1. First National Conference on Bioenergy
24-25 August 2011; Kathmandu, Nepal
A Glimpse of
Bioenergy Policy Initiatives in Nepal
By
Mr. Nawa Raj Dhakal
Alternative Energy Promotion Centre (AEPC)
P.O.Box 14364, Kathmandu, N
P O B 14364 K th d Nepal l
E-mail: nawa.dhakal@aepc.gov.np; nrdhakal@yahoo.com
Web: www.aepc.gov.np
www aepc gov np

2.  Biomass & bioenergy; bioenergy routes
 Bioenergy in global energy consumption
 Nepal: country background & energy situation
 Position of bioenergy in
Periodic Plans
Energy/RE Policies & Strategies
RE Subsidy Arrangement
 Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP/BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
 Way forward 2

3.  Biomass: material of biological origin, including
living plants, animals and resulting residues, but
excluding f
l di fossilized organic material embedded i
ili d i t i l b dd d in
geological formations
 Bioenergy (Biomass Energy): energy from biomass,
produced directly or indirectly
 Three primary applications of bioenergy: generation
of electricity, heating & transport fuel
3

4. 1Partsof each feedstock, e.g., crop residues could be used in other routes;
g p
2Each route also gives co-products;
3Biomass upgrading includes any of the densification processes;
4AD= Anaerobic Digestion
4 Source: E4tech, 2008.

5. Source: REN21, 2011.
5

6.  Area- 147,181 km2; population- 28.1 million
A 147 181 k l ti 28 1 illi
 Per capita income- US$ 470
 Rural/urban population ratio- 86/14
 >80% of people in agriculture
 Energy consumption/Year- 401 M GJ; ~14 GJ/Capita
 Energy sector situation:
 Power crisis- Load shedding up to 16 hrs/day!
 Shortage of petroleum products (100% imported)
imported)-
 Import expenses >20% of country’s expenditure
( 40%
(~40% of foreign currency reserves)
 Huge state subsidy to compensate NOC’s losses
6

7. By Fuel Type By Sector
Renewable (0.7%)
itional Bio
Tradi 7.1%)
omass (87
7 Source: WECS, 2010

8.  Biomass & bioenergy; bioenergy routes
 Share of bioenergy in global energy consumption
 Nepal: country background & energy situation
 Position of bioenergy in
Periodic Plans
Rural Energy Policy & Energy/RE Strategies
RE Subsidy Arrangement
 Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP & BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
 Way forward 8

9. Seventh Plan (1985-90):
Promotion of biogas & ICS f conservation of forest
P ti f bi for ti ff t
resources & for the benefit of rural people;
Allocated budget to provide subsidy for biogas
Distribution of ICS free of charge
9

10. Eighth Plan (1992-97):
Suitable steps to develop local energy resources
Formulation of an Energy Master Plan
Focus on promotion of biogas to control forest
destruction
Installation or 30,000 biogas plants
Awareness on biomass energy technologies like
densification, gasification, carbonization & ICS
Distribution of 250,000 ICS (100 000 in hills &
250 000 (100,000
150,000 in Terai)
10

11. Ninth Plan (1997-2002):
Ni h Pl (1997 2002)
 Renewable Energy Subsidy Policy 2000
TTargets/policy measures:
t / li
Construction of 90,000 biogas plants (achievement
59,678;
59 678; 66%)
Expand ICS to make rural HH environment smokeless &
healthy
Installation of 250,000 ICS (achievement 51,100)
Conduction f t i i
C d ti of training & research on ICS
h
11

12. Tenth Plan (2002-07):
T h Pl (2002 07)
 Renewable/Alternative Energy in P1 project
 Bi
Biogas P
Program:
Construction of 200,000 (199,500 HH & 500 community)
biogas plants
R&D on small size biogas & on biogas for high hills
Installation of 250,000 ICS
Study & research on plant oils (biofuels)
Feasibility study on other BETs such as briquetting,
cogeneration & gasification
12

13. 3-Year Interim Plan (2007-10):
3Y I i Pl (2007 10)
Bioenergy Program:
Construction of 100,000 (99 950 HH & 50
C t ti f 100 000 (99,950
community/institutional) biogas plants
Additional financial support for poor & disadvantaged
R&D on high hill biogas & for cost reduction
Installation of 300,000 ICS & other bioenergy
technologies
R&D on bi f l
biofuels
Feasibility study & promotional activities on gasifiers,
briquettes,
briquettes biofuels etc
etc.
13

14. 3-Year Plan (2010-13):
3Y Pl (2010 13)
Bioenergy:
Construction of 90,000 HH 50 community, & 75
C t ti f 90 000 HHs, it
institutional biogas plants
Installation of 300,000 ICS & other bioenergy
technologies
Promote bio briquettes in 200,000 HHs of urban
areas.
14

15. Working policies for
W ki li i f
 Biogas
 F l wood, Ch
Fuel d Charcoal, B i
l Briquette, Bi
Biomass E
Energy,
Biomass Gasification
 Improved Cook Stove Technology
15

16. Biogas
 R&S on HH biogas technology to increase efficiency,
to reduce cost & to promote it in high hills
 R,D&D of community & institutional biogas plants
 Information & demonstration centres in coordination
& with support from local governments
 Discouraged use of dried animal dung (Guitha) as
HH fuel
16

17. Fuel wood, Charcoal, Briquette, Biomass Energy &
wood Charcoal Briquette
Biomass Gasification
 Scientific management of charcoal production,
g
distribution & uses
 Development & dissemination of technology for
briquette, biofuel, biomass gasification, etc. based on
feedstock availability
 R&D to identify raw material for briquette production &
to reduce its production cost
 A
Awareness creation on use of briquette, biofuel, biomass
ti fbi tt bi f l bi
gasification etc.
 R d ti i f l wood consumption b d
Reduction in fuel d ti by developing
l i
technologies like ICS & gasifiers
17

18. Improved Cook Stove Technology
 Awareness on smokeless & fuel wood efficient ICS
 Emphasis on R,D&D of household & institutional ICS
suited to geographical & cultural needs
 ICS technology t
t h l transfer in rural areas
f i l
18

19.  National Energy Strategy (Draft - WECS, 2010)
 Jatropha Plantation Guideline (Draft- MoFSC, 2009)
(Draft
 Strategy for Promotion of Biofuels (Draft- AEPC, 2009)
 Biofuel Policy & Action Report (Ongoing….NPC, 2011)
 20 Years Renewable Energy Perspective Plan
gy p
(Ongoing…..AEPC, 2011)
19

20. National Energy Strategy (Draft - WECS, 2010)- 1
WECS 2010)
Biomass
 Gradually decrease the share of traditional energy in the
energy mix of the country
 P
Promote technologies th t improve efficiency of biomass
t t h l i that i ffi i f bi
 Exploit the potential of developing 1.9 million biogas
plants out of 5 million HHs
l t t f illi HH
 Promote emerging BETs such as briquettes, gasifiers,
cogeneration & liquid biofuels
 Develop biomass energy through decentralized
implementation arrangements; integrate in local
government’s planning
20

21. National Energy Strategy (Draft - WECS, 2010)- 2
WECS 2010)
Biomass
 Forestry sector policies & programs to address poor
people’s livelihoods & poverty reduction
 C
Community f
it forestry as a vehicle f social i l i
t hi l for i l inclusion
 Alternative livelihood strategies in responding to fuel
wood t d
d trade
 Develop capacity to capture CDM benefits
 Energy demand for cooking & heating in the rural &
semi-urban area shall be met by traditional biomass
such as fuel wood
21

22.  Subsidy for Biogas & Improved Cooking Stoves (
y g p g )
(ICS)
22

23. Biogas- 1
Biogas
GGC 2047 or its modified model
Size 2 to 8 m3
Subsidy covers ~20-40% of the cost
23

24. Biogas- 2
g
Districts/Category Rs./Plant
1 Basic Subsidy
20 Terai districts 9,000
40 Hill Districts with road access 12,000
15 Remote districts 16,000
2 Additional Subsidy based on Penetration & Plant Size
40 Low Penetration Districts
Lo 700
Small users (plants of size 2,4,6 m3) 700
3 Additional Subsidy for Poor, Dalit Disadvantaged &
Poor Dalit,
Conflict Affected
20 Terai districts 2,000
,
40 Hill Districts with road access 2,500
15 Remote districts 24 3,500

25. Biogas- 3
g
Districts/Category Rs./Plant
4 Subsidy for Toilet Attached Biogas Plants
Plants*
20 Terai districts 3,500
40 Hill Districts with road access 4,000
,
15 Remote districts 4,500
5 Subsidy for Institutional Biogas Plants**
20 Terai districts 8,000
40 Hill Districts with road access 12,000
15 Remote districts 16,000
*If fund is available from relevant development partners
**Using other than cattle dung as feedstock
25

