An Overview of AEPC and Its Interventions · • VAT & tax exemption for RE systems/components ... I/NGOs Suppliers RETS Research Institutes ... Approaches adopted for mainstreaming

Alternative Energy Promotion CentreMaking Renewable Energy Mainstream Supply in NepalA

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An Overview of AEPC and Its Interventions

Ram Prasad DhitalExecutive Director, AEPC


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• Nepal's Energy Sector Overview

• AEPC: Introduction, Scope & Working Modality

• Key Policies and Guidelines

• Major Programs/Projects Implemented by AEPC

• National Rural and Renewable Energy Programme : at a Glance

• GESI – objectives/output/outcome

• Challenges and Way Forward

Outline


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Nepal’s Energy Consumption Status

Energy Consumption by Fuel Type: 55% contribution from traditional sources

Source: Energy Data Sheet. WECS, 2014.

Energy Consumption by Economic Sectors: 80% consumption in residential sector

Firewood50.2%

Agricultural residue

2.5%Cattle dung

2.6%

Coal1.8%

Petroleum products

37.8%

Electricity2.5%

Renewables2.7%

Source: Economic Survey. MoF, 2016 3


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Energy access in Nepal

Households by usual source of lighting: out of 5.423 million households

(CBS, 2012)

Households by usual source of cooking fuel: out of 5.423 million households (CBS, 2012)

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(as per Census 2011)


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Alternative Energy Promotion Centre

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• Focal agency of GoN for promotion and

development of RETs (estd: 3rd Nov 1996)

• Semi autonomous status under MoPE: Board represented by public sector, private sector & financial sector

• National Executing Agency for renewable energy programmes & projects

• Mandate: policy and plan formulation, resource mobilization, technical support, M&E, quality assurance & coordination


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Scope of AEPC

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Micro/mini/small hydro (up to 10 MW) & Improved Water Mills (IWM)

Solar Energy (PV & thermal)

Bioenergy: Biogas, Improved Cooking Stoves (ICS), Biofuel, Briquettes, Gasifier

Wind Energy

Other RETs (Geothermal, etc.)

Energy Efficiency

Climate Change


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Public Private

PartnershipDemand side

Public sector

Supply side

Private sector

Awareness & capacity building Technical & financial assistance Planning, coordination & networking Quality assurance, monitoring & evaluation

Manufacturing & supply

Sales & installation

After sales services, repair & maintenance

Int. Quality control & monitoring

Subsidy

Users/ Beneficiary

Qualification/ Grading/

Evaluation

Standards/ Guidelines

Working Modality

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• Rural Energy Policy, 2006• Renewable Energy Subsidy Policy, 2016• Renewable Energy Subsidy Delivery Mechanism, 2016 Central

Renewable Energy Fund Operational Guideline, 2013• Guideline for Additional Financial Support to Micro Hydro

Power Projects in Remote Districts, 2014• Subsidy Guideline for Solar Energy in Urban Areas, 2015• VAT & tax exemption for RE systems/components• Guidelines for technology standardization, quality assurance,

monitoring (e.g., Nepal Photovoltaic Quality Assurance, 2015; Nepal Interim Benchmark on solid biomass Cookstoves, 2014)

• Carbon Revenue Utilization Guideline (to be approved)

Key policies and guidelines

Please refer to www.aepc.gov.np for actual documents (under tab “Resource Centre”)


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Major Programmes Implemented by AEPC

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Name Period DPs Main support areasEnergy Sector Assistance Programme (ESAP I & II) 1999 - 2012 Denmark, Norway,

KfW, DFID

Hydro, Biomass, Solar, Institutional

DevelopmentBiogas Support Program (BSP I, II, III & IV) 1992 - 2012 SNV, KfW, WB Biogas

Renewable Energy for Rural Livelihoods (RERL)* 1996 - 2019 WB, UNDP Hydro, PEU, Institutional

support

Renewable Energy Project (REP) 2004 - 2010 EU SolarImproved Water Mills Support Programme (IWMSP) 2003 - 2010 SNV Water Mills

Climate & Carbon Program 2010 - 2012 SNV, DFID Carbon

National Rural Renewable Energy Programme (NRREP)** 2012 - 2017

Denmark, Norway, DFID, KfW, GIZ, ADB, WB, SNV, UNDP, UNCDF,

UNESCAP

Finance (Subsidy & Credit) Technical (hydro, solar, biomass, biogas), Cross cutting (GESI, Carbon, Monitoring, Institutional

Development), PEU* Previously “Rural Energy Development Programme (REDP)” till March 2011**Operational as single programme modality, activities from all programs/initiatives are incorporated/aligned {Scaling up Renewable Energy Program (SREP), South Asia Subregional Economic Cooperation (SASEC), RE-Source}


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Implementation Modality of Major Programs

• Single Program Modality

• Consolidation of best practices from earlier projects

• Energy Service Provider (ESCO Model) - CESP

• Community Based model and strengthening local governance

• Private Sector Development Approach

• Project led Model

ESAP (1999-2012)

REDP (1996-2011)

NRREP (2012-2017)

EU (REP) (2004-2012)

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National Rural & Renewable Energy Programme (NRREP)

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• Single Programme Modality under GoN Leadership • Starting date: 16 July 2012• Duration: 5 years• Budget: USD 171 Million• Support from multiple DPs

Three components:i. CREF (subsidy &

credit)ii. TS (technical, cross

cutting & logistics)iii. PEU


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NRREP PARTNERS/STAKEHOLDERS

AEPC/NRREP

MoPE MoF MoE MoFALD Ministries

Central Office

NPC

Core AEPC team (46)

NRREP Staff (55)

Consultants

PSC

DPsDANIDA Norway Germany UNDP WB ADB DFID

Regional & District

DEECCS (75 districts) RSCs (9) NSP (2) DSC (60)

Private SectorSolar

•71 (SHS/SSHS)•43 (ISPS/PVPS)•6 (SD/SC)•>3000 Technicians

Mini/Micro Hydro

•78 (Mini/Micro)•61 (Consulting Firms)•41 Kit Manufacturers & Local Partners

Biogas

•113 (Households)

Biomass

•32 (MICS)•>10,000(ICS Stove masters)

PEU

•BDS Providers->100

Financials & Other sector

1 Handling Bank &. 7 Partner Banks I/NGOs Suppliers RETS Research

Institutes

SNV UNCDF

KEY IMPLEMENTING PARTNERS


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Coverage/outreach of NRREPNational coverage thru 2 NSPs, 9 RSCs, 75 DDC/EECCS, 60

DSCs, CBOs/user groups & B/D/A network of pvt. sector

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AEPC GESI Objectives

• Improve living standard of rural women and men• Increase employment of women and men as well as

productivity• Reduce dependency on traditional energy• Attain sustainable development through integrating

the alternative energy with the socio-economic activities of women and men in the rural communities


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AEPC GESI Output

AEPC is recognized as an effective, efficient andGESI proactive institution for the promotion anddevelopment of the RE sector.

AEPC GESI Outcome

To provide RET services to unreached people in therural areas, including Disadvantaged Group (DAG),Poor, women and conflict victims.


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Product

ServiceInstitution

GESI friendly RET development.R&D on RET product and end use.

GESI responsive institutional and organizational development , strategic operational development (SOD), HR policy, program, plan and budget, MIS, M&E strategy, Framework and indicators.Capacity development of AEPC staff to influence and deliver GESI responsive RET initiatives. Decentralized RET services.

Increase access and control over the RET and credit/grant component to targeted groups: women, socially excluded and poor of remote areas.GESI responsive operational strategy and service delivery system, process and procedures.Participatory monitoring mechanism to ensure the effective service delivery system.Capacity development of service providers on GESI at all levels.

Equitable socio economic growth of women and men belonging to all social groups of remote areas by accelerating RET for generating employment and

income through enterprise creation and development.


