepal are due large central power plants and transmit this
to underdeveloped road and transmission power to different load centers through
Inadequate
links posing a major challenge in achiev- T&D network (also known as the national
supply of
ing SE4ALL goals. Unplanned and random grid). This approach often results in low
electricity is extension of the grid to industries and set- cost of electricity generation; however, by
one of the main tlements is a burden for planners at the na- the time this electricity reaches the end
constraints tional level and the Central Utility (NEA) users located far away, the cost increases
to expediting as well. Moreover, demand consistently because of the additional costs and power
economic outweighs supply resulting in a dispro- losses incurred by the T&D network.
growth in portionate dependence on import of power
Nepal. Quality from India. In the absence of such imports, Distributed Generation (DG) is an approach
electricity scheduled power outages are likely to in- that employs small-scale technologies to pro-
necessary crease. duce electricity close to the end users of pow-
for industrial er. DG technologies often consist of modular
activity is not For off-grid population, the Alternative En- renewable energy generators, which have a
ergy Promotion Centre (AEPC) has been number of benefits such as lowering the cost
available to
promoting and subsidizing renewable tech- of electricity, and increasing the reliability
the isolated
nologies for low levels of energy access for and security of power supply with fewer
networks about 15% of the population. Unlike the social and environmental consequences.
supplied either central grid, isolated off-grid networks are Moreover, DG sources can use islanding
by rooftop solar unable to provide reliable and robust sup- techniques to serve the local distribution
or by micro- ply to support industrial usage of electric- network even when the central grid is offline
hydro plants. ity, thus limiting its growth and value ad- due to outages or load shedding.
5
By appropriately subsidizing the develop- economic benefits while enhancing the sus-
ment of Distributed Generation (DG) re- tainability of DG plants. The central grid
sources to make it attractive to the private can enable higher level of power and ener-
sector, GoN can deliver large economic gy consumption, which could qualify as the
benefits to the newly constituted Munici- highest level of household electricity access.
palities as well as help kick-start the local T&D network extension, which entails de-
economy. velopment of T&D lines, hubs, and substa-
tions to reach the Geographic and Demo-
Similarly, T&D network extension, al- graphic Centre (GDC) of Municipalities,
though capital intensive, can deliver large alongside the development of DG projects,
Figure 2: Overall Methodology
STEP 1: Grid Extension STEP 5: Financial Analysis of DG Projects
Financial analysis is performed to select the

Criteria is created to find sites for Substations
DG site with the best financial indicators to
and the alternate paths of the grid expansion determine the necessary investment and
Viability Gap Funding (VGF) amount.
STEP 6: Technical and Cost Analysis

STEP 2: DG Hydropower Projects
of Grid Extension
Technical analysis of grid Cost analysis is done
Criteria is created to screen and find max. 3
extension is performed with to determine the
best alternative sites consideration of selected investment necessary
DG sites to find the best for grid expansion.
grid extension path.
STEP 3: DG Solar PV, Wind Power, STEP 7: Economic Analysis

Biomass (or Hybrid) projects:
Province-wise Economic analysis is
Criteria is created to screen and find the best
performed to determine the feasibility of Grid
site. extension WITH DG development vs. Grid
extension WITHOUT DG development
STEP 4: District Field Visit STEP 8: Workshop & Feedback

Stakeholder workshop is Final report with findings
Findings are corroborated through district organized to disseminate is prepared incorporating
level site visit findings of the study, and comments and
receive feedback submitted to NPC
can decrease T&D losses and increase the mini-hydro, solar, wind, or biomass available
reliability of the power system. The GDC for development within their area, if the grid
locates the point within a Municipality that is available to balance the power by exporting
is the best location to build a Substation to the surplus and importing the deficit energy.
service all customers within the Municipal- Therefore, DG development integrated with
ity cost-effectively. the Top-Down approach of T&D network ex-
tension will enable the expanding network to
This concept of ‘Sustainable Distributed reach all the municipalities of Nepal as well Therefore, DG
Generation and Grid Access to All’ (SUDIG- as provide the local means of income through development
GAA) can act as a guiding principle for lo- Distributed Generation while comparatively integrated with
cal governments to optimally utilize subsi- reducing the demand on the central grid to the Top-Down
dies and scarce resources. SUDIGGAA has completely supply all areas. approach of
the potential to be a catalyst to electrify all T&D network
municipalities and economically exploit With this in mind, the overall objectives of extension will
local energy resources. SUDIGGAA has this study are to: enable the
many other benefits. DG plants can reduce expanding
capital and operational expenditure of • Study all the 753 Municipalities and
network to
Transmission and Distribution networks. identify the optimum extension path
reach all the
Hydropower plants reduce mainly active of the T&D network to increase access
municipalities
power losses while Solar PV plants provide to energy as well as integrate the pro-
reactive support to the grid and help to re- posed DG plants.
of Nepal as well
duce reactive losses. Additionally, they can • Find small-scale renewable sources as provide the
service local loads and further reduce trans- of electricity generation in these mu- local means of
mission losses of the grid. Moreover, DG nicipalities that can be developed and income through
development and T&D extension can have operated in a sustainable manner with Distributed
ripple economic effect through forward and access to the grid. Generation while
backward economic linkages. • Explore the economic and financial as- comparatively
pects of DG development and grid ex- reducing the
The concept of Distributed Generation (DG) tension including Viability Gap Fund- demand on the
in each municipality advocates the bot- ing (VGF) determination. central grid
tom-up approach for identifying the best • Prepare a workable plan for Sustain-
to completely
source of energy available locally consider- able Distributed Generation for Grid
supply all areas.
ing the population distribution and means of Access to All (SUDIGGAA).
production. From our preliminary examina-
tion, it is evident that most of municipalities The overall methodology is illustrated in
have one or more renewable sources such as Figure 2.
7
Chapter 2
Findings
hydropower does not consider the cost of
2.1 Hydropower land, which might be significant in some ar-
The study shows that there is potential of
eas. Moreover, the present study also needs
hydropower ranging from 500 kW to 1000
to be verified geologically and some sites
kW in 277 local government jurisdictions
may be rejected due to geological require-
with a total of 456 sites (maximum three
ments.
sites per Municipality considered). Total
power potential is found to be 383.56 MW The study
2.1.1 Financial Analysis of
and Province-wise summary is presented shows that
Hydropower at different Costs
in Table 2. The hydrological analysis shows
Financial analysis is performed for 1 MW there is a
that the discharge is relatively higher in the
hydropower plant to get a better under- potential of
eastern region than western region.
standing of financial indicators and the Vi- hydropower
ability Gap Funding (VGF) by the federal ranging from
The present study is based on the available
government required for a range of capital 500 kW to 1000
data, information and analysis tools for
costs with the same revenue of NPR 6/kWh kW in 277 local
finding the discharge. Topographical maps
(NEA PPA Rate with 8 simple escalations government
and digital maps are used for finding the
of 3% each). The range of costs is selected
measurement. Therefore, flow verification jurisdictions
to represent the minimum and maximum
of the identified sites has been proposed with a total of
cost of the hydropower projects selected
which needs to be carried out during de- 456 sites.
through this study. The results are present-
tailed feasibility stage before the imple-
ed in Table 3.
mentation of the projects. The analysis for
Table 2: Province wise Summary of Identified Hydropower Sites

No. of No. of Sites Power
S.N. Province
Local Bodies Identified (MW)
1 Province 1 56 84 66.11
2 Province 2 - - -
3 Province 3 53 81 64.44
4 Province 4 29 54 45.14
5 Province 5 23 38 26.99
6 Province 6 60 102 94.75
7 Province 7 56 97 86.12
Total 277 456 383.56
9
As can be seen in Table 3, the case of 1 MW this region and lowest LCOE is for Region
hydropower plant with 65% PLF, the range E (Remote West Hills) followed by Region F
of capital cost per kW has significant effects (Very Remote West Hills).
on the financial attractiveness of the proj-
ect. For capital costs from NPR 162,528 to The high CUF of >20% of Regions E and F
235,000 per kW (Costs I, II & III), the ROE is compensates for the higher capital costs of
above 15% and no VGF is required. For proj- these regions (due to higher transport costs)
ects with capital costs from NPR 235,000 to to result in most cost effective solutions.
300,000 per kW (Cost IV), the VGF required Nonetheless, the Viability Gap Funding
is less than NPR 80,000/kW. Beyond cap- (VGF) required for each Region is high, at
ital costs of NPR 317,000/kW (Cost V, VI, around NPR 100,000/kWac. Without VGF,
VII), the VGF required increases beyond the NEA PPA Rate with eight no. of 3% es-
100,000/kW. calations required for 15% ROE would be
around NPR 14.85/kWh. Further, if only
200 kWh of battery storage is considered
2.2 Solar for Region A, the capital costs decreases to
around NPR 140,000/kWac, which will re-
2.2.1 Solar PV with Battery sult in lower VGF of NPR 83,000/kWac.
For 1 MWac Solar Plant with 500 kWh bat-
tery storage, the LCOE is quite high at NPR Sensitivity analysis shows that if the capital
11.96, 12.16, 12.56, 13.25, and 14.02 per kWh costs of Solar PV with 500 kWh battery stor-
for Region E (Remote West Hills), F (Very age decrease to NPR 120,000/ kWac within
Remote West Hills), D (West Hills), C (West five years, the LCOE for Region A (East Te-
Terai), A (East Terai) and B (East Hills) re- rai) will decrease from NPR 14.02 to 10.25
spectively. Highest LCOE is for Region B per kWh with ROE of 1.60%, which will
(East Hills) due to lowest CUF of 17.00% for require less Viability Gap Funding (VGF)
Table 3: Financial Analysis of Hydropower (1000 kW) at different Costs

