commercial development opportunities for small and medium ... · through exploiting the market and...
TRANSCRIPT
Dagmar Zwebe
Sector Leader Renewable Energy Vietnam
June 2013
Commercial Development Opportunities for
Small and Medium Scale Biogas in Vietnam
Content of this presentation
• Introduction to SNV
• History of Biogas in Vietnam
• SNV Domestic Biogas Developments in short
• SNV’s Medium Scale Biogas Developments
Bottlenecks for commercial scale up
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• Netherlands based non-profit, international development organisation, with >45 years of on the ground experience.
• Local presence: 800 professionals in 36 developing countries in Africa, Asia and Latin America.
• Capacity development services to local public and private organisations increasing access to basic services, income and employment.
Connection “leveraging critical mass”
Scalability “seeking a systems change”
Effectiveness “empowering local actors”
Market-Based Solutions to Eliminate Poverty
About SNV
3
SNV Presence Worldwide
4
What we do
3 sectors
Agriculture
Renewable Energy & REDD+
Water, Sanitation and Hygiene
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3 roles
Advisory services
Knowledge networking
Evidence Based Advocacy
4 key success factors
Inclusive development
Systemic change
Local ownership
Contextualised solutions
SNV and Renewable Energy
We currently work on:
• Domestic biogas: > 500,000 households reached (Dec, 2012)
• Carbon Finance: credits earned in Asia on biogas programmes Nepal,
Vietnam, Cambodia. Programmes in Pakistan CDM-PoA registered.
• Biomass fuelled improved cook stoves: founding partner of the
Global Alliance for clean cook stoves (targeting 350,000 ICS by 2017
in Nepal and Lao and another 200,000 ICS in Africa)
• Solar PV lighting and communication: several initiatives running
• Improved Watermills: benefitting > 300,000 households
• Bio-fuels: benefitting 56 000 households
6
Content of this presentation
• Introduction to SNV
• History of Biogas in Vietnam
• SNV Domestic Biogas Developments in short
• SNV’s Medium Scale Biogas Developments
Bottlenecks for commercial scale up
7
Biogas Developments in Vietnam
• First developments started mid ’60
• …and were put on hold until 1975
• Between 1976 and the late ‘80 several donor funded projects
stimulated local design development with support from
international TA
• By ‘90 about 2000 installations were constructed, all small
scale
• Development continued and in ‘03 SNV -in cooperation with the
Ministry of Agriculture and Development (MARD)- initiated a
first large scale biogas program in Vietnam
• In the last decade awareness increased and stimulated interest
and investments in larger scale technology
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Animal Husbandry in Vietnam
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See also “Biomass Business Opportunities Viet Nam” Report Published in 2012 by Agency NL, written by SNV Vietnam
http://www.snvworld.org/en/vietnam/publications/biomass-business-opportunities-in-vietnam
Animal Farming in Vietnam
• The livestock sector
is worth approximately USD 3 billion per annum
It accounts for 6-7% of GDP of Vietnam.
• It contributed 22% of agricultural production during 2001-
2005, increasing to about 44% in 2008.
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Animal Farming in Vietnam
• Farming household
The number of farming households is estimated at >6,3 million
Biogas has reached less than 3% of the farming households
• A farm is 'a relatively larger production scale‘
defined as 100 pigs, or 50 cows/ buffaloes, or 2,000 chickens/birds
Estimations from 2006 are >17,500, recent indications by MARD
are that his number has grown to >26,000 by 2012
Growth of medium scale farms is estimated at >10% per year
Anaerobic digestion systems have reached less than 0.5% of the
medium and large scale farms
• The total manure production in Vietnam is estimated around 95
million tonne per year (GSO, 2010).
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Content of this presentation
• Introduction to SNV
• History of Biogas in Vietnam
• SNV Domestic Biogas Developments in short
• SNV’s Medium Scale Biogas Developments
Bottlenecks for commercial scale up
12
To develop a commercially viable domestic biogas sector.
To improve livelihood and life quality of rural farmer in Vietnam through exploiting the market and non-market benefits of
domestic biogas plants.
Mason Training – Bac Ninh – May 2011
A cooperation between
• The Ministry of Agriculture and Rural Development (MARD)
• SNV Netherlands Development Organisation
• DGIS – Dutch Ministry of Foreign affairs
BP for the Animal Husbandry Sector
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Most Popular Domestic Biogas Models
Most Popular Models KT1/KT2 (fixed dome)
Vacvina (square shaped) Composite model
HDPE / covered lagoon Fixed Dome Da Nang
EQ2 Can Tho University Plastic Bag
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Sector Development
Develop private sector
Quality Management
(Financial)
Incentives
Promotion, Marketing and
Sales
R&D
Extension
Capactiy Building and
Training
Access to (Micro) Finance
SNV’s approach for market development
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Training
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Finished plants
Most common appliances
• Cookstoves (household and pig feed cooking)
• Lamps
• Piglet heating
• Egg Hatching
• Live breading
• Boilers (for showering)
• Rice cooking
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-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2007 2008 2009 2010 2011 2012 2013*
BP QSEAP LIFSAP Not covered
Domestic Biogas Developments
• ‘Free’ market activity is now created
• 30% of the total market is estimated to be commercial
• 50% of the number of digesters that are constructed inside
the BP program supported by SNV, is also built commercially.
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130,000 biogas plants installed in 53 provinces
>600,000 beneficiaries
>1000 Biogas Enterprises developed
>5 tCO2 eq. reduced per plant per year
International recognition through
– Energy Globe Award 2006 – Ashden Award 2010
– World Energy Award 2012
BP Accomplishments
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Content of this presentation
• Introduction to SNV
• History of Biogas in Vietnam
• SNV Domestic Biogas Developments in short
• SNV’s Medium Scale Biogas Developments
Bottlenecks for commercial scale up
21
• Currently there are >26,000 medium to large farms in Vietnam
• The Government of Vietnam stimulates the growth from small
scale (household farming) to medium and large scale farming
• This results in a growth of medium scale farms of >10% p.a.
• Only less than 0.5% is currently served by anaerobic digesters
• Service capability is low
• Other projects and programs (only a few) focussed on foreign
technologies with high investments, limiting the access for the
average farmer
• No strategy for scale up or national wide coverage has been
developed
Background & rationale
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“Market introduction of the medium-scale
plug-flow biogas digester in Vietnam”
• Create demand (through awareness raising)
• Strengthen the supply chain through
capacity building activities and introducing
affordable technologies
• With a short term goal of designing and constructing
10 low-cost, medium-scale biogas digesters for
farms with 300-1,500 pigs
• Develop the scale-up strategy for market development
Partners:
SNV’s approach: Sector Development
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Medium Scale Biogas Technology
• Working principle same as small scale digester = opportunities
to utilise an already developed skills base
• Constructed using locally sourced materials = sustainable,
reduced dependence on developing supply chain
• Modular = adaptable
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Medium Scale Biogas Technology (cont’d)
300m3 digester at Mr Nghia’s farm in Nam Dinh close to
completion April 2012
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Medium Scale Biogas Technology (cont’d)
500m3 digester at Mr Chau’s farm in Quang Ninh close to
completion October 2012
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Case Study – Mr. Quang’s Farm, Bac Ninh
• 800 fattening pigs
• 200m3 digester
• Open lagoon treatment, overflowing into public irrigation canal
• Complaints about smell and downstream condition of water
• $11,800 (9,500€) total construction cost
50% materials, 30% labour, 10% equipment, 10% VAT
• Farm power requirements – heaters, ventilation, pumping
8,000 kWh/mth @ $0.06/kWh = $475/mth
• Biogas production (calculated)
100m3 biogas/day – equivalent to 5,000 kWh/mth electricity (60%)
300 tonne CO2e avoided per year
• Actual biogas use: distributed and sold to neighbour
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Case Study (cont’d)
Open lagoon bubbling methane and over-flowing into irrigation canal
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Case Study (cont’d)
February 2012
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Case Study (cont’d)
April 2012
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Case Study (cont’d)
July 2012
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SNV’s aimed next steps for Sector Development
Short term
• A Phase II – 18 month to 2 year
5 provinces, 15 digesters constructed
Innovation on basic design
And/or Longer term
• “Low Carbon Farms” – 4 to 5 year programme
30 provinces, 200 digesters constructed
Technical innovation – adapted models, designs and materials
Inclusion post treatment and linkages with agricultural use of
bioslurry
High level technical training and mentoring – 10 engineering Co’s
Construction, O&M training
Business training and mentoring
Awareness, advocacy, policy, regulation
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Content of this presentation
• Introduction to SNV
• History of Biogas in Vietnam
• SNV Domestic Biogas Developments in short
• SNV’s Medium Scale Biogas Developments
Bottlenecks for commercial scale up
33
Challenges in commercial scale-up of medium scale
• Outbreaks of diseases (like “Blue Ear” epidemics)
• Lack of knowledge on post treatment or bioslurry use
• Lack of knowledge and real live experience on co-digestion
• Limited access to “affordable” biogas appliances / generators
Flaring is common instead of utilizing the biogas (which is also the
case when biogas is produced from industrial waste water/streams)
• Limited access to financial resources to invest
Medium segment is industrial scale but still family owned
Several donors are now stepping into this segment in Vietnam
among which ADB, UNEP and KfW
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Challenges in commercial scale-up of medium scale
• >97% of Vietnam has access to the electricity grid
frequent power cuts
• The consumer electricity tariff is regulated by the Electric
Regulatory Authority of Vietnam (ERAV).
• EVN, in principle, cannot purchase electricity from independent
power plants at rates higher than the consumer rates.
• Current average consumer rate: about 6 US cents/kWh.
• In comparison with other ASEAN countries (in 2010):
Malaysia: 7.6 US$ cents/kWh
Indonesia: 6.77 US$ cents/kWh
Thailand: 8.5 US$ cents/kWh
Philippines: 17.52 US$ cents/kWh
Cambodia : 17.68 US$ cents/kWh
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Source: Giles Cooper, Duane Morris, June 2012