Back to Home Page of CD3WD Project or Back to list of CD3WD Publications

CLOSE THIS BOOKVillage Electrification (SKAT, 1992, 128 p.)
Part 11: The salleri chialsa venture
VIEW THE DOCUMENT(introduction...)
VIEW THE DOCUMENT1 Introduction
VIEW THE DOCUMENT2. Energy and hydro power
VIEW THE DOCUMENT3. The small hydro power sector
VIEW THE DOCUMENT4. The history of the salleri chialsa small hydro power project
VIEW THE DOCUMENT5. The setting
VIEW THE DOCUMENT6. Construction and features of plant and grid
VIEW THE DOCUMENT7. Design and technical data
VIEW THE DOCUMENT8. Operation
VIEW THE DOCUMENT9. Management by a shareholder company
VIEW THE DOCUMENT10. Conclusions

Village Electrification (SKAT, 1992, 128 p.)

Part 11: The salleri chialsa venture

This article has been written by the Company for International Technical Cooperation and Development of Switzerland, ITECO ,for this SKAT publication.

1 Introduction

At present about 94% of Nepal's population resides in rural areas and only two percent of the rural population has access to electricity. A serious energy and power deficit exists in most of Nepal's rural areas, but especially in remote areas which are not linked to the national electricity grid and have only limited access to commercial fuels. Nepal's vaste hydropower potential has Ied planners and engineers to exploit this resource since long. Already many small hydropower plants exist, but most lack any possibility to increase their capacity or additional investments are not feasible. So new schemes need to be constructed.

Operation, maintenance and socioeconomic implementation of new energy structures (like electricity generation and distribution) in the cultural environment of Nepal seem to be difficult and their success doubtful. Simple rules, based on long term experiences, are not available. Knowhow and experience transfer from one area to another has not yet proved feasible.

It is commonly said that small hydropower plants are uneconomic because of their poor station (or load) factor (i.e. low utilization of investment), high engineering and overhead costs, inconsistent equipment and lack of spare parts. Obviously the cost of electric energy generated in isolated small hydropower plants must be higher than urban supply.

As a matter of fact a Ten Year Rural Electrification Strategy and Plan Study has shown that even for a minimum service, the unit rates (price for one kWh) will compulsorily be higher than the present official tariff of the Nepal Electricity Authority (NEA). But rural Nepalese in most parts of the country are so impoverished that the majority may not be able to bear the actual costs of electricity. That is the reason why development of small hydropower plants should not be seen and promoted independently from the development of other infrastructural, economie and social aspects.

2. Energy and hydro power

The two principal indigenous energy resources in Nepal are forests and extensive river systems. Table 1 below shows that roughly 94% of the primary energy originates from Nepal, but unfortunately almost four fifth are firewood.

The present area of forest is estimated at some 30'000 km,. Population pressure and the increasing demand for arable land and forest products have reduced forest coverby half in the last 20 years since 1970. At present annual firewood consumption is of some 10 million tons. Under the assumption of a "moderate afforestation program " of yearly 500 km2, projections of the UNDP/World Bank anticipate the virtual disappearance of Nepal's forests by the year 2010. The greatest scope for increasing firewood supplies, in the short and medium term, will be through improved management of the existing forests, including forest protection, i.e. elimination of misuse. Improvements in the transformation process into final energy and substitution of other energy resources where and whenever possible will also support to reduce deforestation.

Nepal has a considerable hydropower potential of about 83'000 MW. 27'000 MW have been investigated for development. But many of the considered plants are of a dimension that would require joint ventures and export of electricity to the Indian power market to be economically justified.

The currently installed hydro power capacity in Nepal is about 240 MW, including the recently inaugurated Marshyangdi power plant. To date most of the hydropower development has focused on projects shaped to meet domestic requirements which have resulted in low specific utilization and high unit costs.

Table 1 Primary Energy Statistics of Nepal: estimated and updated structure of primary energy consurnption in 1988/89.

Particulars

in bilion kWh [TWh]

[%]

Indigenous:



Firewood

37.6

73.7

Dung/Residues

9.5

18.6

Hydro Electricity

0.8

1.6

Imports:



Electricity

0.2

0.4

Petrol

2.3

4.5

Coal/Lignite

0.6

1.2

Total

51.0

100.0

Table 1 for instance shows that the available average annual primary energy demand per capita is in the range of 2500 to 3000 kWh, compared to 30'000 to 40'000 kWh, typical figures for Western countries. In this context the total efficiency of the energy transformation process to the end use is of great importance. The probable figure in Nepal (with many open fire places) is less than 10%, whereas in western countries it is between 40 to 50% (45% in Switzerland)!

3. The small hydro power sector

Small Hydro Power Schemes are defined to be of a capacity of more than 100 kW and less or equal to 5 MW.

In the last years the small hydro power sector in Nepal has made good progress, although the result is far below the necessity and the initial expectations of the early sixties. Potential promoters have been discouraged to replicate the few successful examples on a wider scale. The reasons are many: insufficient analyses of potential sites, lack of appropriate hydrological data, bureaucratic delays, extremely high specific investment costs (typical US$ 3 000 to 5 000 or more per kW), institutional shortcomings, lack of clearly defined goals, inadequate tariff and connection policy, overstaffing, untrained administrative and technical staff...

At present the overall installed capacity in small hydropower plants is almost 12 MW, less than 5% of the installed national generating capacity.


under construction

in operation

Number

7

34

Capacity [kW]

7 650

11 239


Table 2 Present situation Small Hydro Power Plants
(up to 5 000 kW) according to SHPD Nepal.

Most of these stations are or will be operated by NEA and its Small Hydro Power Department (SHPD).

4. The history of the salleri chialsa small hydro power project

The relevant history of the Salleri Chialsa Project began in the late fifties, after the people's revolt in Tibet and its suppression by the Chinese. At that time thousands of Tibetan refugees moved into eastern Nepal and settled among the TibetoBurmese ethnic groups (Gurung, Limbu, Magar, Rai, Sherpa, Tamang) in the district of Solukhumbu. With the aid from various international organizations, His Majesty's Government of Nepal started a programme in 1960 to help resettle the refugees and founded (among others) the Tibetan Community of Chialsa. Most of the Tibetan families in the community economically depend on handicraft. The handicraft center with its carpet factory, where the raw wool is prepared, washed, spun, dyed and where the carpets are woven is still today the most important source of income for these Tibetans.

Dying of wool is a very energy intensive procedure and the heating has always been done with firewood. The efficiency of the open fire method is deplorably bad and the firewood consumption high. The total primary energy consumption during the period 1960 to 1987 is an estimated 2500 tons of firewood representing some 10 million kWh. To avoid such an ecologically and socially unacceptable use of firewood the Swiss Government through its Swiss Development Cooperation (SDC Nepal), consequently decided to electrify the Chialsa handicraft center by construction of a small hydel in the vicinity. This was the Salleri-Chialsa Small Hydel. The first investigations were made by the Swiss Association for Technical Assistance (SATA) in 1960. By 1962 SATA was ready to install a hydro power station. Survey and design had been carried out and a water gauge erected. In 1964 the decision making authorities postponed the project by 5 years! They claimed that the available data were not reliable enough to economically justify the plant's construction.

Due to this and other setbacks during the initial construction phase of the small hydro plant, the first electrically dyed wool left the newly built dye house in March 1987 only. Since that time two electrical dye vats, proposed and installed by the consultant, have been operated with a remarkably high availability. Electricity (hydro) is obviously cheaper, cleaner and ecologically harmless.

5. The setting

The Salleri Chialsa power station is situated in Salleri Village Panchayat of Solukhumbu District, eastern Nepal. Like most other mountainous districts in Nepal, Solukhumbu District suffers from a severe lack of essential infrastructure such as roads, bridges, drinking water supply, telecommunication facilities and health services.

The economy is based on agriculture, forestry, trade, handicraft, and a little tourism. The climate is rough (down to minus 10°C in winter) and often humid. Agricultural production is insufficient to cover the basic needs of the district so that imports from the southern part of the country (Terse) and India are necessary.

