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Techno-Economic Modelling of Micro-Hydropower Mini-Grids in Nepal to Improve Financial Sustainability and Enable Electric Cooking

Author

Listed:
  • William Clements

    (Electrical Energy Management Group, Faculty of Engineering, University of Bristol, Bristol BS8 1TR, UK)

  • Surendra Pandit

    (Kathmandu Alternative Power and Energy Group (KAPEG), Kathmandu 44600, Nepal)

  • Prashanna Bajracharya

    (People Energy and Environment Development Association (PEEDA), Kathmandu 44600, Nepal)

  • Joe Butchers

    (Electrical Energy Management Group, Faculty of Engineering, University of Bristol, Bristol BS8 1TR, UK)

  • Sam Williamson

    (Electrical Energy Management Group, Faculty of Engineering, University of Bristol, Bristol BS8 1TR, UK)

  • Biraj Gautam

    (People Energy and Environment Development Association (PEEDA), Kathmandu 44600, Nepal)

  • Paul Harper

    (Department of Civil Engineering, Faculty of Engineering, University of Bristol, Bristol BS8 1TR, UK)

Abstract

In rural Nepal, micro-hydropower plant mini-grids provide renewable electricity to thousands of communities but the plants often have poor financial sustainability. Widespread uptake of electric cooking in such communities is currently not feasible due to high peak loads and limited capacity. In this paper, we develop a Remote-Areas Multi-Energy Systems Load Profiles (RAMP)-based stochastic techno-economic model for evaluating the economic viability of off-grid communities and improving their financial sustainability by introducing new appliances, productive end uses, and demand-side management measures. The model can be used to understand community electricity demand, assess economic status, determine equitable and profitable tariff structures, and plan new connections including electric cooking promotion or new industrial machines. Detailed electric cooking load modelling functionality was developed to represent Nepali cooking practices, scalable to approximate widespread uptake of electric cooking, and adaptable to other cookers and contexts. The model showed that a payment structure based on electricity consumption rather than a flat tariff could increase the income of a case study community in Eastern Nepal by 400%, although increased monthly payments for certain households from NPR 110 (USD 0.93) to NPR 500–1100 (USD 4.22–9.29) could present difficulty. However, households could reduce their electricity consumption and a more equitable tariff structure could be chosen while preserving plant profitability. The number of industrial machines such as mills could be doubled and up to 40 households provided with electric cookers if demand-side management measures were introduced.

Suggested Citation

  • William Clements & Surendra Pandit & Prashanna Bajracharya & Joe Butchers & Sam Williamson & Biraj Gautam & Paul Harper, 2021. "Techno-Economic Modelling of Micro-Hydropower Mini-Grids in Nepal to Improve Financial Sustainability and Enable Electric Cooking," Energies, MDPI, vol. 14(14), pages 1-23, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4232-:d:593696
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    References listed on IDEAS

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    1. Joe Butchers & Sam Williamson & Julian Booker, 2021. "Micro-Hydropower in Nepal: Analysing the Project Process to Understand Drivers that Strengthen and Weaken Sustainability," Sustainability, MDPI, vol. 13(3), pages 1-16, February.
    2. Lombardi, Francesco & Rocco, Matteo Vincenzo & Colombo, Emanuela, 2019. "A multi-layer energy modelling methodology to assess the impact of heat-electricity integration strategies: The case of the residential cooking sector in Italy," Energy, Elsevier, vol. 170(C), pages 1249-1260.
    3. Casillas, Christian E. & Kammen, Daniel M., 2011. "The delivery of low-cost, low-carbon rural energy services," Energy Policy, Elsevier, vol. 39(8), pages 4520-4528, August.
    4. Yadoo, Annabel & Cruickshank, Heather, 2012. "The role for low carbon electrification technologies in poverty reduction and climate change strategies: A focus on renewable energy mini-grids with case studies in Nepal, Peru and Kenya," Energy Policy, Elsevier, vol. 42(C), pages 591-602.
    5. Lombardi, Francesco & Balderrama, Sergio & Quoilin, Sylvain & Colombo, Emanuela, 2019. "Generating high-resolution multi-energy load profiles for remote areas with an open-source stochastic model," Energy, Elsevier, vol. 177(C), pages 433-444.
    6. Kitson, J. & Williamson, S.J. & Harper, P.W. & McMahon, C.A. & Rosenberg, G. & Tierney, M.J. & Bell, K. & Gautam, B., 2018. "Modelling of an expandable, reconfigurable, renewable DC microgrid for off-grid communities," Energy, Elsevier, vol. 160(C), pages 142-153.
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    Cited by:

    1. Simon Batchelor & Ed Brown & Nigel Scott & Matthew Leach & Anna Clements & Jon Leary, 2022. "Mutual Support—Modern Energy Planning Inclusive of Cooking—A Review of Research into Action in Africa and Asia since 2018," Energies, MDPI, vol. 15(16), pages 1-29, August.

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