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

William Clements, Surendra Pandit, Prashanna Bajracharya, Joe Butchers, Sam Williamson, Biraj Gautam and Paul Harper
Additional contact information
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

Energies, 2021, vol. 14, issue 14, 1-23

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.

Keywords: micro-hydropower; mini-grid; Nepal; techno-economic model; electric cooking; demand-side management (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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