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Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Public Private Partnership for Promotion
of Biogas as a Clean Cooking Solution:
A Nepalese Experience
Mr. Nawa Raj Dhakal
Assistant Director
Alternative Energy Promotion Centre, Nepal
Workshop on South Asia’s Biogas Development
Asia Clean Energy Forum 2014
18 June 2014, ADB, Manila 1
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
2
Global Context of Cooking Fuel
 ~40% of the world's population (~3 billion people) relying
on solid biomass
 4 million premature deaths annually due to household air
pollution from cooking fuel (GBD Study, 2010)
 7 million deaths annually linked to air pollution: 4.3 million
attributable to household air pollution & 3.7 million
attributable to ambient air pollution (WHO, 2014)
Population using solid fuels (%), 2012
Source: WHO, 2013
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
3
Household Energy and Development Linkage
Source: WHO, 2006. Fuel For Life: Household Energy and Health.
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Nepal’s Energy Consumption Pattern
4
By Fuel TypeRenewable (0.7%)
Commercial (12.2%
)
Traditional(87.1%)
By Sector
Source: WECS, 2010
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Number of Households by Main Cooking Fuel
Data source: CBS, 2012
 4.03 million out of 5.42 million (~75%) households use solid biomass*
*7,500 premature deaths annually due to indoor air pollution (IAP) caused
by solid biomass burning in Nepal
5
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Introduction to Alternative Energy Promotion Centre
(AEPC)
6
 Established in Nov 3, 1996
 National Executing Agency – Renewable energy
programmes & projects
 Focal Agency of GoN, under MoSTE, for promotion
and development of RETs: semi autonomous status;
Board represented by public sector, private sector &
financial sector
 Mandate: policy and plan formulation, resource
mobilization, technical support, M&E, quality
assurance & coordination
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Scope of AEPC
7
 Micro/mini/small hydro (up to 10 MW) &
IWM
 Solar energy (PV & thermal)
 Bioenergy (Biogas, ICS, Biofuels,
Briquette, Gasifiers)
 Wind energy
 Other RETs (Geothermal, etc.)
 Energy Efficiency
 Climate Change
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Biogas: Country Background
GGC Established -
1977
Upto 1985 – 300 per year
7th
Five Year Plan (85/86 to 89/90) – 4000
targets with subsidy of 25% and credit
support through ADB/N-
8
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
National Rural & Renewable Energy Programme (NRREP, 2012-17)
9
1. Central Renewable Energy Fund (CREF) Component
2. Technical Supports (TS) Component
2.1 Biogas Subcomponent
2.2 Biomass Energy Subcomponent
2.3 Solar Energy Subcomponent
2.4 Community Electrification Subcomponent
2.5 Institutional Development Subcomponent
 2.5.1 Institutional Support

2.5.2 Monitoring

2.5.3 Gender and Social Inclusion
2.6 Climate and Carbon Subcomponent
2.7 Outreach and Local Governance Subcomponent
3. Business Development for RE and Productive Energy Use
(PEU) Component
• National framework programme of GoN implemented by AEPC
& supported by multiple development partners DANIDA,
Norway, WB, ADB, DFID, KfW, GIZ, SNV, UNDP, …)
•Components/Subcomponents:
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Focus of Biogas Sub-Component (BSC)
Scaled up implementation network is in place for biogas
- Sector Commercialization, Capacity building/technical
assistance, GESI & Regional concerns;
Domestic, community and institutional (large) biogas
plants are deployed/established;
New biogas (for waste digestion, motive power,
electricity production) technology is ready for piloting;
Waste to Energy projects in Municipalities of Nepal
10
Physical targets: 130000 domestic, 1000 institutional,
and 200 community sized biogas plants
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
11
Technology under BSC
Domestic Biogas
 GGC 2047 and Improved
Version (2,4,6,8 cum)
 Sahari Gharelu Biogas
(SGBP)- 23 Installed
 Plastic Biogas Digesters
(100) being piloted by
NBPA and GIZ
 Fibre Glass domes (4).
