AWS Community Day CPH - Three problems of Terraform
A glimpse of bioenergy policy initiatives in Nepal
1. First National Conference on Bioenergy
24-25 August 2011; Kathmandu, Nepal
A Glimpse of
Bioenergy Policy Initiatives in Nepal
By
Mr. Nawa Raj Dhakal
Alternative Energy Promotion Centre (AEPC)
P.O.Box 14364, Kathmandu, N
P O B 14364 K th d Nepal l
E-mail: nawa.dhakal@aepc.gov.np; nrdhakal@yahoo.com
Web: www.aepc.gov.np
www aepc gov np
2. Biomass & bioenergy; bioenergy routes
Bioenergy in global energy consumption
Nepal: country background & energy situation
Position of bioenergy in
Periodic Plans
Energy/RE Policies & Strategies
RE Subsidy Arrangement
Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP/BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
Way forward 2
3. Biomass: material of biological origin, including
living plants, animals and resulting residues, but
excluding f
l di fossilized organic material embedded i
ili d i t i l b dd d in
geological formations
Bioenergy (Biomass Energy): energy from biomass,
produced directly or indirectly
Three primary applications of bioenergy: generation
of electricity, heating & transport fuel
3
4. 1Partsof each feedstock, e.g., crop residues could be used in other routes;
g p
2Each route also gives co-products;
3Biomass upgrading includes any of the densification processes;
4AD= Anaerobic Digestion
4 Source: E4tech, 2008.
6. Area- 147,181 km2; population- 28.1 million
A 147 181 k l ti 28 1 illi
Per capita income- US$ 470
Rural/urban population ratio- 86/14
>80% of people in agriculture
Energy consumption/Year- 401 M GJ; ~14 GJ/Capita
Energy sector situation:
Power crisis- Load shedding up to 16 hrs/day!
Shortage of petroleum products (100% imported)
imported)-
Import expenses >20% of country’s expenditure
( 40%
(~40% of foreign currency reserves)
Huge state subsidy to compensate NOC’s losses
6
7. By Fuel Type By Sector
Renewable (0.7%)
itional Bio
Tradi 7.1%)
omass (87
7 Source: WECS, 2010
8. Biomass & bioenergy; bioenergy routes
Share of bioenergy in global energy consumption
Nepal: country background & energy situation
Position of bioenergy in
Periodic Plans
Rural Energy Policy & Energy/RE Strategies
RE Subsidy Arrangement
Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP & BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
Way forward 8
9. Seventh Plan (1985-90):
Promotion of biogas & ICS f conservation of forest
P ti f bi for ti ff t
resources & for the benefit of rural people;
Allocated budget to provide subsidy for biogas
Distribution of ICS free of charge
9
10. Eighth Plan (1992-97):
Suitable steps to develop local energy resources
Formulation of an Energy Master Plan
Focus on promotion of biogas to control forest
destruction
Installation or 30,000 biogas plants
Awareness on biomass energy technologies like
densification, gasification, carbonization & ICS
Distribution of 250,000 ICS (100 000 in hills &
250 000 (100,000
150,000 in Terai)
10
11. Ninth Plan (1997-2002):
Ni h Pl (1997 2002)
Renewable Energy Subsidy Policy 2000
TTargets/policy measures:
t / li
Construction of 90,000 biogas plants (achievement
59,678;
59 678; 66%)
Expand ICS to make rural HH environment smokeless &
healthy
Installation of 250,000 ICS (achievement 51,100)
Conduction f t i i
C d ti of training & research on ICS
h
11
12. Tenth Plan (2002-07):
T h Pl (2002 07)
Renewable/Alternative Energy in P1 project
Bi
Biogas P
Program:
Construction of 200,000 (199,500 HH & 500 community)
biogas plants
R&D on small size biogas & on biogas for high hills
Installation of 250,000 ICS
Study & research on plant oils (biofuels)
Feasibility study on other BETs such as briquetting,
cogeneration & gasification
12
13. 3-Year Interim Plan (2007-10):
3Y I i Pl (2007 10)
Bioenergy Program:
Construction of 100,000 (99 950 HH & 50
C t ti f 100 000 (99,950
community/institutional) biogas plants
Additional financial support for poor & disadvantaged
R&D on high hill biogas & for cost reduction
Installation of 300,000 ICS & other bioenergy
technologies
R&D on bi f l
biofuels
Feasibility study & promotional activities on gasifiers,
briquettes,
briquettes biofuels etc
etc.
