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Table 3 Scores for the economic sustainability dimension

From: Sustainability assessment of a micro hydropower plant in Nepal

Themes

Dimensional weighting (%)

Code

Indicators

Score

Notes on scoring

Theme score

Investment

25

ECO1

Loan % of funding

5

No loan

4.43

ECO2

Grant % of funding

5

Completely funded by a governmental organization (AEPC)

ECO3

Payback period

4

Planned period of 6 years relatively short, but has not been reached completely due to delay in construction and HH connection

ECO4

Life cycle costs

0

Unable to score

ECO5

Repair and maintenance costs

4

Not very high

Community contribution

10

ECO6

Villager’s monetary contribution

3

Main usual monthly electricity charges

4.00

ECO7

Work on MHP activities (sweat equity)

5

Sweat work during construction, now for canal cleaning

Employee remuneration

5

ECO8

Official salary agreement (operator)

3

Contractual agreement

3.50

ECO9

Salary levels of employees/operator of MHP (absolute numbers)

4

Operator is satisfied

Electricity tariff

15

ECO10

Tariff collection pattern

3

Satisfying

3.4

ECO11

Monthly tariff collection

3

Satisfying

ECO12

Tariff for domestic use

3

Satisfying, separate tariff for HH and business use

ECO13

Tariff for commercial use

3

Satisfying, separate tariff for HH and business use

ECO14

Collection of tariffs that keep pace with inflation

5

Well adjusted (raised basic tariff from 60 to 80 NRs)

Project benefits

35

ECO15

General income increase per household

3

Satisfying

3.42

ECO16

Employment opportunity

3

Satisfying (e.g., carpentry)

ECO17

No. of new income-generating activities

5

Plenty of new income-generating activities

ECO18

Time saved from collecting firewood and wheat grinding

5

Average savings of 4 h/day, independent from collecting fire wood, e.g., due to rice cooker

ECO19

Competitiveness of the local community concerning electricity

0

Unable to score

ECO20

Sustainable end use of electricity

5

A relatively long list of sustainable end use of electricity

ECO21

Mechanism for sale of electricity to national grid

1

No policy mechanism, no sale in place

ECO22

No. of local energy suppliers

2

One energy supplier (NEA)

ECO23

Revenue/benefits of the local supplier

1

No notable increase in benefits (officially NEA as a whole operating at losses)

ECO24

Change in no. of local enterprises

5

Significant improvements, e.g., carpenter, miller, poultry farms

ECO25

Revenue/benefits of the local enterprises

1

Main family enterprises which are producing many home necessities

ECO26

Water allocation

2

Only little water used, due to small MHP

Entrepreneurial potential

10

ECO27

Openness to new experience

5

Existing ideas on using electricity for business: mustard mill, off-season vegetable farming (with irrigation), dairy farming (storing of milk), welding, tailoring, knitting, and handicraft for trade

3.50

ECO28

Conscientiousness

2

For 26.6%, the risk of failure would be too high for a realization of the ideas. Villager’s consciousness is affected by a lack of awareness of opportunities due to low education—government initiatives needed

Aggregated score—economic dimension

3.74