First National Conference on Bioenergy24-25 August 2011; Kathmandu, Nepal

A Glimpse ofA Glimpse of Bioenergy Policy Initiatives in Nepal

ByMr. Nawa Raj Dhakal

Alternative Energy Promotion Centre (AEPC)P O B 14364 K th d N lP.O.Box 14364, Kathmandu, Nepal

E-mail: nawa.dhakal@aepc.gov.np; nrdhakal@yahoo.comWeb: www aepc gov npWeb: www.aepc.gov.np

Biomass & bioenergy; bioenergy routes Biomass & bioenergy; bioenergy routes Bioenergy in global energy consumption Nepal: country background & energy situation Nepal: country background & energy situation Position of bioenergy in Periodic PlansPeriodic PlansEnergy/RE Policies & StrategiesRE Subsidy ArrangementRE Subsidy Arrangement

Major programmes in bioenergy sectorBi BSP+Biogas: BSP+ICS & other BETs: NICSP/BESPBi f l Bi f l PBiofuels: Biofuel Programme

Way forward2

Biomass: material of biological origin, including living plants, animals and resulting residues, but

l di f ili d i t i l b dd d iexcluding fossilized organic material embedded in geological formations

Bioenergy (Biomass Energy): energy from biomass, produced directly or indirectly

Three primary applications of bioenergy: generation of electricity, heating & transport fuel

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1Parts of each feedstock, e.g., crop residues could be used in other routes;

4 Source: E4tech, 2008.

g p2Each route also gives co-products; 3Biomass upgrading includes any of the densification processes; 4AD= Anaerobic Digestion

Source: REN21, 2011.

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A 147 181 k 2 l ti 28 1 illi Area- 147,181 km2; population- 28.1 million 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:Energy sector situation: Power crisis- Load shedding up to 16 hrs/day! Shortage of petroleum products (100% imported) Shortage of petroleum products (100% imported)- Import expenses >20% of country’s expenditure

(~40% of foreign currency reserves)( 40% of foreign currency reserves)

Huge state subsidy to compensate NOC’s losses6

By SectorBy Fuel TypeRenewable (0.7%)

7.1%

)om

ass

(87

ition

al B

io

7

Trad

i

Source: WECS, 2010

Biomass & bioenergy; bioenergy routes Biomass & bioenergy; bioenergy routes Share of bioenergy in global energy consumption Nepal: country background & energy situation Nepal: country background & energy situation Position of bioenergy in Periodic PlansPeriodic PlansRural Energy Policy & Energy/RE StrategiesRE Subsidy ArrangementRE Subsidy Arrangement

Major programmes in bioenergy sectorBi BSP+Biogas: BSP+ICS & other BETs: NICSP & BESPBi f l Bi f l PBiofuels: Biofuel Programme

Way forward8

Seventh Plan (1985-90): P ti f bi & ICS f ti f f tPromotion of biogas & ICS for conservation of forest

resources & for the benefit of rural people; Allocated budget to provide subsidy for biogasAllocated budget to provide subsidy for biogasDistribution of ICS free of charge

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Eighth Plan (1992-97):Suitable steps to develop local energy resourcesFormulation of an Energy Master Plan

Focus on promotion of biogas to control forest destructionInstallation or 30,000 biogas plants

Awareness on biomass energy technologies likeAwareness on biomass energy technologies like densification, gasification, carbonization & ICSDistribution of 250 000 ICS (100 000 in hills &Distribution of 250,000 ICS (100,000 in hills &

150,000 in Terai)10

Ni h Pl (1997 2002)Ninth Plan (1997-2002): Renewable Energy Subsidy Policy 2000

T t / li Targets/policy measures: Construction of 90,000 biogas plants (achievement

59 678; 66%)59,678; 66%)

Expand ICS to make rural HH environment smokeless & healthyInstallation of 250,000 ICS (achievement 51,100)C d ti f t i i & h ICSConduction of training & research on ICS

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T h Pl (2002 07)Tenth Plan (2002-07): Renewable/Alternative Energy in P1 project

Bi P Biogas Program: Construction of 200,000 (199,500 HH & 500 community)

biogas plantsbiogas plants R&D on small size biogas & on biogas for high hills

Installation of 250,000 ICSStudy & research on plant oils (biofuels)Feasibility study on other BETs such as briquetting,

cogeneration & gasification

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3 Y I i Pl (2007 10)3-Year Interim Plan (2007-10):Bioenergy Program: C t ti f 100 000 (99 950 HH & 50Construction of 100,000 (99,950 HH & 50

community/institutional) biogas plants Additional financial support for poor & disadvantagedAdditional financial support for poor & disadvantagedR&D on high hill biogas & for cost reduction

Installation of 300,000 ICS & other bioenergy technologiesR&D bi f lR&D on biofuelsFeasibility study & promotional activities on gasifiers,

briquettes biofuels etcbriquettes, biofuels etc.

