Techno Economic Evaluation of LPG Gas Stove Replacement by Induction Stove in the Households of Kageshwori Manahara Municipality ‘Ward No.5’

Abstract

Nepal’s energy sector has a significant share of fossil fuel, 16.5% of the total energy sector is occupied by the fossil fuel. On the one hand, Nepal heavily relies on LPG and petroleum imports from India. Meanwhile, Nepal is continuously striving towards development of hydropower projects. The energy balance of the country must be revisited keeping in mind about the growing production and the improving transmission network for the hydroelectricity. Most of the Liquefied Petroleum Gas (LPG) imported inside the country is consumed within the Kathmandu Valley alone, out of 10 LPG cylinders that are imported within the country Kathmandu valley alone consumes 6 cylinders. The data published by the Nepal Oil Corporations (NOC) regarding the LPG import also indicates that the prices have been soaring up along with the volume of import. The growth in the production of the hydroelectricity by Nepal creates a favorable environment to increase the consumption and the export of such electricity. The current scenario of LPG import is just adding up the pressure to the economy of the country and apparently the country has to look forward for the better options to address the scenario. The significant growth and development in the hydropower sector can provide a formidable a solution to cut down the LPG import by utilizing the indigenous electricity produced from the hydropower. Currently various cooking technologies are being noticed in the market, among them Induction stoves are also the one. This thesis focuses on techno-economic aspects of replacement of LPG by the induction stove and the impact on the environment that can be achieved from the replacement. So, a clear picture must be presented to the consumers regarding the thermal efficiency, NPV, the payback period and the environmental benefits. The cooking efficiency of the induction stove is found to be at least 86% whereas the cooking efficiency of the LPG stoves is less than 50%. The comparative NPV for the induction stove and the LPG stove also shows that the induction stove is a better option compared to the LPG stove. The calculation regarding the payback period for the replacement of the LPG stove by the induction stove also shows that the savings in the O&M cost by replacing the LPG stove by the induction stove has more than 90% probability of recovering the initial investment made in the induction stove within thirty one months.