Cost I Cost II Cost III Cost IV Cost V Cost VI Cost VII
Capital
COST# Capital Cost* Capital Cost Capital Cost Capital Cost Capital Cost Capital Cost
Cost [NPR/
[NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW]
kW]
= 162,528 = 200,000 = 235,000 = 300,000 = 400,000 = 500,000
OUTPUT = 579,475
LCOE [NPR/kWh] 3.95 4.86 5.71 7.29 9.72 12.15 14.09
LBOE [NPR/kWh] 7 7 7 7 7 7 7
ROE [%] 30.85% 20.93% 15.07% 8.33% 2.30% -1.65% -4.11%
NPV [NPR-Million] 136.78 93.29 52.66 -22.77 -138.84 -254.91 -347.15
Cost Benefit Ratio 3.81 2.55 1.75 0.75 -0.16 -0.70 -1.00
Pay Back Period [Years] 3.75 6.15 9.56 14.70 21.02 >25 >25
VGF required** per kW [NPR/ kW] None None 0 79,000 201,000 323,000 420,000
First Year PPA Rate*** required
4.16 5.12 6.00 7.67 10.22 12.77 14.81
[NPR/ kWh]
* O&M Costs changes as well because Yearly O&M Costs is calculated as 3% of Capital Cost
** To achieve at least 15% ROE (criteria for financial viability)
*** With 8 simple escalations of 3% each to achieve 15% ROE in case of No VGF provided
# The Cost I to Cost VII models are based on increased costs in constructing hydropower plant due to site characteristics and distance from road head.
The Discount rate used is 10%.
Table 4: Sensitivity Analysis of Scenario A (1 MWac Solar PV With 500 kWh Battery Backup)
CASE Base Case Case I Case II Case III Case IV Case V
Capital Cost* Capital Cost Capital Cost Capital Cost Capital Cost Capital Cost [NPR/
OUTPUT [NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW] kW]
= 164,661 = 140,000 = 120,000 = 100,000 = 80,000 = 60,000
LCOE [NPR/kWh] 14.02 11.93 10.25 8.56 6.87 5.18
LBOE [NPR/kWh] 6.98 6.98 6.98 6.98 6.98 6.98
ROE [%] -3.22% -0.84% 1.60% 4.86% 9.67% 18.25%
NPV [NPR-Million] -89.38 -63.67 -42.81 -21.95 -1.09 19.75
Cost Benefit Ratio -0.81 -0.52 -0.19 0.27 0.95 2.10
Pay Back Period [Years] >25 years >25 years 22.07 17.81 13.96 6.88
VGF required** per kW [NPR/ kW] 110,000 83,000 61,000 38,000 16,000 None
First Year PPA Rate*** required [NPR/ kWh] 14.85 12.63 10.86 9.04 7.27 5.47
* O&M Costs decrease as well because Yearly O&M Costs is calculated as 1.5% of Capital Cost
** To achieve 15% ROE at the given PPA Rate
*** With 8 simple escalations of 3% each to achieve 15% ROE in case of No VGF provided
of NPR 61,000 per kW. If the capital costs It can be observed from the Sensitivity Anal-
further decrease to the range of NPR 60,000 yses that if the capital costs of Solar PV with-
per kWac within 5 to 10 years, the plant will out any battery decreases to NPR 100,000/
require no VGF as the LCOE will decrease kWac within a few years, the LCOE for Re-
to about NPR 5.18/ kWh and the LBOE of gion A will decrease from NPR 10.15 to 8.44
NPR 6.98/kWh (i.e. NEA PPA Rate of NPR per kWh with ROE of 5.23%, which will re-
6/kWh with 8 no. of 3% escalations) will be quire less Viability Gap Funding (VGF) of
enough to generate ROE of 18%. However, NPR 36,000 per kW. If the capital costs of
such drastic decrease in costs for Solar PV Solar PV without battery storage decrease to
with battery storage is not possible imme- the range of NPR 60,000 per kWac within 5
diately. Over time, advancements in bi-di- years, the plant will require no VGF as the
rectional inverter and battery technology LCOE will decrease to about NPR 5.06/kWh
could result in lower capital costs. and the LBOE of NPR 6.98/kWh (i.e. NEA
PPA Rate of NPR 6/kWh with 8 no. of 3%
2.2.2 Solar PV without Battery escalations) will be enough to generate ROE
For the Base Case of alternative scenario of 18%. Such a drastic decrease in costs for
in which 1 MWac Solar Plant without any Solar PV seems unlikely in the immediate
battery storage is considered, the LCOE of run. Apart from the decrease in costs in the
Region A (East Terai) decreases substantial- international market, the capital cost can be
ly from NPR 14.02 to NPR 10.15 per kWh. decreased through substantial policy inter-
The Viability Gap Funding (VGF) of NPR ventions such as additional exemptions on
60,000/kWac is still necessary for ensur- tax, customs duty and excise duty.
ing 15% ROE. Without VGF, the NEA PPA
Rate with 8 no. of 3% escalations required Within the scope of this study, it would be
for 15% ROE would be around NPR 10.79/ unfair to compare Solar PV without any
kWh. battery storage to hydropower and biomass
technologies, as the Solar PV would not be
11
Table 5: Sensitivity Analysis of Scenario B (1 MWac Solar PV Without

Battery Backup)
Base Case Case I Case II Case III
CASE
Capital Cost* Capital Cost Capital Cost Capital Cost
[NPR/ kW] [NPR/ kW] [NPR/ kW] [NPR/ kW]
OUTPUT = 120,211 = 100,000 = 80,000 = 60,000
LCOE [NPR/kWh] 10.15 8.44 6.75 5.06
LBOE [NPR/kWh] 6.98 6.98 6.98 6.98
ROE [%] 1.90% 5.23% 10.10% 18.70%
NPV [NPR-Million] -41.59 -20.52 0.335 21.19
Cost Benefit Ratio -0.15 0.32 1.01 2.18
Pay Back Period [Years] 21.53 17.26 13.44 6.88
VGF required** per kW [NPR/ kW] 60,000 36,000 15,000 None
First Year PPA Rate*** required [NPR/ kWh] 10.79 8.96 7.18 5.39
* O&M Costs decrease as well because Yearly O&M Costs is calculated as 1.5% of Capital Cost
** To achieve 15% ROE at the given PPA Rate
*** With 8 simple escalations of 3% each to achieve 15% ROE in case of No VGF provide
able to supply any electricity during nights later is developed in the first phase, and
in the event the central grid is down, thus additional Inverter and battery necessary
compromising the reliability of supply. added in the subsequent phases. This will
Nevertheless, Solar PV with battery can be help break the total investments and VGF
developed in two phases, such that Solar into multiple phases while providing the
PV Plant without battery but with adequate flexibility of achieving increasing reliability
space for adding batteries and inverters from the project over time.
Figure 3:Total Proposed Substations (530)
132/33 : 1.51% (8 out of 530)
33/11 : 60.94% (323 out of 530)
11 sw/s : 37.54% (199 out of 530)

2.3 Biomass & Wind sion lines are designed for 2028 considering
Biomass to electricity projects based on Mu- load increases by 15% annually on both elec-
nicipal Waste is considered for 50 munici- trified and un-electrified areas which would
palities with high population density such be in Tier 3 level of electricity access accord-
that enough waste material can be ensured ing to the Multi-Tier Framework.
for smooth operation of the plants. But, due
to the scarcity of well- established waste 2.4.1 Number and Type of
collection system and lack of pilot projects Substations and T&D Lines
to demonstrate technical feasibility, the bio- As shown in Figure 3 , 530 Substations are
mass to electricity projects may be an im- proposed of which the highest share is of
practical choice for development. 33/11 kV Substations, followed by 11 kV
switching stations or Substations for primary
There is a lack of wind resource data; only distribution. The share of 132/33 kV substa-
three wind power projects are studied with tions is the lowest as they are considered only
field based wind resource data available when 33/11 kV Substations are insufficient.
in the literature. The main challenge in
developing wind power is found to be the A total of 7828 km of T&D lines are pro-
transport of large turbines over challenging posed of which the highest share is of 33
topography to reach areas with high wind kV lines, followed by 11 kV lines and 132
power potential. kV lines (Figure 5). 33 kV lines have the
highest share because they are found to be
most suitable to service the load centers.
2.4 Grid Extension 132 kV lines are the lowest as they are only
The network is planned to be constructed by considered when even double circuit 33 kV
2023 (taking annual domestic load consump- lines are insufficient. The proposed and ex-
tion to be 300 kWh in electrified areas and 180 isting substations and lines are shown in
kWh in un-electrified areas) and the transmis- Annex 3.
Figure 4: Number of Proposed Substations per Province
120
100
80
Number
60
40
20
0
Province 1 Province 2 Province 3 Province 4 Province 5 Province 6 Province 7
132/33kv 33/11kv 11kv Switching Substations
13
Figure 5: Total Proposed Transmission & Distribution Lines
132 KV 2.51%
11 KV 26.36%
33 KV 71.13%
2.4.2 Cost of Substation and T&D 2.5 Financial Analysis of

Lines Generation Projects
Figure 6 shows that the total cost of grid Financial analysis considered unique local
extension is NPR 53.8 billion, of which Sub- characteristics such as hydrology, road ac-
stations account for almost 63% of the total cess, capacity utilization factor, and trans-
cost due to high cost of transformers and port costs; therefore, each Municipality has
associated equipment used in a Substation. its own unique result. Financial Discount
Rate is assumed to be 10%, which is calcu-
lated by averaging the weighted average
lending rate (commercial banks) over a pe-
riod of 4 years (16 data points) as published
Figure 6:Total Cost of Grid Extension
by Nepal Rastra Bank (Quarterly Econom-
ic Bulletin July 2017). The generation sites
NPR 53.8 Billion chosen through Financial Analysis are
shown in Figure 8.
2.5.1 Levelized Cost and Benefit of

Substation 63% Electricity
As shown in Figure 9, biomass had a level-
Transmission line 37% ized cost of electricity (LCOE) of approx. NPR
9.56/ kWh and levelized benefit of electricity
(LBOE) of approx. NPR 16.32/ kWh and ROE
of 29%. High plant load factor, income from
sale of electricity to NEA and additional in-
come from sale of fertilizer byproduct results
in an attractive ROE for biomass.
Figure 7: Province wise Division of Cost of Grid Extension
14000
12000
10000
NPR Million
8000
6000
4000
2000
0
Substation Transmission line
But, due to absence of well-established Solar PV project with 500 kWh battery, the
waste collection system, and pilot projects selected projects had LCOE in the range of
for testing technical feasibility; the second NPR 11.96/kWh to NPR 14.40/kWh, and
ranked DG project may have to be recon- LBOE of NPR 6.98/kWh. For Wind pow-
sidered. er, the LCOE was only calculated for three
sites with on-site wind speed data (average
For hydropower, the selected projects had annual wind speed at 10m height = 3.35m
LCOE in the range of NPR 4/kWh to NPR to 6.5m). It is found that the LCOE was NPR
14/kWh, and LBOE of NPR 7/kWh. For 7.95/kWh and LBOE was NPR 6.98/kWh.
Figure 8: Number of Selected Distributed Generation Projects per Province
160
140
120
100
180
60
40
20
Hydro Solar PV Biomass Wind
15
The LBOE was around NPR 7/kWh for so- Funding (VGF) was considered for all of
lar PV, wind and hydropower as it is cal- these projects. For hydropower, the ROE
culated based on the NPR 6/kWh average ranged from -4 to 30 %. Only those hydro-
NEA tariff and 3% escalation for 8 years. power projects with ROE less than 15% are
For solar, the ROE ranged from -3.6 to -0.8 considered for VGF. The high capital costs
% and for wind power it is around 6%. As and low capacity utilization factor of Solar
none of the solar or wind project could de- PV in comparison to other technologies re-
liver ROE of 15% or greater, Viability Gap sulted in the lowest range of ROE.
Figure 9: Levelized Cost and Benefits of Selected Distributed

Generation Projects
15
NPR/KWH
10
0
Hydro Solar Biomass Wind
LBOE Range LBOE
Figure-10: Installed Capacity of Selected Projects
140
120
100
MW OR MWp
80
60
40
20
-
Figure 11: Investment Required for Selected Projects, per Province
30,000
25,000
NPR Million
20,000
15,000
10,000
5,000
Figure 12:Total Capital Investment Required for Generation Projects
4.13% 0.03%
NPR 148 Billion
Hydro
42.22%
Solar PV
53.62%
Biomass
Wind
17
2.5.2 Number of Projects and required for hydropower is NPR 22.9 bil-
Installed Capacity lion, for Solar NPR 51.9 billion, and for wind
As shown in Figure 8 and Figure 10, 221 hy- NPR12 Million; thus, the total VGF neces-
dropower sites with total installed capacity sary for whole country is NPR 74.88 billion.
of 192.6 MW, 481 solar PV sites with total
installed capacity of 481 MWp, 50 Biomass For the country, the average investment re-
sites with total installed capacity of 20.4 quired for Hydropower is NPR 324,772/
MW and 1 wind power site with installed kW, for Solar with 500 kWh battery is
capacity of 0.2 MW are selected in the NPR 165,132/kW, and for biomass is NPR
whole country. 300,000/kW, and for wind was NPR 198,250/
kW as shown in Figure 15. The average VGF
2.5.3 Investment and Viability Gap required for hydropower was NPR 119,110/
Funding (VGF) kW, for solar was NPR 107,965/kW, and for
From Figure 11 and Figure 12, the total coun- wind was NPR 65,000/kW.
try investment required for hydropower is
NPR 62.54 billion, for solar is NPR 79.42 bil- 2.5.4 Alternative Cases –
lion, for biomass, it is NPR 6.12 billion, and Investment and VGF
for wind was NPR 40 million. Thus, the total Table 6 and Table 7 show that changes in to-
investment for generation projects necessary tal investment and VGF required for alter-
for whole country is NPR 148.13 billion. As native scenarios of solar PV with 200 kWh
shown in Figure 16 the total country VGF battery and no battery storage respectively.
Figure 13:Total Viability Gap Funding Requirement for Generation