13
14. 3-Year Plan (2010-13):
3Y Pl (2010 13)
Bioenergy:
Construction of 90,000 HH 50 community, & 75
C t ti f 90 000 HHs, it
institutional biogas plants
Installation of 300,000 ICS & other bioenergy
technologies
Promote bio briquettes in 200,000 HHs of urban
areas.
14
15. Working policies for
W ki li i f
Biogas
F l wood, Ch
Fuel d Charcoal, B i
l Briquette, Bi
Biomass E
Energy,
Biomass Gasification
Improved Cook Stove Technology
15
16. Biogas
R&S on HH biogas technology to increase efficiency,
to reduce cost & to promote it in high hills
R,D&D of community & institutional biogas plants
Information & demonstration centres in coordination
& with support from local governments
Discouraged use of dried animal dung (Guitha) as
HH fuel
16
17. Fuel wood, Charcoal, Briquette, Biomass Energy &
wood Charcoal Briquette
Biomass Gasification
Scientific management of charcoal production,
g
distribution & uses
Development & dissemination of technology for
briquette, biofuel, biomass gasification, etc. based on
feedstock availability
R&D to identify raw material for briquette production &
to reduce its production cost
A
Awareness creation on use of briquette, biofuel, biomass
ti fbi tt bi f l bi
gasification etc.
R d ti i f l wood consumption b d
Reduction in fuel d ti by developing
l i
technologies like ICS & gasifiers
17
18. Improved Cook Stove Technology
Awareness on smokeless & fuel wood efficient ICS
Emphasis on R,D&D of household & institutional ICS
suited to geographical & cultural needs
ICS technology t
t h l transfer in rural areas
f i l
18
19. National Energy Strategy (Draft - WECS, 2010)
Jatropha Plantation Guideline (Draft- MoFSC, 2009)
(Draft
Strategy for Promotion of Biofuels (Draft- AEPC, 2009)
Biofuel Policy & Action Report (Ongoing….NPC, 2011)
20 Years Renewable Energy Perspective Plan
gy p
(Ongoing…..AEPC, 2011)
19
20. National Energy Strategy (Draft - WECS, 2010)- 1
WECS 2010)
Biomass
Gradually decrease the share of traditional energy in the
energy mix of the country
P
Promote technologies th t improve efficiency of biomass
t t h l i that i ffi i f bi
Exploit the potential of developing 1.9 million biogas
plants out of 5 million HHs
l t t f illi HH
Promote emerging BETs such as briquettes, gasifiers,
cogeneration & liquid biofuels
Develop biomass energy through decentralized
implementation arrangements; integrate in local
government’s planning
20
21. National Energy Strategy (Draft - WECS, 2010)- 2
WECS 2010)
Biomass
Forestry sector policies & programs to address poor
people’s livelihoods & poverty reduction
C
Community f
it forestry as a vehicle f social i l i
t hi l for i l inclusion
Alternative livelihood strategies in responding to fuel
wood t d
d trade
Develop capacity to capture CDM benefits
Energy demand for cooking & heating in the rural &
semi-urban area shall be met by traditional biomass
such as fuel wood
21
22. Subsidy for Biogas & Improved Cooking Stoves (
y g p g )
(ICS)
22
24. Biogas- 2
g
Districts/Category Rs./Plant
1 Basic Subsidy
20 Terai districts 9,000
40 Hill Districts with road access 12,000
15 Remote districts 16,000
2 Additional Subsidy based on Penetration & Plant Size
40 Low Penetration Districts
Lo 700
Small users (plants of size 2,4,6 m3) 700
3 Additional Subsidy for Poor, Dalit Disadvantaged &
Poor Dalit,
Conflict Affected
20 Terai districts 2,000
,
40 Hill Districts with road access 2,500
15 Remote districts 24 3,500
25. Biogas- 3
g
Districts/Category Rs./Plant
4 Subsidy for Toilet Attached Biogas Plants
Plants*
20 Terai districts 3,500
40 Hill Districts with road access 4,000
,
15 Remote districts 4,500
5 Subsidy for Institutional Biogas Plants**
20 Terai districts 8,000
40 Hill Districts with road access 12,000
15 Remote districts 16,000
