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FINAL REPORT ON

“MARKET MAPPING STUDY FOR BIOGAS COMPANIES”

Submitted to: Submitted by: Alternative Energy Promotion Center (AEPC) National Rural and Renewable Energy Programme (NRREP)

Sustainable Energy and Technology Management (SETM) Kamaladi, Kathmandu

PO Box: 14364, Khumaltar Height Lalitpur Nepal Phone: +9771-5539390/5536843 Phone: +9771-4412078 Fax: 5539392 Email: [email protected] Website: www.aepc.gov.np PO Box No: 7039

NOVEMBER, 2013

Market Mapping study for Biogas Companies Final Report

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PREFACE AND ACKNOWLEDGEMENT Sustainable Energy Technology and Management (SETM) express our sincere gratitude to Alternative Energy Promotion Center (AEPC)/NRREP for entrusting us to conduct the study on Market Mapping for Biogas Companies.

SETM would also like to express our genuine acknowledgement to Prof. Dr. Govind Raj Pokharel, Executive Director of AEPC. Our special thanks and appreciation goes to Mr. Samir Thapa, Assistant Director of AEPC and Mr.Uttam Jha, National Advisor of NRREP, Suraj Regmi, Programme Officer of NRREP, Mr. Lava Thapa, Assistant Programme Officer of AEPC and other staff for their kind cooperation and valuable input.

We would also like to acknowledge with thanks the co-operation and valuable input received from all the related Biogas Companies, DDC/DEEU/S, NBPA regional offices and local banks and micro finance institutes.

This study is an outcome of numerous interactions with large number of professionals and individuals. All the surveyed Biogas User and Non User and key informants are highly acknowledged for their sincere responses and feedbacks. Without their valuable support and cooperation, the study could not have come to a logical conclusion.

Last but not the least, SETM highly acknowledges and appreciates the untiring efforts of the Team Leader Govinda Prasad Devkota, Mr. Bibek Kanta Neupane, Mr. Hari Poudel and all members of the study team for their hard work in accomplishing this assignment.

Sharada Shrestha Managing Director,

Sustainable Energy Technology and Management (SETM)

Kamaladi, Kathmandu


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ACRONYMS AND ABBREVIATIONS AEPC Alternative Energy Promotion Centre

BSP/N Biogas Sector Partnership Nepal

DDC District Development Committee

DEES District Energy and Environment Section

DEEU District Energy and Environment Unit

FMI Micro Finance Institutes

GoN Government of Nepal

HHs Households

NBPA Nepal Biogas Promotion Association

NGO Non Governmental Organization

NTNC National Trust for Nature Conservation

NRREP National Rural and Renewable Energy Programme

RE Renewable Energy

SETM Sustainable Energy and Technology Management

SGBP Sahari Gharelu Biogas Plant

VDC Village Development Committee


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EXECUTIVE SUMMARY Background

1. The main objective of this study was to conduct a broad frame market study on the scope of biogas with an analysis on constructed plants versus demands and potentialities for further dissemination of biogas technologies. The study was based primarily on nine districts and with the help of secondary data it has forecasted the demands and potentialities on all the 75 districts of Nepal. It has gathered all the necessary details on the district wise coverage indicating the proper promotional strategy and need assessment of biogas companies according to the probability of biogas development.

2. AEPC has been promoting Biogas and other Renewable Energy Technologies in Nepal. To make the biogas technology affordable, AEPC has been providing technical and investment supports. The subsidy is provided as per the GoN's renewable energy policy and channelized through the pre-qualified biogas companies. The technical supports including quality assurance and monitoring activities are supported by National Service Providers such as BSP-N. Supply of equipments, installation and construction of biogas plants are done by the pre-qualified Biogas Companies. AEPC also selects the national, regional and local partners to implement the programme. So far, more than 290,510 domestic biogas plants have been installed in over the country.

Field Study 3. Sampling of nine districts (two VDCs from each district); Doti (Pachnali and

Kapalleki), Kanchanpur (Suda, Shankarpur), Dailekh (Bhawani, Bindyabasini), Kapilbastu (Banganga, Bisanpur), Baglung (Singana, Tityang), Sarlahi (Hariwan, Lalbandi), Dolakha (Jiri, Sunakhani), Saptari (Dharampur, Bakdawa) and Panchthar (Amarpur, Bharapa) were selected on ecological base such as representation of Hills and Terai as well as socio cultural representation.

4. Janajati and Brahmin/Chhetri communities are potential customers for biogas companies. As shown in the result; but Madeshi community is still so far from biogas program. They had less awareness and information regarding the biogas technology and its benefits. Biogas technology is popular among the middle class family. Biogas technology is popular among the middle class family (89%) followed by poor communities (11%) have access to biogas plants whereas high class families either use LPG or Electricity for cooking their foods.

5. Promotional materials has played crucial role to strengthen market for biogas companies. Among the respondents 56% (Dailekh, Baglung, Panchthar, Doti and Kanchanpur districts) said they have used such promotional measures whereas 44% responded there is no practice of promotional materials(Saptari, Sarlahi, Dolakha and Kapilbastu districts). The main promotional procedures are printed materials like pamphlet, brochures, calenders etc. Very few companies are using video documentary, FM radio, social medias for promotional activities.

6. Bio-slurry is a major by-product of biogas process within a biogas digester when the feed materials are digested and come up from the outlet. Three types of slurry application have been recognized as: i) slurry as it is; ii) slurry in the form of compost and iii) slurry after drying. A query related to trend of using slurry manure; they responded the use of slurry in majority is highest in type of “making compost”


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(Saptari, Sarlahi, Dolakha, Baglung, Pachthar and Kapilbastu district) which is followed by the use of slurry after drying(Dailekh, Doti and Kanchanpur).

7. The survey illustrated that subsidy has been an important and widespread tool in increasing demand of biogas in different geological locations. Almost all companies said that; with current increased subsidy there is high demand of biogas plants these days.

Interaction with stakeholders

8. NBPA regional offices agreed on the need of capacity development of biogas companies so that supply side can be ensured. There is need of more promotional activities along with orientation trainings to the potential customers. Also the skilled human resources and well managed company or their branches to be established. Hilly districts and southern belts of Terai have good potentiality of biogas development.

9. Biogas users received the subsidy in the form of materials and construction. The sources of cash contribution at users’ level are a very mixture nature. However, they have significant contribution either in form of labor works or cash. Loan from micro-finance/financing institutions and additional subsidy are also encouraging to invest for biogas development in rural parts.

10. MFIs are providing loans directly to the farmers or through biogas companies as well. Likewise, AEPC had distributed loan through Biogas Credit Fund to MFIs. MFIs are also playing the significant roles in promotion of domestic biogas plants in Nepal. Study team has also interviewed few MFIs personnel to identify the scope of MFIs in biogas sector. As said those people who are able to opt for loan and also can pay back their potential customers.

11. Finance, cattle number, need and willingness are the major factors influenced the buying of the customers. For Hill, the maximum cost for installation was Rs. 70,000; minimum cost for installation was Rs. 36,700 and the average cost Rs. 47,090. Similarly, the maximum cost for installation was Rs. 65,000; minimum cost for installation was Rs. 25, 000 and the average cost Rs. 47085 in Terai. These values also include the subsidy amount.

Market Mapping 12. The aim of the programme is to have large numbers of customers in rural areas

using biogas technology and enjoying its benefits. A market oriented approach places the customer at the core of the programme. All of the programme activities are oriented towards ensuring they have a high quality plant at a price they can afford.

13. The quality control mechanism is one of the keys to this. Quality control does not only apply to the need for technical quality, although this is an essential part of the way the programme is run. The quality of the marketing of the technology is also important. The sales people from the installation companies need to relate effectively to the customers and help them to make the decisions that will ensure they have plants that meet their expectations.

14. District wise total biogas production potential has been calculated with the help of national database on the number of households; available human population along


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with cattle population within each district. As the district level databases on each household level was not available for the deliberation thus average figures were used for further forecast of technical potentiality. Based on the potentiality of the biogas in districts, Chitwan, Dhanusa, Jhapa and Kailali are the most potential districts. It is recommended to open new offices in Baitadi, Dadeldhura, Dhanusa, Doti, Kapilbastu, Myagdi, Achham, Jajarkot , Rukum, Khotang, Mahotari, Parsa , Ramechhap, Siraha, Sarlahi, Sunsari and Okhaldhunga districts where there is potentiality but needs extra effort and recommended to open branch offices and provide services. However, in districts such as Bajura, Dolpa, Humla, Jajarkot, Jumla, Kalikot, Manang, Mustang, Rukum, Rolpa and Taplejung there is less potentiality of biogas and existing companies could continue their activities.

15. Nowadays various business locations are relatively better in road connectivity and other infrastructure development aspects. Changing professionalisms is also helping for better economic status such as land, buildings, cattle, income and saving of households. Almost all district headquarters and other villages and communities are developed as local business centres.

16. Community based organizations such as community forest user groups, women groups; local youth clubs etc. have promoted biogas plants (Doti, Kapilbastu, Saptari, and Kanchanpur districts). They have provided financial support to its members to construct toilet attached or non-attached biogas plants. In some cases they also have provided soft loans.

17. There 4 – 9 companies are working in the surveyed districts. However, in Doti there is no regularity of the company, in Kanchanpur, the company has not reached to the southern part where as in Dailekh no any company representative at local level. In Kapilbastu Madeshi, Muslim and Tharu community have less access to biogas companies. In Sarlahi, Madeshi people could be potential customers for upcoming days. In Saptari district, southern part has good potential for biogas development whereas in Panchthar in remote areas companies are not willing to conduct promotional activities.

18. In all the districts, the most popular model are modified GGC 2047 and the most

common size is the 4 and 6 cum plants. Dung is common feeding material for the biogas plant particularly fixed dome digester, which is successful example in the house hold based plant.

Capacity Development

19. Customers need to have a sense of ownership of their plants and feel that the operation of those plants is part of their daily routine. They need to know how to do routine maintenance work themselves. They also need to know what to do if they have a problem with their plant. The effectiveness of capacity development at this level can be defined by the proportion of plants that are still being used several years after installation. Study team has suggested for providing the capacity building training and orientation to the potential customers as well as companies’ personnel for the identification of biogas market. The promotional activities such as FM radio program, Television programs and other awareness campaign should be encouraged.


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20. The primary skill for installing a biogas plant is required by the masons who do the actual construction work. Masons need to be backed up by a supply of materials and biogas equipment, which often need to be purchased locally. The logistical skills can either be taught to the masons or taught to technicians who supervise the work. The technicians also need the technical skills required to check that the plant is being made to the defined dimensions. Both technicians and masons are taught marketing skills, so when one plant is being built, they can encourage other people in the area to buy one.

21. The key skills required by the staff of implementation organizations are those of planning and management. These skills are closely linked with marketing. Ideally several biogas plants should be built in an area at one time, so that resources can be used efficiently. Implementing organizations are involved in the training of installation staff, so staffs need to be trained to train others in the skills of construction, quality control, marketing and follow-up. Implementing organizations are also involved in quality control, so people need the skills of data management to keep track of each plant built, the quality checks and the follow-up visits. Staff also needs to have financial management skills to keep track of payments, subsidies and loans. Separate MFIs often deal with loan finance, but their staff need to be properly trained and their work checked by the implanting organization.

22. The skills at the policy framework level are not usually imparted through training courses, although some information can be conveyed through conferences and workshops. Policy formulation and application requires government staff to have a sense of ownership and commitment to the biogas programme. Capacity development takes time, as these staff needs to understand the wider benefits of the programme and what policies are needed to allow those benefits to be realized. People also need to recognize the best ways to apply those policies through the Apex body, providing direction, co-ordination and clear decision making.

Cost of the plant 23. The cost of installation of biogas plants varies from one place to another and also

from size to size. A cost comparison of the constructional material between local level, district level and national level have been compared and found that companies increased price based on the increment of the subsidy and hence users are not the real beneficiaries of the subsidy and found that the cost of brick, sand and gravel is low in NBPA quotation but these materials have to be managed by the customers themselves and are paying more than what is quoted in the quotation. Likewise the cost of cement for Hills and remote hills are available in the NBPA quotation, which is again extra burden to the customers. Hence it is the tendency of the company to reduce the price of the locally available construction materials such as cement, sand, gravel and bricks in their quotation and increase in other appliances which are not available in the market. These include gas valve, mixture machine, stoves, water drain, gas tap and multilayer pipes and fittings.


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TABLE OF CONTENTS PREFACE AND ACKNOWLEDGEMENT ............................................................................................... i ACRONYMS AND ABBREVIATIONS ................................................................................................... ii EXECUTIVE SUMMARY ....................................................................................................................... iii TABLE OF CONTENTS ....................................................................................................................... vii 1.0 INTRODUCTION ............................................................................................................................. 10

1.1 Background ............................................................................................................... 10 1.2. Development of Biogas Sector ................................................................................. 11

2.0 OBJECTIVES OF THE STUDY ...................................................................................................... 12 2.1 Programme Objectives .............................................................................................. 12 2.2 Scope of Work ........................................................................................................... 12 2.3 Expected output and deliverable ................................................................................ 13 2.4 Limitations of the study .............................................................................................. 13

3.0 GENERAL APPROACH AND METHODOLOGY .......................................................................... 14 3.1 Study Approach ......................................................................................................... 14 3.2 Literature Review ....................................................................................................... 16 3.4 Selection of Enumerators and their Orientation.......................................................... 17 3.5 Sampling Process - District and VDC Identification .................................................... 17 3.6 Questionnaires and Checklist Preparation ................................................................. 19 3.7 Field Visit for Data Collection ..................................................................................... 19 3.8 Data Processing and Analysis ................................................................................... 20

4. ANALYSIS AND DATA PRESENTATION ....................................................................................... 21 4. 1 General Overview of Surveyed Sites ........................................................................ 21 4.2 Interaction with different stakeholders ........................................................................ 30

4.2.1 DDC/DEEUs ....................................................................................................... 30 4.2.2 Biogas Companies .............................................................................................. 30 4.2.3 Nepal Biogas Promotion Association (NBPA) ...................................................... 40 4.2.4 Micro Finance Institutions/Credit Finance ............................................................ 41 4.2.5 Users and Non-users Level Information .............................................................. 41

5. MARKET MAPPING ......................................................................................................................... 55 5.1 Demand and Potential of Biogas Plants ..................................................................... 59 5.2 Promotional Strategy Situation .................................................................................. 61 5.3 Business Location ..................................................................................................... 62 5.4 Complementary/Supplementary Organizations .......................................................... 64 5.6 Need Assessments .................................................................................................... 65 5.7 Appropriate Size ........................................................................................................ 66 5.9 Energy Policy (Strategic – way forward) .................................................................... 66

6. CAPACITY DEVELOPMENT ........................................................................................................... 66 6.1 Micro Level ................................................................................................................ 66 6.2 Meso Level ................................................................................................................ 68 6.3 Macro Level ............................................................................................................... 69

7. COST/PRICES OF BIOGAS ............................................................................................................ 70 8. CONCLUSION AND RECOMMENDATIONS .................................................................................. 72 8.1 Conclusions ................................................................................................................................... 72 8.2 Recommendations ........................................................................................................................ 75 9. REFERENCES .................................................................................................................................. 77 10. ANNEXES ....................................................................................................................................... 78

Annex 10.1 List of Surveyed biogas companies/branches ............................................................... 78 Annex 10.2: Perceptions of DEEUs in Terai Region ....................................................................... 78


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Annex 10.3: Perceptions of DEEUs in Hills Region ......................................................................... 79 Annex 10.4: Orientation Schedule for Field Enumerators ................................................................ 80 Annex 10.5: Market Mapping Questionnaire for Biogas Companies ............................................... 81 Annex 10.6: Checklist for Stakeholders ............................................................................................ 84 Annex 10.7: Biogas Companies having HO/Branch on the sampled districts .................................. 97 Annex 10.8: Feasible Households for biogas installation .............................................................. 101 Annex 10.9: Number of biogas companies/branches in each districts .......................................... 104 Annex 10.10: List of biogas companies along with their branch offices and working districts ....... 106 Annex 10.11: Available Human Resources in Biogas Companies ................................................. 115 Annex 10.12: Terms of Reference (ToR) for Market Mapping Study For Biogas Companies ....... 118 Annex 10.13: Photographs.............................................................................................................. 122

LIST OF TABLES Table 1: List of Sample Districts and VDCs .......................................................................................... 18 Table 2: List of organizations visited ..................................................................................................... 19 Table 3: Total population of surveyed households ............................................................................... 42 Table 4: Education status of surveyed households .............................................................................. 42 Table 5: Number of livestock in surveyed households ......................................................................... 42 Table 6: Average land holding status .................................................................................................... 43 Table 7: Food sufficiency status ........................................................................................................... 43 Table 8: Average Monthly Income ........................................................................................................ 44 Table 9: Main income sources of surveyed households ....................................................................... 44 Table 10: Annual average of surveyed households’ energy consumption ........................................... 45 Table 11: Types of other stoves used for cooking purpose .................................................................. 46 Table 12: Complete satisfaction with the performance of cooking stoves ............................................ 46 Table 13: Readiness to switch to another new cooking technology ..................................................... 47 Table 14: Sources of fuel wood ............................................................................................................ 47 Table 15: Average distance to reach forest area in km ........................................................................ 47 Table 16: Average time for collecting fuelwood in minute .................................................................... 48 Table 17: Responsibility of fuel wood collection ................................................................................... 48 Table 18: Impacts on fuelwood consumption........................................................................................ 48 Table 19: Change in forest coverage areas .......................................................................................... 49 Table 20: Information about biogas plants ............................................................................................ 49 Table 21: Major benefits from biogas .................................................................................................... 50 Table 22: Factors influence the buying of the customers ..................................................................... 50 Table 23: Average cost of biogas installation ....................................................................................... 51 Table 24: Convenient price of biogas installation ................................................................................. 51 Table 25: Service delivery by Biogas Company ................................................................................... 51 Table 26: User’s recommendation to others ......................................................................................... 52 Table 27: Trends in demand of biogas ................................................................................................ 52 Table 28: Possibility of Biogas Development in their VDC from users’ and non-users’ perspective .... 52 Table 29: Knowing about the working biogas companies in their district ............................................. 52 Table 30: Reasons for not installing biogas plants ............................................................................... 53 Table 31: Condition to install a biogas plant ......................................................................................... 53 Table 32: Factors influences the buying of customers ......................................................................... 54 Table 33: Major business location of particular district ........................................................................ 62 Table 34: Existence of biogas companies/branches in each districts and biogas potentials ............... 64 Table 35: Strengths and weakness of supplementary organizations ................................................... 65 Table 36: Number of working biogas companies in surveyed districts ................................................. 65 Table 37: Cost at local level .................................................................................................................. 70 Table 38: Cost at district level ............................................................................................................... 70 Table 39: Cost Comparisons between local, district and national level ................................................ 71


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LIST OF FIGURES Figure 1: Study Approach Flow ............................................................................................................. 15 Figure 2: Sample districts ...................................................................................................................... 18 Figure 3: Map of Kanchanpur district showing sampled VDCs ............................................................. 21 Figure 4: Map of Doti district showing the sampled VDCs .................................................................... 22 Figure 5: Map of Dailekh district showing the sampled VDCs .............................................................. 23 Figure 6 : Map of Kapilbastu district showing the sampled VDCs ........................................................ 24 Figure 7: Map of Dolakha district showing the sampled VDCs ............................................................. 25 Figure 8: Map of Baglung district showing the sampled VDCs ............................................................. 26 Figure 9: Map of Sarlahi district showing the sampled VDCs ............................................................... 27 Figure 10 : Map of Saptari district showing the sampled VDCs............................................................ 28 Figure 11: Map of Panchthar district showing the sampled VDCs........................................................ 29 Figure 12: Potential customers through ethnic profile .......................................................................... 31 Figure 13: Potential customers through economic status ..................................................................... 31 Figure 14: Potential customers through geographic distance ............................................................... 32 Figure 15: Demand of biogas in the district .......................................................................................... 32 Figure 16: Services provided by the biogas companies ....................................................................... 33 Figure 17: Service charge by Biogas Company in a year ..................................................................... 33 Figure 18: Operational condition of biogas plants ................................................................................ 34 Figure 19: Customers feed the plant regularly and adequately ............................................................ 34 Figure 20: Company’s capability to ensure the supply side .................................................................. 35 Figure 21: Human Resource Availability in Biogas Company/Branches .............................................. 35 Figure 22: Demand of capacity development in different level ............................................................. 36 Figure 23: Priority Areas of Biogas Company for Capacity Development ............................................ 36 Figure 24: Need of additional Biogas companies/branches ................................................................. 37 Figure 25: Presence of supplementary organization ............................................................................ 37 Figure 26: Orientation training to the potential customers .................................................................... 38 Figure 27: Customer’s awareness about biogas subsidy ..................................................................... 38 Figure 28: Promotional materials by Biogas companies ....................................................................... 39 Figure 29: Bio-slurry utilization .............................................................................................................. 39 Figure 30: Financing for construction of biogas plants ......................................................................... 40 Figure 31: Market oriented approach .................................................................................................... 56 Figure 32: Biogas Market Appraisals .................................................................................................... 58 Figure 33: Region wise distribution of biogas potential/installation in Nepal ........................................ 60 Figure 34: Total domestic biogas potential in Nepal ............................................................................. 61 List of Photos Photo 1: Biogas plant of 6 Cu.m. Size in Suda VDC, Kanchanpur ..................................................... 122 Photo 2: A women (non-user of biogas) exciting to know about biogas technology during field visit at Shankarpur VDC, Kanchanpur............................................................................................................ 122 Photo 3: A user briefing about benefits of biogas (installed before 10 years) .................................... 123 Photo 4: Mr. Abhaya Karna, Energy and Environment Officer of DEEU, Panchthar.......................... 123 Photo 5: Happy biogas users at Bharapa VDC, Panchthar ................................................................ 124 Photo 6: Conducting interview with biogas owner at Baglung district ................................................ 124


