RERL Final APR 2017-final for signature[1] · initiated the construction of 2 mini hydropower projects with a total capacity of 0.4 MW that will benefit more than 4,500 rural households

December,2017 ANNUALPROGRESSREPORT

PROJECTPROFILE

AbouttheProject GeographiccoverageoftheprojectProject Title: Renewable Energy for RuralLivelihood

AwardID:76958

Weblink:www.aepc.gov.np

Nationallevelcoverage(Yes/No):Yes

NumberofRegionscovered:NA

NumberofDistrictsCovered:NA

NumberofMunicipalitiesCovered:NA

NumberofVDCsCovered:NA

StrategicResultsUNDPStrategicPlanOutcome:Growth&developmentareinclusiveandsustainable,incorporatingproductivecapacitiesthatcreateemploymentandlivelihoodsforthepoorandexcludedUNDPStrategicPlanOutput:Inclusiveandsustainablesolutionsadoptedtoachieveincreasedenergyefficiencyanduniversalmodernenergyaccess(especiallyoff-gridsourcesofrenewableenergy)UNDAFOutcome2:VulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotectionUNDAF/CPAPOutput2.4:VulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservicesUNDPOutput2.4.1.AEPC'scapacityenhancedforscalingupenergyservicesintheruralareas

ProjectDuration(day/month/year)

ImplementingPartner(s) ImplementationModality

StartDate:21July2014EndDate:30June2019

1.MinistryofPopulationandEnvironment,GovernmentofNepal

2.AlternativeEnergyPromotionCentre(AEPC)

NationalImplementationModality(NIM)

ProjectBudget(USD)UNDPContribution:USD2,000,000GovernmentContribution:USD30,312,500OtherContributions:USD24,249,600DonorContributions:

Donor1:USD3,000,000(GEF)Donor2:USD378,000(Norwegian)Donor3:USD99,269(Korean)

Unfunded:USD244,930TotalProjectBudget: USD35,312,500(NPR3,813,750,000)TotalProjectExpendituretill2017: USD1,296,529Budget2017: USD1,321,520Expenditure2017(GEF&UNDPonly): USD1,276,596BudgetUtilization%(2017) 97%

Name:SatishGautam Name:RamPrasadDhitalProjectManager Executive-ProjectBoardDate: Date:


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TABLEOFCONTENTCONTENT PAGENO

Abbreviation 3

ListofTables 4

1. EXECUTIVESUMMARY 5

2. BACKGROUNDANDRATIONALE 6

3. PROJECTSUMMARYANDOBJECTIVES 6

4. PROGRAMMATICREVISIONS 8

5. NARRATIVESONKEYRESULTSACHIEVEDIN2016 8

5.1ProgresstowardtheUNDAF/CPAPOutcomes 13

5.2 ProgressonProjectOutputs 25

6. BUDGETANDEXPENDITURE 44

7. CROSSCUTTINGISSUES 45

7.1 TargetingandVoice/Participationoftargetgroups 45

7.2 Genderequality,Women’sempowermentandSocialInclusion 45

7.3 NationalCapacityDevelopment 46

7.4 Sustainability 46

7.5 South-SouthandTriangularcooperation 47

7.6 Partnership 47

7.7 Promotionofcivicengagement 48

7.8 ExpandingOpportunitiesforYouth 48

7.9 Innovation 48

7.10 KnowledgeManagementandProducts 49

8. LESSONLEARNED 49

9. IMPLEMENTATIONISSUESANDCHALLENGES 50

10. PRIORITIESFOR2018 51

11. ASPECIFICSTORY 52

12. ISSUESANDRISKLOGS 53

13. PROGRESSAGAINSTANNUALWORKPLAN 57

14. ANNEX 66

• Annex1:ListofMicroHydroInstalledin2017

• Annex2:ListofISPVin2017underReliefandRehabilitation

• Annex3:ListofInstalledSolarPVin2017

• Annex4:ListofPhotoVoltaicPumpingSystemInstalledin2017

• Annex5:PhotoGallery


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ABBREVIATIONAEPC : AlternativeEnergyPromotionCentreBFI : BankingandFinancialInstitutionsBoA : BusinessOpportunitiesAssessmentCAA : CountryActionAgendaCREF : CentralRenewableEnergyFundCoP : ConferenceofPartiesDDC : DistrictDevelopmentCommitteeDEECCS : DistrictEnergyEnvironmentClimateChangeSectionDEMP : DistrictEletrificationMasterPlanDFS : DetailedFeasibilityStudyNRREP : NationalRenewableRuralEnergyProgrammeSHS : SolarHomeSystemSPV : SpecialPurposeVehiclePPP : PublicPrivatePartnershipUNDP : UnitedNationsDevelopmentProgrammeGEF : GlobalEnvironmentalFacilityGESI : GenderEqualityandSocialInclusionGIS : GeographicInformationSystemICS : ImprovedCookingStovesIGA : IncomeGeneratingActivitiesISPV : InstitutionalSolarPhotoVoltaicIP : InvestmentProspectuskW : KilowattMEP : MunicipalEnergyPlanMHP : MicroHydroPowerMSME : Micro,Small&MediumEnterprisesMQAU : MonitoringandQualityAssuranceUnitMW MegawattNEA : NationalElectricityAuthorityNPC : NationalPlanningCommissionPEUC : ProductiveEnergyUseComponentPPA : PowerPurchaseAgreementPOV : PowerOutputVerificationPV : PhotoVoltaicRERL : RenewableEnergyforRuralLivelihoodRET : RenewableEnergyTechnologySASEC : SouthAsiaSub-regionalEconomicCooperationSDG : SustainableDevelopmentGoalSEforALL : SustainableEnergyforALLSPV : SpecialPurposeVehicleUNDAF : UnitedNationsDevelopmentAssistanceFrameworkUNESCAP : UnitedNationsEconomicandSocialCommissionforAsiaandthePacificVDC : VillageDevelopmentCommitteeWB : TheWorldBank


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LISTOFTABLES

TABLENO. TITLE PAGENO

Table1: OutcomeandOutputStatements 11

Table2: ProgresstowardstheUNDAF/CPAPOutcomes 13

Table3: ListofMiniHydroProjectsunderconstruction 18

Table4: ListofMiniHydroProjectsonline 18

Table5: ListofSolarPVSystems

20

Table6: RESystemssupportedbyAEPCandRERLunderreliefandrehabilitation

21

Table7: ProgressonOutputIndicators

25

Table8: Outputwiseannualbudgetandcorrespondingexpenditure

44

Table9: SourcesoffundsBudgetandUtilizationoftheprojectperiod 44

Table10: M&EExpenditure:In2016,ProjectspendonM&Eactivities

45

Table11: RiskLogMatrix 53

Table12: IssueLogMatrix 56

Table11: ProgressAgainstAnnualWorkPlan2017 57


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1. EXECUTIVESUMMARY RenewableEnergyforRuralLivelihood(RERL)issupportingAlternativeEnergyPromotionCenter(AEPC)toremovebarriersforscalinguprenewableenergysystemssuchasminihydro,largemicrohydroandlargesolarphotovoltaicsystems(PV).RERLwasdevelopedasanintegralpartofAEPC’sumbrellaprogramme,theNationalRuralRenewableEnergyProgramme(NRREP),withtheaimtoaddressgapsinNRREPrelevanttopromotingmini-hydroandlarge-scalesolarPVprojects.RERL through its well-designed interventions has been successful in formulating policy instruments,developingdemonstrationprojects, introducing innovativewaysofengagingprivatesectorand fosteringpublicprivatepartnership.Thecumulativeimpactoftheseactivitieshaveresultedinelectricityaccessto17,590households,rehabilitationof5,995microhydropowerplantsdamagedduringthe2015earthquake,andsupporttoAEPCfortheinstallationof11,695microhydropowerplants.Inthechangedfederalcontext,RERLprovidedcriticalsupporttodefinetheroleandresponsibilitiesoflocalgovernment,whichareclearlydefinedintherecentlypromulgatedLocalGovernmentOperationsAct2017.BuildingontheAct,RERLiscurrentlyworkingwith2municipalitiestopreparetheirintegratedMunicipalEnergyPlans(MEP),helpingthemidentifytheirenergyprioritiestobeconsequentlyplannedandbudgetedinperiodicplans. Inaddition,RERLhasextensivelyhelpedAEPCtore-alignitsroles,responsibilitiesandmandatesinthechangedfederalcontext.RERLhassupportedAEPCandNepalElectricityAuthority(NEA)todevelopandadopttechnicalstandardsforgridconnectionofMicroHydroPower(MHP)andsolarPVsystems.Basedonagreedtechnicalstandards,NEAhassignedPowerPurchaseAgreements(PPA)oftwomicrohydropowerplantsforgridconnection.Inthesamecontext,withRERL’stechnicalassistance,the23kWSyaurebhumiMHPinNuwakotsuccessfullysynchronizedwiththenationalelectricitygrid,thefirstgridinterconnectionofaMHPoflessthan100kWandanunprecedentedexampleofmicrohydropowerplantscontributingtoruralelectrificationandboostingruralincomegeneratingcapacities.Similarly,thegridinterconnectionofLeguwaKholaMHPinDhankutaison-going. RERL also provided technical and financial assistance to Surya Power Company to connect its1000kWsolarPVsystemtothegrid.Furthermore,RERLalsopreparedguidelinesandmodalitiesinvolvingprivatecompaniesinminihydrodevelopmentthroughPublicPrivatePartnership.InordertodemonstratefinancialandtechnicalviabilityoflargerREsystems,RERLsupportedAEPCandtheADB-supported South Asia Sub-regional Economic Cooperation (SASEC) project to promote largemicrohydro,minihydro,microhydrointerconnectedminigridandlargesolarsystems.In2017,RERLandSASECinitiatedtheconstructionof2minihydropowerprojectswithatotalcapacityof0.4MWthatwillbenefitmorethan4,500ruralhouseholds.RERL provided technical and financial assistance to install a solar PV back-up system at the Snake BiteTreatmentCentersinNepalArmyBarracksatLetang(Morang),Itahari(Sunsari)andChariali(Jhapa).The1.5kWindividualsystemsprovideelectricitytoensureundisruptedpowersupplyforrefrigeratorsstoringlife-savingsnakevenomvaccinesthatneedtobestoredbetween2˚and8˚C,alongwithpowerfans,lightsandnebulizers.RERLisalsoassistingAEPCforcommercialoperationofMHPindifferentpartsofthecountry.InDolakhaandBaglungdistricts,RERL is assisting communities to formcooperatives for sustainableoperationandmanagementoftheirrehabilitatedMHPs.Likewise,the83kWDarnaMHPinAchhamdistrictisalsobeingsupportedforcommercialoperation.TheinnovativeideaistoorientthecommunitiestotaketheirMHPasaprofit-makingassetandtoimproverevenuegeneration.ForincreasingtherevenueoftheMHPs,RERLhasbeenworking closelywith the Productive Energy Use Component of AEPC to promotemicro and smallenterprisesutilizingavailableelectricity.Sofar,1,182enterpriseshavebeenestablishedwithAEPCsubsidy,


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318 of which received direct technical support from RERL. To ensure that women and men frommarginalizedgroupsbenefitfromaccesstoelectricity,AEPChasprovidedanadditionalsubsidytoestablishenterprises.RERLhasbeenfocusingonenhancingcapacitiesandskillsofvariousstakeholdersintheREsector,primarilysystemdesigners,fabricators,installersandoperators.Astheserviceprovidersaremainlyfromtheprivatesectors, theircapacitybuildinghasactivelypursuedbyAEPCandRERLthroughclassroomandhandsontraining, orientation and study tours. In 2017, RERL providedMicro Hydro Operators’ Trainings for 51operators locally. Decentralizing training programs has drastically reduced the cost of travel andaccommodationwhilealsoensuringmorehands-ontrainingandPeer-to-Peer(P2P)learning.Similarly,51womenentrepreneursfromEasternandMid-WesternRegionswereprovidedtrainingtoimpartknowledgeonbusinessmanagementparticularlyonentrepreneurship,bookkeepingandmarketingoftheirbusinesses. 2. BACKGROUNDANDRATIONALE

Over85%ofthepopulationofNepalhasaccesstoelectricity.However,inruralareas,itisonly60%.Mostofthe households in the country receive electricity from the national grid and about 15% from off-gridrenewableenergysourcessuchasPicoHydro(<10kW),MicroHydro(10to100kW)andSolarHomeSystems(SHS).ThoughthereisahugepotentialforMiniHydro(>100kW),veryfewprojectshavebeendevelopedinthecountryinrecentyearsduetotechnicalandoperationalchallenges. Inareaswithoutsufficienthydroresources,largersolarPVsystemswouldprovidemuchmorepotentialforeconomicgrowthcomparedtoSHS.TheGovernmentofNepal (GoN)envisagesprovidingcleancookingand lightingsolutions toallby2030,whichisalsoaSustainableDevelopmentGoal(SDG7)andSustainableEnergyforAll(SEforAll)target.Thegoal expected to achievewith both on grid and off grid solutions. GEF-UNDP RERL has been providingtechnical support to AEPC to promote mini/micro hydro and large Solar PV Systems apart from thepromotionofminigrid,productiveenergyusesandestablishingamechanismforprojectdevelopmentunderaPublicPrivatePartnership(PPP)modality.3. PROJECTSUMMARYANDOBJECTIVES

TheRenewableEnergyforRuralLivelihood(RERL)projectisfundedbyGlobalEnvironmentalFacility(GEF)andtheUnitedNationsDevelopmentProgramme(UNDP).RERLhasbeendevelopedasanintegralpartofAlternativeEnergyPromotionCentre(AEPC)’sNationalRuralandRenewableEnergyProgramme(NRREP)and thus, has been assisting in fulfilling its ambitious targets. AEPC and donors have adopted a singleprogramme framework. Thus, the NRREP represents the collective baseline activities in the country onrenewableenergy.ThespecificRenewableEnergy(RE)relatedcomponentsofthatprogramme,particularlyonMini/Micro Hydro and large solar PV systems are included in the GEF-UNDP RERL project baselineactivities.ThemainobjectiveofRERListosupportAEPCtoremovebarriersforscalingupinterventionthatpromotelesserdisseminatedlargerrenewableenergysystemssuchasminihydro,largemicrohydroandlargesolarPVsystems.RERLhasbeensupportingthedevelopmentofsustainableimplementationmodalitiessuchasdemonstrationprojects,privatesectorinvolvementforfinancingandattainmentoffinancialsustainabilitythroughpromotionofproductiveenergyuses.RERLhasbeenproviding technicalassistance todevelopmini/microhydropowerprojectswith the totalinstalledcapacityof10MWandLargeSolarPVSystemsof2.5MW.Amongthis,RERLhasdirectlysupportedbeneficiariestodevelop1MWofminihydroand0.5MWofsolarPVasdemonstrationprojects.


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TheoryofChange

Nepalhasmadesignificantachievementsindevelopingisolatedmicrohydro(lessthan100kWwithaveragecapacityof30kW)andsolarhomesystems.About15%ofthecountry’spopulationgettheirelectricityfromthesetwosources.Ontheotherhand,Nepalhasalsodevelopedlargerhydropowerprojects(>1000kW)tofeedintothenationalgrid.However,intermediaterenewableenergysystemswithcapacitybetween100-1000kWarelimited.RERLwaslaunchedbyGoN,GEFandUNDPtoremovethebarriersinpolicy,financing,sustainabilityandcapacitytopromotelessdisseminatedtechnologiessuchasminihydro(>100-1000kW), largemicro hydro (>60-100kW), large solar PV (mini grid, institutional and pumping) and mini gridsinterconnectingseveralmicrohydropowerplants.The Constitution of Nepal 2015 envisaged a three-tiered federal governance structure includingfederal,provincialandlocalgovernments.Theconstitutionmandateslocalgovernmentstodeveloprenewable energy (RE) andhydropowerprojects up to 1000kW. In this regard, AEPCwithRERLdrafted roles and responsibilities of different levels of governments for RE, which has beenincorporated in the recently promulgated Local Government Operation Act 2017. However, localgovernments have limited technical and managerial capacities to effectively carry out their rolesrelatedtoRE.Inthisline,RERLhasdraftedamethodologyfortheMunicipalEnergyPlan(MEP),whichassessesenergysupplyanddemand,andidentifiesfinanciallyfeasibleoptionstomeettheSDG7targetofreliableandaffordablecleanenergysolutionsforlightingandcookingforall.MEPwillfurtherhelpmunicipalitiestoprioritizeprojectsandallocateresourcesaccordingly.Itisexpectedthatremovingbarriers in policyand institutional arrangementswillhelppromoteminihydro and large solarPVsystemsbyattractingprivateinvestment.Furthermore,RERLhaspreparedguidelinesandmodalitiesto involve private companies in mini hydro development through Public Private Partnershiparrangement by forming Special Purpose Vehicle, which has been recognized by the RenewableEnergySubsidyPolicy2016,pavingthewayforprivatesectorinvolvementinthedevelopmentofREprojects.OneofthemainbarriersforattractingprivateinvestmentinREprojectsinruralareasistheperceivedhighrisksofcommunityownedandmanagedsystemsbyBankingandFinancialInstitutions(BFIs).RERLandCentralRenewableEnergyFund(CREF)havedevelopedinnovativefinancingmechanismssuchassoftcredit,creditguarantee,vendorfinancingandcreditinsurancetoreducetherisksofBFIsinREinvestments.AnothermajorreasonforthelackofprivateinvestmentinREsectorislowreturns.To enhance revenue generation from RE projects, RERL has been working closely with AEPC todevelop mechanisms for promotion of productive energy uses. Moreover, RERL has also beensupporting women and marginalized communities to benefit from electricity by establishingenterprisesandincomegeneratingactivitiesandswitchingfromfirewoodtoelectricityforcookingandotherhouseholdenergyneeds.RERLhasbeenworkingwithAEPCtopromotedemonstrationprojectsthataretechnicallyviableandfinanciallyattractiveforprivateinvestment.AEPC,RERLandCREFhavebeeninteractingextensivelywithBFIsandprivatecompaniestoattractinvestmentinminihydro,minigrid,largemicrohydroandlargesolarPVsystemsindifferentpartsofthecountry.RERLplanstosupportcapacitybuildingoftheprivatesectorfordevelopmentofin-countryexpertiserelatedtothesetechnologiessothataftersalesservicesarereadilyavailable.Oncedemonstrationprojectiscompleted,andit isexpectedthattheprivatesectorwillseethebenefitsininvestinginrenewableenergyinruralareas.


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4. PROGRAMMATICREVISIONS-NA

5. NARRATIVEONKEYRESULTSACHIEVEDIN2017

Deliveringrenewableenergysolutionstoimprovelivelihoodandconservetheenvironment,RERLprojecthasbeeninstrumentalinprovidingtheneededtechnicalassistancetoAEPCinrehabilitationwork,policysupport, demonstration of new pilots/solutions, productive energy use promotion and capacityenhancement.

