Electrification with IWM and Micro Enterprise Development in Nepal



With a view to increase income, employment opportunities and reducing poverty of people residing in the rural areas through productive end-use of energy generated from the Improved Water Mills (IWMs), CRT/N has initiated a pilot project named ´Rural Community Electrification with Water Mill and Micro Enterprise Development in Nepal (Proof of Concept) ´ from July 2013-February 2014. With the financial and technical support from GIZ-EnDev and SNV Netherlands Development Organization, CRT/N has installed 4 IWM community electrification projects in the district of Kabhrepalanchok. In the course of the Project implementation, CRT/N will work in close collaboration with IWM kit manufacturers, installation companies, Ghatta Owners Association (GOA), District Development Committee (DDC) and potential micro enterprises. This Project will have policy guidance of Alternative Energy Promotion Centre (AEPC)/ Government of Nepal (GoN). The concept of the Project is based on using IWM Long Shaft technology to generate electricity for village electrification and productive use at rural micro enterprises.

The main objective of this Project is to support development of IWM Electrification (IWME) sector.

The specific objectives are as follows:

  • To identify the possibility of development of IWME projects incorporating the intervention from innovative business model, tariff structure, ownership management and financing.
  • Introduction of productive end use and micro enterprise sub-component with a market led approach in IWME project.
  • Capacity need assessment of District Development Committee, who are responsible for IWME development and subsidy management, and capacitating them.
  • Link micro finance institutions / rural cooperatives to the community so that they are able to mobilise credit for implementing the project, establishing micro-enterprises, product development and marketring. 

Development Partners (Funding agencies):

GIZ EnDev and SNV Netherlands Development Organization are the funding agencies for this project with the policy guidance and support from AEPC.

Partner organizations:

District based local organizations working as service centre for IWM technology under NRREP/AEPC are selected as local partner organizations. Ghatta Owners Association Kavre, Rural Mutual Development Dhading and Ghatta Entrepreneur Association Sindhuli are the local partners facilitating to implement this project.

Project area: 

This project covers 8 remote VDCs of Kavre, Sindhuli and Dhading districts. The VDCs are Gokule, Phalametar, Foksintar and Mecche in Kavre district. Similarly the VDCs are Kiranchowk and Jogimara in Dhading district and Khangsang and Ranichuri VDCs of Sindhuli district are the project areas.

Planned activities and progress: 

In order to achieve the objective of project different capacity building, sensitization, awareness creating and monitoring activities are conducted. Major activities planned and executed in this project are:
  • Baseline Study of Productive End-uses (PEU).
  • Selection of PQ Installer Company and Installation of IWME projects.
  • Skill development training for IWME owners for product/process identification for PEU and developing plan for market linkage. 
  • Capacity building training to IWME owners and rural entrepreneurs on end use operated by electricity.
  • IWME operation and management training to operators/managers of IWME projects.
  • Repair and maintenance training to IWME operators.
  • Development of scientific tariff system.
  • Development of business plan for PEUs/micro enterprises.

Physical progress:

Within the project period of July 2013 to May 2014, 6 IWME projects are installed generating 20.5 kW of power. With the power generated from these IWME projects 7 electrical end uses and 10 mechanical end uses are in operation.

No. of beneficiaries :

IWME project has electrified around 180 house holds of 6 villages of two project districts. In addition to this around 20 employment opportunities has been created from the electromechanical end uses benefitting number of households in the project village as well as adjoining villages.

Effects and impacts (based on observation or study): 

Productive end use and micro enterprise sub-component with a market led approach have been introduced in IWME program.
Possibility of development IWME program with innovative business model, tariff structure, ownership management and financing has been identified and tested.
Innovative financing mechanism to mobilize credit in implementing IWME project has been developed for piloting.
Experiences and knowledge products of the IWME program have been documented, developed and shared among the Key IWM stakeholders.
Strategic partnerships with key stakeholders for IWME projects in Nepal have been strengthened.
Capacity of District Energy and Environment Units, Regional Service Centers and Local Partner Organizations especially Ghatta Owner’s Association have been enhanced.

Related Downloads :

Download - Notice Published in Nagarik on 28 Oct, 2016
Download File
Download - Application Form In English
Download - Selection Procedure for Product Development