completed · Climate· Governance

Freeflow river energy in Nepal using Tocardo-turbines

Note: This project has been cancelled, because of bankruptcy of the applicant.Nepal has a major shortage of energy that hampers its development. Hydro power is indicated as the most promising source of energy in the long term. Due to political instability, no major hydro power projects are initiated. A group of Nepali businessmen has invested in surveys to investigate the possibility for medium scale hydro power plants that do not require major engineering works like dams or pipes. The results were positive and led to the establishment of Glow Tech Solutions, the local partner. Tocardo International B.V., the applicant, is a Dutch company that developed a free flow turbine. Together they set-up a joint venture to produce electricity for the Nepalese national grid and to supply power plants to major businesses. To lower the costs of the turbines, the turbines will be moulded and assembled in Nepal. The major bottleneck for financing this joint venture commercially is the fact that investors and banks need proof that the free flow turbine performs according to its specifications in Nepal and can be collateral of a loan. Banks have already promised financing the assembly of new turbines in Nepal if this is demonstrated. The joint venture therefore needs PSI to finance the first four turbines that will be used for the production of electricity to be delivered to the national grid. The first turbines will be installed in Tanahu District, a lower hill area in south-east Nepal, where the river has the right flow characteristics.The joint venture will assemble the turbines and Glow Tech Solutions will built, install, operate and transfer the hydro plants for customers, using local contractors. Glow Tech has already acquired licenses to survey locations with an option to install hydro plants. The plants will be owned by the customers.Tocardo International BV will deliver some parts and design of the turbines and receive a royalty for the IPR. They will train the joint venture in assembling the turbines and in installing them at the site. In the long run they hope to use the joint venture as a base for delivering turbines to neighbouring countries that have rivers fed from the Himalayas.Corporate Social Responsibility (CSR)There are many CSR aspects. They concern gender, environment, corruption and human rights. In fact, this is a low risk project as far as CSR principles are concerned. The turbine was selected because of its minimum disruptive impact on rivers, producing clean energy. The rivers at the intended locations are not used for barging or fishery. The assembly does not require heavy machinery.Impact• Employment and working conditionsIn addition to the strict labour laws in Nepal, the workers will also receive extensive safety training.• Innovation / Transfer of knowledgeThe use of the free flow turbine is new to Nepal, as it is to most of the world.• Chain effectsThe local shareholders will become an important player on the energy market.The major impact will be an uninterrupted power supply for businesses. This would save costs for expensive back up installations.• Impact on the sectorLocal households can use off grid electricity and safe € 200 per year.• EnvironmentPositive impact. Hydro power is considered clean energy.• Position of womenNeutral.