Research Notes: Solar energy in Nepal
Photovoltaic is just another name for solar panels, generating electricity by converting solar radiation into direct current electricity. This blog post looks at the way electricity can be generated from the energy of the sun with its main focus on Nepal.
Electrification using solar photovoltaic systems in Nepal by Bhandari, R , Stadler, I
In any socio economic development of a country electricity is important. This has a latter important role later where people are able to benefit from a better quality of life.
There are many rural locations in Nepal and low cost option for energy will definitely enhance the quality of life and also promotion better quality of life by education, employability and reduction of green house gases which are bad for the environment (which is one of the criteria from the Kyoto Protocol for developed nations)
More than half the country’s population is deprived of electricity. Due to many of these rural places in Nepal being mountainous electricity city grids aren’t a viable option so mini grids have been created. Another option is Biogas however in the hilly areas this isn’t really that applicable due to low temperature (10 degrees).
The need of electricity is not only for rural areas, but the grid connected locations are also seeking the reliable electricity supplies because of big load shedding problem.
Energy sources have been categorized under three broad types in Nepal:
1) Traditional
2) Commercial
3) Alternative energy sources
The country is spending a major share of export earnings to import petroleum products. Total energy consumption of the country is largely dominated by the use of traditional energy sources.
Many rural parts in Nepal still use the traditional method of energy, this means deforestation is still at large. In comparison, urban areas, kerosene and natural gas meet cooking fuel demands. Although about 81% of the country’s total population depends on agriculture, there is hardly any modernization in this sector.
Solar photovoltaic development in Nepal
Majority of Nepali are isolated from modern means of energy supply. The major electricity demand, at the moment, in these villages is for light. Villagers light their homes either by kerosene lamps or by wooden flames, which cannot provide sufficient light and are also problematic in terms of health, safety, hygiene. The kerosene is not easily available and is very much costly due to additional transport costs in remote areas[12,13]. This is why the solar PV sector is very popular among rural dwellers. Fortunately, the country receives an ample amount of solar radiation with an average of 3.6–6.2 kW h/m2 /day, and the sun shines for about 300 days a year.
Fact: The first use of solar PV in Nepal cannot be ascertained, but it is said that the first PV module was used in 1963 in an airport for navigational purpose.
Government Incentives?
In Nepal, both the government and the private sectors are involved in promotion of the solar PV sector. The government is actively involved in functional areas such as, quality control assurance, and is a major source of financial incentives to the beneficiaries. The Alternative Energy Promotion Centre (AEPC), under the Ministry of Environment, is the apex body for coordinating national level activities and programmes on renewable energy including solar PV.
The government plans for the further expansion of solar PV sector and the following quantitative targets have been set in ongoing interim plan:
"Development of hydropower and energy sectors, productivity growth of agro sector and its diversification and commercialization, basic education, health, drinking water and sanitation, good governance, expansion of roadways, development of physical infrastructures, tourism and trade are the priorities of the upcoming three-year development plan, according to Shakya” … NO OFFCIAL NEWS OF SOLAR PLANS IN THE NEW TRANSCRIPT (Nepalnews.com)
However, there was information from the previous Three Year Plan Approach Paper (2010/11 - 2012/13) there was an ambitious figure to reach:
Looking at coloum 5-6, there seems to be an expected increase in the target three year interim plan. Which looks prosporous, whether this has been done will be black and white once the 2014 Plan is officially published.
The Target: Through solar energy 3 MW energy would have been generated.
Summarising the Prospect of solar PV for electrification, its difficult to come to any conclusions about what to expect, the people demand the energy but are reluctant to pay it due to high stratup cost of generators and lack of subsidy from the Nepal government. With the installation of solar PV calculations are made for the case of free market conditions.
The initial investment for solar module and battery is supposed to be a bank loan. This loan will be paid back to the bank in an installment basis over the period equal to the PV system life time. Bank interest will have to be paid annually.
The analysis from Mr. Bhandari , found that break even year will occur somewhere between 2027 and 2036, depending upon operating life time of the PV system. Break even is when a business reach a point when the profits are equal to the costs. So there would be a long time before any type of profit is seen. So it’s not worthwhile for the government to provide subsidy and encourage people to invest in solar PV systems in Nepalese urban areas. All the subsidies and the investment will simply go into the uneconomic and unproductive sector, simply for expensive household electrification.
In conclusion, despite enormous potential for hydro electricity generation in Nepal, the share of electricity in national energy consumption is less than 2%.
Image from: http://www.aepc.gov.np/index.php (Alternative Energy Promotion Centre (AEPC)
Article Summarised from: http://www.sciencedirect.com/science/article/pii/S0306261909005169 (Science Direct)
Electrification using solar photovoltaic systems in Nepal by Bhandari, R , Stadler, I
In any socio economic development of a country electricity is important. This has a latter important role later where people are able to benefit from a better quality of life.