6. Construction and features of plant and grid

A first project was initiated in 1976 and construction activities took place in the following years. But several times landslides tore away part of the almost completed head race canal. For technical as well as for political reasons it was then decided to close down the first phase of construction.

In 1984, after site preparation, slope stabilization and afforestation in 1983, the Swiss Development Cooperation and His Majesty's Government of Nepal agreed to reanimate the works and to construct a 400 kW Hydel on the Solukhola in Salleri, designed for two generating groups of a rated capacity of 200 kW each. As the load estimates for the first years were rather low, the promoters decided to install only one generating group initially. The engineering work was entrusted to ITECO. The power station began to produce electricity in February 1986. The 11 kV lines, with a length of roughly l0km, supply a distribution grid which was built up step by step from 1987 to 1990.

Up to now more than 400 houses are connected to the supply grid and about 2500 to 3000 people are directly benefitting from electricity. In the present
supply area there are three significant industries, the

Chialsa Handicraft Center (as mentioned before), the Sagarmatha Water Turbine, a small enterprise for woodwork, paper production and cereal milling, and a recently inaugurated Bakery. The monthly consumption in the industrial tariff level is about 4'000 to 4'500 kWh. The annual total in the Fiscal Year 1990/1991 was of 42 872 kWh, i.e. roughly 9% of the total electricity sales.

The distribution system, when fully developed in 1993, will cover parts of Salleri Panchayat and Garma Panchayat, with 4000 to 5000 people as potential end users. This implies the installation of a second generating unit and the extension of the 11 kV lines of today 10 to about 20 kin.

The target number for the project is 750 to 800 connections with about 7 to 10 new or newly electrified industries and about 20 cottage industries. The industries will increase the day load and also create new income sources and jobs for the area.

7. Design and technical data

The power plant is a 'classical' run-of-the river scheme, designed for 400 (maximum 500) kW hydraulic gross capacity and two generating units.

At present it is equipped with only one turbine! alternator group of 180 kW nominal output capacity. The hydraulic layout is such that it can be run at full capacity the whole year. The possible electricity generation is in the range of 1.5 million kWh per year; this figure will increase to 3 million kWh after the implementation of the second generating group during the second phase of the Salleri-Chialsa Electrification and Utilisation Project (SELUP).

The grid consists of 3 phase I I kY transmission lines, a 3 phase main low tension grid with peripheral sub-distribution boxes and the three or single phase service drop cables to the houses. This system can easily provide a supply in three or single phase to small and cottage industries.

8. Operation

Key figures are presented in the Table 3 below. Some more details are displayed at the end of this part.

The consumer distribution substantially increased in the last two years since a clear and firm connection policy and sales promotion were implemented and the small business and industry promotion effectively supported by the SELUP.


Fig 1a Area map of the power plant.


Fig 1b Situation map of the power plant


Table 3 Key Figures of Plant Operation

The Station Factor of the Salleri Plant is in the Nepali Context remarkably high. Annual average figures of nearly 35% are rather seldom for an isolated rural power plant. In Dec 90/Jan 91 the Station Factor was even slightly more than 40 %!

9. Management by a shareholder company

A Conceptual Input Study in l987 found that the preferred organizational form for the Utility was the Joint Ownership/Share Company. The Share Company structure was considered to be more suitable than the "cooperative" to achieve the intended goals since it offers financial stimulus to the partners and permits differentiated economic activities (reinvestment, diversification, etc) if wished by the share holders.

Preparatory work was done by a small group in Nepal (one member was an expatriate). This cooperation in legal matters and the experiences gained on both sides were extremely fruitful and stimulating.

In autumn 1989, after the basic legal papers of the Company (the Memorandum of Association and the Articles of Association) were signed by the promoters, His Majesty's Government of Nepal and SDC/N, the documents were submitted to the Ministry of Industries for registration of the Salleri Chialsa Electricity Company (SCECO), public limited by shares.

In many respects SCECO is a pioneer project. Since the constitution of Nepal allocates the authority for electricity generation and distribution to the Nepal Electricity Authority exclusively, SCECO is the one and only exception of a private electricity utility. At present there is no similar case in Nepal.

In February 1991, after a long period of discussions about legal aspects of the venture within His Majesty's Government, the Company was finally registered and established.

Based on the legal papers of the Company, 'internal' and 'external' rules and regulations were drafted.

The 'internal' rules are known as the Service Rules of SCECO. They are designed to define the structure of the Company and the conditions of service, employment, recruitment, promotion and discipline of the staff of the Company.

The 'external' rules are known as the Tariff and connection Policy of SCECO. They define the mutual rights and obligations of the SCECO and its customers/ consumers respectively.

9.2 Summary of the "TARIFF and

CONNECTION POLICY" of SCECO

In 1989 the need for an appropriate, coherent tariff and connection policy became urgent. The frame work of such a policy, designed in the Conceptual Input Study, was not comprehensive enough to avoid "bad exceptions", "unacceptable privileges" and "spontaneous rules" which later could lead to unforeseen problems. So, frequent up and downgrading of tariff levels, late payment, extremely short notice periods (e.g. one day), extensive and costly service drop installations without any cost participation by the customer were the rule. All this kept the SCECO team too busy to attend to the policy development, needed to break the vicious circle.

The following paragraphs give a summary of the 'Tariff and Connection Policy' of SCECO:

The SCECO tariff is mainly based on the fact that a greater part of the connections are not metered and that individual Load Control Switches limit the off take of power as per tariff levels. These Load Control Switches automatically cut out when the permitted power off-take is exceeded. Reconnection can only be done by the SCECO staff.

The tariff is divided into 5 levels defined by the permissible power off-take during peak and off-peak times. A special industrial level was designed to promote day and off-peak consumption.

Every tariff level has to pay a fixed rate which reflects partly the cost of the allowed power taking and partly is due to the fixed costs related to every connection. Levels I and 2 pay a fixed rate only and are not equipped with meters. Levels 3, 4 and 5 are metered and have to pay a fixed rate as well as a differentiated, degressive price per consumed unit (kWh).

Levels 1, 2 and 3 are grouped in the 'Domestic' category with maximum power consumptions of 0. 1, 0.5 and 2 kW respectively; level 4, known as the 'Service' category, covers connections of schools, hospitals, hotels and lodges, governmental offices
and cottage industries with a maximum power consumption of 8 kW; level 5, the 'Industry' category, is specially designed to promote day consumption by low unit prices. It allows an off-peak power consumption of 10 kW or more and is drastically curtailed during the peak hours by a clock relay device.

The consumer has to pay his electricity bill and any other charges (e.g. reconnection fees and late payment surcharges, etc.) during the first 15 days of the next month. Otherwise SCECO will charge a late payment fee.

People wishing to have an electrical connection on to their house or premises have to submit a written application to SCECO. The company allows only one connection to each domestic house, condominium or apartment (property).

If the request for a new connection is granted by the company, the applicant has to advance payment for: - The cost participation as per application form
or bill

- The conection fee

Level

NRs

1

250/

2

500/

3

1 000/

4

1 500/

5

1500/

Table 4 Connection fees for the different consumption levels

With the payment of the connection fee the applicant is entitled to be connected to the supply grid of the company and to claim electrical power as per tariff level (and according to the technical possibilities at the tap off point).

Table 5 Maximum power consumption for the different levels

Level

max Power 1kW

1

0.1

2

0.5

3

2.0

4

4.0 to 8.0

5

to be fixed by the company;

If an applicant is a "domiciled house holder", the eonnection fee is automatically converted into ordinary shares of NRs 10/- eaeh. If not, the applicant is not entitled to shares but, as long as connected to the supply grid of the company, he has a claim to electrical power at the designated level. Note: 'domiciled house holder's are either people who normally reside or companies whose registered offices or places of work are within the supply area and who are connected (or on the way to) to the electric grid of the company.

The period of notice of the connection by the customer is 3 months. This period applies to all changes required by the customer (disconnection, change of level, ...).

Exchange of a service drop cable for higher power is possible in principle if:

- The applicant is entitled to a higher level. - The technical conditions are favorable.

- The applicant is willing to pay the full costs of a new connection (cable, trench, accessories, labour, house wiring, etc).

The connection will not be switched on until the house wiring has been checked for safety by the company. The right of connection will be permanently or temporarily withdrawn, if the wiring becomes dangerous or abuse occurs.

The meters are the property of the company and shall be installed and maintained free of charge.

9.2.1 Meter Calibration, Pilferage

Meter calibration is done by the staff periodically with a standard Watt hour meter.

Pilferage, so far, is not a problem, since the majority of the connections is not metered at all and the low tension distribution system consists of underground cables.

9.2.2 Administration

The management of an electricity utility and share holder company with only 8 staff (only two of them are administratives) is a challenging task and, by necessity, strengthens all administrative procedures.

The offices at Naya Bazar/Salleri are provided with recent and modem office equipment including PCs. Otherwise it would be impossible to maintain accounts, billing, monitoring and share holder, customer and consumer services, etc. efficiently.

Meter reading and billing are usually time consuming. The project has simplified the procedure as much as possible. With the meterless levels I & 2 (fixed rates) the time spent on meter reading has been minimized. Two operators are able to read the remaining one hundred metered connections (level 3 to 5) within one day.

The operator fills in the meter reading in the customer card as well as in his own log book. The customer confirms the reading with his signature. The customer card is the bill and has to be presented for the payment. The monthly bills have to be paid within the first half of the following month at the payment counter of the company.

Once this procedure had been implemented, timely payment of due bills increased and is now acceptable.

Reading and billing data are directly entered in the statistical records. This record is an important management tool for the company.

9.2.3 Revenue

As decided by the board of directors of the company, tariffs shall recover the full running costs of the company as well as the depreciation, whereas provisions for the Emergency Fund and Renewal Fund may only be made when the target connection number of 750 connections is realized.

9.3 People's Participation

As already mentioned, SCECO is set up as a public share company. Ad hoc committees have been nominated, representing every "supply area". Contacts, discussions and exchange of ideas are encouraged.

The relations between the company and its customers are very close and open.

Tariff revisions are discussed prior to the decision of the Board and the budget and accounts are accessible to the shareholders. The experiences gained in the tight cooperation with the shareholders show that people do understand that the Salleri Chialsa power plant is 'their own' electricity utility.

10. Conclusions

The installation of small hydro power plants in the geologically and topographically difficult areas of the Himalayas is financially, technically and logistically challenging and feasible; Prior to the transfer of experiences and know how from outside, an assessment of the local cultural, ethnic and socioeconomic environment must be made;

A close contact to the local population and its representatives avoids m any serious problems; To manage and operate an electricity utility, conceivable regulatory frameworks and guide lines must be strictly applied in day-to-day business. All staff must strictly follow the regulations to create the basis of good cooperation between the customers and the company. Every decision is based on a clear and understandable policy.

Tariff structures must be as simple and transparent as possible and closely related to the real costs and Asks (equipment: reliability, availability..., operation: load management, maintenance... and administrative procedures: meter reading, billing...).


Fig 2 Development of the energy consumption for the different levels 1-5 (Nepal) years mid 2046-48)


Fig 3 Production figures (Nepal) years mid 2046-48)


Table 6 Development of the number of connections, power consumption and energy prices for the different levels 1-5 (Nepal) years mid 204648)


Table 7 Detailed figures for the energy production/consumption (Nepal) years mid 2046-48)

Part 1

BRIDGER, Gordon and J.T. Winpenny
Planning Development Projects: A Practical guide to the Choice and Appraisal of Public Sector Investments, ODA, 1983

DUNSHEATH,
Percy A History of Electrical Engineering, Faber Editions, 1962

ELSENHANS, Hartmut and Harald Fuhr International and National Development Administrations, Development Theories, and Small Enterprise in LDC's: An Overview of Current Research, in Administrations and Industrial Development, Elsenhans and Fuhr, eds., National Book Organization, 1991

KIGGUNDU, Moses N.
Managing Organizations in Developing Countries, Kumanan Press

KORTEN, David C.
International Assistance: A Problem Posing as a Solution, IRED-Forum, No. 41, Oct-Dec 1991, p. 71

PANOS
Towards Sustainahle Development, The Panos Institutc, 1987

RONDINELLI, Dennis A.
Development Projects as Policy Experiments: An Adaptive Approach to Development Administration, Methuen, 1983

