Alternative Energy Promotion Centre

Transcription

1 Plans and Policies for RE Development Dr. Govind Raj Pokharel Executive Director

2 ASSESSMENT OF RENEWABLE ENERGY INTERVENTION POSSIBILITIES IN KARNALI DISTRICTS By Dr. Govind Raj Pokharel Mr. Ram Pd. Dhital

3 Dr. Govind Raj Pokharel Executive Director Ministry of Environment, Science and Technology AEPC Energy Policy promoting Mini/Micro Hydro based Rural Development -Nepalese Experience-

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5 Country Background Located between India (South, East& West) and China (North) Area 147,181 sq km Population million 3 Ecological Regions: Mountain, Hills and Terai 5 development regions, 14 zones and 75 districts The country of Himalayas: Mt. Everest, 10 peaks>8000m Per Capita income- $276

6 Introduction AEPC - established in November 3, 1996 National Executing Agency - RE programmes and projects. Government institution under MoESTsemi autonomous status. Mandate: policy and plan formulation, resource mobilisation, coordination and quality assurance.

7 Government Working Modality of RET Sector Policy Support Consumer AEPC (Rural Energy Fund) Subsidy/Credit Training Local Bodies NGOs Promotion Private Sector Donor

8 Hydropower Policy 1992/ Electricity Act 1992 No license up to 1000 kw No income Tax up to 1000 kw No income tax for 15 years (Generation) No income tax for 10 years (transmission/distribution) Focus on the management and development of electricity

9 Center Policy Formulation and Coordination Resource Mobilization Donor Coordination Monitoring Quality control/ensuring Promotion activities Regional/District Institutional development to: Plan Manage Monitor Support services Technical back up Promotion Community Capacity building to: Plan Implement Operate Maintain For Rural Energy Systems and Sustainable Development Thru Private Sector Involvement

10 Working Principle of AEPC The subsidy/programme is demand based Involvement of Community, Local bodies (district), Cooperatives and Private Sectors Private sector responsible for manufacturing, supply, installation and after sale services of the MHP and RET systems Technical support in terms of training, information, guidelines, quality assurance and financial support in terms of subsidy and tax exemption through AEPC Credit is given thru MFIs/Local Banks

11 Project Implementation Cycle of MHP AEPC

12 Major Micro and Mini Hydro Programmes DANIDA and NORWAY Supported Energy Sector Assistance Programme (Upto 500 kw) WB and UNDP Supported Rural Energy Development Programme (upto 500 kw) SNV supported Improved Water Mill Programme (upto 3 kw)

13 Achievements (till Dec 2006) Classification of Schemes (Electrification) Pico-hydro (up to 3 kw) Micro-hydro (3-100 kw) Total Mechanical Turbine Mills No. kw No. kw No. kw No. kw

14 Hydro Power Categorization in Nepal S.N. Category Capacity 1 Pico Hydro < 5 kw 2 Micro Hydro 5kW to 100 kw 3 Mini Hydro >100kW to 1 MW 4 Small Hydro >1 MW to 10 MW 5 Large Hydro >10 MW

15 Present Approaches of Rural Electrification Conventional grid line extension Community rural electrification (20/80 contributions) Mini/micro-hydropower, Solar Home System, Pico Hydro etc (on government subsidy programme)

16 Contribution in the RET Sector S.N Technology Overall Status 1 ICS 350,000 nos. 2 MHP 9.3 MW (100,000HH) 3 SHS 80,000 nos. (HH) 4 Biogas (HH) 5 IWM 2300 Nos. As of July 15, 2006

17 Alternative Energy Promotion Continued Centre EXPERIENCES The best option to provide modern energy services to people in remote villages is the development of rural energy technologies It needs many more years to electrify rural areas from the national grid with the traditional approach/modality

18 Historical Development-Mini/Micro Hydropower The promotion of Micro/Mini Hydro started with the water mill (ghatta) owners replacing traditional water wheel with the cross flow turbines and Multipurpose Power Unit (Modified Pelton Turbine) on which generators were added on to produce electricity for lighting purposes.

19 6 th five year development plan ( ) In 1981, Agriculture Development Bank (ADB) launched the Rural Electrification Project: Waived licensing requirement for Micro Hydro Deregulated Micro Hydro electricity price In 1985, started providing subsidy of 50-75% for electro-mechanical and transmission cost Waived income tax on micro hydro earning

20 8 th five year development plan ( ): Included the micro/mini hydro along with other renewable energy technologies with special focus as a mean for income generation Establishment of Alternative Energy Promotion Centre (AEPC)

21 10 th five year development plan ( ) Poverty Reduction Strategy Paper (PRSP) Contributing towards the primary purpose of poverty alleviation Encourage people s participation through cooperatives users groups and NGOs Encourage private sector investment in hydropower development

22 Legal Provisions-Hydropower Development Hydropower Development Policy 1992 Electricity Acts 1992 Water Resources Act 1992 Water Resources Regulation 1993 Electricity Regulation 1993 Hydropower Development Policy 2001 Water Resources Strategy 2002 Rural Energy Policy 2006

23 Government s Policy and Strategy RE will be integrated for socio-economic development (enterprise and human development). 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.

