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Solar Energy Lights Up Nepali Villages

 By Prakash Khanal - Kathmandu, Nepal

01/05/2003

Solar energy as an alternative energy source for lighting purposes is becoming popular in rural areas where there is no regular supply of electricity.

Around 27,000 households in remote rural areas are currently receiving electricity, watching television and listening to radio in Nepal, thanks to the initiative taken by the Nepali government and donor agencies.

Currently around 30 solar electric and alternative energy companies and government agencies are working together to bring light to many villages that are remarkably remote and hidden under the massive shadow of the mighty Himalayas that give Nepal its name, the Himalayan Kingdom.

Expensive but Available

It is strange but true that in Nepal, a country known for its hydropower potential, the cheapest source of renewable energy in the world, people are hooking more and more onto solar energy, known to be the most expensive source of energy to date.

Producing electricity from solar photovoltaic panels may be the most expensive source of energy in the world today, but for the people buying it, the issue is not one of price as much as it is one of having an alternative. The rapid expansion of the solar energy industry in Nepal within the last ten years that started in 1993 is because of the hopeless situation that the majority of Nepalis are forced to live in.

One can see many villages where electric poles have been erected, wires connected and villagers have done electric wiring in their homes but the government has not supplied electricity to these villages for over a decade.

Many people in the world might find it strange that nearly 60 percent of Nepalis are still forced to live in darkness without electricity, roads and many other basic amenities; and 20 percent of Nepalis among the lucky 40 percent who have electricity are either supplied by a community owned micro-hydro power plant or are supplied by a tiny solar panel hoisted on their roofs, and batteries ranging from 10 to 120 kilowatts.

Micro-hydro power plants and solar lighting systems are equally popular in Nepal, but the relative ease of installation and individual ownership is making solar energy more popular.

Compared to a regular grid price of 6 Rupees (Rs)/ per kilowatt unit of electricity (0.08 US cents), solar energy currently costs around Rs. 15/ to Rs. 20/ kilowatt (0.19-0.26 US cents), but people are still buying it because they have no other alternative. The only alternative is kerosene or expensive gas lamps that require hauling from urban centers, a process that takes days to reach rural villages atop rugged hills and the Himalayas. The alternative solar energy source on the other hand simply requires a one-time investment and the family gets light for nearly 10 years without any interruption.

Subsidized Solar Energy

The Solar Home System (SHS) as it is called is durable, as simple timely maintenance would keep the panel's peak productive capacity at 90 percent even after 25 years. The only question is that of battery life, which largely depends on the charge controller, but that too would last easily for five years. The only spare that the villagers need is a florescent bulb as it may suddenly die out at any moment.

One reason for the popularity of solar energy is that people living in far away rural areas have no other choice. Another reason is the subsidies the government provides. The government is in this way attempting to promote the use of solar energy as a clean, renewable and environment friendly technology. Subsidies are provided to families depending on their location (whether in accessible, remote or inaccessible rural areas) ranging between Rs. 8,000/- 10,000 ($104-$130) and 12,000/- ($156) per unit for 30 to 40 watt systems costing more than Rs. 25,000 ($325).

A 35-watt SHS costs around Rs. 25,000 to 30,000 ($325-$390) depending on the quality of the components used. 10 watts is the minimum and costs Rs. 12,000 to 16,000 ($156-$208) while a 120-watt unit costs Rs. 65,000 ($844).

The government gives a subsidy of up to 75 percent of the total installation cost for a community solar system in a remote area if installed by schools, health posts, temples, animal husbandry or adult literacy classes.

According to Saroj Rai, Solar Energy Program Coordinator at the Energy Sector Assistance Program (SEAP), the subsidy is given to the people through an Interim Rural Electricity Fund (IREF) created with 10 percent funds from the government and 90 percent funds from the Danish aid agency DANIDA.

Subsidy is given to those villages and households where there is no chance of getting regular electricity supplies either from a regular power grid or from a micro-hydro within the next five years.

Special Programs and Agencies

Solar energy was actually introduced in Nepal during the 7th five-year plan in 1989 when, with the help of the French government, three community solar energy systems were established in Bahrebishe of East Nepal, Simikot and Gumgadhi of Midwest Nepal.

However, with the initiative of the government and donor agencies in 1993, the installation of solar energy systems in rural households has gained popularity all over Nepal. To further boost the process, the government in 1996 established an Alternate Energy Promotion Center (AEPC).

Later on as an umbrella program, the Energy Sector Assistance Program (ESAP) was established in 1999 to promote the use of alternate sources of energy such as biogas, hydropower, wind and solar energy. With the establishment of ESAP, a comprehensive subsidy policy was also drawn by the government in 2000. In 2001, the Interim Rural Electricity Fund (IREF) was established to promote the use of alternate energy in Nepal.

According to ESAP, between 1993 and 2001 before ESAP was established, around 6000 units of Solar House Systems were installed. However, between 2001 to 2003, around 20,360 units have been installed in 67 districts and 1100 village development committees (VDCs) that represent several sparsely populated and thinly scattered villages.

The figures above represent only subsidized units. There are more than 30 community solar energy pumping stations used for irrigation. There are also trekking agencies, rest houses and teahouses on the trekking routes buying battery chargers, portable lights, installing lights as well as refrigeration systems for health professionals.

The government has planned to reduce the subsidy each year by 10 percent, but this new approach has so far been applied only to villages that are relatively accessible. The villages in far away remote areas continue to receive full subsidies.

According to ESAP sources, funds allocated to last till 2004 have already been spent, as they did not want to discourage any enthusiast who wanted to have a solar energy system at home. The result has been that even funding agencies like DANIDA are planning to go to other donor agencies to get them into a funding consortium in order to generate more funds and keep them in a basket fund to support new installations in remote areas, as the government has viewed energy as a preliminary step to fighting poverty.

ESAP has adopted the strategy of strengthening the villagers and helping them with income generation opportunities to fight the scourge of poverty. Besides protecting the villagers in terms of the quality of components and services, ESAP has also adopted a strategy to strengthen the private sector. The components produced by their collaborating 16 manufacturing companies are further tested in the Solar Energy Testing Station.

ESAP has given a freehand to manufacturers and customers to talk and negotiate about prices. The quality, however, must be approved by senior engineers and technicians from ESAP.

People wanting to install the system need not come to ESAP for subsidy. It is taken care of by the partner component manufacturers. They compile the application for 10 families and then get it approved for subsidy. All the villagers need to do is to pay the difference to the company.

One of the main criteria for the private sector companies is that there should be a minimum of 10 solar energy systems within a distance of three walking hours in remote areas so that it becomes feasible for them to travel for maintenance.

Apart from the individual systems installed in private homes, community solar power systems are going to be revived in Nepal within the next five years, as the European Commission (EC) has agreed to provide all the necessary funds to install solar energy systems in over 250 more village development communities within the next five years.

According to Rai at ESAP, the community projects are not showing encouraging trends in Nepal. They may not be successful because people are careful about their own possessions and want to invest in something that belongs to them.

In the case of a community system, people may be interested in receiving the service but will most probably be annoyed when it comes to paying for maintenance. However, good examples of community participation have emerged in the areas of community forestry and conservation and local development introduced by the Annapurna Conservation Progamme and could be easily replicated for something as urgent as community electrification.

Prakash Khanal  is a Nepali science and environmental journalist and former editor of RONAST Science Features as well as General Secretary of the Science Writers Association of Nepal.  Your emails will be forwarded to him by contacting the editor at:ScienceTech@islam-online.net.    

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