SALAM, Muhammed Abdus
Science, Technology and Science Education in the Development of the South, The Third World Academy of Sciences, May, 1991

SCOTT, Andrew
Power and People: Aspects of Micro-Hydro in WATERLINES, V10 N2, October, 1991

SHRESTA, Ram Shrestha and Kiran Man Singh
Improved Ghattas in Nepal in Appropriate Technology, V16 N3 December, 1989

SMILLIE, Ian
Mastering the Machine, IT Publications, 1991

STARKEY
Perfected Yet Rejected, GTZ/GATE, 1988

TURVEY, Ralph, and Dennis Anderson
Electricity Economics: Essays and Case Studies, lohns Hopkins University Press, 1977

UNDP/ESCAP/FAO
A New Approach to Energy Planning for Sustainable Rural Development, FAO Environment and Energy Paper No. 12, FAO, 1990

WALTHAM, Mark
Micro-hydro for Rural Energy in Nepal in Appropriate Technology, V 18 N3, Dec. 1991

Part 2

BRAZIL, J.,
Dublin Institute of Technology
Development of a stand alone induction generator for low cost micro hydro systems in Small Hydro 1990, 4th Intematiomal Conference on Small Hydro, published by Water Power & Dam Construction

CHAPALLAZ, J-M.,
Dos Ghali 1., Eichenberger P., Fischer G. Manual on Induction Motors used as Generators, GTZ/GATE, 1992

WIDMER, R.
Product Informahon - Electrical Machines (< 100 kVA), SKAT, 1992

Part 3

SHRESTHA, R.B., Pradham P.M.S.
State of the Art of Small Hydropower Development in Nepal, WEC energy workshop, Kathmandu, Nepal,
1985

EYSBERG, P.
A Feasibility Study on Load Controlfor Micro Hydro Power in Nepal, University of Turente, Netherlands, 1985

EBNER, P.
Electrical Equipment of Mini Hydro Power Plants, UNIDO Workshop on mini hydro power development, Vienna, Austria, 1987

Parts

WILD, J., Peyer Corporalion
Erdungsvademecurn, Dimensionierung und Messen von Erdungsanlagen, Peyer Corporation, Switzerland

Part 6

HOLLAND, H. Farr
Transmission Line Design Manual, A Water Resources Technical Publication, United States Department of the Interior, Water and Power Resources Service Denver, Colorado, 1980

Design Standards, Transmission Structures No. 10, Chapter 3, Distribution and Transmission Line Standard Drawings (2 Volumes), United States Departmcut of the Interior, Burcau of Reclamation, Engineering and Research Centre Denver, Colorado

LEYLAND, B., Leyland Consultants Ltd
A Low Cost Rural Distribution System Using Single Wirc Earth Retum, Leyland Consultants Ltd, 100 Anzac Ave., Box 1859, Auckland, New Zealand

Part 7

ITDG & Ceylon Electricity Board
MICRO-HYDRO POWER Training Course, Design Guide Part 1, written by the Dept. of Mechanical Engineering, Edingburgh University, edited by Harvey A. and Brown A. for ITDG, Sri Lanka, 1991

Part 8

FINCK, H., Oelen G., GTZ
A Guide to the Financial Evaluation of Investment Projects in Energy Supply, GTZ Eschborn BRD 1985,
Schrirenreihe GTZ, No. 163

GOWEN, Marcia M., Wade Herben A.
Renewable Energy Assessments, An Energy Planner's Manual, Pacific Island Program/ Resource Systems Institute, East West Centre, Honolulu, Hawaii, USA 1985,

Part 9

ITECO
SELUP 11, Salleri Electricity Utilization Project. The Salleri Chialsa venture in Nepal, an article for SKAT by ITECO AG Affoltern, Switzerland, 1991

Part 10

VAIDYA, S.L., BYS
Governing/Electrical Control, Protection and Instrumentation, Report for SKAT, 1989

OETTLI, B., BYS
Namche Bazar MHP, the Supplier's Final Report, BYS, Kathmandu

OETTLI, B., BYS
Establishing BYS in the Small Hydro Business, BYS, Kathmandu

BYS Syangja MHP, Manual for Operation, Maintenance & Trouble Shooting, BYS, Kathmandu

