Public Private Partnership for Biogas Promotion - A Nepalese Experience

Alternative Energy Promotion Centre
Making Renewable Energy Mainstream Supply in Nepal
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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

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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

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Household Energy and Development Linkage
Source: WHO, 2006. Fuel For Life: Household Energy and Health.

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Nepal’s Energy Consumption Pattern
4
By Fuel TypeRenewable (0.7%)
Commercial (12.2%
)
Traditional(87.1%)
By Sector
Source: WECS, 2010

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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

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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

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Scope of AEPC
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 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

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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

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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:

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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

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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)

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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

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• 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

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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

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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)

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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

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Coverage/outreach of private companies
757 Offices:
113 PQ Companies
310 Branch Offices
334 Sub-branch Offices

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Nepal Biogas promotion Association (NBPA)
Umbrella organization of biogas companies working for
advocacy, lobbying and capacity building
National Service Provider (NSP)

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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
- Nepal (BSP-Nepal)
Activity-2
CDM Project
Activity
27-Dec-05 16-Jun-04 6-Apr-05 9,688 234,238
- Nepal Activity-3
CDM Project
Activity
13-Dec-11 7-Apr-05 8-May-06 20,254 36,261
- 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

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Key Lessons/Experiences
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 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)

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Clean Cooking Solutions for All (CCS4ALL):
An Ambitious Call
20-27 Jan 2013 (07-13 Magh 2069)
21

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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

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Creating effective coordination and synergy towards CCS4ALL
NEPAL ALLIANCE FOR CLEAN COOKSTOVES (NACC)
www.nepalcookstoves.org

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Thank You!
For further communication:
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

Public Private Partnership for Biogas Promotion - A Nepalese Experience

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