plans and policies for re development in nepal · making renewable energy mainstream supply to...

Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to NepalA

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Plans and Policies for RE Development in Nepal

Dr. J N ShresthaProf. and Director, CES/IOE/TU

Dr. Govind Raj PokharelExecutive Director


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Country Background• Located between India (South, East& West) and

China (North)• Area – 147,181 sq km• Population - 26 million• 3 Ecological Regions: Mountain, Hills and Terai• The country of Himalayas: Mt. Everest, 10

peaks>8000m• Per Capita Income- $276• PPP$ 1470

Nepal Energy Supply Demand Balance 2005/06 (FY 2062/063) Estimated in 000 TOE

Energy Supply (Total 8904 TOE)

Traditional

7721

(86.71%)

Renewables

50

(0.56%)

Commercl

1133

(12.72%)

Fuelwood

6897

77.45%

AgricultureRes.

328

3.69%

Animal Dung

496

5.57%

Coal

241

2.70%

Electricity

168

1.88%

Petroleum Products

724

8.13%

MHP

1.13

0.013%

Solar

0.18

0.002%

Biogas

48.67

0.545%

(Economic Survey, MOF, July 2006) (pp149)

1 TOE = 42.6217 GJ

Nepal Energy Supply Demand Balance 2005/06 (FY 2062/063) Estimated in 000TOE

Energy Consumption (8904 TOE)

Residential

7951

89.3%

Commercl

134

1.5%

Industrial

400

4.5%

Transport

330

3.7%

Agriculture

71

0.8%

Others

18

0.2%

Source: Economic Survey, MOF, July 2006 (pp 149)


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RET Status (as of Dec 2007)S.N Technology Status

1 ICS (Nos. & HH) 350,000 +

2 MHP 10MW (100,000HH+)

3 SHS 100,000 HH+

4 Biogas 170,000+ HH

5 IWM 3,000+

Grid based Capacity ~620 MW largely Hydro


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Trend of RET Utilization in Nepal (in TOE)

0 0 1 1 1 1 2 2 3 4 4 5 6 6 811

15

2125

2934

394345

50

0

10

20

30

40

50

6019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

06

YearSource: WECS, Energy Synopsis Report, June 2006


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Natural Energy Resource Base of Nepal

• About 6,000 rivers, with h a total length of about 45,000 km with an annual discharge of 200 billion cubic meters of water are available in the country

• The commercial potential of hydro-power in Nepal are said to be about 83,000 MW and 42,000 MW respectively.

• intensity of solar insolation ranging from 3.9 to 5.2 kWh/m2/day. (National average is about 4.7 kWh/m2/day.)


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S.N Technology Tentative target

1 ICS 500,000 nos.2 MHP 20 MW (150,000HH)

3 SHS 450,000 nos. (HH)

4 Biogas 135,000 (HH)

5 IWM 4,000 Nos.

Target for Next five years

Starting from 2008


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Working Modality of RET Sector

QC & M

AEPC(Rural Energy

Fund)

Consumer

Private Sector

GOs/NGOs/

AcademicR & D

Government

Donor

Policy Support

Training/promotion

Subsidy/Credit


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Approach• Demand driven programme also subsidy• Involvement of Community, Local Bodies

(DDCs/VDCs) and NGOs-promotion and quality control

• Private sector responsible for manufacturing, supply, installation and after sale services of the RETs system including marketing of the system

• Technical support in terms of training, information, guidelines and quality assurance

• Financial support in terms of subsidy and tax exemption and Credit thru MFIs/Local Banks


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Major RET promotion Programmes

• DANIDA and NORWAY Supported Energy Sector Assistance Programme ( ~54 Mil Euro) upto 2011

• WB and UNDP Supported Rural Energy Development Programme (~ 10 Million $) upto 2010

• Germant/KfW and DGIS/SNV supported Improved Water Mill and Biogas Programme upto 2009