BYS Chame MHP, Manual for Operation, Maintenance & Trouble Shooting, BYS, Kathmandu

Part 11

ITECO
SELUP 11, Salleri Electricity Utilization Project. The Salleri Chialsa venture in Nepal, an article for SKAT by ITECO AG, Affoltem, Switzerland, 1991

ABBREVIATIONS AND GLOSSARY

AC
Altemating Current

ACSR
Aluminum Conductor, Steel Reinforced

Al
Aluminum

APFC
Automatic Power Factor Correction

BYS
Balaju Yantra Shala (p) Ltd, mechanical workshop, Kathmandu, Nepal

C
Capacitor
Cu
Copper

DC
Direct Current depreciation

In accounting: an allowance for the fact that fixed assets (plant and machinery) wear out or become obsolete

discounting reduction in the value of a future payment calculated at a given interest (discount) rate to establish its present value discounting factor

factor for calculating the present value of a single future payment accounting for the time and a given interest (discount) rate

FAO
United Nations Food and Agricultural Organization

HBC
(fuse) High Breaking Capacity

HMG
His Majesty's Government

HV, HT
High Voltage, High Tension

internal; external financing provision of finance within a company to permit the adoption of an investment ;securing of financial resources from outside a company to meet capital requirements

ITDG
Intermediate Technology Development Group

ITECO
Company for International Technical Cooperation and Dcvelopment of Switzerland

L
Inductance

LV, LT
Low Voltage, Low Tension market interest rate the commercial interest rate prevailing in capital markets

MHPG
Mini Hydro Power Group
pf
Power Factor

PLC
Programmable Logic Controller

SATA
Swiss Association for Technical Assistance, today SDC/ Helvetas

SCECO
Salleri Chialsa Electricity Company Ltd.

SDC
Swiss Development Cooperation

SELUP
Salleri-Chialsa Electrification and Utilisation Project service life period during which an investment facility will be used up economically. The service life can be shorter than the technical life, however, they are usually assumed to be equal.

SHDP
Small Hydel Development Board, Ministry of Water Resources & Power

SHP, MHP, PHP
small, micro and pico hydro power which is defined by the power (approx. 100-1 000, 10-100 and 1-10 kW respectively).

SKAT
Swiss Centre for Development Cooperation in Technology and Management
technical life maximum period during which plants or components can be technically operational

Unesco
United Nations Educational Scientific and Cultural Organisation.

X
Reactance

Z
Impedance

Electrification is no longer an engineering or technical problem. This part of the job has been solved all over the world a thousand times throughout the last hundred years and can now be adapted as needed. Electrification is a development of a society/community; using electricity is a way of life and needs adjustments of the people. They must be ready and open to learn and participate, have confidence and commitment.

Available electrical energy offers potentials for growth. For instance rural electrification can complement and transform rural economies. Successful rural electrification, however, is more likely in areas with at least moderate economic activity, there is little evidence to suggest that rural electrification in itself can initiate economic activity.

This book, although rather technical, tries to keep this in mind. In its first part it identifies the 'Energy Entrepreneurs' and 'Machine Makers' as the key to using market mechanisms to promote rural electrification in developing countries.

The following parts list in different articles some technical aspects of electrification. The technical descriptions follow the energy flow through the electrification scheme, starting with the generator and ending with the distribution system at the consumers' connection. It is assumed that the energy source and the primemover are chosen. This might be a MHP (Micro Hydro Power) system, and we will mostly refer to this option, but also a diesel engine or a solar or wind "farm" or simply a link to an already existing power grid is possible.

The next parts discuss commercial, financial and legal aspects emphasizing order and tender procedures, developing tariff structures and defining legal terms for a connection policy respectively.

Finally some weight is given to experiences gained in Nepal with electrification projects. The 'Salleri Chialsa Venture' is described detailed with emphasis on the legal setup of the SCECO, the Salleri Chialsa Electricity Company.

TO PREVIOUS SECTION OF BOOK

CD3WD Project Donate