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1.0 INTRODUCTION The annual biogas installation target of AEPC for the year 2070 is 26,000 at household level, 40 at community level, 200 at institutional level and 500 at urban level. AEPC felt that there is a need to escalate and scaling up the promotion and installation activities during the designated programme period. For this reason there are various programme activities in AEPC and one of them is to identify the market potential and mapping of those specific areas where domestic biogas has a niche. Sustainable Energy and Technology Management Pvt. Ltd (SETM) has been engaged to conduct “Market Mapping Study for Biogas Companies” which is supported by Biogas Sub Component of National Rural and Renewable Energy Program (NRREP)/Alternative Energy Promotion Centre-AEPC. The contract agreement was signed between AEPC and SETM on 10 July 2013. 1.1 Background Up to now AEPC has already managed the installation of more than 290,510 biogas plants in Nepal covering Terai, Hills, and Remote Hills and Mountainous locations. For the wider disseminating of the technology, AEPC has been subsidizing the domestic and large sized biogas plants construction as per the approved subsidy policy of GoN. In last 2-3 years due to price increase in the construction material and labour charges, the promotion of biogas was not as envisaged. Against this background recently GoN has brought new subsidy policy 2069. The new subsidy policy virtually established the principle of 40% subsidy, 40% credit, 20 % cash investment from the owner or 20% labour cost borne by the user itself to build the plant. AEPC has also revised the additional subsidy for regional balance and social inclusion. AEPC and its close stakeholders think that there should be market size increment due to this new provision. In other hand the last market survey for domestic biogas was conducted some four years back but purchasing power of the consumer, migration and for other reasons it is worthwhile to do mapping of market for domestic biogas in new and changed context. Up to now, more than 80 companies have been selected as pre-qualified for the installation and maintenance of biogas plants. Primarily these companies are involved in the promotion of biogas while the national & local NGOs and District Environment and Energy Unit/Sections (DEEU/S) are also involved in the promotion of biogas in their respective areas. In tandem with this some of the micro finance institutions, banks and development projects are also promoting biogas in their working area. As a result of this the data figures show that most of the districts of Mountain, Hill and Terai regions of Nepal have been occupied with the encouraging numbers of biogas plants. But it is also a matter of fact that some of the districts of Terai seem to be at saturating point whereas in others there is potentiality but less penetration one hand and on the other; there are also the districts mostly at Mountainous location with higher altitude and cold climate. However, composting on top of the plant could be applied for the promotion of biogas plants in those districts. In the backdrop of above mentioned context it is, being a dire need to conduct a fresh market mapping study so that, the district wise demands and potentialities for developing biogas plants


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can be achieved, the promotional strategy can be defined, and the present status of the companies and needed capacity is determined. Likewise, the task of determining working districts for Pre- Qualified biogas companies will be easier. So that, it will be helpful on achieving the annual targets and developing the biogas plants as Renewable Energy (RE) source in every districts, proportionally.

1.2. Development of Biogas Sector AEPC has been promoting Biogas and other Renewable Energy Technologies in Nepal. To make the biogas technology affordable, AEPC has been providing technical and investment supports. The subsidy is provided as per the GoN's renewable energy policy and channelized through the pre-qualified biogas companies. The technical supports including quality assurance and monitoring activities are supported by National Service Providers such as BSP-N. Supply of equipments, installation and construction of biogas plants are done by the pre-qualified Biogas Companies. AEPC also selects the national, regional and local partners to implement the programme. So far, more than 290,510 domestic biogas plants have been installed in over the country. AEPC has also modified the additional subsidy for regional balance and social inclusion. AEPC and its close stakeholders think that there should be market size increment due to this new provision. Till date, more than 80 biogas companies have been selected as pre-qualified for the installation and maintenance of domestic biogas plants. Still efforts are not sufficient to meet the target of biogas promotion all over the country. A market survey for domestic biogas was conducted some years before but now mapping of market for domestic biogas is desirable to address the purchasing power of the consumer, migration and for other reasons. Various stakeholders/actors have providing their efforts to promote biogas in Nepal. For example, there is a system of three tier monitoring system for constructed biogas plants. The construction companies build the plant and checks the quality at 100%. The designated national service provider at present it is BSP Nepal controls as second party verification and designated third party selected by AEPC pays random field visit and as and when necessary AEPC or as instructed by AEPC, DEES can visit the plants against public complaints and other case investigation have been practiced. Biogas Users Surveys are also crucial to measure the outcome and impacts of the plants installed. The biogas companies are the pioneer for the construction of domestic biogas plants in Nepal. Nowadays, also DDCs/ Energy and Environment Units/Sections are also playing supporting roles in the promotion of biogas in their respective areas. Also some of the micro finance institutions, development banks and development projects have played crucial role for promoting biogas in their working area. There is a provision of additional subsidy for remote area, women headed families and disadvantaged group. Despite all these efforts, the penetration of the biogas technology is not widely disseminated as planned. They are mostly constructed/used in more accessible and among the better off communities. As the program is primarily implanted through demand based approaches with direct involvement of private companies, less numbers of biogas plants are built in poorest of the poor and in mountain areas. The major reasons of such disparities could be lack of awareness, lack of upfront investment, low reach of private companies etc.


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To accelerate and expand the biogas technologies to the remote areas and disadvantaged groups is a key challenge. SETMPL believes that AEPC/NRREP intent to identify a status report of the whole biogas sector that includes potential, private sector participation and capacity, major technical challenges, perception of the users in selection of size, investment cost & level of affordability, adoptability in different ethnic groups/communities etc.

2.0 OBJECTIVES OF THE STUDY

2.1 Programme Objectives The main objective of this study was to conduct a broad frame market study on the scope of biogas with an analysis on constructed plants versus demands and potentialities for further dissemination of biogas technologies. The study was based primarily on nine districts and with the help of secondary data it has forecasted the demands and potentialities on all the 75 districts of Nepal. It is assembled all the necessary details on the district wise coverage indicating the proper promotional strategy and need assessment of biogas companies according to the probability of biogas development. Furthermore, the study intends to capture some possible factors that could influence buying decisions of customers. The study also aims to capture wish list of consumers and companies. The study of this report has provided detailed information about existing biogas companies, constructed plants and the further potentialities.

2.2 Scope of Work The scope of task was as mentioned below. This also assumed as mandatory to get accomplished objectives: Broad market study on the possibility of biogas construction defining the major markets. Assessments of demands and potentialities of biogas, district wise, comparing the

demands and potentialities of other RE source in those relevant districts. Assessing the target set by AEPC/NRREP and actual ground conditions. Study of existing biogas companies (head/ branch) working in different locations/

districts, assess their coverage. Assess the need, whether the relevant district should have additional biogas companies

(head/ branch), The capacities (managerial and financial) needed in construction companies so that the

supply side can be ensured. For this purpose the consulting firm has visited 18 VDCs from nine districts selected by AEPC. The firm has also visited 9 biogas companies/branches to collect their information. The data obtained from these visits and survey was such that the trends, constraints and possibilities to some extent reflect the nearby districts to determine the potentiality and promotional strategy. At


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the same time the firm has also collected the cost of materials of biogas construction of those VDCs and worked out on the difference/variations with the respective district rate.

2.3 Expected output and deliverable Up to the finalization period of assigned research study, the consultant team has prepared the following reports:

• Inception report within two weeks from the date of signing the agreement in print and electronic version.

• 1st Final report within two months of the date of signing the agreement in electronic version,

• Draft report in print and electronic version including annex within two and half months of the date from the signing agreement.

• Final Report after the incorporation of comments from AEPC and Stakeholders.

2.4 Limitations of the study The following are the limitation of this study.

• 2 Users households and 2 non-users households from each VDC of surveyed 18 VDCs (Altogether 36 users’ households and 36 non-users households) were taken as sample size for whole Nepal

• In this sample size 5 districts from Hill (Doti, Dailekh, Dolakha, Baglung and Panchthar) and 4 districts from Terai (Kanchanpur, Kapilbastu, Sarlahi and Saptari) region of Nepal.

• This study was carried out in those accessible areas (those can’t represent whole remote areas). Time factor was another constrain.


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3.0 GENERAL APPROACH AND METHODOLOGY 3.1 Study Approach

Based on the thorough understanding of the assigned objectives, SETM team has prepared an approach and methodology in line with principal underlying issues to be addressed while providing its professional consulting services. SETM intended to apply the conceptualized strategic approach as listed below:

Application of best practices Participatory approach Consultation, coordination and interaction with the client and other concerned

stakeholders Decentralized planning and management Institutional strengthening and capacity building Holistic approach for sustainability Ensuring the consistency Cost benefit analysis

SETM has worked in close coordination with the team members and other AEPC/NRREP/ Biogas Sub-Component professionals and officials.

The flow of the study approach was as shown in Fig 1.


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Phases

Activities

Output

1st Phase Preparation

2nd Phase Data Collection

3rd Phase Data Analysis and Reporting

Review of the secondary sources: • Desk study of previous monitoring reports • AEPC publications • BSP-Nepal/NBPA • Others documents/reports • Websites/Internet Consultation with Stakeholders • NRREP/AEPC • BSP/Nepal • Others Preparatory works

4th Phase Finalization

Finalization of Questionnaires/Checklists: • Structured questionnaire costumers perception survey, • Checklist for companies, NBPA, local based organization • Focus Group discussion Field Study: • Field plan preparation • Sample Allocations ( in close consultation with AEPC) • Field verification and interaction with potential users • Demand and supply chain identification • Assess physical and operation issues and identify major

barriers Data collection: • Develop standard formats for data entry • Orientation for field enumerators • Data entry, cleaning, tabulating, maps, charts etc

Assessment and Analysis: • Assess the number of available number of biogas

companies/branches with their installation service, after sales services etc

• Identification of district wise Demand /Potential • Assess capacity of private companies • Identify local partners

Inception Report

Field Progress Report

Draft Report

Final Report

Final Report • Incorporate comments from stakeholders, • Recommendations

Figure 1: Study Approach Flow


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3.2 Literature Review During the inception phase, consultations with concerned organizations in each district were carried out and relevant documents such as annual reports, installation records etc were collected. Similarly, a literature review related to biogas programmes and their constraints and success in each country was done. The key findings, from document review and discussion of issues and concerns, were analyzed and summarized. The Inception Report was prepared detail out the full scope and contents as specified in the ToR.

The following reports were consulted as literature review:

Scaling-up Renewable Energy Program in Nepal For over two decades GoN has been striving to provide access to modern energy services in remote rural areas, and more recently through the enactment of policies and plans. The policies include Rural Energy Policy 2006; Subsidy Policy for Renewable (Rural) Energy, 2009 and Renewable (Rural) Energy Subsidy Delivery Mechanism, 2010. They provide detailed guidelines on the institutional mechanism, subsidy criteria and delivery mechanism, including the setting up of a Renewable Energy Fund (REF), with AEPC played a crucial role. The subsidies, usually co financed with donor funds under specific projects or programs, are primarily aimed at supporting low income rural households (HH) access energy services as well as environmental protection.

BSP Year Book, 2012 A demonstration biogas plant was built at St. Xavier School, Godavari by B. R. Sauboll in 1955. The history of biogas was initiated by Ministry of Agriculture in fiscal year 1975/76. Gobar Gas Tatha Krishna Yantra Vikash P. Ltd. (GGC in short) was established in 1977 with the joint investment of United Mission to Nepal, Agriculture Development Bank and Nepal Fuel Corporation and nowadays it has developed in a progressive way. After establishment of Biogas Support Programme (BSP) under the Netherlands Development Organization (SNV) in 1992 and creation of Alternative Energy Promotion Center (AEPC) under the MoEST in 1996, the biogas promotional activities in Nepal has gained significant momentum. The continuous feeding type biogas digesters are commonly practiced in Nepal. In 1990, a continuous feeding type biogas digester, named GGC 2047, was recognized as a standard model of biogas plant. After its inception in 1992, Biogas Support Programme and national policies formulated thereafter have considered GGC 2047 as the only standard model for promotion. As of mid July 2012, a total of 2, 68, 398 household biogas plants have been installed in over the country covering 75 districts.

NRREP Programme Documents A five years program called National Rural Renewal Energy Program (NRREP) is executed by the Alternative Energy Promotion Centre (AEPC), a national body for the promotion of renewable energy, since July 16, 2012 which has three major components (i) Central Renewable Energy Fund, (ii) Technical Support and (iii) Business Development for Renewable Energy and Productive Energy Use. The NRREP was evolved to improve the living standard of rural women and men, increase employment of women and men as well as productivity, reduce


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dependency on traditional energy and attain sustainable development through integrating the renewal energy with socioeconomic activities in rural community.

Rural and Renewable Energy Policy 2006 The overall goal of this policy is to ‘contribute to rural poverty reduction and environmental conservation by ensuring access to clean, reliable and appropriate energy in the rural areas’. Its objectives are to reduce dependency on traditional energy, increase employment and productivity and the living standards of the rural population. It cover some of the major aspects for development of rural areas, such as, capacity building of the local bodies for planning, implementation, M& E, increased involvement of private sector, community management and diversification of productive end-uses.

Subsidy Policy and Its Delivery Mechanism 2013 Biogas can play an important role in the reduction of poverty and mitigating climate change impacts while meeting the need of clean cooking and electrical energy requirements. Biogas has high potential on reducing fuel wood consumption, multiple benefits on health/sanitation improvement and positive impacts on the child education improvement. The subsidy is applicable to GGC 2047 Model, the GGC 2047 modified model and the other approved models of various capacities for household/domestic purpose and feasible plants/projects to serve the communities, public institutions, commercial enterprises and municipalities.

3.4 Selection of Enumerators and their Orientation Four pairs of Enumerators who have good experience of biogas were hired from BSP/N, NBPA and SETM for field data collection. The enumerators were provided two-day orientation training prior to field mobilization. The purpose of orientation to Enumerators is to develop a common understanding among the survey team about the purpose, methodology and outcomes of the proposed survey. After the completion of the training of the enumerators, a pre-testing of the questionnaire and the checklists was conducted in an appropriate site (Thecho, Lalitpur) in consultation with AEPC. The result of the pre-testing exercise was further discussed and the questionnaire was finalized after making appropriate adjustments.

3.5 Sampling Process - District and VDC Identification Based on the TOR and suggested tools for study in, sampling of nine districts was done on ecological base such as representation of Hills and Terai as well as socio cultural representation. However, three separate sampling strategy: (a) Selection of districts and (b) Selection of VDCs were employed to carry out this study. Moreover, the prime sampling strategy is to select VDCs for survey ensuring better representation of ecological zones e.g. hill and Terai, and representation of the development region, from the perspective of accessible and inaccessible location and ethnic diversity. To back up and ensure the result of prime sample unit, it requires cross-cutting approach which could be derived from the people’s opinion survey on Bio-gas.

Apart from the above sampling strategy, consultation with AEPC and BSP/N authorities, related agencies including NGOs involved in this mission was also highly considered as top-liners in the survey. For this, purposive sampling technique was used. For the VDCs selection; outside the district headquarters were primarily considered.


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As a result of this sampling method, the following districts were selected in consultation with AEPC and VDCs in consultation with the DEEU and Biogas companies.

Table 1: List of Sample Districts and VDCs Ecological Belts

Development Region Zone Sample

Districts Sample VDCs

Accessible Hills Far Western Seti Doti Pachnali Kapalleki

Terai Far Western Mahakali Kanchanpur Suda Shankarpur

Accessible Hills Mid Western Bheri Dailekh Bhawani Bindyabasini

Terai Western Lumbani Kapilbastu Banganga Bisanpur

Accessible Hills Western Dhaulagiri Baglung Singana Tityang

Terai Central Janakpur Sarlahi Hariwan Lalbandi

Accessible Hills Central Janakpur Dolakha Sunkhani Jiri

Terai Eastern Sagarmatha Saptari Dharampur Bakduwa

Accessible Hills Eastern Mechi Panchthar Amarpur Bharapa

The districts sampled will be as shown in Fig. 2 below:

Figure 2: Sample districts


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3.6 Questionnaires and Checklist Preparation Research guidelines and questionnaire was developed considering the following issues:

• Demand and potential of biogas in the district; • Promotional strategy needed; • Need assessment of biogas companies; • Market mapping with potentiality of biogas, availability of dung, technical feasibility and

buying capacity of the people; • Capacity development to biogas companies; • Research for further programs operating in the field of biogas and its operation, slurry

applications and need of capacity enhancement in each of biogas companies country; • Consultation and interaction with stakeholders; and • Review project documents with respect to the guiding questions.

3.7 Field Visit for Data Collection During field visit, interviews were taken with companies, interaction with stakeholders such as DDC, NBPA regional offices, banks and micro finance institutes and potential users. At least four companies from different grades and two companies from low biogas constructed districts of Terai were also considered. Following the approval of the Inception Report, field visit was planned. The field visit includes:

• Consultation with stakeholders; • Company visit; • Collection of cost of construction materials and district rates; and • Need assessment of biogas companies.

During field visit, following stakeholders were visited and interviewed as shown in Table 2.

Table 2: List of organizations visited

SN Stakeholder Numbers/district Total No Means of Interview

1 DDC/DEEU/S 1 9 Checklist 2 Biogas Companies 1 9 Questionnaires 3 NBPA regional offices/NGOs 1 4 Checklist 4 Banks and MFI 1 5 Checklist 5. Biogas Users 2 18 Questionnaires 6. Non biogas Users 2 18 Questionnaires Total 72

SETM has conducted household survey for both biogas users and non-users of surveyed VDCs. For these interviews, specific questionnaires were used as presented in Annex.


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3.8 Data Processing and Analysis The study team scrutinized the field data in detail. The statistician of the study team ensured at the outset that the questionnaire was designed for easy coding and entry in the computer for analysis. When the data was properly edited, then entered into the computer and statistically analyzed using appropriate software such as the Excel. When the data compilation and statistical analysis completed, the experts in various fields interpreted the data and prepare a final report. Efforts were made to check the statistical significance, validity, and reliability of the compiled data.

Based on the findings, other remaining districts were assessed with secondary data received from population census based on households, cattle populations and income status of the potential customers. The national potentiality of biogas development is projected on the basis of collected primary data from sampled districts and secondary data from various sources. The depth assessment of strengths and weakness of few biogas companies, local market and their attraction for biogas plants, forest status, climate and other socio-economic characteristics in different sampled sites provide more clear ideas to project the national scenario of present biogas development. Thus, the mapping of biogas is primarily based on the information collected from surveyed districts of this study.


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4. ANALYSIS AND DATA PRESENTATION This chapter deals the information about the surveyed district. It includes the socio-economic and biogas related information of the surveyed district particularly the VDCs.

4. 1 General Overview of Surveyed Sites In total 9 districts including 5 districts from mid-hills and 4 from Terai region were surveyed for the market mapping study for biogas companies. The general overview of surveyed districts along with sampled VDCs is provided below.

A. Kanchanpur It is located in Terai part of Far-western development region. The district is divided into 11 Ilakas, 19 VDCs and one municipality. The population is fast growing due to high migration rates from the northern hills area. The main occupation of the people is agriculture, livestock rearing and local business etc. From biogas perspective; about 9666 numbers of domestic biogas have already been installed within this district. In consultation with DEEU of Kanchanpur district and local biogas companies; these two VDCs namely Shankarpur and Suda were selected as potential sites for field visit.

Suda VDC: Total population = 21,998 Male = 10,507 Female = 11,491 Total Households Number = 4128 Average Household Size = 5.33 Livestock Number = Approx. 7000

Suda VDC is located in North-West part of Kanchanpur district and adjoining with Municipality. It has high population due to migration from hilly districts. As compared with available livestock numbers in VDC; it can be said that more biogas plants could be promoted in future. In total 596 numbers of biogas plants have already been installed in different cluster of VDC.

Shankarpur VDC: Total population = 7,251 Male = 1633, Female = 3,549 Total Households Number = 1065 Average Household Size = 5.93 Livestock number = Approx. 4500 It is located in southern part of the district in nearby side of Laljhadi forest corridor. The majority of population is Tharu community. It is a flood prone area and people are shifting towards upper lands. Among 1065 households (HHs) in Shankarpur VDC; 93 biogas plants have been installed till f/y 2012/13. They had low level of awareness about biogas technology.

Figure 3: Map of Kanchanpur district showing sampled VDCs


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B. Doti It is located in Seti Zone of Far-western development region. This district, with Dipayal as its headquarter, covers an area of 2,025 km² with a population of 211,746 in 2011. Majority of population still depend on agricultural activity in spite of the fact that it is subsistence in nature and not sufficient for livelihood. In total 49 numbers of biogas plants had already been installed in Doti district. It can be considered as potential district for biogas promotion in future. Study team has visited two VDCs as Sampled VDCs for market mapping study of biogas. Kapalleki VDC: Total population = 3845 Male = 1633 Female = 2212 Total Households Number = 753 Average Household Size = 5.11 It is located in the central part of Doti district. Majority of population is Brahmin/Chhetri and main occupation is agriculture. As provided data, there are about 1812 numbers of cattle/buffaloes within Kapalleki VDC. Among the 753 HHs; there merely 11 HHs have already been installed biogas plants. Pachanali VDC: Total population = 3001 Male = 1203 Female = 1798 Total Households Number = 647 Average Household Size = 4.64 Pachanali VDC is located nearer to the headquarter Dipayal. Due to its accessibility people are shifting towards LPG although they have potentiality of biogas development. Livestock is the auxiliary occupation of rural people besides farming system. The VDC has around 1943 numbers of cattle/buffaloes. In total 7 numbers of biogas plants were installed till the fiscal year 2012/13.