Projects
0.02%
NPR 75 Billion
Hydro
30.63%
Solar PV
Wind
69.35%
Figure 14: Province wise Division of Viability Gap Funding Required

for Selected DG Projects
16,000
13,970
14,000
7,909
12,000 7,853 3,896
Million NPR
3,291
10,000
3,782
8,000
6,230
6,000
4,000
2,000
0
As can be seen from the tables, the total in- with 200 kWh battery and no battery stor-
vestment for the country decreases signifi- age respectively.
cantly from NPR 148 billion for Base Case of
Solar PV with 500 kWh battery to NPR 138 On average, VGF required per kW for So-
Billion and NPR126 billion for alternative lar PV with 200 kWh storage was approx.
scenarios of Solar PV with 200 kWh battery NPR 85,000 and for solar with no battery
and no battery storage respectively. Simi- storage was approx. NPR 60,000. Nonethe-
larly, the total VGF decreases from NPR 74 less, these scenarios with less or no battery
Billion for Base Case of Solar PV with 500 storage would compromise on the aspect of
kWh battery to NPR 63 Billion and NPR 51 electricity reliability in case the central grid
Billion for alternative scenarios of solar PV is down during evenings or at night.
19
Figure 15: Average VGF Required per kW for Different RETs
140,000
119,110
120,000
107,965
100,000
NPR/KW
80,000
65,000
60,000
40,000
20,000
Hydro Solar PVB Biomass Wind power
Figure 16: Average Investment Required per kW for Different RETs
350,000
324,772
300,000
300,000
250,000
NPR/KW
198,250
200,000
165,132
150,000
100,000
50,000
-
Hydro Solar PVB Biomass Wind power
Table 6: Summary of Best DG Projects Selected for Alternative Scenario –

Solar PV with 200 kWh battery storage
PROVINCE: 1 2 3 4 5 6 7 Country Total
Investment for Hydro (M-NPR) 13,746 - 8,891 5,563 4,733 15,824 13,784 62,541
Investment for Solar PV (M-NPR) 10,334 18,452 10,199 8,458 12,371 4,864 5,405 70,084
Investment for Biomass (M-NPR) 1,063 893 2,607 450 695 97 317 6,122
Investment for Wind (M-NPR) 40 - - - - - - 40
Province Total (M-NPR) 25,183 19,345 21,697 14,471 17,799 20,785 19,507 138,787


VGF for Hydro (M-NPR) 4,599 - 3,465 987 2,194 7,504 4,188 22,937
VGF for Solar PV (M-NPR) 6,112 10,795 6,068 4,814 6,874 2,543 2,922 40,129
VGF for Biomass (M-NPR) - - - - - - - -
VGF for Wind (M-NPR) 13 - - - - - - 13
Table 7: Summary of Best DG Projects Selected for Alternative Scenario –

Solar PV without Battery
Investment for Hydro (M-NPR) 13,746 - 8,891 5,563 4,733 15,824 13,784 62,541
Investment for Solar PV (M-NPR) 8,518 15,209 8,407 6,972 10,196 4,009 4,455 57,766
Investment for Biomass (M-NPR) 1,063 893 2,607 450 695 97 317 6,122
Investment for Wind (M-NPR) 40 - - - - - - 40

VGF for Hydro (M-NPR) 4,599 - 3,465 987 2,194 7,504 4,188 22,937
VGF for Solar PV (M-NPR) 4,314 7,620 4,283 3,398 4,852 1,795 2,063 28,326
VGF for Biomass (M-NPR) - - - - - - - -
VGF for Wind (M-NPR) 13 - - - - - - 13
21
Chapter 3
Conclusion and
Recommendations
3.1 Economic Analysis 3.1.1 Province 1
Economic analysis is undertaken for two In Province 1, 54 Hydropower sites with
representative models, one of dispersed total installed capacity of 43 MW (the high-
generation area (Province 1) and another est number of hydropower sites selected
of high load density area (Province 2) and in a province), 71 solar PV sites with total Economic
comparison is made between the economic installed capacity of 71 MWp, 11 biomass analysis is
scenario of each province for grid exten- sites with total installed capacity of 3.5 MW undertaken
sion with and without DG. and 1 Wind power site with total installed for two
capacity of 0.2 MW are selected through representative
Scenario A considers grid extension with financial analysis. As shown in Table 8 for
models, one
DG, which includes capital and O&M the Base Case (SDR = 2%) of Province 1,
of dispersed
costs of selected DG plants, T&D network the Net Present Value (NPV) is higher for
generation area
expansion and necessary central hydro Scenario A (grid extension with DG at NPR
736 billion) than Scenario B (grid extension
(Province 1)
plants to completely supply the load. For
without DG yields lower NPV of NPR 671 and another
this scenario, Transmission & Distribu-
billion). As economic evaluation considers of high load
tion Network Loss is considered to be 9%.
Scenario B considers grid extension with- the NPV while ranking projects, i.e. the net density area
out DG, which includes Capital and O&M value added to the economy, grid extension (Province 2)
costs of T&D Network expansion and Cen- with DG is recommended for Province 1. and comparison
tral Hydro plants that can supply same lev- is made
el of energy as the previous scenario. For Sensitivity analysis at higher SDR of 5% between the
this scenario, Transmission & Distribution (Case I) shows that NPV decreases to NPR economic
Network Loss is considered as 18%. 642 billion for Scenario A and to NPR 456 scenario of each
billion for Scenario B; nonetheless, the net
province for
Social/Economic Discount Rate (SDR) is economic value added is still higher for
grid extension
assumed to be 2%, which is calculated by Scenario A. Similarly, Sensitivity Analysis
with and
averaging the interest on Treasury-bills for SDR of 8% (Case II) shows that NPV
decreases to NPR 352 billion for Scenario A
without DG.
(364 days) over a period of 4 years (15 data
points) as published by Nepal Rastra Bank and to NPR 321 billion for Scenario B. The
(Quarterly Economic Bulletin, July 2017) net economic value added is still higher
and adding 0.7% for market distortion. for Scenario A. Also, preliminary analysis
Economic analysis is performed for a proj- shows that the results of economic analysis
ect lifetime of 25 years. for Provinces 3, 4, 5, 6 & 7 would be similar
to that of Province 1.
23
3.1.2 Province 2 The economic model captures the following

In Province 2, no hydropower sites are elements: (i) reduction of capital and oper-
identified. 127 solar PV sites with total in- ational expenditure of Transmission and
stalled capacity of 127 MWp, and 9 biomass Distribution networks (grid extension) due
sites with total installed capacity of 3 MW to active and reactive power support by DG
are selected through financial analysis. The plants (ii) reduction of network losses due
highest number and installed capacity of to DG plants servicing local loads, and (iii)
Solar PV sites in the country were select- economic benefits from fuel replacement
ed in Province 2 due to absence of any hy- and willingness to pay according to the
dropower potential. Also, the load was the electrification status of the Municipality.
highest for Province 2 due to high popula-
tion density. It can be observed from Table However, due to limitation of time and
8 that for Base Case (SDR = 2%) of Province scarcity of published local research, addi-
2, the NPV is higher for Scenario A (NPR tional economic benefits of grid extension
940 billion) than that of Scenario B (NPR with DG such as (i) fewer social and envi-
861 billion). As Economic evaluation con- ronmental consequences over large central
siders the NPV while ranking projects, i.e., plants, (ii) exploitation of natural resources
the net value added to the economy, grid at the local level (iii) empowerment of lo-
extension with DG is recommended for cal governments (iv) energy mix (v) ripple
Province 2 as well. economic effect through forward and back-
ward economic linkages that can kick-start
For higher SDR of 5% (Case I) NPV decreas- the local economy could not be captured in
es to NPR 643 billion for Scenario A and to the model. If they were to be considered,
NPR 589 billion for Scenario B and for fur- the NPV of Scenario A: Grid Extension with
ther higher SDR of 8% (Case II) the NPV DG would increase for all provinces.
decreases to NPR 455 billion for Scenario A
and to NPR 418 billion for Scenario B. This Further economic impact of GHG emissions
shows that the net economic value added is over the project lifetime was not considered.
always higher for Scenario A. Over the project lifetime, GHG emissions of
Table 8: Result of Economic Analysis

Province 1 Province 2
Scenario Scenario A: Grid Scenario B: Grid Scenario A: Grid Scenario B: Grid

Extension with DG Extension without DG Extension with DG Extension without DG
Economic Indicators Network Loss = 9% Network Loss = 18% Network Loss = 9% Network Loss = 18%
Base Case: SDR = 2%
NPV (NPR- Billion) 736 671 940 861
Case I: SDR = 5%
NPV (NPR- Billion) 642 456 643 589
Case II: SDR = 8%
NPV (NPR- Billion) 352 321 455 418
*WITH DG includes Capital and O&M expenses of selected DG plants and T&D Network expansion
**WITHOUT DG includes Capital and O&M expenses of T&D Network expansion and Central Hydro Plant that can generate same energy as the DG plants
hydropower would be slightly higher (die- derlying concepts include improving local Final report handover by
sel usage over longer construction period capabilities in institutional management and Hitendra Dev Shakya,
and low-level emissions from submerged distributing VGF for equitable development. Managing Director
of NEA Engineering
plants) than Solar PV, but both of these re- The implementation modality needs to ad-
Company to Dr. Arbind
newable technologies would have minimal dress all these four underlying concepts. Kumar Mishra, Member,
GHG emissions when compared to fossil fuel National Planning
plants such as coal or gas fired plants. Benefits 3.2.1 The Two Technical Aspects Commission.
of GHG mitigation are also not considered in The fundamental concept of bi-directional
the model; the NPV would increase for both planning and implementation for Sustain-
scenarios if they were to be considered. able Distributed Generation and Grid Ac-
cess to All (SUDIGGAA) is that it has to
work on both transmission and distribution
3.2 Implementation Modality sides of the power system. On distribution,
There are a few underlying concepts in the at the local level, locating a substation that
proposed solution, namely, investment in best serves the local distribution network
distributed generation projects in all mu- plan and constructing generation projects
nicipalities as a means of increasing local to feed the network; and on transmission,
economic growth on the one hand, and on the part of the central grid, construct-
expansion of the national grid through ing radial network expansion targeted and
sub-transmission and distribution lines to all homing towards the substations at the local
of the municipalities on the other. The un- municipalities.
25
Table 9: Phase-wise Implementation of Grid Extension

No. of No. of 11 kV Estimated
Duration No. of 33/11 Length of 132 Length of 33 Length of 11 kV
Phase 132/33 kV switching Cost (NPR
(yrs.) Substations kV line (km) kV line (km) line (km)
Substations stations -Million)
1 2.5 5 79 20 100 1540 270 14,156
2 1(+1.5 ) 3 145 79 96.2 1895 843 22,320
3 1(+2.5 ) 0 99 100 0 2133.4 950.9 17,326
Total 4.5 years 8 323 199 196.2 km 5568.4 km 2063.9 km 53802
3.2.1.1 Distributed Generation projects 3.2.1.2 Expansion of Grid – Sub-trans-

