Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Renewable Energy Policy and Development in Nepal Dr. Govind Raj Pokharel Executive Director September 24, 2008 September 24, 2008

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Government of Nepal Declared F/Y 2008/09 Alternative Energy Year

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 3 Policy Trend and AEPC Importance of Alternative Energy Technologies was recognized during the 7th Plan Period ( ) The development of the Energy Sector was given special priority during the 8th Plan ( ). Objective was to reduce the growing gap between urban and rural areas Establishment of AEPC as Government Body (1996)

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Introduction - AEPC National Executing Agency - RE programmes and Projects. Government institution under MoEST- semi autonomous status. Mandate: Promotion and development of RETs: Mini/Micro hydro power up to 1000 kW, Solar Energy, Wind Energy, Biomass Energy (biogas), Geothermal Energy, Energy Efficiency!

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 5 Objective of AEPC establishment 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 Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 6 Vision of AEPC "An institution recognised as a regional/ international example of promoting large-scale use of renewable energy and a national focal point for resource mobilisation"

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 7 Policy Trend and AEPC One of the main objectives in 9 th plan was to promote large Scale promotion of RETs for Poverty alleviation Objectives of 10 th Plan: 1. Promote and disseminate RETs as the powerful mean to enhance the livelihoods of the rural people for the poverty alleviation (increase purchasing capability) 2. Reduce the consumption of traditional energy sources

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Approach of RET promotion Demand driven programme Involvement of Community, Local Bodies (DDCs/VDCs) and NGOs-promotion and quality control Private sector responsible for manufacturing, supply, installation and after sale services of the RETs system Govt.’ technical support in terms of training, information, guidelines and quality assurance Collaboration with NGOs, Local Bodies and academic institutions

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Consumer Private Sector RET Supply AEPC & Its Programs Demand & Investment Capacity Building Mobilization, Capacity Building, Subsidy and Promoting Agencies (Gos, NGOs, INGOs)

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 10 Roles and Responsibilities of AEPC Short, medium and long term policy and plan formulation Monitoring and Evaluation Promotion of RET Development Programmes; Standardisation, Quality Assurance and Monitoring Chanelise Subsidy and Financial Assistance Co-ordination of (I)NGOs and Private Sector and Strengthening Organisation working in RET.

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 11 Government’s Strategy Emphasis will be given for locally available resources and skills Priority will be given to programmes which are aimed at the integrated implementation for supporting the social, economic and environmental sustainability. Subsidy policy will be revised as per need in order to increase the access of rural households/communities to rural energy technology and provide maximum benefit to them

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Existing Policies Renewable Energy Subsidy Arrangement and RE Subsidy Delivery Mechanism introduced and implemented Rural Energy Policy, 2006 Tax and VAT Exemption Biogas Credit Unit Credit Support for the Biogas Plant Installation

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Financial Incentives/ Promotional Measures Subsidy Based on capacity installed and HH benefited Subsidy Delivery to users thru private companies by deducting from the system cost Prospective manpower needed to private sectors are trained on Govt. cost Tax and VAT Exemption in import of system/components Biogas Credit Unit Credit Support for the Biogas Plant Installation

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Physical Progress of RETs in Nepal SNRE TypeUnitProgressBenefited HHs Access to Electricity6 % Population 1.Biogas PlantsNumber196,000 2.Micro hydropowerkW10,200100,000 3.Solar Home SystemNumber126,780 4.Solar TukiNumber59,120 5.Solar Cooker/DryerNumber1,765 6.Improved Cook StovesNumber278,342 7.Improved Water MillNumber4,236127,080 Total891,087

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 3 Y Interim ( )Plan for AE SNAlternative Energy Technologies UnitTargetAccess to Energy to HHs Access to ElectricityAdditional 5 % Population 1.Biogas PlantsNo.100,000 2.Micro hydropowerkW11,5001,15,000 3.Solar PV Home SystemNo.90,000 4.Solar TukiNo.140,000 5.Solar Cooker/DryerNo.1,500 6.Improved Cook StovesNo.300,000 7.Improved Water MillNo.4,000100,000 Total846,500

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC Other Plan of AEPC Sensitize all Nepalese by Celebrating Alternative Energy Year Promote Bio-fuel (Bio-diesel and Bio-ethanol) to blend in diesel and petrol ( at least 10% Ethanol) Promote Wind Energy Solar PV in urban areas and Connection to grid Promotion of biogas in urban HH based on waste Adaptive R & D on Hydrogen Energy and other technologies Promotional activities on Energy Efficiency

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 17 Solution to Energy Crisis Solution to Energy Crisis Cooking/Boiling/Heating Household waste biogas plant/ Phuksin Biogas plant feeding agro-waste Solar Cooker Bio-briquette Solar water heater Efficient Cooking Devices

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 18 Solution to Energy Crisis: Transportation More than 23 plants found in Nepal have the oil content as high as 80% About 13,600 kL of resin and turpentine was produced by 12 industries and Nepal’s potential about 27,300 kL About 1 million Kilo-liter of bio-diesel can be produced in Nepal per year if planed and developed properly.

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 19 Main Challenges in RETs Lack of technical persons in the RET sector Lack of access of information to the people of the remote areas Un-affordability i.e. low income of the people to use the technology especially Dalit, Marginalized and remote areas Connecting several MHP/MMHP to mini-grid and ultimately to the grid wherever technically financially feasible Lack of coherent policy in the sector

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 20 Areas needed to be focused in RET Developing manufacturing base (above 100kW) Capacity building (Designers to installers & operators) Financing (Commercial Banks and Local Financial Institutions) End-uses/productive applications Adaptive R & D

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 21 Strategies adapted recently Decentralization (establishment of DEEU/S in 72 DDCs) Draft 3 tier Monitoring MOUs for optimizing subsidy, integrated development Technical Capacity Building for Designing MHP system, Small Solar Home System, ICS, Wind etc

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC

Alternative Energy Promotion Centre Making Renewable Energy Mainstream Supply in Nepal AEPC 27 Thank You Any Questions?? For further information: Alternative Energy Promotion Centre Khumaltar, Lalitpur Ph / Website: