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Small hydro and rural development in Tajikistan - Energy for development and poverty reduction
 

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UNDP presentation - Zoran Morvaj at Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

UNDP presentation - Zoran Morvaj at Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

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    Small hydro and rural development in Tajikistan - Energy for development and poverty reduction Small hydro and rural development in Tajikistan - Energy for development and poverty reduction Presentation Transcript

    • Small hydro and rural development in Tajikistan —Energy for development and poverty reduction
      Zoran Morvaj
      Third Inter-Agency Conference on Regional Coordination and
      Compound Risks in Central Asia
    • Contents
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
      2
      1. Situation analysis and UNDP approach
      2. Area based piloting of RES driven Integrated rural development (IRD)
      3. Scaling-Up of the RES driven IRD
      4. Enabling Environment for the Scaling-Up
      5. Impacts of Improved Access to Electricity on Poor Households and on the Environment
      6. Conclusion
    • Situation Analyses and UNDP Approach – Background
      73% of population lives in rural areas -> consuming only 8.58% of electricity!
      53% of population lives below the poverty line (2007);
      The PRS III adopted, but poverty causes still not identified;
      1 million people considered to be particularly affected by lack of access to electricity;
      Tajikistan`s key resource – hydro potential!
      “Power Island” -> energy security and future energy exports are top national priorities: long term goal to finish HPP Rogun
      Intermediate solution needed!
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Energy Poverty =
      Household’s inability to afford and/or to access the basic energy services,
      in the cases where desire to use these services exist.
      Situation Analyses and UNDP Approach – Understanding poverty
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Urban and rural poverty
      Basic energy services in rural households:
      lighting,
      heating,
      cooking,
      Lack of access to reliable and affordable electricity -
      key poverty driver at rural communities!
      Situation Analyses and UNDP Approach – Understanding poverty
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Poverty - Energy – a household energy balance
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Poverty - Environment
      Reliance on firewood – environmental degradation
      7
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Poverty - Energy efficiency
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
      8
    • Poverty - Energy efficiency
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
      9
    • D1
      D2
      D…l
      Donors
      Situation Analyses and UNDP Approach – Context
      . . .
      M1
      M2
      M3
      M13
      Ministries
      Issues
      Projects:
      Effects?
      ND & PRS
      pop. 7M (50% poverty rate)
      Fragmentation!
      Coordination and integration!!
    • Situation Analyses and UNDP Approach – Governance
      Integration and coordination!
      13 ministries
      GoT
      Strengthening institutional and regulatory framework for PRS implementation;
      Strengthening local capacities to implement and operate specific projects;
      Region
      (4)
      District
      (59)
      Establish vertical
      coordination and
      communication
      mechanisms
      Jamoat
      (ap. 406)
      City
      (ap. ….)
      (ap. ….)
      (ap.
      Village
      Mahala
      Mahala
      Mahala
      Mahala
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      1. Every village in Tajikistan is situated on at least one water flow -
      Small scale hydro power plants (sHPP)
      2. 280-330 sunny days with 3.5 to 5.3 kWh/m2/day on the year
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Electricity powering local workshops – creation of income generation opportunities!
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Varsob district - Roh village: ski resort and hotel
      ENERGY
      TOURISM
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Key objectives
      Poverty reduction by improving access to electricity based on local resources and through that improving quality of basic social services, provision of clean water and creation of income generating opportunities – i.e. supporting integrated rural development (IRD);
      Provide impuls for economic development in the sectors related to RES (and EE), by devising support mechanisms for implementing rural RES (and EE) schemes;
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and UNDP Approach
      Local resources for local development and poverty reduction.
      Key Pillars of UNDP response:
      Establishing proper policy framework that will promote community based sHPP and EE projects:
      Intermediate Strategy for RES driven Integrated Rural Development and related regulatory framework
      Energy Efficiency Master Plan (EEMP)
      National Programme for RES driven Integrated Rural Development - National Scaling-Up
      Standardization guidelines for sHPP construction (30 – 500 kW);
      Developing local manufacturing, engineering, operation and maintenance capabilities related to RES and EE:
      District Development Planning
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • How we are doing that:
      Area based piloting of RES driven Integrated rural development (IRD)
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      20
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      AIMS:
      • To develop and implement pilot projectsfor integrated ruraldevelopment driven by provision of electricity from mini hydro (possible other renewable) as the driver, and then to integrate clean water, irrigation, food, employment, education and health issues.
