Micro hydro projects (MHPs)

Overall electricity supply shortfall: 7,000 MW
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Hydropotential: 60,000 MW; only 15% utilized

Ideal location in Khyber Pakhtunkhwa (KPK)

Rampant rurality – off-grid & unsustainable sources

Ideal geography – “run-of-river”/no dam needed
General MHP Overview
 5-150 kW hydropower unit
 Water head & flow from river/stream penstock tube
turbine  powerhouse  transmission lines:
& no seasonal impact
Cheap electricity provision & consumption
Easy operation & maintenance (O&M) – community runs MHP
 No direct GHG emissions (generators, lamps, and no indirect emissions either vs if national
grid was used)
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MHP implementation mandates collaboration and optioneering
Details of Implementation
MHP vs Photovoltaic Solar Panels
Reliability

*Initial investment: PKR 150,000-200,000 per kW

100 kW unit: provides for 150+ households

MHP: high (can run all day, throughout the year)

Completion time: 6-12 months; 25-year lifespan

Solar: medium (expensive batteries & seasonal impacts)
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Collaboration with NGOs (for contractors, surveyors, engineers):
Aga Khan Rural Support Program
(experience >260 MHPs)

Production Emissions

MHP: medium

Solar: high
Tariffs
Sarhad Rural Support Program

MHP: low
(experience >200 MHPs)

Solar: high (similar to grid)
Pakhtunkhwa Energy Development Organization (PEDO)
Community Involvement & Development
facilitates with government (generally no legal barriers)

MHP: high (sharing, income-generating activities)

O&M is community responsibility

Solar: low (underutilized capacity factor)

Provides support for small businesses

Potential for MHP IPP
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Successful implementation satisfies myriad social and business goals
Outcomes
*Carbon Offset (Scopes 1 & 2)
per kW
100 kW unit
**Grid
3 tCO2e/yr
310 tCO2e/yr
Diesel
Generator
2 tCO2e/yr
205 tCO2e/yr
Kerosene
1.9 tCO2e/yr
190 tCO2e/yr
Role in Management
AKRSP overlooks community’s tariff revenue reinvestment in:

Seeking O&M technical support

Small business funding

Infrastructure Improvements
Mitigating Challenges
Unskilled operators  Training provision
Flood protection  Barrier funding
Legal approvals  Effective collaboration
[Community
Development]
[Common
challenges for
community]
•
• SOCIAL
• Extensive improvement to quality of life in rural
KPK
(Counter-poverty effort)
 Affordable provision of clean electricity
 Increase in income-generating activities
 Direct employment opportunities
 Better educational conditions
 Lowered kerosene use & hazard
BUSINESS
• Offset GHG emissions = smaller carbon footprint
 New social investment example for companies
 More attractive brand image
 Adding to global initiative vs. climate change
 Corporate Social Responsibility (CSR) initiative
 High potential for an Independent Power Producer
(IPP) hydro project (eg. Laraib Energy) in the future
 Clean Development Mechanism (CDM) registration
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Framework for MHP
Problem
Goal
Resource
Allocation
Type
Input
Social
Output/ Key
Performance
Indicators
(KPIs)
Business
Output
Lack of proper electricity access in rural
Gilgit Baltistan
Provide electricity via MHP(s)
Social Investment
PKR 200k/kW CAPEX; collaboration w/
NGOs (~6 months); O&M + development
guidance
Number of households connected
Number of employment positions
created
# Street lamps installed
% Decrease in kerosene consumption
+ Long term development
# Number of tCO2e offset
+ Increased reputation
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Potential Inependent Power Producer Hydropower project
Example of a private company initiating an IPP hydroproject:
(Laraib Energy Ltd., subsidiary of HUBCO) – 84 MW New Bong Escape Hydroelectric Power Project in AJK, on River
Jhelum
•
•
•
•
•
•
•
•
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Planning & Construction 2019 – 2024, commenced 2019
Power purchase agreement with National Transmission and Despatch Company (NTDC)
Local & Intl Banks for financing loans & documentation
Gov. of Pak, Gov. of AJK, and other AJK entities for water use and land use agreements
Sambo Construction company for water-to-wire process, E&M equipment
subcontractor and design subcontractor
NTDC  REMACO Pak for O&M of project
Construction monitoring by Montgomery Harza (MWH, NESPAK) & tech advising by Mott
MacDonald (UK)
Offshore project insurances, Investment Advisor – Marsh
Registered as a CDM with the UNFCCC (first hydroproject in Pak to do so)
BOOT (build own operate transfer) basis; concession period – 25 years.
Low Tariff –Rs 6.84/kWh/adjustable –based on cost plus tariff mechanism
Great source of revenue, attractive returns on investment based on IPP success here
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Viable Regions in KPK for MHP Development
District
Chitral
Relatively
optimal
Malakand
Relatively
mediocre
Swat
Relatively
sub-par
Hydropotentia
l (Streams &
Mountainous
Terrain)
Space-wise
Untapped
Potential
Site
Familiarity
Population
Density
600/km2
<200 km to Taru
Jabba &
Chaklala
235/km2
~150 km to Taru
Jabba
195/km2
>200 km from
Taru Jabba and
Chaklala
450/km2
~150 km to Taru
Jabba
270/km2
<200 km to Taru
Jabba &
Chaklala
275/km2
~200 km to Taru
Jabba
25/km2
>200 km to Taru
Jabba and
Chaklala
272/km2
~150 km to
Chaklala
450/km2
~200 km Taru
Jabba & ~150
km to Chaklala
465/km2
~150 km to Taru
Jabba & ~70 km
to Chaklala
895/km2
~60 km to Taru
Jabba & ~150
km to Chaklala
Upper Dir
Lower Dir
Upper Dir
Buner
Swat
Shangla
Lower Dir
Chitral
Shangla
Malakand
Buner
Mansehra
Ease of Legal
Approval
Mansehra
Mardan
Abbotabad
Abbottabad
Haripur
(PEDO, NEPRA)
Proximity to
Shell
Facilities
(Depots)
Haripur
Mardan
6
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