An Insight to CDM Projects in Nepal
Cookstove CDM Project in Nepal:
Challenges for an NGO
Lachana Shresthacharya (Sthapit)
Subarna Kapali
Conference on Improving Energy
Access through Climate Financing
Centre for Rural Technology, Nepal (CRT/N)
28 March 2013
The Netherlands
Presentation Outline
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Overview of CDM Projects in Nepal
CRT/N’s Cookstove CDM Project
Household energy access-before and after
Challenges
Role of NGOs
Role of Academic Institutions
Centre for Rural Technology, Nepal (CRT/N)
Overview of CDM Projects in Nepal
• All six of the CDM registered projects in Nepal are based on
renewable energy technology (RET)
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First two projects on biogas - registered in 2005.
Another project on micro hydro - registered in 2010
Two projects on biogas - registered in 2011
A project on Improved Water Mills and on cookstoves – under
validation (2013)
– A PDD on solar home system being prepared (2013)
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Above mentioned projects have been developed by the Alternative
Energy Promotion Centre (AEPC)/Government of Nepal
second registered
CRT/N is the first NGO in Nepal to develop CDM
project on ICS in
project on improved cookstove - registered in 2011
the world.
Several other NGOs have come forward with
PPDs on CDM projects now which are currently
at Designated National Authority (DNA) for approval
Centre for Rural Technology, Nepal (CRT/N)
CRT/N’s CDM Project on ICS
“Efficient Fuel Wood Cooking Stoves Project in Foothills and Plains
of Central Region of Nepal”
Project reference no.
UNFCCC: 4530, GS756
Project Proponent
Centre for Rural Technology, Nepal
Pre-financed by
Egluro Limited, UK
Project Area
Parsa, Bara, Rautahat, Sarlahi, Mahottari and
Dhanusha districts in Central South Nepal
Methodology
AMS-II.G ver.2
Registration Date
15 March 2011 (Date of registration action 6 June
2011)
Validator
Det Norske Veritas (DNV), Norway
No. of Stoves Targeted
22920
Technology
Fixed type mud stove and portable rocket stove
Expected CER
198994
Crediting Period
1 May 2011 - 30 April 2021 (Fixed)
Project Activity Start Date
1 October 2010
Centre for Rural Technology, Nepal (CRT/N)
Household Energy Access: Before
• Technology before installation of ICS
– Households with three stones stoves: 14.3 %
– Households with traditional mud stoves: 78.6 %
– Households with tripod stoves: 5.7%.
• Firewood consumption
– 2675 kg per annum or 222.9 kg per month per
household
• Efficiency of stoves
– 10% on an average
Centre for Rural Technology, Nepal (CRT/N)
Household Energy Access: After
• Technology
– Fixed model mud ICS with ceramic inner liner and
chimney – 14,371 disseminated by Dec. 2012
– Portable rocket stove – few
– Efficiency above 27%
• Firewood consumption
– Average firewood consumption:105 kg per month
(53% savings)
– Emission reduction – 11,000+ by Dec. 2012
• Benefits From User’s Eyes
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Reduction on fuel wood consumption
Reduction of smoke in the kitchen
Cleanliness of kitchen and clothes
Lesser visit to doctors for eye and respiratory
diseases
Centre for Rural Technology, Nepal (CRT/N)
Issues and Challenges in Developing the
CDM Project
• Technical issues
– Non Renewable Biomass
– Efficiency of the stoves
– Starting date and crediting period
– Stove life is shorter than crediting periodwhat to do?
Centre for Rural Technology, Nepal (CRT/N)
Issues and Challenges in Developing the
CDM Project
• Programme related issues
– In contrast to conventional development project where
dissemination of ICS was necessary, CDM project required
additional goal to generate a specified amount of CERs
– Higher level of coordination with government agencies was
needed to establish geographical boundary of the CDM project
to avoid duplication of the efforts in the same area as required by
the validation procedure
– Bear a long period – 16 months of validation process
– Securing pre-finance for the project – CRT/N was able to
convince UK based buyer, Egluro Limited, to provide upfront
investment to start the project activities
Centre for Rural Technology, Nepal (CRT/N)
Issues and Challenges in Being
Pre-financed
• Project financing related issues
– Because of pre-financing, CRT/N was in a weaker position during ERPA
negotiations with the buyer
– Waiting for a favorable market situation to reap a higher price for CERs
was not feasible - CRT/N was under pressure to initiate the project
activities as soon as possible from the communities and the
coordinating government agencies.
– Lost leverage as all CERs were sold at once to the buyer at the same
rate.
– Lost the opportunity of being the focal point for communication with the
CDM Executive Board
– Reluctance from investors when market price for CERs is low affecting
the project performance at the field
With pre-financing support CRT/N enabled the timely commencement of the
project and risk of the price going down is mitigated
Centre for Rural Technology, Nepal (CRT/N)
Role of NGOs in CDM Projects
• Technology and quality assurance
– research and development, dissemination, monitoring
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Social mobilization – work with large number of people
Timely implementation of project activities
Capacity building of local partners and promoters
Hiring services of independent third parties for
monitoring
• Negotiation with buyers, building confidence with buyers
• Coordination with national and government agencies
Centre for Rural Technology, Nepal (CRT/N)
Centre for Rural Technology, Nepal (CRT/N)
Role of Academic Institutions in CDM
• Capacity building of NGOs
• Awareness among decision makers
• Technical capacity to develop project documents, monitoring and
reporting
• Negotiation skills
• Link between CRT/N and University of Twente
• Head of the organization is trained from CRT/N
• CRT/N took its first step into CDM after one of its senior staff attended
ICREP in 2008
• CRT/N staff were heavily involved in the conceptualization of the project
and preparation of PIN and PDD
• CRT/N staff is now invited by DNA to evaluate CDM proposals
• CRT/N staff has served as resource person international training on
CDM organized by Nexus- Carbon for Development, Singapore
Centre for Rural Technology, Nepal (CRT/N)
Thank You for Your Kind Attention
Centre for Rural Technology, Nepal (CRT/N)
Kumaripati, Lalitpur
GPO Box 3628 Kathmandu, Nepal
Tel.: +977-1-5008536/5008538
Fax: +977-1-5008537
Email: info@crtnepal.org
Web: www.crtnepal.org
Centre for Rural Technology, Nepal (CRT/N)