Post on 21-May-2015
description
Tajikistan
Small hydro and rural development in Tajikistan —
Energy for development and poverty reduction
Zoran Morvaj
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Contents
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia2
1. Situation analysis and UNDP approach2. Area based piloting of RES driven Integrated
rural development (IRD)3. Scaling-Up of the RES driven IRD 4. Enabling Environment for the Scaling-Up 5. Impacts of Improved Access to Electricity on Poor
Households and on the Environment6. Conclusion
73% of population lives in rural areas → consuming only 8.58% of electricity!
53% of population lives below the poverty line (2007);
The PRS III adopted, but poverty causes still not identified;
1 million people considered to be particularly affected by lack of access to electricity;
Tajikistan`s key resource – hydro potential! “Power Island” -> energy security and future energy
exports are top national priorities: long term goal to finish HPP Rogun
Intermediate solution needed!Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP Approach – Background
Energy Poverty = Household’s inability to afford
and/or to access the basic energy services,
in the cases where desire to use these services exist.
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP Approach – Understanding poverty
Urban and rural poverty
Basic energy services in rural households: lighting, heating, cooking,
Lack of access to reliable and affordable electricity -
key poverty driver at rural communities!
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP Approach – Understanding poverty
Poverty - Energy – a household energy balance
Up to 3.5 m3 of fuel woodUp to 1000 kizyak pieces of dung
Up to 7000 kg of cotton-plant stemsUp to 10000kg of shrubs
Unprocessed water from rivers
Electricity (in many areas only 2 hours
per day and only for indoor ligting)
Cooking (year round)
Winter heating
Lighting
Drinking
Washing
Poor insulation resulting in
significant heat losses and
high humidity
Indoor pollution
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Poverty - Environment
7
Reliance on firewood – environmental degradation
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
8Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Poverty - Energy efficiency
9Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Poverty - Energy efficiency
ND & PRSpop. 7M (50% poverty rate)
M1 M2 M3 M13. . .
Ministries
Issues
Donors
D…l
D1 D2
Projects:
Effects?
Fragmentation!
Coordination and integration!!
Situation Analyses and UNDP Approach – Context
GoT
Region
District
Jamoat
Village
Mahala Mahala Mahala Mahala
Integration and coordination!
Strengthening institutional and regulatory framework for PRS implementation;
Strengthening local capacities to implement and operate specific projects;
City
(4)
(59)
(ap. 406)
13 ministries
Establish verticalcoordination and communicationmechanisms
(ap. ….)(ap.
(ap. ….)
Situation Analyses and UNDP Approach – Governance
Local resources for local development and poverty reduction.
1. Every village in Tajikistan is situated on at least one water flow -
Small scale hydro power plants (sHPP)
2. 280-330 sunny days with 3.5 to 5.3 kWh/m2/day on the year
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP Approach
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
Electricity powering local workshops – creation of income generation opportunities!
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
Varsob district - Roh village: ski resort and hotel
ENERGY
TOURISM
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
Key objectives
Poverty reduction by improving access to electricity based on local resources and through that improving quality of basic social services, provision of clean water and creation of income generating opportunities – i.e. supporting integrated rural development (IRD);
Provide impuls for economic development in the sectors related to RES (and EE), by devising support mechanisms for implementing rural RES (and EE) schemes;Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
Key Pillars of UNDP response:
Establishing proper policy framework that will promote community based sHPP and EE projects:
Intermediate Strategy for RES driven Integrated Rural Development and related regulatory framework
Energy Efficiency Master Plan (EEMP) National Programme for RES driven Integrated Rural
Development - National Scaling-Up Standardization guidelines for sHPP construction (30 –
500 kW); Developing local manufacturing, engineering, operation
and maintenance capabilities related to RES and EE: District Development Planning
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Situation Analyses and UNDP ApproachLocal resources for local development and poverty reduction.
How we are doing that:
Area based piloting of RES driven Integrated rural development (IRD)
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
20 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
AIMS:– To develop and implement pilot projects for
integrated rural development driven by provision of electricity from mini hydro (possible other renewable) as the driver, and then to integrate clean water, irrigation, food, employment, education and health issues.
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Key Issues:
to made the approach sustainable by involving local communities as operators of facilities, collecting payments from communities during winters, and selling electricity to the grid during summers where feasible;
to support capacity strengthening at relevant institution (ministries, district, jamoat, local communities) for implementation of PRS;
Situation Analyses and Approach
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Vahdat district/city
• 10 jamoats, 178 villages; • population 268,700:
83,762 are employed, 31,312 are unemployed, 17,601 are pensioners,
• 143 schools;• 83 hospitals;
2. Area based piloting of RES driven Integrated rural development (IRD)
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
• Jamoat Bozorboy Burunov • 15,000 inhabitants, 17 villages and 449 dehkan
farms;
The main activities are land cultivation and cattle breeding;
List of Jamoat administration (salaries 467 – 92 TJS/month):
Head of Jamoat - Deputy of the head of jamoat Secretary, Chief accountant, Accountant, Cashier Accountant on statistics, Land surveyor Specialist on regulating national traditions Secretary (assistant), The head of military department Deputy of the head of military department, Operator Maid (cleaner), Guard Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
The jamoat’s annual budget: 314.680 TJS,
The social units in the jamoat: 3 ambulance stations, 8 medical points,
2 kindergartens, 1 polyclinic. 1 school and 1 hospital (on Vakhdat
district budget)
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
“On the Introduction of Changes and Amendments to the Law on Energy»Article 1. The following changes have to be Introduced to the law on “Law on Energy” dated November 29, 2000 Reg. # 12, Article 633):Add the following changes to the Article 15 part two and three:“In order to promote and support the development of small energy, to introduce and use alternative sources of energy, ………………..”
Date: July 30, 2007Reg. #310
Pilot project 1:Construction of sHPP for community use during winters and for
selling electricity to the grid (Barki Tajik) during summers
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project s:
Rehablitation of hospital – Gulobad village
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project 2:
Rehablitation of hospital – Gulobad village
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project 3: Rehabilitation of School
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project 4: Water pump station repair
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project 5: create income generation opportunities construction of a Mini diary 500
l/day
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
Pilot project 6: create income generation opportunities construction of a greenhouse
1. Necessary capacity building initiated and ongoing:
• An Inter-ministerial Task Force formed and active;• DDP for vahdat district developed and publicly
presented,• Jamoat authorities actively patricide in all pilot
projects• Local communities contribute for pilot projects with
labor..
Results Achieved :
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
2. Area based piloting of RES driven Integrated rural development (IRD)
~
2. Standardized procedures for community based sHPP:• Clear procedures and
regulation;
• Methodology for setting tariffs
• Conditions for connection to Barki Tajik network
• Technical standardization
• Financial support
• Vocational training
4. EE master plan• Environmental
sustainability in PA
3. Policy and regulatory framework for RES utilization developed
MEDTMoEISCI
Dep. OfStatistics
MoEd, MoAg&Env, MoHJamoat Resource Center, …
IPP
5. Coordination mechanisms for PRS stakeholders in place
2. Area based piloting of RES driven Integrated rural development (IRD)
Results Achieved :
35
Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success
Potential to develop local industry and supply chain- standardization
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
3. Scaling-Up of the RES driven IRD
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Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success
Potential to develop local industry and supply chain- standardization
+ it is here already Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
3. Scaling-Up of the RES driven IRD
37
mHPP enables distributed electricity generation at the point of demand
RES generated electricty could replace some of the firewood used for erhatign and cooking The average rural household -40 kilos of collected fuel-wood
per day – women and children Up to 6 hours of physical work daily
Significant financial returns to local economy through incentives and utilisation of locally available goods and services
Creation of income opportunities Overall improvement of livelihoods
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
3. Scaling-Up of the RES driven IRD
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Energy provided per household [kW] 1 2 3
Total installed power capacity needed [MW] 100 200 300
Total number of sHPPs needed 1.000 2.000 3.000
Total investment required [US$] 100.000.000 200.000.000 300.000.000
Financial return to the local economy [US$] 50.000.000 100.000.000 150.000.000
Total jobs created 40.000 80.000 120.000 Annual return to the local economy in form of incentives for grid connected RES [US$] 1.750.000 3.500.000 5.250.000
Annual decrease of fuelwood consumption [m3] n/a 500.000 2.500.000
Emissions saved [tCO2] n/a 900.000 4.500.000
Support from the Trust Fund required [US$] 101.750.000 203.500.000 305.250.000
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
3. Scaling-Up of the RES driven IRD
3. Scaling-Up of the RES driven IRD Energy Efficiency
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The selected EE measures should include the following: improving building insulation by using locally
available resources (straw and cane) and technologies (lathing and furring);
enhancing single glazed windows with a double glazing
improving cooking/heating stoves
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Costs [US$/m2] Min Max Wall insulation (incl. roof) 3 6 Floor insulation (straw) 2 4 Floor insulation (straw+ foam concrete) 10 14 Windows double glazing [average] 50
Surface per house [m2] Costs per house [US$] Min Max
Walls (incl. roof) 50 150 300 Floor 25 50 100 Windows 4,5 225
Total costs 425 625
Surface per social object [m2] Costs per social object [US$] Min Max
Walls (incl. roof) 400 1200 2400 Floor 200 2000 2800 Windows 67,5 3375
Total costs 6575 8575
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
3. Scaling-Up of the RES driven IRD Energy Efficiency
4. Enabling eenvironment for the Scaling-Up
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Technology Transfer Know how for O&M Manufacturing capacity Engineering services Training and education Public awareness and information
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
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National Trust Fund for RES and EE
To provide organizational and financial support for development of RES and EE in Tajikistan through:
Provision of institutional support for electricity producers from RES, particularly to the local communities , i.e. managing the scheme of guaranteed RES electricity buy-back
Incentives for electricity buy-back for grid connected mHPPs
Financial aid for preparation of RES/EE project (up to 40%)
Financial aid for thermal and for off-grid RES installations (up to 40%; up to 100%)
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
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Legal establishment of the National Trust Fund for RES and EE Government Regulation on establishment of “National Trust Fund for
RES and EE” (drafted) Establishment pursuant to the implementation of articles 14-16 of the
Law “On the use of RES” and also on the basis of article 132 of the Civil Code
Main characteristics of the Fund: Independent , non-commercial organization created by the
Government Funded by the Government wholly, or at least partially Established for coordination and management of financial means
targeted for development and implementation of RES and EE programs and projects
Projects of local communities for development of small scale energy supply systems have the priority in awarding financing from the Fund
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
Sources of financing – selected options
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Main sources secured by the Government 0.7% of the annual lump sum cost of electricity supplied to the
consumers through distribution grids as well of oil products imported by economic agents
100% of the means collected from the environmental (ecology) tax paid by all vehicle drivers
Other sources: means from the republic and local budgets, non budgeted means
designated to the Fund at the order of the legislation of RT; International and national (financial) institutions’ credits, grants and
donations Financial and material resources, allocated in compliance with
multilateral and bilateral cooperation programs of the Fund; Incomes from the own activities, i.e. incomes from the interest rates
on preferential credits Other sources not forbidden by effective legislations
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
Awarding financial support from the Fund
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Co-financing of projects/programs: Allocated to physical and legal entities on the basis of open
competition and inquiry Priorities to be given to community based projects and realization of
programs envisaged in strategic documents → systematic approach Conditions for obtaining financial assistance from the Fund shall be
determined by the Rules of the Fund: up to 50% of total costs for construction of community based RES power
plants with condition that that 50% of power plant value is supplied by local sources in equipment and works → resource based & development driven approach
up to 100% of total costs for national public promotional campaigns,
educational and training programs on RES and EE → human resources development
up to 40% of total costs for preparing project documentation up to 40% of total costs for installation of RES systems for production of heat
and implementation of EE improvement projects up to 100% of total costs for RES and EE projects in remote rural regions and
in the public sectorThird Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
Awarding financial support from the Fund (
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National Fund for RES and EE
Administrative CouncilExecutive Committee
EE projects – investment subsidies
EE Foundation RES Foundation
RES projects – investment
subsidies
System Operator
Incentive price
RES power producer
Sources of financing
Electricity delivered to
the grid
Consumers
Sells electricity at price determined by tariff system
Pays for electricity taken over from RES power producer at average
el.production price
Grid connected RES power plant
Consumers
Electricity delivered to
the local consumers
Pays electricity at
price determined
by tariff system
Off- grid RES power plant
Scheme for guaranteed buy-back of RES electricity
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
Key pillars of the Fund’s operational strategy
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The Fund is needed to kick-start RES and EE activities on larger scale Demonstrates the Government commitment Attracts international financial institutions!
How to make the Fund fully operational? Systematic approach – operation based on national
strategies and scaling-up plan for RES based IRD Resource-based and development driven – support
primarily mHPP and demonstrate inclusion of domestic materials, products and work force
Human resources development – support educational and training programs to build national capacities for implementation of RES and EE projects
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
4. Enabling eenvironment for the Scaling-Up
5. Impacts of Improved Access to Electricity on Poor Households and on the Environment
48 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
6. Conclusions
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Scaling-up impacts: Decreased indoor pollution 6 hours of saved time (women and children) ->
possibility to acquire jobs and to study Thousands of jobs and money making
opportunities created Millions of US$ to go back to local communities Tons CO2 preserved in carbon sinks Biodiversity preservation (decreased
deforestation, soil erosion, desertification, salinization)
Overall improvement of the social services and quality of life
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
6. Conclusions
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Addressing poverty by implementing sHPPs accelerates progress to MDGs achievement
Pilot projects proved successful => the way forward is to SCALE UP
Scaling up requires functional Trust Fund and Technology Transfer
The only available short-term solution for poverty reduction is to implement integrated rural development projects based on RES and EE.
Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia
Tajikistan
Thank you for your attention!
zoran.morvaj@undp.org