A glimpse of bioenergy policy initiatives in Nepal


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A glimpse of bioenergy policy initiatives in Nepal

  1. 1. First National Conference on Bioenergy 24-25 August 2011; Kathmandu, Nepal A Glimpse ofBioenergy Policy Initiatives in Nepal By Mr. Nawa Raj Dhakal Alternative Energy Promotion Centre (AEPC) P.O.Box 14364, Kathmandu, N P O B 14364 K th d Nepal l E-mail: nawa.dhakal@aepc.gov.np; nrdhakal@yahoo.com Web: www.aepc.gov.np www aepc gov np
  2. 2.  Biomass & bioenergy; bioenergy routes Bioenergy in global energy consumption Nepal: country background & energy situation Position of bioenergy in Periodic Plans Energy/RE Policies & Strategies RE Subsidy Arrangement Major programmes in bioenergy sector Biogas: BSP+ Bi ICS & other BETs: NICSP/BESP Biofuels: Biofuel Programme Bi f l Bi f l P Way forward 2
  3. 3.  Biomass: material of biological origin, including living plants, animals and resulting residues, but excluding f l di fossilized organic material embedded i ili d i t i l b dd d in geological formations Bioenergy (Biomass Energy): energy from biomass, produced directly or indirectly Three primary applications of bioenergy: generation of electricity, heating & transport fuel 3
  4. 4. 1Partsof each feedstock, e.g., crop residues could be used in other routes; g p2Each route also gives co-products;3Biomass upgrading includes any of the densification processes;4AD= Anaerobic Digestion 4 Source: E4tech, 2008.
  5. 5. Source: REN21, 2011.5
  6. 6.  Area- 147,181 km2; population- 28.1 million A 147 181 k l ti 28 1 illi Per capita income- US$ 470 Rural/urban population ratio- 86/14 >80% of people in agriculture Energy consumption/Year- 401 M GJ; ~14 GJ/Capita Energy sector situation:  Power crisis- Load shedding up to 16 hrs/day!  Shortage of petroleum products (100% imported) imported)-  Import expenses >20% of country’s expenditure ( 40% (~40% of foreign currency reserves)  Huge state subsidy to compensate NOC’s losses 6
  7. 7. By Fuel Type By Sector Renewable (0.7%) itional BioTradi 7.1%) omass (87 7 Source: WECS, 2010
  8. 8.  Biomass & bioenergy; bioenergy routes Share of bioenergy in global energy consumption Nepal: country background & energy situation Position of bioenergy in Periodic Plans Rural Energy Policy & Energy/RE Strategies RE Subsidy Arrangement Major programmes in bioenergy sector Biogas: BSP+ Bi ICS & other BETs: NICSP & BESP Biofuels: Biofuel Programme Bi f l Bi f l P Way forward 8
  9. 9. Seventh Plan (1985-90): Promotion of biogas & ICS f conservation of forest P ti f bi for ti ff t resources & for the benefit of rural people; Allocated budget to provide subsidy for biogas Distribution of ICS free of charge 9
  10. 10. Eighth Plan (1992-97): Suitable steps to develop local energy resources Formulation of an Energy Master Plan Focus on promotion of biogas to control forest destruction Installation or 30,000 biogas plants Awareness on biomass energy technologies like densification, gasification, carbonization & ICS Distribution of 250,000 ICS (100 000 in hills & 250 000 (100,000 150,000 in Terai) 10
  11. 11. Ninth Plan (1997-2002):Ni h Pl (1997 2002) Renewable Energy Subsidy Policy 2000TTargets/policy measures: t / li Construction of 90,000 biogas plants (achievement 59,678; 59 678; 66%)Expand ICS to make rural HH environment smokeless & healthyInstallation of 250,000 ICS (achievement 51,100)Conduction f t i iC d ti of training & research on ICS h 11
  12. 12. Tenth Plan (2002-07):T h Pl (2002 07) Renewable/Alternative Energy in P1 project Bi Biogas P Program: Construction of 200,000 (199,500 HH & 500 community) biogas plants R&D on small size biogas & on biogas for high hillsInstallation of 250,000 ICSStudy & research on plant oils (biofuels)Feasibility study on other BETs such as briquetting, cogeneration & gasification 12
