Implementation of a sensible and consistent subsidy policy combined with the development of a liberalized policy and procedures for private sector participation triggered the entry of the private sector in the construction biogas plants.
The quality control aspect is a well-steered programme that has protected the interest of the plant owners and hence elevated the image of the programme to be credible position. Studies have shown that the EIRR is higher than the FIRR, which justifies continuation of the existing subsidy. The impact of the subsidy on increasing the number of plant has been remarkable, but the plan is to phase out subsidy to all sectors. On the financing front, there has been a trend on the proportion of equities-financed plants, however institutionally, the biogas sub-sector cannot be considered as a strong one. Leaving the BSP aside, it remains with three organisations, i.e. AEPC, AEPDF and the NBPG, which have not been able to demonstrate desirable capacity.
The study concludes that the BSP target of installing up to 25,000 plants a year remains doubtful. In order to achieve the achievable, there needs to be some improvement in the existing institutional structure and policy. The study ends with recommendations to Programme for Institutional Capacity Building of the AEPC, Initiate R&D and Introduce Flexibility in the Plant Model, Announce Timeframe for Subsidy, Develop Village Level Masons and Suppliers of Appliances, and Concentrate the Plants so that Service become Cheaper.
The study aims to investigate women’s access to and involvement in biogas and its impact on their lives, and will identify existing constraints which inhibit fuller exploitation of the potentials of RET from gender perspective.
It was found that 17 out of 24 sample has have attached latrine with biogas plant and a significant proportion of joint decision of both men and women has been reported in latrine attachment.
Male played the leading role in management of all phases and the women’s role was more supportive. The program should endeavour maximum participation of women at all stages of management. Unlike at the stage of decision-making, it is interesting that many women are responsible for the operation of biogas. Women have definitely benefited more compared to men. In total women were found to save 66 minutes per day. They have saved significant time in collecting fuel wood, cooking food and washing cooking vessels. Like men counterparts they require more time mixing slurry.
Focus Group Discussion (FGD) revealed that women users perceived easy cooking, smokeless environment and reduced daily workload main benefits. Saving of firewood collection time, avoid noise of kerosene stove, positive impact in health of family members and clean and healthy household environment were other frequently quoted benefits. Biogas users women perceived biogas technology still expensive for general people, as of limited use because it is only used for cooking, and lacks adequate training for maintenance and repair as the main demerits or constraints of biogas installation.
The study aimed to investigate and assess women’s access to and involvement in the biogas and its impact on their lives. The study aimed to identify existing constraints which inhibit fuller exploitation of the potentials of RET from gender perspective. A total 27 biogas users were interviewed from Sanischare, Arjundhara, Charpane, Chandragadhi, Gauradaha and Maharani VDCs.
Although women have significant role in installation of the biogas plant and in taking care of it, men have the leading role and women work as their supporter in the decision making process of biogas installation in general. In order to identify needs of women and deliver them the benefits of the technology, the programme should endeavour maximum participation of women at all stages of management.
Women have definitely benefited more as compared to men. In total women were found to save 49 minutes of time. Women have saved significant time in cooking food, washing cooking vessels and collecting fuel wood in the order of importance. Like men counterparts they require more time mixing slurry. Focus Group Discussion (FGD) revealed that women users perceived easy cooking, smokeless environment and reduced daily workload as the main benefits. Saving of firewood, saving of kerosene, positive impact in health of family members and clean and healthy household environment were other frequently quoted benefits of biogas.
The study recommends that the subsidy amount should not be reduced. Secondly, the users require more focused training in repair and maintenance and thirdly, an awareness raising program among people should be started.
After the successful training for the trainers of Junior Biogas Technicians (JBT), with the Institute of Engineering (IOE), Pokhara, the Centre of Energy Studies (CES) of the Institute of Engineering (IOE), Tribhuwan University felt the need to conduct the advanced biogas training exclusively for the engineers of IOE on similar line. In this backdrop, a Contract Agreement was officially signed between SNV/BSP and CES/IOE in September 2001 to conduct a series of training courses (between September 2000 and January 2001) at CES/IOE.
Originally, the first-hand materials for this training course were derived from FAO/CMS publications named “Biogas Technology: A Training Manual for Extension, 1966” and ʺTraining Manual in Biogas Technology for the Trainers of Junior Biogas Techniciansʺ published by SNV/BSP (17-20 May 2000) and recent development in this field. Soon after the first training, the handouts were revised and modified by the team of experts/trainers to improve its content. This was repeated after the second and third training to produce the final document in the form of Advanced Course in Biogas Technology in its present shape.
The trainees for this course consisted of professionals working at the Institute of Engineering of the Tribhuwan University with an engineering background. In agreement with SNV/BSP and CES/IOE, Dr. Amrit B. Karki was appointed as Programme Coordinator and in total, 13 experienced professionals have contributed as instructors in carrying out the training course.
The objective is evaluating the proposed subsidy scheme for biogas plants and to recommend a scheme to be applied for 1999/2000 and onwards.
Two options – reduce the subsidy amount by NRs. 1,000 per plant across the board, and propose new subsidy rates according to geographical division and the size of the plants – have been evaluated to measure the efficiency of plants with these options. The internal rate of return (IRR) was used as method. This study shows a high IRR in Nepal, both financial and economic, even with a decline on the on-going subsidy rates by a flat amount of NRs. 1,000 per plant. The IRR of a plant is very high when we include the increased NPK in the slurry. The rates of return with the proposed subsidy rates and the inclusion of increased nutrients available in biogas slurry are always higher than 16 percent. Currently the Agricultural Development Bank (ADB/N), Nepal Bank Limited (NBL) and Rastriya Banijya Bank (RBB) – are involved in providing loans to the biogas sector.
There seem problems with the current subsidy channelling procedure, because a farmer (plant owner) can take double subsidy with the same biogas plant. The BSP Phase III Implementation Document states that the subsidy has to be reduced by NRs. 1,000 to be applied for the F/Y 1999/2000 and onwards. This study does not detect any problems with that proposal. Besides, this study has also considered another option of new subsidy rates according to geographical division
and size of plants.
This study was conceived as an integrated environment impact assessment (IEIA) of BSP phase III (BSP III). The objective was to quantify the impacts of BSP III as a result of the installation and use of biogas for cooking and for lighting to a certain extent. Altogether 1,200 respondents comprising of 600 biogas households (HHs) and 600 non-biogas HHs were investigated.
The impact on energy use was evident. The consumption of kerosene has been reduced, since the traditional and the kerosene stoves were substituted to a great extent by biogas stoves.
The impact on the health situation was found overall positive. 85% biogas HHs perceived a remarkable decrease in smoke. None of biogas HHs reported an increase in the burned cases for the last three years. However, 70% of biogas HHs reported an increase in mosquito breeding as a result of biogas installation.
The Impact on Agriculture and Sustainable Land Use was positive since the use of chemical fertilizer was reduced, an increase in yield was obtained, and the collection of large branches and wood declined.
The impact of climate change is positive, since the carbon emission saved from the reduction of the use of fuel wood, agricultural residues as fuel, dung as fuel, kerosene.
The impact on socio-economic conditions was positive as well, as it appeared that biogas HHs were comparatively well off than non-biogas HHs so far as the possession of improved type of houses, tv, and cattle, buffalo and goats/sheep are concerned.
This study aims at analysing slurry-compost samples of toilet attached biogas plants on the presence of parasites and bacteria, which could pose a health risk while handling the compost.
Out of the 22 new locations from Chitwan and Kavre districts, 6 slurry samples (27%) and four compost samples (18%) were detected for the presence of some kind of parasites. As the parasites present in the compost were different from those in slurry, it might be due to the water logging of the compost pit during rainy season. According to the result of the test, the parasites detected in some fresh slurry were: Larvae of Strongyloides, cyst of Entamoeba histolytica, ova of Ascaris lumbricoides, ova of Trichuris trichura, motile protozoal parasites, Trophozoides of Giardia lamblia. Similarly, parasites detected in compost sample were: Larvae of Strongyloides and ova of Ascaris lumbricoides.
None of the pathogenic organisms were isolated from all samples of slurry and compost in bacteriological tests performed. No direct relationship was obtained with biogas plant size and number of persons using toilet in contaminating the slurry. It was also observed that the parasites containing in the feeding slurry were not well destroyed during retention period in digested chamber in some cases. However, it might have destroyed or reduced some parasites/pathogens after digestion. A study of parasites/pathogens present on faeces at the time of feeding and in fresh slurry after digestion could provide some information for better understanding of the process.