Figure 4: Map of Doti district showing the sampled VDCs

http://en.wikipedia.org/wiki/Dipayal


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C. Dailekh The district with Dailekh as its district headquarters covers an area of 1,502 km² and had a population of 261,770 in 2011. It constitutes 11 Ilakas, 1 Municipality, 55 VDCs and two electoral constituencies. Most VDCs in Dailekh are connected with road networks but only 15

VDCs are accessible during monsoon period. Till 2012, 132 numbers of biogas plants had been installed in Dailekh district.

Bhawani VDC: Total population = 2197 Male = 1079 Female = 1118 Total Households Number = 393 Average Household Size = 5.59 Bhawani VDC is located in the north side of Narayan Municipality; district headquarters of Dailekh. The main occupation of people is agriculture. The dominant caste is Brahmin and Chhetri. As reported data 4 numbers of biogas plants have

been installed in this VDC although it has around 1200 numbers of cattle/buffaloes. Bindhyabasini VDC: Total population = 3001 Male = 1203 Female = 1798 Total Households Number = 577 Average Household Size = 5.10 Bindhyabasini is another accessible VDC among the 55 VDCs. This VDC has about 1395 hectares land for agriculture purpose. The number of livestock is around 500. Few households have practiced LPG for cooking purpose whereas majority of population still rely on fuel wood based traditional stoves or improved cook stoves. As provided information, only 6 families have already constructed biogas plants in their households.

Figure 5: Map of Dailekh district showing the sampled VDCs

http://en.wikipedia.org/wiki/Dailekh


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D. Kapilbastu Kapilbastu is one of the districts among the six district of Lumbini zone of west regional development of Nepal. The district with Kapilbastu municipality as its district headquarters covers an area of 1,738 km² and had a population of 571,936 in 2011. The major occupation of district is agriculture. The national highway passes across the district. Hill migrants are settled in upper parts of district and Tharu, Madeshi and Muslim inhabitants are in southern parts. Till the fiscal year 2012/13; total 4,435 numbers of biogas have been installed among the 84,301 households in Kapilbastu district. In consultation with DEEU of Kapilbastu and local biogas companies these two VDCs were selected as sampled sites. Banganga VDC: Total population = 13080 Male = 6005 Female = 7075 Total Households Number = 2872 Average Household Size = 4.55 The Banganga VDC is in the northern part of Kapilbastu district. The national highway (Mahendra highway) passes across the VDC. Population growth in Banganga VDC seems increase in trend every year due to high migration rate. Agriculture is considered as main occupation of the majority population. Approximate 8,000 numbers of cattle/buffaloes nurtured within VDC and 386 numbers of households already installed biogas plants. Bisanpur VDC: Total population = 5057 Male = 2617; Female = 2440 Total Households Number = 752 Average Household Size = 6.72 Livestock number = Approx. 5000 It is located in the southern parts of Kapilbastu district. The major population is Madheshi community which is followed by Tharu community. The majority population of the VDC depends upon agriculture and livestock farming for their livelihood. As provided information 60 HHs have already constructed biogas plants. People are still using dung cake as primary cooking fuel. From livestock perspective, this VDC has huge potentiality of biogas development in future.

Figure 6 : Map of Kapilbastu district showing the sampled VDCs

http://en.wikipedia.org/wiki/Taulihawa


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E. Dolakha It lies on central development region of Janakpur Zone as a hilly district. The district with Charikot as its district headquarters covers an area of 2,191 km² and has a population of 186,557 in 2011. It is located at distance of 132 Km from Kathmandu. It constitutes 51 VDCs, 1

Municipality, 11 Ilakas and 2 electoral constituencies. The main occupation of people is agricultural activities. Among the 46,376 HHs; 1324 numbers of HHs have already constructed biogas plants. These two VDCs were selected for the field survey.

Jiri VDC: Total population = 7373 Male = 3472 Female = 3901 Total Households Number = 1899 Average Household Size = 3.88 Livestock number = Approx. 3000 Jiri lies at an altitude of 1,905 meters and is the eastern-most station of the

highway. It is the most attracted tourism place in the district. The village has semi urban characteristics. It was already set up as agricultural development centre in 1938. Jirels are local inhabitants of this VDC. As reported data; 180 numbers of biogas had already been installed. Sunakhani VDC: Total population = 4675 Male = 2131 Female = 2544 Total Households Number = 1194 Average Household Size = 3.92 Livestock number = Approx. 2500 Sunakhani VDC is located in the central part of Dolakha district. Majority of population is Janajati and their main occupation is agriculture. It is also accessible from road networks. Among the 1194 households; 200 numbers of biogas plants had been installed within VDC. This VDC also seems as potential sites for biogas development in future.

Figure 7: Map of Dolakha district showing the sampled VDCs

http://en.wikipedia.org/wiki/Charikot


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F. Baglung Baglung district lies in Dhaulagiri zone. It is located in the Western development region. The district with Baglung as its district headquarters covers an area of 1,784 km² and has a population of 268,613 in 2011. It is a hilly district, most of the population settled in the sides of the rivers. Fertile planes situated in the either sides of the rivers are used for farming. It constitutes 59 VDCs, 1 Municipality, 13 Ilakas and 3 electoral constituencies. In consultation with DEEU of Baglung and Biogas Companies; these two VDCs were selected as potential sites. Singana VDC: Total population = 3031 Male = 1257 Female = 1774 Total Households Number = 779 Average Household Size = 3.90 This VDC covers an area of 1,784 km² 8.0176. Majority of population is Brahmin/Chhetri (60%) which is followed by Dalits (25%), Janajati (10%) and others 5%. The main occupation is agricultural activity. Approximate 1560 numbers of cattle/buffaloes are rearing in this VDC. Among 779 HHs; 16 HHs have already been installed biogas plants. It is also seems as potential VDC for biogas promotion in future. Tityang VDC: Total population = 4347 Male = 1976 Female = 2371 Total Households Number = 1024 Average Household Size = 5.14 It is also another surveyed VDC which covers 11 km2 areas including 40% arable land. Majority of population is Brahmin/Chhetri (56.06%) which is followed by Janajati (18.48%), Dalits (16.96%) and others 8.5%. The main occupation is agricultural activity. Approximate 2050 numbers of cattle/buffaloes are available in this VDC. Among 1024 HHs; only 6 HHs have already been installed biogas plants.

Figure 8: Map of Baglung district showing the sampled VDCs

http://en.wikipedia.org/wiki/Baglung


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G. Sarlahi Sarlahi district lies in Janakpur zone. It is located in the Central development region. The district with Malangwa as its district headquarters covers an area of 1,259 km² and has a population of 769, 729 in 2011. It is a Terai district, population growth rate is high. It constitutes 99 VDCs, 1 Municipality, 17 Ilakas and 6 electoral constituencies. Majority of population rely on agriculture

as their main occupation.

Still rural people are using dung cake as primary cooking fuel in some parts of the district. About 4600 numbers of biogas plants within whole district provides clear depiction of biogas development and its potentiality too.

Based on consultation with DEEU of Sarlahi and representatives of biogas companies in district; these two VDCs Hariwan and Lalbandi were selected as potential sites for the study.

Hariwan VDC: Total population = 20350 Male = 10029 Female = 10321 Total Households Number = 1034 Average Household Size = 5.04

Hariwan VDC itself is highly accessible VDC from road networks. It covers 19.55 km2 areas including 16 km2 arable lands. Majority of population is Madeshi (30%) which is followed by Janajati (30%), Brahman/Chhetri (25%), Dalits (5%) and others 10%. The main occupation is agricultural activity. Approximate 3500 numbers of cattle/buffaloes are available in this VDC. Among 1034 HHs; 750 HHs had already been installed biogas plants.

Lalbandi VDC: Total population = 14583 Male = 7100 Female = 7483 Total Households Number = 3295 Average Household Size = 4.43

It covers 14.25 km2 areas including 20% arable lands. Majority of population is Brahman/Chhetri (52.85%) which is followed by Janajati (33.84%), Dalits (7%), Madheshi (4.87%) and others 1.44%. The main occupation is agricultural activity. Approximate 1100 numbers of cattle/buffaloes are available in this VDC. Among 3295 HHs; 600 HHs had already been installed biogas plants.

Figure 9: Map of Sarlahi district showing the sampled VDCs


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H. Saptari Saptari district lies in Sagarmatha zone. It is located in the Eastern development region. The district with Rajbiraj as its district headquarters covers an area of 1,363 km² and has a population of 639, 284 in 2011. It is a Terai district, population growth rate is high. It is well-known for its agricultural output, and is bordered on the east by the massive Sapta Koshi River. It composes 114 VDCs, 1 Municipality, 17 Ilakas and 5 electoral constituencies. It is popular as pocket area for livestock. Still rural people are using dung cake directly as primary cooking fuel. Only 500 numbers of biogas plants have been installed in Saptari district. It provides a clear delineation of biogas development and its potentiality too. In close consultation with DEEU and working biogas companies these two VDCs; Bakdawa and Dharampur were selected for the study. Bakdawa VDC: Total population = 6119 Male = 2919, Female = 3200 Total Households Number = 1134 Average Household Size = 5.40

Majority of population is Janajati (41.72%) which is followed by Brahman/Chhetri (19.13%), Madeshi (18.94%) and others. The main occupation is agricultural activity. Approximate 2625 numbers of cattle/buffaloes are available in this VDC. Among 1134 HHs; 50 HHs had already been installed biogas plants.

Dharampur VDC: Total population = 5545 Male = 2630, Female =2915 Total Households Number = 1132 Average Household Size = 4.90

It covers 610.68 hectares of total area. Majority of population is Janajati which is followed by Madeshi and others. The main occupation is agricultural activity. Approximate 2127 numbers of cattle/buffaloes are available in this VDC. Among 1132 HHs; 20 HHs had already been installed biogas plants. This VDC also seems very potential for biogas development.

Figure 10 : Map of Saptari district showing the sampled VDCs


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I. Panchthar Panchthar district lies in Mechi zone. It is located in the Eastern development region. The district with Panchthar as its district headquarters covers an area of 1,241 km² and has a population of 191, 817 in 2011. It is a hilly district; population growth trend is decreasing due to high migration rates from district. Its majority population is that of Kirat (Limbu, Rais), other ethnic groups and hill castes. It composes 41 VDCs, 11 Ilakas and 2 electoral constituencies.

People in the district are mainly depending upon firewood for cooking fuel. As compared with supply the demand of energy is very high. Only 681 numbers of biogas plants had been installed till 2012.

In consultation with DEEU of Panchthar district these two Bharapa and Amarpur VDCs were selected as potential sample sites for field visit.

Bharapa VDC: Total population = 6893 Male = 3183 Female = 3710 Total Households Number = 1442 Average Household Size = 4.78 Livestock number = Approx. 2400

Majority of population is Janajati (50%) which is followed by Brahman/Chhetri (25%), Dalits (14.2%) and others. Majority of population still rely on agriculture system as their main occupation. The majority of population had less information about biogas technologies although 52 numbers of biogas plants have already been installed in this VDC. Amarpur VDC: Total population = 6343 Male = 2926, Female = 3417 Total Households Number = 1334 Average Household Size = 4.75 Livestock Number = Approx. 2350 As whispered local people; livestock is directly linked with their income activities. Agriculture is subsistence type in nature and majority still rely on that system. Majority of population is Janajati group (Kirat, Limbu, Rai etc). Literacy rate is about 56%. Among 1334 HHs, only 20 numbers of biogas plants had been installed which indicate the possibility and potentiality of biogas promotion in future.

Figure 11: Map of Panchthar district showing the sampled VDCs


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4.2 Interaction with different stakeholders Stakeholders such as DEEUs of respective DDC, Biogas Companies, Regional Offices of NBPA, Local Micro Finance Institutions, Users and Non-Users were interviewed to collect the information. It was assumed that; the first hand information is more noteworthy for the market mapping study of biogas.

4.2.1 DDC/DEEUs Study team has interviewed with the officials of all respective DEEUs of surveyed districts. During that visits the potentiality of biogas development was discussed thoroughly from district level viewpoints.

Demand and supply system of energy is in imbalanced condition. Majority of rural population is still relying on fuelwood as a major cooking fuel. People are in need of sustainable source of energy. All DEEUs of respective districts were agreed that these surveyed districts have high possibility of biogas development. Apart from Kanchanpur, other districts were highly demanded for the regularity of biogas companies in their working areas. In southern parts of Kapilbastu and Sarlahi the presence of biogas companies seems very poor. They had suggested that the rural areas are more potential areas for biogas development.

Information about biogas technology and their subsidy mechanism is very low. For this purpose, the capacity of biogas companies at local level to be strengthen by providing more focus to enhance the skills of mason and supervisors. Also provide the complete information to customers through promotional activities in upcoming days. The summary tables and list of interviewed personnel are attached in Annex part of this report.

4.2.2 Biogas Companies Study team has also interviewed with different 9 biogas companies/branches which are working in the surveyed districts. There are about 110 biogas construction/manufacture companies whole over the country. This sample size may not represent the whole companies however the survey was mainly aimed to assess their capacities, local needs and markets. All respondents of different biogas companies/branches were agreed that these surveyed districts have high possibility of biogas development as compared with demand the installation of biogas plants so far. It is mainly due to the reason of low capacity (minimum number of masons and supervisor) of their branches. With regard to the query related to the potential customers of biogas companies; the majority of respondents said that those rural families having enough cattle which is capability to buy the plants are the potential customers. Beside this, those having scarcity of fuelwood in their local areas, interest to have good organic fertilizer, toilets, clean environment in the kitchen, time saving and health benefits are other associated reasons to drive local people towards biogas installation. Profile of the potential customers is another factor to achieve the national target in biogas development. Based on surveyed data; the majority of respondents said that Janajati (56%) are major which is followed by Brahmin/Chhetri 22% whereas 22% said both Janajati and


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Brahmin/Chhetri community are potential customers for biogas companies. As shown in result; still Madeshi community is far from biogas program. They had less awareness and information regarding the biogas technology and its benefits.

Figure 12: Potential customers through ethnic profile

As shown in the figure 13; the biogas technology is popular among the middle class family. About 11% poor communities have access to biogas plants whereas high class families either use LPG or Electricity for cooking their foods.

Figure 13: Potential customers through economic status


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From geological perspective; accessibility factor is the most important to identify the potential customers. Majority of respondents (67%) said that potential customers are in accessible areas whereas 33% said that rural/remote areas are potential sites.

Figure 14: Potential customers through geographic distance

There was no remarkable demand of biogas products from local customers to the biogas companies during last five years. Marketing of biogas products was a challenging task for the established biogas companies. Now the situation of biogas market has been changed. While talking about the demand of biogas, 100 % respondents said that there is good demand from potential customers.

Figure 15: Demand of biogas in the district

Regular visits by the biogas company are instrumental in maintaining the biogas systems in proper condition to ensure that they operate well. Biogas companies provide 3 years guarantee


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on the structural components of the biogas installed by them. Adequacy of services is important to identify and solve any problems encountered immediately for both pre guarantee and post guarantee of biogas plants installation. In a question seeking companies’ response on services provided by them, 2 respondents answered that they had visit twice in a year whereas 7 respondents said that they had visit once a year during pre guarantee period. While asking about post guarantee services 100% reported that the services provided only when companies were requested.

Figure 16: Services provided by the biogas companies

Price system for services provided by the biogas companies is directly associated with their routine visits to the users. If they are getting money then there is chances to make the services better. In a question seeking about their charge in a year, five respondents responded that they have charged more than Rs. 500, two respondents answered for Rs. 200-500, two responded for less than Rs 200 whereas another two respondents said they are providing services freely.

Figure 17: Service charge by Biogas Company in a year


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The most popular model is modified GGC 2047 and the size of the plant among the buyers is 6m3. Based on field information; the operational status of already installed biogas plants seems more satisfactory. As reported data; 80% plants in Doti and Saptari are in operational condition whereas 99% biogas plants in Baglung district are working properly.

Figure 18: Operational condition of biogas plants

Among other biogas feeding materials, the majority of the households use night soils. Since the survey reveals there is increasing trend of toilet connection with their biogas plants. The use of pig dung, poultry litter and vegetable residues as other biogas feeding materials is very limited. Regarding the regualiry and adequately feed the plant by their customers; majority of the companies (89%) gave satisfactory answer to this question whereas 11% opposed that answer.

Figure 19: Customers feed the plant regularly and adequately


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Regarding the supply side; almost all respondents claimed that they are capable to provide service delivery as per demand.

Figure 20: Company’s capability to ensure the supply side

There are several biogas companies which have already been listed as pre-qualified companies. These companies are providing services to the target customers through their head office, branch, sub branch and contact offices all over the country. There is high variation among the companies. The large companies have more than 100 numbers of human resources whereas small companies have very limited numbers of human resources. It has been observed that large biogas company is rendering its services from estern to far western regions of Nepal. Small companies are providing their services to the beneficiaries in very limited areas.There are several branches/sub-branches of biogas companies in surveyed districts but no regularity on their services. Among the surveyed nine companies; few were their head offices and few were branches. They have practice of seasonal hiring of trained masons and supervisors as per need. Minimum number of masons and supervisors are available in branches as compared with their head offices. During field visit; maximum 22 numbers and minimum 3 numbers of masons were recorded.

Supervisors varies from 1 to 7 numbers. Number of masons and supervisors effects not only for promotion of new biogas plants but also for after sales services in that wrking areas. Almost all companies have misconception that their duty of after sales services is only for post installation three years. But even after three years the users need their technical supports to run their plants and users are ready to pay for these services too.

Figure 21: Human Resource Availability in Biogas Company/Branches


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The biogas market has good potential but also seems more competitive among the companies. Capacity development of companies need to be enhanced for biogas sector development. Administrative team is responsible for business deals and marketing whereas masons and supervisors are involved in installation and supervision of biogas plants in the field. It is mandatory that masons and supervisors must be qualified from BSP-Nepal. Almost all respondents demanded capacity strenghtening trainings to masons and supervisor. Those persons must have good skills and knowledge on plant construction. Also they must have general idea about the costing, financial arrangement and human resource retention etc for the sustainability of biogas companies. Both the managerial and technical aspects should be considered for the capacity development for sustainable biogas promotion. Two respondents were also demanded for managerial level training as well.

Figure 22: Demand of capacity development in different level

The survey shows that the majority companies demanded for the supports on extension and promotional activities which is followed by the operation and maintenance as second prioritized area. Similarly, administration and finance shared third position whereas technology development is another fourth area. Also they need capacity development on infrastructure and others activities however is least prioritized.

Figure 23: Priority Areas of Biogas Company for Capacity Development


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The survey tried to capture the need of additional biogas company branches/head office; 56% respondents said that it is sufficient to capture the market (Doti, Baglung, Dolakha, Sarlahi and Panchthar)and fulfill their demand whereas 44% said demand is high so additional companies could play significant roles to achieve national targets(Kanchanpur, Dailekh, Kapilbastu and Saptari). Their major concern was that the several companies placed with their branches but not working properly at local level. They also claimed that if all existing companies will work in harmonizing manner then it will be sufficient to trap the market.

Figure 24: Need of additional Biogas companies/branches

Study team also asked to biogas companies’ personnel about the supplimentary organization in the district in order to promote the biogas; about 78% responded that there are such type organizations (eg. RDSC-Doti, CFUGs- Kapilbastu, Sabal Nepal- Saptari, NTNC/WWF Nepal Hariyo Ban- Kanchanpur, Green Club Society and others) whereas 22% said that they don’t have any idea about this type organizations. Although these supplimetary organizations have played crucial roles to provide trainings on users level, awareness raising programs, loan activites and other supports.

Figure 25: Presence of supplementary organization


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Orientation training about the biogas technoogy and its benefits to the potential customers is important ensuring the market. However, majority of respondents 70% (Saptari, Sarlahi, Dailekh, Baglung, Kapilbastu and Kanchanpur) responded that there is no such practice of orientation training before installation whereas 30% (Doti, Dolakha and Panchthar) said that it is a part of marketing before installation.

Figure 26: Orientation training to the potential customers

Biogas has played an important role and in order to provide maximum benefit to rural households and to mitigate the environmental degradation and to meet the household energy requirements. There is already provision of subsidy amount to make biogas program more effective among the minor economical strata of rural families. A query related to customer’s awareness level with government subsidy policy; 78% respondents said that customers are well known about the subsidy policy whereas 22% (respondents from Saptari and Kapilbastu districts) responded that there is no such information.

Figure 27: Customer’s awareness about biogas subsidy


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Promotional materials could play crucial role to strengthen market for biogas companies. Among the respondents 56% (Dailekh, Baglung, Panchthar, Doti and Kanchanpur districts)said they have used such promotional measures whereas 44% responded there is no prctice of promotional materials(Saptari, Sarlahi, Dolakha and Kapilbastu districts). The main promotional procedures are printed materials like Pamphlet, brochures, calenders etc. Very few companies are using video documentary, FM radio, social medias for promotional activities.