There are 221 hydropower projects, 481 so- mission and distribution line and sub-
lar PV projects and 50 biomass to electricity station projects
projects, and one wind power project rec- There are 196 km of 132 kV sub-transmis-
ommended for construction. The genera- sion lines, eight 132/33 kV substations,
tion projects development cycle necessarily 5568 km of 33 kV distribution lines, 323
contains the following phases: 33/11 kV substations and 2063 km of 11 kV
lines with 199 11 kV switching stations for
• Feasibility Study and Detailed Engi- interconnection of generation projects and
neering Study distribution feeders. These grid expansion
• Financing of the project construction projects require step-wise implementation.
and concluding operational issues such
as power sale Step-wise Expansion
• Formation of implementing agencies Step-wise implementation is necessitated
for local ownership of the generation by the sequential nature of the expansion
projects, government agency for assist- works as well as the need of temporally dis-
ing the local governments to set-up the tributing the huge costs of expansion. The
local vehicles, oversee the engineering network expansion will start from the ex-
of the projects and facilitate the equity, isting and under-construction substations
debt and VGF financing of Nepal Electricity Authority. The out-
• Contract management, construction ward expansion in first stage will consist of
management, and generation upon sub-transmission lines and 33 kV lines with
commissioning substations at the end of the radial lines.
• Operationalization of the plant opera- The phasing here is proposed in three stag-
tion agency and expansion of low volt- es. The costs of different stages of phased
age distribution network to consumers expansion is given in Table 9 with details of
the substation and lines.
Table 10: Project Implementation Activities and Timeline Project Timeline

Activity Description of Work Remarks
The time-duration for the phased expan-
1 Project Verification Within 12 Months sion is given in Table 10. The timetable
2 Feasibility and Detail Study Within 18 Months covers the different activities required in
3 Financial Arrangement Within 30 Months implementing the expansion work, details
4 Project Construction Within 54 Months of which are given below.
5 Grid Extension Within 54 Months • Feasibility survey of the lines and sub-
6 Project in Operation Within 60 Months stations, and detail design including
tender document preparation;
• Financing of the expansion project – na- not include detail GIS based distribution net-
tional budget and investment planning work planning. It is therefore necessary that
and allocation for the expansion works; the next phase of implementation should
• Facilitation with the implementing include GIS mapping of medium voltage
agency Nepal Electricity Authority or transformers and planning of low voltage
its Distribution agencies in the respec- network that is optimized with updated GIS
tive provinces in cooperation with the data of population and load demand.
local municipality for eventual modali-
ty of operation of distribution network; Monitoring of Operation and Maintenance
• Contract management and construction and support system
supervision by NEA and the operating The operation and maintenance of 11 kV
agency at the level of local municipality; switching substation and feeder lines as
• Operationalization of the entity re- well as 33/11 kV substation and distribu-
sponsible for substation and distribution lines can be done by local level agencies
tion and expansion of Low voltage dis- as the technology and know-how required
tribution network to consumers is easily available and the man-power can
be trained. The cost of operation and mon-
The sequence of programs as listed in the itoring increases with the location of the
table will be rolled out and put in place for agency being farther from the area. The
each phase of the expansion project. The to- logistics and additional costs incurred for
tal time-plan for the above five activities for man-power migration makes such opera-
beginning of the first phase to the end of the tion not viable for these agencies. Thus, a
third phase will be five years. local entity is preferred.
Medium voltage transformer stations and However, for large events, such as damage
low voltage distribution network expansion to transformer or circuit breaker or substa-
The SDG7 and SE4ALL targets include the tion control and protection systems, the lo-
last mile connection to consumer house- cal entity will require external support. This
holds. This study does not cover the last mile will be more prominent in remote areas.
planning, as the scope is vast and such plan- Hence, a regional or provincial support cell
ning and investment decisions are best left to or entity need to be established to provide
the local governments. Nevertheless, it has such operational support.
to be noted here that in order to accomplish
the Energy Access for All, planning for the 3.2.2 The Governance Aspects
last mile connection, and its financing must The SUDIGGAA is feasible only with a
begin immediately after the launch of the meaningful participation of local govern-
first phase of the grid expansion, such that ments. The Constitution of Nepal 2072
there is a seamless connection to the house- mandates three levels of governance with
holds and supply of electricity at the comple- definite rights and duties of the local gov-
tion of the five year project. ernments, which are empowered to legislate
on subjects as listed in the Schedules of the
It is understood that Nepal Electricity Au- Constitution. The Schedule 6 lists electricity
thority is undertaking a Distribution Mas- distribution as the jurisdiction of provincial
terplan that includes the medium voltage government while the Schedule 8 lists re-
transformer stations and aggregated nodes newable generation projects falling under
of low voltage lines. This Masterplan does the jurisdiction of local governments. In rec-
27
ognition of the constitutional mandates, the an entity based in province capital city
Implementation Plan will need to enlist the has proven to be financially unviable
support and participation of the respective and burdensome for the Central Utili-
governments in formulating the projects as ty. In such cases, the Central Utility is
well as forming the entities responsible for inclined to lease the operation of the
implementing and operating them. network to community electrification
users groups (CEUG). There are mixed
3.2.2.1 Agency for the Distributed Gener- experiences with CEUG networks over
ation Projects time. Reduction in non-technical losses
The Distributed generation projects are pro- have been recorded, but reliability and
posed as joint investment projects, with fed- quality of service has not improved.
eral support as grant money for funding the • Municipality managed utility owner-
viability gap while the local municipalities ship – Local ownership may reduce
and cooperatives and project affected peo- operational costs but a municipality
ple providing equity. The capital required owned and operated utility will be a
for constructing a generation project will be microcosm of a government with util-
ranging from NPR 16 Crores (USD 1 million) ity at the center, which has been shown
to NPR 30 Crores (USD 3 million), it is a natu- to be ineffective and consequently ex-
ral proposition that a separate company shall pensive, and hence, disowned by gov-
be formed where the financing requirement ernment at central level previously. It
after Viability Gap Fund is provided with eq- is therefore not recommended to keep
uity injection (20%-30%) from municipality, such generation and distribution assets
cooperatives and project affected people, and directly under the municipality.
the remaining 70% to 80% of the finance re- • Local Utility Company with combined
quirement is secured from low-interest devel- generation and distribution assets –
opment loans from multi-lateral institutions Presently, the Electricity Act requires
or the government or by priority sector lend- that generation, transmission and dis-
ing from national finance institutions. tribution companies should be separate
entities with separate licenses. At the
• Independent Generation Company – local level, such demarcation is not es-
An independent public limited com- sential as long as the transmission net-
pany is best suited to run the genera- work is separated. The local generation
tion project and associated assets. The project with Viability Gap Funding to
generation company may be wholly utilize locally available energy resourc-
owned by the local municipality. It es is expected to lower the cost of local
may also have alternative equity hold- electricity. A joint utility will be also
ing shared with local project-affected able to compensate for the high cost of
community or their cooperatives. This providing distribution services.
contributes towards more consolidated
Sustainability of the generation project From stakeholders’ workshops and discus-
with shared and aligned interests of the sions with experts, it has emerged that the
localized community. best format for ownership of the generation
• Central Utility holding - In the cases of project and consequent development, and
remote municipalities, the operation operation is a separate public company
of the distribution network and pro- (Special Purpose Vehicle, SPV). The share-
viding service to the consumer from holding of such an SPV is recommended to
be evenly distributed amongst the munic- the costs of distribution and maintenance
ipality to provide the financial strength in of feeders from the grid. The generation
case of shortfalls, and cooperatives of the company will be induced to maintain the
project area and cooperatives of the elec- connecting line to the grid as the surplus
tricity users and community user groups. energy supplied to grid provides revenue.
Single group ownership still cannot be re-
lied upon to function effectively. Since the Since the distribution network needs a sep-
generation project requires grant in terms arate license and there are issues of overlap
of viability gap fund, the ownership of the with the Central Utility or its subsidiary,
SPV needs to have a broad public owner- the initial phase of distribution network
ship and ensure that no private individual from the grid till the local substation needs
or business owns a disproportionate share. to be with the Central Utility that constructs
and completes the grid expansion. This is
3.2.2.2 Agency for the Distribution Network further so if the connecting line supplies
The agency for distribution network could power to more of the municipalities and
be: hence, a SPV ownership will raise the issue
• Central Utility holding – the construc- of wheeling charges. A major
tion of the line and substations are pro- component
posed to be completed in a condensed In remote areas, the cost of maintaining and of the
and intensive program within five operating these interconnecting lines will SUDIGGAA
years. Such programs can be success- be uneconomically high for central and pro-
project is the
ful only if implemented by the Central vincial utility. Thus, a phased hand-over of
Viability Gap
Utility having sufficient technical and the interconnecting lines to the SPV is fore-
Funding (VGF)
organizational capability which is NEA seen with a framework of wheeling charge
in the present context. However, even- or management charge in place before that. to be provided
tual ownership, transfer or leasing to by the federal
local utility is possible. 3.2.2.3 Financing of the SUDIGGAA government.
• For town municipalities, the central and A major component of the SUDIGGAA Substantial
provincial utilities are inclined to main- project is the Viability Gap Funding (VGF) VGF is required
tain their ownership and they may also to be provided by the federal government. for generation
be well equipped to do so. There could Substantial VGF is required for generation projects while
still be other alternatives because the projects while the wires have to be fully the wires
electricity supply business is undergo- funded by the federal government. have to be
ing rapid change. Even in South Asia, fully funded
there are examples where wire and ser- It is assumed that providing a level field for
by the federal
vices are separated. In such a case, the economic growth to all of the municipali-
government.
wires can be owned by any of the mod- ties in principle that will be accepted and be
els of a private or public company or a one of the priorities of future governments.
municipality-owned company. Electricity is an essential input for indus-
trial growth, and employment generation.
From stakeholders’ workshops and discus- Providing VGF for generation projects that
sions with experts, it has emerged that the enables grid expansion to remote areas is
best format for Ownership of the Distribu- a necessary step forward in this direction.
tion Network is the SPV that owns the gen- However, it is assumed that equitable VGF
eration company itself, as the financial ben- distribution will be called for by all munic-
efit of the generation project will balance ipalities. Such VGF, if provided, may not
29
be applicable for similar hydro-projects but This projection is assumed to be feasible for
may be more appropriate for alternatives all of the municipalities. A comparison with
that provide better electricity at lower pric- present Independent Power Producer (IPP)
es. This is the principle that allows planning projects gives projects that have median con-
of solar projects in areas that are already struction costs of USD 2000/ kW for Q40
electrified, and bio-mass projects from sol- (having 5 million units a year) design dis-
id waste in towns where even solar projects charges. Extrapolating the costs for Q65 (6
are not feasible due to high land costs, cus- million units a year) and with a better wet-en-
toms duties, etc. ergy to dry-energy ratio, the financially viable
cost of such projects lie around 2500$/kW.
3.2.2.4 VGF for Generation- Projects and
Financial Viability However, for remote areas which are far
The hydro-projects have been selected with from the road-head, the remoteness factor
design discharge of 65% probability of ex- has to be accounted. A remoteness fac-
ceedance. Projects with such design have tor of 1.2 is considered for higher cost of
plant factor of approximately 65% (at the transportation of construction materials
grid connection point after accounting for and in some heavy single transport cases,
all losses). The economic value of the ener- heli-lifting. Thus, projects of USD 4500/kW
gy in an already electrified area is the ‘Will- are also selected for construction in such
ingness to Pay’ of the consumers. A survey remote areas. Nonetheless, it is proposed
done by the Millennium Challenge Corpo- that a benchmark VGF of USD 1000/kW or
ration, which is yet to conclude the results, NPR 10 Crore per MW be considered for ac-
is known to have received a preliminary es- complishing SUDIGGAA. For projects that
timate of 27% more than the current price. have high transport costs, alternative solar
This same price may be used for determin- or biomass projects could be considered.
ing the economic viability of a project and a
criterion for justifying the VGF. The finan- From the discussions with experts it has
cial viability of the project after VGF is nec- emerged that the benchmark subsidy or viabil-
essary for sustainable operation of the proj- ity gap funding should be categorized to few
ect. Hence, a favorable debt/equity ratio is varying VGF slabs taking into account the fact
proposed for independent stock company that some of the projects may not require much
such that the local municipality is required VGF while some of the remote areas would
to put up minimum equity. need a higher amount of VGF. Since the trans-
action analysis for a detailed work-out of VGF
For a 1000 kW hydro-project, the median is complex and costs may outweigh the ben-
cost of construction of a hydro-project is ap- efits of exact VGF determination, it is recom-
proximately USD 3500/kW and generating mended that based on remoteness, three slabs
approximately 6 million units in a year. A of VGF be proposed, with VGF benchmark of
benchmark VGF of USD 1000/kW will re- less than USD 1000/kW for projects having
quire about USD 2.5 million capital over four road access, and USD 1000/ kW for projects
to five years from the local government. A that are moderately far from the road-head
debt/equity ratio of 80/20 will ease the capi- and USD 2000/kW for projects that involve at
tal requirement from the local municipality to least one-day of travel from the nearest road.
USD 500,000 (approximately NPR 5 Crore) in
four to five years, which is an outlay of USD The Levelized Cost of Energy (LCOE) from
100,000 (approx. NPR 1 Crore) per year. solar projects with 500 kWh battery backup
is quite high (NPR 12 to 14per kWh) at pres- lected 200kW Wind power plant with high
ent costs of battery and additional Inverter. wind resources available locally, the VGF
For financial viability, VGF in the range of required is about USD 600/ kW.
USD 1000 to 1100 is required out of the to-
tal capital cost of USD 1600-1700/ kW. Even 3.2.2.5 VGF vs. Benchmark VGF
for solar project without any battery backup, Identifying the best possible generation proj-
LCOE of 1 MWac Solar PV project is too high ect and then determining the VGF tends to
(NPR 9 to 10/ kWh); therefore, either NEA be convoluted. A mechanism to incentivize
PPA Rate of around NPR 10/ kWh (with local governments to find the best project is
8 simple escalations of 3% each) or federal to set a benchmark VGF, and allow the mu-
VGF of around USD 600/kW is necessary. nicipalities to find the best project within the
limits of the benchmark VGF. VGF helps
Large part of the high cost is because of the find the equitable proportion for remote and
price of land, and low capacity utilization less-endowed municipalities. The lack of
factor (CUF) of solar. But, it would be un- sufficient experience in the determination of
fair to compare solar PV without any bat- viability gap, and the need to undertake this
tery storage to hydropower and biomass exercise in all 753 units in a short period calls The outlay
technologies, as the solar PV would not be for a simplified VGF program. A benchmark of funds is
able to supply any electricity during nights VGF policy is therefore recommended.. recommended
in the event the central grid is down, thus to be
compromising on the aspect of reliability of 3.2.2.6 Funding of the Distribution Net-
distributed over
supply. A middle ground could be to devel- work Expansion
three phases,
op solar PV with battery in two phases, such The distribution network expansion shall be
to sync with
that solar PV without Battery but with ade- completely funded by federal budget as the
quate space for adding batteries and invert- initiation investment. The investment will en-
the sequential
ers later is developed in the first phase, and sure a medium voltage substation and access construction
additional Inverter and battery necessary is to grid for all municipalities. This will be a of lines and
added in the subsequent phases. This will program that attempts to prepare a level field substations
help break the total investments and VGF for all remote municipalities and those which to supply the
into multiple phases while providing the have been far from the focus of previous de- power radially
flexibility of achieving increasing level of velopment programs. Hence, federal gov- to outlying
reliability from the project over time. Since ernment needs to find low-interest funds or areas.
a benchmark VGF with three slabs is con- development assistance funds from bilateral
sidered for hydro, same structure of VGF and multilateral agencies to finance the distri-
(i.e. USD 1000/ kW) is proposed for solar bution grid expansion project. The outlay of
PV plant with 500 kWh battery storage. funds is recommended to be distributed over
three phases, to sync with the sequential con-
In the case of biomass, high plant load fac- struction of lines and substations to supply
tor, income from sale of electricity to NEA the power radially to outlying areas.
and additional income from the sale of fer-
tilizer byproduct results in a very attractive The stages of expansion is dispersed over
ROE such that no VGF is required. But due three years, and each phase is assumed to
to absence of well-established waste col- take about two years to complete. Thus, all
lection system, and pilot projects for test- three phase will be complete within five to
ing technical aspects; the benchmark VGF six years while distributing the demand on
of USD 1000/kW will also be appropriate the national budget over five years. A detail
for 50 selected biomass plants. For one se- of the finance required can be seen in Table 9.
31
Chapter 4
Selected Distributed
Generation in each VM/TM
Province No. District Village/Town Municipality Type of DG Selected
1 Bhojpur Aamchowk Hydro
1 Bhojpur Arun Hydro
1 Bhojpur Bhojpur Hydro
1 Bhojpur Hatuwagadhi Hydro
1 Bhojpur Pauwa Dunma Hydro
1 Bhojpur Ramprasad Rai Hydro
1 Bhojpur Salpa Silichho Hydro
1 Bhojpur Shadananda Solar
1 Bhojpur Tyamke Maiyum Hydro
1 Dhankuta Chaubise Hydro
1 Dhankuta Chhathar Jorpati Hydro
1 Dhankuta Dhankuta Solar
1 Dhankuta Khalsa Chhintang Solar
1 Dhankuta Mahalaxmi Hydro
1 Dhankuta Pakhribas Hydro
1 Dhankuta Sangurigadhi Hydro
1 Ilam Chulachuli Solar
1 Ilam Deumai Solar
1 Ilam Fakfokathum Hydro
1 Ilam Illam Hydro
1 Ilam Mai Solar
1 Ilam Mai Jogmai Hydro
1 Ilam Mangsebung Hydro
1 Ilam Rong Hydro
1 Ilam Sandakpur Solar
1 Ilam Suryodaya Hydro
1 Jhapa Arjundhara Solar
1 Jhapa Barhadashi Solar
1 Jhapa Bhadrapur Biomass
1 Jhapa Birtamod Biomass
1 Jhapa Buddhashanti Solar
1 Jhapa Damak Biomass
1 Jhapa Gauradaha Solar
33