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Policies and Strategies for Mainstreaming GESI through AEPC

• GESI mainstreaming plan• GESI Audit guideline• GESI toolbox• Social mobilization guideline • GESI Responsive Code of Conduct


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Policies and Strategies for Mainstreaming GESI through AEPC

Provision of Additional Subsidy ( based on Subsidy policy 2016 and SDM 2016) Provided to the Women-headed household with dependent children,

earthquake victim from earthquake affected districts, endangered indigenous community identified by GoN and Dalit.• NRs. 4000 for Mini/Micro hydro per household• Additional 10 percent of the subsidy amount for domestic biogas• NRs.1000 per metallic cooking stove• NRs. 4000 per solar home system• NRs. 4000 for wind energy per household• NRs. 10,000 for Solar wind hybrid system (to enterprises operated by

household)


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Approaches adopted for mainstreaming GESI in AEPC

• GESI Capacity Building of the stakeholders and partners at alllevel through different program like training, workshop,exposure visit etc.

• Working with likeminded and right holders organizations (likeNational Foundation for Development of IndigenousNationalities (NFDIN), Federation Indigenous of Nepal(FION) to access marginalized indigenous people

• Social mobilization to assess needs of targeted groups andenable their demand dynamics


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Approaches adopted for mainstreaming GESI in AEPC

• Create platform for GESI responsive RET knowledge building, sharing and learning

• Piloting action research adopting right based approach to reach poor women and men, and women belonging to janjati, dalit, madhesi, muslim and other backward communities (OBCs).

• Revising and devising from the lessons learned and up-scaling of the good practices.

• Coordinate and collaborate with local bodies, line agencies, social leaders and media


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Impact

Technical Support

CREF Productive End‐use

AEPC/NRREP/GESI


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Activities• Introduced Barefoot Engineering Approach to provide

vocational trainings (Three months L1 training) to women and people of disadvantage groups

• As a part of GESI mainstreaming activity, ICSs were installed in the houses (total 900 HHs were benefited) of Chepang and Dalit.

• Conducted trainings on various dimensions of GESI for the staff of AEPC and staff of RSCs

• Coordinated with MoFALD/LGCDP to sensitize about GESI responsive RET service to district planning officer, social development officer, GESI focal person, VDC secretaries and social mobilizer, etc


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Activities• Developed and implemented GESI responsive result-based

M&E framework• Prepared standard excel database system on beneficiaries

with sex and caste disaggregated data for reporting• Developed and disseminated of "Citizenship Charter" in all

75 districts• Income generative trainings conducted in RET catchment

areas targeting women and people of disadvantage groups• GESI responsive code of conduct developed and

disseminated to all the stakeholders• Conducted GESI audit in AEPC and in all 9 RSCs ( Regional

Service Centre)


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Achievement• Awareness created among the rural people • Technology access to the rural people• Positive impact on health and education• Access to the developmental activities and increased

economic independency through Income Generating Activities and End-use promotion

• Enhanced quality of life of the rural people


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• Low budget is the challenge to extend the service delivery mechanism

• Slow acceptance of GESI despite the continuous effort and struggle to integrate GESI into the programme at all levels of AEPC

• Service providers are reluctant for reporting with sex and caste disaggregated database of beneficiaries

• Reluctance in providing actual information on income by target group

Challenges


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Way Forward

• Institutionalize GESI into the AEPC by mainstreaming GESI responsive planning, budgeting, reporting and recording system

• Capacity enhancement of the duty bearers; AEPC, partners and stakeholders on GESI and its application into the RET services

• Knowledge management and sharing and learning through different means and modes

• Intervention at different levels: Advocacy and sensitization, Capacity building, Awareness program, Information dissemination, Social mobilization etc.

Way Forward


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Thank You!

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For further communication:Alternative Energy Promotion Centre

Khumaltar, LalitpurP.O. Box 14364, Kathmandu, Nepal

Tel. No.: 5539390, 5548468 E-mail: [email protected]

www.aepc.gov.np

Documents

An Overview of AEPC and Its Interventions · • VAT & tax exemption for RE systems/components ... I/NGOs Suppliers RETS Research Institutes ... Approaches adopted for mainstreaming