Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

AEPC

Samir Thapa Assistant Director 22 November, 2012

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Biogas History
400 Plants 3,000 Plants

Biogas Component NRREP 2012

1st Plant , 1955

First Government Biogas Program,

Biogas Support Program (BSP)- 1992

- SNV Started

AEPC established1996 - GoN Support-

20,000 plants

AEPC

by Father Saubolle in St. Xaviers School.

1974 Oil Crisis

Total Installed ~ 270,000 plants ~ 25% of the Potential

Priority Program of the GoN

Time

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Biogas Sector Focus

Quality 1. 8 Criterion/ 82 parameters 2. Construction and After Sales Technical Support and Capacity Development 1. Users to create demand 2. Private Sector to provide services

Biogas Support Program

Financial Support/ Business Expansion 1. Subsidy and Credit Support 2. Companies Pre qualification Research & Development

AEPC

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Program Implementation Modality

Demand side Public sector (Government and NGO )

Public Private Partnership AEPC

Supply side Private Sector (Companies & FIs)

Awareness & capacity building Technical & financial Backstopping Quality Control Coordination & Networking AEPC

Guidelines/ Standards
Subsidy/ Monitoring

Manufacturing, Sales & Installation

After sales services, repair & maintenance

Int. Quality Assurance Credit Support & Guarantee

Users/ Beneficiary

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Financial Mix in Biogas Installation

Total ~ 62 Million US $ Government of Nepal = 8% (20% of the Subsidy) External Development Partners (SNV, WB and KfW) = 31% Clean Development Mechanism = 1% Users Contribution (Kind, Cash and Credit) = 60% Central Renewable Energy Fund (CREF) = 40 % of the Subsidy

Users Contribution Additional Targeted Subsidy

Basic Subsidy

AEPC

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Way Ahead
Policy Incorporation of Biogas Use Diversification Technology Innovation and Transfer

AEPC

Demonstration Effects Expanded Network for Implementation and Monitoring (Third Party) Support Focus on Repair and Maintenance Older Plants Develop accessible and user-friendly feedback system - Timely service and Measure Impacts and Outcomes.

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Private Sector Focus and Expansion

Core Strength Companies
1. Know the business 2. Institutional and organizational Capacity

Core Strength FI/MFIs

1. RE portfolio recognized 2. Outreach and Extension

CD and Monitoring support

Core Strength

Soft Loan AEPC

Business opportunities

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Core Policy Documents

Rural Energy Policy 2006 Biogas defined as a RE technology Fund Mobilization, Management and Monitoring clearly defined Subsidy Policy/ Arrangement 2009 (Amended)
Subsidy allocation based on 1) size 2) location and 2)

AEPC

ethnicity - address the bottom of the pyramid Increased with the increase in the plant cost Subsidy Delivery Mechanism 2009 (Amended) Process of subsidy delivery with the responsibilities of the stakeholders defined CDM Revenue Utilization Guideline 20 % program management (40% proposed) 80% subsidy (60% proposed)

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Lessons Learned
Establish a focal agency/unit for biogas program

AEPC

implementation planning, coordination and monitoring Partner with different stakeholders at all levels (Cooperatives, NGOs GOs) for the awareness and outreach. Define clear roles and responsibilities of private sector- Code of Conduct Consultants, companies and Finance Institutions Partner with the academic institutions for R and D Process Applications - Technology and Methods Outcomes and Impacts

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Challenges and Solutions

Scaling Up
Size, Numbers, Use Business Opportunities

Equity
Distribution- target groups, regions and beneficiaries

Smart/Pro Poor Subsidy.

Commercialization/Sustainability
Market Mainstreaming Justifying Subsidy !!

Innovative use of Carbon Revenue and Credit

AEPC

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Biogas for Better Life

- Thank You
AEPC

Alternative Energy Promotion Centre Nepal Ph: +977-1-5539390/5548468 E-mail: samir.thapa@aepc.gov.np Website: http://www.aepc.gov.np