Figure 28: Promotional materials by Biogas companies

Bio-slurry is a major by-product of biogas process within a biogas digester when the feed materials are digested and come up from the outlet. Three types of slurry application have been recognized as: i) slurry as it is; ii) slurry in the form of compost and iii) slurry after drying. A query related to trend of using slurry manure; they responded the use of slurry in majority is highest in type of “making compost” (Saptari, Sarlahi, Dolakha, Baglung, Pachthar and Kapilbastu district) which is followed by the use of slurry after drying (Dailekh, Doti and Kanchanpur).

Figure 29: Bio-slurry utilization


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Biogas users received the subsidy in the form of materials and construction. The sources of cash contribution at users’ level are a very mixture nature. However, they have significant contribution either in form of labor works or cash. Loan from micro-finance/financing institutions and additional subsidy are also encouraging to invest for biogas development in rural parts.

Figure 30: Financing for construction of biogas plants

AEPC offer subsidy support for the potential households that are willing to install biogas plants even when they are not able to fully pay the costs. As provided data; an average 40% of total construction cost is covered by subsidy. Self contribution for biogas installation also seems satisfactory for all surveyed districts. Those who approached loan amount from development banks/finance are low as compared with their internal resources. The survey illustrates that subsidy has been an important and widespread tool in increasing demand of biogas in different geological locations. Almost all companies said that; with current increased subsidy there is high demand of biogas plants nowadays. 4.2.3 Nepal Biogas Promotion Association (NBPA) NBPA is an umbrella organization under which several biogas construction companies as well as biogas appliances manufacturing companies are affiliated. The construction companies are directly involved in demand creation through marketing approach, installation of plants as well as providing after sales services. In similar way, manufacturing companies produce biogas appliances as technical/quality standards approved by AEPC/BSP-Nepal. NBPA has its central office in Kathmandu and six regional offices throughout the country. NBPA through its regional offices offers a wide range of services, such as trainings, technical support and other supports to their member companies in respective districts. Study team has also interviewed with regional offices of NBPA in different locations.


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All personnel were agreed that these surveyed districts have huge potentiality of biogas development for coming days. Basically rural households still depend on fuelwood as primary sources of cooking energy. Also community forest has not more allowed for collecting fuelwood regularly. Most of the households have cattle and they can’t afford the LPG or Kerosene. Indoor air pollution issues along with health and sanitation is another factor so people are ready to switch on new technology. It can be said that biogas should be promoted in sustainable manner. The following are the major reasons to attract people towards biogas technology;

Restriction of more fuelwood collection from community forest/fuelwood scarcity High price of LPG or Kerosene Indoor air pollution free (health and sanitation) Subsidy delivery and financial supports Bio-slurry as organic fertilizer Having large number of cattle/buffaloes

They were agreed on the need of capacity development of biogas companies so that supply side can be ensured. There is need of more promotional activities along with orientation trainings to the potential customers. Also the skilled human resources and well managed company or their branches to be established. Hilly districts and southern belts of Terai have good potential of biogas development.

4.2.4 Micro Finance Institutions/Credit Finance The Agricultural Development Bank (ADB/N) has been the most important bank for biogas loans since beginning of the biogas programme in 1975/76. At the moment, various micro finance, cooperatives and development banks are showing their interest on financing to the biogas sector. MFIs are providing loans directly to the farmers or through biogas companies as well. AEPC had also distributed loan through Biogas Credit Fund to MFIs. MFIs are also playing the significant roles in promotion of domestic biogas plants in Nepal. Study team has also interviewed few MFIs personnel to identify the scope of MFIs in biogas sector. As said those people who are able to opt for loan and also can pay back are their potential customers. During our field visit; those surveyed financial institutions (Development banks and Cooperatives) made commitment to work in biogas sector by providing loan for needy people in consultation with biogas companies.

4.2.5 Users and Non-users Level Information Biogas technology had previously been introduced in 1955 and at the moment developed in a progressive way. Although the possibility of biogas plants development seems very high as compared with its current installed numbers. Estimation of the potentiality of biogas plant in the country needs to consider wide range of parameters like technologies, number of cattle, human population, other feed materials, land availability, economic viability; energy demand for cooking purpose, climatic conditions and others. Thus, study team has realized that the household level information from both users and non-users will help to draw a national projection in future. Among the surveyed 18 VDCs of different 9 districts from Terai and Hill regions; altogether 72


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households including 36 users and 36 non-users households were selected for the survey. The following were the major findings of household survey;

4.2.5.1 Socio-economic Information The following table 3 shows the total population of users and non-users households in the surveyed VDCs. The total number of 36 users’ households was 253 whereas among 36 HHs of non-users total population was 229.

Table 3: Total population of surveyed households

Districts Total Population (Biogas Users HHs) Total Population (Biogas Non-users HHs) Hills 146 134 Terai 107 95 Total 253 229

The overall illiteracy rate among the surveyed 36 users’ household is 22.53% whereas non-users shares 28.82%.

Table 4: Education status of surveyed households

As discussed above, one of the factors influencing the biogas plant installation is the number of cattle that a household owns. Table 5 shows that the households in both Hill and Terai regions own an average of 3 cattle.

Table 5: Number of livestock in surveyed households Regions Livestock Number Rearing type Biogas User HHs Biogas Non-users HHs

Hills

Cows/Oxen Open grazed 11 12 Stall fed 43 29 Total 54 41

Buffaloes Open grazed 2 3 Stall fed 25 21 Total 27 24

Total Open grazed 13 15 Stall fed 68 50 Total 81 65

Terai



Districts Biogas Users HHs Biogas Non-users HHs Illiterate % Literate % Illiterate % Literate %

Hills 31 21.23 115 78.77 44 32.84 90 67.16 Terai 26 24.30 81 75.70 22 23.16 73 76.84 Total 57 22.53 196 77.47 66 28.82 163 71.18


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Total




As compared with biogas users households the land holding status of non-users households in average seems very low.

Table 6: Average land holding status

Regions Land Holdings (Biogas Users) Land Holdings (Biogas Non-users) Arable Land (Ropani) Total (Ropani) Arable Land (Ropani) Total (Ropani)

Hills 14.45 18.75 9.11 11.1 Terai 13.7 18.32 3.81 4.55 Total 14.12 18.56 6.75 8.26

More than half of all surveyed households produce their own food which is sufficient for the family for up to six months while another one-third have food sufficiency for the whole year. Among biogas users’ 6 households have surplus food production whereas 2 households of non-users family have surplus production.

Table 7: Food sufficiency status

Region Food sufficiency Frequency Biogas Users (%) Frequency Biogas Non-users (%)

Hills

Up to 3 months 0 0 1 5 3 – 6 months 8 40 15 75 6-12 months 9 45 3 15 Surplus 3 15 1 5 Total 20 100 20 100

Terai

Up to 3 months 3 18.75 5 31.25 3 – 6 months 9 56.25 6 37.5 6-12 months 2 12.5 4 25 Surplus 2 12.5 1 6.25 Total 16 100 16 100

Total

Up to 3 months 3 8.33 6 16.67 3 – 6 months 17 47.22 21 58.33 6-12 months 11 30.56 7 19.44 Surplus 5 13.89 2 5.56 Total 36 100 36 100


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Majority of users’ households (41.67%) have monthly income of Rs. 10,001 to 20,000. But the majority of non-users’ households (44.44%) have monthly income of Rs. 5,001 to 10,000. 50% of users’ households in Hill have less than Rs. 20,000 monthly incomes whereas 43.75% have less than Rs. 10,000 in Terai region. Similarly, 35% households of non-users in Hill have less than Rs. 10,000 whereas 56.25% have less than Rs. 10,000 in Terai region.

Table 8: Average Monthly Income

Regions Average Monthly Income Frequency Biogas Users % Frequency Biogas Non-users %

Hills

Less than 5000 NRs/Month 1 5 3 15 Less than 10,000 NRs/Month 5 25 7 35 Less than 20,000 NRs/Month 10 50 6 30 More than 20,000 NRs/Month 4 20 4 20

Total 20 100 20 100

Terai

Less than 5000 NRs/Month 1 6.25 2 12.5 Less than 10,000 NRs/Month 7 43.75 9 56.25 Less than 20,000 NRs/Month 5 31.25 4 25 More than 20,000 NRs/Month 3 18.75 1 6.25

Total 16 100 16 100

Total

Less than 5000 NRs/Month 2 5.56 5 13.89 Less than 10,000 NRs/Month 12 33.33 16 44.44 Less than 20,000 NRs/Month 15 41.67 10 27.78 More than 20,000 NRs/Month 7 19.44 5 13.89

Total 36 100 36 100

Agriculture is the main family profession; 91.67% of users households involved in this profession with 100% in Hill and 81.25% in Terai region. Similarly, 86.11% of non-users households involved in agriculture with 100% in Hill and 86.11% in Terai region. Very few households are involved in other activities such as foreign employment, business, service and working as labor.

Table 9: Main income sources of surveyed households

Regions Income sources No of responses Biogas Users (%) Number of

responses Biogas Non-users (%)

Hills

Agriculture 20 100.00 20 100.00 Livestock 12 60.00 13 65.00 Remittance 1 5.00 5 25.00 Govt. Service 10 50.00 1 5.00 Private Job 3 15.00 2 10.00 Business 1 5.00 1 5.00 Labor works 2 10.00 5 25.00 Others 1 5.00 8 40.00

Terai Agriculture 13 81.25 11 68.75 Livestock 8 50.00 9 56.25 Remittance 3 18.75 2 12.50


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Govt. Service 3 18.75 2 12.50 Private Job 2 12.50 1 6.25 Business 2 12.50 2 12.50 Labor works 1 6.25 3 18.75 Others 2 12.50 8 50.00

Total

Agriculture 33 91.67 31 86.11 Livestock 20 55.56 22 61.11 Remittance 4 11.11 7 19.44 Govt. Service 13 36.11 3 8.33 Private Job 5 13.89 3 8.33 Business 3 8.33 3 8.33 Labor works 3 8.33 8 8.60 Others 3 8.33 16 17.20

4.2.5.2 Energy Consumption Practice The fuelwood and other energy consumption pattern of biogas users’ households are low as compared with non-users households. Fuelwood consumption of biogas users households per annum in an average 4581.75 kg whereas non-users’ households have an average of 5792.85 kg. It can be said that, biogas plants have significant contribution for fuelwood and other energy sources saving.

Table 10: Annual average of surveyed households’ energy consumption

Regions Energy type Biogas Users (HHs) Biogas Non-users (HHs)

Hills

Fuel wood consumption Kg/Year 4581.75 5792.85 Agriculture Residue consumption Kg/Year 117 243 Kerosene consumption Ltr/Year 1.5 4.05 Cow dung consumption Kg/Year 0 0 LPG consumption cyl/Year 6 3 Saw dust consumption Kg/Year 0 0

Terai

Fuel wood consumption Kg/Year 1580.16 2450.63 Agriculture Residue consumption Kg/Year 241.69 407.81 Kerosene consumption Ltr/Year 5.25 4.21 Cow dung consumption Kg/Year 0 207.18 LPG consumption cyl/Year 10 6 Saw dust consumption Kg/Year 0 0

Total

Fuel wood consumption Kg/Year 3247.71 4307.47 Agriculture Residue consumption Kg/Year 172.42 216.25 Kerosene consumption Ltr/Year 3.17 0 Cow dung consumption Kg/Year 0 283.34 LPG consumption cyl/Year 8 8 Saw dust consumption Kg/Year 0 0


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Both biogas users and no-users households have practice of traditional cook stoves for cooking purpose. Majority of non-users’ households (63.27%) with 51.61% households in Hill and 63.27% households in Terai are still using traditional fireplace for cooking purpose. Also rural families have used ICS in some extents.

Table 11: Types of other stoves used for cooking purpose

Regions Types of Stoves No of responses

Biogas Users HHs (%)

No of responses

Biogas Non-Users HHs (%)

Hills

Traditional fireplace 12 50 16 51.61 Mud stove without chimney 4 16.67 5 16.13 Mud type ICS 2 8.33 5 16.13 Metallic ICS 1 4.17 0 0.00 LPG Stove 5 20.83 5 16.13

Terai

Traditional fireplace 14 66.67 15 83.33 Mud stove without chimney 0 0.00 0 0.00 Mud type ICS 1 4.76 0 0.00 Metallic ICS 0 0.00 0 0.00 LPG Stove 6 28.57 3 16.67

Total

Traditional fireplace 26 57.78 31 63.27 Mud stove without chimney 4 8.89 5 10.20 Mud type ICS 3 6.67 5 10.20 Metallic ICS 1 2.22 0 0.00 LPG Stove 11 24.44 8 16.33

A query related to the complete satisfaction with the performance of cooking stoves for both biogas users and non-users. 90% biogas users in Hill were satisfied whereas 75% biogas non-users were not satisfied with their cooking technologies. Similarly, 100% biogas users were satisfied in Terai whereas 50% of non-users households were satisfied due to ICS and LPG stoves.

Table 12: Complete satisfaction with the performance of cooking stoves

Regions Satisfaction with

their cooking stoves

Frequency Biogas Users HHs % Frequency Biogas Non-

users HHs %

Hills Yes 18 90 5 25

No 2 10 15 75

Total 20 100 20 100

Terai Yes 16 100 8 50

No 0 0 8 50

Total 16 100 16 100

Total Yes 34 94.44 13 36.11

No 2 5.56 23 63.89

Total 36 100 36 100


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Survey was focused to identify the willingness of non-user respondents towards new cooking technology (biogas); the majority (80.56%) which includes 85% in Hill and 75% in Terai region. The few were not interested for biogas due to several reasons such as use of LPG, less number of cattle, no enough money etc.

Table 13: Readiness to switch to another new cooking technology Regions Frequency Yes (% age) Frequency No (% age)

Hills 17 85 3 15 Terai 12 75 4 25 Total 29 80.56 7 19.44

Majority of households are depending on community forest. Private forests have also significant contribution for fuelwood supply. This could be primarily because of the community forest strict policy that restricts felling down of trees.

Table 14: Sources of fuel wood

Regions Sources of fuel wood No of responses Biogas Users % No of

responses Biogas non-users %

Hills

Government forest 0 0.00 2 6.25

Community forest 14 53.85 17 53.13

Private forest 8 30.77 9 28.13

Market /vendors 0 0.00 1 3.13

Others 4 15.38 3 9.38

Terai





Others 0 0.00 0 0.00

Total





Others 4 9.09 3 5.66

An average distance to reach forest areas among the users of Terai region is about 3.36 km whereas the distance to reach forest area in Hill region in average is 7.36 km. It is mainly due to accessibility of road networks and forest as well.

Table 15: Average distance to reach forest area in km

Regions Biogas Users Hills 7.36 Terai 3.39 Total 5.59


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The experience of users and non-users in assessing forest and collecting fuelwood is quite similar. Increase in collection time illustrates either the unavailability of firewood or only those of very low quality like twigs and branches are available in forest. The fuelwood collection time per Bhari is high in Terai as compared with Hills.

Table 16: Average time for collecting fuelwood in minute

Regions Biogas Users Biogas Non-users Mean SD Mean SD

Hills 132.5 129.21 145.25 115.80 Terai 166.88 81.95 198.75 28.72 Total 147.78 119.47 169.03 91.44

The responsibility of collecting fuelwood is shared by female, male, children and paid labor as well. However, high percentage (50%) of responsibility shared by women.

Table 17: Responsibility of fuel wood collection

Regions Responsibility of fuel wood collection

No of respon

ses

Biogas Users HHs %

No of respon

ses

Biogas non-users HHs %

Hills

Male 13 43.33 12 36.36 Female 14 46.67 17 51.52 Children 0 0.00 4 12.12 Paid Labor 3 10.00 0 0.00

Terai

Male 7 25 16 69.57 Female 15 53.57 4 17.39 Children 4 14.29 3 13.04 Paid Labor 2 7.14 0 0.00

Total

Male 20 34.48 28 50 Female 29 50.00 21 37.5 Children 4 6.90 7 12.5 Paid Labor 5 8.62 0 0

A query to the biogas users about the impacts on fuelwood consumption; In Hills 35% said that considerable degenerated which is followed by forest/trees were not degenerated at all (35%) and excessively degenerated (30%). Similarly, In Terai 62.5% said that considerable degenerated which is followed by forest/trees were not degenerated at all (12.5%) and excessively degenerated (25%).

Table 18: Impacts on fuelwood consumption

Regions

Biogas Users

Excessively degenerated Considerable degenerated

Forest/trees were not degenerated at all

Frequency % Frequency % Frequency %

Hills 6 30 7 35 7 35 Terai 4 25 10 62.5 2 12.5 Total 10 27.78 17 47.22 9 25


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The following table shows the change in forest coverage areas. Majority of households 63.89 % said that forest coverage area has been decreased. It includes 50% in Hills and 65% in Terai region.

Table 19: Change in forest coverage areas

Regions Biogas Users

Increased Decreased Same Frequency % Frequency % Frequency %

Hills 5 25 10 50 5 25 Terai 2 12.5 13 65 1 6.25 Total 7 19.44 23 63.89 6 16.67

For biogas promotion; information dissemination is very essential. Based on interviews with biogas users, 42.5% users were informed about biogas technology through biogas companies whereas 35% of respondents said that they knew about technology through their friend/relatives.

Table 20: Information about biogas plants

Regions Information Frequency % of responses

Hills

Biogas Companies 13 56.52 Government Official 1 4.35 Service provider 1 4.35 NGOs/CBOs 1 4.35 Community leaders 1 4.35 Friends/relatives 4 17.39 Others 2 8.70

Terai

Biogas Companies 4 23.53 Government Official 0 0.00 Service provider 0 0.00 NGOs/CBOs 1 5.88 Community leaders 1 5.88 Friends/relatives 10 58.82 Others 1 5.88

Total

Biogas Companies 17 42.5 Government Official 1 2.5 Service provider 1 2.5 NGOs/CBOs 2 5 Community leaders 2 5 Friends/relatives 14 35 Others 3 7.5


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A query related to the major benefits from biogas, the majority of respondents gave multiple answers. These were time saving, easy operation, use of bio-slurry, clean environment, health benefits; reduce work drudgery and saving the cost of energy.

Table 21: Major benefits from biogas

Regions Information Frequency % of responses

Hills

Time saving 18 32.73 Easy to operate 9 16.36 Bio-slurry application 2 3.64 Income generating 2 3.64 Clean Environment 14 25.45 health benefits 7 12.73 Others 3 5.45

Terai

Time saving 14 34.15 Easy to operate 6 14.63 Bio-slurry application 6 14.63 Income generating 3 7.32 Clean Environment 5 12.20 health benefits 3 7.32 Others 4 9.76

Total

Time saving 32 33.33 Easy to operate 15 15.63 Bio-slurry application 8 8.33

Income generating 5 5.21

Clean Environment 19 19.79

health benefits 10 10.42

Others 7 7.29

The following table shows the factors influence the buying of customers. Most of the respondents gave multiple answers. In Hill; 54.55% users said that finance is primary factor whereas only 35.71% users of Terai agreed. Need or willingness is also another influencing factor for the customers.

Table 22: Factors influence the buying of the customers

Regions Factors Frequency % of responses

Hills

Finance 18 54.55 Cattle number 6 18.18 Need or willingness 8 24.24 Others 1 3.03

Terai Finance 10 35.71 Cattle number 7 25.00 Need or willingness 10 35.71


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Others 1 3.57

Total Finance 28 45.90 Cattle number 13 21.31 Need or willingness 18 29.51 Others 2 3.28

Biogas users’ households were asked about their biogas installation cost. For Hill, the maximum cost for installation was Rs. 70,000; minimum cost for installation was Rs. 36,700 and the average cost Rs. 47085. Similarly, the maximum cost for installation was Rs. 65,000; minimum cost for installation was Rs. 25, 000 and the average cost Rs. 47085 in Terai. These values also include the subsidy amount.

Table 23: Average cost of biogas installation

Regions Maximum Average Minimum Hills 70000 47085 36700

Terai 65000 47085 25000

Total 70000 47085 25000

With query of convenient price of biogas plants; users said that the current installation cost is so high. As their demand; an average Rs. 25,550 is convenient price for Hills and Rs. 28700 for Terai region.

Table 24: Convenient price of biogas installation

Regions Maximum Average Minimum Hills 60000 25550 15000 Terai 45000 28700 27500

Service delivery by the biogas companies are important factors for the biogas users as well as potential consumers to feel happy and satisfied with biogas plants and companies too. The users were found satisfied with the biogas companies.

Table 25: Service delivery by Biogas Company

Regions Yes No Hills 20 0 Terai 16 0

The recommendations of biogas users to their neighbors, relatives and friends to install biogas plants could play crucial role for market development in biogas sector. Among the user respondents, 90% users from Hill and 100% users from Terai were positive to recommend the biogas technology for potential consumers in their surroundings.


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Table 26: User’s recommendation to others

Regions Yes No Hills 18 2 Terai 16 0

4.2.5.3 Demand and Possibility of Biogas A query was asked to the user respondents about the trends in biogas demand; majority of users were agreed that the demand of biogas is increased as compared with past few years.

Table 27: Trends in demand of biogas

Regions Biogas Users

Increased Decreased Don’t know Hills 14 1 5 Terai 10 5 1 Total 24 6 6

Respondents of all sampled VDCs were asked about the possibility of biogas development in their respective VDC; almost all users said that there is further possibility of biogas development in upcoming days. Similarly, 91.67% non-user respondents including 90% from Hill and 93.75% from Terai said that there is possibility of biogas development in their respective VDCs.