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3 Y Pl (2010 13)3-Year Plan (2010-13):Bioenergy: C t ti f 90 000 HH 50 it & 75Construction of 90,000 HHs, 50 community, & 75

institutional biogas plants

Installation of 300,000 ICS & other bioenergytechnologies

Promote bio briquettes in 200,000 HHs of urban areas.

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W ki li i fWorking policies for Biogas

F l d Ch l B i Bi E Fuel wood, Charcoal, Briquette, Biomass Energy, Biomass Gasification

Improved Cook Stove Technology Improved Cook Stove Technology

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BiogasBiogas R&S on HH biogas technology to increase efficiency,

to reduce cost & to promote it in high hillsto 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

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Fuel wood Charcoal Briquette Biomass Energy &

Scientific management of charcoal production,

Fuel wood, Charcoal, Briquette, Biomass Energy & Biomass Gasification

gdistribution & 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 costA ti f b i tt bi f l bi Awareness creation on use of briquette, biofuel, biomass gasification etc.R d ti i f l d ti b d l i

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Reduction in fuel wood consumption by developing technologies like ICS & gasifiers

Improved Cook Stove Technology Awareness on smokeless & fuel wood efficient ICS

Improved Cook Stove Technology

Emphasis on R,D&D of household & institutional ICS suited to geographical & cultural needsICS t h l t f i l ICS technology transfer in rural areas

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National Energy Strategy (Draft - WECS, 2010)

Jatropha Plantation Guideline (Draft- MoFSC, 2009)Jatropha Plantation Guideline (Draft MoFSC, 2009)

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)

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National Energy Strategy (Draft WECS 2010) 1National Energy Strategy (Draft - WECS, 2010)- 1Biomass Gradually decrease the share of traditional energy in the

energy mix of the countryP t t h l i th t i ffi i f bi Promote technologies that improve efficiency of biomass

Exploit the potential of developing 1.9 million biogas l t t f 5 illi HHplants out of 5 million HHs

Promote emerging BETs such as briquettes, gasifiers, cogeneration & liquid biofuelscogeneration & liquid biofuels

Develop biomass energy through decentralized implementation arrangements; integrate in local

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implementation arrangements; integrate in local government’s planning

National Energy Strategy (Draft WECS 2010) 2National Energy Strategy (Draft - WECS, 2010)- 2Biomass Forestry sector policies & programs to address poor

people’s livelihoods & poverty reductionC it f t hi l f i l i l i Community forestry as a vehicle for social inclusion

Alternative livelihood strategies in responding to fuel d t dwood 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

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such as fuel wood

Subsidy for Biogas & Improved Cooking Stoves (ICS)y g p g ( )

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Biogas 1Biogas- 1GGC 2047 or its modified modelSize 2 to 8 m3Size 2 to 8 m3

Subsidy covers ~20-40% of the cost

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Biogas- 2gDistricts/Category Rs./Plant

1 Basic Subsidy20 Terai districts 9,00040 Hill Districts with road access 12,00015 Remote districts 16,000

2 Additional Subsidy based on Penetration & Plant Size40 Lo Penetration Districts 70040 Low Penetration Districts 700Small users (plants of size 2,4,6 m3) 700

3 Additional Subsidy for Poor Dalit Disadvantaged &3 Additional Subsidy for Poor, Dalit, Disadvantaged & Conflict Affected20 Terai districts 2,000

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,40 Hill Districts with road access 2,50015 Remote districts 3,500

Biogas- 3g

Districts/Category Rs./Plant4 Subsidy for Toilet Attached Biogas Plants*4 Subsidy for Toilet Attached Biogas Plants

20 Terai districts 3,50040 Hill Districts with road access 4,000,15 Remote districts 4,500

5 Subsidy for Institutional Biogas Plants**20 Terai districts 8,00040 Hill Districts with road access 12,00015 Remote districts 16,000

*If fund is available from relevant development partners

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**Using other than cattle dung as feedstock