26. Biogas- 4
g
Districts/Category Rs./HH
6 Subsidy for Community Biogas Plants
20 Terai districts 6,000
40 Hill Districts with road access 9,000
15 Remote districts 12,000
7 Transportation Subsidy Rs./Plant or HH
12 Remote* districts 2,000
3 Very remote** districts 4,000
* Bhojpur, Darchula, Jajarkot, Khotang, Sankhuwasabha, Bajhang, Bajura,
Jumla, Kalikot, Manang, Mustang & Solukhumbhu
** Dolpa, Humla & Mugu
26

27. Biogas 5
Biogas-
27

28. Improved Cooking Stoves
 No direct subsidy for mud ICS
 M t lli ICS: Rs 4,000 f th
Metallic ICS R 4 000 for three pot h l & R 2 700 f
t hole Rs 2,700 for
two pot hole
 Up to Rs 2 000 household & up to 5 000 for institutional
2,000 5,000
gasifiers (but not more than 50% of total cost)
28

29. Other Renewable Energy
Oth R bl E
 No direct subsidy but support in studies, research &
development, trainings and pilot projects in the field
of other renewable energy, e.g., biomass briquette,
institutional gasifiers, bi f l etc.
i tit ti l ifi biofuels t
29

30.  Biomass & bioenergy; bioenergy routes
 Share of bioenergy in global energy consumption
 Nepal: country background & energy situation
 Position of bioenergy in
Periodic Plans
Energy/RE Policies & Strategies
RE Subsidy Arrangement
 Major programmes in bioenergy sector
Biogas: BSP+
Bi
ICS & other BETs: NICSP/BESP
Biofuels: Biofuel Programme
Bi f l Bi f l P
 Way forward 30

31.  1975/76 “Agriculture Year”- o c a p o o o s a ed
9 5/ 6 g cu u e ea official promotion started
 GGC (1977), joint venture among ADB/N, DCS/UMN &
Fuel Corporation Nepal
p p
 Biogas Support Programme (BSP) began with Dutch
support via SNV in 1992
 Became Nepal’s first CDM project (2005)
 Gold Standard Biogas Project (GSP) partnership with
(GSP),
WWF (2006)
 Key achievements (from users’ perspective)
users
Strong local network of service providers (81
companies, 2 national NGOs, & MFIs/Banks)
p , , )
263,779 HHs plus a few institutional & community
biogas plants 31

32.  ICS promotion (1980-91) through Community Forestry
ti (1980 91) th hC it F t
Development Division
 AEPC
AEPC-executed Energy Sector Assistance Programme
t dE S t A i t P
began from with Danish support in 1999; National ICS
Programme (NICSP) operational from 2000 in mid hills
 NICSP approaches to promote HH mud-brick ICS:
Participatory Demand driven
Appropriate technology Subsidy less
Skill t
transfer at l
f t local l
l level
l Women-targeted
W t t d
32

33.  Expanded NICSP became Biomass Energy Support
Programme (BESP) from 2007
Geography: Mid Hills High Hills Terai
Hills, Hills,
Technology: IICS, MICS, Gafiers etc
 K achievements (f
Key hi (from users’ perspective):
’ i )
 Strong local network of service providers (15
RRESCs, 250 LPOs;
RRESC ~250 LPO 32 private manufacturers)
i t f t )
7,700+ skilled stove technicians (Local
Promoters/Stove Masters)
~500,000 HHs benefitted through ICS & MICS plus
IICS and household & institutional gasifiers
33

34. Biofuels Program
 Introduced from FY 2008/09 thru AEPC
 Focus on Jatropha-based biodiesel
promotion
 Major activities: Jatropha nurseries,
plantation, capacity b ildi
l i i building, pilot projects,
il j
& setting processing plants
 P t
Partnership with NOC & other k players
hi ith th key l

35.  Bioenergy policy/strategy an integral part of relevant
national policy/strategy (energy, industrial, land use,
agricultural,
agricultural forestry)
Sub-sectoral policy/strategy & targets
 T h l i l di
Technological diversification, d
ifi i demonstration projects
i j
 Carrying over the success experiences
 R&D - technology adoption, skill transfer & QA/AC
 CDM/carbon projects
 Capacity building, institutional development
 Public-Private-Cooperative partnership
Public Private Cooperative
35

36. 36