This report assesses the advance subsidy payment in Nepal, its progress, implications and future improvements required. The study, based on analysis of field visits, showed that the advance subsidy payment initiated by Biogas Support Programme Nepal (BSP-Nepal) has indeed greatly supported companies in their working capital management.
An in-depth analysis indicated that companies receiving advance subsidy payments had the lowest amount of additional working capital requirements, compared to those that have not received the subsidy. This advance subsidy was seen as an incentive for serious companies who maintain a financial discipline. Overall, the working capital support of BSP has shown to positively impact biogas companies, which is why it was strongly recommended that the advance subsidy continued. Further, the little credit provided by the Nepal Biogas Promotion Group (NBPG) also had positive implications, and it was recommended for credit to be initiated with wider scope of support. Other recommendations to sustain the advance subsidy payment touched upon the categorizing of biogas companies to operate only in designated areas, etc. BSP-Nepal needed to also improve the subsidy claim processing as the faster the subsidy was released, the better it was for the working capital of companies.
Working capital shortage due to management deficiency of the companies themselves appeared to be a challenging issue that can be alleviated by designing proper costing and financial management capacity. Further recommendations and extensive analysis of plants costs, working capital support, workshop impact analyses and cash converting cycles (CCC) can be found in the report.
This report assesses the effectiveness of an increase in the present general subsidy (NRP1000) and additional subsidy (NRP 1500,2500,3500) as a way to benefit poorer households.
The government of Nepal increased the subsidy without consulting with donors which caused major dissatisfaction as donors were actually aiming for a decrease in order to achieve a sustainable market driven biogas system.
The household survey conducted indicated important findings in the areas of the rationale of the increase of general subsidy (e.g. sharp increase in plant construction costs called for immediate compensation), as well as its impact (e.g. withdrawal of general subsidy was said to definitely limit
the expansion of biogas programme in poor areas), regarding the rationale and effectiveness of the additional subsidy for the poor (e.g. the subsidy has had a tremendous positive impact on increasing the access of poor households to biogas within only one year, while enjoying all its benefits), the scaling up of biogas programme among the poor (e.g. the research found out that donors’ role is vital in the whole process and that their support for the increased subsidies should be gained at every cost), and regarding rate and delivery mechanism of subsidy and credit (e.g. it was found that the current rate of general and additional subsidies is fair and adequate as poor people have been able to own a plant with access to credit). Recommendations as to what future steps need to be taken on basis of these important findings are available in the report.
His Majesty's Government of Nepal (HMG/N) established Alternate Energy Promotion Centre (APEC) on November 3, 1997 under the umbrella of the Ministry of Science and Technology (MOST).
The major activities of the consultations are enlisted below:
• Organisation of workshop meetings;
• Discussion about the government policies and guidelines;
• Assessment of capabilities of the manufacturers;
• Preparation of the plan, program, policy and budget for next fiscal year as well as 9th Five Year Plan;
• Development of policy in biogas, small and micro-hydro and solar energy;
• Comments on the program and budget of BSP/SNV-N;
• Development of the Terms of References for Local Park Project;
• Meeting with Royal Danish Embassy for grant proposal;
• Meeting with KfW delegates;
• Meeting with various other agencies;
• Assisting in programme and budget discussion;
• Comments on Institutional Strengthening in Rural Energy Planning and Implementation and draft final report prepared for WECS.
The major outputs of the consultation are extensively descried in the report. It is recommended that:
• AEPC should have its own regular staff. There should be provision to train the manpower;
• Need assessment of AEPC should be made;
• AEPC needs technical assistance in area of alternate energy;
• Additional financial institutes should be approached for loan and subsidy flow to the beneficiaries.
AEPC should support biogas companies to carry out promotional activity in the less developed districts possessing large number of cattle (e.g. Dhanusa, Saptari, Siraha etc.).
This Biogas Audit report is Volume III of the in total three volumes that present the results of in depth analyses of the Nepalese Biogas Programme. Volume III consists of the Attachment package which contains cross reference sources with more detailed information and a photo-documentation.
Overview of the main titles of the attachments:
This Biogas Audit report is Volume II of the in total three volumes that present the results of in depth analyses of the Nepalese Biogas Programme. Volume II consists of four different parts.
This Biogas Audit report is Volume I of the in total three volumes that present the results of in depth analyses of the Nepalese Biogas Programme. Volume I comprises a summary of the findings and an action plan.
