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Transcript of Promoting Renewable Energy Technologies through Public Private Partnership_NRDhakal_Presentation
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
EP
CInternational Workshop on
Financing Village Level Energy for
Development in Asia Pacific
April 09-11, 2008: Manila, Philippines
Session 5: Friday, April 11 (9:00 – 10:30)
“Public and Private Partnerships”Session Objective:
To define, through real examples, the benefits,
challenges, and opportunities of public and private
partnership arrangements to deliver energy access,
especially at the rural and peri-urban level
The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
EP
C
Promoting Renewable Energy
Technologies through Public
Private Partnership
Mr. Nawa Raj Dhakal
Training Officer, AEPC, Nepal
E-mail: [email protected]/
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
EP
C
Presentation outline
• Background: Nepal’s energy consumption pattern• AEPC: Objectives & Scope• Major AEPC programmes & Institutional set up • Key approaches & strategies• Programme implementation modality• Physical progress & important achievements• Benefits & Challenges• Conclusion
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
EP
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Background-1
Nepal • Location: Southern slopes of the Himalayas• Area: 147,181 sq.km.
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Geographical regions: Terai (plain land), Hills and High Hills (Ranging 200m to 8,848m)
• Population: 26.43 million; No. of HHs: 4,253,220• Rural/urban population distribution: 84/16• Per capita income: USD 260
Background-2
• Energy consumption 2005/06: 8478 TOE
• Major contribution from Traditional sources
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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Nepal’s Energy Consumption Pattern 2005/06
By Fuel Type
By Sector
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Established in 1996 under the MoEST by AEPDB formation order
• National executing agency of programmes and projects in renewable energy sector
Alternative Energy Promotion Centre
• Overall Objective:
To popularise and promote the use of alternative/
renewable energy technology, to raise the living
standard of the rural people, to protect the
environment, and to develop the commercially
viable alternative energy industries in the country
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
EP
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• Micro/mini hydro & Improved Water Mills• Solar energy (PV and thermal)• Biogas• Improved cooking stoves• Wind energy • Geothermal
Scope of AEPC
• Other RETs (Bio-briquette, Gasifiers, Biofuel etc.)
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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SN Programmes Major Support Areas Donors
1. Energy Sector AssistanceProgramme
Micro/mini hydro, solar energy, biomass energy, institutional support
Danida,Norway
2. Rural Energy DevelopmentProgramme
Micro/mini hydro, community mobilization, environment & sanitation
UNDP, World Bank
3. Renewable Energy Project
Community/institutionalsolar energy systems
EC
4. Biogas Support Programme
Biogas DGIS-SNV, KfW
5. Improved Water Mill Support Programme
Improved water mills DGIS-SNV
Major Programmes under AEPC
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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MoESTMoF NPC
AEPC
Program/Projects
Program Steering Committees (GoN, Pvt. sector, donors,
other partners)
Donors
Stakeholders:
Coordination,… Networking,
Regional/Local outreach:
Promotion, Capacity Build., Tech. Support etc.
Users/Community
Institutional Set up for Service Delivery
Private Sector:
Manufact…, supply, instal…, ASS
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Sector Programme Support with a long-term perspective
• Public Private Partnership with focus on community/users participation
• Demand Driven Services
Key Approaches and Strategies
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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Programme Implementation Modality
PublicPrivate
PartnershipDemand side
Public sector
Supply side
Private sector
Awareness & capacity building Technical & financial assistanceCoordination & networkingQuality assurance, monitoring & evaluation
Manufacturing & supply
Sales & installation
After sales services, repair & maintenance Int. Quality control &
monitoring
Subsidy
Users/ Beneficiary
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• VDCs, DDCs, GOs, (I)NGOs, CBOs, cooperatives, financial institutions and user groups/networks
• Local outreach (RRESC, LPO, DEES/U, SO & SC)• Representation in AEPDB, programme steering
committees• Relevant stakeholders (coordination & collaboration)
– MoU with Agriculture Development Bank Limited, National Cooperative Federation Nepal, Poverty Alleviation Fund,Association of District Development Committees Nepal, National Association of VDCs Nepal, Centre for Technical Education and Vocational Training, World Wildlife Fund, Practical Action Nepal, Winrock International Nepal, and others.
