kathmandu | apr-15 | productive use of energy for sustainability mini grids

Prem Sagar SubediNational Advisor

Productive Energy Use ComponentAlternative Energy Promotion Centre (AEPC)

Prem.subedi@aepc.gov.np

NATIONAL RURAL AND RENEWABLE ENERGY NATIONAL RURAL AND RENEWABLE ENERGY PROGRAMME/AEPCPROGRAMME/AEPC

AEPC/NRREPAEPC/NRREP

Technical Support

Technical Support

Productive Energy UseProductive Energy Use

Central Renewable Energy

Fund

Central Renewable Energy

Fund

Productive Energy Use Component

To contribute to an increase in income generation and employment potential for MSMEs in rural areas, particularly for men/women belonging to DAGs

PEUCPEUC

• 20% income of MSMEs increased in RE catchment areas

• 1,300 existing MSMEs upgraded

• 2,800 new MSMEs established

• 15,300 HHs supported through IGA

• Employment increased by 19,000 4

5

Supports of PEUC: TechnicalSupports of PEUC: Technical Business Development

Business Opportunity Assessment Facilitation for business plan development Facilitation for business registration Networking with business development service providers Training

Business Orientation Enterprise Creation Training Business Management Training Skill Development Training

Facilitation for Marketing and Market Linkage Regular Follow-up and Monitoring

6

Supports of PEUC: FinancialSupports of PEUC: Financial Individual Enterprise: Max. of Rs 100,000/- not

exceeding 30% of total equipment and hardware cost,

Community based Enterprise: Max. of Rs 300,000/- not exceeding 50% of total equipment and hardware cost,

Additional: Max. of NPR 10,000/- for Single Women, Disadvantaged Groups, Poor, Disaster and Conflict Victims, Endangered Community identified by GoN

IGA: Maximum of 75% of total investment not exceeding NPR 10,000/-

PEU-MSMEs Support Cycle

Progress Till Date

MSMEs – 850+ (around 500 MSMEs are in pipelines)

IGAs – 3000+Employment – 3625+Investment – 315m

Types of MSMEs

• Production type– Local consumption– Import Substitution– Export to regional, national and international markets

• Services to local people

• Forest Based:- Furniture, Lokta, Allo, Sugandhid Oil,..

• Agro-based: Coffee, Masala, Tea,..

• ICT: Computer and FM

• Service: Beauty Parlor, tailoring, Fresh house, Poultry, Photocopy, Money transfer, Printing Press,…

• Dairy: All dairy related service

• Manufacturing: Bakery, Stone, Aran, Grill, Block, Mauri ghar, Chowmein, Tile making,…

• Milling service: Hulling, grinding and Expelling

Types of MSMEs

Sustainability: Khamarikhola MHP (53kW), Surkhet

MSMEs- 18 IGAs – 25Total investment- Nrs. 8.8M Subsidy- NRs. 2.2MEmployment -28 full time 22 part timeIncreased in Tariff from the baseline: 65%

04/15/23 12

Economic Growth: Annapurna Lokta Paper and handicraft

04/15/23 13

Total Investment: Nrs 560,000

Subsidy from AEPC: 80,400

Full Time Employees: 6

Part Time Employees: 5

Average Monthly profit: 61,000

(Seasonal enterprise -runs for 6

months)

Value addition of the product by

making handicrafts

Powering Education: Computer Training Center in Baglung

04/15/23 14

Powering Communication: A FM station in Kharbang

04/15/23 15

Powering Health Services:

04/15/23 16

Powering Agriculture: Lift irrigation

04/15/23 17

Powering Livestock activities: A poultry farm in Sindhuli

04/15/23 18

Value addition for local resources: Drinking Water, Ghandruk, Kaski

04/15/23 19

Challenges

• Business orientation of MHPs management committee and users

• Reliable power supply from MHPs• After sales services for equipments installed

(transportation and expert’s cost)• Scale – production and improved quality• Access to finance

OpportunitiesOpportunities

• Local resources and relatively cheap labour cost• Returnees from foreign employment• Quality enhancements, Branding, market linkages• Encouraging social investors from cities to invest

in rural enterprises• Rural industrial cluster/estate

Mini grids for basic lighting services

Mini grids for earning money

Promoting MHPs as enterprises

• Community property private management• Rural electricity utility managing multiple MHPs