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.


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Promoting Renewable Energy

Technologies through Public

Private Partnership

Mr. Nawa Raj Dhakal

Training Officer, AEPC, Nepal

E-mail: [email protected]/

[email protected]


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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


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Background-1

Nepal • Location: Southern slopes 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 consumption 2005/06: 8478 TOE

• Major contribution from Traditional sources


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Nepal’s Energy Consumption Pattern 2005/06

By Fuel Type

By Sector


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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


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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 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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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 your

kind 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