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Energy Efficiency Center (EEC)Component 3

Nepal Energy Efficiency Project

Dr. Uttam KunwarEnergy & Environment Expert =FNCCI

Project Manager -EECFederation of Nepalese Chambers of Commerce and

Industry (FNCCI)

Industrial Energy Consumption by Fuel Type 2008-09

Coal 58%

Electricity23%

Agri residue 10%

Fuelwood 5%

HSDiesel 2%Other Petroleum

2%

Total Final Energy Consumption 13.4 MGJ

Energy Use in Industries

Boilers62%

Motor Drives8%

Lighting1%

Furnace & Kiln29%

Historical Background

�EE Intervention in Nepali industries:

�World bank: Energy Efficiency Project-1993-98

�UNIDO : 5 pilot industrial sector 1993-97�ESPS-DANIDA: 1999-2005

�FINIDA: Eastern Development Regions

�2000 -2011 Phase I and II, Phase – III under preparation.

Saving opportunities in Nepalese Industries

As Identified under ESPS programme:

Number of industries participated: 360

� Large:13%� Medium and small: 87%

� Identified Energy saving potential:

� Electrical ~ 15%� Thermal ~30%

Nepal Energy Efficiency Programme

Government of Nepal and Government of Germany Joint Collaboration Programme

Formulation of NEEPNEEP:

� Component 1: Formulation of EE policy � Component 2:

�Component 2 (a): Labeling of electrical appliances

�Component 2 (b): Promotion of ICS

�Component 3: Energy Efficiency Center (EEC) – FNCCI

Objective of EEC

� to provide quality energy efficiency services to industrial community

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Institutional Arrangement

Energy Efficiency Centre Coordination Committee chaired by FNCCI with representative from various organization will be formed for efficient implementation of business plan & performance monitoring of EEC.

EEC – Coordination Committee

CNI

FNCCI

NBAHAN

Mo Industry

Mo Environment

WECS

…….

FNCSI

GTZ/NEEP

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EEC Operation Plan Work Package - 1 Work Package - 2 Work Package -2

Output 1:� EE established

� Data base on energy use

� Knowledge management center

� Energy audit services

� Networking with regional organization

Output 2:� Auditor training

� Energy audit report & Manual

� Accreditation of training

Output 3 :� Quality control of

report & Capacity development of banks

� Capacity building of DCCI

� Promotional services to banks, industry and govt.

� Support to govtin EE policy formulation

Modality for Functional Sustainability of EEC/FNCCI

Proposed strategy:

�EEC will function as autonomous activity based Centre�under the ownership of FNCCI, DCCI, Industries and industrial associations

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Strategy for Functional Sustainability of EEC/FNCCI

Proposed working Modality:

�Establishment of Energy Efficiency cell at district level chambers for smooth coordination, implementation and monitoring EE Services to industries

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Financial Sustainability

�In the long run EEC will generates revenues to support its services. Possible sources are:

� Energy audit training & EE Audit will be fee based� Fee from EE performance certificate to industry for loan

purpose� Energy related advisory services to industries.

�Diversify funding: . NORAD, UNDP, DFID, DANIDA etc.

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Strategy to Generate Replicate Effect of EEC Inputs

Establish Pilot demonstration project: Feasible High energy efficient options will be identified for each energy intensive industrial sector (i.e. rolling mill, food, pulp & paper, metal industry, soap & Chemical, Cement, cold storage and brick.) for implementation.

Funding mechanism EE implementation:

• Provision of soft loan

Kathmandu,13.93%

Bhaktapur,3.84%

Lalitpur,5.47%

Kanchanpur,2.89%

Morang,8.46%

Jhapa,3.98%Parsa,6.36%

Rupandehi,6.33%

Sunsari,6.28%

Bara,5.41%

Kaski,4.12%

Kailali,3.31%

Chitwan,2.89%

Banke,2.72%

Nawalparasi,2.13%

Dang,1.51%

Kapilbastu,1.49%Makwanpur,1.60%

Saptari,1.74%

Dhanusha,1.93%

Main manufacturing industry distribution in the country

100 % = 3446 Industry Establishments

Sunsari,7.37%

Parsa,7.76%

Rupandehi,7.21%

Bara,6.59%

Morang,6.15%

Main energy consuming districts

Distribution of:- Clay & Ceramic Sector- Cement, Lime & Plaster, Concrete Sector- Food & Beverage Sector- Structural Metal Products Sector- Textile & Apparels Sector

15100 % = Number of establishments of main energy consuming sectors

Thank you!