The report focuses on the results of the biogas system implementation work divided in:
It is planned in the framework of the Biogas Support Programme (BSP) to provide (in fiscal year 1994/95) a Biogas Extension Orientation Training of a three-day duration to 100 staff-bank members and (I)NGOs. The objectives are to train the participants on all aspects relevant to the biogas programme in Nepal. The participants selection group decided to send for nominations to 41 (I)NGOs. 10 and 3 participants were sent from Nepal Bank Limited and Rastriya Banijya Bank,
respectively. 42 participants were selected from Agricultural Development Bank of Nepal (ADB/N).
The training methods adopted were: lecture, question/answer session, creative group discussions, filed observation and audio-visual presentation. The main recommendations provided are:
• There should be a coordinator among extension agencies: the Banks, the Companies and the NGOs preferably at district level
• A strong publicity and information dissemination campaign should be launched at the village level.
• The importance and use of biomass and biogas should be massively taken up at the farmers' level by organising their groups and associations. It should be also included in their curriculum at the secondary and higher educational levels.
• BSP should reconsider the issue of plant guarantee system. BSP should define the area of operations of the companies and the Banks in consultations with their district level coordination committee.
• NGOs should play the role of facilitator and catalytic agents in biogas programme.
Many participants expressed that the present approach of extension is an individual user contact method, which is costly and managerially inefficient for the companies and the banks.
The overall aim of the proposed training programme was to provide extension training on all aspects relevant to biogas promotion in Nepal to 150 extension workers of banks, (I)NGOs and biogas companies involved in biogas related programmes. To execute the proposed programmes, an agreement was signed between BSP and DevPart on October 20, 1995 and this report is the outcome of those training programmes. The main training methods used were lecture, case study presentation/discussion, brainstorming, film show, field observation, question-answer and creative group discussions.
The training programmes were conducted for 3 days in each venue. Pre-training activities included formulation of aim, objectives and expected result; training needs assessment; study of the background of participants; planning of events; hand-outs preparation; time planning; selection of resource persons; arrangement of training aids; and other logistic
issues. In training operational activities included all events that took place during the training like lecture sessions, film, group discussion, suggestions and forming conclusions. Post-training
activities included documentation of events, process, and review of learning and questions that emerged.
It has been observed that this ʺBiogas Extension Orientation Training – 1995/1996ʺ has become highly effective and beneficial in defining the potential roles of different actors is this sector and, thereby, in formulating of workable strategy for the future. For the rapid expansion of biogas technology in the country, the outcomes of these trainings are expected to be highly beneficial.
Several training programmes and workshops of national, regional and district levels have been conducted with support from SNV/BSP-Nepal as well as from Food and Agriculture Organisation of the United Nations (FAO). Under the framework of SNV/BSP, Consolidated Management Services Nepal (CMS) conducted Biogas Extension Training 1996-1997 in six districts of the country in the months of November and December 1996.
Altogether a total of 236 trainees selected from the Ministry of Agriculture (MOA), and Ministry of Forest and Soil Conservation (MOFSC) and Alternative Energy Promotion Centre (AEPC) of the Ministry of Science and Technology (MOST) attended the training course held in ten districts (see Introduction) of the country. With regards to be composition of 236 participants, there were 141 (59.7%) trainees from the MOA, 92 (39.0%) from MOFSC and 3 (1.3%) from AEPC.
Biogas Promotion Training sponsored by SNV/BSP, and passed onto the middle level workers of the three relevant Ministries of HMG/N, proved as highly useful in upgrading the knowledge of participants in the subjects of biogas technology. The negative points of the training were the shortage of time, the number of participants from MOFSC (20% less than MOA), and the limited time to perform the field visit for observation of biogas plants. The positive points of the training included the stationary distributed to the participants, the training materials and teaching aids, the training topics, the video films and field visit and the new model of the evaluation form.
Especially, the process aimed at:
• Enhancing team spirit and leadership capacity of the BSP/SNV staff;
• Enhancing awareness o PRA and marketing concepts and tools;
• Developing a model for biogas market appraisal in a district; and
• Carrying out biogas market appraisal in Doti district.
The BSP staff formed five groups, each group representing different professional backgrounds within the organisation. A tentative model of biogas market appraisal was also discussed. Then checklists for biogas market appraisal at the district and village levels were developed by each group and finalised in the plenary. The groups also discussed and finalised the PRA tools. Each of the groups carried out market appraisal based on the checklist developed and finalised.