  13. 13. 3-Year Interim Plan (2007-10):3Y I i Pl (2007 10)Bioenergy Program: Construction of 100,000 (99 950 HH & 50 C t ti f 100 000 (99,950 community/institutional) biogas plants Additional financial support for poor & disadvantaged R&D on high hill biogas & for cost reductionInstallation of 300,000 ICS & other bioenergy technologiesR&D on bi f l biofuelsFeasibility study & promotional activities on gasifiers, briquettes, briquettes biofuels etc etc. 13
  14. 14. 3-Year Plan (2010-13):3Y Pl (2010 13)Bioenergy: Construction of 90,000 HH 50 community, & 75 C t ti f 90 000 HHs, it institutional biogas plantsInstallation of 300,000 ICS & other bioenergy technologiesPromote bio briquettes in 200,000 HHs of urban areas. 14
  15. 15. Working policies forW ki li i f Biogas F l wood, Ch Fuel d Charcoal, B i l Briquette, Bi Biomass E Energy, Biomass Gasification Improved Cook Stove Technology 15
  16. 16. Biogas R&S on HH biogas technology to increase efficiency, to reduce cost & to promote it in high hills R,D&D of community & institutional biogas plants Information & demonstration centres in coordination & with support from local governments Discouraged use of dried animal dung (Guitha) as HH fuel 16
  17. 17. Fuel wood, Charcoal, Briquette, Biomass Energy & wood Charcoal BriquetteBiomass Gasification Scientific management of charcoal production, g distribution & uses Development & dissemination of technology for briquette, biofuel, biomass gasification, etc. based on feedstock availability R&D to identify raw material for briquette production & to reduce its production cost A Awareness creation on use of briquette, biofuel, biomass ti fbi tt bi f l bi gasification etc. R d ti i f l wood consumption b d Reduction in fuel d ti by developing l i technologies like ICS & gasifiers 17
  18. 18. Improved Cook Stove Technology Awareness on smokeless & fuel wood efficient ICS Emphasis on R,D&D of household & institutional ICS suited to geographical & cultural needs ICS technology t t h l transfer in rural areas f i l 18
  19. 19.  National Energy Strategy (Draft - WECS, 2010) Jatropha Plantation Guideline (Draft- MoFSC, 2009) (Draft Strategy for Promotion of Biofuels (Draft- AEPC, 2009) Biofuel Policy & Action Report (Ongoing….NPC, 2011) 20 Years Renewable Energy Perspective Plan gy p (Ongoing…..AEPC, 2011) 19
  20. 20. National Energy Strategy (Draft - WECS, 2010)- 1 WECS 2010)Biomass Gradually decrease the share of traditional energy in the energy mix of the country P Promote technologies th t improve efficiency of biomass t t h l i that i ffi i f bi Exploit the potential of developing 1.9 million biogas plants out of 5 million HHs l t t f illi HH Promote emerging BETs such as briquettes, gasifiers, cogeneration & liquid biofuels Develop biomass energy through decentralized implementation arrangements; integrate in local government’s planning 20
  21. 21. National Energy Strategy (Draft - WECS, 2010)- 2 WECS 2010)Biomass Forestry sector policies & programs to address poor people’s livelihoods & poverty reduction C Community f it forestry as a vehicle f social i l i t hi l for i l inclusion Alternative livelihood strategies in responding to fuel wood t d d trade Develop capacity to capture CDM benefits Energy demand for cooking & heating in the rural & semi-urban area shall be met by traditional biomass such as fuel wood 21
  22. 22.  Subsidy for Biogas & Improved Cooking Stoves ( y g p g ) (ICS) 22
  23. 23. Biogas- 1BiogasGGC 2047 or its modified modelSize 2 to 8 m3Subsidy covers ~20-40% of the cost 23
  24. 24. Biogas- 2 g Districts/Category Rs./Plant1 Basic Subsidy 20 Terai districts 9,000 40 Hill Districts with road access 12,000 15 Remote districts 16,0002 Additional Subsidy based on Penetration & Plant Size 40 Low Penetration Districts Lo 700 Small users (plants of size 2,4,6 m3) 7003 Additional Subsidy for Poor, Dalit Disadvantaged & Poor Dalit, Conflict Affected 20 Terai districts 2,000 , 40 Hill Districts with road access 2,500 15 Remote districts 24 3,500
