SVN-Partners-Clients Workshop

on
Biofuel Development in the
Asian Region

10 – 11 March, 2009
Menam Riverside Hotel, Bangkok
Thailand
Government of Nepal:
The Policy on Biofuels

Nawa Raj Dhakal

Senior Training Officer
Alternative Energy Promotion Centre (AEPC)
Kathmandu, Nepal
E-mail: nawa.dhakal@aepc.gov.np/
nrdhakal@yahoo.com
www.aepc.gov.np
Nepal’s Energy Consumption
Electricity
Coal 1.82%
1.76%
Petroleum Renewable
8.22% 0.53%

Traditional
87.67%

Source: WECS, 2006

Energy Consumption by Sector
Commercial Agricultural/
1.5% Other
Transport 0.8%
3.70%
Industrial
4.5%

Household
89.3%

Source: WECS 2006

Fuel Crisis…!!!
Why Biofuels?
 Biofuels have sustainable properties
 Locally produced and decentralised
 Partial replacement of fossil fuels possible
 Bio-diesel
 Bio-ethanol
 Small scale to large scale
 Rural Areas – cooking, lighting, agriculture
processing, electricity
 Urban Areas – transportation
 Employment generation
Projected Potential – Ethanol
Sugar industries and capacities
Projected Potential – Bio-diesel
Sources of bio-diesel in Nepal
Appropriate Source of Bio-diesel
 Jatropha Curcas L
 High-yielding species
 Can be grown in low-yielding areas
 Up to 1400m
 Low maintenance care
 Used in fencing across Nepal
Government’s Rural Energy Policy, 2006

Working Strategies…

 Activities related to awareness creation for the use

of bio-fuels
 Technology for bio-fuels
 Development and promotion of bio-fuels
 R&D and dissemination on non-edible vegetable
oils as energy source
Three Year Interim Plan, 2007/08- 2009/10

Bio-Energy Programme
 Priority to develop & promote bio-energy
 Promotional activities on biofuels
 Emphasis on decentralisation
 R&D, technology transfer
 Public Private Partnership
 Capacity development for bio-energy resources
 Multi-Ministerial coordination platform
Major Government Interventions / 1
 RECAST has tested diesel engines with unesterified
plant oil
 AEPC workshop outcomes:
 Non-edible plant oil for running electric generator in
Okhaldhunga and irrigation pump in Siraha
 SNV and WWF organised assessment of biofuel
potential in Nepal
 Alternative Energy Task Force recommended utilisation
of biofuel in Nepal
Major Government Interventions / 2

 GoN announced E10 Blending in 2002

 A 2007 AEPC study on economic, technical and
environmental aspects of using E10 and E20
 Positive findings and recommendations
 Nov 2008: GoN decided to blend 10% ethanol in
petrol
GoN Biofuel Programme: FY 08/09
 Allocated USD 0.625 Million
 Major activities planned:
 Awareness / information dissemination on biofuels
 Formulation of biofuel promotion strategy
 Establishment of Jatropha nurseries
 Capacity building for Jatropha plantations
 Installation of bio-diesel processing plants
 Implementation of pilot projects on biofuels

 Link with SNV on comprehensive value chain

assessment
Way Forward
 Establish price and market mechanism for ethanol
 Research on bio-diesel (pilot projects)
 Encourage plantation of Jatropha
 Link with Climate Change ~ Carbon Credits
 Capacity building of stakeholders
 Engagement of local community
 Launch biofuel processing industries
 Regulatory mechanisms
 Quality control

 Scale of production

 Allocate areas for production

Thank You!