The fieldwork was divided into two parts. The first part consisted of gathering relevant information on the perspective, prospects and problems of biogas in the district from different district-based agencies. The next part of the fieldwork consisted of appraisals at village level. Five villages within an hour's walk from Dipayal were identified and each group was assigned a village for the appraisal.
The groups then visited the villages, carried out semi-structured interviews (in focus groups, in large groups and with individuals including key informants), prepared village resource maps, carried out transect walks and thus appraised the perspectives, prospects and problems of biogas in the village. Activities aimed at recreation as well as enhancing team spirit of the staff were also organised for half a day after completion of the fieldwork in Doti.
The objectives of the study were to estimate the private and social cost-benefit of biogas plants and measure the returns in terms of Internal Rate of Return (IRR) and Economic Rate of Return (EIRR), respectively, to document the attitude of users and non-users regarding the usefulness of biogas, to identify problems encountered by the concerned agencies in promoting alternative sources of energy, to examine the problems faced by the users and to document the efforts of various agencies in promoting alternative sources of energy and analyse the adequacy of these efforts. Further, the report draws policy implications regarding promotion of biogas in Nepal, estimates and provides subjective judgement on the potential volume of biogas and its overall impact on increasing plant nutrients; and explores the possibility of promoting private biogas constructors.
It concludes that in the absence of subsidy most plants become unprofitable and unattractive to potential owners. The 6 m3 and 35 m3 plus plants are neither privately nor socially profitable and should not be promoted. A reasonable level of subsidy is thought to be 25 percent. The total capacity could be 56,000 plants. From this the annual saving in firewood would be approximately 198,022 metric tons and of kerosene 1,756 kiloliters plus an increase in plant nitrogen of 4,195 metric tons together value at Rs. 196 million.
From these findings, it is apparent that the potential for biogas as an alternative source of energy is tremendous and it should be promoted through well articulated policies and procedures.
The objective of this overview is to make the readers aware of the frame- conditions of the project area, the complexity of the problem in three districts in the promotion of bio-gas program and to make suitable policy decisions accordingly. It is an attempt to show the status and correlation among three districts in terms of supply and demand scenario of forest products, timber and fuelwood consumption, and the resultant effects due to the lack of promotion of bio-gas or measures similar to it.
The real cost of bio-gas installation was also analyzed to know the real cost of bio-gas installation to be paid by users in the three districts of the project area. This could become a good basis to recommend introducing suitable subsidy or incentive measures for Siraha and Saptari by the concerned agencies.
In relation to the promotion of bio-gas technology, we observe that not only economic but also cultural, social and promotional factors play an important role. The bio-gas technology is directly concerned in the conservation of forest resources, particularly fuel wood. Therefore, seriousness in
the promotion of this technology in Siraha and Saptari needs to shown as early as possible in order not to let the rapidly degrading forest of this area further degrade.
In order to efficiently extend the bio-gas program in the districts of Siraha and Saptari, two-fold extension strategies are recommended: the increase of promotional activities and the reduction of plant installation cost.
Several training programmes and workshops of national, regional and district levels, have been conducted with support from SNV/BSP-Nepal, as well as from the Food and Agriculture
Organisation of the United Nations (FAO). Under the framework of SNV/BSP, Consolidated Management Services Nepal (CMS) conducted Biogas Extension Training 1996-1997 in six districts of the country in the months of November and December 1996.
Altogether a total of 236 trainees selected from the Ministry of Agriculture (MOA), and Ministry of Forest and Soil Conservation (MOFSC) and Alternative Energy Promotion Centre (AEPC) of the Ministry of Science and Technology (MOST), attended the training course held in ten districts (see
Introduction) of the country. With regards to the composition of the 236 participants, there were 141 (59.7%) trainees from the MOA, 92 (39.0%) from MOFSC and 3 from (1.3%) by AEPC.
Biogas Promotion Training sponsored by SNV/BSP and imparted to the middle level workers of the three relevant Ministries of HMG/N proved highly useful in upgrading the knowledge of participants in the subjects of biogas technology. The negative points of the training were the shortage of time,
the number of participants from MOFSC was about 20 percent less than MOA, and the insufficient amount of time to do the field visit to observe biogas plants. The positive points of the training were the stationary distributed to the participants, the training materials and teaching aids, the training topics, the video films and field visit and the new model of the evaluation form.