1 Jhapa Gauriganj Solar
1 Jhapa Haldibari Solar
1 Jhapa Jhapa Solar
1 Jhapa Kachanakawal Solar
1 Jhapa Kamal Solar
1 Jhapa Kankai Solar
1 Jhapa Mechinagar Biomass
1 Jhapa Shivasatakshi Biomass
1 Khotang Aiselukharka Hydro
1 Khotang Baraha Pokhari Hydro
1 Khotang Diprung Hydro
1 Khotang Halesi Tuwachung Hydro
1 Khotang Jante Dhunga Hydro
1 Khotang Kepilasgadhi Hydro
1 Khotang Khotehang Hydro
1 Khotang Lamidanda Solar
1 Khotang Rupakot Majhuwagadhi Hydro
1 Khotang Sakela Hydro
1 Morang Belbari Biomass
1 Morang Biratnagar Biomass
1 Morang Budhiganga Solar
1 Morang Dhanapalthan Solar
1 Morang Gramthan Solar
1 Morang Jahada Solar
1 Morang Kanepokhari Solar
1 Morang Katahari Solar
1 Morang Kerabari Solar
1 Morang Letang Solar
1 Morang Miklajung Solar
1 Morang Pathari Shanishchare Solar
1 Morang Rangeli Solar
1 Morang Ratuwamai Solar
1 Morang Sundarharaicha Biomass
1 Morang Sunwarshi Solar
1 Morang Urlabari Solar
1 Okhaldhunga Champadevi Hydro
1 Okhaldhunga Chishankhu Gadhi Wind
1 Okhaldhunga Khiji Demba Hydro
1 Okhaldhunga Likhu Solar
1 Okhaldhunga Manebhanjyang Solar
1 Okhaldhunga Molung Hydro

1 Okhaldhunga Siddhicharan Solar
1 Okhaldhunga Sunkoshi Solar
1 Panchthar Falelung Solar
1 Panchthar Falgunanda Solar
1 Panchthar Hilihan Solar
1 Panchthar Kummayak Hydro
1 Panchthar Miklajung Hydro
1 Panchthar Phidim Solar
1 Panchthar Tumbewa Hydro
1 Panchthar Yangbarak Solar
1 Sankhuwasabha Bhotkhola Solar
1 Sankhuwasabha Chainapur Solar
1 Sankhuwasabha Chichila Solar
1 Sankhuwasabha Dharmadevi Hydro
1 Sankhuwasabha Khandabari Hydro
1 Sankhuwasabha Madi Solar
1 Sankhuwasabha Makalu Hydro
1 Sankhuwasabha Panchakhapan Hydro
1 Sankhuwasabha Sabhapokhari Hydro
1 Sankhuwasabha Silichong Hydro
1 Solukhumbu Dhudha Koushika Hydro
1 Solukhumbu Dhudhakoshi Solar
1 Solukhumbu Khumbu Pasanglhamu Solar
1 Solukhumbu Likhu Pike Hydro
1 Solukhumbu Mahakulung Solar
1 Solukhumbu Necha Salyan Solar
1 Solukhumbu Solu Dhudhakunda Hydro
1 Solukhumbu Sotang Solar
1 Sunsari Baraha Solar
1 Sunsari Barju Solar
1 Sunsari Bhokraha Solar
1 Sunsari Dewangunj Solar
1 Sunsari Dharan Biomass
1 Sunsari Duhabi Solar
1 Sunsari Gadhi Solar
1 Sunsari Harinagara Solar
1 Sunsari Inaruwa Biomass
1 Sunsari Itahari Biomass
1 Sunsari Koshi Solar
1 Sunsari Ramdhuni Solar
1 Taplejung Aatharai Tribeni Solar
35

1 Taplejung Maiwakhola Hydro
1 Taplejung Meringden Solar
1 Taplejung Mikwakhola Solar
1 Taplejung Phaktanlung Solar
1 Taplejung Phungling Hydro
1 Taplejung Sidingba Hydro
1 Taplejung Sirijanga Solar
1 Taplejung Yangwarak Solar
1 Terhathum Aatharai Hydro
1 Terhathum Chhathar Hydro
1 Terhathum Laligurans Hydro
1 Terhathum Menchhayayem Solar
1 Terhathum Myanglung Hydro
1 Terhathum Phedap Hydro
1 Udayapur Belaka Solar
1 Udayapur Chaudandigadhi Solar
1 Udayapur Katari Solar
1 Udayapur Rautamai Hydro
1 Udayapur Sunkoshi Solar
1 Udayapur Tapli Hydro
1 Udayapur Triyuga Solar
1 Udayapur Udayapurgadhi Hydro
2 Bara Aadarsha Kotwal Solar
2 Bara Baragadhi Solar
2 Bara Bishrampur Solar
2 Bara Devtal Solar
2 Bara Jitpur Simara Solar
2 Bara Kalaiya Biomass
2 Bara Karaiyamai Solar
2 Bara Kolhabi Solar
2 Bara Mahagadhimai Solar
2 Bara Nijagadh Solar
2 Bara Pacharauta Solar
2 Bara Parawanipur Solar
2 Bara Pheta Solar
2 Bara Prasauni Solar
2 Bara Simroungadh Solar
2 Bara Subarna Solar
2 Dhanusa Aurahi Solar
2 Dhanusa Bateshwor Solar
2 Dhanusa Bideha Solar

