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Program of Activities

Nepal Case Study- Improved Water Mills Program

Mr. Raju Laudari Manager Climate and Carbon Unit Alternative Energy Promotion Center

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

Alternative Energy Promotion Center (AEPC)

Governments nodal agency for promotion of renewable energy 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, resource mobilization, coordination, M& E and quality assurance

Renewable Energy in Nepal

Micro-Hydro (MH): Potential 100MW & Progress 17 MW (0.17million HHs)

Domestic Biogas: Potential 1.1 M HHs & Progress 0.24 M HHs

Wind: Potential 3,000MW & Progress only a few Pilot Projects

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 XXXX tons

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

Solar Dryer & Cooker Progress 3,000 HHs

Institutional Solar System & Solar Water Pumping: 13 September 2011 4 Progress 200, 000 HHs

CDM Projects in Nepal

SN 1 2 3 4 Project Name Biogas Support Program Nepal PA 1 (UNFCCC Ref. No. 0136) Biogas Support Program Nepal PA 2 (UNFCCC Ref. No. 0136) Nepal Micro Hydro Promotion (UNFCCC Ref. No. 3653) Biogas Support Program Nepal PA 3 Status Registered Registered and CER issued on Aug 24, 2011 Registered Final stage of validation

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Biogas Support Program Nepal PA 4

Biogas Support Program Nepal PoA Promotion of Improved Water Mills Nepal Promotion of Improved Cooking Stoves Nepal

Final stage of validation

Final stage of validation Initial stage of validation Initial stage of validation

Improved Water Mills PoA CDM

Baseline & Project

Baseline Case Diesel to run the mill

Project Case Water to run the mill

TWM does not meet the growing demand

Technology of the Project

IWM is a modified version of the TWM which translates into a higher agro-processing capacity and possibility of providing a diverse range of services like hulling, oil expelling, saw milling etc. Higher efficiency than TWM

IWM Program Management and Implementation Structure

AEPC - CME Rural Energy Fund MGREC CRT/N IWMP Central Unit

IWMP Regional Unit

Service Centers Kit Manufacturers Micro Finance Institutes IWM Users Ghatta Owners Associations (GOA) IWM Users IWM Users

IWM Owner

Improved Water Mills Project Details (1)

Aims to discourage possible installation of diesel mills in the mid hills of Nepal. Financial Mix: subsidy, equity, loan and CER revenue Program period: 4-5 years, commencing from Sept 2011.

Improved Water Mills CDM Details (2)

Project being developed under the PoA approach with each CPA not exceeding 5MW capacity Applied Methodology: AMS I.B/version 10 Expected emission reductions :

Additionality demonstrated using Guidelines for demonstrating additionality of micro-scale project activities

Improved Water Mills CDM Details (3)

Host Country Approval on PIN has been received for the project Baseline study has been conducted and PoA DD and CPA DD are being finalized DOE has been selected for the project Validation to be initiated from the last week of September 2011

Sustainable Development Impacts

At least 8000 IWM owners will increase their income from IWM by 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 strata will be capacitated through IWM training activities. Etc.

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

Challenges in developing the PoAs

Individual activities that are installed/implemented prior to the start of the validation cannot be included in the PoA. Additionality tool does not explicitly mention methods for demonstration of the additionality at the PoA or CPA level Poor response from DOE regarding the validation of the PoA High transaction cost (DD, Validation & verification) High up-front cost for developing the PoA

Thank you!!
Mr. Raju Laudari Manager - Climate and Carbon Unit Alternative Energy Promotion Center Khumaltar, Lalitpur, Nepal Tel. no.: +977-1-5539 237, 5539 390 Email: Website: