Ram Prasad Dhital Executive Director

Transcription

1 Alternative Energy Promotion Centre Ram Prasad Dhital Executive Director

2 OUTLINE Nepal s Energy Sector Overview s Efforts and different RE Programs Key Enablers Issues and Challenges Way Forward 2

3 ENERGY SECTOR INSTITUTIONAL OVERVIEW Council of Ministries HYDRO Coordination MoPE MOFALD Renewable Renewable Petroleum DDC/DEECC S Source: NPC 2013

4 DEVELOPMENT IN ENERGY MIX FY 2004/2005 FY 2015/16 (8 months) Commerci al 12% Renewable 0% Traditional Commercial Renewable 3% 42% 55% Traditional 88% Traditional: Fuel wood, Agro- residue, Animal Residue Commercial: Petroleum, Coal, Electricity Renewable: Solar, MH, Bio-gas, Wind etc. Sources: Economic Survey 2016(MoF), APR 2013(NEA), UNDP 2013

5 PROSPECTS /Opportunities of RE Development National Context Favorable Geo Physical Situation Favorable Policy Environment Energy promotion has been an integral part of national development agenda since 1985 RE Policy, Subsidy Policy and SDM Dedicated institution and established network Priority Sector of Government (CCLS4ALL by 2017) Vibrant Private Sector High dependence on traditional fuel High dependence on imported petroleum products 100 billion NRs was spent for petro imports (Prof. Nakarmi 2014) International Context Priority Sector of Development Partners Sustainable Energy for All UN program and IEA s proposal to invest $ 46 billion per year in RE to have access to clean energy to all by 2030 LDCs are being focused for CDM/Carbon revenue specially POA type of CDM programs Target of Global Alliance on Clean Cook stove Focus of bio-lateral aid (Energy+Norway, Energizing Dev-Germany, Climate Change/Energy Access Danida US$ 100 billion target of climate investment fund (CIF)

6 Introduction of - established in November 3, 1996 National Executing Agency Renewable energy programmes and projects. Government Institution under Ministry of Population and Environment - semi autonomous status. Mandate: policy and plan formulation, resource mobilisation, technical support, M & E, quality assurance and coordinationin promotionof RETs. Objective: Improving people s livelihoods and protecting environment through RET promotion 6

7 APPROACH FOR PROGRAM IMPLEMENTATION Demand side Public Private Partnership Supply side Public sector capacity building Technical & financial assistance Coordination Quality assurance Procedures/ Guidelines Subsidy Private sector Manufacturing Supply & installation After sales services Internal quality control Users/ Beneficiary

8 Key Achievements More than 16% of population have access to electricity through RETs & more than 34% of the total population have benefited from RETs Micro/Mini Hydro: >34 MW Solar Home Systems: 700,000 Biogas: 350,000 Improved Cook Stoves: 1,300,000 IWM: 10,000

9 Existing and Future Policies on RE Sector Rural Energy Policy, 2006 Renewable Energy Subsidy Policy, 2016 Ø RE Subsidy Delivery Mechanism, 2013 Ø Establishment & operation of Central RE Fund Additional Financial Support to Micro Hydro Policy, 2013 Financial Act, 2016 Exemption of VAT & Custom Duty in RE equipments/materials Act (in the process) RE Act including FIT (in the process) 20 Yrs RE Perspective Plan (in the process) 9

10 Key Highlights of Renewable Energy Subsidy Policy 2016 Highlight the objective of SE4ALL in policy document itself Subsidy Contribution has been decreased (Subsidy 40%, User Contribution 30%, Soft Loan 30% or financial closure of the project within maximum of 6 months) Output based subsidy (kwh energy generated) Private Sectors are also eligible for subsidy and focus on energy as service Special Support for earthquake victims Provision of Soft loan and Interest subsidy on urban areas Few new concepts: BATs, additional support for GESI and marginalized people Focus on bigger systems

11 Alternative Energy Promotion Centre National Programme for Rural and Renewable Energy ü National Rural & Renewable Energy Programme (NRREP) ü Government Led ü Single Programme Modality ü Starting Date: 16 July 2012 ü Duration: 5 years ü Budget: USD 170 Million (exclusive of Community Contributions)

12 Few Success Programs and Key Features Private Sector Development Approach Community Based model and strengthening local governnace 5 P ( ): Private Sector Investment Energy as a service rather product ESAP ( ) EU (REP) ( ) REDP ( ) NRREP ( ) BSP ( ): Private sector driven Soft loan for farmers Energy Service Provider (ESCO Model) Sector Wide Approach Single Program Modality

13 Clean Cooking Solutions for All by 2017 (CCS4ALL): An Ambitious Call (3 million additional ICS) Made on 20 Jan 2013 Before Announcement After Announcement 4,000,000 3,500,000 3,000,000 No. of ICS installation within : 0.65 million Average Installation rate: 50,000 ICS/ Year Challenges: In order to reach the ambitious target, yearly installation should be >1.2 million installations No. of ICS installation within mid 2015: 0.5 million Average Installation rate: 0.2 million ICS/ Year ICS Installation in FY 2014/15: 0.3 million 2,538,984 3,750,000 2,500,000 2,000,000 1,500,000 1,000, , , ,538 19,753 27,002 ICS InstallationTrend in Nepal (Cumulative & Yearly Installation) 34,338 41,883 48,981 56,446 63,977 65,423 76,138 80,985 84,570 89,127 93,684 99, , , , , , , , , , , , , , , ,815 1,017,686 1,327,967

14 Biogas: Very good Private Sector Network Focused Model Linkages: Slurry, As A By-Product: High Quality Organic Fertilizer Ambitious Target: 100,000 per year

15 Decentralized Delivery Model: Mud ICS Central level /NRREP/BESC Regional level District level VDC level DSC Business Groups RSC DDC/EECCS Cluster level Stove Master Stove Master Stove Master Users Users Users Users Users Users

16 Key Enablers for Decentralized Energy Solutions Dedicated Institution GoN Priority Continuous Donors Support Private Sector and their Network Decentralized Service Delivery Approach Robust Subsidy Policy and Delivery Mechanism Dedicated institution for Quality Control (RETS) Project to Program Based Approach Central Renewable Energy Fund Independent Monitoring Systems (through third party) ASS service linked with monitoring results Linked with Productive End use of Energy CDM Opportunities

17 Challenges Access to RETs in the remote areas in terms of availability & affordability Access to financing of RETs including credit financing in very remote areas (interest of BI?) Grid connection/regional Grid/Mini Grid of the Mini/Micro Hydropower and other RETs Commercialization of the RETs Adaptive research & technology transfer Promotion of the productive economic end uses of the RETs Changing Behavior of the consumers (for cooking solutions)

18 Way Forward Financing: Easy Financing (Fully Operationalization of CREF) Technical: Establishment of centre of excellences on RETS (micro hydro, biogas) Institutional/Organizational: Establishment of capacity development facilities on RETs in Nepal Coordination: Strengthen Energy interlinkages Upscaling Opportunities: Up Scaling RETs in Nepal Technology Investment 6/24/16 18

19 Thank You