Public Private Partnership for Biogas Promotion - A Nepalese Experience

Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply in NepalA

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Public Private Partnership for Promotion of Biogas as a Clean Cooking Solution:

A Nepalese Experience

Mr. Nawa Raj DhakalAssistant 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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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 (%), 2012Source: 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

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By Fuel TypeRenewable (0.7%)

Commercial

(12.2%)

Tra

dit

ion

al

(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)

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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-

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National Rural & Renewable Energy Programme (NRREP, 2012-17)

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1. Central Renewable Energy Fund (CREF) Component2. Technical Supports (TS) Component

2.1 Biogas Subcomponent 2.2 Biomass Energy Subcomponent 2.3 Solar Energy Subcomponent2.4 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 Subcomponent2.7 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

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Physical targets: 130000 domestic, 1000 institutional, and 200 community sized biogas plants


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Technology under BSCDomestic 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.

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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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PPublic ublic PPrivate rivate

PPartnershipartnershipDemand Demand sideside

Public sectorPublic sector

Supply Supply sideside

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

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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 subsidy BSP/N assesses the report and recommends to AEPC for subsidy disbursementdisbursement

Qualified Biogas Companies install biogas Qualified 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

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Fiscal Year

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10,000

15,000

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No. of Qualified Companies

Plant Construction (BSP+GSP)

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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 companies757 Offices:

113 PQ Companies310 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 buildingNational Service Provider (NSP)


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Carbon Projects/Revenue

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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


27-Dec-05 16-Jun-04 6-Apr-05 9,688 234,238

Biogas Support Program - Nepal Activity-3


13-Dec-11 7-Apr-05 8-May-06 20,254 36,261

Biogas Support Program - Nepal Activity-4


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 20,000CPA-2 8-May-14 19-Mar-09 9-Mar-10 19,927CPA-3 8-May-14 10-Mar-10 19-Feb-11 19,959CPA-4 8-May-14 19-Feb-11 28-Feb-12 19,970

Total 139,808 562,929

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)

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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

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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:Alternative Energy Promotion Centre

Khumaltar, Lalitpur P.O. Box 14364, Kathmandu, Nepal

Tel. No.: 5539390, 5548468 Extn. 133E-mail: [email protected]

www.aepc.gov.np

Government & Nonprofit

Public Private Partnership for Biogas Promotion - A Nepalese Experience