*If fund is available from relevant development partners
**Using other than cattle dung as feedstock
25
26. Biogas- 4
g
Districts/Category Rs./HH
6 Subsidy for Community Biogas Plants
20 Terai districts 6,000
40 Hill Districts with road access 9,000
15 Remote districts 12,000
7 Transportation Subsidy Rs./Plant or HH
12 Remote* districts 2,000
3 Very remote** districts 4,000
* Bhojpur, Darchula, Jajarkot, Khotang, Sankhuwasabha, Bajhang, Bajura,
Jumla, Kalikot, Manang, Mustang & Solukhumbhu
** Dolpa, Humla & Mugu
26
28. Improved Cooking Stoves
No direct subsidy for mud ICS
M t lli ICS: Rs 4,000 f th
Metallic ICS R 4 000 for three pot h l & R 2 700 f
t hole Rs 2,700 for
two pot hole
Up to Rs 2 000 household & up to 5 000 for institutional
2,000 5,000
gasifiers (but not more than 50% of total cost)
28
29. Other Renewable Energy
Oth R bl E
No direct subsidy but support in studies, research &
development, trainings and pilot projects in the field
of other renewable energy, e.g., biomass briquette,
institutional gasifiers, bi f l etc.
i tit ti l ifi biofuels t
29
30. Biomass & bioenergy; bioenergy routes
Share of bioenergy in global energy consumption
Nepal: country background & energy situation
Position of bioenergy in
Periodic Plans
Energy/RE Policies & Strategies
RE Subsidy Arrangement
Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP/BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
Way forward 30
31. 1975/76 “Agriculture Year”- o c a p o o o s a ed
9 5/ 6 g cu u e ea official promotion started
GGC (1977), joint venture among ADB/N, DCS/UMN &
Fuel Corporation Nepal
p p
Biogas Support Programme (BSP) began with Dutch
support via SNV in 1992
Became Nepal’s first CDM project (2005)
Gold Standard Biogas Project (GSP) partnership with
(GSP),
WWF (2006)
Key achievements (from users’ perspective)
users
Strong local network of service providers (81
companies, 2 national NGOs, & MFIs/Banks)
p , , )
263,779 HHs plus a few institutional & community
biogas plants 31
32. ICS promotion (1980-91) through Community Forestry
ti (1980 91) th hC it F t
Development Division
AEPC
AEPC-executed Energy Sector Assistance Programme
t dE S t A i t P
began from with Danish support in 1999; National ICS
Programme (NICSP) operational from 2000 in mid hills
NICSP approaches to promote HH mud-brick ICS:
Participatory Demand driven
Appropriate technology Subsidy less
Skill t
transfer at l
f t local l
l level
l Women-targeted
W t t d
32
33. Expanded NICSP became Biomass Energy Support
Programme (BESP) from 2007
Geography: Mid Hills High Hills Terai
Hills, Hills,
Technology: IICS, MICS, Gafiers etc
K achievements (f
Key hi (from users’ perspective):
’ i )
Strong local network of service providers (15
RRESCs, 250 LPOs;
RRESC ~250 LPO 32 private manufacturers)
i t f t )
7,700+ skilled stove technicians (Local
Promoters/Stove Masters)
~500,000 HHs benefitted through ICS & MICS plus
IICS and household & institutional gasifiers
33
34. Biofuels Program
Introduced from FY 2008/09 thru AEPC
Focus on Jatropha-based biodiesel
promotion
Major activities: Jatropha nurseries,
plantation, capacity b ildi
l i i building, pilot projects,
il j
& setting processing plants
P t
Partnership with NOC & other k players
hi ith th key l
35. Bioenergy policy/strategy an integral part of relevant
national policy/strategy (energy, industrial, land use,
agricultural,
agricultural forestry)
Sub-sectoral policy/strategy & targets
T h l i l di
Technological diversification, d
ifi i demonstration projects
i j
Carrying over the success experiences
R&D - technology adoption, skill transfer & QA/AC
CDM/carbon projects
Capacity building, institutional development
Public-Private-Cooperative partnership
Public Private Cooperative
35