- Case Study 4 -

Biogaz Programme Support

BSP - Nepal

Context

-   Nepal is a landlocked country divided in three geographical regions: mountains, hills and Terai(plains in south).

-   76,6% of the population is living with less than 2 US$ per day

-   85% of the population is engaged in the agriculture sector

-   In rural areas the dependence on biomass is over 95%, and even close to 99% in some districts.

-   Heavy dependence on fuel-wood resources has negative impacts on the local and global environment.

-   Besides, the harassing burden of collecting fuel-wood and dung weigh heavy primarily on women and children; the smoke emitted from biomass combustion has adverse effects on health.

Brief description of the project and results

The Biogas Support Programme (BSP) in Nepal managed the installation of over 200,000 domestic biogas plants between 1992 and 2009. The plants use cattle manure to provide biogas for cooking and lighting. The slurry that is co-product of the plant is used as organic fertilizer. The history of biogas in Nepal is quite ancient, but the first phase of the BSP project started in 1992 only. As the project was very successful, it was prolonged several times. It is currently the end of the fourth phase, whose main objective is to further develop and disseminate biogas plants as a mainstream renewable energy solution in rural Nepal, while better addressing poverty, gender and social inclusion and regional balance issues. At the same time, it aims for ensuring enhanced commercialisation and sustainability of the sector.

Main achievements and lessons learnt regarding to scaling-up mechanisms.

1. A supportive government policy (subsidies, low interest rates on loans, favourable fiscal policies and incorporation of quantified objectives in the Five-year plans).
2. The supportive long term donors’ commitment is another factor of success since they are continuously funding the project since 1992 avoiding “stop and go” effects.
3. The setting-up of an efficient Public-Private Partnership has been essential  and is one of the main lessons learned by the project:

-   The public sector has to facilitate and coordinate the sector

-   The private sector is responsible for biogas plants installation and after-sales services.

1. The technical assistance of SNV for technical aspects as well as for institutional strengthening and R&D.
2. The quality of the products guarantees owners’ satisfaction and project sustainability.
3. The organisation of the biogas companies in an association to regulate the sector, prevent bad practices and strengthen the capacities of the biogas companies (technical aspects, business management, accountability, marketing skills, etc.)
4. Provision of subsidies for making biogas systems affordable with additional (but probably not sufficient) subsidies for remote areas as well as for poor and less favour groups.
5. Provision of credit supports from AEPC through local cooperatives and other MFIs as an additional support for poor families for who subsidies are not sufficient (but there are still some difficulties to reach remote areas).
6. Good monitoring and quality control mechanisms.