Public Sector Partners
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Standards, guidelines, manuals and quality assurance
• Company qualification, grading
• Tax exemption, Subsidy and Credit mobilization
– Subsidy covers only 25-40% of the total cost; and rest is
users’/community contribution- kind or cash/credit
– Biogas credit fund in AEPC
• Technical supports through local outreach– Awareness/ information dissemination; Survey, design; Training,
orientation, demonstration; Channeling subsidy and mobilizing
credit; Ensuring quality, monitoring and evaluation
Focus on the Technical Supports
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Qualified companies/firms working in RET sector– 65 Biogas companies- NBPA;
– 46 Micro/mini hydro companies & firms- NMHDA;
– 38 Solar PV companies- SEMAN;
– >20 Solar thermal companies- ASTED
– >8 IWM manufacturing cum installation companies
– Metallic stove manufacturing companies
• Private sector represented in AEPDB, programme steering committees, and task force
• Pvt. Companies deliver services at user’s end via their branch/dealers/agents
Major Private Sector Partners
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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Physical Progress on RET in Nepal
SN Alternative Energy
Technologies
Unit Progress Number of HHs
benefited
Access to Electricity 6 % Population
1. Biogas Plants Number 184,000 184,000
2. Micro hydropower kW 10,347 103,470
3. Solar Home System Number 95,000 95,000
4. Solar Tuki Number 60,000 60,000
5. Solar Cooker/Dryer Number 2,500 2,500
6. Improved Cook Stoves Number 250,000 250,000
7. Improved Water Mill Number 3,552 106,560
Total 801,530
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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1. Rural Energy Policy 2006, RE Subsidy Arrangement & Delivery Mechanism, 2006
2. Established Rural Energy Fund (Basket fund) & Renewable Energy Test Station
3. Vibrant RET Sector with Quality assurance4. Enhanced capacity of Pvt. companies, NGOs &
local institutions in RET sector5. Donors supporting RET sector through AEPC 6. Revenue generation through CDM7. Recognitions and awards for AEPC progs.
Important Achievements
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Concerted/collaborative efforts & shared ownership
• RET services locally available at affordable cost
• Linking RET development/adoption with socio-economic development
• Opportunity for employment generation and povertyreduction
• Enhanced institutional confidence
• Efficient use of traditional biomass fuels
Major Benefits
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• Subsidy driven demand (?)
• Credit mobilization not yet at the expected level
• Business risk and shortage of working capital
• Geographical coverage (remote)
• Social coverage (pro-poor)
• Retention of skilled human resource
• Donor harmonization
• Synergy and consistency
Main Challenges
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• PPP approach successful in providing RE services for rural areas
• RE promotion generating ample employment opportunities
• RE services contributing in poverty reduction and in improving the quality of life
• RE sector moving towards commercialization
Conclusion
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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Thank you for your
kind attention!
Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply to Rural AreasA
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• AEPC- Alternative Energy Promotion Centre• AEPDB- Alternative Energy Promotion Development Board• ASS- After Sales Services• ASTED- Association of Solar Thermal Energy Developers• DDC- District Development Committee• DEES/U- District Energy and Environment Section/ Unit• LPO- Local Partner Organization • MoEST- Ministry of Environment, Science and Technology• MoF- Ministry of Finance• NBPA- Nepal Biogas Promotion Association• NMHDA- Nepal Micro Hydropower Development Association• NPC- National Planning Commission• RRESC- Regional Renewable Energy Service Centre• SEMAN- Solar Electric Manufacturers Association Nepal• SO- Support Organization• VDC- Village Development Committee
Abbreviations