There are many rural locations in Nepal and low cost option for energy will definitely enhance the quality of life and also promotion better quality of life by education, employability and reduction of green house gases which are bad for the environment (which is one of the criteria from the Kyoto Protocol for developed nations)
More than half the country’s population is deprived of electricity. Due to many of these rural places in Nepal being mountainous electricity city grids aren’t a viable option so mini grids have been created. Another option is Biogas however in the hilly areas this isn’t really that applicable due to low temperature (10 degrees).
The need of electricity is not only for rural areas, but the grid connected locations are also seeking the reliable electricity supplies because of big load shedding problem.
Energy sources have been categorized under three broad types in Nepal:
1) Traditional
2) Commercial
3) Alternative energy sources
- Traditional = includes biomass fuels, particularly fuel wood, agriculture residue, and animal waste used in the traditional way.
- Commercial = fossil fuels (coal and petroleum fuels) and electricity from large hydropower plants.
- Alternative = new, renewable, and non conventional forms of energy (E.G. solar, micro-hydro, wind and biogas).
The country is spending a major share of export earnings to import petroleum products. Total energy consumption of the country is largely dominated by the use of traditional energy sources.
Many rural parts in Nepal still use the traditional method of energy, this means deforestation is still at large. In comparison, urban areas, kerosene and natural gas meet cooking fuel demands. Although about 81% of the country’s total population depends on agriculture, there is hardly any modernization in this sector.
Solar photovoltaic development in Nepal
Majority of Nepali are isolated from modern means of energy supply. The major electricity demand, at the moment, in these villages is for light. Villagers light their homes either by kerosene lamps or by wooden flames, which cannot provide sufficient light and are also problematic in terms of health, safety, hygiene. The kerosene is not easily available and is very much costly due to additional transport costs in remote areas[12,13]. This is why the solar PV sector is very popular among rural dwellers. Fortunately, the country receives an ample amount of solar radiation with an average of 3.6–6.2 kW h/m2 /day, and the sun shines for about 300 days a year.
Fact: The first use of solar PV in Nepal cannot be ascertained, but it is said that the first PV module was used in 1963 in an airport for navigational purpose.
Government Incentives?
In Nepal, both the government and the private sectors are involved in promotion of the solar PV sector. The government is actively involved in functional areas such as, quality control assurance, and is a major source of financial incentives to the beneficiaries. The Alternative Energy Promotion Centre (AEPC), under the Ministry of Environment, is the apex body for coordinating national level activities and programmes on renewable energy including solar PV.
The government plans for the further expansion of solar PV sector and the following quantitative targets have been set in ongoing interim plan:
"Development of hydropower and energy sectors, productivity growth of agro sector and its diversification and commercialization, basic education, health, drinking water and sanitation, good governance, expansion of roadways, development of physical infrastructures, tourism and trade are the priorities of the upcoming three-year development plan, according to Shakya” … NO OFFCIAL NEWS OF SOLAR PLANS IN THE NEW TRANSCRIPT (Nepalnews.com)
However, there was information from the previous Three Year Plan Approach Paper (2010/11 - 2012/13) there was an ambitious figure to reach:
Looking at coloum 5-6, there seems to be an expected increase in the target three year interim plan. Which looks prosporous, whether this has been done will be black and white once the 2014 Plan is officially published.
The Target: Through solar energy 3 MW energy would have been generated.
Summarising the Prospect of solar PV for electrification, its difficult to come to any conclusions about what to expect, the people demand the energy but are reluctant to pay it due to high stratup cost of generators and lack of subsidy from the Nepal government. With the installation of solar PV calculations are made for the case of free market conditions.
The initial investment for solar module and battery is supposed to be a bank loan. This loan will be paid back to the bank in an installment basis over the period equal to the PV system life time. Bank interest will have to be paid annually.
The analysis from Mr. Bhandari , found that break even year will occur somewhere between 2027 and 2036, depending upon operating life time of the PV system. Break even is when a business reach a point when the profits are equal to the costs. So there would be a long time before any type of profit is seen. So it’s not worthwhile for the government to provide subsidy and encourage people to invest in solar PV systems in Nepalese urban areas. All the subsidies and the investment will simply go into the uneconomic and unproductive sector, simply for expensive household electrification.
In conclusion, despite enormous potential for hydro electricity generation in Nepal, the share of electricity in national energy consumption is less than 2%.
- Solar photovoltaic technology is well accepted in Nepal, especially in the residential sector for lighting purposes.
- The breakeven year has been expected to occur in2036 for the PV systems.
- The government should keep on supporting the rural electrification, either by providing subsidy, or letting this money flow among the villagers by investing in any productive sector in the region so that people have money to buy solar home systems.
Image from: http://www.aepc.gov.np/index.php (Alternative Energy Promotion Centre (AEPC)
Article Summarised from: http://www.sciencedirect.com/science/article/pii/S0306261909005169 (Science Direct)
