Publications

Nepal Biogas Support Program is a successful model of development cooperation, technological innovation, financial engineering and market development that have helped address some of the social, economic, energy and environmental needs of the rural areas. Within the three phases, the BSP has successfully constructed 111,395 biogas systems and it has helped open the market for the production
and sale of biogas systems.

An important feature of the BSP has been its innovative financial engineering and judicious application of consumer subsidies to help develop the market for biogas systems. The program has also strengthened the institutional support for the development of the biogas market. Biogas systems provide multiple benefits at the household, local, national and World level. The key benefits are related to gender, environment, health and institutional strengthening. An economic analysis of the entire BSP I, II & III results in an estimated EIRR of 35 percent when only the benefits of fuel wood and kerosene savings are accounted for. The acceleration of biogas dissemination in Nepal will face a number of challenges such as
developing a viable business plan, raising revenues to finance the management operations of the BSP, and seeking alternatives for subsidy support to ensure affordability and quality control.

In conclusion, the BSP has been successful and beneficial. It has successfully commercialised and increased the use of an indigenous renewable and sustainable energy resource. The SNV/BSP has positively affected the lives of the poor and especially women and children in the rural areas.

The publication describes how a shift from a more traditional ‘sustainable forest management’ approach (with a key role for central government) to a ‘sector governance’ approach oriented towards the inclusion of all relevant actors in the sector (government, non-government, community groups and private sector) led to a better performance of the programme.