  25. 25. Biogas- 3 g Districts/Category Rs./Plant 4 Subsidy for Toilet Attached Biogas Plants Plants* 20 Terai districts 3,500 40 Hill Districts with road access 4,000 , 15 Remote districts 4,500 5 Subsidy for Institutional Biogas Plants** 20 Terai districts 8,000 40 Hill Districts with road access 12,000 15 Remote districts 16,000*If fund is available from relevant development partners**Using other than cattle dung as feedstock 25
  26. 26. Biogas- 4 g Districts/Category Rs./HH 6 Subsidy for Community Biogas Plants 20 Terai districts 6,000 40 Hill Districts with road access 9,000 15 Remote districts 12,000 7 Transportation Subsidy Rs./Plant or HH 12 Remote* districts 2,000 3 Very remote** districts 4,000* Bhojpur, Darchula, Jajarkot, Khotang, Sankhuwasabha, Bajhang, Bajura,Jumla, Kalikot, Manang, Mustang & Solukhumbhu** Dolpa, Humla & Mugu 26
  27. 27. Biogas 5Biogas- 27
  28. 28. Improved Cooking Stoves No direct subsidy for mud ICS M t lli ICS: Rs 4,000 f th Metallic ICS R 4 000 for three pot h l & R 2 700 f t hole Rs 2,700 for two pot hole Up to Rs 2 000 household & up to 5 000 for institutional 2,000 5,000 gasifiers (but not more than 50% of total cost) 28
  29. 29. Other Renewable EnergyOth R bl E No direct subsidy but support in studies, research & development, trainings and pilot projects in the field of other renewable energy, e.g., biomass briquette, institutional gasifiers, bi f l etc. i tit ti l ifi biofuels t 29
  30. 30.  Biomass & bioenergy; bioenergy routes Share of bioenergy in global energy consumption Nepal: country background & energy situation Position of bioenergy in Periodic Plans Energy/RE Policies & Strategies RE Subsidy Arrangement Major programmes in bioenergy sector Biogas: BSP+ Bi ICS & other BETs: NICSP/BESP Biofuels: Biofuel Programme Bi f l Bi f l P Way forward 30
  31. 31.  1975/76 “Agriculture Year”- o c a p o o o s a ed 9 5/ 6 g cu u e ea official promotion started GGC (1977), joint venture among ADB/N, DCS/UMN & Fuel Corporation Nepal p p Biogas Support Programme (BSP) began with Dutch support via SNV in 1992 Became Nepal’s first CDM project (2005) Gold Standard Biogas Project (GSP) partnership with (GSP), WWF (2006) Key achievements (from users’ perspective) users Strong local network of service providers (81 companies, 2 national NGOs, & MFIs/Banks) p , , ) 263,779 HHs plus a few institutional & community biogas plants 31
  32. 32.  ICS promotion (1980-91) through Community Forestry ti (1980 91) th hC it F t Development Division AEPC AEPC-executed Energy Sector Assistance Programme t dE S t A i t P began from with Danish support in 1999; National ICS Programme (NICSP) operational from 2000 in mid hills NICSP approaches to promote HH mud-brick ICS: Participatory Demand driven Appropriate technology Subsidy less Skill t transfer at l f t local l l level l Women-targeted W t t d 32
  33. 33.  Expanded NICSP became Biomass Energy Support Programme (BESP) from 2007 Geography: Mid Hills High Hills Terai Hills, Hills, Technology: IICS, MICS, Gafiers etc K achievements (f Key hi (from users’ perspective): ’ i )  Strong local network of service providers (15 RRESCs, 250 LPOs; RRESC ~250 LPO 32 private manufacturers) i t f t ) 7,700+ skilled stove technicians (Local Promoters/Stove Masters) ~500,000 HHs benefitted through ICS & MICS plus IICS and household & institutional gasifiers 33
  34. 34. Biofuels Program Introduced from FY 2008/09 thru AEPC Focus on Jatropha-based biodiesel promotion Major activities: Jatropha nurseries, plantation, capacity b ildi l i i building, pilot projects, il j & setting processing plants P t Partnership with NOC & other k players hi ith th key l
  35. 35.  Bioenergy policy/strategy an integral part of relevant national policy/strategy (energy, industrial, land use, agricultural, agricultural forestry) Sub-sectoral policy/strategy & targets T h l i l di Technological diversification, d ifi i demonstration projects i j Carrying over the success experiences R&D - technology adoption, skill transfer & QA/AC CDM/carbon projects Capacity building, institutional development Public-Private-Cooperative partnership Public Private Cooperative 35
  36. 36. 36