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.
The objective is to assess the Renewable Energy Technology (RET) development from the perspective of income generating activities and to investigates the role of RET in enhancing employment and income generating activities in the Dhading district of Nepal. Although this study includes the findings on four important components of RET- Biogas, Micro HydroPower, Solar Home System and Ghatta, only relevant information on biogas has been highlighted in this abstract.
The study describes the characteristics of the RET user; in total biogas stoves were used 4.0 hours in a day. Not a single household used biogas for lighting purpose. Paddy, wheat and maize are the main crops produced by the farmers in the area. The interviewed RET user hhs produced on average 1.739, 0.084 and 0.478 mt of paddy, wheat and maize respectively. If the RET user hhs sold an average of 0.405 mt of paddy and 0.098 mt of maize, none of them sold wheat. The RET user hhs also produced and sold crops like millet, mustard and potato.
The biogas user hhs main income generating activities were agricultural based like vegetable, butter (Gheeu) and local wine (Rakshi) production. Fertiliser required for vegetable production is being substituted by slurry produced from biogas. On an average each hh produces 180 kg of vegetable and the estimated revenue from its sales is Rs. 1,620. Some of the feasible incomes generating activities identified are vegetable production, livestock products, poultry farming and agro-processing, which require substantial amounts of labour and energy inputs.
The objective was to define effective demand for biogas installations and to know the socioeconomic variables that influence the potential demand for biogas plants and an effective promotional and marketing strategy. Of the total 800 households that were interviewed, 335 represented semi-urban and 67 percent rural VDCs. The proportions of households installing biogas plants increased with the increase in the amount of land and there was positive relationship between size of the cultivated land and size of the plants installed.
Majority of the large farmers (92%) and medium farmers (65%) were from the Terai belt. Most of medium and small farmers installing plants were from rural areas and approximately 50% had electricity facility. About 72 percent had taken loans from banks and 59.7 percent received loans
by the co-operation of GGC. Most of the loans were repaid back. Among households with plants, 8 percent had received various kinds of support from the local NGOs. Of them 50 percent got some financial support. The manpower status of the surveyed biogas companies seemed inadequate, as well as the after-sale-services. Further, the promotional strategies adopted by companies were inadequate.
Of the total 526 households who knew about biogas, 59.9% were willing to install plants. Not all were aware who to contact for plant installation and the cost of it. Radio was the source of information to the largest proportion of the respondents. Both illiterate and those having many years of schooling were almost equally aware of the biogas technology.
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 article describes the biogas activities in Asia by highlighting the success stories of China, India, and Nepal. Further, the article describes the scaling up of the Asia Biogas Programme. Vietnam is highlighted and the National Biogas and Manure Programme in Nepal is described, as well as the Biodigester Support Programme in Cambodia. Further, the article continues with CDM as a financing instrument.
The report concludes that it is most unfortunate that the reference to projects that replace nonrenewable biomass has been removed from the small-scale CDM methodologies. It is of hope that alternative methods for calculating emission reductions for small-scale project activities that propose the switch from non-renewable to renewable biomass will become available soon.
The Alternative Energy Promotion Centre (AEPC) is the key agency involved in channelling credit fund to household level through different local institutions since 2001. With almost 10 years of AEPC’s involvement it was realised by different stakeholders that now the time has come for review of the credit component for way forward to make the credit operation more systematic and sustainable. This assignment was therefore undertaken with that principal objective.
By institution type, majority (89%) belonged to cooperative sector while the remaining were from banking and NGO (licensed NGO MFIs) sectors. Microfinance banks and NGO MFIs contributed to 31 per cent of the total number of plants financed, while 67 per cent were financed by cooperatives.
The key recommendations from the study are to disburse already approved loans by AEPC to its partner institutions; focus on delinquency management and channel loans through licensed institutions like microfinance banks and financial intermediary NGOs to reach more number of poor households and also to cover hilly areas. Mobilising key players in the microfinance arena, like microfinance development banks and financial intermediary NGOs would certainly contribute to enhance accessibility of poor community to renewable energy technologies. In addition, provision of capacity building support to partner institutions as complementary input to credit facility is also needed. Mobilisation of some potential biogas companies for financing through vendor financing or agent model would help provide credit facility to more number of low penetrating districts.
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.).
The book contains valuable information on different aspects of biogas technology in Nepal, including a detail account of the historical background of its development.
The book contains 21 chapters and is divided in two parts. The first part deals with theoretical aspects of biogas technology, while the second concentrates on biogas development aspects particularly in the context of Nepal. Based upon the research works carried out in Nepal and elsewhere, the authors have made an attempt to include as much information as possible in this book. Theoretical, as well as practical information has been embedded so as to acquaint the readers with latest development in biogas technology. However, biogas technology being so vast subject, the information provided in this book is not claimed to be exhaustive.
The Editorial Board is of the opinion that this book will be useful not only to the national and international institutions and/or professionals concerned with the promotion and development of biogas technology in Nepal but also to those who want to carry out R & D activities in the field of biogas technology. Furthermore, the book can serve as a text and/or reference book to the Renewable Energy Courses offered by the colleges or universities in Nepal and elsewhere.
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.