2 Dhanusa Chhireshwornath Solar
2 Dhanusa Dhanauji Solar
2 Dhanusa Dhanushadham Solar
2 Dhanusa Ganeshman Charnath Solar
2 Dhanusa Hansapur Solar
2 Dhanusa Janak Nandini Solar
2 Dhanusa Janakpur Biomass
2 Dhanusa Kamala Solar
2 Dhanusa Laxminiya Solar
2 Dhanusa Mithila Solar
2 Dhanusa Mithila Bihari Solar
2 Dhanusa Mukhiyapatti Musaharmiya Solar
2 Dhanusa Nagarain Solar
2 Dhanusa Sabaila Solar
2 Dhanusa Shahidnagar Solar
2 Mahottari Aurahi Solar
2 Mahottari Balawa Solar
2 Mahottari Bardibas Solar
2 Mahottari Bhangaha Solar
2 Mahottari Ekadara Solar
2 Mahottari Gaushala Biomass
2 Mahottari Jaleshwor Solar
2 Mahottari Loharpatti Solar
2 Mahottari Mahottari Solar
2 Mahottari Manara Shisawa Solar
2 Mahottari Matihani Solar
2 Mahottari Pipara Solar
2 Mahottari Ram Gopalpur Solar
2 Mahottari Samsi Solar
2 Mahottari Sonama Solar
2 Parsa Bahudarmai Solar
2 Parsa Bindabasini Solar
2 Parsa Birgunj Biomass
2 Parsa Chhipaharmai Solar
2 Parsa Dhobini Solar
2 Parsa Jagarnathpur Solar
2 Parsa Jirabhawani Solar
2 Parsa Kalikamai Solar
2 Parsa Pakaha Mainpur Solar
2 Parsa Parsagadhi Solar
2 Parsa Paterwa Sugauli Solar
37

2 Parsa Pokhariya Solar
2 Parsa Sakhuwa Prasauni Solar
2 Parsa Thori Solar
2 Rautahat Boudhimai Solar
2 Rautahat Brindaban Solar
2 Rautahat Chandrapur Solar
2 Rautahat Dewahi Gonahi Solar
2 Rautahat Durga Bhagawati Solar
2 Rautahat Gadhimai Solar
2 Rautahat Garuda Solar
2 Rautahat Gaur Biomass
2 Rautahat Gujara Solar
2 Rautahat Ishanath Solar
2 Rautahat Katahariya Solar
2 Rautahat Madhav Narayan Solar
2 Rautahat Maulapur Solar
2 Rautahat Paroha Solar
2 Rautahat Phatuwa Bijayapur Solar
2 Rautahat Rajdevi Solar
2 Rautahat Rajpur Solar
2 Rautahat Yamunamai Solar
2 Saptari Krishna Sabaran Solar
2 Saptari Balan-Bihul Solar
2 Saptari Belhi Chapena Solar
2 Saptari Bishnupur Solar
2 Saptari Bode Barsain Biomass
2 Saptari Chhinnamasta Solar
2 Saptari Dakneshwori Solar
2 Saptari Hanumannagar Kankalini Solar
2 Saptari Kanchanrup Solar
2 Saptari Khadak Solar
2 Saptari Mahadewa Solar
2 Saptari Rajbiraj Biomass
2 Saptari Rupani Solar
2 Saptari Saptakoshi Solar
2 Saptari Shambhunath Solar
2 Saptari Surunga Solar
2 Saptari Tilathi Koiladi Solar
2 Saptari Tirahut Solar
2 Sarlahi Bagmati Solar
2 Sarlahi Balara Solar

2 Sarlahi Barahathawa Solar
2 Sarlahi Basbariya Solar
2 Sarlahi Bishnu Solar
2 Sarlahi Brahmapuri Solar
2 Sarlahi Chakraghatta Solar
2 Sarlahi Chandranagar Solar
2 Sarlahi Dhanakaul Solar
2 Sarlahi Godaita Solar
2 Sarlahi Haripur Solar
2 Sarlahi Haripurwa Solar
2 Sarlahi Hariwan Solar
2 Sarlahi Ishworpur Solar
2 Sarlahi Kabilashi Solar
2 Sarlahi Kaudena Solar
2 Sarlahi Lalbandi Solar
2 Sarlahi Malangawa Solar
2 Sarlahi Parsa Solar
2 Sarlahi Ramnagar Solar
2 Siraha Arnama Solar
2 Siraha Aurahi Solar
2 Siraha Bariyarpatti Solar
2 Siraha Bhagawanpur Solar
2 Siraha Bishnupur Solar
2 Siraha Dhangadhimai Solar
2 Siraha Golbazar Solar
2 Siraha Kalyanpur Solar
2 Siraha Karjanha Solar
2 Siraha Lahan Biomass
2 Siraha Laxmipur Patari Solar
2 Siraha Mirchaiya Solar
2 Siraha Naraha Solar
2 Siraha Nawarajpur Solar
2 Siraha Sakhuwa Nankarkatti Solar
2 Siraha Siraha Biomass
2 Siraha Sukhipur Solar
3 Bhaktapur Bhaktapur Biomass
3 Bhaktapur Changunarayan Solar
3 Bhaktapur Madhyapur Thimi Biomass
3 Bhaktapur Suryabinayak Biomass
3 Chitawan Bharatpur Biomass
3 Chitawan Ichchha Kamana Solar
39

3 Chitawan Kalika Solar
3 Chitawan Khairahani Solar
3 Chitawan Madi Solar
3 Chitawan Rapti Solar
3 Chitawan Ratnanagar Biomass
3 Dhading Benighat Rorang Solar
3 Dhading Dhunibenshi Solar
3 Dhading Gajuri Hydro
3 Dhading Galchhi Solar
3 Dhading Ganga Jamuna Hydro
3 Dhading Jwalamukhi Hydro
3 Dhading Khaniyabas Hydro
3 Dhading Netrawati Solar
3 Dhading Nilkhantha Solar
3 Dhading Rubi Valley Hydro
3 Dhading Siddhalek Solar
3 Dhading Thakre Hydro
3 Dhading Tripurasundari Solar
3 Dolakha Baitedhar Solar
3 Dolakha Bhimeshwor Solar
3 Dolakha Bigu Solar
3 Dolakha Gaurishankar Solar
3 Dolakha Jiri Solar
3 Dolakha Kalinchowk Solar
3 Dolakha Melung Hydro
3 Dolakha Shailung Solar
3 Dolakha Tamakoshi Solar
3 Kathmandu Budhanilkhantha Biomass
3 Kathmandu Chandragiri Biomass
3 Kathmandu Dakshinkali Solar
3 Kathmandu Gokarneshwor Biomass
3 Kathmandu Kageshwori Manahara Solar
3 Kathmandu Kathmandu Biomass
3 Kathmandu Kirtipur Biomass
3 Kathmandu Nagarjun Biomass
3 Kathmandu Shankharapur Solar
3 Kathmandu Tarakeshwor Biomass
3 Kathmandu Tokha Biomass
3 Kavre. Banepa Solar
3 Kavre. Bethanchowk Hydro
3 Kavre. Bhumlu Solar

3 Kavre. Chauri Deurali Hydro
3 Kavre. Dhulikhel Solar
3 Kavre. Khanikhola Hydro
3 Kavre. Mahabharat Hydro
3 Kavre. Mandan Deupur Hydro
3 Kavre. Namobuddha Hydro
3 Kavre. Panauti Solar
3 Kavre. Panchkhal Hydro
3 Kavre. Roshi Solar
3 Kavre. Temal Solar
3 Lalitpur Bagmati Solar
3 Lalitpur Godawari Biomass
3 Lalitpur Konjyosom Solar
3 Lalitpur Lalitpur Biomass
3 Lalitpur Mahalaxmi Solar
3 Lalitpur Mahankal Hydro
3 Makwanpur Bagmati Solar
3 Makwanpur Bakaiya Solar
3 Makwanpur Bhimphedi Solar
3 Makwanpur Hetauda Biomass
3 Makwanpur Indrasarowar Solar
3 Makwanpur Kailash Hydro
3 Makwanpur Makawanpurgadhi Solar
3 Makwanpur Manahari Solar
3 Makwanpur Raksirang Solar
3 Makwanpur Thaha Hydro
3 Nuwakot Belkotgadhi Solar
3 Nuwakot Bidur Solar
3 Nuwakot Dupcheshwor Hydro
3 Nuwakot Kakani Solar
3 Nuwakot Kispang Hydro
3 Nuwakot Likhu Solar
3 Nuwakot Meghang Solar
3 Nuwakot Panchakanya Solar
3 Nuwakot Shivapuri Hydro
3 Nuwakot Suryagadhi Solar
3 Nuwakot Tadi Solar
3 Nuwakot Tarakeshwor Solar
3 Ramechhap Doramba Hydro
3 Ramechhap Gokulganga Solar
3 Ramechhap Khandadevi Hydro
41

3 Ramechhap Likhu Hydro
3 Ramechhap Manthali Hydro
3 Ramechhap Ramechhap Hydro
3 Ramechhap Sunapati Hydro
3 Ramechhap Umakunda Hydro
3 Rasuwa Gosaikunda Solar
3 Rasuwa Kalika Hydro
3 Rasuwa Naukunda Hydro
3 Rasuwa Parbatikunda Solar
3 Rasuwa Uttargaya Solar
3 Sindhuli Dudhouli Solar
3 Sindhuli Ghyanglekha Solar
3 Sindhuli Golanjor Hydro
3 Sindhuli Hariharpurgaghi Solar
3 Sindhuli Kamalamai Solar
3 Sindhuli Marin Solar
3 Sindhuli Phikkal Hydro
3 Sindhuli Sunkoshi Solar
3 Sindhuli Tinpatan Solar
3 Sindhupalchok Bahrabise Solar
3 Sindhupalchok Balephi Solar
3 Sindhupalchok Bhotekoshi Solar
3 Sindhupalchok Choutara Sangachowkgadhi Solar
3 Sindhupalchok Helambu Hydro
3 Sindhupalchok Indrawoti Solar
3 Sindhupalchok Jugal Solar
3 Sindhupalchok Lisankhu Pakhar Hydro
3 Sindhupalchok Melanchi Solar
3 Sindhupalchok Panchpokhari Thangpal Solar
3 Sindhupalchok Sunkoshi Solar
3 Sindhupalchok Tripurasundari Solar
4 Baglung Badigad Hydro
4 Baglung Baglung Solar
4 Baglung Bareng Solar
4 Baglung Dhorpatan Hydro
4 Baglung Galkot Hydro
4 Baglung Jaimuni Solar
4 Baglung Kathekhola Hydro
4 Baglung Nisikhola Hydro
4 Baglung Tamankhola Hydro
4 Baglung Tarakhola Solar