Large Biogas Plants
 Institutional (Police/Army
Barracks, Educational
institutions, Hospitals, etc.)
 Community
 Commercial (Industries &
Service Sector)
 Waste to Energy
(Anaerobic Digestion,
Pyrolysis/ Gasification,
Combustion)
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Scaling up Renewable Energy Project (SREP)
 Supported by the World Bank; within the
broader framework of NRREP
 Biogas projects for following categories to
be supported:
 Enterprise/Commercial biogas plants &
 Municipal scale waste to energy biogas plants.
12
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
13
• Rural Energy Policy, 2006
• Renewable Energy Subsidy Policy, 2013
• Renewable Energy Subsidy Delivery Mechanism, 2013
• VAT & Tax Exemption for RE systems/components
(Solar, Biogas, Wind & others)
• Guidelines for technology standardization, quality
assurance, monitoring etc
• Carbon revenue utilization guideline
Key Policies & Guidelines
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
PPublicublic
PPrivaterivate
PPartnershipartnership
DemandDemand
sideside
Public sectorPublic sector
Supply sideSupply side
Private sectorPrivate sector
Awareness &
capacity building
Planning, coordination &
networking
Quality Control,
monitoring & evaluation
Manufacturing &
installation
After sales services,
repair & maintenance
Int. Quality control &
monitoring
Credit Support
Subsidy
Users/ BeneficiaryUsers/ Beneficiary
Qualification/
Grading/
Evaluation
Standards/
Guidelines
Working Modality
14
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
15
Biogas Plant Installation & Subsidy Delivery
User’s Request comes to Biogas CompaniesUser’s Request comes to Biogas Companies
Random Sample Monitoring through Third PartyRandom Sample Monitoring through Third Party
AEPC/CREF verifies and releases subsidy to BCsAEPC/CREF verifies and releases subsidy to BCs
BSP/N assesses the report and recommends to AEPC for subsidyBSP/N assesses the report and recommends to AEPC for subsidy
disbursementdisbursement
Qualified Biogas Companies install biogasQualified Biogas Companies install biogas
plants and submit reports to NSP (BSP/N)plants and submit reports to NSP (BSP/N)
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Trend of Biogas Company Enlisting & Plant Construction
0
10
20
30
40
50
60
70
80
90
100 1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
Fiscal Year
No.BiogasCompaniesEnlisted
withBSP-Nepal
0
5,000
10,000
15,000
20,000
25,000
No.ofPlantConstructed
No. of Qualified Companies
Plant Construction (BSP+GSP)
16
Growth Trend
 Total 304,000+ plants constructed till date, including 14,000+
plants for which subsidy is yet to be paid
 1 million+ tonne of CO2e/year & 55+ GW installed capacity
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
17
Coverage/outreach of private companies
757 Offices:
113 PQ Companies
310 Branch Offices
334 Sub-branch Offices
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
18
Nepal Biogas promotion Association (NBPA)
Umbrella organization of biogas companies working for
advocacy, lobbying and capacity building
National Service Provider (NSP)
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Carbon Projects/Revenue
19
Project Title Type Registration/
Inclusion Date
Period for which
biogas plants
included
Number of
biogas
digesters
included
CERs
Issued
From To
Biogas Support Program
- Nepal (BSP-Nepal)
Activity-1
CDM Project
Activity
27-Dec-05 1-Nov-03 15-Jun-04 9,692 250,102
Biogas Support Program
- Nepal (BSP-Nepal)
Activity-2
CDM Project
Activity
27-Dec-05 16-Jun-04 6-Apr-05 9,688 234,238
Biogas Support Program
- Nepal Activity-3
CDM Project
Activity
13-Dec-11 7-Apr-05 8-May-06 20,254 36,261
Biogas Support Program
- Nepal Activity-4
CDM Project
Activity
13-Dec-11 9-May-06 21-Jun-07 20,318 42,328
Nepal Biogas Support
Program-PoA
CDM Program
of Activities
(PoA)
31-Jan-13 22-Jun-07Onwards Max
20,000 per
CPA
CPA-1 31-Jan-13 22-Jun-07 18-Mar-09 20,000
CPA-2 8-May-14 19-Mar-09 9-Mar-10 19,927
CPA-3 8-May-14 10-Mar-10 19-Feb-11 19,959
CPA-4 8-May-14 19-Feb-11 28-Feb-12 19,970
 Gross Revenue generated so far is around 4 Million USD
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Key Lessons/Experiences
20
 Partnership focus with well defined roles of each partner/
stakeholder (private companies, financial institutions,
NGOs, GOs, academic institutions etc.)
