MM Nepal impact assessment report on micro hydro project

A REPORT ON

IMPACT ASSESSMENT OF BUMBURI COMMUNITY MHP

SUBMITTED TO: Moving Mountain Trust Belfast, Northern Ireland

SUBMITTED BY:     E-mail: mecc@wlink.com.np

Impact Assessment of Bumburi Community Micro Hydro Project Introduction Modernization of agriculture and promotion of cottage and small-scale industries form essential elements of any strategy for the transformation of the hill and mountain economy of Nepal. The generation of off –farm employment and off-farm income is more desirable than expanding subsistence farming activities. It is often observed in hills in Nepal that many off-farm activities reduce dependence on the forests diminishing the dangers of ecological imbalance resulting from over-exploitation of forests.

The provision electricity does provide a new impetus for sustainable rural development through infusion of modern technology and new skills; and it results in higher labor productivity.

Although not obvious, it is noteworthy that, decentralized hydro power can be very well integrated with the rural development process, and can be an effective input in inducing agricultural diversification and rural industrialization process. The effect of rural electrification can be dramatic, provided the complementary institutional and technological hurdles are overcome. The on-farm income generation and off-farm employment generation potential can be exploited if a set of local level institutions are created and sustained. In the local institutions, for example, self governing groups are needed to bring savings and investment to micro hydro plants.

User groups can disseminate cash–crop related technologies.

So a rightly designed rural electrification initiative is needed to overcome these institutional hurdles through a participatory process. Non local funds for investment in micro hydro can be generated through this process. On the technology front, innovation and adaptation has to be there for the initiative to come out successful.

Fortunately, it is estimated that in Nepal more than 6,000 rivers flow, which total length is about 45,000 km. The theoretical and commercial potential of hydro power in Nepal are about 83,000 MW and 42,000 MW respectively. So far, however, only about 609 MW (1.45 % of the total commercial potential) has been generated by the various hydro power stations. However, because of the country's dependence on imported fossils, the high cost of grid connection and low and scattered population density, a decentralized energy supply system becomes the natural choice. Decentralized energy systems like micro hydro provides feasible

and environmentally friendly energy supply options in rural areas. And to address the aspects of the decentralized energy planning and management in Nepal, Micro-hydro is one of the few energy options, which can viably reach poor communities of the country. It is reliable and affordable source of energy.

MEC Consultancy P. Ltd which is working in the field of renewable energy, especially in the field of micro hydro since a decade is providing various MH related services to the clients. The company has been successful in demonstrating its capability to under take projects under concept to commissioning approach. Bumburi Community Micro Hydro Project is an example.

Bumburi Community Micro Hydro Project is a 9 kWe MH project of Juving VDC-3 in Solukhumbu district to electrify Bumburi village. The project is owned by the community. The detail feasibility study of the project was conducted on August, 2003 and the agreement to implement the project on October, 2004. The project was handed over to the users committee in September 6, 2005. The total number of households benefited by the project is 68. The project is financially supported by Moving Mountain Trust, Belfast, Northern Ireland and technically assisted by MEC Consultancy P. Ltd., Kathmandu, Nepal In addition to these design and construction services, MEC conducted a 21 days MH operators' training to fulfill the local technical manpower requirements for operating the MH plant efficiently and to tackle with the minor operation and maintenance problems. Similarly an orientation programme has been provided to the users' committee for the proper financial and operational management of the power plant. In addition MEC has provided on site training to the electricity users to make them aware of the hazards of electricity and to train them in the safe use of electricity.

After one and half years of electrification in the Bumburi village, an "Impact Study of the Bumburi Community Micro Hydro Project" has been conducted by MEC with the support of Moving Mountain Trust. The main objective of the study is to find out the positive as well as negative impacts of the Bumburi Community Micro Hydro Project from the socio economic, community and environmental aspects. The basic steps followed to achieve the objective of the study are as follows:

Methodology: To achieve the objective, following major activities were planned and executed.

1. Development of Questionnaire 2. Site Survey and Data Collection 3. Analysis and Interpretation

1. Development of Questionnaire The basic steps followed to achieve the objective of the study are as follows: Questionnaires were developed to know the rural household energy consumption pattern before and after electrification, people's awareness level and perception about energy, changes in the socio economic, community and environment aspect and increment in the nightlife due to the electricity.

1. Some questions were asked to get the socio economic information of the village like their family size, literate and illiterate populations, income group and income source, food production as well as their land holdings.

2. To know the opinion about electricity, types of energy consumption and changes in energy consumption scenario before and after electrification.

3. To know about increase in the nightlife and saving of time due to electricity.

4. To know about the changes in economic/financial condition due to the MHP

2. Site Survey and Data Collection MEC staff Mr. Ram Prasad Kafle visited Bumburi on March 10, 2007.

Twenty five numbers of households were randomly sampled in the village to collect the data/information. Necessary data and information were collected and filled in the questionnaire from the villagers. Such information was collected verbally as well as from available records. A meeting was also held with MHP users' committee, operators and the users. The discussion was held on technical, management, socioeconomic and financial aspects of Bumburi Community MHP.

Following were the Users' Committee members interacted during the study.

Users' Committee Mr. Ang Chhongba Sherpa Mr. Ang Kipa Lama Mr. Lakpa Nurbu Lama Mr. Pasang Lama Mr. Ringi Lama Mr. Furtemba Lama Mr. Alama Sherpa Mr. Dadorji Sherpa Mr. Nima Nuru Sherpa

Chariperson Vice Chairperson/Manager Secretary/Operator Treasurer/Operator Member Member Member Member Member

2. Analysis and Interpretation The study shows that the MHP has brought great changes in the field of socio-economic as well as participatory approach in Bumburi village. The disadvantaged rural people are benefited from this project. The people are very grateful to Moving Mountain Trust for establishing this project. The project has changed the environmental, socioeconomic as well as changes in gender aspect of the people of Bumburi village.

Following results has been achieved based on analysis of the collected data/information.

Food Sufficiency from the Land

The study shows that from the sampled households 70% peoples have food sufficiency for the more than one year, 22% have food sufficiency for one year, 4% have food sufficiency for 9 months and 4% have food sufficiency for less than 9 months.

Food Sufficiency from the Land

4%

4% 22%

70%

Less than 9 months

9 months

1 year

Opinion about Electrification of the Village

More than 1 year

Among the 25 respondents, 16 respondents have taken electricity facility in their vicinity as the livelihood improvement, 6 respondents have taken as the opportunity for the development and 3 respondents have taken as normal process and no one has taken it as luxurious.

Opinion about Electricity 16 14 12 10 8 6 4 2 0 Opportunity For

Livelihood

Normal

Improvement

Process

Development

Increment in Nightlife

Luxurious

Regarding the increment in nightlife after getting electricity, 71% respondents' nightlife has been increased by 4 hours, 25% respondents' has been increased by 2 hours and 4% respondents' has been increased by 1 hour.

Opinion about Night Life Increment

0% 4% 25%

1Hr 2 Hrs 4 Hrs

71%

No Increment

Time Saving and Use of Time Among the total men and women respondent, all were agreed with the save of their time due to electricity. It has been seen that at an average there is a save of 2.5 hours to the men and 3.14 hours to the women. The priority area of using saved time was found different in men and women. Among the men respondents, 12 numbers said that they use the save time in income generating activities, 5 uses the saved time for domestic work, 4 uses the saved time for just relaxing and 3 uses in education.

Among the women respondents, 19 uses the saved time for domestic work, 3 uses the saved time for just relaxing and 2 uses the saved time in income generating activities.

Use of Saved Time 20 18 16 14 12 10 8 6 4 2 0

Income Generation In Education Just Relaxing Domestic Work

Men

Women

Impact on Financial Condition in Bumburi

Most of the respondents i.e. 92% said that after the electrification, their financial condition has been improved and 8% said that electricity has not made any changes in their financial condition. After electrification, the use of kerosene and dry cell has been stopped and they can use the saved money for other purpose.

Improvement on Financial Condition After Electrification 8% Yes No 92%

Annual Energy Consumption Annual energy consumption for the various end uses before and after electrification has been shown below. The annual per household firewood consumption is 14724 kg, kerosene consumption is 34.8 liters and dry cell (battery) consumption is 15.6 pairs before electrification and after electrification annual per household firewood consumption has decreased to 14650 kg, kerosene consumption has gone down to nil and dry cell has also gone down to nil. There in not any significant change in the consumption of fuel wood because as earlier, the villagers use fuel wood for cooking purpose. The electrification has virtually no impact on cooking energy, however small decrease in the fuel wood is the reason that earlier the cooking stoves were burn for longer time and the kitchen work used to be done in this light. But after electrification, there is no need of firing stoves without any cooking.

Types of Fuel Kerosene in lts/HH/Year Fuel wood in kg/HH/Year Dry Cell (Battery) in pairs/HH/Year

Consumption Before Electrification 34.8

Consumption After Electrification 0

14724

14650

15.6

0

Reduction in Problem

Problem Reduction 18 16 14 12 10 8 6 4 2 0

Slightly Improvement No Change

Visibility

Respiratory Problem

Safety In Eye Problem

Safety From Wildlife

Worse

One of the questions was related with the problem. Safety from wild life to the domestic animal, human and another question was related with respiratory problem and visibility. Most of the respondent had felt that they feel relatively safer from wild life after electricity is there in the village.

2.1 Incremental Benefits The benefits, which are not included in the analysis but could be mentioned, are the incremental benefits. The incremental benefits are the benefits, which come from the increases in the modern form of energy (electricity) uses due to the availability in lower prices. The benefits include the direct increases in the communities’ education through the advent of electricity in the locality. There is an indirect educational benefit due to the availability of more reading hours and better quality lighting facility. Further, there are other electricity uses such as media viz. radio, TV and video has been in operation from which peoples are aware with science and technology, what is happening in the world and the modern way of entertainment. The community has got the opportunity to get engaged in income generating activities, especially during evening hours and dawn. There are health benefits due to the reduction in air pollution resulting from kerosene uses.

Benefit from the Replacement of Kerosene and Dry Cell The average use of kerosene in the locality is 34.8 liters per households per year. After the advent of electricity in the locality, the community is not using the kerosene for lighting purpose. As the total beneficiary household is 68, a total of 2366.4 liter per year is replaced. At the rate of Rs. 120 per liter in the community, the total amount saved has been assessed to be Rs 283968.

The average use of dry cell (battery) in the locality is 15.6 pairs per households per year to run radio and torch light. After getting the electricity, the community is not using the dry cell for the above purposes.

As the total beneficiary household is 68, a total of 1060.8 pairs per year are replaced. At the rate of Rs. 40 per pair in the community, the total amount saved has been assessed to be Rs 42432.

There is not significant change in the consumption of fuel wood. The community use fuel wood for cooking purpose and the electrical power is not sufficient to use for cooking purpose. After replacing the traditional stoves by improved cooking stoves (ICS) in the II phase activities in Bumburi village, it is estimated that 20-30% fuel wood energy consumption will be reduced because of the ICS. 2.2 Operation and management aspects of the MHP The success of a project depends on its operation and management Considerable benefits can be reaped from MHP if it is operated and managed properly. Neither the entrepreneurs nor the consumers will gain from the MHP that is not operated and managed properly. The MHP owners should bear in mind the aspects of operation and management i.e. management of daily operations, availability of operators and resource management.

Institutions

The ownership type of the MHP is community owned. One Micro Hydro Users' Committee has been formed for the implementation of the project.

The MH Users' Committee will be fully responsible for the operation and management of the MHP, with guidance from MEC. The management structure of the MHP is as follows.