PolicyandInstitution:RERLhasbeenworkingwithAEPCtoformulatepoliciesforrenewableenergypromotioninthecountry.Inthechangedcontextoffederalism,RERLprovidedcriticalinputstodefinerolesandresponsibilitiesofthelocalgovernmentwhichwereclearlyenshrinedintherecentlypromulgatedLocalGovernment Operations Act 2017. Building on the Act, RERL has currently been working with 2municipalities–PalungtarMunicipality,GorkhaandMahankalRuralMunicipality,Lalitpur-topreparetheirintegrated Municipal Energy Plans (MEP) with a focus on clean lighting and cooking solutions. ThemethodologytoprepareMEP,draftedbyRERL,hasbeenfinalizedwithinputsfromkeystakeholderslikemunicipalities, AEPC and partner organizations including GIZ and ICIMOD. The draft MEPmethodologyfocusedonprovisionofcleancookingandlightingsolutionforallby2030,energyforcommunityservicessuchashealthcentersandschoolsandenterprises.Themethodologyisexpectedtohelpidentifythebestsolutionsconsideringthelifecyclecostofdifferentrenewableenergytechnologies.TheRenewableEnergyfor Rural Areas (RERA) of GIZ will help selected municipalities in Provinces 1 and 7 under the sameframework.Hence,RERL’spilotinitiativeshavecontributedinmobilizingpartnerstopromulgatelocallevel

Fivekeyresultsachievedin2017

1. IntermsofPolicyandInstitution,theprojecthassupportedintheformulationofthefollowinghigh-leveldocuments:1.1. LocalGovernmentOperationAct20171.2. TechnicalGuidelinesandStandardsforgridconnectionofRETs1.3. MunicipalEnergyPlans

2. PrivateInvestmentinREProjects2.1. FinancialClosureofMiniHydroandSolarPVProjects2.2. CommercialOperationofMHPs

3. DemonstrationProjects3.1. ConstructionofMiniHydropowerProjects3.2. InstallationofSolarPVback-upinSnakeBiteTreatmentCenters3.3. GridconnectionofRETs

4. CapacityDevelopment4.1. CapacityEnhancementofAEPC4.2. DecentralizationofTraining

5. WrappingupofReliefandRehabilitationActivities


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energy planningmechanisms, thus contributing towards achievement of national targets of SustainableDevelopmentGoal7-increasingthenumberofpeoplewithaccesstoenergy.Likewise,RERLhasextensivelyhelpedAEPCtoreconfigureitsroles,responsibilitiesandmandatesinthechanged federal context vis-à-vis provincial and local governments. RERL drafted detailed roles andresponsibilitiesoffederal,provincialandlocalgovernmentsbasedontheConstitutionofNepal2015,whichwereincorporatedintherecentlyenactedLocalGovernmentOperationAct2017.Toensure sustainabilityandwiderpromotionofRenewableEnergyTechnologies (RETs) in the country,RERLhassupportedAEPCandNepalElectricityAuthority(NEA)todevelopandadopttechnicalstandardsforgridconnectionofMHPandsolarPVsystems.NEAhassignedPowerPurchaseAgreements(PPA)withtwomicrohydropowerplantsbasedontheagreedtechnicalstandard,openingupopportunitiesformicrohydro and other renewable energy technologies for grid connection. Furthermore, RERL has preparedguidelinesandmodalitiestoinvolveprivatecompaniesinminihydrodevelopmentthroughPublicPrivatePartnershipsbyformingtheSpecialPurposeVehicle(SPV),whichhasbeenincorporatedintheRenewableEnergySubsidyPolicy2016,providingaccesstosubsidyfortheprivatesector.ItisexpectedthatremovingthisbarrierinpolicyandinstitutionalarrangementswillhelppromoteminihydroandlargesolarPVsystemswithprivateinvestment.

DemonstrationProjects:To demonstrate financial attractiveness and technical viability of larger REsystems,RERLhasbeenworkingwithAEPCandSASECtopromotelargemicrohydro,minihydro,microhydrointerconnectedminigrid,largesolarsystemlikeinstitutionalsolar,solarpumpingandsolarminigridandgridinterconnectionofRETs.In2017,constructionoftwonewminihydropowerprojects,withcapacityof 0.4 MW, were installed benefiting over 4,500 households with the support from RERL and SASEC.Likewise,RERLandAEPChavebeensupportingtwootherprojectswiththetotalinstalledcapacityof0.64MW,whichexpectedtobenefit2,800households.TheseprojectshavebeendevelopedunderPPPmodalitywith financial participation of the government, commercial banks and beneficiary communities. It isexpected that these projectswill not only generate enough revenue to hire professionals for day-to-dayoperationsbutalsopaybacktheirloansontime,reducingperceivedriskofinvestingincommunityownedrenewableenergysystemsinremotelocations.RERLprovided1.5kWpsolarPVbackupsystemsatSnakeBiteTreatmentCentersinLetang,Morang,Itahari,Sunsari and Chariali, Jhapa. The system has been providing uninterrupted power supply to operaterefrigeratedstorage foranti-snakevenomvaccinesalongwith fans, lightsandnebulizers to improve thepublicservicebeingprovidedbytheCenters.Onaverage,morethan1,500snakebitecasesaretreatedbythecenterseveryyear.Acknowledgingtheremarkableimpactthissolarsystemhashadinreducingsnakebitecasualties due to disrupted services, AEPChas planned to replicate themodel by supporting PV backupsystemin25SnakeBiteTreatmentCentersinthecomingfiscalyear(2018/19).The23kWSyaurebhumiMHPinNuwakothassuccessfullybeensynchronizedwiththenationalelectricitygrid,whichisthefirstgridconnectionoflessthan100kWcapacitythussettinganunprecedentedexampleofhowmicrohydropowerplantscancontributetothegrid,therebymutuallybenefitingtheoverallgridandthe community’s income generating capacities. The 23 kW Syaurebhumi and the 40 kW Leguwa Khola,DhankutaMHPshavealreadysignedPowerPurchaseAgreementwithNEAwhereAEPCprovidedfinancialsupportforelectricalequipmentwhileRERL’sfinancialsupportforcivilworksenabledinterconnectionofthetwosystems.Thesetwoprojectshavebeenselectedforgridinterconnectionasthegridencroachedtheircatchmentsimmediatelyaftercommissioning.RERLprovidedtechnicalandfinancialsupporttoSuryaPowerCompanytoconnectits1000kWsolarPVsysteminNawalparasidistricttothegrid.ThisisthefirsttimeinNepalwhereacaptivegenerationsolarplanthasbeengridconnectedthusunfoldingpreviouslyuntappedenergysourcecontributingtoachieving


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national SDG7 target of increasing the number of grid connected solar PV systems (Indicator 7.2.1.3 ofnationalSDGtargets).Private Investment in RE Projects: CREF, with RERL support, has established innovative financialinstrumentssuchassoftcredit,creditguaranteeandinsurancetoreducetherisksofBFIstoinvestinREprojects.With theprovisionof credit guaranteemechanisms,RERLandSASEChavebeenable to realizefinancialclosureoftwominihydropowerprojectsthroughcreditfromcommercialbanksamountingtoNPR26 million1. Similarly, CREF has been supporting Sahara Nepal Cooperative (SNC) in eastern Nepal topromotedomesticsizesolarwaterpumpswithprivateequityandmicro-financelendingforbothdomesticpurposeandirrigatingkitchengardens.11suchpumpshavealreadybeeninstalledwithatotalinvestment(equalamountofequityandcredit)ofoverNPR600,000.AccordingtoSNC,thereisincreaseddemandforsmall scalesolarpumpsafter thedemonstration.Hence,CREFhasbeenworkingwithSNCandotherco-operativemicrofinancecompaniestodeveloploanproductstoservethedemand.To demonstrate financial viability of MHPs, RERL has been supporting 20 MHPs in five districts forcommercial operation wherein the micro hydro is seen not only as a social infrastructure but also acommercially feasible enterprise. RERL support includes communitymobilization, institutionalization ofMHPsandendusepromotion.AfterRERLintervention,themonthlyrevenuecollectionof83kWDarnaMHPinoneofthemostremotedistrictsofNepal(Achham)hasincreasedfivefoldsfromameagreNPR25,000.This interventionalso showed thatwithmore reliable services, customerswerewilling topay increasedtariffs.Capacity Development: RERL has been working with various stakeholders to enhance capacities topromote,develop,operateandmanageREsystemsensuringGenderEqualityandSocialInclusion(GESI).RERLhasbeendesignedtoassistinbuildingupAEPC’scapacityforwidescalepromotionoflargerRETs.BesidesupportforpolicyandinstitutionalstrengtheningofAEPC,RERLhasprovidedextensiveinputsinthedesignandformulationofGIZ fundedRERAandanupcomingDFIDsupportedprogramme.Furthermore,RERLandUNDPhavebeensupportingAEPCtogetaccreditedGreenClimateFund(GCF).Anothermajor intervention of RERL in 2017was to decentralizeMHP operator andmanager trainings.Previously, all such trainings were organized in Kathmandu which were very expensive and had noprovisions for peer-to-peer (P2P) learning. RERL organized two trainings in Babiyachaur, Surkhet;technically facilitated byMHP expert and twoMHP operators whereas facilitation onmanagement wasprovided byRERL personnel andMHPmanagement. The P2P learningwas appreciated by the trainees.Moreover,asthetrainingwasheldinruralsetting,thecostwasalmostreducedtohalf.ItishopedthattheBabiyachaurMHPwillgraduallybedevelopedasa trainingcentercateringtoMHPs intheMid-andFar-Western Regions. Promoting similar training centers in other regions will help decentralize RE-relatedtrainingsandminimizetheiroperatingcost.WrappingupofReliefandRehabilitationActivities:Afterthedevastatingearthquakesof2015,RERLhadprovisionedUSD 1million for relief and rehabilitation activities. RERL immediately provided 28mobilephonechargingsystemsinDolakhadistrict forquickrecoveryofcommunicationnetworkandconductedrapidassessmentofdamagesto140MHPsand45solarwaterpumpingsystemssupportedbyAEPC.RERLworkedcloselywithAEPCtopreparePostDisasterNeedsAssessment(PDNA)relatedtorenewableenergyfortheNationalPlanningCommission(NPC).Then,RERLfocusedonprovisionofelectricityforgovernmentoffices,healthposts,birthingcenters,schoolsandtemporarylearningcenters.Asaresult,installationof230institutionalPVsystemsandrehabilitationof56MHPswiththetotalinstalledcapacityofaround1.25MWweresupported,benefiting180,486households.

1 UN Exchange rate for December 2017 is $1=NPR 102.9


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GESI: RERL supported AEPC to formulate its productive energy use promotion modality which helpedwomenandmarginalizedcommunitiestobenefitfromaccesstoelectricitybyestablishingenterprisesandincomegeneratingactivitieswithprovisionofadditionalfinancialassistance.Untilnow,1,182productiveuseenterpriseshavebeenestablishedwithfinancialassistanceofAEPC;ofwhich1070areownedbymale,82 by female and 30 by community. These enterprises employ 2,955 people. Besides, AEPC has alsosupported 3,151 income-generating activities (IGA) benefiting 14,809 people from marginalizedcommunities.Followingtableshowsthelinkageofoutcomeandoutputstatementsoftheproject:

Table1:OutcomeandOutputStatements

OutcomeStatement OutputStatementUNDAF/CPAPOutcome2:Vulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotection

UNDAF/CPAPOutput2.4:VulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservicesUNDPOutput2.4.1.AEPC'scapacityenhancedforscalingupenergyservicesintheruralareas

ProjectOutcome1:Strengthenedlegal,institutionalandpolicyenvironmenttosupportREandotherlow–carbontechnologydevelopmentandutilization

Output1.1:ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructureOutput1.2:MethodologyanddatabasedevelopedandmadeavailableforincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplansOutput1.3:CompletedtrainingandawarenessprogrammeforrelevantgovernmentagenciesandstakeholdersonminihydroandlargescalesolarPVsystemsdevelopmentandproductiveenduse

ProjectOutcome2:IncreasedinvestmentinRE

Output2a.1:Commissionedminihydrodemonstrationprojectstotaling1MWthroughPPPmodelOutput2a.2:Commissionedminigriddemonstrationprojectstotaling300kWOutput2a.3:CommissionedlargescalesolarPVdemonstrationprojectstotaling500kWOutput2b.1:DemonstratedPPPmodelsfacilitatingcooperationbetweenprivatesector,publicsector,andlocalorganizationsthroughestablishmentofSpecialPurposeVehicles(SPV)inthreeselectedminihydroproject(1MW)Output2b.2:Demonstratedfinanciallysustainableandreliableminigridconnecting10microhydrosystems(300kW)Output2b.3:DemonstratedfinanciallysustainableandreliablelargescalesolarPVsystem(300kW)Output2b.4:Operationalized2MWofoff-gridlargemicrohydro(over60kW)powerprojectsdemonstratingcostadvantagefeasibility,productiveenduse,andbestpracticethroughtechnicalassistanceOutput2b.5:Completedfinancialclosureof7MWofoff-gridmini-hydropowerprojectsreplicatingPPPmodelthroughestablishment


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ofSPVs,demonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistanceOutput2b.6:Completedfinancialclosureof2MWoflargescalesolarPVsystems,demonstratingcostadvantageoversmallerPVsystems,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance

ProjectOutcome3a:ImprovedavailabilityoffinancialinvestmentsupportsforruralREandotherlow-carbontechnologyapplications

Output3a.1:EstablishedawholesalefinancinginstrumenttoincentivizeBankingandFinancialInstitutions(BFIs)forfinancingdomesticmanufacturerstomeetgrowingordersandbecostcompetitiveOutput3a.2:EstablishedawholesalefinancinginstrumenttoincentivizeBankingandFinancialInstitutions(BFIs)topromotecommercialfinancingformini-hydroandlarge-scalesolarPVprojects

ProjectOutcome3b:ImproveddesignandpackagingofinvestmentsupportmechanismsforruralREandotherlow-carbontechnologyapplications

Output3b.1:DesignedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturersOutput3b.2:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingformini-hydroandlarge-scalesolarPVprojectsOutput3b.3:Developedtrainingmaterialsonmini-hydroandlarge-scalesolarPVprojectsforfinancinginstitutionsOutput3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusersOutput3b.5:EstablishedfunctionalenterprisesadoptingproductiveuseofelectricityOutput3b.6:Operationalizedmechanismtopromotefinancialproductsforentrepreneurs/endusersOutput3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablished

ProjectOutcome4:EnhancedcapacitiesandskillofvariousstakeholdersintheREsector

Output4.1:Establisheddatabaseoftechnicalspecificationsforthedesign,manufactureofmicrohydro(60+kW)andminihydro,installationandaftersalesserviceinmicrohydro(60+kW)andlargescalesolarPVsystemsOutput4.2:Fullytrainedskilledandtechnicallycapablepeopleavailableforprojectidentification,feasibilitystudiesanddetaildesignofminihydroprojectsOutput4.3:Fullytrained,skilledandtechnicallycapableminihydromanufacturersinidentifiedareaswithaftersalesservicesOutput4.4:Fullytrained,skilledandtechnicallycapableconstructionandinstallationteamswithincompaniestoimprovequalityofinstalledminihydroprojectsandlargesolarPVsystemOutput4.5:Fullytrained,skilledandtechnicallycapablepeopleavailableforoperation,maintenanceandbusinessmanagementofminihydroprojectsandlargescalesolarPVsystems


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ProgresstowardstheUNDAF/CPAPOutcomes

Table2:ProgressonOutcomeIndicators

Outcomestateme

nt

Outcome

indicator

Baseline

Cumulative

Targetfor

2013-2017

Totaltargetachievedtill2015

Milestonefor2016,ifany

Achievement2016

Milestonefor2017,ifany

Achievement2017 Yearforthelatestdata

Sourceofdata

UNDAFOutput2.4Vulnerablegroupshaveincreasedaccesstosustainableproductiveassetsandenvironmentalservices

# of

househ

olds in

remote

areas

connect

ed to

energy

services

(UNDA

F 1

#2.4.3)

59,172

househ

olds

25,000

HHs

connecte

dto

energy

services

24,159HHsbenefitted

(2013=11965,2014=

8351,2015=3843)

30 kW

solar PV

systems

installed

;600kW

rehabilit

ation of

earthqua

ke

affected

MHPs;

financial

closure

of 500

kW mini

hydro

complet

ed

53,898

househol

ds

benefited

from

energy

services.

Financial

closure of

200 kW

initiated.

50,000 HHs

benefited from

services

provided by

Public

Institutions

that have

access to

electricityafter

earthquakes.

(1) Altogether 17,690

households connected

toelectricityaccess

(5,995 rehabilitationof

MHP + 11,695 TA

support to AEPC for

installationofMHP)

(2)53,669HHsdirectly

benefited from

electricity access to

their Health post/

Birthing Centre,

VDC/DDC Offices,

Schools, Temporary

Learning Centers,

Snake Bite Treatment

Centers

(3) 400kW Financial

Closure of Mini Hydro

completed (200kW

Simrutu Khola, Rukum

+ 200kW Giri Khola,

Jumla)

2017 UNDP

Nepal

County

Progra

m

Action

Plan


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Highlightsof2017

ProgresstowardsOutcome1:Strengthenedlegal,institutionalandpolicyenvironmenttosupportREandotherlow–carbontechnologydevelopmentandutilizationOutcome 1: This outcome focuses on formulation of policies, institutional arrangement and capacitydevelopmentofgovernmentalagencies tocreateconducivepolicyenvironment forprivate investment inrenewableenergyprojects.TheprojecthassupportedtheGovernmentofNepal,specificallyAEPCindraftingtherolesandresponsibilitiesofFederal,ProvincialandLocalLevelgovernmentsrelatingtoalternativeandrenewableenergyinthechangedcontextof federalism.RERLhasalsobeenassistingthenodalagencyindefiningtheinstitutionalstructureofalternativeenergypromotioninthenewcontext.RERLhasbeenworkingwithgovernmentagencies,includingAEPCtobuildtheircapacitytodevelopminihydroandlargersolarPVsystems.RERLhasdraftedandissupportingtwomunicipalitiesnamelyMahankalRuralMunicipality,LalitpurandPalungtarMunicipality,GorkhatopilotthepreparationofMunicipalEnergyPlan(MEP).Themethodologyforpreparingtheplantoreplicateinothermunicipalities.Similarly,theprojecthashelpedAEPCtopreparevariousconcepts,standardsandguidelinestooptimizedesign,efficientservicedeliveryandpromoterenewabletechnologies.

ProgressonOutput1.1:ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructure RERL extensively supported the drafting of theRenewable Energy Subsidy Policy 2016, which opensopportunitiesforprivateparticipationinREdevelopment.Thepolicyspecificallydiscussesthepublicprivatepartnership(PPP)modelfordevelopingREprojectsinthecountry.Supplementingthisenablingpolicy,RERLhasalsobeenworkingwithCREFtodesignandoperationalizefinancialinstrumentssuchassoftcredit,creditguarantee,vendorfinancingandcreditinsurancetofosterprivatesectorconfidenceinREinvestments.

Outcome 1: Strengthened legal, institutional and policy environment to support RE and other low – carbon technologydevelopment and utilization

Outcome 2: Increased investment in RE

Outcome 3: Improved availability of financial investment supports for rural RE & other low-carbon technology application

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

• Local Government Operation Act – Renewable Energy in Federal Context

• AEPC re-positioning in the federal context

• Standards for Grid connection of RETs

• Workshop on Enabling Environment for Mini Hydro in Nepal

• Piloted Municipal Energy Plan in 2 Municipalities

• Grid connection of 23 kW Micro Hydropower Plant in National Grid in Nuwakot

• Financial assistance to connect a 1MWp solar plant to the national grid in Nawalparasi

• Installed 1506.2 kWp solar PV systems in solar mini grid, pumping & institutional solar system in schools/ learning centers & government offices

• Commercial Operation of 25 micro hydropower plants

• Co-operative strengthening & Micro Finance for Simrutu Khola Mini Hydro 83

• 83KW Darna Micro Hydropower Plant (MHP) run MHP as an Enterprise

• Enhanced capacity of 40 MHP Managers including two women for commercial operation of the Micro Hydropower plant

• Training for 46 Micro Hydro Operators

• 51 women entrepreneurs trained on business management


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RERLhassupportedAEPCtodeveloptheBestAvailableTechnology(BAT)modelforruralareas.BATisincluded in the approvedRE Subsidy Policy 2016 and SubsidyDeliveryMechanism to identify themostsuitableREalternativeforpoweringruralvillages.BATexaminestheenergyservicesrequiredataparticularlocationandidentifiestheleastcostoption.ThismechanismhasbeeninpracticeafteritwasapprovedbyMinistryofPopulationandEnvironment(MoPE)in2016.Communitymanagedsystemsusecommonresourcesanditsmanagementaffectedbysocial,political,andeconomicstructures insociety.Thequalityandreliabilityofenergysupply iskey to thesustainabilityoftechnologicaloptionsadoptedforenhancingenergyaccess.Thesustainabilityofthesystemanditseconomicviabilitydependsupontheamountofreturncontributingtolocallivelihoods.Inthisbackdrop,RERLandSEforALLarecollaboratingwithUniversityofNewSouthWales(UNSW),AustraliaincarryingoutastudytoprovidethebasisfordevisingsuitablepoliceandstrategiesforAEPCthatclearlyspellsoutthetieredenergyaccessconceptandprovidessupporttoruralcommunitiesandhouseholdstoengageineconomicactivitiesandhelpuplifttheirlivelihood.In2017,AEPCandNEAsignedanMoUandorganizedcoordinationmeetingstodiscusstheactivitiesrelatedtocollaborationbetweenthetwoorganizationsspecificallyrelatedtogridconnectionofREsystemswhileagreeinganddevelopingapplicablenationalstandards.AEPC/RERL,theDepartmentofElectricityAuthority(DoEA)andNEAhavebeenworkingtogethertoprepareguidelinesforaDetailedFeasibilityStudyofgridconnectedlargesolarPVsystemprojects.TheprojecthasalsodraftedStandardsandTechnicalSpecificationsforGridInterconnectionofMicroHydroPlants(MHP).Itisenvisagedthatthegridinterconnectionofmicrohydrowillensuresustainabilitysinceadditionalrevenuewillbegenerated.RERL supported Nepal Electricity Authority (NEA) to promotemegawatt (MW) scale projects in Nepal,providedtechnicalinputsforpreparingRequestforProposal(RfP),andbidevaluation,includingfinalizationoftheenergytablesofthesubmittedproposal.NEAplanstoaddover60MWofsolarPVprojectstoitssystemnearmajorloadcenterstoreduceload-sheddinghoursandreducedependenceonimportedelectricity.Inordertoorientenergysectoractorsparticularlymicrohydroinstallersandconsultingfirmsonprivatesector led Energy Service Company (ESCO) model, RERL supported Nepal Micro Hydro DevelopmentAssociation (NMHDA) to organize national workshop on “Public Private Partnership approach fordevelopmentofMini/MicroHydroandMicroUtilityModel”.Theworkshopprovidedimportantinsightontheneedandrelevanceoftheprivatesectorinminihydroprojectdevelopment,whichwillbeasignificantshiftfromthetraditionalcommunityownedandmanagedapproach.Untilnow,theprivatesectorhasonlyparticipatedasvendorsandsuppliersofequipmentandservicesinmini/microhydroprojects.Aftertheworkshop,someoftheNMHDAmembershavestartedworkingtoidentifysuitableprojectstodevelopwiththeirandbeneficiaries’equityalongwithgovernmentsubsidyandbankloan.Toencourageparticipationofmorevendors,RERLandSASECorganizedaone-dayinteractionprogrammeinButwal on7 July 2017. InformationonAEPC’s andADB’s procurement requirements disseminated toparticipants.Altogether13engineers, techniciansandmanagementpersonnelsfromdifferentcompanies,mainlymicrohydromanufacturersandinstallers,participatedintheprogramme.AsitevisittothePhawaKhola, Taplejung was also organized. As a result, of these efforts, 4 bids for supply of equipment andconstructionofthe500kWPhawaKholaMiniHydroProjectweresubmitted.Likewise,RERL/CREFandADBorganizeda ‘matchmaking’platform inearly2017 to showcasepotentialminihydroprojects toBFIs toattractprivatefinancing.RERL, in collaboration with Practical Action Consulting and United Nations Environmental Programme(UNEP),carriedoutacasestudyonMiniHydroperformanceinNepal.Thestudyconsidered:i)currentpolicyenablers,ii)stakeholdermappingthroughParticipatoryMarketSystemDevelopment(PMSD)Framework,iii)casestudiesof6MiniHydroand2SmallHydroProjects,andiv)aHouseholdSurveytoassessconsumer


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satisfaction. The studymade recommendations for private sector led development ofmini hydro in thecountryaswellaspostconstructionsupportrequiredforsmoothoperationoftheplants.Thestudyfoundthat the 400kW Salleri Chialsa Mini Hydropower Project (SCMHP) in the vicinity of Mount Everest inSolukhumbu district was the best managed project. RERL has prepared mini hydro operation andmanagementmanualbasedon theexperienceofSCMHPwith theexpectation thatgoodpracticeswillbereplicated in AEPC supportedmini hydro projects. In addition, the SCMHPmanagement team providedorientationtoprospectivedevelopersofAEPCsupportedminihydropowerprojectsonefficientoperationandmanagement. In2017,RERLalsosupportedCREF topreparedocumentsondeprivedsector lendingceilingforminihydroandorganizedmeetingswithNepalRastraBank(NRB)toamendtheceilinglimitfromNPR10milliontoNPR30millionleadingtomostminihydropowerprojectssupportedbyAEPCqualifyingforloansunderthisprovision.Thisalsoencouragesbankstoinvestinminihydroprojects.Progress on Output 1.2: Methodology and database developed and made available forincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplansInthenewfederalsystem,municipalitieshavebeengiventheresponsibilitytodevelopsmallhydropowerandrenewableenergyprojects.BuildingonthemethodologiesdevelopedforAEPC’sDistrictClimateandEnergy Plan (DCEP) and District Electrification Master Plan (DEMP), RERL prepared a framework andmethodologyforpreparingMunicipalEnergyPlan(MEP).TheMEPpreparationprocessstartsattheWardlevelwherethestatusofelectrificationandcookingfuelinuseineachwardisidentifiedandthecosteffectivealternatives among grid extension, mini/micro hydro, solar PV, biogas and improved cooking stove isanalyzed.AggregationofWardlevelplanswillbethebasisfortheMunicipalEnergyPlan,whichwillbeGISbased.Basedonthedraftedframeworkandmethodology,RERLissupportingtwomunicipalities–PalungtarMunicipality, Gorkha and Mahankal Rural Municipality, Lalitpur – to pilot MEP preparation, in closecollaboration with GIZ’s Renewable Energy for Rural Areas (RERA) project. RERA is assisting AEPC todevelopframeworks,modalities,guidelines,manuals,etc.forpromotionofREprojectsinthenewfederalstructure.RERAwillalsosupplementRERLinitiativesbyimplementingpreparationofMEPinProvinces1&7(RERAworkingareas)underthesameframeworkandmethodology.TocalculatepotentialareasfordevelopmentofrooftopsolarPVsystemsineachlocation,RERLdevelopedasoftware/application tool “Rooftop Solar Estimator” in 2016. The software helped in alleviating existingpower deficiency in residential, commercial and industrial buildings and promoted cost effectiveopportunitiestogeneratetheirownelectricity,makingthemlessdependentonthenationalgrid.Likewise,RERLdevelopedanandroid-basedsurvey,theRenewableEnergySurveyTool,in2017toimprovethequalityofpre-feasibilityandreconnaissancesurvey.Thistooliscompatibletooperateonasmartphone,tabletandcomputer.AEPCplanstouploadthetoolonitswebsiteandmakeitmandatoryforpre-feasibilitystudies.ProgressonOutput1.3:Completedtrainingandawarenessprogrammesforrelevantgovernmentagencies and stakeholders on mini hydro and large scale solar PV systems development andproductiveenduseTo clarify roles and responsibilities of government agencies in promotion of RE in the changed federalcontext,RERLhasdraftedadocumenthighlightingrolesandresponsibilitiesoflocal,provincialandfederalgovernments,includingAEPC.Itisenvisagedthatthisdocumentwillhelpstreamlineactivitiesatdifferentlevelsofgovernance.TherolesandresponsibilitiesoftheLocalLevelinlinewiththenewConstitutionofNepal,withkeyinputsfromRERL,hasbeenreflectedintheLocalGovernmentOperationsAct2017.To fulfill the ambitious targets of GoN to provide access to clean cooking and lighting solutions to allhouseholds by 2030, in linewith SDG 7, RERL provided inputs to develop UNDP’s Country ProgrammeDocument(CPD)for2018-2022onactivitiesrelatedtorenewableenergyandinclusiveeconomicgrowth.Inthenewdocument,energyhasbeenreflectedasasignaturesolutionforimprovingresilienceagainstnatural


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disasters and climate change effects and as a means for enhancing livelihoods in rural areas througheconomicactivities.The GoN has recommended AEPC for accreditation to Green Climate Fund (GCF) and RERL has beensupportingAEPCtopreparethenecessarydocumentationinthisprocess.Asaresult,AEPChasenteredStage2oftheaccreditationprocessandtobolstertheprocess,andRERLhassupportedAEPC’sparticipationinaPeer-to-Peer workshop. Once accreditation achieved, AEPC will have access to funds for promoting REprojects.ToupscalelessonsfromimplementationofRERLonprivateinvestmentinREprojects,aconceptpaperhasbeendevelopedseekingaccesstoGCFfunds.Hydro Power Empowerment Network (HPNET) is a forum mainly of practitioners, hydropower policymakersandhydropowerregulatorsinSouthAsiaandSouth-EastAsia.RERLhasbeenengagedwithHPNETformore than 2 years in several activities and has prepared Frequently AskedQuestions (FAQ) on gridconnectionofMHPtobepublishedonlineontheHPNETwebsite.RERLhasbeensharingNepal’sexperienceinminigridandgridconnectionofREtechnologiesandpre-paidmeterswithorganizationsandexpertsfromaroundtheregion.TheregionalmeetingonSustainableEnergyforAsia-PacificLDCcountriesjointlyorganizedbytheUNOfficeof theHigh Representative for LDCs, LLDCs and SIDS (UN-OHRLLS) and the Government of Nepal,withsupport fromUNDPNepal CountryOffice on 22 and 23March 2017 in Kathmandu. The SEforALL teamprovided substantial inputs in preparation and organization of thismeeting. The RegionalMeetingwasaimedatbuildingnationalleadershiponenergysectorandcreatingstrongermulti-stakeholderpartnershipsto improve access to finance, with major highlights on the SEforALL implementation agenda, SDG 7implementation process, financing, and project development. Key stakeholders from Asia Pacific LDCcountries,internationalorganizationsandtheprivatesectorparticipatedinopendiscussionssharingtheirknowledgeandexperiencestodisseminatebestpracticesaroundtheregion.ProgresstowardsOutcome2:IncreasedinvestmentinREOutcome 2: This outcome deals with increased investment in RE projects with provision of financingmechanismsanddemonstrationoftechnicallysoundandfinanciallyviableminihydro,minigrid,largesolarPVandlargemicrohydroprojects.RERLhasbeenworkingwithCentralRenewableEnergyFund(CREF)ofAEPCtoestablish financingmechanismtoattractprivate investment inrenewableenergyprojects.CREFsupportwillinitiallygotodemonstrationprojectspromotedbyRERL/AEPC. Mostof thebudgetallocated for supportingdemonstrationprojects reallocated to supportgovernment’sreliefandrehabilitationeffortsafterthe2015earthquakes.ProgressonOutput2a:Commissioned1MWminihydro,300kWminigridand500kWlargescalesolarPVdemonstrationprojectsthroughPPPmodelOutput2aprovisionsactivitiestoestablishdifferentfinancialmechanismstoattractprivateinvestmentinrenewableenergydemonstrationprojectssupportedbyRERL.Inthisregard,RERLhassupportedCREFtoestablishandoperationalizefinancialinstrumentssuchassoftcredit,creditguaranteeandvendorfinancingforrenewableenergyprojects.WiththeclosingofdonorfundingforNRREP,AEPChasfacilitatedcollaborationbetweenRERLandAsianDevelopmentBank (ADB)-fundedSouthAsiaSub-regionalEconomicCooperation (SASEC)programme tojointlypromoteminihydroandsolarminigridprojects.RERLandSASEChavecollaboratedtosupportAEPCinidentifying7minihydropowerprojectsfordevelopment.Theseprojectsinclude500kWPhawaKholainTaplejung,184kWNamche,512kWManjoKholaand186kWBomKholaIIinSolukhumbu,200kWSimrutu


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Kholaand200kWSaniBheriKholainRukum,and200kWGiriKholainJumla.Inthisarrangement,SASECwillprovidefinancialassistance(bothloanandsubsidy)todeveloptheseprojectsandRERLwillprovidetechnicalassistancenecessaryforfinancialclosurethroughoperationandmanagementoftheprojects.RERL and SASEC, through CREF, supported the community to successfully achieve financial closure ofSimrutuKholaandGiriKholaMiniHydroProjectsinRukumandJumlarespectively.CivilBankandNepalInvestmentBankhaveprovidedcommercialcreditlineofNPR26milliontosupportthetwoprojects.RERLhasalsosupportedfinancialclosureofBagauneKholaMicroHydroProject,Rolpa.

Table3:ListofMiniHydroProjectsunderConstruction

Progress on Output2b.1: Demonstrated PPP models facilitating cooperation between sector,publicsector,andorganizationsthroughestablishmentofSpecialPurposeVehicles(SPV)inthreeselectedminihydroprojects(1MW)RERL/SASEC/AEPChasbeensupportingthedevelopmentoffollowingminihydroprojects:

Table4:ListofMiniHydroProjectsonlineProjects kW HHs District Status

LowerBomKhola 282 620 SolukhumbuSpecialPurposeVehicle(SPV)establishedEngineering drawings for civil components beingprepared

KhtayadKhola 500 3,200 Mugu TRCApproved

PatrasiKhola 500 2,500 Jumla DFSCompleted

TapKhola-II 303 2,671 Khotang Costrevision&100Mcanalcompleted

ThesoKhola 250 NA Solukhumbu DFSCompletedLungKhola 500 NA Pyuthan DFSCompleted

ChuwaKhola 1,000 NA Humla DFSOngoing

GhamiKhola 500 1,000 Mustang ABCmodelWorldBank-YetiAirlines

Total 3,835 9,991

Projects kW HHs District Status

SimrutuKhola 200 1,386 Rukum CivilworksunderconstructionInstitutionalStrengtheningofcooperativeinitiated

GiriKhola 200 1,840 Jumla NegotiationwithNIBLforcreditfundingInstitutionalStrengtheningofcooperativeongoing

PhawaKhola 500 2,093 TaplejungContract awarded for supply & installation of electro-mechanicalequipment&civilworks700Mcanalcompleted

TaraKhola 394 2,200 Baglung SpecialPurposeVehicle(SPV)establishedIntake,Canal,DesiltingBasin,Forebaycompleted

UpperJunbeshi 250 615 Solukhumbu EngineeringdrawingsforcivilcomponentspreparedConstructionofcivilworksongoing

Total 1,544 8,134


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ProgressonOutput2b.2:Demonstratedafinanciallysustainableandreliableminigridconnecting300kWmicrohydrosystemsRERLhasbeensupportingAEPCtoimplementComponent3oftheWorldBankfundedKabeliTransmissionProject.TheTaplejungMiniGridinterconnecting6miniandmicrohydropowerplantstoevacuateelectricitytothedistrictheadquartersisbeingdevelopedunderthisproject.RERLhasprovidedassistancetofinalizethedetailedfeasibilitystudyoftheprojectandtoestablishtheTaplejungMiniGridDevelopmentFunctionalGroup.RERLdesignedcontrolandprotectionsystemsforinterconnectionandparalleloperationofmicrohydropowerplantswithAEPCallocatingNPR10milliontoprocureandinstallthesystem.RERLhasalsobeensupportingthecommunitiestoprocuregoodsandservices.RERLalsoprovidedassistancetoassessbidsforinstallationof11kVtransmissionline,andpreparetheVulnerableCommunityDevelopmentPlanandEnvironmentAssessmentrelatedtotheminigrid.TheTaplejungMiniGridFunctionalGrouphasalreadycompletedtheinstallationof37kmofthe11kVtransmissionline.The23kWSyaurebhumiMHPofNuwakot,thefirstgridconnectedMHPoflessthan100kW,wassuccessfullysynchronized with the national electricity grid in 2017. The MHP has already signed Power PurchaseAgreement with NEA. AEPC provided financial support for electrical equipment and RERL providedassistance for civilworks required for interconnectionof the twosystems.AEPCandNEAhadagreed tointerconnect MHP less than 100kW with the national grid in 2015 and PPA was signed by NEA andSyaurebhumiMHPin2016.AEPC/RERLhasalsosupportedinterconnectionofthe40kWLaguwaKholaMHP,IDhankutatothegrid.InterconnectionofmicrohydrowiththegridhashelpedgenerateadditionalrevenuefortheMHPandavoidtransmissionlossesforNEA.Furthermore,havinggenerationsystemsattheendofthelinehelpedimprovevoltagequalityandsystemreliability.Basedontheexperience,NEAandAEPCwillgraduallyconnectMHPswherethenationalgridintersectsMHPserviceareas.Similarly,RERLprovidedtechnicalsupporttoAEPCforconductingfeasibilitystudyofgridconnectionof4MHPs:Thalaligad30kWandAgrigad25kWinDarchulaandPutputeKhola44kWandPutputeKholaII98kW,inSyangja.

Progress on Output 2b.3: Demonstrated large scale solar PV systems under relief andrehabilitationactivitiesandthroughTechnicalAssistance(500kWtotal)TopromotesolarPVbasedsystems,RERLcollaboratednotonlywithAEPCbutalsowithotherdifferentorganizationssothatthesystemscontinuetoreceivefinancialandtechnicalsupportaftertheinstallation.Inthis regard, partnership has been fostered with diverse organizations ranging from Nepal Army andgovernmentagencies,suchasNepalOilCorporationandDepartmentofIrrigation,tolocalnon-governmentalorganizations.AslargescalesolarPVsystemssuchassolarminigrid,institutionalsolarforschoolsandhealthposts,andsolar pumping for water supply and irrigation are relatively new in Nepal, RERL has been focusing onprovidingtechnicalassistancetoAEPCandotherinstitutionstodesign,implementanddevelopinnovativeconcepts. In2017,RERLprepared theconceptnoteonusingSolarPV topowerFuelPumpStations.Theconceptnotewassubmitted to theNepalOilCorporationunder theMinistryofCommerceandSupplies.Similarly,RERLprovidedfinancialassistancetoconnecta1MWpsolarplantinNawalparasidistricttothenationalgrid.ThisisthefirstinstanceinNepalwhereacaptivesolarplanthasbeenconnectedtothenationalgrid.Similarly,AEPCprovidedfinancialandtechnicalsupportforinstallationof15kWpgridconnectedsolarPVsystematNepalEngineersAssociationbuildinginLalitpur.Interconnectionofsmallgenerationsystemsattheendofthelinehashelpedimprovequalityofelectricityandproperutilizationofspiltenergy.