 Private sector in the front with clear “code of conduct”
 Awareness at end-user/consumer & institutional level
 Standardization of technology & procedures
 Continuous R&D (for cost reduction and technology
improvement/ contextualization)
Scaling up in all dimensions (geographic coverage,
feedstocks, technology and end-use/applications)
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Clean Cooking Solutions for All (CCS4ALL):
An Ambitious Call
20-27 Jan 2013 (07-13 Magh 2069)
21
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Technology Options for CCS4ALL
1. Improved Cooking Stoves (ICS), mud &
metallic types for efficient burning of firewood
& reduction in IAP; progress till Apr 2014:
800,000+ ICS & 120+ IAP free VDCs
2. Biogas to replace solid biomass fuel &
complement with ICS (e.g., biogas for
cooking food & ICS for animal feed);
progress till Apr 2014: 304,000+ plants
3. Solar cookers as alternative cooking means
in specific regions (e.g., trekking routes);
progress till Apr 2014: 600+
4. Briquettes, gasifiers & electricity based
cooking 22
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
23
Creating effective coordination and synergy towards CCS4ALL
NEPAL ALLIANCE FOR CLEAN COOKSTOVES (NACC)
www.nepalcookstoves.org
Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
AEP
C
Thank You!
For further communication:
Alternative Energy Promotion Centre
Khumaltar, Lalitpur
P.O. Box 14364, Kathmandu, Nepal
Tel. No.: 5539390, 5548468 Extn. 133
E-mail: nawa.dhakal@aepc.gov.np
www.aepc.gov.np

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Public Private Partnership for Biogas Promotion - A Nepalese Experience

  • 1. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Public Private Partnership for Promotion of Biogas as a Clean Cooking Solution: A Nepalese Experience Mr. Nawa Raj Dhakal Assistant Director Alternative Energy Promotion Centre, Nepal Workshop on South Asia’s Biogas Development Asia Clean Energy Forum 2014 18 June 2014, ADB, Manila 1
  • 2. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 2 Global Context of Cooking Fuel  ~40% of the world's population (~3 billion people) relying on solid biomass  4 million premature deaths annually due to household air pollution from cooking fuel (GBD Study, 2010)  7 million deaths annually linked to air pollution: 4.3 million attributable to household air pollution & 3.7 million attributable to ambient air pollution (WHO, 2014) Population using solid fuels (%), 2012 Source: WHO, 2013
  • 3. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 3 Household Energy and Development Linkage Source: WHO, 2006. Fuel For Life: Household Energy and Health.
  • 4. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Nepal’s Energy Consumption Pattern 4 By Fuel TypeRenewable (0.7%) Commercial (12.2% ) Traditional(87.1%) By Sector Source: WECS, 2010
  • 5. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Number of Households by Main Cooking Fuel Data source: CBS, 2012  4.03 million out of 5.42 million (~75%) households use solid biomass* *7,500 premature deaths annually due to indoor air pollution (IAP) caused by solid biomass burning in Nepal 5
  • 6. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Introduction to Alternative Energy Promotion Centre (AEPC) 6  Established in Nov 3, 1996  National Executing Agency – Renewable energy programmes & projects  Focal Agency of GoN, under MoSTE, for promotion and development of RETs: semi autonomous status; Board represented by public sector, private sector & financial sector  Mandate: policy and plan formulation, resource mobilization, technical support, M&E, quality assurance & coordination
  • 7. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Scope of AEPC 7  Micro/mini/small hydro (up to 10 MW) & IWM  Solar energy (PV & thermal)  Bioenergy (Biogas, ICS, Biofuels, Briquette, Gasifiers)  Wind energy  Other RETs (Geothermal, etc.)  Energy Efficiency  Climate Change
  • 8. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Biogas: Country Background GGC Established - 1977 Upto 1985 – 300 per year 7th Five Year Plan (85/86 to 89/90) – 4000 targets with subsidy of 25% and credit support through ADB/N- 8
  • 9. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C National Rural & Renewable Energy Programme (NRREP, 2012-17) 9 1. Central Renewable Energy Fund (CREF) Component 2. Technical Supports (TS) Component 2.1 Biogas Subcomponent 2.2 Biomass Energy Subcomponent 2.3 Solar Energy Subcomponent 2.4 Community Electrification Subcomponent 2.5 Institutional Development Subcomponent  2.5.1 Institutional Support  2.5.2 Monitoring  2.5.3 Gender and Social Inclusion 2.6 Climate and Carbon Subcomponent 2.7 Outreach and Local Governance Subcomponent 3. Business Development for RE and Productive Energy Use (PEU) Component • National framework programme of GoN implemented by AEPC & supported by multiple development partners DANIDA, Norway, WB, ADB, DFID, KfW, GIZ, SNV, UNDP, …) •Components/Subcomponents:
  • 10. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Focus of Biogas Sub-Component (BSC) Scaled up implementation network is in place for biogas - Sector Commercialization, Capacity building/technical assistance, GESI & Regional concerns; Domestic, community and institutional (large) biogas plants are deployed/established; New biogas (for waste digestion, motive power, electricity production) technology is ready for piloting; Waste to Energy projects in Municipalities of Nepal 10 Physical targets: 130000 domestic, 1000 institutional, and 200 community sized biogas plants
  • 11. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 11 Technology under BSC Domestic Biogas  GGC 2047 and Improved Version (2,4,6,8 cum)  Sahari Gharelu Biogas (SGBP)- 23 Installed  Plastic Biogas Digesters (100) being piloted by NBPA and GIZ  Fibre Glass domes (4). Large Biogas Plants  Institutional (Police/Army Barracks, Educational institutions, Hospitals, etc.)  Community  Commercial (Industries & Service Sector)  Waste to Energy (Anaerobic Digestion, Pyrolysis/ Gasification, Combustion)
  • 12. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Scaling up Renewable Energy Project (SREP)  Supported by the World Bank; within the broader framework of NRREP  Biogas projects for following categories to be supported:  Enterprise/Commercial biogas plants &  Municipal scale waste to energy biogas plants. 12
  • 13. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 13 • Rural Energy Policy, 2006 • Renewable Energy Subsidy Policy, 2013 • Renewable Energy Subsidy Delivery Mechanism, 2013 • VAT & Tax Exemption for RE systems/components (Solar, Biogas, Wind & others) • Guidelines for technology standardization, quality assurance, monitoring etc • Carbon revenue utilization guideline Key Policies & Guidelines
  • 14. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C PPublicublic PPrivaterivate PPartnershipartnership DemandDemand sideside Public sectorPublic sector Supply sideSupply side Private sectorPrivate sector Awareness & capacity building Planning, coordination & networking Quality Control, monitoring & evaluation Manufacturing & installation After sales services, repair & maintenance Int. Quality control & monitoring Credit Support Subsidy Users/ BeneficiaryUsers/ Beneficiary Qualification/ Grading/ Evaluation Standards/ Guidelines Working Modality 14
