Promoting RETs Thru PPP_NRDhakal-Presentation

8/14/2019 Promoting RETs Thru PPP_NRDhakal-Presentation

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Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply to Rural Areas

EPC

International Workshop on

Financing Village Level Energy forDevelopment in Asia Pacific

April 09-11, 2008: Manila, Philippines

Session 5: Friday, April 11 (9:00 10:30)

Public and Private PartnershipsSession Objective:

To define, through real examples, the benefits,

challenges, and opportunities of public and privatepartnership 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 DevelopmentBank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper andaccepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.


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Promoting Renewable EnergyTechnologies through Public

Private Partnership

Mr. Nawa Raj DhakalTraining Officer, AEPC, Nepal

E-mail: [email protected]/[email protected]


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Presentation outline

Background: Nepals 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


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Background-1

Nepal Location: Southernslopes of the Himalayas

Area: 147,181 sq.km.


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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 consumption2005/06: 8478 TOE

Major contribution fromTraditional sources


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Nepals Energy Consumption Pattern 2005/06

By Fuel Type

By Sector


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Established in 1996 under the MoEST by AEPDBformation order

National executing agency of programmes andprojects in renewable energy sector


Overall Objective:

To popularise and promote the use of alternative/renewable energy technology, to raise the livingstandard of the rural people, to protect theenvironment, and to develop the commercially

viable alternative energy industries in the country


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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.)


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SN Programmes Major Support Areas Donors

1. Energy SectorAssistance

Programme

Micro/mini hydro, solarenergy, 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/institutional

solar energy systems

EC

4. Biogas SupportProgramme

Biogas DGIS-SNV,KfW

5. Improved Water MillSupport Programme

Improved water mills DGIS-SNV

Major Programmes under AEPC


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MoESTMoF NPC

AEPC

Program/Projects

Program SteeringCommittees (GoN,

Pvt. sector, donors,other partners)

Donors

Stakeholders:

Coordination,Networking,

Regional/Local outreach:

Promotion, CapacityBuild., Tech. Support etc.

Users/Community

Institutional Set up for Service Delivery

Private Sector:

Manufact , supply,instal , ASS


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Sector Programme Support witha long-term perspective

Public Private Partnership with

focus on community/usersparticipation

Demand Driven Services

Key Approaches and Strategies


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Programme Implementation Modality

Public

PrivatePartnershipDemand side

Public sector

Supply side

Private sector

Awareness &capacity buildingTechnical & financialassistance

Coordination &networkingQuality assurance,monitoring & evaluation

Manufacturing &supply

Sales &installation

After sales services,repair & maintenanceInt. Quality control &

monitoring

Subsidy

Users/ Beneficiary


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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 steeringcommittees

Relevant stakeholders (coordination & collaboration) MoU withAgriculture Development Bank Limited, National

Cooperative Federation Nepal, Poverty Alleviation Fund,Association of District Development Committees Nepal, NationalAssociation of VDCs Nepal, Centre for Technical Education andVocational Training, World Wildlife Fund, Practical Action Nepal,Winrock International Nepal, and others.

Public Sector Partners


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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 mobilizingcredit; Ensuring quality, monitoring and evaluation

Focus on the Technical Supports


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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, programmesteering committees, and task force

Pvt. Companies deliver services at users end viatheir branch/dealers/agents

Major Private Sector Partners


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Physical Progress on RET in NepalSN Alternative Energy

Technologies

Unit Progress Number of HHs

benefitedAccess 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


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1. Rural Energy Policy 2006, RE Subsidy

Arrangement & Delivery Mechanism, 20062. 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 sector

5. Donors supporting RET sector through AEPC6. Revenue generation through CDM

7. Recognitions and awards for AEPC progs.

Important Achievements


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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 poverty

reduction

Enhanced institutional confidence

Efficient use of traditional biomass fuels

Major Benefits


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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


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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


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Thank you for yourkind attention!


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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

Promoting RETs Thru PPP_NRDhakal-Presentation

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