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RERLsupportedAEPCtoinstall35kWpSolarMiniGridSysteminHarkapur,Okhaldhungand25kWpSolarWindHybridMiniGridSysteminBhorleni,Makawanpur.TheprojectisfundedbytheAsianDevelopmentBank(ADB).Thoughboththesystemshavebeenoperatingwell,ithasbeenastruggletomeettheincreasingdemandofthecommunity.Inthiscontext,RERLhasconductedadetailedfeasibilitystudyforupgradationofthepromotedsolarandwindhybridminigridsystems.Inaddition,AEPCandRERLcollaboratedwithDDCMakwanpurtoestablishacooperativeinBhorlenitobringtogether140beneficiaryhouseholdstomanageandsustainablyoperatethe25kWwind-solarhybridsystem.AtAEPC’srequest,RERLcarriedoutdetailedfeasibilitystudiesofpotentialminigrid,institutionalsolarandsolarpumpingsitesinBaitadidistrict,andofpotentialminigridsitesinWardNo.1and2ofKimriVDCandWardNo.4and5ofRowaVDC,Mugu. It is expected that the solarmini gridwillhelp to fulfill the localcommunity’sdemandforelectricityandsupportsolardrivenproductiveenergyuse.RERLsupportedAEPCandSASECtodevelop13solarminigridprojects,includingsiteselection,finalizationoffeasibilitystudy,biddocumentpreparationparticularlytechnicalspecificationsandon-sitemonitoringduringtheinstallation.AsNepalhaslimitedexperienceininstallationandoperationofsolarminigrid,theseprojectswillhelpdevelopthein-countrycapacityforup-scalinginthefuture.SolarPVbasedprojectswithtechnicaland/orfinancialassistancefromRERLarelistedbelow:

S.N. Project Location District kWp Type Funding1 KamalBazaarSWMG KamalBazar Achham 31.0 SWMG AEPC2 HarrekandaSurket Surket Harrekanda 7.2 SWMG AEPC3 Chisapani Chisapani Sindhuli 35.0 SWMG AEPC/SASEC

4 TheCommissionfortheInvestigationofAbuseofAuthority(CIAA).

Naxsal Kathmandu 375.0 ISPS AEPC

5 TelkuwaSolarIrrigation Telkuwa Bara 4.0 Agro RERL6 SnakeBiteTreatmentCenter Letang Morang 2.0 ISPS RERL7 SnakeBiteTreatmentCenter Itahari Sunsari 2.5 ISPS RERL8 SnakeBiteTreatmentCenter Charali Jhapa 2.5 ISPS RERL9 NawalparasiCaptiveSolarPVplant Ranipakar Nawalparsi 1000.0 Captive

SolarPVSuryaPower

10 RamiteKhola Morang 35.0 SMG RERL11 KhtwaraHealthPost Katwara Salyan 3.0 ISPS RERL12 SimrutuHealthPost Simrutu Rukum 3.0 ISPS RERL13 KabilasiMiniGrid-SolarPumping Kabilasi Sarlahi 6.0 SMG RERL

Total 1,506.2

Table5:ListofSolarPVProjectsTheprojecthasworkedon(i)34kWp(ii)22kWpBajhangParakatneMiniGrid(iii)35kWpHariharpurGadhiSindhuliMiniGridProject(iv)30kWpRamiteKhola,Morang(v)8kWpSurkhetand(vi)30kWpKamalBazar,Achham.RERLprovided1.5kWpsolarPVbackupsystemsatSnakeBiteTreatmentCentersinLetang,Morang,Itahari,Sunsari and Charali, Jhapa. The systems provide continuous electricity to power refrigerators to storesnakebiteanti-venomvaccinesatbetween2˚Cand8˚C,fans,lightsandnebulizers.Onaverage,morethan


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1500snakebitecasesweretreatedbythecenterseachyear.Afterknowingthehugeimpactofsolarsystems,AEPChasplannedtosupportPVbackupsystemin25otherSnakeBiteTreatmentCentersinFY2074/2075.TheEnergyforEducation(E4E)concepthasbeenpilotedbyRERLintwoschoolsofDhadingandParsadistrictsin2016.Thisinitiativehasprovidedopportunitytolearnthroughaudio-visualinteractions.Aftersuccessofthepilotproject,RERLsupportedtoinstall1.5kWpsolarPVsysteminSahidChandeswhorLowerSecondarySchoolinDhanushaDistrictin2017.Besidesstudents,localwomenandmenfromdisadvantagegroupswereabletolearnabouttheuseofcomputers.Moreover,thesystemhasbeenusedinthelocalcybercafewhichhashelpedgeneraterevenueforsustainableoperationofthesystem,enhancingitspotentialtobereplicated.WithRERL’s financial and technical support,4kWpsolarPVsystem installed inTelkuwaSolar IrrigationProject inBara.TelkuwaKrishiCompany,aSpecialPurposeVehicleownedbybeneficiary farmersandaprivatecompany,ownsthesystem.In2017,RERLprovidedfinancialassistancetothecompanytoworkonvarious aspects of the vegetable value chain. This will help improve revenue generation of the project.Similarly,RERL,withthefinancialsupportfromUNESCAP,hasinstalledsolarpumpingsystemsforwatersupplyandirrigationthroughanSPVattheChepangCommunityofRaksirang,Makawanpur.RERL provided technical support to theWorld Bank and AEPC on implementation of Anchor-Business-Customer(ABC)projects.IthasprovidedGeo-codedinformationofenergyinfrastructureprojectsinNepaland helped select candidate sites for implementation. The World Bank is also considering gridinterconnectionofRenewableEnergyTechnologiesundertheproject.ReliefandRehabilitation:Underreliefandrehabilitation,RERLsupportedinstallationof72solarsystemsinschools,healthpostsandpublicofficesofearthquakeaffecteddistricts.Likewise,RERLalsosupportedtorehabilitate27MHPswithtotalinstalledcapacityof633kWand9PVPSin2017.Afterthedevastatingearthquakesof2015,RERLprovisioned USD 1 million for relief andrehabilitation activities immediately providing28 mobile phone charging systems in Dolakhadistrict for quick recovery of communicationnetwork and conducting a rapid damageassessment of 156 MHPs and 45 solar water-pumping systems supported by AEPC. RERLworked closely with AEPC to prepare PostDisaster Needs Assessment (PDNA) related torenewable energy for the National PlanningCommission (NPC). Then, RERL focused onproviding electricity to government offices,health posts, birthing centers, schools andtemporary learning centers, and also providedtechnical support to implement other AEPCsupported relief activities fundedbyDfID.RERLhas provided support on the rehabilitation of 230 suchinstitutionalPVsystemsand56 MHPs with the total installed capacity of around 1.25 MW (See Table 6). With these supports, 180,486 households have benefitted from overall energy services.

RERL AEPC GrandTotal

MicroHydro

No. 56 39 95

kW 1,337 1,417 2,754

HHs 13,143 14,170 27,313InstitutionalSolarPV

No. 72 150 175

kW 21.6 700 721.6

HHs 53,403 NA 53,403

Table6:RESystemssupportedbyAEPCandRERLunderreliefandrehabilitation


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ProgressonOutput2b.4:Operationalized2MWofoff-gridlargemicro-hydro(over60kW)powerprojectsdemonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticesthroughtechnicalassistanceRERLhasbeenassistingCommunityElectrificationSubComponent(CESC)ofAEPCtopromotelargemicrohydro projects in various ways, from conducting detailed feasibility studies to project supervision andmonitoring.In2017,AEPCsupportedcommunitiestoinstall17MHPswiththetotalcapacityof932.5kWbenefiting7,696households.RERLalsosupportedonupdatingPowerOutputVerification(POV)GuidelinesandtrainingPowerOutputVerificationInspectors(POVI).POVisanimportantmonitoringmechanismtoensurethequalityofworksdonebycontractors,whichisrequiredbeforethereleaseoffinalinstallmentofsubsidyforcompletedMHPs.However,AEPChasbeenimplementingmicrohydroprojectsinNepal.Thegovernmentsubsidieswiththeright to basic lighting approach, many micro hydropower plants are not optimally utilized. The newenterprisebasedapproachisexpectedtoencouragebeneficiariestomakeproductiveusesofelectricitysothatnotonlythelocalpeoplebenefitfromavailabilityofdifferentservicesbutalsotheMHPitselfgeneratesmore revenue tobe sustainable.Hence,RERLhas startedworkingwith thebeneficiaries in25MHPs forcommercialoperation.Detailsarediscussedinsection3b.5.ProgresstowardsOutcome3:ImproveddesignandpackagingofinvestmentsupportmechanismsforruralREandotherlow-carbontechnologyapplicationsThisoutcomedealswithimproveddesignandpackagingof investmentsupportmechanismsforruralREand low-carbon technology applications in Nepal. A detailed study carried out by RERL to identify thereasonswhyBanksandFinancialInstitutions(BFIs)werereluctanttofinanceREprojectsinruralareaandthe kind of support required to make the investment less risky. The study recommended designs andoperationalizationoffinancialinstrumentssuchassoftcredit,creditguaranteeandinsurancetohelpreducetheperceivedrisksbytheBFIsforattractingprivateinvestmentintheREsectoringeneralandcommunityownedprojectsinparticular.ThestudyhasbeenwidelydiscussedanddisseminatedwithplanstointegratethefindingswithinCREF’sBusinessPlan.AsoftcreditandcreditguaranteemechanismforfinancingminihydrodemonstrationprojectsandvendorfinancingmechanismforsmallsolarPVpumpingforirrigationhasbeenestablishedandisoperational.ItisexpectedthatmorefundwillbeavailablethroughthesemechanismstoupscaleREinNepal.ToencourageprivatesectorandBFIsinthesector,RERLjointlyorganizedanInvestors’ForumwithAEPCandAsianDevelopmentBank,adshowcasingpotentialminihydroprojects.RERLhasorganizedseveralsitevisitsforBFIsinterestedinprovidingloanstominihydroprojects.However,BFIshaveindicatedreluctancetofinanceREprojectsinruralareassofarbecausetheyconsiderthisahigh-riskventure.BFIsprimarilylackconfidenceintheprojectedcashflowoftheprojectduetoissuesontariffcollectionunlikegridconnectedprojectswherePPAprovidessomeassuranceforregularcashflowintotheproject.Theperceivedrisksareamplified with community projects because of risks with management and technical knowhow of thecommunityaswellasthelegalbasisofthecommunitygroups.To improved financial viability of mini/micro hydro projects, RERL has been working closely with theProductiveEnergyUseComponent(PEUC)ofAEPCtopromoteMSME.Thiswillhelpattractprivatesectoractorstodevelopandoperaterenewableenergyprojects.ProgressonOutput3a.1:RERL,UNCDFandCREFcarriedoutastudyofaMHPthatwasfundedbyamicrofinancecompanyinMyagdidistrictofwesternNepal.The11.5kWMHPisamongfewprojectswherehouseholdequityprovidedthroughamicrofinancecompany.Thestudyfoundthatalltheloanswererepaid


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within a year of project completionwithnodefaults. Involving local financial institutions that know thecommunityandareconfidentaboutrecoveringloansintimeisabusinessmodel,whichcouldaddresstheissuesofrisksperceivedbylargercommercialbanks.Tohelpreducelender’sdoubtsandperceivedrisks,RERL/SASEC/AEPChasbeenworkingwithcommunitiesofSimrutu,RukumandTatopani,Jumlatoinitiatemicrofinanceactivitiesamongbeneficiarywomen.Progress on Output 3b.1 and 3b.2: Designed and provided technical support for financingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturersandminihydroandlargesolarPVprojects

RERLandUNCDFhasjointlyestablishedtheREVendorChallengeFundatCREFwiththemainobjectiveofsupporting RE vendors to test, develop and scale up innovative business models for vendor finance inNepal.Thefundsupportsamaximum50%ofthetotalNPR19.67millionbudget.TheCREFhasenteredintoPerformanceBasedAgreement(PBA)withthreevendors(AsthaEngineeringSolutionPvt.Ltd.,JBSUrjaPvt.Ltd.,andGhamPowerNepalPvt.Ltd.)selectedunderstringentprocurementprocessasmentionedinthegovernment approvedVendor FinanceOperationManual. By the end of the project term (i.e. 31August2019),theselectedgranteesareexpectedtoleverageNPR113.90millionfortheinstallationof400SolarConductionDryers(SCDs),200solarpumpsforirrigationand3,000unitsofsolarhomesystemsunderPay-As-You-Go(PAYG)model.Output3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusersRERLandSASEC inpartnershipwithCREFconductedoutreachprogramstoattractcommercialcredit tominihydroprojects. InteractionprogramsbetweencommunitiesandinterestedbankswereorganizedatGiriKhola,JumlaandPhawaKhola,Taplejung.Asaresult,letterofcommitmenthasbeenprovidedbytwobanks for these projects ensuring financial closure. As a result, Giri Khola MHP has already startedconstructionandcontractforequipmentsupplyandconstructionofPhawaKholaMHPhasbeenawarded.ProgressonOutput3b.5:Functionalenterprisesadoptingproductiveuseofelectricity Inorder todisseminate informationon thebenefits of running “MHPas anEnterprise”,RERLorganizedorientationprogramsinRolpa,RukumandAchhamdistricts.Moreover, to enhance the institutional capacities of the large-scale micro hydropower projects forcommercial operation of the system, RERL worked with AEPC to support beneficiary communities forinstitutionalizationoftheirorganizationandhelpedstrengthentheircapacitiesforcommercialoperationoflargescalemicrohydropowerplantsinAchham,Bajura,Baglung,Dolakha,RukumandRolpadistricts.RERLhassupported83kWDarnaMHPofAchham.Thebeneficiarieshavestartedsellingsurpluspowerto500HHsfromneighboringKalagaunVDC.WithRERLsupport,cooperativeshavebeenformedinDarnaandKalagaunVDCs.ThetwoVDCssignedaPowerPurchaseAgreementtoexport25kWfromDarnatoKalagaun.ThepeopleofKalagaunhavemobilizedequityandgrantfromWISIONS,GermanyandtheKalagaunVDCtoconstructa11kVtransmissionanddistributionline.EfficientmanagementandelectricityexporthasmorethantripledaveragemonthlyrevenueofDarnaMHPfromNPR.45,000toNPR.150,000.Encouragedfromthisresult,RERLhasbeenworkingwiththecommunitiesinAchham,Bajura,Rukum,RolpaandBaglungforcommercial operation of 25 MHPs. Towards this, RERL organized orientation and training for 40 MHPmanagers,includingtwowomen,toenhancetheirskillsforcommercialoperationoftheplants.Thetrainingincludedcooperativeaccounting,commercialtariffsetting,computerizedbillingandproductiveenergyusepromotion.Asaresult,16MHPshavealreadystartedcomputerizedbillingwhichensurestransparencyintariffsetting,billing,collectionandaccountkeeping.


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In2015,RERLdesignedandfabricatedelectricloktaboilertohelpswitchenergysourcefromfirewoodtoelectricity.ThisinnovativetechnologywastriedfirstinGhandruk,KaskiinwesternNepalwithpowerfromanAEPCsupportedMHP.Afterthetechnologywasproventobeeasytohandleandcosteffective,electricloktaboilerswereboughtby5loktaentrepreneursfromdifferentpartsofthecountry.RERLthenworkedon lokta drying technology to reduce dependence on natural sunlight for drying lokta paper during thewinterandmonsoonseasonswhentheskyisusuallyovercast.

ProgressonOutput3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablishedSo far, RERLhas providedBusinessManagementTraining to 141women entrepreneurs. In 2017,RERLorganizedtwotrainingonbusinessmanagementfor51womenentrepreneursinBiratnagarandNepalgunjwith an objective to impart knowledge on business management, particularly entrepreneurship, bookkeeping andmarketing.Earlier in2016, anRERL studyon the impact of businessmanagement training,indicatedthatthetraininghelpedimproveentrepreneurs’’knowledgeandcapacityonaccountingandbook-keeping,accessingmarketsandcommunicationabilities.Progress towardsOutcome4:Enhancedcapacitiesandskillofvarious stakeholders in theREsectorThisoutcomefocusesonenhancingcapacitiesandskillsofstakeholdersintheREsector,thetraineesareprimarilysystemdesigners,fabricators,installersandoperators.Astheserviceprovidersaremainlyfromtheprivatesectors,theircapacitybuildinghasbeenactivelypursuedbyAEPCandRERLthroughclassroomandhands-on-training,orientationandstudytours.Progress on Output 4.5: Fully trained, skilled and technically capable people available foroperation,maintenanceandbusinessmanagement

RERLorganizedtwoMicroHydroOperators’TrainingsatKhamariKholaMHP,Babiyachaur,andSurkhet,benefitingatotalof51operatorsof51MHPs.Traditionally,operators’traininghasbeenconductedeitherinKathmanduorButwal,whichislogisticallyexpensiveandmoretheoretical.Decentralizingtrainingprogramshasdrasticallyreducedthecostoftravelandaccommodationwhilealsoensuringmorehands-ontrainingandexperiencesharingthroughPeer-to-Peer(P2P)Learning.


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5.2 ProgressonProjectOutputs

Table6:ProgressonOutputIndicators

Outputstatement

Outputindicator

Baseline

CumulativeTargetfor2013-2017

Progressupto2016

2017Milestone

2017Progress

Cumulativeprogressupto

2017

Meansofverification

Output1.1ApprovedandenforcedpolicythatenablesPPPmodelforminihydroandlargescalesolarPVdevelopment,includingfiscalincentivesandsustainabilityforpossiblechangesinNepalgovernmentstructure

Policydocumenton RE is inplace

RuralEnergyPolicy2006

RE Policy,GESIsensitivesubsidypolicy,subsidydeliverymechanismand draftRE ActsubmittedtoGoN

RESubsidypolicyrevisionsubmittedtogovernment

Finalization ofLocalGovernmentAct2017

LocalGovernmentOperationAct2017RenewableEnergyinFederalContext

RE Subsidy PolicyapprovedbyGON

RE SubsidyPolicy

NEABoardapprovedTechnicalStandardforinterconnectionofMHPwiththegrid

NA NA

NEABoardapprovedTechnicalStandardforinterconnectionofMHPwiththegrid

TechnicalStandard forinterconnectionofMHP

DocumentsforPowerPurchaseAgreementbetweenNEAand2MHPsubmittedtoNEA

GuidelinepreparationUtility ScaleSolar PVDevelopment

Utility Scale SolarPV DevelopmentGuidelinesinitiated

DocumentsforPowerPurchaseAgreementbetweenNEAand2MHPsubmittedtoNEA

PowerPurchaseAgreement

DraftTechnicalStandardforinterconnectionofsolarPVwithgridprepared

NA NA

TechnicalStandardforinterconnectionofsolarPVwithgridprepared

TechnicalStandardpublication

PreparedconceptdocumentstoaddressenergycrisisresultingfromborderblockadeandsubmittedtotheGoN

NA NA

PreparedconceptdocumentstoaddressenergycrisisresultingfromborderblockadepreparedandsubmittedtotheGoN

Conceptdocumentsonenergycrisis


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Output1.2MethodologyanddatabasedevelopedandmadeavailableforincorporatingminihydroandlargescalesolarPVsystemsintodistrictREplans

No.ofintegrateddistrictREplansprepared

NA

DistrictRenewableEnergyMasterPlan(DREMP)preparedfor15DDCs

DistrictRuralElectrificationMasterPlancompletedforGorkhadistrict

Preparation ofMunicipalEnergyPlan

2 Municipal planshave beeninitiated

Municipal EnergyPlan of Gorkhadistrictcompleted

MunicipalEnergyPlan

SupportAEPCtodevelopconcepton BestAvailableTechnology(BAT)

RERL supportedAEPC to developconceptonBAT

RERL supportedAEPC to developconceptonBAT

BATreport

SupportAEPCtopreparedocumentonREin FederalContext

AEPC’s role inFederal Contextcompleted

AEPC’s role inFederal Contextcompleted

Draft AEPCAct, AEPCTransitionPaper, AEPCsupportpackage forProvincialGovernment

Output1.3Completedtrainingandawarenessprogramsforrelevantgovernmentagenciesandstakeholdersonmini-hydroandlarge-scalesolarPVsystemsdevelopmentandonproductiveenduses

No.oftrainingsconducted

NA

3casestudiespreparedand6trainingsconducted

LargeScaleSolarPVCaseStudycompleted

OrganizedWorkshop onEnablingEnvironmentfor Mini Hydroin Nepal basedon the Casestudy preparedbyUNSCAP

Workshop onEnablingEnvironment forMini Hydro inNepalorganized

LargeScaleSolarPVCaseStudycompletedWorkshoponEnablingEnvironmentforMiniHydroinNepalorganized

Case Study/Completionreport andworkshopproceeding

1trainingondesignoflargeSPVforDEECCS

NA NA1trainingondesignoflargeSPVforDEECCS

Proceedingreport

PreparationforExhibitiontocreateawarenessonREtechnologies

NEA and AEPCCoordinationMeeting

Coordinationmeetingconducted on 22August2017

PreparationforExhibitiontocreateawarenessonREtechnologies

Minutes ofcoordinationMeetingCompletionReport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