  • 15. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 15 Biogas Plant Installation & Subsidy Delivery User’s Request comes to Biogas CompaniesUser’s Request comes to Biogas Companies Random Sample Monitoring through Third PartyRandom Sample Monitoring through Third Party AEPC/CREF verifies and releases subsidy to BCsAEPC/CREF verifies and releases subsidy to BCs BSP/N assesses the report and recommends to AEPC for subsidyBSP/N assesses the report and recommends to AEPC for subsidy disbursementdisbursement Qualified Biogas Companies install biogasQualified Biogas Companies install biogas plants and submit reports to NSP (BSP/N)plants and submit reports to NSP (BSP/N)
  • 16. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Trend of Biogas Company Enlisting & Plant Construction 0 10 20 30 40 50 60 70 80 90 100 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Fiscal Year No.BiogasCompaniesEnlisted withBSP-Nepal 0 5,000 10,000 15,000 20,000 25,000 No.ofPlantConstructed No. of Qualified Companies Plant Construction (BSP+GSP) 16 Growth Trend  Total 304,000+ plants constructed till date, including 14,000+ plants for which subsidy is yet to be paid  1 million+ tonne of CO2e/year & 55+ GW installed capacity
  • 17. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 17 Coverage/outreach of private companies 757 Offices: 113 PQ Companies 310 Branch Offices 334 Sub-branch Offices
  • 18. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 18 Nepal Biogas promotion Association (NBPA) Umbrella organization of biogas companies working for advocacy, lobbying and capacity building National Service Provider (NSP)
  • 19. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Carbon Projects/Revenue 19 Project Title Type Registration/ Inclusion Date Period for which biogas plants included Number of biogas digesters included CERs Issued From To Biogas Support Program - Nepal (BSP-Nepal) Activity-1 CDM Project Activity 27-Dec-05 1-Nov-03 15-Jun-04 9,692 250,102 Biogas Support Program - Nepal (BSP-Nepal) Activity-2 CDM Project Activity 27-Dec-05 16-Jun-04 6-Apr-05 9,688 234,238 Biogas Support Program - Nepal Activity-3 CDM Project Activity 13-Dec-11 7-Apr-05 8-May-06 20,254 36,261 Biogas Support Program - Nepal Activity-4 CDM Project Activity 13-Dec-11 9-May-06 21-Jun-07 20,318 42,328 Nepal Biogas Support Program-PoA CDM Program of Activities (PoA) 31-Jan-13 22-Jun-07Onwards Max 20,000 per CPA CPA-1 31-Jan-13 22-Jun-07 18-Mar-09 20,000 CPA-2 8-May-14 19-Mar-09 9-Mar-10 19,927 CPA-3 8-May-14 10-Mar-10 19-Feb-11 19,959 CPA-4 8-May-14 19-Feb-11 28-Feb-12 19,970  Gross Revenue generated so far is around 4 Million USD
  • 20. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Key Lessons/Experiences 20  Partnership focus with well defined roles of each partner/ stakeholder (private companies, financial institutions, NGOs, GOs, academic institutions etc.)  Private sector in the front with clear “code of conduct”  Awareness at end-user/consumer & institutional level  Standardization of technology & procedures  Continuous R&D (for cost reduction and technology improvement/ contextualization) Scaling up in all dimensions (geographic coverage, feedstocks, technology and end-use/applications)
  • 21. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Clean Cooking Solutions for All (CCS4ALL): An Ambitious Call 20-27 Jan 2013 (07-13 Magh 2069) 21
  • 22. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Technology Options for CCS4ALL 1. Improved Cooking Stoves (ICS), mud & metallic types for efficient burning of firewood & reduction in IAP; progress till Apr 2014: 800,000+ ICS & 120+ IAP free VDCs 2. Biogas to replace solid biomass fuel & complement with ICS (e.g., biogas for cooking food & ICS for animal feed); progress till Apr 2014: 304,000+ plants 3. Solar cookers as alternative cooking means in specific regions (e.g., trekking routes); progress till Apr 2014: 600+ 4. Briquettes, gasifiers & electricity based cooking 22
  • 23. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C 23 Creating effective coordination and synergy towards CCS4ALL NEPAL ALLIANCE FOR CLEAN COOKSTOVES (NACC) www.nepalcookstoves.org
  • 24. Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEP C Thank You! For further communication: Alternative Energy Promotion Centre Khumaltar, Lalitpur P.O. Box 14364, Kathmandu, Nepal Tel. No.: 5539390, 5548468 Extn. 133 E-mail: nawa.dhakal@aepc.gov.np www.aepc.gov.np