Bumburi Community MH Users' Committee

Micro Hydro Plant Manager

Micro Hydro Plant Operators

Skilled Manpower The required training for the MH power plant managers and operators has been conducted by MEC with the support of Moving Mountain Trust.

Selection of the micro hydro operators and manager has been undertaken by the MH Users' Committee based on technical aptitude and commitment to the community. The selected persons are doing their job well. They also should make their written commitments to the community, that they will provide their services on along-term basis. The manager and operators should be responsible for the daily operation and management of the MHP.

2.3 Environmental Aspect of the MHP After implementation of the Bumburi Community MHP, the social situations, community facilities, employment opportunities, land price and markets for local products has been increased considerably. There is not any considerable biological impact such as effects on vegetation and forest resources, wild life, crops, aquatic life etc. The implementation of the project has not caused significant physical impacts such as floods, landslides, deterioration of water and soil qualities. However, minor impacts such as loss of some agriculture lands, cutting of some trees etc. has been occurred in the project area. Preventive measures such as awareness creation and tree plantation are suggested to reduce the adverse impacts. Especially,

micro watershed development and tree plantation are recommended in the peripheral areas of the canal, intake, penstock alignment, overflow canal, tailrace canal etc. To balance the cutting wooden poles used for the project, trees plantation is recommended.

Thus, the project has not hampered any household in the project area and has not disturbed significant cultivated lands. Since the excavations for the project is minimum, there is not any natural disturbances such as landslide, erosion and flooding.

2.4 Socio Economic Aspects Micro-hydro is generally a clean source of energy without adverse impact on the environment. However, the sustainability of micro-hydro schemes depends much not only on technical, management and financial aspects but on social aspects also.

The lands used for constructing civil structures of the MHP are acquired by the concerned MH Users' Committee by consulting the landowners and through bilateral negotiations and consensus mass decisions. Thus there is no issue related to water right conflict and land acquisition at present and it's unlikely that any issue will arise in future related to these. There is not any sign of conflict on water sharing practice at present.

The people of the village have the facilities of communication Medias like television and radios from which they get information about current world affairs, development in science and technology, modern agriculture techniques & proper use of pesticides.

There are three video halls for entertaining the villagers from movies.

People have become frank and can talk face to face with the outsiders due to advent of communication.

This project has been accommodated some milling machines like grinder, oil expeller and rice huller inside the powerhouse to maximize the plant utilization factor. Local people and peoples from the neighboring VDC are directly benefited from these millings. The flour and oil market of Bumburi village has been extended to Lukla. The people come from 2 to 3 days walk for oil expelling as well as rice hulling purpose. Mostly people from Waku, Bhasa, Taksindu, Pawai and Sotang VDC are benefited with such facilities. As the result, income generation activities have been increased due to the millings. The people from Bumburi nowadays captured some wheat, maize, millet, and flour market of Lukla.

2.5 Financial Management: The income from the sales of electricity is NRs. 8000.00 per months and besides that there is an income of NRs. 3750.00 per months from grinding and oil expelling end use devices. Two operators are paid NRs. 2000 per month each from the income of the project.

Findings and Recommendations: The survey has shown that the project has been well managed by the Users' Committee. The management training to the users' committee members will definitely help them to run the project in an institutional set up.

The users' satisfaction in this project is good and operation of the plant is also satisfactory. Though on of the trained operator has left the job, the villagers has managed another locale and another old trained operator has trained him and now that new operator is assisting him.

People were found very positive and obliged to Moving Mountain Trust for the inputs in the development of Bumburi .They are very happy with the first phase activities and are happy to know about the second phase activities.

It has been recommended to keep a proper office system of the project.

Billing system, recording system and inventory records need to be maintained. These things had been taught in the project management training to the participants from the Users' Committee during the 'Power Plant Management Training' conducted by MEC recently. They have shown their commitment to keep the proper recording system.

In overall, the villagers of Bumburi have been very successful to run the project which is in the very remote part of the country. The villagers have appreciated very well for the support of Moving Mountain Trust and MEC is happy to know that the villagers are satisfied with the project performance.