• Renewable Energy Program supported by EU ~ 15 Million Euro

• Biogas Credit Program supported by KfW 2.5 Million Euro


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Other Initiatives on RET

• Adaptive research and policy promotion activities on bio-ethanol and bio-diesel

• Wind/Solar Mapping (SWERA)and promotion of mini-WTG

• Energy Efficiency initiatives• Institutional development/decentralization• Centre of Excellency for MHP


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Hydro Power Categorization in Nepal

S.N. Category Capacity

1 Pico Hydro < 5 kW

2 Micro Hydro 5kW to 100 kW

3 Mini Hydro >100kW to 1 MW

4 Small Hydro >1 MW to 10 MW

5 Large Hydro >10 MW


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Legal Provisions-Hydropower DevelopmentHydropower Development Policy 1992Electricity Acts 1992, Water Resources Act 1992Water Resources Regulation 1993Electricity Regulation 1993Hydropower Development Policy 2001Water Resources Strategy 2002Renewable Energy Subsidy 2006,Rural Energy Policy 2006Custom duty, Tax and VAT Exemption


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No license up to 1000 kWNo income Tax up to 1000 kWNo income tax for 15 years (Generation)No income tax for 10 years (transmission/distribution)

Hydropower Policy 1992/ Electricity Act 1992


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Highlights of Rural Energy Policy 2006

Participation of local bodies (DDCs/VDCs) ismandatoryCreation of Central, District and Village level Rural Energy Fund for subsidy mobilization

• Encourage social mobilisation for dissemination and development of rural energy

• Focus on energy poverty linkages• Promote private sector for the supply of RETs


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Present Approaches of Rural Electrification

• Conventional grid line extension• Community rural electrification (20/80

contributions)• Mini/micro-hydropower, Solar Home

System, Pico Hydro etc (on government subsidy programme)


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Highlights of RE Subsidy Policy 2006• Social Equity

– Targeted to low income households– Payment mechanism transparent– NRs 6,000 to 10,000 per HH depending upon

geographical areas and social status– Transportation Subsidy maximum of NRs

3,000/HH• Cost Effectiveness

– Market expansion– Least cost solution


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Interim Plan (2007-2010)• Biogas-100,000 plants in 70 districts• IWM- 4,000 units in 40 districts• Micro hydro- 11.5 MW in 54 districts• 90,000 SHSs in 72 districts • Small Solar Home Systems- 140,000 units• Improved Cook stoves - 300,000• 50 solar water pumping systems• 1,500 solar cookers and dryers• 810 institutional PV systems (ICT, School etc)


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Issues/ Barriers

• Effective and efficient credit facilities• Low purchasing capacity of population to

afford the technology without subsidy• Lack of human resources in the

renewable energy sector• Awareness in RETs


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Interaction Program on RET for MPs


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Photographs of SARI Workshops


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2001


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Building Integrated PV system


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Labs at CES


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MSREE Student Batch of 2001


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MSREE Course• Course Started from 2001• Total no. of students enrolled: 80• No. of students completing the course: 43

(42 M. Sc. Theses, most of them based on experiments)

• Fifth and Sixth batches are with IOE now


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CES Publications


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Third International Conference on Renewable Energy Technology for Rural Development


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FIRST SOLAR PV VILLAGE IN NEPAL

Inaugurated by the then Prime Minister of Nepal on 14 May 1994Village : Pulimurang, Tanauhu

Date: January 1994


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Suitability of RETs by region


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Country Average = 4.7 kWh/m2/day


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SOLAR ELECTRICITY APPLICATION IN NEPAL

FIRST SOLAR PV VILLAGE IN NEPALVillage : Pulimurang, Tanauhu

Date of installation: January 1994Inaugurated by the then Prime Minister of Nepal on 14 May 1994


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Energy Resources Strategy Formulation

• (2005-2030)• WECS/GON• CES/IOE/TU• CMS


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Happy users of RETs


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THANK YOU FOR YOUR KIND ATTENTION

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