24 Government s Policy Cont.. Emphasis will be given for R & D activities aiming to reduce upfront cost of RETs Rural Energy Fund will be expanded up to the district & village levels in order to create enabling environment to attract private sector in the development of RETs Institutional arrangement will be made up to the district level in order to develop and promote RETs

25 Government s Policy Cont. Emphasis will be given to individual and community ownership and management in the development and dissemination of RETs Subsidy policy will be periodically revised as per need in order to increase the access of rural households/communities to rural energy technology and provide maximum benefit to them

26 Approach 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 Technical support in terms of training, information, guidelines and quality assurance

27 Hydro Power Categorization in Nepal S.N. Category Capacity 1 Pico Hydro < 5 kw 2 Micro Hydro 5kW to 100 kw 3 Mini Hydro >100kW to 1 MW 4 Small Hydro >1 MW to 10 MW 5 Large Hydro >10 MW Most of Mini/Micro hydro run on Isolated Mode

28 Subsidy Policy, 2006 Policy Subsidy Delivery Mechanism, 2006 Rural Energy Policy, 2006: emphasis on decentralization, private sector participation and commercialization of the sector Custom duty, Tax and VAT Exemption

29 The Principle Alternative for Policies Energy on Promotion Micro and Centre Mini Hydro Promotion in Nepal GoN/ AEPC Capacity Building Mobilization, Capacity Building, Subsidy and Credit mobilization Private Sector Consumer RET Supply Demand & Investment

30 Policies Trend for Micro/Mini hydro Hydropower Development Policy 2001 Renewable Energy Subsidy Policy 2000/2006 Subsidy Delivery Mechanism 2000/2006 Rural Energy Policy 2006

31 Water Resources Act 1992 No license shall be required for the following use of water resources: Domestic use/drinking water Irrigation of one s own land Water mill or water grinder use of boat on personal basis

32 Hydropower Development Policy, 1992/2001 To generate electricity at low cost To extend reliable and qualitative electric service To tie-up electrification with the economic activities To render support to the development of rural economy Operating small and mini hydropower projects at the local level Make electric service available to as many people as possible

33 Favorable Policy for Mini/Micro Hydro (1992/2001) No license up to 1000 kw No royalty levied up to 1000 kw No income Tax up to 1000 kw

34 Highlights of Rural Energy Policy 2006 Participation of local bodies (DDCs/VDCs) is mandatory Creation of Central, District and Village level Rural Energy Fund for subsidy mobilization Encourage community based energy development initiative Encourage social mobilisation for dissemination and development of rural energy Focus on energy poverty linkages Promote private sector for the supply of RETs

35 Highlights of RE Subsidy Policy 2006 Social Equity Targeted to low income households Payment mechanism transparent NRs 10,000 per HH and (Max NRs 85,000/kW) Transportation Subsidy maximum of NRs 3,000/HH Cost Effectiveness Market expansion Least cost solution

36 Highlights of RE Subsidy Policy. Commercial Market Structure Compatibility Discourage dependence on excessive subsidy Encourage financing institutions to invest in RETs Establish mechanism to promote productive end uses

37 National NGOs, INGOs and Other Partners AEPC s Policy to Coordinate Donors GTZ Credit/ Tech. Support GoN/AEPC REF REDP Other Donors (Finland) Government/Local Fund Technical/Other Support LPO/RRESC AEPC/DDC Collaboration DDC (DEEU) Demand Creation Technical/Financial Support CO/SO

38 Alternative Energy AEPC Promotion Centre Capacity building Subsidy Making Renewable Energy REF Mainstream Supply to Nepal DEF DDC (DEEU) Information Dissemination Planning Monitoring and Evaluation Resource Mobilization Conflict Management LPO/RRESC/ESAP Private Sector NGO CO/SO/REDP Technical Support Community Mobilization Awareness Creation Demand Collection Facilitation to DDC/VDC Consumer

39 RET Status S.N Technology Status 1 ICS (Nos. & HH) 300, MHP 10MW (90,000HH+) 3 SHS 110,000 HH+ 4 Biogas 170,000+ HH 5 IWM 3,000+ As of July 15, 2007

40 Renewable Energy Subsidy Policy 2006 Micro Hydro A subsidy NPR 8,000 per household and not exceeding 65,000 per kw for new MHP project up to 5 kw capacities A subsidy of NPR 10,000 per household and not exceeding 85,000 per kw for new MHP project from above 5 kw to 500 kw A subsidy of NPR 4,000 per household and not exceeding 40,000 per kw for to the add-on MHP project (Improved Water Mill), if it is for electrifying villages In respect of rehabilitation of MHP projects, a subsidy of NPR 10,000 per additional households

41 Subsidy Policy 2006 An additional transportation subsidy for the of equipment and materials of the MHP project is provided based on distance from the nearest road head to project site. NRs 3,000perHhformorethan50Kmand NRs1,200per HH for more than 25 KM For SHS system for 10 Wp to 18 Wp NRs 5000 to 7000 per HH per System For the system more than 18 Wp NRs 6000 to 10,000 Per SHS per HH Solar Tuki a 5 Watt white LED based system NRs 2,000 per System per HH

42 Solar Cooker The subsidy to solar cooker will be 50% of its market value, but will not exceed NPR 4,000. Solar Dryer The subsidy to family sized solar dryer of total cost NPR 20,000 will be provided up to 50%. If the dryers are to be installed in rural arias for commercial purpose, the subsidy will be up to 70% of the cost Solar Water Pump The subsidy for solar pumps up to the capacity of 1000 Wp will be 75% of its cost. The AEPC will provide necessary technical support like feasibility study etc. to such schemes.

43 Interim Plan ( ) Biogas-100,000 plants in 70 districts IWM- 4,000 units in 40 districts Micro hydro MW in 54 districts Solar Home Systems- 90,000 SHSs in 72 districts Small Solar Home Systems- 140,000 units in 75 districts

44 Interim Plan ( ) Improved Cook stoves - 300, solar water pumping systems 1,500 solar cookers and dryers 810 institutional PV systems

45 Issues/ Barriers Effective and efficient credit facilities Lack of human resources in the renewable energy sector Low purchasing capacity of population to afford the technology

46 Thank You for Your Kind Attention For further information look at Or at : govind.pokharel@aepc.gov.np

47 . For further Information please send epc.gov.np or com

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