Micro Hydropower plant in Kashmir

Overview

Your donations will help fund a project that will serve as a model for the region and yield many positive results such as reduction of usage of firewood, basic power supply for domestic and educational purposes, improvement in business activities and communication linkages.

Janawai is located in a remote area with no electricity grid and the provision of electricity means a boom for domestic, business and educational activities in the area. It is a small village with a population of 3,600 people consisting of around 450 households. The area is lacking basic infrastructure with a literacy rate of below 10%. The community lives under the poverty line; depending upon agriculture, livestock and seasonal labor work in urban areas for their livelihood. Due to the extreme remote location of the village, government has not been able to provide and assist the residents with their basic needs. Also, the floods in the recent past have destroyed the already deteriorating irrigation, electricity, and water-supply systems. The project aims to provide year round electricity to 200 households catering to 1800 people, local small businesses, a middle school and a basic health unit. The project life of over 25 years gives it longevity and the nominal billing amounts make it very sustainable for consumers and the microhydropower plant management.

This project is exciting for ADP to fund because:

The entire district is blessed with several water channels and streams providing great opportunity for setting up renewable micro hydropower plants. The previous project in Phullawai and this one in Janawai could become models of sustainable power generation in the entire district.  These projects have the potential of becoming a model for renewable energy not only for ADP but also for the whole region to establish several more Microhydropower plants in the future through external funding or internal community financing. The identified gaps in the area are very clear; there is no power generation which is a drag on the development of the area and a strain on natural resources such as oil and wood as well as financial resources. This project will support communication linkages and provide the basic facility of clean energy for domestic, educational and business purposes thereby uplifting the entire area.

Budget: PKR 3,479,067

ADP Share: PKR 2,049,706 (59%)

Community Share: NGO Share PKR 890,480 (26%) and Community Share PKR 538,880 (15%) 

Type of community Involvement: The community will offer their input in terms of unskilled labor, partial funds for civil works and local material arrangements.

Cost per beneficiary: PKR 569

Intended Impact:

Through the installation of the micro hydropower project, ADP will be able to support the provision of electricity for around 200 households as direct beneficiaries and another 250 households equivalent indirect beneficiaries e.g. school & main markets, which would aid in the establishment of new commercial activities, growth of the cottage industry and allowing the residents to learn income generation skills. The project will also aid in reduction of deforestation in the area as the residents are currently dependent on firewood for lighting their houses. Additionally, this project will establish a Village Development Committee and encourage collaboration, community mobilization & participation, and knowledge sharing in the area. This project requires your donations as it is not a standalone effort, this is the second of its kind, with the first one in Village Phullawai of District Neelum, which will serve as a replicable power model for the entire region in the future.

Partner Profile

Sustainable Development Organization (SDO) is a Community Based Organization (CBO) founded in 2008.  Working primarily in education, infrastructure, water and sanitation, livelihood, health areas, SDO encourages sustainable and self-reliant development. SDO has previously supported multiple education and energy projects, working on raising community awareness various social issues and training local activists. SDO has also collaborated with major donors to work on projects involving Girls’ Education Rights and Irrigation Channel Rehabilitation.

Key Metrics

ADP will monitor the progress via the the capacity of the plant (measured by operational days, working hours and electricity produced). ADP is also keen on ensuring the sustainability of the plant by creating targets of monetary contribution towards the operational cost by the electricity consumers in the village (households and schools).

Critical need: Access to electricity for 200 households and public facilities i.e. schools and small businesses.

Beneficiaries/Social Return: Number of connections – 200 to 250 (to be achieved within 2 months after project completion). With an average of 6 persons per household the total number of beneficiaries would be 1,800 direct and 1,800 indirect beneficiaries. Cost per beneficiary (direct & indirect) is under PKR 600.

 Longevity: Total expected life of the project = 25+ years.

Scalability: The project is scalable to add further generation capacity in the vicinity as several water channels are available to set up hydropower  plants. The project has a payback period of 8 years so potentially the community can finance an increase in power generation from funds generated through this project.

PKR 150 = 1 household’s cost per month for electricity.

PKR 25   = 1person’s cost of electricity per month (based on an average of 6 persons per house)

Total savings:  Savings for the village of Rs. 552,000/year (cumulative average) due to reduction in kerosene oil expense, and dry battery lamps (Average Current Expense Rs. 230/- x 200 houses x 12 months)

 Environmental: Complete end to use of firewood for lighting purposes. (Within 6 months of project completion)

 Completion of project: Within 6 months after signing of contract.

 Operational Days: 360 days

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Due Diligence Questions

Q. What is the Total cost of project?

Total cost is PKR 3.44 million while ADP share is PKR 2.05 million (59%). PKR 890,000 (26%) will be funded by SDO and PKR 539,000 (15%) will be provided by the community which will fund the civil works portion of the project including labor.

Q. How many people will it benefit?

The project will benefit 200 households, several small businesses, a middle school and a basic health unit. The project is scalable which will allow for future extensions to the outskirts of Janwai.

Q. Will the people of Janwai be charged for this electricity? Why?

Yes, a total of 250 houses, shops and small businesses will be charged PKR 150 per month while the school and basic health unit will be provided free power. This will generate a total revenue of PKR 37,500. This amount will be used to pay the salaries of the MHP operator/electrician and the line man responsible for providing connections and collecting bills. Also the maintenance of the machinery and future extension of transmission lines will be carried out with this money.

Q. Who will manage the excess funds after salaries and maintenance costs?

The funds will be deposited in an account to be managed by the Janawai CBO and the SDO. The payments made from the account will be co-signed by one representative each from the SDO and the Janawai CBO.

Q. Are there any special permissions required to set up MHP?

For MHPs generating less than 200KW there is no need to get NOCs or permission as per AJK State policies. Any individual, private business entity, community organizations or NGOs can install such power stations by following the prevailing state laws. However, on the request ADP, SDO will get NOC from the local authority.

Q. Who will have the ownership of the project once completed?

The ownership of the project will collectively rest with Janwai CBO (Community Based Organization) and SDO.

Q. Will the MHP project support business and industry?

The MHP project will support cottage industry of stitching, small agricultural machinery and retail business equipment. However, the project does not have the capacity to support heavy machinery.

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Type: Energy
Cost: $20,665

Location: Janawai village, Neelum Valley, Kashmir
Launched: January 2015

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