1TrainingonDFSofMiniHydroand1trainingonGISforAEPCcompleted

NA NA

1 Training on DFSofMiniHydroand1training on GIS forAEPCcompleted

Trainingreports

NA

NA

Coordinationmeetingorganizedand signed MOUfor PowerPurchaseAgreement

Coordinationmeeting organizedandsignedMOUforPower PurchaseAgreement

MOU

NA NA Asia-PacificMeeting onSustainableEnergy for LDCcountries

Asia-PacificMeeting conductedon SustainableEnergy for LDCcountries

TrainingReport

Output2a.1:Commissionedmini-hydrodemonstrationprojectstotaling1MWthroughPPPmodel

No.ofminihydrodemonstrationprojectscommissioned

NA

1minihydroprojectinitiated

RERLissupportingCREFbanksforfinancialclosure

Initiatefinancialclosureof2MiniHydroProjects

Financial closureof Simrutu andGiri Kholacompleted

RERL issupportingCREF banks forfinancialclosure Bank

Commitment/ MeetingMinutes

FinancialclosureofSimrutu and GiriKholacompleted

Output2b.1:DemonstratedPPPmodelsfacilitatingcooperationbetweenprivatesector,publicsector,andlocalorganizationsthroughestablishmentof

No.ofprojectsstrengthened

NA

5institutionsstrengthenedincludingSPVs

GuidelinesfordevelopingminihydrounderPPPmodeldeveloped

DetailedFeasibilityStudy of MiniHydroProjects

DFS of 4 minihydro projectswithtotalcapacityof 2MWcompleted

Financialclosureof2minihydrocompleted

DetailedFeasibilityReport

Initiatedfinancialclosureof2mini-hydroprojects(TapKhola2,600HHsandGiriKhola2,000)totaling500kW

GuidelinesfordevelopingminihydrounderPPPmodeldeveloped

PPPGuidelines


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

SpecialPurposeVehicle(SPV)inthreeselectedmini-hydroprojects(1MW)

Institutionalsupportfor2SPVson-going(PhawaKhola,TaraKhola)

Initiatedfinancialclosureof2mini-hydroprojects(TapKhola2,600HHsandGiriKhola2,000)totaling500kW

Bankcommitment

DFSof9minihydroprojectswithtotalcapacityof3MWcompleted

Institutionalsupportfor2SPVson-going(PhawaKhola,TaraKhola)

DFSReport

Institutionalsupportfor2SPVson-going(PhawaKhola,Tara

DFSof9minihydroprojectswithtotalcapacityof3.4MWcompleted

DFSReport

DFSof4minihydroprojectswithtotalcapacityof2MWcompleted

DFSReport

Institutionalsupportfor2SPVson-going(PhawaKhola,Tara)

BankCommitment

Output2b.2:Demonstratedfinanciallysustainableandreliablemini-gridconnectingten(10)micro-hydrosystems(300kW)

No.ofmini-gridandgridconnectionsupported-1mini-gridinterconnecting2MHPwithcapacityof218kWinGulmicompleted

NA

1Mini-gridinterconnecting10MHPwith300kWcapacity

1mini-gridcommissionedinGulmidistrictbenefiting2,300HHs

Installationof37km11kVtransmissionline

Erection ofTransmission andDistribution linecompleted

Interconnectionof2MHPinGulmicompletedErectionofTransmissionandDistributionlinecompletedinTaplejung

CommissioningReport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

-1minigridinterconnecting6MHPswiththecapacity106kWinBaglungrevived

TaplejungMiniGridDevelopmentFunctionalGroupestablished.

PilotingofGridconnectionof2MHPs

Interconnectionof23kWSayurebhumiMHPcompletedand40kWLeguwaKholaisonprocess

GridInterconnectionof23kWSyaurebhumiMHPcompleted

CommissioningReport

-Duediligenceof1MiniGridinterconnecting8MHPswiththetotalcapacityof900kWcompletedandprocurementinitiated

DuediligenceofTMGinterconnecting7MHPscompleted.Biddocumentisbeingpreparedtoprocureequipment

NA

NA

Due diligence ofTMGinterconnecting 7MHPs completed.Bid document isbeing prepared toprocureequipment

BidDocuments


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Output2b.3:DemonstratedfinanciallysustainableandreliablelargescalesolarPVsystems(500kWtotal)

LargescalesolarPVsystemsinstalledwithcapacityof500kWunderreliefandrehabilitation

NA

SolarPVsystemswiththetotalcapacityof500kWinstalled

41kWsolarPVSystemsinstalled

72institutionalSolarsystemsinstallinpublicinstitutions

Installed72InstitutionalSolar

PVSystem

31.2 kW solar PVsystems wereinstalled41 kW solar PVSystems installed8 kW directly byRERL under reliefandrehabilitationInstalled 72Institutional SolarPVSystem

ProjectMIS

NA

Installation ofSolar PVSystems atSnake BiteTreatmentCenters

1.5kW solar PVback up systeminstalled in SnakeBite TreatmentCenter at CharaliJhapa

1.5kW solar PVback up systeminstalled in SnakeBite TreatmentCenter at CharaliJhapa

ProjectMIS

8kWsolarPVinstalleddirectlybyRERLunderreliefandrehabilitation

Energy foreducation

3kW Solar PVsysteminstalledinSahid ChandeshorLower SecondarySchool atDhanusha

3kW Solar PVsystem installed inSahid ChandeshorLower SecondarySchoolatDhanusha

ProjectMIS

AssistedAEPCtodevelopbusinessplanfor18kWsolarminigridunder5P

NA

NA

AssistedAEPCtodevelopbusinessplanfor18kWsolarminigridunder5P

ProjectMIS


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

AssistedAEPCtoinitiateinstitutionalizationof15kWSolarand10kWWindHybridsysteminMakwanpur

NA NA

AssistedAEPCtoinitiateinstitutionalizationof15kWSolarand10kWWindHybridsysteminMakwanpur

ProjectMIS

Rapidassessmentof42solarpumpingsystemscompleted

Installation ofInstitutionalsolar in earthquake affecteddistricts

72 Solar installedin earthquakeaffecteddistricts

Rapid assessmentof42solarpumpingsystems andinstallation of 72solar systemscompleted

ProjectMIS

Output2b.4:Operationalized2MWofoff-gridlargemicro-hydro(over60kW)powerprojectsdemonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance

TechnicalassistanceforlargemicrohydrosystemsandTAandfinancialassistancetorehabilitateMHPsdamagedbyearthquakes

Previously

installedMHPs

1.8MWMHPinstalledandrehabilitated

2DFScompleted

Rehabilitationof MHPdamaged byearthquake

Rehabilitated 30MHPs with totalcapacity of 682kW

Total 3.25 MWelectricitygenerated (2.4MWfrom new MicroHydro + 0.66 MWfrom rehabilitatedMHP + 0.19 MWfromsolarPV)

ProjectMIS

25,000householdshaveaccesstoenergy

3,581newhouseholds(RERLandNRREP)haveaccesstoelectricity

NA NA

3,581newhouseholds(RERLandNRREP)haveaccesstoelectricity

ProjectMIS

Rapidassessmentof140MHPsaffectedbyearthquakescompleted.USD176,493forrehabilitationof31MHPs,755kW,7,500HHsforimmediate

NA NA

Rapidassessmentof140MHPsaffectedbyearthquakescompleted.USD176,493forrehabilitationof31MHPs,755kW,7,500HHsforimmediate

ProjectMIS


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

rehabilitationtransferredtoDEF

rehabilitationtransferredtoDEF

NATA for MHPinstallation

Support AEPC toestablish 25 MHPwithtotalcapacityof1229kW

SupportAEPCtoestablish25MHPwithtotalcapacityof1229kW

ProjectMIS

Output2b.5:Completedfinancialclosureof7MWofoff-gridmini-hydropowerprojectsreplicatingPPPmodelthroughestablishmentofSPVs,demonstratingcost-advantage,feasibility,productiveend-uses,andbestpracticethroughtechnicalassistance

DFSofminihydro

NA

DFSof1MWminihydrocompleted

DFSof5MiniHydroCompletebenefitingmorethan5,000HHs

Construction ofmini hydroprojects

Underconstruction of 5mini hydroprojectswithtotalcapacityof1.5MW

DFSof5MiniHydroCompletebenefiting morethan5,000HHs5 mini hydroprojects with totalcapacity of 1.5MWis underconstruction

Biddocument

Output3a.1:EstablishedafinancinginstrumenttoincentivizeBankingandFinancingInstitutionsforfinancingdomesticmanufacture

Financinginstrumentestablished

NA NA NA

Establishmentoffinancinginstrumentfordeveloperandmanufacturer

Financinginstrumentpreparedandestablishmentprocessongoing

Financinginstrumentpreparedandestablishmentprocessongoing

FinancialInstrument/Report


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Output3a.2:EstablishedafinancinginstrumenttoincentivizeBankingandFinancingInstitutionstocommercialfinancingforminihydroandsolarPV

NA NA NA

Demonstrationof severalfinancialinstrumentsuchas Soft Credit,CreditGuarantee,VendorFinancing, LFIFinancing &ProjectInsurance

TORforcreditfinancinghasbeenpublishedinAEPCwebsite.

TORforcreditfinancinghasbeenpublishedinAEPCwebsite.

AEPCWebsite

Output3b.1:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromotingcommercialfinancingfordomesticmanufacturers

Designoffinancialpackagefordomesticmanufacturers

NA

1gapanalysisconductedand1financialinstrumentdeveloped

Gapanalysiscompleted

CREF Businessplanprepared

Consultanthasbeenhiredtoinitiatethebusinessplan

Gapanalysisconductedanddevelopmentofbusinessplanongoing

InceptionReport

Output3b.2:Designedandprovidedtechnicalsupportforfinancingplatformsandservicesforpromoting

Designofcommercialfinancinginstruments

NA

2instrumentsdeveloped

Gapanalysiscompleted.Financialinstrumentsbeingdeveloped.

Finalizationof2financialinstruments(Partial CreditGuarantee andVendorFinancing)

PartialCreditGuaranteeinstrumentcompleted

GapanalysiscompletedalongwithFinancialinstruments.PartialCreditGuaranteeinstrumentcompleted

Gapanalysisreport,Financialinstruments,PartialcreditGuaranteeinstrument


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

commercialfinancingformini-hydroandlarge-scalesolarPVprojects

CreditguaranteemechanismforhouseholdscalePVpumpingsystems(PVPS)establishedatCREF.Underthisactivity,5PVPSaresupportedinChitwandistrict.

Vendorfinancinginstrumentimplemented

VendorfinancinginstrumentimplementedinChitwan

5PVPSaresupportedinChitwandistrict.VendorfinancinginstrumentimplementedinChitwan

CREF/Completionreport

NA

MiniHydrodebt/projectinsurancedevelop

Theconceptoftheproject insurancefor Mini HydroDebt developedand integratedinto CREF’smodality

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

CREFReport

Output3b.3:Developedtrainingmaterialsonmini-hydroandlarge-scalesolarPVprojectsforfinancinginstitutions

No.oftrainingmaterialsforbankers

NA1trainingmaterialprepared

Thetrainingmaterialisbeingprepared

Thetrainingmaterialspreparedandtrainingconducted

Trainingmaterialsprepared&orientationforbankofficialsorganized.15bankofficialsparticipatedinthetraining

Trainingmaterialsprepared&orientationforbankofficialsorganized,15bankofficialsparticipatedinthetraining

TrainingReport

NA

RERL,UNCDFandCREFjointlycarriedoutastudyonMicroFinancingof12kWMHPinMyagdi

RERL,UNCDFandCREFjointlycarriedoutastudyonMicroFinancingof12kWMHPinMyagdi

TrainingReport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Study on MicroFinance

NA

StudyonMicroFinancingcompleted

StudyReport

Output3b.4:Createdmatchmakingplatformformini-hydroandlarge-scalesolarPVdevelopers,financinginstitutions,andequityinvestors,andproductiveendusers

No.ofplatformscreatedformatchmaking

NA

1eventorganizedand1websitedeveloped

Investor’sForumcouldnotbeorganizedasscheduledduetocontinuousstrikeandblockade

OrganizeInvestor’sForum aspostponed in2015

Investor’s Forumorganized and 2mini hydroprojects pitchedfor privateinvestment

Investor’s Forumorganized and 2minihydroprojectspitched for privateinvestment

Photos andParticipants’list

Output3b.5:Functionalenterprisesadoptingproductiveuseofelectricity

No.ofproductiveuseofelectricitysupported

NA

NRREPTarget:300

657MSMEwereestablishedbyPEUC/NRREP,RERLprovideddirecttechnicalassistancetoestablish193

ProvideTechnicalAssistance toinstallMSME

525 MSMEestablished

657MSMEswereestablishedbyPEUC/NRREP,RERLprovideddirecttechnicalassistancetoestablish193MSMEs525MSMEestablished

Report/ProjectMIS

1300newMSMEs

BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedout

1300 newMSMEs

RERL providedTechnicalAssistance toinstall1182MSME

BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedoutRERLprovidedTechnical

Report/ProjectMIS


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Assistancetoinstall1182MSME

2800MSMEsupgraded

MHPasanenterprisemodeldeveloped

MHP as anenterprisemodel inDarna,Achham

ManagementimprovementforcommercialoperationofMHP

ManagementimprovementforcommercialoperationofMHP

Report/ProjectMIS

2innovativetechnologiesforfuelswitchingfromfirewoodtoelectricitydevelopedandtested(KhuwaMaking,LoktaBoiling),1technologyunderdevelopment(NettleLeavesDrying)

Initiatedefficiencyimprovement ofelectric Loktaboiler

4 electric Loktaboiler technologyfabricated andpromoted atcommunitylevel

2 innovativetechnologies forfuelswitchingfromfirewood toelectricitydeveloped andtested (KhuwaMaking, LoktaBoiling), 1technology underdevelopment(Nettle LeavesDrying)4 electric Loktaboiler technologyfabricated andpromoted atcommunitylevel

Report/ProjectMIS

Frameworkfordevelopmentofindustrialclusterprepared.2potentialruralindustrialclustersidentified.Fieldworkon-goingin1clusterinAchham

EnhanceinstitutionalcapacityofDarnaMHP,Achhamforcommercialoperationofthesystem

Cooperative havebeen formed inDarna, Achham in2016

Frameworkfordevelopmentofindustrialclusterprepared.2potentialruralindustrialclustersidentified.Fieldworkcompleted

Report/ProjectMIS


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

CooperativehavebeenformedinDarna,Achham

9liftirrigationprojectsstudied.2liftirrigationprojects(benefitting45HHs)constructedwithEDMfundingand3underconstruction.

5liftirrigationinstallwithEDMfunding

Lift irrigationinstalled inChiuritar,Simthali, Apchaur,Jarung andChotesh VDC inDhading

9liftirrigationprojectsstudied.2liftirrigationprojects(benefitting45HH)constructedwithEDMfundingand3underconstruction.BusinessOpportunityAssessmentinTanahun,AchhamandMakwanpurcarriedoutLiftirrigationinstalledinChiuritar,Simthali,Apchaur,JarungandChoteshVDCinDhading

Report/ProjectMIS

DraftMoUbetweenAEPCandDepartmentofIrrigationtodevelopliftirrigationprojectsprepared.

CommercialOperation ofMicroHydro

CommercialOperationof25MicroHydroinDolakha,Baglung,Achham,Bajura,Rolpa&Rukum

DraftMoUbetweenAEPCandDepartmentofIrrigationtodevelopliftirrigationprojectsprepared.CommercialOperationof25MicroHydroinDolakha,Baglung,

Report/ProjectMIS


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Achham,Bajura,Rolpa&Rukum

-Locallydevelopedpre-paidmeter

NA NALocallydevelopedpre-paidmeter

Report/ProjectMIS

-EnergyconsumptionpatternofMHPsbeingstudied.

NANA

EnergyconsumptionpatternofMHPsbeingstudied.

Report/ProjectMIS

Support toinnovativetechnologies forfuel switchingfrom firewoodtoelectricity

LoktaDryerinstalledinGhandruk

LoktaDryerinstalledinGhandruk

Report/ProjectMIS

Value Chain forTelkuwa SolarIrrigation

ValueChainforTelkuwaSolar

Output3b.6:Operationalizedmechanismtopromotefinancialproductsforentrepreneurs/endusers

No.oftrainingandorientationstowomenandmarginalizedgroups

NA

2trainingorientationsconducted

Conceptnoteprepared

MicroFinanceInstitutionalmapping

Draft reportsubmitted

Draftreportprepared

Draftreport

SupportBaglungminigridcooperativetoworkasMFItopromoteend-use

Trainingonco-operativestrengtheningconducted

Conceptnote;Trainingreport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydroinitiated

Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydrocompleted

Co-operativestrengthening&MicroFinanceforSimrutuKholaMiniHydrocompleted

Report

Output3b.7:Ensuredwomenandmarginalized/vulnerablegroupsown33%ofthefunctionalelectricitybasedenterprisesestablished

No.oftrainingandorientationstowomenandmarginalizedgroups

NA

2trainingorientationsconducted

43womenfromEasternandWesternDevelopmentRegionswereprovidedenterprisemanagementtraining.

Impact study ofPEUonwomen

Impact study ofPEU on womencompleted

ImpactstudyofPEUonwomencompleted

Studyreport

74womenand80menbenefittedfromskillbasedtrainingontailoring,computereducationandbakery.

Businessmanagementtraining formarginalizedwomen

51womentrainedon businessmanagement

74womenand80menbenefittedfromskillbasedtrainingontailoring,computereducationandbakerywhile51womentrainedonbusinessmanagement

TrainingReports

NA

OrientationforcommercialoperationandinstitutionalstrengtheningtoselectedmicrohydropowerplantmanagementcommitteeinBaglung

25 participantstrained oncommercialoperation andinstitutionalstrengthening

25participantstrainedfromcommercialoperationandinstitutionalstrengthening

TrainingReport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

NACooperativemanagementtraining formicrohydro

55 participantstrained oncooperativemanagement ofmicrohydro

55participantstrainedoncooperativemanagementofmicrohydro

TrainingReport

Output4.1:Createdaknowledgebaseoftechnicalchallengesandopportunitiesinthedesign,manufacture(formicro-hydro(+60kW)andmini-hydro),installationandafter-salesserviceinmicro-hydro(60+kW),mini-hydroandlargescalesolarPVsystems

No.ofmonitoringandqualityassurancemechanismandframework

NA

1gapanalysis,1monitoringsystem,2qualityassurancemechanism,1frameworkdeveloped,and1workshopconducted

1gapanalysisonmanufacturingofminihydrocomponentsinthecountrycompleted.

NA NA 1gapanalysisonmanufacturingofminihydrocomponentsinthecountrycompleted.

Gapanalysisreport

2monitoringandqualityassurancemechanismformini/microhydroandsolarPVdeveloped.

NA NA

2monitoringandqualityassurancemechanismformini/microhydroandsolarPVdeveloped.

Sustainabilityframeworktestedand1workshoporganizedtofinalizeit.Pilotingon10MHPsinitiated.

Sustainabilityframeworktestedand1workshoporganizedtofinalizeit.Pilotingon10MHPsinitiated.

RemotemonitoringsystemforlargeSolarPVdeveloped.

Installationof3RemoteMonitoringSystems

3RemoteMonitoringSystemscompletedinSindhuli,OkhaldhungaandKathmandu

3RemoteMonitoringSystemscompletedinSindhuli,OkhaldhungaandKathmandu

Installedsiteandcompletionreport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

PowerOutputVerificationGuidelinesofAEPCupdatedandPOVforminihydroincluded.Trainingforengineersinitiated

66engineerstrainedonfieldlevelmonitoringsystem

66engineerstrainedonfieldlevelmonitoringsystem

TrainingReport

RemotemonitoringsystemforsolarPV

RemotemonitoringsystemforsolarPVdeveloped

RemotemonitoringsystemforsolarPVdeveloped

Software

Output4.2:Fullytrained,skilledandtechnicallycapablepeopleavailableforprojectidentification,feasibilitystudiesanddetaileddesignofmini-hydroandlarge-scalesolarPVsystems

No.oftrainingandmanualsfordevelopingskilledandtechnicallycapablepeople

NA

4trainingand2manualsprepared

1trainingondesignofminihydrocompleted.25engineersweretrained.