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Situation Analyses and Approach
      Key Issues:
      to made the approach sustainable by involving local communities as operators of facilities, collecting payments from communities during winters, and selling electricity to the grid during summers where feasible;
      to support capacity strengthening at relevant institution (ministries, district, jamoat, local communities) for implementation of PRS;
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Vahdat district/city
      • 10 jamoats, 178 villages;
      • population 268,700:
      83,762 are employed,
      31,312 are unemployed,
      17,601 are pensioners,
      • 143 schools;
      • 83 hospitals;
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      • Jamoat Bozorboy Burunov
      • 15,000 inhabitants, 17 villages and 449 dehkan farms;
      The main activities are land cultivation and cattle breeding;
      List of Jamoat administration (salaries 467 – 92 TJS/month):
      Head of Jamoat -
      Deputy of the head of jamoat
      Secretary, Chief accountant, Accountant, Cashier
      Accountant on statistics, Land surveyor
      Specialist on regulating national traditions
      Secretary (assistant), The head of military department
      Deputy of the head of military department, Operator
      Maid (cleaner), Guard
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      The jamoat’s annual budget: 314.680 TJS,
      The social units in the jamoat:
      3 ambulance stations, 8 medical points, 2 kindergartens, 1 polyclinic.
      1 school and 1 hospital (on Vakhdat district budget)
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project 1:
      Construction of sHPP for community use during winters and for selling electricity to the grid (Barki Tajik) during summers
      “On the Introduction of Changes and
      Amendments to the Law on Energy»
      Article 1. The following changes have to be
      Introduced to the law on “Law on Energy”
      dated November 29, 2000 Reg. # 12, Article 633):
      Add the following changes to the Article 15
      part two and three:
      “In order to promote and support the development
      of small energy, to introduce and use alternative
      sources of energy, ………………..”
      Date: July 30, 2007
      Reg. #310
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project s:
      Rehablitation of hospital – Gulobad village
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project 2:
      Rehablitation of hospital – Gulobad village
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project 3: Rehabilitation of School
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Pilot project 4: Water pump station repair
      2. Area based piloting of RES driven Integrated rural development (IRD)
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project 5: create income generation opportunities construction of a Mini diary 500 l/day
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      Pilot project 6: create income generation opportunities construction of a greenhouse
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 2. Area based piloting of RES driven Integrated rural development (IRD)
      ResultsAchieved :
      Necessary capacity building initiated and ongoing:
      • An Inter-ministerial Task Force formed and active;
      • DDP for vahdat district developed and publicly presented,
      • Jamoat authorities actively patricide in all pilot projects
      • Local communities contribute for pilot projects with labor..
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • ~
      2. Area based piloting of RES driven Integrated rural development (IRD)
      3. Policy and regulatory framework for RES utilization developed
      ResultsAchieved :
      2. Standardized procedures for community based sHPP:
      • Clear procedures and regulation;
      • Methodology for setting tariffs
      • Conditions for connection to Barki Tajik network
      • Technical standardization
      • Financial support
      • Vocational training
      4. EE master plan
      • Environmental sustainability in PA
      MEDT
      MoEI
      SCI
      IPP
      MoEd, MoAg&Env, MoH
      Jamoat Resource Center, …
      Dep. Of
      Statistics
      5. Coordination mechanisms
      for PRS stakeholders in place
    • 35
      3. Scaling-Up of the RES driven IRD
      Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success
      Potential to develop local industry and supply chain- standardization
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 3. Scaling-Up of the RES driven IRD
      Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success
      Potential to develop local industry and supply chain- standardization
      + it is here already
      36
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 3. Scaling-Up of the RES driven IRD
      mHPP enables distributed electricity generation at the point of demand
      RES generated electricty could replace some of the firewood used for erhatign and cooking
      The average rural household -40 kilos of collected fuel-wood per day – women and children
      Up to 6 hours of physical work daily
      Significant financial returns to local economy through incentives and utilisation of locally available goods and services
      Creation of income opportunities
      Overall improvement of livelihoods
      37
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 3. Scaling-Up of the RES driven IRD
      38
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 3. Scaling-Up of the RES driven IRD Energy Efficiency
      39
      The selected EE measures should include the following:
      improving building insulation by using locally available resources (straw and cane) and technologies (lathing and furring);
      enhancing single glazed windows with a double glazing
      improving cooking/heating stoves
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 40
      3. Scaling-Up of the RES driven IRD Energy Efficiency
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 4. Enabling eenvironment for the Scaling-Up
      41
      Technology Transfer
      Know how for O&M
