AEPC
                         Alternative Energy Promotion Centre
                             International Workshop on
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       Making Renewable Energy Mainstream Supply to Rural Areas




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              Alternative Energy Promotion Centre
              Making Renewable Energy Mainstream Supply to Rural Ar...
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             Alternative Energy Promotion Centre
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          Making Renewable Energy Mainstream Supply to Rural Areas

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             Alternative Energy Promotion Centre
             Making Renewable Energy Mainstream Supply to Rural Area...
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              Alternative Energy Promotion Centre
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               Alternative Energy Promotion Centre
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               Alternative Energy Promotion Centre
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             Alternative Energy Promotion Centre
             Making Renewable Energy Mainstream Supply to Rural Area...
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         Alternative Energy Promotion Centre
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         Making Renewable Energy Mainstream Supply to Rural Areas

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       Alternative Energy Promotion Centre
       Making Renewable Energy Mainstream Supply to Rural Areas




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              Making Renewable Energy Mainstream Supply to Rural Ar...
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Promoting Renewable Energy Technologies through Public Private Partnership_NRDhakal_Presentation

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Paper presented in international workshop on "Financing Village Level Energy for Development in Asia Pacific" jointly organized by ADB, GVEP & FDC in Manila

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Promoting Renewable Energy Technologies through Public Private Partnership_NRDhakal_Presentation

