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Renewable energy perspective plan of nepal 200-2020 an ... - SNV

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<strong>SNV</strong>/Nepal. The CSD is providing assist<strong>an</strong>ce to install micro hydro projects on<br />

turnkey basis in Jumla district under community based economic development<br />

projects sponsored by the CECI.<br />

The UNCDF <strong>an</strong>d the <strong>SNV</strong>/N have provided assist<strong>an</strong>ce for the promotion <strong>of</strong> biogas in<br />

the form <strong>of</strong> subsidy fund <strong>an</strong>d training activities. The KfW has provided fin<strong>an</strong>ce for<br />

third phase <strong>of</strong> BSP.<br />

Moreover, the ADB/M<strong>an</strong>ila fin<strong>an</strong>ced micro credit for Rural Women Project through<br />

Women Development Division which could play a major role in fin<strong>an</strong>cing rural<br />

<strong>energy</strong> projects for women's credit group.<br />

The UNICEF. Nepal Australia Forestry Project. Save the Children US. CARE/Nepal.<br />

UMN, FAO, GTZ, SDC, UNDP, IFAD are among the major donor agencies involved<br />

in various aspects <strong>of</strong> ICS programme <strong>an</strong>d its implementation undertaken by<br />

government <strong>an</strong>d non-government agencies.<br />

4. Private Sector Participation<br />

The Agricultural Development B<strong>an</strong>k/Nepal has not only provided lo<strong>an</strong> facilities but<br />

also ch<strong>an</strong>nelizes subsidy. The ADB/N assures local entrepreneurs necessary capital<br />

for investment through the lo<strong>an</strong> <strong>an</strong>d subsidy programme. On <strong>an</strong> average , 80 percent <strong>of</strong><br />

the total cost <strong>of</strong> the project is fin<strong>an</strong>ced in the form <strong>of</strong> lo<strong>an</strong> payable over 5-7 years. The<br />

rest <strong>of</strong> the cost is contributed by the entrepreneur in kind or cash. The provision <strong>of</strong><br />

capital subsidy minimizes the entrepreneurs' contribution, which helps attract private<br />

investment.<br />

Microhydro: DCS <strong>an</strong>d BVS were instrumental in building local m<strong>an</strong>ufacturing<br />

capacity in the initial stage. Foreign collaboration stressing efficiency <strong>an</strong>d cost led to<br />

the innovation <strong>of</strong> low cost MPPU <strong>an</strong>d KM1 was instrumental in building these<br />

MPPU. Later on the m<strong>an</strong>ufacturers started developing add-on <strong>an</strong>d st<strong>an</strong>d-alone<br />

electrification units to be locally m<strong>an</strong>ufactured at low cost. Peltric, <strong>an</strong> integrated<br />

turbine -alternator portable unit <strong>of</strong> capacity r<strong>an</strong>ging from 1-5 kW has been recently<br />

developed by K.MI <strong>an</strong>d becoming popular for its ease in installation <strong>an</strong>d operation.<br />

Donor agencies have played vital role in helping set up micro hydropower<br />

m<strong>an</strong>ufacturing comp<strong>an</strong>ies. BYS was set up under assist<strong>an</strong>ce from Swiss Technical<br />

Assist<strong>an</strong>ce <strong>an</strong>d DCS under assist<strong>an</strong>ce from UMN.<br />

The efforts <strong>of</strong> these org<strong>an</strong>izations further contributed to the establishment <strong>of</strong> other<br />

m<strong>an</strong>ufacturers in Kathm<strong>an</strong>du <strong>an</strong>d Butwal. Most <strong>of</strong> the m<strong>an</strong>ufacturers undertake<br />

microhydro m<strong>an</strong>ufacturing along with other activities like fabrication <strong>of</strong> various steel<br />

structures as the dem<strong>an</strong>d or turbine alone is insufficient to keep org<strong>an</strong>ization going.<br />

Biogas: The Biogas & Agricultural Equipment Development (P.) Ltd. is the first<br />

biogas comp<strong>an</strong>y setup as a joint venture comp<strong>an</strong>y <strong>of</strong> the ADB/N. the UMN <strong>an</strong>d the<br />

Nepal Fuel Corporation (Now. the Timber Corporation <strong>of</strong> Nepal (TCN)). It undertook<br />

leading role in the promotion as well as research activities in the biogas technology.<br />

Besides biogas, it undertakes development & dissemination <strong>of</strong> rower-pump, treadle<br />

pump <strong>an</strong>d solar water heater.

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