4 Gorkha Aarughat Solar
4 Gorkha Ajirkot Hydro
4 Gorkha Bhimsen Solar
4 Gorkha Chumanubri Solar
4 Gorkha Dharche Hydro
4 Gorkha Gandaki Solar
4 Gorkha Gorkha Solar
4 Gorkha Palungtar Solar
4 Gorkha Shahid Lakhan Solar
4 Gorkha Siranchowk Solar
4 Gorkha Sulikot Solar
4 Kaski Annapurna Solar
4 Kaski Machhapuchchhre Hydro
4 Kaski Madi Solar
4 Kaski Pokhara Lekhnath Biomass
4 Kaski Rupa Solar
4 Lamjung Bensi Shahar Solar
4 Lamjung Dordi Solar
4 Lamjung Dudhapokhari Hydro
4 Lamjung Kwhola Sothar Hydro
4 Lamjung Madhya Nepal Hydro
4 Lamjung Marshyangdi Solar
4 Lamjung Rainas Solar
4 Lamjung Sundarbazar Solar
4 Manang Chame Hydro
4 Manang Naraphu Hydro
4 Manang Nashong Hydro
4 Manang Neshang Solar
4 Mustang Bahragaun Muktikshetra Hydro
4 Mustang Dalome Hydro
4 Mustang Gharpajhong Hydro
4 Mustang Lomanthang Hydro
4 Mustang Thasang Solar
4 Myagdi Annapurna Solar
4 Myagdi Beni Solar
4 Myagdi Dhawalagiri Hydro
4 Myagdi Malika Hydro
4 Myagdi Mangala Hydro
4 Myagdi Raghuganga Hydro
4 Nawalparasi Binayi Tribeni Solar
4 Nawalparasi Bulingtar Solar
43

4 Nawalparasi Bungdikali Solar
4 Nawalparasi Devchuli Solar
4 Nawalparasi Gaidakot Solar
4 Nawalparasi Hupsekot Solar
4 Nawalparasi Kawasoti Biomass
4 Nawalparasi Madhya Bindu Solar
4 Parbat Bihadi Solar
4 Parbat Jaljala Solar
4 Parbat Kushma Hydro
4 Parbat Mahashila Solar
4 Parbat Modi Solar
4 Parbat Paiyu Solar
4 Parbat Phalebas Solar
4 Syangja Aandhikhola Solar
4 Syangja Arjun Choupari Solar
4 Syangja Bhirkot Municipaity,6 Solar
4 Syangja Biruwa Solar
4 Syangja Chapakot Hydro
4 Syangja Galyang Solar
4 Syangja Harinas Solar
4 Syangja Kaligandaki Solar
4 Syangja Phedikhola Solar
4 Syangja Putalibazar Solar
4 Syangja Walling Solar
4 Tanahu Aanbu Khaireni Solar
4 Tanahu Bandipur Solar
4 Tanahu Bhanu Solar
4 Tanahu Bhimad Solar
4 Tanahu Byas Solar
4 Tanahu Devghat Solar
4 Tanahu Ghiring Solar
4 Tanahu Myagde Solar
4 Tanahu Rhishing Solar
4 Tanahu Shuklagandaki Solar
5 Arghakhanchi Bhumikasthan Solar
5 Arghakhanchi Chhatradev Solar
5 Arghakhanchi Malarani Solar
5 Arghakhanchi Panini Solar
5 Arghakhanchi Sandhikharka Solar
5 Arghakhanchi Shitaganga Solar
5 Banke Baijanath Solar

5 Banke Duduwa Solar
5 Banke Janaki Solar
5 Banke Khajura Solar
5 Banke Kohalpur Solar
5 Banke Narainapur Solar
5 Banke Nepalganj Biomass
5 Banke Rapti Sonari Solar
5 Bardiya Badhaiyatal Solar
5 Bardiya Bansgadhi Solar
5 Bardiya Barbardiya Solar
5 Bardiya Geruwa Solar
5 Bardiya Gulariya Biomass
5 Bardiya Madhuwan Solar
5 Bardiya Rajapur Solar
5 Bardiya Thakurbaba Solar
5 Dang Babai Solar
5 Dang Bangalachuli Solar
5 Dang Dangisharan Solar
5 Dang Gadhawa Solar
5 Dang Ghorahi Solar
5 Dang Lamahi Solar
5 Dang Rajpur Solar
5 Dang Rapti Solar
5 Dang Shantinagar Solar
5 Dang Tulsipur Solar
5 Gulmi Chandrakot Solar
5 Gulmi Chhatrakot Solar
5 Gulmi Dhurkot Solar
5 Gulmi Isma Solar
5 Gulmi Kali Gandaki Solar
5 Gulmi Madane Solar
5 Gulmi Malika Solar
5 Gulmi Musikot Hydro
5 Gulmi Resunga Solar
5 Gulmi Ruru Solar
5 Gulmi Satyawoti Solar
5 Gulmi Gulmi Durbar Solar
5 Kapilbastu Banganga Solar
5 Kapilbastu Bijayanagar Solar
5 Kapilbastu Buddhabhumi Solar
5 Kapilbastu Kapilbastu Biomass
45

5 Kapilbastu Krishnanagar Biomass
5 Kapilbastu Maharajganj Solar
5 Kapilbastu Mayadevi Solar
5 Kapilbastu Shivaraj Solar
5 Kapilbastu Shuddhodhan Solar
5 Kapilbastu Yasodhara Solar
5 Nawalparasi Bardaghat Solar
5 Nawalparasi Palhinandan Solar
5 Nawalparasi Pratapapur Solar
5 Nawalparasi Ramgram Solar
5 Nawalparasi Sarawal Solar
5 Nawalparasi Sunawal Solar
5 Nawalparasi Susta Solar
5 Palpa Baganaskali Hydro
5 Palpa Mathagadhi Hydro
5 Palpa Nisdi Solar
5 Palpa Purbakhola Hydro
5 Palpa Rainadevi Chhahara Solar
5 Palpa Rambha Solar
5 Palpa Rampur Solar
5 Palpa Ribdikot Solar
5 Palpa Tansen Solar
5 Palpa Tinau Solar
5 Pyuthan Aairawati Solar
5 Pyuthan Gaumukhi Solar
5 Pyuthan Jhimaruk Solar
5 Pyuthan Mallarani Solar
5 Pyuthan Mandavi Solar
5 Pyuthan Naubahini Hydro
5 Pyuthan Pyuthan Solar
5 Pyuthan Sarumarani Solar
5 Pyuthan Sworgadwari Solar
5 Rolpa Duikholi Hydro
5 Rolpa Lungri Solar
5 Rolpa Madi Hydro
5 Rolpa Rolpa Hydro
5 Rolpa Runtigadhi Hydro
5 Rolpa Subarnabati Solar
5 Rolpa Sukidaha Hydro
5 Rolpa Sunchhahari Hydro
5 Rolpa Thawang Hydro

5 Rolpa Tribeni Hydro
5 Rukum Bhoome Hydro
5 Rukum Putha Uttanganga Hydro
5 Rukum Sisne Hydro
5 Rupandehi Butwal Biomass
5 Rupandehi Devdaha Solar
5 Rupandehi Gaidahawa Solar
5 Rupandehi Kanchan Solar
5 Rupandehi Kotahimai Solar
5 Rupandehi Lumbini Sanskritik Biomass
5 Rupandehi Marchawari Solar
5 Rupandehi Mayadevi Solar
5 Rupandehi Om Satiya Solar
5 Rupandehi Rohini Solar
5 Rupandehi Sainamaina Solar
5 Rupandehi Sammarimai Solar
5 Rupandehi Siddharthanagar Biomass
5 Rupandehi Siyari Solar
5 Rupandehi Suddhodhan Solar
5 Rupandehi Tilottama Biomass
6 Dailekh Aathbis Solar
6 Dailekh Bhagawatimai Hydro
6 Dailekh Bhairabi Solar
6 Dailekh Chamunda Bindrasaini Hydro
6 Dailekh Dullu Solar
6 Dailekh Dungeshwor Solar
6 Dailekh Gurans Solar
6 Dailekh Mahabu Hydro
6 Dailekh Narayan Solar
6 Dailekh Naumule Solar
6 Dailekh Thantikandh Solar
6 Dolpa Chharka Tangsong Solar
6 Dolpa Dolpo Buddha Solar
6 Dolpa Jagadulla Hydro
6 Dolpa Kaike Solar
6 Dolpa Mudkechula Hydro
6 Dolpa Shey Phoksundo Hydro
6 Dolpa Thulibheri Hydro
6 Dolpa Tripurasundari Hydro
6 Humla Adanchuli Hydro
6 Humla Chankheli Solar
47

6 Humla Kharpunath Solar
6 Humla Namkha Solar
6 Humla Sarkegad Hydro
6 Humla Simkot Hydro
6 Humla Tanjakot Hydro
6 Jajarkot Barekot Hydro
6 Jajarkot Bheri Malika Solar
6 Jajarkot Chhedagad Hydro
6 Jajarkot Junichande Hydro
6 Jajarkot Kuse Hydro
6 Jajarkot Shivalaya Hydro
6 Jajarkot Tribeni Nalagad Hydro
6 Jumla Chandannath Solar
6 Jumla Guthichaur Hydro
6 Jumla Hima Hydro
6 Jumla Kanaka Sundari Solar
6 Jumla Patarasi Hydro
6 Jumla Sinja Hydro
6 Jumla Tatopani Hydro
6 Jumla Tila Hydro
6 Kalikot Kalika Hydro
6 Kalikot Khandachakra Hydro
6 Kalikot Mahawai Hydro
6 Kalikot Naraharinath Hydro
6 Kalikot Pachal Jharana Hydro
6 Kalikot Palata Hydro
6 Kalikot Raskot Hydro
6 Kalikot Sanni Tribeni Hydro
6 Kalikot Tilagupha Hydro
6 Mugu Chhayanath Rara Hydro
6 Mugu Khatyad Hydro
6 Mugu Muguma karmarog Hydro
6 Mugu Soru Hydro
6 Rukum Aathabisakot Hydro
6 Rukum Banphikot Hydro
6 Rukum Chaurjahari Solar
6 Rukum Musikot Hydro
6 Rukum Sanibheri Hydro
6 Rukum Tribeni Solar
6 Salyan Bagachour Solar
6 Salyan Banagad Kupinde Hydro

6 Salyan Chhatreshwori Solar
6 Salyan Darma Solar
6 Salyan Dhorchaur Solar
6 Salyan Kalimati Hydro
6 Salyan Kapurkot Solar
6 Salyan Kumakh Malika Solar
6 Salyan Sharada Hydro
6 Salyan Tribeni Solar
6 Surkhet Barahatal Solar
6 Surkhet Bheriganga Solar
6 Surkhet Birendranagar Biomass
6 Surkhet Chaukune Solar
6 Surkhet Chingad Hydro
6 Surkhet Gurbhakot Solar
6 Surkhet Lekabeshi Solar
6 Surkhet Panchapuri Solar
6 Surkhet Simta Solar
7 Achham Bannigadhi Jayagadh Hydro
7 Achham Chaurpati Solar
7 Achham Dhakari Hydro
7 Achham Kamal bazar Solar
7 Achham Mangalsen Solar
7 Achham Mellekh Hydro
7 Achham Panchdebal Binayak Solar
7 Achham Ramaroshan Hydro
7 Achham Sanphebagar Hydro
7 Achham Turmakhand Solar
7 Baitadi Dasharathchand Hydro
7 Baitadi Dilasaini Solar
7 Baitadi Dogada Kedar Hydro
7 Baitadi Melauli Hydro
7 Baitadi Pancheshwor Hydro
7 Baitadi Patam Hydro
7 Baitadi Puchaundi Hydro
7 Baitadi Shivanath Solar
7 Baitadi Sigas Hydro
7 Baitadi Surnaya Solar
7 Bajhang Bitthadchir Solar
7 Bajhang Bungal Hydro
7 Bajhang Chhabis Pathibhara Hydro
7 Bajhang Durgathali Solar
49

7 Bajhang Jayaprithbi Hydro
7 Bajhang Kanda Hydro
7 Bajhang Kedarsyun Hydro
7 Bajhang Khaptad Chhanna Hydro
7 Bajhang Masta Hydro
7 Bajhang Surma Hydro
7 Bajhang Talkot Hydro
7 Bajhang Thalara Solar
7 Bajura Badimalika Hydro
7 Bajura Budhiganga Hydro
7 Bajura Budhinanda Hydro
7 Bajura Chhededaha Hydro
7 Bajura Gaumul Hydro
7 Bajura Himali Hydro
7 Bajura Pandab Gufa Hydro
7 Bajura Swami Kartik Hydro
7 Bajura Tribeni Hydro
7 Dadeldhura Ajayameru Hydro
7 Dadeldhura Amargadhi Hydro
7 Dadeldhura Bhageshwor Hydro
7 Dadeldhura Ganyapdhura Hydro
7 Dadeldhura Nawadurga Hydro
7 Dadeldhura Parashuram Solar
7 Dadeldhura Shuklaphanta Solar
7 Darchula Apihimal Hydro
7 Darchula Byas Hydro
7 Darchula Duhun Hydro
7 Darchula Lekam Solar
7 Darchula Mahakali Hydro
7 Darchula Malikarjun Solar
7 Darchula Marma Hydro
7 Darchula Naugad Hydro
7 Darchula Shailyashikhar Solar
7 Doti Aadarsha Hydro
7 Doti Badi Kedar Solar
7 Doti Bogatan Solar
7 Doti Dipayal Silgadhi Solar
7 Doti Jorayal Hydro
7 Doti K.I. Singh Solar
7 Doti Purbichouki Hydro
7 Doti Sayal Hydro

7 Doti Shikhar Hydro
7 Kailali Bardagoriya Solar
7 Kailali Bhajani Solar
7 Kailali Chure Hydro
7 Kailali Dhangadhi Biomass
7 Kailali Gauriganga Solar
7 Kailali Ghodaghodi Solar
7 Kailali Godawari Hydro
7 Kailali Janaki Solar
7 Kailali Joshipur Solar
7 Kailali Kailari Solar
7 Kailali Lamki Chuha Solar
7 Kailali Mohanyal Solar
7 Kailali Tikapur Biomass
7 Kanchanpur Bedkot Solar
7 Kanchanpur Beldandi Solar
7 Kanchanpur Belouri Solar
7 Kanchanpur Bhimdatta Biomass
7 Kanchanpur Krishnapur Solar
7 Kanchanpur Laljhadi Solar
7 Kanchanpur Mahakali Solar
7 Kanchanpur Punarbas Solar
7 Kanchanpur Shuklaphanta Solar
51
References
Ashish Shrestha, “Planning, design and optimization of distribution system for affected
area of Upper Karnali Hydropower Project”, Master’s Thesis, Department of Mechanical
Engineering, Kathmandu University, 2016.
Bikram Shrestha, “Determining the hosting capacity of PV in Power Network, A Case Study
of INPS”, Master’s Thesis, Department of Electrical Engineering, IOE, Pulchowk Campus,
Tribhuvan University, 2016.
Distribution Consumer Services Directorate, Nepal Electricity Authority
Distribution Consumer Services Directorate, Nepal Electricity Authority, Annual Magazine

2017.
International Centre for Integrated Mountain Development (ICIMOD), 2016 http://www.

icimod.org/?q=16911
Nepal Electricity Authority, Annual Report 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2010.
Nepal Electricity Authority, Load Forecast Report 2015.
Nepal Living Standard Survey, March 2012
Nepal Rastra Bank, July 2017. “Quarterly Economic Bulletin”
Population Census Report, Central Bureau of Statistics, 2011.
Prof Dr Tamas Jonas, Dr. Kovacs Elza, 2008. “Input materials of Biogas production” http://
www.tankonyvtar.hu/en/tartalom/tamop425/0032_kornyezettechnologia_en/
ch01s02.html
Rakesh Ranjan, B. Venkatesha, D. Das, “A new algorithm for power distribution system
planning”, Electric Power System Research, 2002.
Salman Zafar, Nov 15, 2015, “Biomass Resources from Rice Industry” https://www.
bioenergyconsult.com/tag/energy-potential-of-rice-husk
United Nations, 2015 “Sustainable Development Goals”
United Nations, 2015 “Sustainable Energy For All”
World Bank, ESMAP, 2015 “Multi-tier Framework”

Annex 1: Contributors to SUDIGGAA

Name Particulars
Hitendra Dev Shakya Team Coordinator
Deepak Das Tamrakar Team Leader of Assignment
Om Krishna Shrestha Group Leader (Electrical)
Gopal Basnet Sub-group Province Leader
Kalidas Neupane Biomass Group Leader
Bhaskar Kafle Sub-group P-3 Leader
Sitaram Neupane Sub-group P-4 Leader
Khimananda Kandel Group Leader - Hydropower
Netra Timilasina Sub-group P-5 Leader
Babu Raja Maharjan Group Leader (Mechanical)
Prajwal Khadka Group Leader (Electrical)
Jiwan Kumar Mallik Group Leader (Solar)
Abhishek Yadav Economic Specialist and Solar Group Leader
Dipesh Shrestha Group Leader (Solar)
Niroj Karmacharya GIS Expert
Pravakar Khanal Engineer-Geomatics
Saurav Suman Engineer –Hydropower
Yuba Raj Acharya Engineer –Hydropower
Raju Mandal Engineer –Hydropower
Binod Karki Engineer –Hydropower
Neeraj Kumar Sah Engineer –Hydropower
Nabin Panta Engineer –Hydropower
Binay Paudyal Engineer - Power System
Kishor Karki Engineer – Electrical
Bishnu Dawadi Engineer – Electrical
Tika Ram Regmi Engineer – Electrical
Ravi Raj Shrestha Engineer – Electrical
Prasan Lama Engineer-Geomatics
Suraj Upadhyay Engineer-Geomatics
Amir Bhandari Engineer-Geomatics
Shaligram Lamsal Engineer-Geomatics
Ranju Pote Engineer-Geomatics
Bijaya Aryal Engineer-Geomatics
Ashutosh Bhandari Engineer-Geomatics
Himal Chand Thakuri Engineer-Geomatics
Jagadish Poudel Engineer-Geomatics
Ishwor Sapkota Engineer-Geomatics
Yurosh Sapkota Engineer-Geomatics
Sujan Nepali Engineer-Geomatics
Abin Prajapati Engineer-Geomatics
Anushka Adhikari Engineer – Electrical
Abanish Tiwari Engineer– Electrical
Bibhav Rayamajhi Engineer - Civil
Ramesh Kandel Engineer - Civil
Ashish Regmi Engineer - Electrical
53
Annex 2: Glimpses of the Event
Members of SUDIGGAA team of NEA Engineering Company, with honorable Dr. Arbind Kumar Mishra,
Member, National Planning Commission
Honorable delegates sharing their views on the workshop organized by National Planning Commission
and NEA Engineering Company on 27th Jan 2018
Attendees on meeting on Initiation of SUDDIGGAA, organized by NEA Engineering Company on 11th Oct 2017
Kulman Ghising, Managing Director, Nepal Electrical Authority, addressing the Workshop on SUDIGGAA,
organized by National Planning Commission and NEA Engineering Company on 4th Jan 2018.
55
56
Annex 3: Selected Distributed Generation in each VM/TM with Existing and Proposed Substations and Lines
MAP SHOWING EXISTING AND PROPOSED SUBSTATIONS AND TRANSMISSION LINES WITH DISTRIBUTED GENERATION
A PLAN FOR SUSTAINABLE DISTRIBUTED
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Selected Biomass Sites <
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Selected Wind Site <
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11 kV Proposed <
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! 11 kV Switching Station
33 kV Proposed
/
" 33/11 kV Existing
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"
66 kV Existing
33/11 kV Proposed
/
"
132 kV Existing
33/11 kV NEA Proposed
`
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132 kV Proposed
66/11 kV Existing
2
% 132 kV NEA Proposed
132/33/11 kV Existing
District Boundary
2
% 132/33/11 kV Proposed
2
%
0 45 90 180 270 360
132/33/11 kV NEA Proposed Kilometers
57
G O V E R N M E N T O F N E PA L
N AT I O N A L P L A N N I N G C O M M I S S I O N
K AT H M A N D U

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Universalizing

Clean Energy in Nepal

Designed and Processed by

Swarnim Waglé, PhD

Arbind Kumar Mishra, PhD

Hitendra Dev Shakya

3 Conclusion and Recommendations 23

4 Distributed Generation in each VM/TM 33

Annex 1: Contributors to SUDIGGAA 53

The perils of destabilizing the climate

Figure 1: Access to Electricity

Source: NLSS, 2012

Table 1a: Multi-tier Matrix for Access to Household Electricity Supply

disruptions disruptions per

Table 1b: Multi-tier Matrix for Access to Household Electricity Services

Table 1c: Multi-tier Matrix for Electricity Consumption

Figure 2: Overall Methodology

STEP 1: Grid Extension STEP 5: Financial Analysis of DG Projects

Financial analysis is performed to select the

STEP 6: Technical and Cost Analysis

STEP 3: DG Solar PV, Wind Power, STEP 7: Economic Analysis

STEP 4: District Field Visit STEP 8: Workshop & Feedback

Table 2: Province wise Summary of Identified Hydropower Sites

Table 3: Financial Analysis of Hydropower (1000 kW) at different Costs

Table 5: Sensitivity Analysis of Scenario B (1 MWac Solar PV Without

Figure 3:Total Proposed Substations (530)

132/33 : 1.51% (8 out of 530)

33/11 : 60.94% (323 out of 530)

11 sw/s : 37.54% (199 out of 530)

Figure 4: Number of Proposed Substations per Province

132/33kv 33/11kv 11kv Switching Substations

Figure 5: Total Proposed Transmission & Distribution Lines

2.4.2 Cost of Substation and T&D 2.5 Financial Analysis of

2.5.1 Levelized Cost and Benefit of

Figure 7: Province wise Division of Cost of Grid Extension

Substation Transmission line

Figure 8: Number of Selected Distributed Generation Projects per Province

Province 1 Province 2 Province 3 Province 4 Province 5 Province 6 Province 7

Hydro Solar PV Biomass Wind

Figure 9: Levelized Cost and Benefits of Selected Distributed

LBOE Range LBOE

Figure-10: Installed Capacity of Selected Projects

Figure 11: Investment Required for Selected Projects, per Province

Province 1 Province 2 Province 3 Province 4 Province 5 Province 6 Province 7

Hydro Solar PV Biomass Wind

Figure 12:Total Capital Investment Required for Generation Projects

Figure 13:Total Viability Gap Funding Requirement for Generation

Figure 14: Province wise Division of Viability Gap Funding Required

Hydro Solar PV Biomass Wind

Figure 15: Average VGF Required per kW for Different RETs

Hydro Solar PVB Biomass Wind power

Figure 16: Average Investment Required per kW for Different RETs

Table 6: Summary of Best DG Projects Selected for Alternative Scenario –

PROVINCE: 1 2 3 4 5 6 7 Country Total

Table 7: Summary of Best DG Projects Selected for Alternative Scenario –

3.1.2 Province 2 The economic model captures the following

Table 8: Result of Economic Analysis

Scenario Scenario A: Grid Scenario B: Grid Scenario A: Grid Scenario B: Grid

Table 9: Phase-wise Implementation of Grid Extension

3.2.1.1 Distributed Generation projects 3.2.1.2 Expansion of Grid – Sub-trans-