  1. 1. AEPC Alternative Energy Promotion Centre International Workshop on Making Renewable Energy Mainstream Supply to Rural Areas Financing Village Level Energy for Development in Asia Pacific April 09-11, 2008: Manila, Philippines Session 5: Friday, April 11 (9:00 – 10:30) “Public and Private Partnerships” Session Objective: To define, through real examples, the benefits, challenges, and opportunities of public and private partnership arrangements to deliver energy access, especially at the rural and peri-urban level The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.
  2. 2. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Promoting Renewable Energy Technologies through Public Private Partnership Mr. Nawa Raj Dhakal Training Officer, AEPC, Nepal E-mail: nawa.dhakal@aepc.gov.np/ nrdhakal@yahoo.com
  3. 3. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Presentation outline • Background: Nepal’s energy consumption pattern • AEPC: Objectives & Scope • Major AEPC programmes & Institutional set up • Key approaches & strategies • Programme implementation modality • Physical progress & important achievements • Benefits & Challenges • Conclusion
  4. 4. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Background-1 Nepal • Location: Southern slopes of the Himalayas • Area: 147,181 sq.km.
  5. 5. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Background-2 • Geographical regions: Terai (plain land), Hills and High Hills (Ranging 200m to 8,848m) • Population: 26.43 million; No. of HHs: 4,253,220 • Rural/urban population distribution: 84/16 • Per capita income: USD 260 • Energy consumption 2005/06: 8478 TOE • Major contribution from Traditional sources
  6. 6. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Nepal’s Energy Consumption Pattern 2005/06 By Fuel Type By Sector
  7. 7. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Alternative Energy Promotion Centre • Established in 1996 under the MoEST by AEPDB formation order • National executing agency of programmes and projects in renewable energy sector • Overall Objective: To popularise and promote the use of alternative/ renewable energy technology, to raise the living standard of the rural people, to protect the environment, and to develop the commercially viable alternative energy industries in the country
  8. 8. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Scope of AEPC • Micro/mini hydro & Improved Water Mills • Solar energy (PV and thermal) • Biogas • Improved cooking stoves • Wind energy • Geothermal • Other RETs (Bio-briquette, Gasifiers, Biofuel etc.)
  9. 9. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Major Programmes under AEPC SN Programmes Major Support Areas Donors 1. Energy Sector Micro/mini hydro, solar Danida, Assistance energy, biomass energy, Norway Programme institutional support 2. Rural Energy Micro/mini hydro, UNDP, Development community mobilization, World Bank Programme environment & sanitation 3. Renewable Energy Community/institutional EC Project solar energy systems 4. Biogas Support Biogas DGIS-SNV, Programme KfW 5. Improved Water Mill Improved water mills DGIS-SNV Support Programme
  10. 10. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Institutional Set up for Service Delivery MoF MoEST NPC AEPC Program Steering Committees (GoN, Donors Program/ Pvt. sector, donors, Projects other partners) Regional/Local outreach: Private Sector: Stakeholders: Promotion, Capacity Manufact…, supply, Coordination,… Build., Tech. Support etc. instal…, ASS Networking, Users/Community
  11. 11. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Key Approaches and Strategies • Sector Programme Support with a long-term perspective • Public Private Partnership with focus on community/users participation • Demand Driven Services
  12. 12. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Programme Implementation Modality Public Private Demand side Partnership Supply side Public sector Private sector Awareness & Manufacturing & capacity building supply Technical & financial Subsidy Sales & assistance installation Coordination & After sales services, networking repair & maintenance Quality assurance, Int. Quality control & monitoring & evaluation monitoring Users/ Beneficiary
  13. 13. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Public Sector Partners • VDCs, DDCs, GOs, (I)NGOs, CBOs, cooperatives, financial institutions and user groups/networks • Local outreach (RRESC, LPO, DEES/U, SO & SC) • Representation in AEPDB, programme steering committees • Relevant stakeholders (coordination & collaboration) – MoU with Agriculture Development Bank Limited, National Cooperative Federation Nepal, Poverty Alleviation Fund, Association of District Development Committees Nepal, National Association of VDCs Nepal, Centre for Technical Education and Vocational Training, World Wildlife Fund, Practical Action Nepal, Winrock International Nepal, and others.
  14. 14. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Focus on the Technical Supports • Standards, guidelines, manuals and quality assurance • Company qualification, grading • Tax exemption, Subsidy and Credit mobilization – Subsidy covers only 25-40% of the total cost; and rest is users’/community contribution- kind or cash/credit – Biogas credit fund in AEPC • Technical supports through local outreach – Awareness/ information dissemination; Survey, design; Training, orientation, demonstration; Channeling subsidy and mobilizing credit; Ensuring quality, monitoring and evaluation
  15. 15. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Major Private Sector Partners • Qualified companies/firms working in RET sector – 65 Biogas companies- NBPA; – 46 Micro/mini hydro companies & firms- NMHDA; – 38 Solar PV companies- SEMAN; – >20 Solar thermal companies- ASTED – >8 IWM manufacturing cum installation companies – Metallic stove manufacturing companies • Private sector represented in AEPDB, programme steering committees, and task force • Pvt. Companies deliver services at user’s end via their branch/dealers/agents
  16. 16. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Physical Progress on RET in Nepal SN Alternative Energy Unit Progress Number of HHs Technologies benefited Access to Electricity 6 % Population 1. Biogas Plants Number 184,000 184,000 2. Micro hydropower kW 10,347 103,470 3. Solar Home System Number 95,000 95,000 4. Solar Tuki Number 60,000 60,000 5. Solar Cooker/Dryer Number 2,500 2,500 6. Improved Cook Stoves Number 250,000 250,000 7. Improved Water Mill Number 3,552 106,560 Total 801,530
  17. 17. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Important Achievements 1. Rural Energy Policy 2006, RE Subsidy Arrangement & Delivery Mechanism, 2006 2. Established Rural Energy Fund (Basket fund) & Renewable Energy Test Station 3. Vibrant RET Sector with Quality assurance 4. Enhanced capacity of Pvt. companies, NGOs & local institutions in RET sector 5. Donors supporting RET sector through AEPC 6. Revenue generation through CDM 7. Recognitions and awards for AEPC progs.
  18. 18. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Major Benefits • Concerted/collaborative efforts & shared ownership • RET services locally available at affordable cost • Linking RET development/adoption with socio- economic development • Opportunity for employment generation and poverty reduction • Enhanced institutional confidence • Efficient use of traditional biomass fuels
  19. 19. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Main Challenges • Subsidy driven demand (?) • Credit mobilization not yet at the expected level • Business risk and shortage of working capital • Geographical coverage (remote) • Social coverage (pro-poor) • Retention of skilled human resource • Donor harmonization • Synergy and consistency
  20. 20. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Conclusion • PPP approach successful in providing RE services for rural areas • RE promotion generating ample employment opportunities • RE services contributing in poverty reduction and in improving the quality of life • RE sector moving towards commercialization
  21. 21. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Thank you for your kind attention!
  22. 22. AEPC Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply to Rural Areas Abbreviations • AEPC- Alternative Energy Promotion Centre • AEPDB- Alternative Energy Promotion Development Board • ASS- After Sales Services • ASTED- Association of Solar Thermal Energy Developers • DDC- District Development Committee • DEES/U- District Energy and Environment Section/ Unit • LPO- Local Partner Organization • MoEST- Ministry of Environment, Science and Technology • MoF- Ministry of Finance • NBPA- Nepal Biogas Promotion Association • NMHDA- Nepal Micro Hydropower Development Association • NPC- National Planning Commission • RRESC- Regional Renewable Energy Service Centre • SEMAN- Solar Electric Manufacturers Association Nepal • SO- Support Organization • VDC- Village Development Committee
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