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Program of ActivitiesNepal Case Study- Improved Water Mills Program

Mr. Raju LaudariManager Climate and Carbon Unit

Alternative Energy Promotion Center

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Agenda

About AEPC

Renewable Energy projects and CDM projects in Nepal

Improved Water Mills project in Nepal

Technology of the project

Program Management and Implementation Structure

IWM CDM project details

Challenges in developing the PoAs

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Alternative Energy Promotion Center (AEPC)

Governments nodal agency for promotion of renewableenergy technology

to improve the peoples livelihoods

to protect the environment and

to promote the RET industries Semi-autonomous under Ministry of Environment

Supports GoN in policy and plan formulation, resourcemobilization, coordination, M& E and quality assurance

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Renewable Energy in Nepal

13 September 2011 4

Micro-Hydro (MH): Potential 100MW &

Progress 17 MW (0.17million HHs)

Domestic Biogas: Potential 1.1 M HHs &

Progress 0.24 M HHs

Improved Water Mill (IWM): Potential 25,000

Nos (1 M HHs) & Progress : 7000 Nos(0.25 M HHs)

Improved Cook Stove (ICS): Potential

2,500,000 HHs & Progress 500,000 HHs

Biofuel: Potential 1,100,000 tons &

Progress XXXXtons

Wind: Potential 3,000MW & Progress

only a few Pilot Projects

Institutional Solar System &Solar Water Pumping:Progress 200, 000 HHs

Solar Dryer& CookerProgress 3,000

HHs

Solar Home System (SHS): Potential 4.5kWh/m2/day & Progress 0.2 M HHs

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CDM Projects in Nepal

SN Project Name Status

1 Biogas Support Program Nepal PA 1(UNFCCC Ref. No. 0136)

Registered

2 Biogas Support Program Nepal PA 2(UNFCCC Ref. No. 0136)

Registered and CERissued on Aug 24, 2011

3 Nepal Micro Hydro Promotion(UNFCCC Ref. No. 3653)

Registered

4 Biogas Support Program Nepal PA 3 Final stage of validation

5 Biogas Support Program Nepal PA 4 Final stage of validation

6 Biogas Support Program Nepal PoA Final stage of validation

7 Promotion of Improved Water Mills Nepal Initial stage of validation

8 Promotion of Improved Cooking Stoves Nepal Initial stage of validation

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Improved Water Mills PoA CDM

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Baseline & Project

Baseline Case

Diesel to run the

mill

Project Case

Water to run the

millTWM does not meet the growing demand

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Technology of the Project

IWM is a modified version ofthe TWM which translates intoa higher agro-processing

capacity and possibility ofproviding a diverse range ofservices like hulling, oilexpelling, saw milling etc.

Higher efficiency than TWM

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IWM Program Management and

Implementation StructureAEPC - CME

MGREC

IWMP Central Unit

IWMP Regional Unit

Service Centers

Kit Manufacturers

Micro Finance Institutes

Ghatta Owners Associations (GOA)

IWM Owner

IWM Users

Rural Energy Fund

CRT/N

IWM Users

IWM Users

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Improved Water Mills Project Details (1)

Aims to discourage possible installation of dieselmills in the mid hills of Nepal.

Financial Mix: subsidy, equity, loan and CERrevenue

Program period: 4-5 years, commencing fromSept 2011.

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Improved Water Mills CDM Details (2)

Project being developed under the PoA approachwith each CPA not exceeding 5MW capacity

Applied Methodology: AMS I.B/version 10

Expected emission reductions :6.22tCO2/year/IWM

Additionality demonstrated using Guidelines fordemonstrating additionality of micro-scale project

activities

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Improved Water Mills CDM Details (3)

Host Country Approval on PIN has been receivedfor the project

Baseline study has been conducted and PoA DDand CPA DD are being finalized

DOE has been selected for the project

Validation to be initiated from the last week ofSeptember 2011

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Sustainable Development Impacts

At least 8000 IWM owners will increase their income from IWMby providing efficient services to rural households.

Some households will have access to electricity.

Employment generation (IWM operator, installer,

manufacturers, & so on) Reduce drudgery on hulling activities & waiting mainly of

women will be reduced.

Annually 38,000 T of CO2 emissions reduction for 10 years.

A number of women and people from socially excluded stratawill be capacitated through IWM training activities.

Etc.

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Challenges

Neither this type of CDM project or PoA have

got registered not in pipeline

1 project (irrigation) applied this methodology

was rejected

1 project (irrigation) applied this

methodology was withdrawn

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Challenges in developing the PoAs

Individual activities that are installed/implemented prior tothe start of the validation cannot be included in the PoA.

Additionality tool does not explicitly mention methods fordemonstration of the additionality at the PoA or CPA level

Poor response from DOE regarding the validation of thePoA

High transaction cost (DD, Validation & verification)

High up-front cost for developing the PoA

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Thank you!!

Mr. Raju Laudari

Manager - Climate and Carbon UnitAlternative Energy Promotion CenterKhumaltar, Lalitpur, Nepal

Tel. no.: +977-1-5539 237, 5539 390Email: raju.laudari@aepc.gov.np

Website: http://www.aepc.gov.np

mailto:raju.laudari@aepc.gov.nphttp://www.aepc.gov.np/http://www.aepc.gov.np/mailto:raju.laudari@aepc.gov.np