Preparation ofPower OutputVerification(POV)Guidelineandtraining

POV Guidelineprepared and 25engineerstrained

POVGuidelinepreparedand50engineerstrained

POVGuidelineandTrainingreport

10engineersfromsolarequipmentvendorsweretrainedondesigninglargesolarPVinstallations.

Orientation toPVPSTechnicians

Orientation to 11PVPSTechnicians

10engineersfromsolarequipmentvendorsweretrainedondesigninglargesolarPVinstallationswhile11PVPStechniciansoriented

Trainingandorientationreports

Output4.3:Fullytrained,skilledandtechnicallycapableminihydromanufacturersinidentifiedareas

No.ofnewtechnologiesforminihydro

OldELC,DLC,and

Turbine

2ELC,2DLCand1turbinetechnologydesigned

DigitalELCformicrohydrodevelopedandtestedinthelaboratory.

ImplementationofdigitalELConpiloting of gridconnection ofMHP

Procurementprocessongoing

Digital ELC formicro hydrodeveloped andtested in thelaboratoryProcurementprocess to

Reports


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

andtheirafter-salesservices

implement digitalELCongoing

Output4.4:Fullytrainedandtechnicallycapableconstructionandinstallationteamswithincompaniestoimprovequalityofinstalledmini-hydroprojectsandlargesolarPVsystem

No.oftrainingforinstallationoflargemicrohydro

NA1trainingconducted

Trainingoninstallationoflargemicrohydropowerplantswith20participantsconducted. NA NA

Trainingoninstallationoflargemicrohydropowerplantswith20participantsconducted.

TrainingReport

TrainingmanualfordesignandinstallationoflargesolarPVsystemsisbeingprepared.

TrainingmanualfordesignandinstallationoflargesolarPVsystemsisbeingprepared.

Manual

NAHouseWiringTraining

30 technicianstrained on housewiring at RukumandBiratnagar

30 technicianstrained on housewiring at RukumandBiratnagar

TrainingReport

NA

Refreshertrainingonmicrohydrooperators

63 micro hydrooperators trainedon operation ofmicrohydro

63 micro hydrooperators trainedon operation ofmicrohydro

TrainingReport

Output4.5:Fullytrained,skilledandtechnicallycapablepeopleavailableforoperation,maintenanceandbusinessmanagementofmini-hydroprojectsandlargescalesolarPV

No.ofpeopletrainedinminihydro,largemicrohydroandlargescalesolarPVsystem

NA

60peopletrainedand3trainingsconductedonREasbusiness

NA

Conduct microhydro operatortraining

29 micro hydrooperators trainedon managementandoperation

29 micro hydrooperators trainedon managementandoperation

TrainingReport

ConductO&MtrainingforEQaffectedMHP

17microhydrooperatorstrainedonmanagementandoperation

17microhydrooperatorstrainedonmanagementandoperation

TrainingReport

ConducttrainingonbusinessmanagementforMini-hydroandlarge-scale

29womenentrepreneurstrainedonbusinessmanagementtraining

29womenentrepreneurstrainedonbusinessmanagementtraining

TrainingReport


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Outputstatement

Outputindicator

Baseline


Progressupto2016

2017Milestone

2017Progress


2017

Meansofverification

solarPVsystems

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6. BUDGETANDEXPENDITURE Thefollowingtableshowstheoutputwiseindicativebudgetandexpenditurefor2017andthesourcesoffundsbudgetedandutilized.

Table8:Outputwiseannualbudgetandcorrespondingexpenditure AmountinUS$Output Annual

BudgetAnnualExpenditurethroughproject

AnnualExpenditurethroughUNDP

TotalExpenditure

BudgetUtilization%

Output1.1 56,050 46,641 0 46,641 83%Output1.2 8,600 8,167 0 8,167 95%Output1.3 6,800 6,747 4,000 6,747 99%Output2b.1 506,100 503,547 9,550 513,097 103%Output2b.2 49,000 49,034 0 49,034 100%Output2b.3 217,235 112,453 94,871 207,324 96%Output2b.4 40,500 39,669 0 39,669 98%Output2b.5 20,500 20,400 0 20,400 100%Output3b.1 21,500 21,140 0 21,140 98%Output3b.3 500 456 0 456 91%Output3b.5 45,300 36,189 0 36,189 80%Output3b.7 11,000 11,853 0 11,853 108%Output4.1 3,150 2,975 0 2,975 94%Output4.2 7,200 7,005 0 7,005 97%Output4.3 2,000 1,897 0 1,897 95%Output4.4 9,200 9,193 0 9,193 100%Output4.5 42,000 40,796 0 40,796 97%SEforALL 71,035 44,319 17,362 61,681 Programsupport 203,850 133,687 58,645 192,332 99%

Total 1,321,520 1,096,168 184,428 1,276,596 97%

Table9:SourcesoffundsBudgetandUtilizationoftheprojectperiod

`

Fundingperiod(Start–EndDate)

TotalProjectBudget

Expenditureupto2014 Expenditure

upto2015Expenditurein

2016Expenditurein

2017

Totalexpendituretill

2017

TotalBudgetutilization%

BudgetBalanceUS$

UNDP July2014–Dec2019 2,000,000

66,946355,601 297,054 796,624 1,516,225 73% 1,280,573

Donor1GEF

July2014–Dec2019 3,000,000

144,846737,836 1,325,606 420,502 2,628,790 88% 793,395

Donor2Korean

Jan2015–June2016 99,269

099,269 0 0 99,269 100% 0

Donor3:Norwegian(SEforALL)

Dec2015–Dec2017 378,000

00 79,043 59,470 138,513 37% 298,785

Total 5,477,269 211,792 1,192,706 1,701,703 1,276,596 4,382,797 298,785

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Table10:M&EExpenditure

TotalspentonMonitoringCostsassociatedwithUNDP/projectstaff,consultants,projectpartners,supportingnationalstatisticalsystemsindesigningprojectspecificdatacollectionmethodologies(qualitativeandquantitative),monitoringmethodsincludingstakeholdersurveysandotherqualitativemethods,collectionofdata,analysisanddisseminationofthefindingstoinformaproject,eitherwithprojectpartnersortofulfillspecificUNDP/projectrequirements(preferablytheformer).

Total cost spent on project staffandmonitoringvisit indifferentprojectareas=USD76,403

TotalspentonDecentralizedEvaluationsCostsassociatedindesigning,implementinganddisseminatingevaluationsforspecificprojects

USD5,670spendforimplementation,upgradingandevaluationfortheprojectactivities

CombinedtotalspentonM&E USD82,073 NarrativeonProgressrelatedtoBudgetandExpenditureIn2017,RERLallocatedUSD1,250,485(excludingSE4ALLactivities)tocarryoutvariousactivitiesofwhichUSD800,000wasfromUNDP’sTRACfundandUSD450,485fromGEFfund.ThisyearRERLutilized97%oftotalbudget.7. CROSSCUTTINGISSUES

7.1 Targetingandvoice/ParticipationofTargetgroupsThemaintargetgroupsofRERLsupportarepeoplelivinginoffgridareas.AllRERLactivitiesarerelatedtopromotion of larger renewable energy systems for provision of modern energy in such areas throughenabling environment for participation of the private sector in project development. Further, at theoperationallevel,RERLhashelpedAEPCtoprepareGESIsensitiveSpecialPurposeVehicle(SPV)formationguidelines,whichensuresequalparticipationofwomenandmarginalizedgroupsindecisionmaking.TherevisedRESubsidyPolicyandDeliveryMechanismprovidesadditionalfinancialassistancetovulnerableanddisadvantagedgroups,peopleliveninginremotelocationsandwomenheadedhouseholds.7.2 GenderEquality,Women’sEmpowerment,andSocialInclusion

Towardsachievingthenationalgoalofbuildinganequitableandgenderinclusivesocietybyensuringequalrights towomenandmenofall castes, creedandregions in thesocial,politicalandeconomicaspectsofnationaldevelopment,AEPChasbeenpromotingGESIsensitiverenewableenergyprojectsandproductiveend-use applications. The revised subsidy policy and delivery mechanism provide additional financialassistancetosinglewomenheadedandotherdisadvantagedhouseholds.

RERL has been supporting AEPC to mainstream Gender and Social inclusion (GESI) in RE projects,particularlyminihydro,largemicrohydroandsolarPVsystemstobenefitmarginalizedgroupswithaccesstoelectricityandincomegeneratingactivities.RERLhasbeenworkingwithextremelymarginalizedChepangcommunityinDhadingdistricttosupportthemwithaccesstoelectricityfromsolarPVsystems.Likewise,

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RERLiscurrentlyworkingwithChepangcommunityinMakwanpurdistricttoinstallsolarpumpingsystemsunderthePublicPrivatePartnershipmodality.

RERLhasprovidedtrainingsto141womenentrepreneursonBusinessManagementtobuildknowledgeonbusinessmanagement,particularlyonentrepreneurship,bookkeepingandmarketingofproducts.RERLhasalsobeenworkingonmodification/adaptationandfieldtestingofproductiveusetechnologiestofit the rural context formarginalizedpopulation. In2017,LoktaDryerwas fabricatedand installed.Thistechnology helps reduce dependence on natural sunlight for drying lokta paper which is unpredictableduringthewinterandmonsoonseasons.7.3 NationalCapacityDevelopmentRERL has been working mainly on capacity development of AEPC to develop plans, implementationmodalities and implementation management of their respective components. The project has beensupportingAEPCtopromotelessdisseminated,yethighlyfeasible,renewableenergytechnologieslikeminihydro,largemicrohydroandlargescalesolarPVandproductiveenergyuses.In2017,RERLsupportedAEPCtodraft roles and responsibilities of different levels of government related to alternative and renewableenergyandsmallhydro.ThishasbeenreflectedintherecentlypromulgatedLocalGovernmentOperationsAct2017.Besides AEPC, RERL has also been working with relevant governmental agencies to promote lessdisseminatedREtechnologies likeminihydroandlargesolarPV.AEPC,NEAandDoEDhavejointlybeendevelopingdesignguidelinesforgridconnectedofmegawattscalesolarPVsystemswithkeyinputsfromRERL.RERLisessentiallyanationalcapacitydevelopmentprojectaimedtoproviderequiredcapacityforNPCandrelevant government stakeholders to implement and realize SEforALL objectives in the nationaldevelopmentagenda.Ittargetstoenhancemulti-stakeholdereffortstobringsynergisticactivitiestoachievethecommongoal.EnergyhasbeenthecoretothedevelopmenteffortsofNepalandthegovernmenthasexpresseditscommitmentforthisinitiativeaswellasSDG7.TheprojectsupportedNepaltoparticipateinCOP23heldinBonn,Germany.Oneofthemajoroutcomesofthiseventisthedecisionbytheleastdevelopedcountries(LDCs)toinstitutionalizeRenewableEnergyandEnergyEfficiencyInitiative(REEEI)tomeetSDG7targets.7.4 Sustainability Theprojecthasbeenstrengtheninglegal,institutionalandpolicyenvironmenttosupportrenewableenergyandotherlow-carbontechnologydevelopmentandutilizationthroughformulationofpolicy,planningandinformation dissemination that would create an enabling environment especially for promotion ofminihydro and solar mini grid systems. In terms of enhancing renewable energy financing, RERL has beenworkingcloselywithCentralRenewableEnergyFund(CREF)toestablishdifferentfinancialinstrumentstoattract private investment in larger RE projects. The project has been aligned with AEPC’s mandate,objectivesandactivities.AdetailedstudywasconductedonBFIsinvestmentsinREingeneralandruralareasforaccesstoelectricitywhich recommended various instruments including establishment of SPV under the Public PrivatePartnership(PPP)modelinvolvingtheprivatesector, localgovernmentandcommunityorganizationsforbuilding,operatingandmanagingdemonstrationprojects.FinancialInstrumentssuchassoftcredit,creditguarantee,vendorfinancing,projectinsurance,amongotherswerealsorecommendedbythestudy.RERLinitiatedestablishmentofvendorfinancingmechanismatasmallscaleforpromotinghouseholdlevelsolarirrigationandworkedjointlywithUNCDFtoprepareVendorFinancingManualforscalingup.Tomake

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surethatCREFisfullyoperational,RERLandUNCDFhavebeensupportingthepreparationofitsbusinessplanspellingoutitsareaofoperationandresourcesrequired.Itisenvisagedthattheseactivitieswillsupporttoremoveexistingbarrierstoprojectfinancingfromtheprivatesectorandinjectmorecreditintoprojectsthusmoving from a subsidy drivenRE promotion to amoremarket driven approach ensuring financialsustainability of the promoted systems, which will ultimately enhance the livelihood opportunities andoptionsforlocalcommunities.Theprojectwillensurethatanumberofmicro,smallandmediumenterprises(MSME)are functional in theREproject areasandconsumesubstantial amountof electricitywhichalsocontributes to financial sustainability of RE projectswith affirmative interventions to promotewomen’sorganizations and women-led business to have access to finance for operating MSMEs. To develop thecapacitywithinthecountryforlargersolarPVandminihydropowerprojects,RERLhasbeensupportingprivatecompanies,consultants,engineersandtechnicianswithskilltrainingandestablishedguidelinestoensureatleast33%participationwerewomen,marginalizedandpeoplefromvulnerablecommunities.Sofar,93engineers,ofwhich8women,weretrainedonlargescaleSolarPVforgridconnection,PowerOutputVerificationofmini/microhydro,MHPoperationandmanagement,andREfinancing.7.5 South-SouthandTriangularCooperationHydro Power Empowerment Network (HPNET) is a forum mainly of practitioners, hydropower policymakersandhydropowerregulatorsofSouthAsiaandSouth-EastAsia.RERLhasbeenengagedwithHPNETfor more than 2 years in several activities and has prepared Frequently Asked Questions (FAQ) to bepublishedontheHPNETwebsitefocusingonvariousmisconceptiontogridconnectionofMHP.RegionalmeetingonSustainableEnergyforAsia-PacificLDCcountrieswasjointlyorganizedbytheUNOfficeof theHigh Representative for LDCs, LLDCs and SIDS (UN-OHRLLS) and the Government of Nepal,withsupport fromUNDPNepal CountryOffice on 22 and 23March 2017 in Kathmandu. The SEforALL teamprovided substantial inputs in preparation and organization of thismeeting. The RegionalMeetingwasaimedatbuildingnationalleadershiponenergysectorandcreatingstrongermulti-stakeholderpartnershipstoimproveaccesstofinance.TheSEforALLimplementationagenda,SDG7implementationprocess,projectdevelopmentandfinancing,andopendiscussionamongkeystakeholderswerethemajorhighlightsoftheprogram. Theworkshop brought together key stakeholders in the energy sectors fromAsia Pacific LDCcountries, international organizations and the private sectors to share knowledge and experiences anddisseminatebestpracticesfromaroundtheregion.7.6 PartnershipsTheWorldBank:AlternativeEnergyPromotionCentre (AEPC)has been implementing theWorldBankfundedRenewableEnergyComponentofKabeliTransmissionProjectinTaplejung,withadditionaltechnicalassistancefromRERL.This includes installationof900kWminigridproject interconnecting8MHP.Themini grid, once completed will provide electricity to the district headquarters benefiting over 2000households.UNESCAP:UnderPro-PoorPublicPrivatePartnership(5p)Modality,18kWBaidiSolarMicroGridhasbeeninstalledinDubung,Tanahunbenefiting140households.ThisprojectisthefirstoneinNepaldevelopedbyaSPV,andownedbybeneficiarycommunityandaprivatecompany.RERLhashelpedtheSPVtopreparebusinessplansof20enterprises.Inaddition,RERLhasalsobeensupportingAEPCtopromoteSolarPVbasedwatersupplysystemsinRaksirangVDCofMakawanpurdistrictunderthe5PprojectbyleveragingUNESCAPfinancialassistance.UNEP/ Practical Action Consulting Ltd.: With technical assistance from AEPC/ RERL and financialassistancefromUNEP,PracticalActionConsultingLtd.carriedoutacasestudyofmini/smallhydropower

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(bothoff-andon-grid)inNepaltosupportAEPCinformulatingpoliciesandimplementatingaframeworktopromote mini hydro projects in Nepal. The case study documents and shares experiences of differentbusinessmodelsforboth‘onandoff-grid’minihydrodevelopment;andexploresrolesofvariousenablersandstakeholderstocreateanenablingenvironment.UNDP/Norway:RERLhasbeenassistingUNDPto implementSE4ALLactivities inNepal.GovernmentofNorwayhas provided financial assistance to carry out different activities under SE4ALL. So far, CountryActionPlanhasbeenpreparedandsharedwithdifferentstakeholders.UNCDF:RERLandCleanStartofUNCDFhavebeensupportingCREFtoprepareitsBusinessPlanthatwillhelp to chart the way forward. Likewise, RERL and UNCDF are preparing Vendor Financing Manual topromotesmallREsystemsthroughprivatesectorinvolvement.In2017,RERLandUNCDFsupportedCREFtoestablishVendorFinancingChallengeFund.TheFundhasalreadycalledforproposalsfrominterestedprivatecompanies.7.7 PromotionofcivicengagementAtthefieldlevel,RERLhasdirectlybeenworkingwithbeneficiariesfollowingthemuch-acclaimedREDP’scommunityempowermentmodel -where thecommunityprovidedcloseandconsistentsupport tobuildtheircapacityandtoengageinallaspectsofservicedeliveryrangingfromprojectidentification,planning,implementation,management,operationandmonitoring.

RERL has been supportingmunicipalities to preparemunicipal energy plans in participatory approach,engagingindividuals,electedofficials,civilsociety,privatesectors,governmentallineagenciesanddonors. 7.8 ExpandingopportunitiesforyouthAccesstoelectricityinruralareasbringsopportunitiestoestablishvarioustypesofenterprises.RERLhasbeensupportingProductiveEnergyUseComponent(PEUC)ofAEPCtopromoteenduseactivities,whichtypicallyattractyoungmenandwomeninterestedinstartingtheirownbusiness.Poultry,carpentry,metalshop,bakery,communicationcentersandagro-processingmillsarethemostpopularenterprisesinruralareas.