Biogas- 4gDistricts/Category Rs./HH

6 Subsidy for Community Biogas Plants6 Subsidy for Community Biogas Plants20 Terai districts 6,00040 Hill Districts with road access 9,00015 Remote districts 12,000

7 Transportation Subsidy Rs./Plant or HH12 Remote* districts 2,000

3 Very remote** districts 4,000

* Bhojpur, Darchula, Jajarkot, Khotang, Sankhuwasabha, Bajhang, Bajura, Jumla, Kalikot, Manang, Mustang & Solukhumbhu

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** Dolpa, Humla & Mugu

Biogas- 5Biogas 5

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Improved Cooking StovesImproved Cooking Stoves No direct subsidy for mud ICS

M t lli ICS R 4 000 f th t h l & R 2 700 f Metallic ICS: Rs 4,000 for three pot hole & Rs 2,700 for two pot hole Up to Rs 2 000 household & up to 5 000 for institutional Up to Rs 2,000 household & up to 5,000 for institutional

gasifiers (but not more than 50% of total cost)

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Oth R bl EOther Renewable Energy

No direct subsidy but support in studies, research & development, trainings and pilot projects in the field of other renewable energy, e.g., biomass briquette, i tit ti l ifi bi f l tinstitutional gasifiers, biofuels etc.

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Biomass & bioenergy; bioenergy routes Biomass & bioenergy; bioenergy routes Share of bioenergy in global energy consumption Nepal: country background & energy situation Nepal: country background & energy situation Position of bioenergy in Periodic PlansPeriodic PlansEnergy/RE Policies & StrategiesRE Subsidy ArrangementRE Subsidy Arrangement

Major programmes in bioenergy sectorBi BSP+Biogas: BSP+ICS & other BETs: NICSP/BESPBi f l Bi f l PBiofuels: Biofuel Programme

Way forward30

1975/76 “Agriculture Year”- official promotion started9 5/ 6 g cu u e ea o c a p o o o s a ed GGC (1977), joint venture among ADB/N, DCS/UMN &

Fuel Corporation Nepalp 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 withGold Standard Biogas Project (GSP), partnership with

WWF (2006) Key achievements (from users’ perspective)Key achievements (from users perspective)Strong local network of service providers (81

companies, 2 national NGOs, & MFIs/Banks)

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p , , )263,779 HHs plus a few institutional & community

biogas plants

ICS ti (1980 91) th h C it F t ICS promotion (1980-91) through Community Forestry Development DivisionAEPC t d E S t A i t P AEPC-executed Energy Sector Assistance Programme began from with Danish support in 1999; National ICS Programme (NICSP) operational from 2000 in mid hillsProgramme (NICSP) operational from 2000 in mid hills

NICSP approaches to promote HH mud-brick ICS: Participatory Demand drivenParticipatoryAppropriate technologySkill t f t l l l l

Demand drivenSubsidy less W t t dSkill transfer at local level Women-targeted

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Expanded NICSP became Biomass Energy Support Expanded NICSP became Biomass Energy Support Programme (BESP) from 2007Geography: Mid Hills High Hills TeraiGeography: Mid Hills, High Hills, TeraiTechnology: IICS, MICS, Gafiers etc

K hi (f ’ i ) Key achievements (from users’ perspective): Strong local network of service providers (15

RRESC 250 LPO 32 i t f t )RRESCs, ~250 LPOs; 32 private manufacturers)7,700+ skilled stove technicians (Local

Promoters/Stove Masters)Promoters/Stove Masters)~500,000 HHs benefitted through ICS & MICS plus

IICS and household & institutional gasifiers

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IICS and household & institutional gasifiers

Biofuels Program

Introduced from FY 2008/09 thru AEPC Focus on Jatropha-based biodiesel

promotion Major activities: Jatropha nurseries,

l i i b ildi il jplantation, capacity building, pilot projects, & setting processing plantsP t hi ith NOC & th k l Partnership with NOC & other key players

Bioenergy policy/strategy an integral part of relevant national policy/strategy (energy, industrial, land use, agricultural forestry)agricultural, forestry)Sub-sectoral policy/strategy & targets

T h l i l di ifi i d i j Technological diversification, demonstration projects Carrying over the success experiences R&D - technology adoption, skill transfer & QA/AC CDM/carbon projects Capacity building, institutional development Public-Private-Cooperative partnership

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Public Private Cooperative partnership

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