      Manufacturing capacity
      Engineering services
      Training and education
      Public awareness and information
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 4. Enabling eenvironment for the Scaling-Up
      National Trust Fund for RES and EE
      To provide organizational and financial support for development of RES and EE in Tajikistan through:
      Provision of institutional support for electricity producers from RES, particularly to the local communities , i.e. managing the scheme of guaranteed RES electricity buy-back
      Incentives for electricity buy-back for grid connected mHPPs
      Financial aid for preparation of RES/EE project (up to 40%)
      Financial aid for thermal and for off-grid RES installations (up to 40%; up to 100%)
      42
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 4. Enabling eenvironment for the Scaling-Up
      • Legal establishment of the National Trust Fund for RES and EE
      • Government Regulation on establishment of “National Trust Fund for RES and EE” (drafted)
      • Establishment pursuant to the implementation of articles 14-16 of the Law “On the use of RES” and also on the basis of article 132 of the Civil Code
      • Main characteristics of the Fund:
      • Independent , non-commercial organization created by the Government
      • Funded by the Government wholly, or at least partially
      • Established for coordination and management of financial means targeted for development and implementation of RES and EE programs and projects
      • Projects of local communities for development of small scale energy supply systems have the priority in awarding financing from the Fund
      43
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Sources of financing – selected options
      4. Enabling eenvironment for the Scaling-Up
      • Main sources secured by the Government
      • 0.7% of the annual lump sum cost of electricity supplied to the consumers through distribution grids as well of oil products imported by economic agents
      • 100% of the means collected from the environmental (ecology) tax paid by all vehicle drivers
      • Other sources:
      • means from the republic and local budgets, non budgeted means designated to the Fund at the order of the legislation of RT;
      • International and national (financial) institutions’ credits, grants and donations
      • Financial and material resources, allocated in compliance with multilateral and bilateral cooperation programs of the Fund;
      • Incomes from the own activities, i.e. incomes from the interest rates on preferential credits
      • Other sources not forbidden by effective legislations
      44
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Awarding financial support from the Fund
      4. Enabling eenvironment for the Scaling-Up
      • Co-financing of projects/programs:
      • Allocated to physical and legal entities on the basis of open competition and inquiry
      • Priorities to be given to community based projects and realization of programs envisaged in strategic documents -> systematic approach
      • Conditions for obtaining financial assistance from the Fund shall be determined by the Rules of the Fund:
      • up to 50% of total costs for construction of community based RES power plants with condition that that 50% of power plant value is supplied by local sources in equipment and works -> resource based & development driven approach
      • up to 100% of total costs for national public promotional campaigns, educational and training programs on RES and EE -> human resources development
      • up to 40% of total costs for preparing project documentation
      • up to 40% of total costs for installation of RES systems for production of heat and implementation of EE improvement projects
      • up to 100% of total costs for RES and EE projects in remote rural regions and in the public sector
      45
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Awarding financial support from the Fund (
      4. Enabling eenvironment for the Scaling-Up
      Scheme for guaranteed buy-back of RES electricity
      46
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Key pillars of the Fund’s operational strategy
      4. Enabling eenvironment for the Scaling-Up
      • The Fund is needed to kick-start RES and EE activities on larger scale
      • Demonstrates the Government commitment
      • Attracts international financial institutions!
      • How to make the Fund fully operational?
      • Systematic approach – operation based on national strategies and scaling-up plan for RES based IRD
      • Resource-based and development driven – support primarily mHPP and demonstrate inclusion of domestic materials, products and work force
      • Human resources development – support educational and training programs to build national capacities for implementation ofRES and EE projects
      47
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 5. Impacts of Improved Access to Electricity on Poor Households and on the Environment
      48
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 6. Conclusions
      49
      Scaling-up impacts:
      Decreased indoor pollution
      6 hours of saved time (women and children) -> possibility to acquire jobs and to study
      Thousands of jobs and money making opportunities created
      Millions of US$ to go back to local communities
      Tons CO2 preserved in carbon sinks
      Biodiversity preservation (decreased deforestation, soil erosion, desertification, salinization)
      Overall improvement of the social services and quality of life
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • 6. Conclusions
      50
      Addressing poverty by implementing sHPPs accelerates progress to MDGs achievement
      Pilot projects proved successful => the way forward is to SCALE UP
      Scaling up requires functional Trust Fund and Technology Transfer
      The only available short-term solution for poverty reduction is to implement integrated rural development projects based on RES and EE.
      Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
    • Thank you for your attention!
      zoran.morvaj@undp.org