In 2017, the Hult Prize Challenge provided the opportunity to host a local Hult Prize event on campusallowingthewinningteamtofasttracktheirideasthroughregionalfinalsofthecompetition.ThechallengeforHultPrizewastobuildascalable,sustainableenterprisethatharnessesthepowerofenergytotransformthelivesof10millionpeopleby2025.RERLsupportedthreeHultPrizeEventsinPokharaUniversity,SchoolofManagement,TribhuvanUniversityandInstituteofEngineering,PulchowkCampus.Moreover, RERL has been providing internship opportunities to young professionals to be involved inrenewableenergyrelatedactivities. In2017,onefemaleengineerworkedwithRERLtofinalizetechnicalguidelinesandcollectionofhouseholdinformationonenergyconsumption.7.9 InnovationRERLhasbeenattheforefrontininnovatingtechnologiesaswellasapproachesforpromotionofrenewableenergyinNepal.ThisincludesremovingbarriersforpromotionoflargescaleREsystemssuchasminihydroand large solar PV projects. RERL has also been supporting AEPC for sustainable operation of microhydropowerprojects.Inthisregard,RERLhascomeupwiththeconceptof‘RenewableEnergyforEnterprisePromotionandRenewableEnergyPromotionasanEnterprise’.ThemainconceptwastolookatREprojects

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not only as social infrastructures but also as profit making assets. RERL has been piloting MHP as anenterpriseconceptinseveralMHPsbystrengtheningtheinstitutionalcapacities,exploringopportunitiesforoptimumutilizationofelectricityandbuildingpositiveincentivesinmanagementprocesses.RERLhasalsobeenworkingonadaptationormodificationof technologies to fit theruralcontext.Theseproductive end use technologies help fuel switching from traditional biomass to electricity. Thesetechnologieshavebeenunderfieldtestingforwiderdisseminationamongstakeholders.Topromotetheuseofinformationandcommunicationtechnologies(ICT)inallaspectsofrenewableenergydevelopment,RERLhasbeenworkingwithyounginnovatorsinNepaltodevelopmobilephoneapplications.RERLdevelopedbothAndroidandiOSbasedNepalSolarCalculatorthatallowedcalculationofsolarpowerrequiredandinformationoncosts,subsidyandnearestvendors.In2016,incollaborationwithInternationalCentreforMountainDevelopment(ICIMOD),smartphoneapplicationsforfieldsurveyofminigridprojects(microhydroandsolar),calculationofareaforrooftopsolarPVinstallationandremotemonitoringofsolarPV systemswere developed. These applicationswill be used in project identification and pre-feasibilitystudies. 7.10 KnowledgeManagementandProducts

• LocalGovernmentOperationsAct2017• MethodologyforMunicipalEnergyPlan• RenewableEnergySurveyTool(REST)• DocumentaryonSnakeBiteTreatmentCenter• http://www.aepc.gov.np• http://np.undp.org/RERL• http://www.undp.org• http://kathmandupost.ekantipur.com/news/2016-11-04/puffs-of-hope.html• http://epaper.thehimalayantimes.com/index.php?pagedate=2017-5-

28&edcode=71&subcode=71&mod=1&pgnum=2• http://reliefweb.int/report/nepal/united-nations-nepal-news-insight-may-jun-2017-vol-64• http://nagarikplus.nagariknews.com/epaper/src/epaper.php?id=3072#page/20• http://peeda.net/downloads/energy-insight-a-yearly-publication-of-peeda-volume-iii-2016/8. LESSONSLEARNED

Asprivatedevelopershaveverylimitedspacetoworkinsmall-scalerenewableenergysystemsinNepal,thereisagenerallackofknowledgeandexperienceamongboththegovernmentandtheprivatesector.Asapilot, two projectswere completed by AEPC recently, inwhich, private companies partneredwith ruralcommunities inTanahunandKhotang toestablishSpecialPurposeVehicleanddevelopsolarminigrids.These systems connected 223 communities with electricity. Further, RERL partnered with WinrockInternationaltopromotehouseholdsizesolarirrigationsystemsinChitwandistrict.AlltheseexperiencesindicatethatthereareentrepreneurswillingtoinvestinREgivenanenablingandfavorableclimate.Privatesectorattractedtotechnologiesandsystemsthathavestrongreturnsoninvestmentandarescalable.Toencourage private investment, projects should be carefully selected, financing arrangements should beproperlydesignedandbureaucraticred-tapismmustbereduced.Thereisampleevidencethatsomeprivatecompaniesarewillingtotakereasonableriskstopromotetheirtechnologies.FrequentchangesinNPCanditssecretariatstaffhaveaffectedtheworkprogressofSEforALL.AssignmentofdesignatedfocalpersonforSEforALLwouldhelpalleviatethehumanresourcegaps.

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9. IMPLEMENTATIONISSUESANDCHALLENGES

• ReluctanceofBFIsinprovidingcredit:BanksandFinancingInstitutions(BFIs)inNepalareriskaverseand do notwant to invest in renewable energy systems in rural areas, particularly those owned andmanagedbyacommunity.AnRERLstudyidentifiedreasonsfortheirriskaversenessandrecommendedseveralfinancialinstrumentstoattractBFIinruralenergyinvestment.RERLhasbeenworkingwithCREFtodevelopandestablishfinancinginstrumentssuchassoftcredit,creditguarantee,vendorfinancing,andprojectinsuranceamongothers,toattractBFI’sinvestmentinrenewableenergysystemsinruralareas.

• Delayinapprovalofsubsidyanddeliverymechanism:RevisionofRESubsidyPolicytookmoretimethanexpectedduetofrequentchangesingovernment.ThisdelayhasaffectedfinancialclosureofRERLsupportedprojectsandthusimplementation.Asthegovernmenthasrecentlyapprovedboththepolicyanditsdeliverymechanism,itisexpectedthatprojectimplementationin2017willbefasterthanin2016.

• CREFnot fully operational: Credit facilities are necessary to attract private investment and achievetimely financial closureof largerprojects likeminihydro.Lackof available creditwithCREFhasalsohamperedontimefinancialclosure.AEPCisforwardingcreditfacilitytoCREFfromADBfundedSASECtopromoteminihydroandsolarminigrids.ThiswillhelpinachievingfinancialclosureofRERLsupportedprojectstoo.

• AdoptionofPEUinREProjects:Reliabilityandqualityelectricitysupplywerefewofthemajorreasonsfor reluctance of rural entrepreneurs to invest in productive energy use enterprises in RE projects.Further,lackofprofessionalmanagementofcommunityownedREsystemsandlimitedmarketinruralareasforlocalproductshavealsobeencitedasreasonsforlowinvestment.RERLhasbeenworkingwithPEUCofAEPCtorealizetheconceptofenergyasanenterpriseaswellasforenterprises.Forexample,the83kWDarnaMHP,AchhamisoperatedasanenterpriseandwillexportpowertoneighboringKalaGaunVDCwhichdoesnothaveresourcesofitsowntoproduceelectricity.Itisexpectedthatwithextensivesupportonawareness,capacityenhancementandtransparentgovernance,mostoftheMHPssupportedbyAEPCcouldbeencouragedtowardscommercialoperation.

• SEforAll:SEforALLprojectpersonnelhavenotbeenabletobephysicallypresentatNPCduetolackofofficespace,afterNPCSecretariatbuildingwasseverelydamagedin2015.Aftertheearthquake,NPC’spriorities focused on recovery and reconstruction, which has affected SEforALL activities. Similarly,frequent changes in NPC leadership and alterations in responsibilities of officials have affectedimplementationofSEforALLcapacitybuildingprojectactivities.Inspiteofthechallenges,adraftCountryActionAgendahasbeenpreparedandsharedwithstakeholders.

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10. PRIORITIESFOR2018• RenewableenergyinFederalstructure

- CapacityDevelopmentofLocalandProvincialGovernments- PreparationofMunicipalEnergyPlan- PreparationofDraftAEPCActandTransitionalPlan

• DemonstrationProjects- 1.5MWMiniHydroDemonstrationProject- TaplejungMiniGrid- GridConnectionofLeguwaKhola&ChimalMHPs- KfWfundedPVPS&SASECfundedSolarMiniGrid

• OperationalizationofREFinancingInstruments- FinancialClosureofMiniHydroProjects

o PhawaKholao LowerBomKholao KhtayadKholao PatrasiKhola

• CommercialOperationofMHPs- DemandSideManagement–Pre-Paid&SmartMeterinstallation- InstitutionalStrengthening- BusinessManagementTraining- ComputerizedBillingSystem- DecentralizedMHPOperator&ManagerTraining

• GESI- Electriccooking,water&spaceheating–fieldtesting- Skilltrainingforwomenandmarginalizedentrepreneurs

• MiniHydroManagementTraining• TrainingforPrivateSectoronMiniHydroProjectDesign,InstallationandAfterSales

Services

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11. ASPECIFICSTORY

Mr. Poorna Gurung, resident of Gandruk, Kaski, Central Nepal, was inspired to start a business utilizing the lokta plant, daphne, which is abundantly available in the local area. Lokta plant grows at an altitude between 1600 and 4000 meters in the hills of Nepal. The evergreen shrub is used to make handmade paper. In 2002, Mr. Gurung set up a factory in his family field by investing NPR 400,000. After the lokta bark is cleaned with a knife, it is soaked in water for five hours. Then, it is cooked in a solution of hot water and soda for three hours. A beater machine turns the fiber into pulp slurry, which is then poured into wooden frames. After a few minutes of soaking and shaking in the vat, the frame is placed under the sun to dry to make paper, which is a prized item as it is durable, resistant to insects and moths, and non-perishable. It is for this reason that for centuries, lokta paper has been used for record-keeping in government offices across Nepal. Nowadays, however, the paper has been used for making different products, including prayer flags, restaurant menus, wallpapers, certificates, traditional incense wicks, cards and binding books. For years, Gurung had used firewood to boil the raw material. It was not only cumbersome, but also detrimental to the environment. “It was expensive in many ways. I had to spend NPR 2,000 on firewood, which needed to be chopped into smaller pieces. And while cooking, one had to constantly blow air into the hearth,” he recalled. With support from the Alternative Energy Promotion Centre (AEPC), Mr. Gurung bought a beater machine and an electric lokta boiler, which was locally fabricated with AEPC funding. He received NPR 78,750 as a subsidy from AEPC and the 50-kilowatt Bhurgyu Khola Micro Hydropower Project, which started generating electricity three years ago, electrified his factory. The electric boiler has not only replaced firewood but has also reduced boiling time by almost half, making the work more efficient. A group of five local Dalit women, most of them single mothers, is Gurung’s reliable and skilled workforce. Among them is Ms. Sita Bishwakarma, who has proven to be a great manager, overseeing the entire production processes. Ms. Bishwakarma, who earns a monthly salary of NPR 7,000, says the money is enough to support her family of three, including her children’s education. “We used to work the field and it was very hard to survive with what we earned. This is far better,” she says.

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12. RISKANDISSUELOGS

Table11:RiskandIssueLogMatrix

S.N.

Description Category(financial,political,operational,

organizational,environmental,

regulatory,security,strategic,other)

Likelihoodofrisk(scaleof1to5with5beingthemostlikely)

A

Impact(scaleof1to5with5beingthehighestimpact)B

Riskfactor(AxB)

Mitigationmeasuresifriskoccurs

DateriskisIdentified

LastUpdated

Status

1 ThenewConstitutionofNepal2015envisages7provincesand744municipalitiesinthecountry.REistheresponsibilityofthemunicipalities.Inthiscontext,AEPC’srolerelatedtoREprojectsdevelopmentandimplementationisstillunclear.

PoliticalandRegulatory

3 5 15 RERLisactivelyworkingwithAEPCandothergovernmentalagenciestodefinerolesandresponsibilitiesofinstitutionsatdifferentlevelsofgovernanceviz.municipalities,provincesandfederal.Inthisregard,insteadofpreparing15DEMP,RERLwillworkwithmunicipalitiestoprepare15MEMP.However,duetothemunicipalelections,theyareyettobefullyoperational.ThiswilldelayRERL activitiesatthelocallevel.RERLhasbeensupportingrecentlyelectedmunicipalpersonneltounderstandREdevelopmentin Nepal andtheirrolesandresponsibilities.

October2015

December2017

LocalGovernmentOperationActMethodologyofMunicipalEnergyPlan

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2 Thishasdelayedfinancialclosureandconsequentlyprojectdevelopment.Toovercomethissituation,AEPCrecentlydecidedtobroadenitsbankingpartnersbeyonditsexisting7partnerbanksbymakingall28Class‘A’and‘B’bankseligibletoinvestinREprojects.

Financial 5 5 25 AlthoughRERLsupportedCREFtodesignandestablishnewfinancialtoolssuchassoftcredit,creditguarantee,vendorfinancing,etc.,creditflowfordemonstrationprojectshavenotbeenforthcomingasexpected,onlyoneminihydropowerprojecthasachievedfinancialclosure.IthasbeenfoundthattheCREF’spartnercommercialbanksarequiteconservativeandriskaverseespeciallywhenitcomestoinvestingincommunityownedREprojects.

14October2017

14October2017

• Delayinfinancialclosureofminihydroprojects

3 NRREP,thebaselineprojectofRERL,hasphasedouton30June2017.Theprojectwasnotabletoachievemanyofitsambitioustargetsincluding25MWsof

Operational 3 3 9 AEPChasdevisedamechanismforSASECandRERLtocoordinatetheiractivitiesfordevelopmentofminihydroandsolarminigridprojects.ItisexpectedthattheRERLtargetswillbemetfromtheseprojectswithfinancialsupportfromSASEC.

30June2017

December2017

• REprojectsarenotfinanciallyattractive

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mini/microhydro.ThishasadverselyaffectedRERLtargetstoo.

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Table10:IssueLogMatrix

S.N. Type DateIdentified

DescriptionandComments

Resolutionmeasuresrecommended

Statusoftheissue StatusChangeDate

1 Geo-politicalchangesduetostateRe-structuring

December2017 Delayinimplementationofprojectactivitiesduetolongtransitionperiod.Municipalitiesareyettobefullyfunctional.

AEPC/RERLwilltakeinitiativetoorientprovincialandLocalGovernmentstoinitiateREactivities.

RERLisactivelyworkingwithAEPCandothergovernmentalagenciestodefinerolesandresponsibilitiesofinstitutionsatdifferentlevelsofgovernanceviz.municipalities,provincesandfederal.

March2018

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13. PROGRESSAGAINSTANNUALWORKPLAN2017

UNDAFOutcome2:Vulnerablegroupshaveimprovedaccesstoeconomicopportunitiesandadequatesocialprotection UNDAFOutput2.4:Vulnerablegroupshaveimprovedaccesstosustainableproductiveassetsandenvironmentalservices UNDP/CPAPOutput2.4.1:AlternativeEnergyPromotionCentre'scapacityenhancedforscalingupenergyservicesinruralareas

EXPECTEDOUTPUTS

Activities PlannedActivities DonorName AnnualachievementsofTargets

Annual achievements

of Targets

in %

ApprovedBudget

fromAWP

AmountSpent

%ofexpenditureagainsttheapproved

budget

Remarks(if

targetnotfully

achieved)

ActivityResult1:Strengthenedlegal,institutional,policy,planning,

andinformatio

nenvironm

entensuresincreased

REinvestmen

tandutilization

AnnualTargets:Comprehe

nsive

Activity1.1.1SupportpreparationandadoptionofpolicythatenablesPPPmodelformini-hydro,micro-hydromini-grid,andlarge-scalePVdevelopment,thusattractingtheprivatesectortosuchprojects

InstitutionalArrangementinFederalstructure

GEF

• WorkshoponNepal'sRenewableEnergyinFederalContextconducted

100% 1,000 1,017 102%

• StudyonInstitutionalArrangementforREinLocalDevelopmentActinFederalStructurecarriedout

100% 2,500 2,419 97%

NationalWorkshoptodisseminatePPPapproachfordevelopmentofMini/MicroHydro

GEF

• Interactionworkshopon“opportunityandchallengesofmicro/minihydroprojectpromotioninoff-gridutilitymodel”conducted

100%

2,800 2,743 98%

ProjectImplementationModelforPrivateSectorLedMiniGridEnergyaccessProject(PPPmodel)

GEF

• PreparationofprojectOperationalManualforSREP-SupportBusinessModelforPrivateMiniGridEnergyAccessProjects

100%

2,350 2,350 100%

1,000 971 97%

Activity1.1.2Supportpreparationandadoptionofpolicyforfuturegridconnectionofoff-

TechnicalSpecificationforGridconnectionofSolarPV

UNDP

• Standards&TechnicalSpecificationsforGridInterconnectionofMHPupdated

100%

5,000 4,834 97%

GEF • MeetingondraftPOMforABCProjectsorganized

700 667 95%

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RenewableEnergyPolicy

Formulated

gridmini-hydro,micro-hydromini-grid,andlarge-scalesolarPVsystems

EconomicandFinancialViabilityofMHP

GEF

• Financial&EconomicAnalysisofMHPrelatedfieldworkongoing 75% 7,000 0 0%

• TechnicaleditingofRETguidelinesanddatacollectionofQualityofaccesstoenergy

100% 1,500 1,450 97%

Activity1.2.1:PreparemethodologyforintegratingminihydroprojectsandlargescalesolarPVsystemintodistrictenergyplans.

Supporttoprepare15MunicipalEnergyPlan

UNDP

• MethodologyforGISbasedDistrictEnergyMasterPlandrafted 100%

5,000 4,782 96%

100 54 54%

UNDP • ConceptofBestAvailableTechnology(BAT)prepared 100%

2,500 2,409 96%

1,000 922 92%

Activity1.3.3CompletedtrainingandawarenessprogramsforrelevantgovernmentagenciesandstakeholdersonminihydroandlargescalesolarPVsystem

WorkshoponMiniHydroinNepal UNDP

• OrientationforMiniHydroDevelopersconducted

100% 2,800 2,747 98%

KnowledgeSharingEvent UNDP • RERLsupportedthreeHultPrize

Events 100% - 4,000

Directpayment

UNDP

SubTotalActivityResult1 35,250 31,367 ActivityResult2:IncreasedinvestmentsinRE

TechnicalAssistance

Fund transfer to CREF for Technical Assistance

UNDP 100% 302,496 302,496 100%

Activity2b.1.1:UpdatethefeasibilitystudyoftheselectedMini-hydrodemonstrationprojectstomakeitbankable

DetailedFeasibilityStudyofMiniHydroProjects

GEF

• StudyonInitialEnvironmentalExamination(IEE),

100%

4,200 4,219 100%

• DetailedTopographicalSurveyandHydrologicalfieldinvestigation,Pre-feasibility,DetailedfeasibilityofdifferentMHPs

100%

25,000 26,960 108%

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AnnualTargets:supportAEPCtoinitiate1MWminihydroprojects

Activity2b.1.2:SupporttoestablishandstrengthensuitableinstitutionalarrangementfordevelopmentandmanagementofminihydroprojectsincludingSPVmodel

Supporttoestablishinstitutions

GEF

• StructureandconstructiondrawingofBomandPatrasi,DetailedfeasibilityofdifferentMHPsandregistrationofMHPscompleted

100% 4,800 4,812 100%

UNDP • RegistrationofTaraKhola 100% 4,400 4,344 99%

GEF • RegistrationofBomKhola 100% 2,200 2,262 103%

UNDP • SPVformationof3minihydroprojects 100% 26,000 25,326 97%

GEF • TAforprojectdevelopersofMHPsandSolarminigridsubproject 100% 22,000 23,406 106%

Activity2b.1.5:AssistinachievingfinancialclosurebasedonPPPmodel

Supportfinancialclosureof5MiniHydroprojects

GEF• FieldvisitofBankersforfinancialclosureinTaplejung,RukumandDolakhaconducted

100% 3,000 3,133 104%

Activity2b.1.6:Providetechnicalassistanceforconstructionoftheproject

2MiniHydroProjects

GEF• TAtoAEPCforconstruction,

supervisionandimplementationofMHPsanddatacollectionofMHPS

100%

8,000 7,930 99%

GEF 1,000 976 98%

UNDP 6,500 6,477 100%

Activity2b.2.2:Providetechnicalassistanceforconstructionoftheproject

2minigrids GEF

• TAforTaplejungminigridandassessmentofMHPsfortheirsuitabilityininterconnectionandgridconnection

100%

11,000 10,934 99%

2,000 1,919 96%

25,000 25,040 100%

Activity2b.2.3:Supportforpilotinggridconnectionof2MHPs

2MHPs GEF• GridInterconnectionof23kW

SyaurebhumiMHPinNationalGridcompleted

100% 9,500 9,705 102%

500 460 92%

Activity2b.2.5:Documentanddisseminatelessonslearned

1documentary GEF • DocumentaryonDhadingSolarProject 100% 1,000 977 98%

Activity2b.3.2Conductdetailedfeasibilitystudyof

DetailedFeasibilityStudyconductedofselectedSolarPV

GEF • MonitoringandSupervisionof80solarPVsystemsandTAprovided 100% 27,000 28,264 105%

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selecteddemonstrationprojects

demonstrationprojects

DevelopSoftwareGEF • SoftwareapplicationforRE

surveytooldeveloped 100% 1,000 879 88%

GEF • EnergyHakathonEventorganized 100% 500 481 96%

AnnualTarget:SupportAEPCtoinitiate1MWminihydroprojects

Activity2b.3.7:Providetechnicalassistanceforinstallationoftheproject

PilotlowheadsolarPVpumpingprojects

UNDP • Rehabilitationofearthquake

damagedsolarPVpumpingsystems

100%

1,400

1,322

94%

UNDP 2,000 1,846 92%

GEF 5,800 5,727 99%

PilotE4H(solarvaccinestorages,healthcenter)

GEF

• SolarPVSystematsnakebitetreatmentcenterandHealthfacilitycenteratRukumandSalyaninstalled

100% 22,500 23,493 104%

PilotE4Ein1school GEF• SolarPVSysteminSahidChandeshworSchoolinDhanusainstalled

100% 6,500 6,587 101%

PilotsolarPVhamletselectrification UNDP • SolarPVsysteminMadanpur,

Sarlahiinstalled 100% 22,000 21,040 96%

PilotsolarPVgridinterconnection GEF • TechnicalverificationofSolarMini

GridatDhading 100% 10,000 9,740 97%

60 55 92% Activity2b.3.9:Documentanddisseminatelessonslearned

DocumentationsGEF • SuccessstoriesofREsolutionon

earthquakecompleted 100% 500 444 89%

GEF • DocumentaryonSnakeBiteTreatmentCentrecompleted 100% 2,400 2,372 99%

2b.3.10SupportforEarthquakereliefandrehabilitation

5.TAforreliefandrehabilitations 31DDCs

UNDP

• TAforAEPCtoimplementMHPs 100%

4,500 4,408 98%

GEF 1,500 1,492 99%

6.Solarsolutionforpublicinstitutions(VDC,healthpost,schools,communication,PVPS)

8systems

GEF• RehabilitationofearthquakedamagedsolarPVpumpingsystems

100% 4,300 4,301 100%

GEF • Installationof72SolarPVsystemindifferentinstitutions 100% 94,872

UNDPPAYMENT

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Activity2b.4.1AssistNRREPtoimplementtheprojects

TAforprojectimplementation

UNDP • TAforMHPimplementation 100% 12,000 11,854 99%

GEF • SupportforrehabilitationofKailashKholaMHP 100% 4,800 4,724 98%

GEF • Updated statusof30EarthquakedamagedMHPs 100% 1,000 810 81%

EQReliefandRehabMicroHydro Rapidassessmentofmicrohydrodamagedbyearthquake

100MHPs GEF • DetailedAssessmentofEarthquakedamagedMHP 100% 7,500 7,617 102%

Commercialoperationofmicrohydrodamagedbyearthquake

10MHPs GEF • CommercialOperationofMHPsandLiftIrrigation 100%

12,000 11,596 97%

800 722 90%

800 754 94% EQReliefandRehabMicroHydroandSolar

Documentary GEF • DocumentaryonReliefandRehab,E4E,TelkuwaIrrigationProject 100% 1,600 1,592 100%

Activity2b.5.1AssistAEPCtoimplementtheprojects

TAforprojectimplementation UNDP

• Pre-feasibilitystudyandDetailedFeasibilitystudyandtechnicalsurveyofMHP

100%

2,500 2,464 99%

18,000 17,936 100%

SubTotalActivityResult2 631,556 728,767

ActivityResult3:Improvedavailability

offinancialinvestmentsupportsforruralREand

otherlow-carbon

technology

Activity3b.3.4SupportProjectDeveloperstoprepareProjectBankableBusinessPlanandotherLoanDocumentforMHPandLarge-ScaleSolarPV

SupportProjectDeveloperstopreparebankablebusinessplans

GEF• TAforfacilitatingpartnerbanksandprojectdevelopersforREfinancingonMHPandSolarproject

100% 500 456 91%

Activity3b.5.1Prepareguidelinesforidentifyingandassessingexistingandpotentialenterprises

Prepareamodeltopromoteclusterofenterprisesinmini/largemicrohydrocatchmentareas

UNDP

• InstitutionalstrengtheningandcommercialoperationofMHPs 100%

22,000 19,993 91%

6,800 6,784 100%

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applications

AnnualTarget:

SupportedCREFtodesignfinancialinstrumen

tsforfinancing

REprojects

Activity3b.5.4Supportexistingentrepreneursforswitchingtoelectricenergy

LiftIrrigation UNDP • Detailedfeasibilityofmicrohydrooperatedliftirrigationsystem 100% 7,600 7,594 100%

SisnoandKhuwaMachine UNDP • Studyontechnicalspecification 100% 200 167 83%

PrepaidmeterinBhorleni,Makawanpur UNDP

• BudgetwasallocatedforinstallationofSmart-PrepaidmeteratBhorleniSolarWindHybridMinigrid,Makawanpur.However,theNationalGridisbeingextendedtothevillageandthecommunitywillinstallNEAmeters.

•

0% 7,000 - 0%

US$8,800wasallocatedforinstallationofSmart-PrepaidmeteratBhorleniSolarWindHybridMinigrid,Makawanpur.However,theNationalGridisbeingextendedtothevillageandthecommunitywillinstallNEAmeters.

Allo,Lokta UNDP • Grantprovidedfor3Loktamachines 100% 1,700 1,652 97%

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Activity3b.7.1:Providetraining/orientationtopotentialwomenandmarginalizedentrepreneurstoswitchtoelectricityandestablishnewenterprises

2training/orientations UNDP • 50womenentrepreneurstrained 100% 11,000 11,853 108%

SubTotalActivityResult3 56,800 48,498

ActivityResult4:Enhancedcapacitiesandskillofvarious

stakeholdersintheREsector

AnnualTarget:CapacityBuildingofvarious

stakeholdersinREsector

Activity4.1.1:Conductastudyonidentificationoftechnicalchallengesandopportunitiesindesign,manufacture,installationandafter-salesservicesforMini-hydroandLarge-scalesolarPVsystems

SupportAEPCtoimplementactivitiesidentifiedbyCapacityNeedAssessment

UNDP • Trainingonmonitoringandevaluationcompleted 100% 250 232 93%

Upgrading&OperationalizationofAEPC'sMIS

UNDP • TAforAEPC 100% 2,500 2,413 97%

Activity4.2.2:SupportNRREPinconductingcapacitybuildingtrainingfordevelopers,consultingfirms,andrelevantserviceprovidersforMini-hydroprojects

OrganizetrainingfordevelopersonMiniHydroProjects

UNDP• Interactionprogrammewithprospectiveminihydroinstallercompanies

100% 4,500 4,410 98%

Activity4.2.3:SupportNRREPindevelopingprojectdevelopment,systemdesignandintegrationmanualsforlarge-

UpdatePVPSdesignguidelines

UNDP

• TechnicaleditingGuidelinesofsolarPVpumping

100% 400 387 97%

UNDP 100% 2,300 2,209 96%

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scalesolarPVsystems

Activity4.3.3:Qualityassuranceprocedures,trainingcurriculumandmanualsforMini-hydromanufacturinganddevelopment

MonitoringEquipment UNDP • EnergyMonitoringdevice 100% 2,000 1,897 95%

Activity4.4.2:SupportAEPCindevelopingpre-qualificationcriteriaandmethodologyofcertificationforinstallationofLarge-scalesolarPVsystems

SupportAEPCtoorganizetrainingforMini/Large-MicroHydromasons,electricians,etc.

UNDP • 15Masonshavebeentrained 100% 9,200 9,193 100%

Activity4.5.2DevelopO&Mtrainingcurriculumandmanualsforlarge-scalesolarPVsystemsandconducttrainingbasedonthese

TrainingonhousewiringtoSASECparticipants

UNDP • 30electricians(27menand3women)havebeentrained 100% 6,000 5,922 99%

Activity4.5.3:ConductO&Mtrainingforlarge-scale60kW+microhydroplants(Operation)

ConductO&MtrainingforMHP UNDP • 46MHPoperatorstrained 100% 22,000 21,095 96%

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Activity4.5.4:DevelopbusinessmanagementtrainingcurriculumandmanualsforMini/micro-hydroandlarge-scalesolarPVsystems

ConducttrainingonbusinessmanagementforMini-hydroandlarge-scalesolarPVsystems

UNDP • 51womenentrepreneurshavebeentrained

100% 14,000 13,779 98%

SubTotalActivityResult4

63,150 61,536

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Annex1:ListofMicroHydroInstalledin2017

S.N. NameofMHP Location DistrictInstalledPower(kW)

HHs

1 KhalichhharaMHP Maidi-5 Dhading 100 1020

2 KharKholaMHP Khari-3 Dhading 70 633

3 RawaKholaMHP Katunje-8 Dhading 100 400

4 TribeniKhola Lujgrupa-7,8,9 Pancthar 35 338

5 HoluKhola Khalanga Jajarkot 14.5 159

6 NagdewaKhola Telok Taplejung 22 142

7 DhoreniKhola Nayakbata Jajarkot 51 336

8 JhumaraKholaChhepaka Dadagaun Jajarkot 13 133

9 AulaKholaMHP Khina Kalikot 70 608

10 MajuwaKuineKhaniMHP Kuinemangale Myagdi 20 119

11 DeuchuliPanighatMHP Arkhala Nawalparasi 28 228

12 BagauneKholaMHP Kureli Rolpa 91 445

13 MailidovanKupungKholaMHP Goli Solukhumbu 75 382

14 GulsuKholaMHP Sutar Achham 19 225

15 MujaKholaMHP Barala Achham 24 225

16 JuddiKholaMHP Gotri Bajura 100 1114

17 JuddiKholaIIMHP Gotri Bajura 100 1189

18 ChhirilingKholaMHPSindrangVDC/Hatuwagadhi Bhojpur 26 256

19 MajuwaKuineKhaniMHP Kuinemangale Myagdi 20 119

20 KyansiKholaMHP Morabang Rukum 52 310

21 KhatiKholaMHP Laha-08 Dolpa 80 792

22 DahaKholaMHP Magma Rukum 20 119

23 WaksuKholaIIMHP FicalGP Sindhuli 15

24 DhawangKholaMHP Dhawang Rolpa 18 143

25 DhunduriKholaMHP Jharlang Dhading 66 260

Total 1229.5 9695

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Annex2:ListofInstitutionalSolarPVin2017underReliefandRehabilitationS.N. InstitutionalSolarPV Location District Unit

Capacity(Wp)

1 NaubiseHealthPost Naubise Dhading 1 300

2 SalyantarPrimaryHealthPost Salyantar Dhading 1 300

3 BaireniHealthPost Baireni Dhading 1 300

4 SertungHealthPost Sertung Dhading 1 300

5 MaidiHealthPost Maidi Dhading 1 300

6 BenighatHealthPost Benighat Dhading 1 300

7 DhuseniShibalayaHealthPost DhuseniShibalayaVDC Kavre 1 300

8 KartikeDeuraliHealthPost KartikeDeuraliVDC Kavre 1 300

9 GothpaniHealthPost GothpaniVDC Kavre 1 300

10 BirtaDeuraliHealthPost BirtaDeuraliVDC Kavre 1 300

11 SalleBhumluHealthPost SalleBhumluVDC Kavre 1 300

12 NagreGagarcheHealthPost NagreGagarcheVDC Kavre 1 300

13 SriLaxmiHigherSecondarySchool Ghangsukathikar Dolakha 1 300

14 SriSahidSmritiAbasiyaSecondarySchool Jiri-6 Dolakha 1 300

15 SitaPailaHigherSecondarySchool Japhe-7 Dolakha 1 300

16 SriSharvaSecondarySchool Bhi.N.Pa.Jilu Dolakha 1 300

17 SriBhangeri/SatesworSecondarySchool Pawati Dolakha 1 300

18 KhopachaguGumba Khopachagu Dolakha 1 300

19 SriBirendraHigherSecondarySchool Katakuti-7 Dolakha 1 300

20 SriHilepaniSanskritHSS Lamidanda-4 Dolakha 1 300

21 SriSitkhaSecondarySchool Sunkhani-5 Dolakha 1 300

22 SriHimaliHealthco-operativeorg.Ltd Kabre Dolakha 1 300

23 DistrictpoliceOffice Charikot Dolakha 1 300

24 JanajagritiHSS Sahare Dolakha 1 300

25 DurgaHigherSecondarySchool Magapauwa:02 Dolakha 1 300

26 LamabagarPrimaryHealthPost Lamabagar Dolakha 1 300

27 NarayaniPrimarySchool LadukVDC Dolakha 1 300

28 DolakhaTourismDevelopmentCommittee Charikot Dolakha 1 300

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29 KarkiManakamanaLowerSecondarySchool Manegau Nuwakot 1 300

30 TribhuvanSecondarySchool Archale,Manakamana Nuwakot 1 300

31 RanabhumaneshwariSecondarySchool KhadgaBhanjyang Nuwakot 1 300

32 GhyangphediPrimarySchool Ghyangphedi Nuwakot 1 300

33 ShreeKundalaSec.School Bhadrutar-1Nuwakot Nuwakot 1 300

34 KalikaSecSchool Bidur11,Nuwakot Nuwakot 1 300

35 UttargayaGaupalikaOffice UttargayaGaupalika Rasuwa 1 300

36 KalikaGaupalikaOffice KalikaGaupalika Rasuwa 1 300

37 ParbatikundaGaupalikaOffice ParbatikundaGaupalika Rasuwa 1 300

38 GosaikundaGaupalika04 Gosaikunda04 Rasuwa 1 300

39 GosaikundaGaupalikaOffice GosaikundaGaupalika Rasuwa 1 300

40 NaukundaGaupalikaOffice NaukundaGaupalika Rasuwa 1 300

41 DistrictEyeHospital Chautara Sindhupalchowk 1 300

42 SipapokhareHealthPost IndrawatiGaupalika,Sipapokhare Sindhupalchowk 1 300

43 PhulpingdadaHealthPost BalephiGaupalika,Phulpingdada Sindhupalchowk 1 300

44 BudepaHealthPost BarhabiseGaupalika,Barhabise Sindhupalchowk 1 300

45 BhotechaurHealthPostMelamchiMunicipality,Bhotechaur

Sindhupalchowk 1 300

46 BaruwaHealthPost PanchpokhariThanpalGaupalika,Baruwa Sindhupalchowk 1 300

47 HelambuHealthPost,Helambu HelambuGaupalika Sindhupalchowk 1 300

48 JageshworiNimabiMelamchiMunicipality-11,Melamchi

Sindhupalchowk 1 300

49 BachchhekHealthPost HansapurVDC Gorkha 1 300

50 BachchhekPolicePost HansapurVDC Gorkha 1 300

51 PolicePost,Baluwa SimjungVDC Gorkha 1 300

52 KharibotHealthPost KharibotVDC Gorkha 1 300

53 MucchowkHealthPost MuchhowkVDC Gorkha 1 300

54 Arupokharihealthpost ArupokhariVDC Gorkha 1 300

55 KettukeHealthPost KettukeVDC Okhaldhunga 1 300

56 JantarkhaniHealthPost JantarkhaniVDC Okhaldhunga 1 300

57 ShreechaurHealthPost ShreechaurvDC Okhaldhunga 1 300

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58 KhijiPhalateHealthPost KhijiPhalateVDC Okhaldhunga 1 300

59 PokhareHealthPost PokhareVDC Okhaldhunga 1 300

60 BhusingaHealthPost BhusingaVDC Okhaldhunga 1 300

61 DimipokhariHealthPost DimipokhariVDC Ramechhap 1 300

62 GunsiHealthPost GunsiVDC Ramechhap 1 300

63 PakarbasHealthPost PakarbasVDC Ramechhap 1 300

64 PreetiHealthPost PreetiVDC Ramechhap 1 300

65 PharpuBirthingCenter PharpuVDC Ramechhap 1 300

66 DuragaonHealthPost DuragaonVDC Ramechhap 1 300

67 AmboteHealthPost AmboteVDC Sindhuli 1 300

68 KholagaunHealthPost KholagaunVDC Sindhuli 1 300

69 KalpaBrikshyaHealthPost KalpaBrikshyaVDC Sindhuli 1 300

70 ToshramKholaHealthPost ToshramKholaVDC Sindhuli 1 300

71 SolpathanaVDC SolpathanaVDC Sindhuli 1 300

72 IlakaPolicePost MahendrajhyadiVDC Sindhuli 1 300

Total 72 21600

Annex3:ListofInstalledSolarPVin2017

S.N. InstitutionalSolarPV Location District UnitCapacity(kWp)

1 KamalBazaarSolarWindMiniGrid KamalBazar Achham 1 31.0

2 HarrekandaSolarWindMiniGrid Surket Harrekanda 1 7.23 ChisapaniSolarWindMiniGrid Chisapani Sindhuli 1 35.0

4 TheCommissionfortheInvestigationofAbuseofAuthority-InstitutionalSolar Tangal Kathmandu 1 375.0

5 TelkuwaSolarIrrigation Telkuwa Bara 1 40006 SnakeBiteTreatmentCenter-InstitutionalSolar Letang Morang 1 2000

7 SnakeBiteTreatmentCenter-InstitutionalSolar Itahari Sunsari 1 2.58 SnakeBiteTreatmentCenter-InstitutionalSolar Charali Jhapa 1 2.59 RamiteKholaSolarMiniGrid Ramite Morang 1 35.010 NawalparasiGirdconnectedCaptiveSolarPV Ranipakar Nawalparsi 1 1000.011 KatwaraHealthPost-InstitutionalSolarPV Katwara Salyan 1 3.012 SimrutuHealthPost-InstitutionalSolarPV Simrutu Rukum 1 3.0

13 KabilasiMiniGrid-SolarPumping Kabilasi Sarlahi 1 6.0Total 10 1506.2

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Annex4:ListofPhotoVoltaicPumpingSystemInstalledin2017

S.N. ProjectName DistrictCapacity(kWp)

HHs

1 DhapKholaRSDWP Dang 1.14 412 SemlekholseRSDWP Udayapur 2.24 413 SharkikholseRSDWP Udayapur 1.26 364 OdarejoreRSDWP Okhaldhunga 2.40 485 BesitoleRSDWP Ramechhap 3.00 306 DhulpairaRSWDP Surkhet 1.86 407 PenautaRSWDP Surkhet 2.80 318 GabudandaRSDWP Galdha-2,Palpa 3.92 429 DharadiRSDWP Mityal-9Palpa 3.36 3110 TamedharaRSDWP Surkhet 2.80 4911 TijugairaRSDWP Surkhet 3.00 40

12 MelganjaRSDWP Dadeldhura 1300 3213 JamunaMulRSDWP Achham 1.52 6114 PatuatRSDWP Baitadi 2.73 4915 SisnepaniRSDWP Doti 1.14 3216 DharapaniRSDWP Surkhet 5.00 5017 Dharapani2RSDWP Surkhet 3.00 44

18 DadathokRSDWP Tanahun 1.40 6419 KotleKholaRSDWP Tanahun 1.90 3420 ChhepardiRSDWP Tanahun 2.28 4721 ChiurikholaRSDWP Rolpa 1.14 3622 RatomateRSDWP Tanahun 2.24 3323 DaduiRSDWP Ilam 0.62 3224 KaliKholaRSDWP Ilam 0.75 3725 NagiRSDWP Panchthar 0.82 4026 KanchanRSDWP Ilam 1.89 20

27 TintaleBaneliRSDWP Ilam 1.89 24

28 KaliDahaRSDWP Panchthar 4.75 5429 KamalKholsiRSDWP Ilam 2.00 3130 SarapaniRSDWP Salyan 8.80 6931 PiuribartibangRSDWP Rolpa 3.00 37

Total 1374.65 1255

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Telkuwa Solar Irrigation Project powered by 4kWp Solar PV System, Bara Snake Bite Treatment Center powered by 2kWp Solar PV System, Letang,

Morang

1 MWp solar plant in Nawalparasi House Wiring Solar DC Micro Grid

Training on Mobile Repairing, Rukum 1 Construction of 200kW Simrutu Khola Mini Hydropower Project, Rukum

ANNEX5:PhotoGallery

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