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Energy Efficiency Center (EEC)Component 3
Nepal Energy Efficiency Project
Dr. Uttam KunwarEnergy & Environment Expert =FNCCI
Project Manager -EECFederation of Nepalese Chambers of Commerce and
Industry (FNCCI)
Industrial Energy Consumption by Fuel Type 2008-09
Coal 58%
Electricity23%
Agri residue 10%
Fuelwood 5%
HSDiesel 2%Other Petroleum
2%
Total Final Energy Consumption 13.4 MGJ
Historical Background
�EE Intervention in Nepali industries:
�World bank: Energy Efficiency Project-1993-98
�UNIDO : 5 pilot industrial sector 1993-97�ESPS-DANIDA: 1999-2005
�FINIDA: Eastern Development Regions
�2000 -2011 Phase I and II, Phase – III under preparation.
Saving opportunities in Nepalese Industries
As Identified under ESPS programme:
Number of industries participated: 360
� Large:13%� Medium and small: 87%
� Identified Energy saving potential:
� Electrical ~ 15%� Thermal ~30%
Nepal Energy Efficiency Programme
Government of Nepal and Government of Germany Joint Collaboration Programme
Formulation of NEEPNEEP:
� Component 1: Formulation of EE policy � Component 2:
�Component 2 (a): Labeling of electrical appliances
�Component 2 (b): Promotion of ICS
�Component 3: Energy Efficiency Center (EEC) – FNCCI
Institutional Arrangement
Energy Efficiency Centre Coordination Committee chaired by FNCCI with representative from various organization will be formed for efficient implementation of business plan & performance monitoring of EEC.
EEC – Coordination Committee
CNI
FNCCI
NBAHAN
Mo Industry
Mo Environment
WECS
…….
FNCSI
GTZ/NEEP
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EEC Operation Plan Work Package - 1 Work Package - 2 Work Package -2
Output 1:� EE established
� Data base on energy use
� Knowledge management center
� Energy audit services
� Networking with regional organization
Output 2:� Auditor training
� Energy audit report & Manual
� Accreditation of training
Output 3 :� Quality control of
report & Capacity development of banks
� Capacity building of DCCI
� Promotional services to banks, industry and govt.
� Support to govtin EE policy formulation
Modality for Functional Sustainability of EEC/FNCCI
Proposed strategy:
�EEC will function as autonomous activity based Centre�under the ownership of FNCCI, DCCI, Industries and industrial associations
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Strategy for Functional Sustainability of EEC/FNCCI
Proposed working Modality:
�Establishment of Energy Efficiency cell at district level chambers for smooth coordination, implementation and monitoring EE Services to industries
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Financial Sustainability
�In the long run EEC will generates revenues to support its services. Possible sources are:
� Energy audit training & EE Audit will be fee based� Fee from EE performance certificate to industry for loan
purpose� Energy related advisory services to industries.
�Diversify funding: . NORAD, UNDP, DFID, DANIDA etc.
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Strategy to Generate Replicate Effect of EEC Inputs
Establish Pilot demonstration project: Feasible High energy efficient options will be identified for each energy intensive industrial sector (i.e. rolling mill, food, pulp & paper, metal industry, soap & Chemical, Cement, cold storage and brick.) for implementation.
Funding mechanism EE implementation:
• Provision of soft loan
Kathmandu,13.93%
Bhaktapur,3.84%
Lalitpur,5.47%
Kanchanpur,2.89%
Morang,8.46%
Jhapa,3.98%Parsa,6.36%
Rupandehi,6.33%
Sunsari,6.28%
Bara,5.41%
Kaski,4.12%
Kailali,3.31%
Chitwan,2.89%
Banke,2.72%
Nawalparasi,2.13%
Dang,1.51%
Kapilbastu,1.49%Makwanpur,1.60%
Saptari,1.74%
Dhanusha,1.93%
Main manufacturing industry distribution in the country
100 % = 3446 Industry Establishments
Sunsari,7.37%
Parsa,7.76%
Rupandehi,7.21%
Bara,6.59%
Morang,6.15%
Main energy consuming districts
Distribution of:- Clay & Ceramic Sector- Cement, Lime & Plaster, Concrete Sector- Food & Beverage Sector- Structural Metal Products Sector- Textile & Apparels Sector
15100 % = Number of establishments of main energy consuming sectors