Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

AEPC

Prof. Dr. Govind Raj Pokharel Executive Director

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Micro-hydro (Potential >100MW & Progress ~ 22 MW

HHs Biogas (Potential 1.1 million & Progress ~0.275 million plants)

Wind (Potential 3000 MW & Progress- 20 kW)

IWM (Potential 25,000 & Progress ~7,500)

Bio-fuel (Potential 1100,000 tons & Progress- piloting

ICS (Potential 2.5 Million & Progress ~0.53 Million hhs)

SHS (Potential 4.7 kWh/m2/day & Progress ~0.49 million hhs; 7.2 MW)

Solar dryer & cooker (3200 HHs)

Institutional Solar System/Solar water pumping (200, 000 HHs ~ 3 MW)

POTENTAIL AND ACHIEVEMENT

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Institutional Arrangement and Govt Arms

The

the Alternative Energy Promotion Centre (AEPC) in 1996 to look after all RETs including small hydro up to 10 MW

Government

of

Nepal

established

It is National Executing Agency for RE programs and projects It is under Ministry of Environment, Science and Technology and has semi autonomous status

It has mandate for policy & plan formulation resource mobilization, coordination, quality assurance and Monitoring of RETs

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Rural Energy Policies -2006

Emphasis for environment friendly RETs Capacity building of local bodies-planning,

implementation, M & E Resource mobilizations Rural Energy Fund at different level Involvement of private sector, NGOs, Community management- social mobilization Diversification of productive end-uses of energy Grid connection of off-grid and small renewable energy systems
4

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Rural Energy Policy -2006 and Subsidy Policy -2009

Subsidy Arrangement

Poverty, remoteness, Social Inclusion, Gender Reducing in accessible and commercially viable areas
Resource Arrangement

Financial resources District Energy Fund, Village Energy Fund, Human resources
Monitoring Arrangement

Central and Local Level

Institutional Arrangement

Central : policies, studies, research, TA, Coordination District Level

Coordination Arrangement

Central- AEPC Local Local bodies, District Energy Committee

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

SERVICE PROVIDERS: ARMS OF GOVT AS PER RE POLICY -2006

Districts Energy and Environment Sections (in all 75

Districts) are responsible for promotion of RETs at the local level, especially for knowledge transfer, RE planning, promotion, monitoring, networking etc.
local NGOs (Support organization) are facilitating and

providing technical support to communities/users to achieve physical targets.

Around 300 SMEs [with about 10,000 employees] are involved

in the design, manufacturing, installation and after sale service delivery.

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

PPP MODEL AS PER RE POLICY -2006

Demand side
Public sector

Public Private Partnership

Supply side
Private sector

capacity building

Manufacturing Procedures/ Guidelines

Subsidy

Technical & financial assistance

Coordination

Supply & installation

After sales services

Quality assurance

Internal quality control

Users/ Beneficiary

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Financial Mix and Incentive for RETs as per Subsidy Policy

User Contribute about 60-75% of Upfront Investment Cost

(Cash, Kind and Credit) Indirect Incentive

Custom and VAT Exemption for RET related equipment / components

Capacity Development/Sector Development Support Direct Incentive (Subsidy+ Credit)

Subsidy to almost all RETs from 30-40% of the total upfront investment Subsidy mainly finances quality ensuring mechanism

Credit to RETs- micro/mini hydro, solar PV, Biogas, etc

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

Challenges and Barriers

Access to RETs in the remote areas and among BOP in

terms of availability & affordability Access to affordable and reliable financing of RETs including credit financing No mandatory Policy on Grid connection/Regional Grid/Mini Grid of technically feasible RETs Commercialization of the RETs Biasness perception of subsidy Promotion of the productive economic end uses of the RE
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Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply in Nepal

For Deviated Cases:

AEPC

Alternative Energy Promotion Centre

Making Renewable Energy Mainstream Supply to Rural Areas

SHS- SUBSIDY MODEL

Venders are prequalified
Vender creates demand, installs systems, takes photo, fill subsidy application form and conduct a simple operation and maintenance training

Return to vender

Vender submits the subsidy form to the program

The program assesses/ve rifies the form

Rural Energy fund verifies and releases 90% of the subsidy

Yes

The Rural Energy Fund releases the retention money (10%)

Monitoring report is a basis for performance evaluation and grading of companies including penalty and disqualification

The prequalified consulting firm (third party) verifies 10% of the installations in the field

The program selects no of sites randomly through computerized program to be visited for physical verification and quality assurance