Table 28: Possibility of Biogas Development in their VDC from users’ and non-users’ perspective

Regions Yes % No % Yes % No % Hills 20 100 0 0.00 18 90 2 10

Terai 16 100 0 0.00 15 93.75 1 6.25

Total 36 100 0 0.00 33 91.67 3 8.33

Regarding the information about the biogas companies in their district, all user respondents were known about the biogas companies. However 36.11% of non-user respondents including 45% in Hill and 25% in Terai were without information.

Table 29: Knowing about the working biogas companies in their district

Regions Biogas Users Biogas Non-uses

Yes % No % Yes % No %

Hills 20 100 0 0.00 11 55 9 45

Terai 16 100 0 0.00 12 75 4 25

Total 36 100 0 0.00 23 63.89 13 36.11

The following table shows the reasons for not installing biogas plants. Majority of non-users 61.90% (which includes 64% in Hill and 58.82% in Terai) said that main reason for not installing


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is lack of money. Easily available fuelwood source is another reason which shares about 11.90%. The other associated reasons are problem of land, less number of cattle, no information etc.

Table 30: Reasons for not installing biogas plants

Regions Reasons Frequency Percentage

Hills

Lack of money 16 64 Enough fuel wood 3 12 Problems of land 3 12 No cattle 0 0 Others 3 12

Terai

Lack of money 10 58.82 Enough fuel wood 2 11.76 Problems of land 1 5.88 No cattle 1 5.88 Others 3 17.65

Total

Lack of money 26 61.90 Enough fuel wood 5 11.90 Problems of land 4 9.52 No cattle 1 2.38 Others 6 14.29

Three basic conditions were provided to select the one among the non-users; majority of respondents 52.78% (which includes 40% in Hill and 68.75% in Terai) said that they will install biogas if additional support along with subsidy and credit provided. Similarly, 36.11% respondents (which include 50% in Hill and 18.75% in Terai) are ready to install biogas if both subsidy and credits are available. But 11.11% of total non-user respondents including 10% from Hill and 12.5% from Terai are ready to install biogas through available subsidy only.

Table 31: Condition to install a biogas plant


Hills Subsidy only 2 10 Both subsidy and credits are available 10 50 Additional support along with subsidy and credit 8 40

Terai Subsidy only 2 12.5 Both subsidy and credits are available 3 18.75 Additional support along with subsidy and credit 11 68.75

Total Subsidy only 4 11.11 Both subsidy and credits are available 13 36.11 Additional support along with subsidy and credit 19 52.78


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A query was asked to non-users about the factors influences the buying of customers; finance/installation cost is major factor as said 54.10% of total respondents (which include 52.94% in Hill and 55.56% in Terai).

Table 32: Factors influences the buying of customers


Hills

Cost of Installation/finance 18 52.94 Skilled human resources 2 5.88 Service delivery on time 0 0.00 Awareness level 8 23.53 Others 6 17.65

Terai


Total



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5. MARKET MAPPING Several attempts were made to identify the resource potential for the biogas development whole over the country. The market mapping is based on primary findings from surveyed districts and secondary information collected from various sources. The major consideration is given for the potential of biogas energy that uses animal dung and night soil as primary feedstock at household level.

Market Oriented Approach The aim of the programme is to have large numbers of customers in rural areas using biogas technology and enjoying its benefits. A market oriented approach places the customer at the core of the programme; all of the programme activities are oriented towards ensuring they have a high quality plant at a price they can afford.

The quality control mechanism is one of the keys to this. Quality control does not only apply to the need for technical quality, although this is an essential part of the way the programme is run. The quality of the marketing of the technology is also important. The sales people from the installation companies need to relate effectively to the customers and help them to make the decisions that will ensure they have plants that meet their expectations.

Activities in areas with developed markets: In areas with a strong demand for biogas plants, biogas companies and MFIs undertake the bulk of promotion and marketing via leaflets, brochures, posters, biogas models, radio and television promotion, and exhibitions. BSP-Nepal supports these activities with participation in trade exhibitions, market development studies and the celebration of major milestones in the past. Activities in areas with undeveloped markets: In areas where the market is undeveloped, BSP-Nepal works with local governments and national, regional or local networks of NGOs, community-based organizations (CBOs) and cooperatives to create demand through awareness building, training, demonstrations and piloting. Additional support is also provided (a) to biogas companies to partially cover their losses or risks as first movers, and (b) to the users to partially cover their risks as first adaptors. Once the basic awareness is created, the biogas companies move in to assume promotion and marketing functions.


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Figure 31: Market oriented approach

Biogas market appraisal need to be supplemented with the following model (if necessary with to come up with quantitative and qualitative information on the state, future potentials and problems regarding promotion and diffusion of biogas technology in the district and villages. The model can be used at the district as well as village level appraisals. Marketing of biogas depends on the following issues: Feasibility (techno-socio-economic) There should be a feasibility study considering the technical, social and economic aspect of the plant. This has included the number of cattle available with available quantity of dung, land holdings of the potential user and their income with their number of family members. Promotion and extension Installation companies, line agencies should develop promotional materials such as leaflet, brochure, calendar, newsletter, activities report, operation and maintenance manual, installation manual, video film and so on in order to reflect good market. Incentives to users In order to boost the programme, incentives such as one computer, one stove or five gas valves or cash reward to be given to the best company or best person of the year or best users of the year. This will also help in creating good and competitive market.


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Favorable government policy on Subsidy As specified above there should be favorable government subsidy policy for the installation of biogas plant in the country. In order to avoid mis-utilization of the subsidy there should be a good mechanism of monitoring and evaluation of the programme and should develop reward and punishment in the system. Availability of loans from the banks/micro financing institutes Commercial banks, financial institutions or micro finance institutions should provide easy medium term loan (5-7 years) to the users or owner for the installation of biogas plants at low interest rate to create more demand. Good after sales services To create good market, there should be good after sales services. If the users do not get good services, the company will spoil their market in that area. Hence, they must be very conscious about their services. Training and awareness The marketing greatly varies on the quality of the services provided and one of the quality determination factors is training where as others may be promotional materials through various means such as published documents, audio visual, leaflets, posters, pamphlets etc. The following fig. 32 shows the appropriate market appraisal.


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Figure 32: Biogas Market Appraisals


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5.1 Demand and Potential of Biogas Plants All the surveyed 9 districts are potential areas for biogas promotion in future. Also respective biogas companies informed that there is high demand from potential customers nowadays. By considering the fact; district wise total biogas production potential has been calculated with the help of national database on the number of households; available human population along with cattle population within district. As the district level databases on each household level was not available for the deliberation thus average figures were used for further forecast of technical potentiality.

The following parameters were considered for assessing biogas potentiality: ∅ HHs with livestock according to 2011 census

∅ No. of cattle in each HH (assuming that there are three or more cattle in each HH)

∅ Economic status of the people/ poverty level

∅ Technical feasible districts which are categorized on the basis of ecological region

Remote Hills and Mountains The districts included are: Solukhumbu, Manang, Mustang, Rukum, Dolpa, Mugu, Humla, Jumla, Kalikot, Taplejung, Sankhuwasabha, Rolpa, Achham, Jajarkot, Dailekh, Bajura, Bajhang and Darchula.

This region is considered very remote and biogas is feasible only in some clusters of the district. Their economic status is also comparatively low. They will be using firewood and agricultural wastes as their fuel. Hence, only 15% of the households having cattle are considered as potential users in these districts.

Middle Hills Rest of the districts not included in Terai and remote hills or mountains are in this category. In this region, it is assumed that, 20% of the people are below poverty line can still have access with firewood and cannot afford biogas. Likewise another 10% are better off family using LPG, kerosene and electricity. Hence, only 70% of the households are potential for biogas installation. Terai Kanchanpur, Kailali, Bardiya, Banke, Dang, Kapilbastu, Rupandehi, Nawalparasi, Chitwan, Parsa, Bara, Rautahat, Sarlahi, Mahottari, Dhanusha, Siraha, Saptari, Sunsari, Morang and Jhapa are in this category.

In this belt, it is assumed that 20% of the people are below poverty line (who cannot afford biogas but uses dung cakes, agricultural wastes as their fuel and another 20% are better off family who are using LPG, kerosene or electricity for their energy need. Hence, only 60% of the households are potential for biogas installation.

Urban areas having fewer cattle Kathmandu, Bhaktapur and Lalitpur are in this category.


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In this category, there are few households having cattle and most of the people are better well off and are using LPG, kerosene and electricity. The land is quite expansive and their interest will be more on building house or agricultural production rather than for the installation of biogas. Hence, only 60% of the households in rural areas having cattle are considered potential for biogas installation.

Based on above facts; the following graphs show the forecasting of biogas plant in various districts.

Figure 33: Region wise distribution of biogas potential/installation in Nepal

Figure 33 shows the region wise distribution of biogas potential in Nepal. In Terai region, 705,815 numbers of biogas plants are seem feasible whereas 159,756 biogas plants are already been installed. Similarly, in hilly region 576,557 numbers of biogas plants can be installed but 125,489 numbers of plants already been installed. Remote Hills have 27,371 numbers of potential whereas 1637 numbers of plants already have been installed. In urban districts 3628 biogas plants already have been installed but 14,193 biogas plants seem feasible.

Also figure 34 shows the total domestic biogas potential in Nepal. Based on households having livestock are 2,596,763. From analysis; it is calculated that 22, 06,138 households of total potential, 1,323,936 households are total feasible for biogas development whereas 290,510 numbers of biogas plants already been installed.


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Figure 34: Total domestic biogas potential in Nepal

Based on the potentiality of the biogas in districts, it is recommended to open new offices/branches in Baitadi, Dadeldhura, Dhanusha, Doti, Kapilbastu, Myagdi, Achham, Jajarkot, Rukum, Khotang, Mahottari, Parsa, Ramechhap, Siraha, Sarlahi, Saptari, Sunsari and Okhaldhunga districts, where as in other potential districts it is recommended to open branch offices or provide services from adjacent districts where their office is located. However, in districts such as Bajura, Dolpa, Humla, Jajarkot, Jumla, Kalikot, Manang, Mustang, Rukum, Rolpa and Taplejung there is less potentiality of biogas and existing companies could continue their activities.

Majority of households are ready to connect their toilet with biogas system. Similarly, willingness of local people on the basis of investment capacity seems very positive with current subsidy provided by AEPC. Even biogas companies said that if customers are ready to contribute on construction materials like sand, stone/bricks and their own labour then there is huge potentiality of biogas promotion in upcoming days. It can be said that still biogas sector has good market. The details of biogas projection are given in Annex 10.8.

5.2 Promotional Strategy Situation The main promotional measures in all districts are printed materials such as brochures, calendars etc. Some of the biogas companies have already developed their own brochure, Pamphlets etc for promotional purpose. However, the present promotional activities are not sufficient.

Study team has suggested for providing the capacity building training and orientation to the potential customers as well as companies’ personnel for the identification of biogas market. The promotional activities such as FM radio program, Television programs and other awareness campaign should be encouraged.


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During field visit; both biogas users and non-users demanded for the mechanism of similar price, timely service delivery, convenience, branding of the products etc. Advertisement and publicity are only means to attract potential customers for biogas development.

5.3 Business Location Nowadays various business locations are relatively better in road connectivity and other infrastructure development aspects. Changing professionalisms is also helping for better economic status such as land, buildings, cattle, income and saving of households. Almost all district headquarters and other villages and communities are developed as local business centres. The list of business locations for particular district along with the existence of the companies are presented in Table 33.

Table 33: Major business location of particular district

S.N. Districts Major Market Centers

1 Achham Mangalsen, Sanfebagar, Kalagoun, Sera 2 Arghakhanchi Sandhikharka, Dhakwang, Deuralithum 3 Baglung Baglung, Hatiya, Tangram, Devisthan, Balewa 4 Baitadi Baitadi, Patan, Gokuleshwor, Sitang 5 Bajhang Chainpur, Dahabagar, Dhuli, Kangarkot 6 Bajura Martadi, Bhuri, Kolti, Manakot, Dugurbani 7 Banke Nepalganj, Kohalpur, Khajura 8 Bara Kalaiya, Simara, Nijgadh 9 Bardiya Gularia, Motipur, Dhadwar

10 Bhaktapur Bhaktapur 11 Bhojpur Bhojpur, Okhre, Tumlingtar, Kulung, Dingla 12 Chitwan Bharatpur, Narayangadh 13 Dadeldhura Dadeldhura, Jhulaghat, Kesharpur, Alital 14 Dailekh Dailekh, Chupara, Dungiswor, Dullu, Gurasedanda, Rakam 15 Dang Ghorahi, Tulsipur, Lamahi 16 Darchula Darchula, Khalanga, Kalapani, Ghusa 17 Dhading Dhadingbesi, Malekhu, Gajuri, Salyantar 18 Dhankuta Dhankuta, Hile, Bhedetar, Sidhuwa 19 Dhanusa Janakpur, Dhalkebar, Ratu, Chisapani 20 Dolakha Charikot, Jiri, Sunakhani. Mainapokhari 21 Dolpa Dunai, Jufal, Taragoun, Tinle 22 Doti Dipayal, Pachnali, Asigram, Kanachaur 23 Gorkha Gorkha, Khaireni, Harmi,Palungtar 24 Gulmi Tamghas, Wamitaksar, Rupakot, Ajimir 25 Humla Simikot, Lauthi, Bhogadiya 26 Ilam Ilam, Fikkal, Pashupatinagar, Mangalbare, Alubari 27 Jajarkot Khalanga, Rokayagoun, Seragoun, Nipani 28 Jhapa Chandragadhi, Shanischare, Birtamod, Budhabare,


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Shorunga

29 Jumla Jumla, Chandanath, Tatopani, Ratamata 30 Kailali Dhangadhi, Attariya, Lamki, Sukhad 31 Kalikot Manma, Chhapro, Dillikot, Lamabagar

32 Kanchanpur Mahendranagar, Bilauri, Suda, Jhalari

33 Kapilbastu Taulihawa, Banganga, Chandrauta, Bahadurjung, Jitpur 34 Kaski Pokhara, Lekhanath, Dhampus 35 Kathmandu Kathmandu 36 Kavrepalanchowk Dhulikhel, Banepa, Bhakundebesi 37 Khotang Diktel, Halesi, Naula, Majhaule 38 Lalitpur Patan 39 Lamjung Besisahar, Sundarbazaar, Bhorletar, Paudi, Botewodar 40 Mahottari Jaleswor, Bardibas, Manara 41 Makwanpur Hetauda, Bhimfedi, Tistung, Bhainse 42 Manang Chame, Pisang, Nargoun, Dharapani 43 Morang Biratnagar, Urlabari, Duhabi, Rangeli 44 Mugu Gamgadhi, Lumsa, Bamanibas 45 Mustang Jomsom, Tukche 46 Myagdi Beni, Galeshwor 47 Nawalparasi Parasi, Gaindakot, Sunwal, Ramgram 48 Nuwakot Bidur, Tinpiple, Kakani 49 Okhaldhunga Okhaldhunga, 50 Palpa Tansen, Pipaldanda, Balam, Khaseuli 51 Panchthar Panchthar-Phidim, Angbang 52 Parbat Kusma, Chilaunebas, 53 Parsa Birganj, Nirmalbasti, Auraha, Bagahi 54 Pyuthan Khalanga, Baddanda, Bijwar 55 Ramechhap Manthali, Devitar 56 Rasuwa Dhunche, Gatlang 57 Rautahat Gaur, Chandranigahapur 58 Rolpa Livang, Dhawang, Damri 59 Rukum Jumlikhalanga, Chaurjahari 60 Rupandehi Butwal, Bhairahawa, Manigram, 61 Salyan Salyan, Sallibazar 62 Sankhuwasabha Khadbari, Chainpur, Sabhapokhari 63 Saptari Rajbiraj, Dharampur, Banmajiya, Bagduwa, Phattepur 64 Sarlahi Malangwa, Hariwan, Lalbandi, Murtiya 65 Sindhuli Sindhulimadhi, Kamalamai, Dudhauli 66 Sindhupalchok Chautara, Thampalkot, Barhabise 67 Siraha Siraha, Lahan, Majhaura 68 Solukhumbu Salleri, Lukla, Faplu


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69 Sunsari Dharan, Itahari 70 Surkhet Birendranagar, Chhinchu 71 Syangja Syangja Putalibazar, Waling, Sirubari 72 Tanahu Damauli, Dumre, Kalimati, Baisjangar, Khaireni, Bandipur 73 Taplejung Taplejung, Sinam, Suketar, Thechambu 74 Terhathum Terhathum, Basantapur, Namaling 75 Udayapur Gaighat, Dhapakharka, Tribenighat

If we see the existence of the company in each district, there is no any company in Achham, Bajura, Dailekh, Dolpa, Manang and Mugu districts. However, there are 11 districts with the existence of one company, 28 districts with the existence of 2-5 companies, another 19 districts with the existence of 6 – 10 companies and 11 districts with the existence of more than 10 companies.

Table 34: Existence of biogas companies/branches in each districts and biogas potentials

Number of companies/branches No of districts Total Biogas potential 0 6 8,413 1 11 53,246 2 8 134,738 3 8 109,500 4 6 87,263 5 6 70,187 6 2 43,465 7 3 70,836 8 5 99,924 9 4 46,595

10 5 83,571 11 1 20,407 12 2 44,587 13 2 55,266 14 3 71,441 15 2 20,978 16 1 13,010

5.4 Complementary/Supplementary Organizations There are few organizations like development banks, cooperatives, micro finance; NGOs etc which consider biogas program as accompanying activity that contribute to achieve other major community development goals such as those related to health, environment, income generation, rural development, livelihood etc. Similarly, community based organizations such as community forest user groups, women groups; local youth clubs etc. have actively promoted biogas plants


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(Doti, Kapilbastu, Saptari, and Kanchanpur districts). They have provided financial support to its members to construct toilet attached or non-attached biogas plants. In some cases they also have provided soft loans. The following are the strengths and weakness of those supplementary organizations.

Table 35: Strengths and weakness of supplementary organizations

Strengths Weakness Awareness campaign/access to information on biogas technologies and its benefits to the rural farmers

Institutional capacity limitation (Technology) demonstration & implementation

Capacity development and training facilitations Working for limited areas not whole district Social acceptance and local participation Inadequate financing arrangement Coordination, monitoring and networking Lack of technological knowledge Market Identifications/mobilization Reporting/documentations

5.6 Need Assessments There are 5 companies having more than five branch offices. Likewise, there are another five companies having five, seven companies having four, nine companies having three, 16 companies having two and 39 companies having only one branch office all over the country. Instead of providing services from one branch, it is recommended to merge few companies (4 -5) into company and provide services from several branches. This will make easy for AEPC for the administration and monitoring of companies. The details of biogas companies, their branches and working districts are provided in Annex 10.9.

All biogas companies have high variation including their masons and total staffs. Large companies have high number of human resources with high targets whereas small companies have minimum numbers of masons. The details of human resources in biogas companies are provided in Annex 10.10.

Likewise the existences of the working companies in the surveyed districts were found as Table 38. Kanchanpur, Kapilbastu and Sarlahi have 9 companies each where as others have 4-7 companies as shown below.

Table 36: Number of working biogas companies in surveyed districts

Name of the districts

Number of companies/branches Remarks

Doti 4 Not regularity in district

Kanchanpur 9 Not reached in southern parts (Tharu community has good demand)

Dailekh 4 During field visit there were no any company representatives at local level

Kapilbastu 9 Although southern parts are far from biogas installation (Madeshi, Muslim and Tharu community have less access to biogas


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companies) Baglung 4 It has also high demand Dolakha 4

Sarlahi 9 Madeshi people are potential consumers for upcoming days

Saptari 7 Southern parts have huge potential for biogas development

Panchthar 6 In remote areas they are not willing to conduct promotional activities.

5.7 Appropriate Size In all the districts, the most popular model are modified GGC 2047 and the most common size is the 4 and 6 cum plants. Dung is common feeding material for the biogas plant particularly fixed dome digester, which is successful example in the house hold based plant. The biogas plant construction under BSP-Nepal has the following characteristics:

Fixed dome (GGC 2047 Model) Most popular sizes 6 cum followed by 4 cubic meters Feeding materials; Cattle dung, water and human excreta Individual household plant

5.9 Energy Policy (Strategic – way forward) The biogas program in Nepal is well established, beginning with establishing with GGC and later the Biogas Support Program almost three and half decades ago. The sector is duly supported by a revolving fund for credit delivery, and the program is supported by AEPC/NRREP and implemented by the Biogas Sector Partnership – Nepal (BSP/N). At district level the DEEUs have been established to provide support for planning and coordination, as well as monitoring and supervision responsibility. Manufacturing and installation under specified design are done by pre-qualified biogas companies. Sustainability is improved through an obligatory three-year guarantee provided by the supplier/installer on the plant and equipment. Government of Nepal has already declared the “Rural Energy Policy” in 2006 from Ministry of Environment, Science and Technology. Rural energy is highly prioritized with technology enhancement and diversification. There is also RE subsidy policy to support for the promotion of RETs in rural areas. 6. CAPACITY DEVELOPMENT 6.1 Micro Level Skills required for customers

A biogas programme can only be seen to be successful if customers are using plants properly and gaining the benefits that the technology offers. This has been tested in which it is working through user surveys. Customers need to have a sense of ownership of their plants and feel


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that the operation of those plants is part of their daily routine. They need to know how to do routine maintenance work themselves. They also need to know what to do if they have a problem with their plant. The effectiveness of capacity development at this level can be defined by the proportion of plants that are still being used several years after installation.

A further skill set required by customers is the use of the effluent slurry as a fertilizer. While energy for cooking is the primary motive for the purchase of a plant, the benefits from the use of the slurry are also important. The use of a latrine attached to the plant is not a skill as such, but is a measure of the acceptance of the technology and a realization of all its benefits.

Most of the rural people are unaware about the subsidy policy which is elucidated by biogas companies. Majority of potential customers or users are ignorant farmers. Neither those people know government policy nor do they foresee the risk factor after installation. The following skills are needed for customers;

Awareness raising Trainings on minor repair and maintenance of biogas plants Information on biogas uses and benefits Importance of bio-slurry as by-product Scope of biogas as a CDM product

Skills required for Companies The primary skill for installing a biogas plant is required by the masons who do the actual construction work. Masons need to be backed up by a supply of materials and biogas equipment, which often need to be purchased locally. The logistical skills can either be taught to the masons or taught to technicians who supervise the work. The technicians also need the technical skills required to check that the plant is being made to the defined dimensions. Both technicians and masons are taught marketing skills, so when one plant is being built, they can encourage other people in the area to buy one.

Masons and technicians also need to be trained to teach the customers of the plants they are building to use the plant and to do routine maintenance. They also need to be able to explain to the customers the benefits of biogas slurry as a fertilizer. Technicians should be taught how to do effective follow-up work and how to plan effective visits to previous customers.

A concern of biogas programmes is the retention of masons. Well-trained skilled masons are in demand by construction companies both in the country in which they are working and also in countries in the Middle East, which can pay much higher salaries. Courses should offer trainees effective motivation to continue to work on biogas programmes by explaining the wider benefits of the programme.

The biogas market has good potential but also more competitive among the biogas companies. Basically biogas companies must have well equipped office; human resources can be categorized as managerial and technical aspects. The following skills are very essential for biogas companies;


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Technical skills and capacity development of masons and supervisors Managerial trainings to managers/administration Quality control and monitoring skills Exploring ideas for new market Effective pricing and timely service delivery mechanism Social mobilization, reporting and deliverables skills

Skills required for Financial Institutions The commercial or development banks are showing interest in MFIs or local cooperative based approach for biogas financing. MFIs are also providing loan for installation of biogas plants. Most of these MFIs have obtained bulk loan from AEPC's Biogas Credit Fund. The following skills are required for financial institutions;

Some technical knowhow Quality services/timely service delivery Coordination among the stakeholders including customers Capacity buildings/training

6.2 Meso Level The key skills required by the staff of implementation organizations are those of planning and management. These skills are closely linked with marketing. Ideally several biogas plants should be built in an area at one time, so that resources can be used efficiently. Implementing organizations are involved in the training of installation staff, so staffs need to be trained to train others in the skills of construction, quality control, marketing and follow-up. Implementing organizations are also involved in quality control, so people need the skills of data management to keep track of each plant built, the quality checks and the follow-up visits. Staff also needs to have financial management skills to keep track of payments, subsidies and loans. Separate MFIs often deal with loan finance, but their staff need to be properly trained and their work checked by the implanting organization.

Biogas Sector Partnership- Nepal (BSP/N)

BSP Nepal is the most outstanding actor in the biogas sector, which is working since 1994 as a NGO. It is also working as supervisory role to maintain the quality and quantity of the domestic biogas plants under AEPC agreement to regulate and monitor all pre-qualified biogas companies. The following skills are required for BSP-Nepal;

Training facilitation and capacity development Quality control and monitoring Research, design and modification of biogas plants Technical skills Market facilitation Subsidy channelization Others


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Nepal Biogas Promotional Association (NBPA)

It is an umbrella organization of all pre-qualified biogas companies. It has very good outreach due to the regional office structure. The following skills are very essential for NBPA to regulate biogas companies and advocate their rights with other stakeholders.

Field monitoring and supervision of member companies Lobbying with AEPC, BSP-Nepal and other development partners Market Identification To prepare code of conduct for all member companies Reporting etc

6.3 Macro Level Alternative Energy Promotion Centre (AEPC)

The skills at the policy framework level are not usually imparted through training courses, although some information can be conveyed through conferences and workshops. Policy formulation and application requires government staff to have a sense of ownership and commitment to the biogas programme. Capacity development takes time, as these staff needs to understand the wider benefits of the programme and what policies are needed to allow those benefits to be realized. People also need to recognize the best ways to apply those policies through the Apex body, providing direction, co-ordination and clear decision making.

Staff of the Apex body may need orientation courses to enable them to supervise the biogas programme. They need to have the skills to co-ordinate the work of implementation, including ensuring the quality control system is functioning, with effective data collection and management. This is linked with effective dispersion of subsidies, so skills are needed to monitor and audit the financial aspects of the programme. The planning of the programme needs to define annual targets for construction, but skills of resource management are required to ensure the targets can be met

AEPC has worked intensively on domestic biogas plant to deliver subsidy with fair and translucent way. AEPC to regulate the biogas related activities but as per market demand and increasing trend of the partners.

Coordination with donors and the government Decentralization of program activities at local level Enhance the capacity of local DEEUs Effective service and timely subsidy delivery Quality control and monitoring Research and design Training, awareness program, promotional materials Collaboration, coordination and networking among the stakeholders Market through value chain approach and Technical design, research and studies.


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7. COST/PRICES OF BIOGAS The cost for installation of biogas plants varies from one place to another and also from one size to another. The following table shows the cost differences at local, district and national level.

The following table shows the cost of construction materials at local level. The cost of cement and gravel is highest in Doti; whereas the cost of sand is high in Dailekh. Likewise the skilled labour cost is high in Panchthar followed by Sarlahi, Saptari and Dolakha where as unskilled labour cost is highest in Dailekh.

Table 37: Cost at local level

Particular

Unit Sarlahi Saptari Dailekh Dolakha Panchthar Baglung Kapilbastu Kanchanpur Doti Average

Cement Bag 600 670 700 1000 720 750 700 690 1200 781

Bricks Pc 9 10 14 15 10 14 12 14 15 13

Sand Bag 70 80 80 90 60 80 90 75 80 78

Gravel Bag 180 160 150 100 110 120 120 120 130 132

Rod Kg 81 80 95 100 80 85 90 90 95 88

E Paint Lit 800 460 750 670

Skilled Day 600 600 530 600 650 500 400 450 550 542

Unskilled Day 300 350 410 350 350 300 300 300 350 334

Inlet pipe M 190 180 160 177

GI pipe M 150 160 250 146 187 185 180 180 200 182

Socket Pc 25 35 30 127 30 75 75 90 61

Elbow Pc 30 40 40 43 35 38

Tee Pc 45 65 48 68 80 61

Union Pc 55 100 110 127 90 96

Cost at district level The district rate of the construction materials also varies from district to districts. The cost of cement is highest in Doti followed by Dailekh. This is a burden for all the users.

Table 38: Cost at district level

Particular Unit Sarlahi Saptari Dolakha Panchthar Dailekh Baglung Kapilbastu Kanchanpur Doti Average

Cement Bag 650 640 750 800 850 700 750 700 1000 760

Bricks Piece 10 12 14 14 12 12 12 14 14 13

Sand Bag 92 100 85 100 80 92 107 85 85 92

Gravel Bag 178 164 92 214 70 150 178 157 200 156

Rod Kg 84 15 90 90 80 90 85 80 77

Acrylic Liter 488 300 750 560 500 750 558

Skilled Day 600 500 600 500 600 626 450 400 450 525

Unskilled Day 400 325 450 350 350 428 350 350 300 367

Inlet pipe Meter 250 125 180 235 125 183

GI pipe Meter 155 168 300 105 180 175 170 190 180

Socket Piece 28 40 40 60 35 60 55 60 47


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Elbow Piece 32 45 40 60 35 55 50 60 47

Tee Piece 50 70 50 95 85 75 80 95 75

Union Piece 57 104 120 195 100 60 104 195 117

Cost comparisons between local, district and national level The cost of brick, sand and gravel is low in NBPA quotation but these materials have to be managed by the customers themselves and are paying more than what is quoted in the quotation. Likewise the cost of cement for Hills and remote hills are available in the NBPA quotation, which is again extra burden to the customers. Hence it is the tendency of the company to reduce the price of the locally available construction materials such as cement, sand, gravel and bricks in their quotation and increase in other appliances which are not available in the market. These include gas valve, mixture machine, stoves, water drain, gas tap and multilayer pipes and fittings.

Table 39: Cost Comparisons between local, district and national level Particular Unit Local Rates (Average) Rs. District Rates (Average) Rs. NBPA Rates Rs. Cement Bag 781 760 728 (Terai) Bricks Piece 13 13 41466 Sand Bag 78 92 33- 59 Gravel Bag 132 156 50 - 206

Rod Kg 88 77 88.5

Acrylic Liter 670 558 221- 243

Skilled Day 542 525 Unskilled Day 334 367 316- 372

Inlet pipe Meter 177 183 172

Multi layer pipe Meter 103 - 104

Socket Piece 61 47 Elbow Piece 38 47 43

Tee Piece 61 75 68

Union Piece 96 117 127 Main gas valve Piece 488 417 557


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8. CONCLUSION AND RECOMMENDATIONS Based on the above findings and the information collected from nine surveyed districts and secondary information from various sources; the following conclusions and recommendations are prepared. 8.1 Conclusions A market oriented approach places the customer at the core of the programme; all of the programme activities are oriented towards ensuring they have a high quality plant at a price they can afford. Janajati and Brahmin/Chhetri community are potential customers for biogas companies. As shown in result; Madeshi community is still far from biogas program. They had less awareness and information regarding the biogas technology and its benefits. Biogas technology is popular among the middle class family (89%) followed by poor communities (11%) have access to biogas plants whereas high class families either use LPG or Electricity for cooking their foods.

Promotional materials could play crucial role to strengthen market for biogas companies. Among the respondents 56% (Dailekh, Baglung, Panchthar, Doti and Kanchanpur districts)said they have used such promotional measures whereas 44% responded there is no prctice of promotional materials(Saptari, Sarlahi, Dolakha and Kapilbastu districts). The main promotional procedures are printed materials like Pamphlet, brochures, calenders etc. Very few companies are using video documentary, FM radio, social medias for promotional activities. Bio-slurry is a major by-product of biogas process within a biogas digester when the feed materials are digested and come up from the outlet. Three types of slurry application have been recognized as: i) slurry as it is; ii) slurry in the form of compost and iii) slurry after drying. A query related to trend of using slurry manure; they responded the use of slurry in majority is highest in type of “making compost” (Saptari, Sarlahi, Dolakha, Baglung, Pachthar and Kapilbastu district) which is followed by the use of slurry after drying(Dailekh, Doti and Kanchanpur). The subsidy has been an important and widespread tool in increasing demand of biogas in different geological locations. Almost all companies said that; with current increased subsidy there is high demand of biogas plants nowadays. Biogas users received the subsidy in the form of materials and construction. The sources of cash contribution at users’ level are a very mixed nature. However, they have significant contribution either in form of labor works or cash. Loan from micro-finance/financing institutions and additional subsidy are also encouraging to invest for biogas development in rural parts. There are more than 110 biogas companies and appliances manufacturers in the country.If we see the existence of the company in each district, there is no any company in Dolpa district. However, there are seven districts with the existence of one company, 18 districts with the existence of 2-5 companies, another 18 districts with the existence of 6 – 10 companies and 28 districts with the existence of more than 10 companies. There are 5 companies having more than five branch offices. Likewise, there are another five companies having five, seven


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companies having four, nine companies having three, 16 companies having two and 39 companies having only one branch office all over the country.

MFIs are providing loans directly to the farmers or through biogas companies as well. AEPC had also distributed loan through Biogas Credit Fund to MFIs. MFIs are also playing the significant roles in promotion of domestic biogas plants in Nepal. Study team has also interviewed few MFIs personnel to identify the scope of MFIs in biogas sector. As said those people who are able to opt for loan and also can pay back are their potential customers. Finance, cattle number and need and willingness are the major factors influence the buying of the customers. For Hill, the maximum cost for installation was Rs. 70,000; minimum cost for installation was Rs. 36,700 and the average cost Rs. 47084. Similarly, the maximum cost for installation was Rs. 65,000; minimum cost for installation was Rs. 25, 000 and the average cost Rs. 47084 in Terai. These values also include the subsidy amount. Convenient price of biogas plants; users said that the current installation cost is so high. As their demand; an average Rs. 25,550 is convenient price for Hills and Rs. 28697 for Terai region. The quality control mechanism is one of the keys to marketing. Quality control does not only apply to the need for technical quality, although this is an essential part of the way the programme is run. The quality of the marketing of the technology is also important. The sales people from the installation companies need to relate effectively to the customers and help them to make the decisions that will ensure they have plants that meet their expectations.

District wise total biogas production potential has been calculated with the help of national database on the number of households; available human population along with cattle population within district. As the district level databases on each household level was not available for the deliberation thus average figures were used for further forecast of technical potentiality. Based on the potentiality of the biogas in districts, it is recommended to open new offices in Baitadi, Dadeldhura, Dhanusa, Doti, Kapilbastu, Myagdi, Achham, Jajarkot , Rukum, Khotang, Mahotari, Parsa , Ramechhap, Siraha, Sarlahi, Saptari, Sunsari and Okhaldhunga districts, where as in other potential districts is recommended to open branch offices and provide services. However, in districts such as Bajura, Dolpa, Humla, Jajarkot, Jumla, Kalikot, Manang, Mustang, Rukum, Rolpa and Taplejung there is less potentiality of biogas and existing companies could continue their activities.

Various business locations are relatively better in road connectivity and other infrastructure development aspects. Changing professionalisms is also helping for better economic status such as land, buildings, cattle, income and saving of households. Almost all district headquarters and other villages and communities are developed as local business centres. Community based organizations such as community forest user groups, women groups; local youth clubs etc. have actively promoted biogas plants (Doti, Kapilbastu, Saptari, and Kanchanpur districts). They have provided financial support to its members to construct toilet attached or non-attached biogas plants. In some cases they also have provided soft loans. There 4 – 9 companies are working in the surveyed districts. However, in Doti there is no


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regularity of the company, In Kanchanpur, the company has not reached to the southern part where as in Dailekh no any company representative at local level. In Kapilbastu Madeshi, Muslim and Tharu community have less access to biogas companies. In Sarlahi Madeshi people could be potential customers for upcoming days. In Saptari district, southern part has good potential for biogas development whereas in Panchthar in remote areas companies are not willing to conduct promotional activities. In all the districts, the most popular model are modified GGC 2047 and the most common size is the 4 and 6 cum plants. Dung is common feeding material for the biogas plant particularly fixed dome digester, which is successful example in the house hold based plant. Customers need to have a sense of ownership of their plants and feel that the operation of those plants is part of their daily routine. They need to know how to do routine maintenance work themselves. They also need to know what to do if they have a problem with their plant. They need skills such as awareness raising, training on minor repair and maintenance of biogas plants, information on biogas uses and benefits, iimportance of bio-slurry as by-product and scope of biogas as a CDM product Basically biogas companies must have well equipped office; human resources such as managerial and technical skills are very essential for biogas companies. Likewise, capacity development of masons and supervisors, managerial trainings to managers/administration, quality control and monitoring skills, exploring ideas for new market, effective pricing and timely service delivery mechanism, reporting and deliverables skills are essential for companies.

The primary skill for installing a biogas plant is required by the masons who do the actual construction work. Masons need to be backed up by a supply of materials and biogas equipment, which often need to be purchased locally. The logistical skills can either be taught to the masons or taught to technicians who supervise the work. The technicians also need the technical skills required to check that the plant is being made to the defined dimensions. Both technicians and masons are taught marketing skills, so when one plant is being built, they can encourage other people in the area to buy one.

The key skills required by the staff of implementation organizations are those of planning and management. These skills are closely linked with marketing. Ideally several biogas plants should be built in an area at one time, so that resources can be used efficiently. Implementing organizations are involved in the training of installation staff, so staffs need to be trained to train others in the skills of construction, quality control, marketing and follow-up. Implementing organizations are also involved in quality control, so people need the skills of data management to keep track of each plant built, the quality checks and the follow-up visits. Staff also needs to have financial management skills to keep track of payments, subsidies and loans. Separate MFIs often deal with loan finance, but their staff need to be properly trained and their work checked by the implanting organization.

The skills at the policy framework level are not usually imparted through training courses, although some information can be conveyed through conferences and workshops. Policy


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formulation and application requires government staff to have a sense of ownership and commitment to the biogas programme. Capacity development takes time, as these staff needs to understand the wider benefits of the programme and what policies are needed to allow those benefits to be realized. People also need to recognize the best ways to apply those policies through the Apex body, providing direction, co-ordination and clear decision making. AEPC has worked intensively on domestic biogas plant to deliver subsidy with fair and translucent way. AEPC to regulate the biogas related activities but as per market demand and increasing trend of the partners should focus on: Decentralization of program activities at local level, Enhance the capacity of local DEEUs, Effective service and timely subsidy delivery, Quality control and monitoring, Research on low cost and large scale design, Training, awareness program, promotional materials development, Collaboration, coordination and networking among the stakeholders, Linkages with donors and the government.

The cost of installation of biogas plants varies from one place to another and also from size to size. However, here NBPA prepared the quotation every year and AEPC approved the single quotation which applies to all companies which is a kind of cartel ling. Likewise, a cost comparison of the constructional material between local level, district level and national level have been compared and found that the cost of brick, sand and gravel is low in NBPA quotation but these materials have to be managed by the customers themselves and are paying more than what is quoted in the quotation. Likewise the cost of cement for Hills and remote hills are available in the NBPA quotation, which is again extra burden to the customers. Hence it is the tendency of the company to reduce the price of the locally available construction materials such as cement, sand, gravel and bricks in their quotation and increase in other appliances which are not available in the market. These include gas valve, mixture machine, stoves, water drain, gas tap and multilayer pipes and fittings.

However, there are weaknesses in the programme, for example the CD towards a market approach has not enabled organisations in the private sector to have fully effective commercial operations. The programme’s success in installation numbers and quality control has relied on a tight development focus that makes the programme unable to respond to other development priorities.

8.2 Recommendations The following suggestions need to be considered to ensure that the programme continues to have the required capacity to carry out its defined policies and programmes successfully and to be extended to other places.

• In order to be sustainable, a biogas programme has to be environmentally sound, economically viable, socially acceptable, and technically and institutionally appropriate. While this has been recognised by AEPC, these factors need to be reassessed continually.


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• Five big companies have major share market where as the rest have minor share and there are 39 companies having only one branch office. Hence, it is recommended to merge some (4-5) companies in one company. It is also recommended to cover the adjacent and potential districts by the companies where their offices are based.

• As the subsidy increases, the cost of the plant is also increased by companies and the real benefit of the programme is for the companies rather than the users. Hence, it is recommended to AEPC to control the price of the biogas appliances and other accessories based on the market price.

• It is also recommended that there should be the involvement of local non- governmental organizations for the extension and promotion of biogas in their local areas especially for demand collection and if possible supply of spare parts.

• The balance between the various pressures that a biogas programme faces must continue to be evaluated. Political changes, new development concerns and priorities and other factors can affect this balance. However, the growing international concern about climate change and the new opportunities for VER finance should continue to shift the balance in favour of biogas programmes.


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9. REFERENCES 1. Centre for Economic Development and Administration, A study on effective demand on

Biogas in Nepal, BSP, 1998. 2. Devkota GP, Biogas Technology in Nepal: A sustainable source of energy for rural

people, 200. 3. Fulford David, Devkota Govinda and Afful Ken, Kingdom Bio energy, Evaluation of

Capacity Building in Nepal and Asia Biogas Programme , SNV, Dec. 2012. 4. HURDEC: Biogas Market Assessment in Doti, SNV/BSP, No date. 5. K. Martin, UNDP, Making energy market works for the poor: Large scale Dissemination

of Biogas Plants in Nepal. 6. SEF, Renewable Energy Policy Gap study 2011.


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10. ANNEXES

Annex 10.1 List of Surveyed biogas companies/branches S.N. Name of the respondents Name of the Companies Grade

1 Umesh Wasti Siddhakali gobargas co. A 2 Devendra Pokharel All Nepal biogas co. B 3 K P Dhakal K P Business service Pvt Ltd D 4 Kumar Adhhikari Mumbure Energy P. Ltd A 5 Sagar Baral Bageshwori gobargas co. B 6 Yuvaraj Paudel Munal gobargas co. A 7 Prem bahadur Balayar Loard Buddha Nabikaraniya A 8 Keshav Raj Khanal Janapriya Gobar Gas A

9 Gopal Singh Bohara Lekbeshi Saurya Urja Tatha Gobargas Sewa C

Annex 10.2: Perceptions of DEEUs in Terai Region Description Kanchanpur Kapilbastu Sarlahi Saptari

Energy demand Vs Supply

Demand is high Southern parts deficit from fuel wood; demand is high

Demand high supply is very low in south belts.

Demand high but low supply.

Possibility of biogas development Yes Yes Yes Yes

Presence of biogas companies to meet the demand side

Enough Not adequate

Enough for North part but no their activity in southern parts

Not adequate

Potential customers Farmers having cattle/buffaloes

HHs having cattle plus minimum amount for investment

Almost rural households

Families having cattle numbers

Factor influence the buying of biogas to the customers

Cost price, awareness, people willingness, company’s services, subsidy etc

Promotional activities, Subsidy, Household type etc

Promotional activities

Awareness, Subsidy, Presence of biogas companies

Capacity development of biogas companies

Not enough Not enough Not enough Not enough

Promotional Activities Some publications disseminated

Not enough Some activities Not enough

Financing through DDC

Yes planned but not yet Not yet


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Annex 10.3: Perceptions of DEEUs in Hills Region Description Doti Dailekh Dolakha Baglung Panchthar

Energy demand Vs Supply

Fuelwood as primary sources of cooking fuel. Demand is high

High demand

High demand

Fuelwood is predominant in rural parts and LPG at Urban areas

High demand

Possibility of biogas development Yes Yes Yes Yes Yes

Presence of biogas companies to meet the demand side

Not adequate Not adequate

Not adequate

Not adequate

Not adequate

Potential customers Rural families having minimum 3 cattle

HHs having minimum number of livestock

Local farmers

Majority of rural farmers

Middle and poor section of farmers

Factor influence the buying of biogas to the customers

Price of biogas plants, Information, Cattle numbers, scarcity of fuelwood, environment friendly technology etc

Lack of fuelwood, demand of smokeless kitchen, time saving

Financing, Cattle number and motivation

Pricing of the system, Information, Easy operation and quality

Desire and willingness, Financial status, Available land and cattle, Information about technology and its benefits.

Capacity development of biogas companies

Not enough Not enough Not enough

Not enough Not enough

Promotional Activities

Awareness raising

No remarkable activities

Some activities done

Awareness raising

Dissemination and raise awareness

Financing through DDC Not yet Yes Not yet Not yet Not yet


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Annex 10.4: Orientation Schedule for Field Enumerators S.N. Activities Responsibility Time Day I 16 .August. 2013

1 Introduction, Objective and Purpose of Market Mapping Studies

Sharada Shrestha 10:30-11:30

2 Market Mapping and data collection from the field Govinda Devkota 11:45-12:45

Tea Break 12:45-13:45

3 Pricing of biogas Govinda Devkota 13:45-14:45

4 Discussion on questionnaires and Orientation on pre test

Govinda Devkota/Sharada Shrestha Hari Poudel

15: 00-16:30

5 Wrap up Sharada Shrestha 16:30 – 17:00

Day II 19.August. 2013

1 Field visit along with enumerators for orientation of pre test

Govinda Devkota/Sharada Shrestha/Hari Poudel

10:00- 17:00


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Annex 10.5: Market Mapping Questionnaire for Biogas Companies 1 GENERAL INFORMATION 1.1 General 1.11 Full Name of the respondent 1.12 Full Name of the Biogas Company 1.13 Date of interview (dd/mm/yyyy) 1.2 Location of the Company and access to services 1.2.1 District 1.2.2 VDC/Ward No. 1.2.3 Village/Tole 1.2.4 Walking distance from the road ………….day ………….hour………….min 1.3 Need Assessment of Biogas Company 1.3.1 Company Grade

1.3.2 How is the possibility of biogas sector development in this district

1.3.3 Working areas of biogas company and their coverage

1.3.4 Demand and potential of biogas in the district

a. Potential - b. Demand - c. Installed so far -

1.3.5 Who are the potential customers О Those having enough cattle О Capable to buy the plant О Interested to have good fertilizer О Those having scarcity of firewood in that area

1.3.6 Profile of the potential customers a. Ethnic group b. Economic status c. Geographic distance d. Others (please specify)

1.3.7 Do you have enough demand of biogas in this district? О Yes О No

If no what are the reasons? 1. 2. 3.

1.3.8 Interested model and size of the plant of the buyers

1.4 Cost of the Plant

1.4.1 Company price and convenient price that customers can offered Company price Convenient price

Plant size 2 cum 4 cum 6 cum 8 cum 2 cum 4 cum 6 cum 8 cum Price

1.4.2 What factors influences the buying decision of the customers?

2 Services provided by Companies and Biogas Plant Operation 2.1 How often do you visit the plant Twice a year Once a year Only when requested 2.2 How much do you charge in a year No charge Less than Rs 200 200-500 More than 500

2.3 How much is the operation rate of the plants that you installed in this district? More than 90% 50- 90% Less than 50%

2.4 Plant Feeding

2.4.1 What types of materials are fed to plant other than dung?

1. Night soils 2. Poultry droppings 3. Pig dung 4. Others (Specify)……...……

2.4.2 Do you think that your customers feed the plant regularly and adequately? О Yes О No

If no what are the reasons? 1


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2 3

3 Market mapping

3.1

How are the potentiality, demand and installation of biogas in the district? (This will be analyzed after having figures from district potentials, demand in the district and actual installation)

Potentiality Demand Actual Installed Remarks

3.2 Is the company capable to ensure the supply side? О Yes О No

3.3 If no what should be the promotional strategy? 1 2 3

3.4 Available human resources in your company? 1. Masons = 2. Supervisors = 3. Managers = 4. Others =

3.5 Average number of biogas plants installed per year

3.6 At which level the capacity of the company needs to enhance?

1. Mason and supervisor 2. Managers 3. Others ( specify)

3.7 In which area do they need capacity development

1. Extension and Promotion 2. Technology development 3. Operation and maintenance 4. Administration and Finance 5. Others ( specify)

3.8 Which are the five main business locations in the district?

1 2 3 4 5

3.9 Do you think there is a need of additional biogas company branch or head office?

О Yes О No

If yes, give reasons

3.10 Are the existing companies sufficient to trap the market?

О Yes О No

If not what could be the solution?

3.11 Are there any complementary / supplementary organization in the district in order to promote biogas

О Yes О No

3.12 List the names of these companies

1. 2. 3 4. 5.

3.13

What are their Strength and weakness (Analysis will be made based on their strengths and weakness)

Strengths Weakness 1 2 3

1 2 3

4 Orientation/Training

4.1 Are you providing any orientation training to your potential customers? О Yes О No

4.2 Are your customers aware with government subsidy policy? О Yes О No 4.3 Have you developed any promotional materials 4.4 If so what promotional materials have you developed?


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1. 2. 3.

4.5 Bio-slurry Utilization

4.5.1 Do your customers use the bio-slurry manure? О Yes О No

4.5.2 If they are using slurry manure, in what way are they using it? О Slurry as it is О Making compost О After Drying

5 Investment on Plant

5.1 How do your customers manage financing for construction of biogas plant and at what percentage?

1. Self/labour % Additional subsidy % 2. Loan % 3. Subsidy %

6 Any suggestions on the possibility of biogas sector development assessing demand and potential of biogas and other RE sources in the district?

1 2 3 4 5 Name of the Interviewer: ………………………………………………….. Signature: ………………………………. Date:……………………………………..


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Annex 10.6: Checklist for Stakeholders DDC/DEEU/S

1. What is the situation of energy supply and demand in this district?

2. How do you see the possibility of biogas sector development in this district?

3. In your opinion the working company or branches are enough to meet the demand side?

4. Who and where are the potential customers and how can Biogas Company reach them?

5. What factors influence the buying of biogas to the customers?

6. Are there any complimentary or supplementary organizations in the district in order to promote biogas technology? What are their strengths and weakness?

7. What is the present position in terms of capacity development of the biogas companies? In which areas is Capacity Development is needed in construction companies so that supply side can be ensured?

8. Could you provide the district rate of labor, sand, bricks, cement, pebbles and iron rod? Have you make any comparisons with biogas company quotation? If so what is the differences?

Cost of materials at local level Minimum price Maximum price Standards Cement ( Rs/bag) Bricks (Rs/pc) Sand ( Rs/ bag) Pebbles ( Rs/bag) Rod ( Rs/kg) District rates of the construction materials Cement( Rs/bag) Bricks (Rs/pc) Sand ( Rs/bag) Pebbles ( Rs/bag) Rod ( Rs/kg) Labor Cost Rs 9. Are there any promotional materials developed and distributed to raise awareness level

/ Technology know-how at district level


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10. Do you have any relevant study/documents related to biogas?

11. Does DDC have also plan to support biogas plants? If yes how many or how much of budget allocated?


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NBPA Regional Office/ NGOs working in the areas

1. In your opinion how is the possibility of biogas sector development in this district?

2. Which are the existing biogas companies working in this district?

3. Which are the prospective business locations in the district? Who are the potential customers and how can Biogas Company reach them?

4. What factors influence the buying of biogas to the customers?

5. Are there any complimentary or supplementary organizations in the district in order to promote biogas technology? What are their strengths and weakness?

6. Is there any need of additional company or branch in this district to explore further the field of biogas?

7. What is the present position in terms of capacity of biogas companies? In which areas is Capacity Development is needed in construction companies so that supply side can be ensured?


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VDC Level Information (Interview with VDC secretary)

Area

Population

Ethnic Composition

Total HHs

Foreign Employment /Rural Economy Contribution

Forest resources

Agricultural land

Livestock

Food sufficiency status

Average household level income per year

Literacy rate

Academic Institutions

Health services

Small cottage Industries

Source of fuel wood

RETs development status

Drinking water accessibility

Buildings type Road and other infrastructure development status


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Biogas Users

1. General Information Name of the respondent: District: VDC/Ward: Contact Telephone : Address: Name of the nearest road junction Walking distance from the nearest road head. (hours) (minute)

Water sources distance

2. Socio-economic Characteristics Numbers of family members Education status Livestock Number Cow/Oxen Buffaloes

Open grazed Stall-fed Total _ _ _ _ _ _ _ _ _ _ _ _

Land holding status Arable Land= …..Ropani, Total Land = ……Ropani

Food Sufficiency Status

1. Up to 3 months 2. 3 to 6 months 3. 6 to 12 months 4. Surplus

Average Monthly Income

1. Less than 5000 NPR/Month 2. Less than 10,000 NPR/Month 3. Less than 20,000 NPR/Month 4. More than 20000 NPR/Month

Income Sources (Multiple Choices)

1. Agriculture 2. Livestock 3. Remittance 4. Government Service holders 5. Private Job 6. Local Business 7. Labor works 8. Other (specify)

3. Energy Sources

Energy Sources Unit Summer/month Winter/month Market price Remarks Fuel wood Bhari Agriculture residue Bhari Kerosene Liter Cow Dung Kg


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Biogas Number LPG Number Saw Dust Kg Other

*Please specify 1 bhari = -- kg

4. What type of stove you have for cooking? 1. Traditional fireplace 2. Mud stove without chimney 3. Mud stove / ICS with chimney 4. Metal stove / ICS 5. Biogas Stove 6. LPG stove

5. Are you completely satisfied with the present performance of your cooking stove?

1. Yes 2. No

6. Where do you source the firewood from? (Respondent can give multiple answers)

1. Government Forest 2. Community Forest 3. Private Farms and Forest 4. Market / Vendors 5. Others (specify)

7. What is the distance from your house to the fuel collection area? ______Km

8. How much time do you need to travel to the fuel collection area and come back to your home? …………………Hr

9. Who is assigned with the duty to collect and transport firewood? 1. Male members 2. Female members 3. Children 4. Paid Labours from outside

10. What impacts have you observed on the forest during firewood collection before biogas plant installation?

1. Excessively degenerated (there are very few standing trees) 2. Considerably degenerated (no. of forest/trees had notably decreased) 3. Forest/trees were not degenerated at all

11. How has the forest coverage changed over past years in your surrounding?

1. Increased 2. Decreased 3. Same


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12. How did you come to know about biogas plant? 1. Biogas Companies 2. Government official 3. Service provider 4. NGO/CBOs 5. Community leaders 6. Friends/relatives 7. Others (specify)

13. What are the other benefits from biogas? Please mention

14. How do you see the possibility of biogas sector development in this VDC?

15. Do you know the existing biogas companies working in this district?

16. Who are the potential customers and how can Biogas Company reach them?

17. What factors influence the buying of the customers? A. Finance B. Cattle number C. need or willingness D. others

18. How much you spend as loan, subsidy and your contribution for the installation of your biogas plant?

19. What is the convenient price that customers can afford for biogas plants?

20. What problems you have faced so far? How you solved them? Are you satisfied with your plant as well as services of the company?

21. Do you recommend biogas plant in your surrounding place (relatives)? a. Yes b. No If yes how many households are interested? ___________________________


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If not, why?

22. What do you think that the rate of demand of biogas has increased or decreased? a) Increased b) Decreased c) I don’t know

23. What are the major draw backs of biogas plants? Also provide your opinion about the financing mechanism, trainings and other services related to biogas promotion activities?

24. Field Observation/Suggestions


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Biogas Non Users

1. General Information Name of the respondent: District: VDC/Ward: Contact Telephone : Address: Name of the nearest road junction Walking distance from the nearest road head. (hours) (minute)

Water sources distance

2. Socio-economic Characteristics Numbers of family members Education status Livestock Number Cow/Oxen Buffaloes

Open grazed Stall-fed Total _ _ _ _ _ _ _ _ _ _ _ _

Land holding status Arable Land= …..Ropani, Total Land = ……Ropani

Food Sufficiency Status

1. Up to 3 months 2. 3 to 6 months 3. 6 to 12 months 4. Surplus

Average Monthly Income

1. Less than 5000 NPR/Month 2. Less than 10,000 NPR/Month 3. Less than 20,000 NPR/Month 4. More than 20000 NPR/Month

Income Sources (Multiple Choices)

1. Agriculture 2. Livestock 3. Remittance 4. Government Service holders 5. Private Job 6. Local Business 7. Labor works 8. Other (specify)

3. Energy Sources

Energy Sources Unit Summer/month Winter/month Market price Remarks Fuel wood Bhari Agriculture residue Bhari Kerosene Liter Cow Dung Kg


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Biogas Number LPG Number Saw Dust Kg

*Please specify 1 bhari = -- kg

4. Which health problems do you have in your family? 1. Eye problem 2. Cough 3. Chest Illness 4. Shortness of Breath 5. Headache 6. Backache 7. Others (specify)

5. What type of stove to do have for cooking?

1. Traditional fireplace 2. Mud stove without chimney 3. Mud stove / ICS with chimney 4. Metal stove / ICS 5. LPG stove

6. Are you completely satisfied with the present performance of your cooking stove? 1. Yes 2. No

7. Do you plan to switch to another new cooking technology?

1. Yes 2. No If Yes, Which technology/fuel would you prefer? __________________________

8. Where do you source the firewood from? (Respondent can give multiple answers) 1. Government Forest 2. Community Forest 3. Private Farms and Forest 4. Market / Vendors 5. Others (specify)

9. What is the distance from your house to the fuel collection area? ______Km

10. How much time do you need to travel to the fuel collection area and come back to your home? …………………Hr

11. Who is assigned with the duty to collect and transport firewood? 1. Male members 2. Female members 3. Children


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4. Paid Labours from outside

12. What impacts have you observed on the forest during firewood collection before biogas plant installation?

1. Excessively degenerated (there are very few standing trees) 2. Considerably degenerated (no. of forest/trees had notably decreased) 3. Forest/trees were not degenerated at all

13. How has the forest coverage changed over past years in your surrounding?

1. Increased 2. Decreased 3. Same

14. Do you know about biogas plant?

1. Yes 2. No If yes, how did you come to know about biogas plant?

1. Biogas Companies 2. Government official 3. Service provider 4. NGO/CBOs 5. Community leaders 6. Friends/relatives 7. Others (specify)

15. Why don’t you install the biogas plant in your house?

1. Lack of money 2. Enough Firewood 3. Problems of land 4. No cattle 5. Others (Specify)

16. How is the indoor pollution in the kitchen and frequency of disease occurrence among

household members? 1. Very High 2. High 3. Normal 4. Do not know

17. How do you see the possibility of biogas sector development in this village?

18. Do you know the existing biogas companies working in this district?

19. Who are the potential customers and how can Biogas Company reach them?


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20. What factors influence the buying of the customers?

21. In which situation you will install a biogas plant? a) When there is subsidy only b) When both subsidy and credits are available c) When there is additional support along with subsidy and credit

22. What is the convenient price that customers can afford for biogas plants?

23. Which model and size do you prefer? Why that model and size?

24. Field Observation/Suggestions


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Banks and MFI

1. What do you see as your achievements in your involvement in the biogas programme?

2. Who are your potential customers and how Biogas Company can reach to them?

3. What percentage and at what rate do you provide loan for the installation of biogas? What is the loan repayment period?

4. How much you have issues as loan per year?

5. What makes you comfortable to allocate further for loan portfolio to biogas?

6. What is the figure that you have made in the mind to allocate credits for this year? Or

next two years?

7. How is your loan repayment rate?

8. What is the present position in terms of capacity development of the companies? In which areas is CD seen to be adequate and in which areas is further CD required?

9. What support do you expect to issue more credits for Biogas?

10. Your perceptions/suggestions for the biogas financing and their promotion in Nepal


97

Annex 10.7: Biogas Companies having HO/Branch on the sampled districts Biogas Companies having Head Office/ Branch on sampled districts

Working District

Company Name Address/Contact (HO) Address/Contact (Branch)

Company Code

Branch Code

Grade

Baglung

Bageshori Gobargas Company (Pvt.) Ltd.

Pokhara Nagarpalika-8, Newroad, Kaski Phone: 061-526785 Contact person: Mr. Lekh Nath Tiwari (Chairman) 9856025700

Baglung Nagarpalika Contact person: Mr. Motiram Nepali 9847821258

BGG BAG B

Pragati Gobargas Sewa Kendra (Pvt.) Ltd.

Vyash Municipality-11,Main Road- Damauli, Tanahu Phone: 065-560573/560873 (Ktm 01-4388604) Contact person: Mr. Krishna C. Subedi (MD) 9851108570 Mr. Prakash C. Subedi (D) 9746001627

Baglung Bazar Contact person: Mr. Sesh Mani Bastola 9846031783

PGG BAG A

Dailekh

NA NA NA BKG DAI NA

Bhrikuti Gobargas Company (Pvt.) Ltd.

Jeetpur-4, Kapilbastu Phone: 076-690822 Contact person: Mrs. Kabita Bashyal (MD) 9847086201 Mr. Kamal Gyawali 9747001452

Dailekh BRI DAI B

NA NA NA MPG DAI NA

Seti Mahakali Gobargas Tatha krishi Yantra Bikash (Pvt.) Ltd

Dhangadhi-4, Hasanpur, Kailali Phone: 091-521221 Contact person: Mr. Rishav R. Acharya (Chairman) 9851115610

Khalanga, Dailekh Mr. Gagan Bd. Basnet

SMG DAI B

Dolkha

Gharelu Gobargas Tatha Prabidhi Bikash Co. (Pvt.) Ltd.

Butwal 10, Sukranagar, Rupandehi Phone: 071-540827 Contact person: Mr. Dom Bd. Gurung (GM) 9857020852

Mainapokhara, Dolakha Contact person: Mr. Kumar Adhikari 9744036122

GPC DOL B

Doti

NA NA NA KPD DOT NA

Loard Buddha Nabikaraniya Urja (Pvt.) Ltd.

Kathmandu-14, Dhumbarahi, Kathmandu Phone: 01-4111205 Contact person: Mr. Ram Bd. Magar (EC) 9851004751

Lamamandau-8, Gopghat, Doti Contact person: Mr. Prem Bd. Balayar 9848408723

LBN DOT A


98

Rapti Gobargas Company (Pvt.) Ltd.

Chapagaun-6, Buspark, Lalitpur Phone: 01-5547930 Contact person: Mr. Upendra Rimal (GM) 9841644514

Dipayal-11, Silgadi, Doti Contact person: Mr. Dupechen Lama 9841555657

RAP DOT A

Kanchanpur

Gharelu Gobargas Tatha Prabidhi Bikash Co. (Pvt.) Ltd.

Butwal 10, Sukranagar, Rupandehi Phone: 071-540827 Contact person: Mr. Dom Bd. Gurung (GM) 9857020852

Mahendranagar Contact person: Mr. Umapati Bhatta 9741033352

GPC KAN B

KP Byabashik Sewa (Pvt.) Ltd.

Birendranagar-6, Buddhapathline, Surkhet Phone: 083521428 Contact person: Mr. Krishna Pd. Dhakal (MD) 9848029365

Bhimdatta-4, Mahendranagar Contact person: Mr. Karan Singha Bista 9748036825

KPS KAN D

Lekbeshi Saurya Urja Tatha Cobargas Sewa Co. (Pvt.) Ltd.

Butwal-8, Traffic Chowk, Rupandehi Phone: 071-542538 Contact person Mr. Rabilal Aryal (GM) 9757000887 Mr.Ram Bd. K.C. (MD) 9757000007

Jhalari-7, Jhalari Bazar, kanchanpur Contact person: Mr. Gopal Singh Bohara 9749537613

LEC KAN C

Rastriya Gobargas Nirman Tatha Sewa (Pvt.) Ltd.

Bharatpur-10, Chaubishkothi, Chitwan Phone: 056-527663, 01-5000748/5525332 Contact person: Mr. Ram Chandra Gautam (MD) 9855056758 Mr. Keshav Devkota (D) 9855055151

Mahendranagar, Kanchanpur Contact person: Rajendra Thapa 9741091962

RGG KAN A

Seti Mahakali Gobargas Tatha krishi Yantra Bikash (Pvt.) Ltd

Dhangadhi-4, Hasanpur, Kailali Phone: 091-521221 Contact person: Mr. Rishav R. Acharya (Chairman) 9851115610

Mahendranagar-18, Kanchanpur Contact person: Mr. Bhoj Raj Panta 9848720396

SMG KAN B

Sudurpaschimanchal Gobargas Tatha Urja Bikash Company (Pvt.) Ltd.

Bhimdatta-18, Janaki Tole, Kanchanpur Phone: 099-525096 Contact Person: Mr. Surendra Bd. Shing (MD) 9858750210

Mahendranagar-18, Kanchanpur Contact person: Mr. Padam Lal Dawadi

SPG KAN B


99

Kapilbastu

Bhrikuti Gobargas Company (Pvt.) Ltd.

Jeetpur-4, Kapilbastu Phone: 076-690822 Contact person: Mrs. Kabita Bashyal (MD) 9847086201 Mr. Kamal Gyawali 9747001452

Jeetpur-4, Kapilbastu Contact person: Mrs. Kabita Bashyal (MD) 9847086201

BRI KAP B

Janapriya Gobargas Tatha Nirman Company (Pvt.) Ltd.

Barakalpur-2, Kapilbastu Phone: 076-690372 Contact person: Mr.Keshav Raj Khanal (MD) 9847045177

Barakalpur-2, Imiliya, Kapilvastu Contact person: Mr. Hum Bd. Chudali 9847071117

JPG KAP A

Panchthar

Ravi Urja Bikash Company (Pvt.) Ltd.

Ravi-5, Panchathar Phone: 023582753 Contact person: Mr. Sharan Kr. Rai (ED) 9844602358

RUB PAN

Munal Gobargas Company (Pvt.) Ltd

Urlabari-2, Morang Phone: 021-540025 Contact person: Mr. Yuba Raj Poudel (GM) 9842033229, 9814388764

Phidim bazar-1, Panchthar

MGC PAN A

Saptari

NA NA NA AID SAP NA

NA NA NA MMU SAP NA

NA NA NA SWB SAP NA

Sarlahi

All Nepal Biogas Company (Pvt.) Ltd

Banepa-10, Buspark, Kavre Phone: 011-663677 Contact person: Mr. Dhruba Pd. Chaulagain (MD) 9851115060 Mr. Upendra Sapkota 9841387305

Hariwan, Sarlahi Contact person: Mr. Devendra Pokharel 9844063619

ANB SAR B

Biogas Tatha Urja Bikash Company (Pvt.) Ltd.

Bharatpur-10, Hakimchowk, Chitwan Phone: 056-523878/694062 Contact person: Mr. Lok Nath Ghimire (MD) 9855055548 Mr. Ram Hari KC (D) 9746009545

Lalbandi, Sarlahi BBI SAR A

Everest Gobargas Company (Pvt.) Ltd.

Lalbandi-1, Sarlahi Phone: 048-23015, 01-4823016 Contact person: Mr. Dilip Kumar Acharya © 9851033022

Lalbandi-1, Sarlahi Contact person: Mr. Nil Pd. Gautam 9744016826

EGC SAR B


100

Rapti Gobargas Company (Pvt.) Ltd.

Chapagaun-6, Buspark, Lalitpur Phone: 01-5547930 Contact person: Mr. Upendra Rimal (GM) 9841644514

Nawalpur, Sarlahi Contact person: Mr. Rajan Pd. Mainali 9854036341

RAP SAR A

Rastriya Gobargas Nirman Tatha Sewa (Pvt.) Ltd.

Bharatpur-10, Chaubishkothi, Chitwan Phone: 056-527663, 01-5000748/5525332 Contact person: Mr. Ram Chandra Gautam (MD) 9855056758 Mr. Keshav Devkota (D) 9855055151

Hariwan, Sarlahi Contact person: Mr. Top Bd. Ranabhat 046-530153

RGG SAR A


101

Annex 10.8: Feasible Households for biogas installation SN Name of district Total Households Feasible Installed Potential HHs Potential Percentage (%) Country Potential % 1 Makwanpur 86127 24195 21888 2307 2.68 0.22 2 Tanahun 78309 20078 18050 2028 2.59 0.20 3 Kaski 125673 18594 16258 2336 1.86 0.23 4 Lamjung 42079 11447 9408 2039 4.85 0.20 5 Kavrepalanchowk 80720 22925 9068 13857 17.17 1.34 6 Syanja 68881 26259 7621 18638 27.06 1.80 7 Dhading 73851 27152 6745 20407 27.63 1.97 8 Palpa 59291 19438 6515 12923 21.80 1.25 9 Gorkha 66506 20579 5665 14914 22.43 1.44 10 Ilam 64502 24341 4166 20175 31.28 1.95 11 Nuwakot 59215 21130 3304 17826 30.10 1.72 12 Dhankuta 37637 14268 2410 11858 31.51 1.15 13 Tehrathum 22094 9421 1719 7702 34.86 0.75 14 Gulmi 64921 25709 1630 24079 37.09 2.33 15 Dolakha 45688 15559 1446 14113 30.89 1.37 16 Ramechhap 43910 18624 1432 17192 39.15 1.66 17 Sindhupalchowk 66688 20754 1332 19422 29.12 1.88 18 Pyuthan 47730 21104 1257 19847 41.58 1.92 19 Myagdi 27762 8195 974 7221 26.01 0.70 20 Parbat 35719 12597 865 11732 32.85 1.14 21 Baglung 61522 22066 799 21267 34.57 2.06 22 Arghakhachi 46835 18609 790 17819 38.05 1.72 23 Panchthar 41196 15708 721 14987 36.38 1.45 24 Rasuwa 9778 3099 460 2639 26.99 0.26 25 Bhojpur 39419 20075 271 19804 50.24 1.92 26 Okhaldhunga 32502 15004 194 14810 45.57 1.43 27 Salyan 46556 21725 163 21562 46.31 2.09 28 Dadeldhura 27045 14001 129 13872 51.29 1.34


102

29 Doti 41440 19268 104 19164 46.25 1.85 30 Khotang 42664 20256 61 20195 47.33 1.95 31 Baitadi 45191 24381 44 24337 53.85 2.35 32 Sankhuwasabha 34624 1731 466 1265 3.65 0.12 33 Darchula 24618 1755 295 1460 5.93 0.14 34 Bajhang 33786 2344 267 2077 6.15 0.20 35 Dailekh 48919 3193 132 3061 6.26 0.30 36 Taplejung 26509 1193 115 1078 4.07 0.10 37 Solukhumbu 23785 1361 100 1261 5.30 0.12 38 Kalikot 23013 1567 90 1477 6.42 0.14 39 Rukum 41856 2325 59 2266 5.41 0.22 40 Rolpa 43757 2767 42 2725 6.23 0.26 41 Achham 48351 2762 17 2745 5.68 0.27 42 Jajarkot 30472 1983 15 1968 6.46 0.19 43 Mustang 3354 127 14 113 3.37 0.01 44 Mugu 9619 627 8 619 6.44 0.06 45 Jumla 19303 1152 6 1146 5.94 0.11 46 Bajura 24908 1595 5 1590 6.38 0.15 47 Dolpa 7488 363 4 359 4.79 0.03 48 Humla 9479 486 2 484 5.11 0.05 49 Manang 1480 40 5 35 2.36 0.00 50 Jhapa 184552 54216 21813 32403 17.56 3.14 51 Chitwan 132462 24813 17458 7355 5.55 0.71 52 Kailali 142480 46065 16192 29873 20.97 2.89 53 Morang 213997 54742 12110 42632 19.92 4.13 54 Kanchanpur 82152 35468 11094 24374 29.67 2.36 55 Dang 116415 35210 10798 24412 20.97 2.36 56 Nawalparasi 128793 27399 10205 17194 13.35 1.66 57 Bardiya 83176 21736 8726 13010 15.64 1.26 58 Rupandehi 163916 30280 7417 22863 13.95 2.21


103

59 Sindhuli 57581 25741 6791 18950 32.91 1.83 60 Sarlahi 132844 33380 5019 28361 21.35 2.74 61 Sunsari 162407 37381 4843 32538 20.03 3.15 62 Udayapur 66557 22359 4701 17658 26.53 1.71 63 Bara 108635 19331 4551 14780 13.61 1.43 64 Kapilbastu 91321 26727 4483 22244 24.36 2.15 65 Banke 94773 17275 4401 12874 13.58 1.25 66 Surkhet 72863 27693 2924 24769 33.99 2.40 67 Rautahat 106668 18300 2002 16298 15.28 1.58 68 Mahottari 111316 28660 1493 27167 24.41 2.63 69 Parsa 95536 10806 831 9975 10.44 0.97 70 Siraha 117962 35876 757 35119 29.77 3.40 71 Dhanusa 138249 33756 661 33095 23.94 3.20 72 Saptari 121098 38601 486 38115 31.47 3.69 73 Lalitpur 109797 4048 1541 2507 2.28 0.24 74 Kathmandu 436344 6332 1312 5020 1.15 0.49 75 Bhaktapur 68636 3814 775 3039 4.43 0.29 Total 1323936 290510 1033426 100.00


104

Annex 10.9: Number of biogas companies/branches in each districts

SN Name of district Number of Biogas installed

Remaining Potentials

Number of Companies involved ( main and

Branch offices) 1 Achham 17 2,745 0 2 Bajura 5 1,590 0 3 Dailekh 132 3,061 0 4 Dolpa 4 359 0 5 Manang - 40 0 6 Mugu 8 619 0 7 Bajhang 267 2,077 1 8 Bhojpur 271 19,804 1 9 Humla 2 484 1

10 Jajarkot 15 1,968 1 11 Jumla 6 1,146 1 12 Kalikot 90 1,477 1 13 Khotang 61 20,195 1 14 Mustang 14 113 1 15 Rasuwa 460 2,639 1 16 Rukum 59 2,266 1 17 Taplejung 115 1,078 1 18 Baitadi 44 24,337 2 19 Dadeldhura 129 13,872 2 20 Dhanusha 661 33,095 2 21 Dolakha 1,446 14,113 2 22 Myagdi 974 7,221 2 23 Rolpa 42 2,725 2 24 Saptari 486 38,115 2 25 Solukhumbu 100 1,261 2 26 Arghakhachi 790 17,819 3 27 Darchula 295 1,460 3 28 Doti 104 19,164 3 29 Lalitpur 1,541 2,507 3 30 Okhaldhunga 194 14,810 3 31 Panchthar 721 14,987 3 32 Ramechhap 1,432 17,192 3 33 Salyan 163 21,562 3 34 Baglung 799 21,267 4 35 Kathmandu 1,312 5,020 4 36 Parbat 865 11,732 4 37 Parsa 831 9,975 4 38 Pyuthan 1,257 19,847 4


105

39 Sindhupalchowk 1,332 19,422 4 40 Bhaktapur 775 3,039 5 41 Dhankuta 2,410 11,858 5 42 Gulmi 1,630 24,079 5 43 Kapilbastu 4,483 22,244 5 44 Sankhuwasabha 466 1,265 5 45 Tehrathum 1,719 7,702 5 46 Mahottari 1,493 27,167 6 47 Rautahat 2,002 16,298 6 48 Chitwan 17,458 7,355 7 49 Sarlahi 5,019 28,361 7 50 Siraha 757 35,119 7 51 Bara 4,551 14,780 8 52 Gorkha 5,665 14,914 8 53 Palpa 6,515 12,923 8 54 Sunsari 4,843 32,538 8 55 Surkhet 2,924 24,769 8 56 Banke 4,401 12,874 9 57 Kavrepalanchowk 9,068 13,857 9 58 Lamjung 9,408 2,039 9 59 Nuwakot 3,304 17,826 9 60 Kaski 16,258 2,336 10 61 Makwanpur 21,888 2,307 10 62 Morang 12,110 42,632 10 63 Syangja 7,621 18,638 10 64 Udayapur 4,701 17,658 10 65 Dhading 6,745 20,407 11 66 Dang 10,798 24,412 12 67 Ilam 4,166 20,175 12 68 Jhapa 21,813 32,403 13 69 Rupandehi 7,417 22,863 13 70 Kailali 16,192 29,873 14 71 Kanchanpur 11,094 24,374 14 72 Nawalparasi 10,205 17,194 14 73 Sindhuli 6,791 18,950 15 74 Tanahun 18,050 2,028 15 75 Bardiya 8,726 13,010 16

Total 290,510 1,033,426


106

Annex 10.10: List of biogas companies along with their branch offices and working districts

Name of Companies Company Code

Head Office Working Districts

Branch Off. Working Districts

All Nepal Biogas Company (Pvt.) Ltd.

ANB Kavrepalanchowk

Kavrepalanchowk, Bhaktapur

Makwanpur, Sarlahi

Makwanpur, Bara, Sarlahi, Sindhuli

BiogasTatha Urja Bikash Company (Pvt.) Ltd.

BBI

Chitwan Chitwan, Makwanpur,

Bajura, Dang, Dhading ,Gorkha ,Kanchanpur, Kailali, Banke, Rupandehi Sarlahi, Solukhumbu, Udayapur

Bajhang, Dang ,Banke, Dhading, Nuwakot, Gorkha, Tanahun, Kanchanpur, Kailali, Bardiya, Dadeldhura Rupandehi, Sarlahi, Bara, Sindhuli, Solukhumbu, Udayapur

Bageshori Gobargas Company (Pvt.) Ltd.

BGG

Kaski

Kaski, Tanahun

Baglung, Dhading, Syangja

Pyuthan, Dhading, Nuwakot, Syangja, Gulmi, Palpa

Bhubaneshori Gobargas Company (P ) L d

BHU

Dhading

Dhading, Nuwakot

Bhagawati Gobargas Tatha Urja Bikash Company (Pvt.) Ltd.

BGU

Sunsari

Sunsari, Dhankuta

Okhaldhunga Sankhuwasabha

Okhaldhunga, Sankhuwasabha, Tehrathum

Bhumandaliya Samyukta Byabasthapan (Pvt.) L d

BMS

Sindhupalchowk

Sindhupalchowk Kavrepalanch

k

Baikalpik Urja Bikash Company (Pvt.) Ltd.

BUB

Banke

Banke Bardiya Dang

kh

Jumla Kailali

Jumla, Humla, Kailali Kanchanpur, Doti

Deurali Gobargas Company (Pvt.) Ltd.

DEU

Kavre

Kavrepalanchowk, Bhaktapur, Sindhuli

Kathmandu

Bhaktapur

Danphe Biogas Company (Pvt.) Ltd.

DGG

Jhapa

Jhapa

Ilam Tehrathum

Ilam, Jhapa, Terhathum, Sankhuwasabha, Dhankuta


107

Dipshikha Urja Bikash Company (Pvt.) Ltd.

DUV

Kaski

Kaski Syangja

Kailali

Bardiya Kailali Kanchanpur

Gandaki Gobargas Sewa Kendra (Pvt.) Ltd.

GGK

Kaski

Kaski Tanahu

Myagdi, Syangja

Baglung, Mustang, Myagdi, Parbat, Gulmi, Palpa, Syangja

Gharelu GobargasTatha Prabidhi Bikash Company (Pvt.) Ltd.

GPC

Rupandehi

Palpa Rupandehi

Bardiya, Dang, Darchula, Dolakha, Kalikot, Kanchanpur, Kailali, Palpa, Ramechhap, Syangja, Kailali,

Bardiya, Banke, Dang, Darchula, Dolakha, Kalikot, Kanchanpur, Dadeldhura, Kailali, Doti, Palpa, Syangja, Ramechhap, Dolakha, Okhaldhunga, Syangja, Parbat

Gorakhkali GobargasTatha Urja Bikash Company (Pvt.)

GUD

Gorkha

Gorkha Dhading

Hetauda Gobargas Company (Pvt.) Ltd.

HTC

Makwanpur

Bara Makwanpur Rautahat

Parsa, Nuwakot

Parsa, Bara, Chitwan, Nuwakot, Dhading, Rasuwa

Himal Energy Development C (P t ) Ltd

HED Chitwan Chitwan Lamjung Lamjung

Janta Urja Bikash Company (Pvt.) Ltd.

JGG

Chitwan

Chitwan, Makwanpur, Nawalparasi

Janabhavana Gobargas Udhyog (Pvt.) Ltd.

JGY

Nuwakot

Nuwakot Rasuwa

Janapriya GobargasTatha Nirman Company (P ) L d

JPG Kapilbastu Kapilbastu

Kishan Gobargas Uddhyog (Pvt.) Ltd.

KGY Nuwakot Nuwakot

KP Byabasahik Sewa (Pvt.) Ltd.

KPS

Surkhet

Surkhet

Jajarkot

Jajarkot Salyan


108

Loard Buddha Nabikaraniya Urja Prabidhi Bikash (Pvt.) Ltd.

LBN

Kathmandu

Kathmandu, Kavrepalanchowk, Lalitpur, Nuwakot, Sindhupalchowk

Doti, Kathmandu

Doti, Bhaktapur, Dhading

Lamjung Gobargas Nirman Tatha Gramin Batabaran

hh ( ) d

LGG Lamjung Lamjung

Lokpriya Solar Company (Pvt.) Ltd.

LOC

Sunsari

Sunsari Udayapur

Machapuchre BiogasTatha Gramin Urja Bikash Company (P t ) Ltd

MBG

Tanahun

Gorkha, Lamjung, Tanahun

Munal Biogas Nirman Tatha Urja Bikash Company (Pvt.) Ltd.

MBN

Jhapa

Illam, Jhapa, Morang

Sankhuwasabha, Taplejung

Sankhuwasabha, Panchthar

Mechi Gobargas Company (Pvt.) Ltd.

MEC

Morang

Morang

Jhapa, Sankhuwasabha, Sunsari, Udayapur

Jhapa, Illam Sankhuwasabha, Dhankuta, Tehrathum, Sunsari, Saptari, Udayapur

Munal Gobargas Company (Pvt.) Ltd.

MGC

Morang

Morang, Illam, Jhapa Sunsari

Jhapa, Sankhuwasabha, Panchthar

Jhapa, Illam, Sankhuwasabha, Panchthar, Tehrathum

Mahila Jagriti Gobargas Company (Pvt.) Ltd.

MJB

Bhaktapur

Bhaktapur, Kavrepalanchowk, Sindhupalchowk

Kathmandu

Kathmandu

Mankamana Gobargas Sewa Kendra (Pvt.) Ltd.

MKG

Kaski

Kaski, Tanahun

Syangja

Syangja, Tanahun

Mahila Samuhik Gobargas Company (Pvt.) Ltd.

MSG

Rautahat

Rautahat

Siraha

Sindhuli Udayapur

Marsyandi Gobargas Tatha Urja Company (Pvt.) Ltd.

MUC

Lamjung

Gorkha, Lamjung, Tanahun


109

Nepal Community Bioresources (Pvt.) Ltd.

NCB

Kathmandu

Kavrepalanchowk, Lalitpur

Baitadi, Dang, Kailali, Salyan, Sindhupalchowk, Surkhet

Baitadi, Darchula, Dang, Pyuthan, Kailali, Salyan Sindhupalchowk, Surkhet

New Deep Public Gobargas and Urja Company (Pvt.) Ltd.

NDP

Dang

Dang, Kapilbastu, Rolpa

National Iron and Alternative Power Development Company (Pvt.) Ltd.

NIA

Chitwan

Chitwan, Dhading, Gorkha

Nil Kamal Gobargas Company (Pvt.) Ltd.

NKG

Chitwan

Chitwan, Tanahun

Banke, Dhading, Kailali, Makwanpur, Nawalparasi, Sindhuli

Banke, Bardiya, Dhading, Kailali, Makwanpur, Nawalparasi, Sindhuli, Udayapur

Mandali Gobargas Udhyog (Pvt.) Ltd.

MAN

Dhading

Dhading, Makwanpur, Nuwakot

Paschimanchal Dhaulagiri Gobargas Tatha Sewa (Pvt.) Ltd.

PDG

Rupandehi

Rupandehi, Palpa

Bardiya

Bardiya, Banke, Surkhet

Pragati Gobargas Sewa Kendra (Pvt.) Ltd.

PGG

Tanahun

Tanahun, Syangja, Kaski, Lamjung, Nawalparasi

Baglung, Kaski, Kathmandu, Nawalparasi, Syangja, Banke

Baglung, Myagdi, Parbat, Kaski, Tanahun, Dhading, Nawalparasi, Chitwan, Rupandehi, Syangja, Banke, Bardiya, Dang

Ratna Jyoti GobargasTatha Urja Bikash company (Pvt.) Ltd.

RAN

Tanahun

Tanahun, Gorkha, Kaski, Lamjung

Kathmandu

Kavrepalanchowk


110

Rapti Renewable Energy Service (Pvt.) Ltd.

RAP

Lalitpur

Lalitpur, Kathmandu

Bara, Doti, Makwanpur, Nuwakot, Sarlahi, Banke, Mahottari

Bara, Parsa, Rautahat, Doti, Kailali, Makwanpur, Dhading, Nuwakot, Sarlahi, Sindhuli, Mahottari, Banke, Bardiya, Dang, Mahottari, Dhanusha, Sarlahi

Rastriya Gobargas NirmanTatha Sewa (Pvt.) Ltd.

RGG

Chitwan

Chitwan, Dhading, Nawalparasi

Banke, Bardiya, Dang, Kanchanpur, Kaski, Kavrepalanchowk, Kailali, Lalitpur, Makwanpur, Nawalparasi, Palpa, Rupandehi, Sarlahi, Siraha, Sindhuli, Tanahun

Banke, Bardiya, Dang, Kanchanpur, Kaski, Nawalparasi, Parbat, Kavrepalanchowk, Sindhuli, Kailali, Kathmandu, Makwanpur, Palpa, Syangja, Rupandehi , Kapilbastu, Sarlahi, Sindhuli, Siraha, Saptari, Udayapur, Okhaldhunga, Tanahun, Gorkha, Kaski, Lamjung, Gulmi, Rukum

Biogas Construction and Energy Pvt.Ltd.

BCE

Bardiya

Bardiya, Surkhet, Banke

Srijanshil Baikalpic Urja (Pvt.) Ltd.

RMG

Ramechhap

Ramechhap, Sindhuli

Suryamukhi Baikalpik Urja Bikash Company (Pvt.) Ltd.

SBU

Sindhuli

Sindhuli, Mahottari, Ramechhap, Dhanusha

Rolpa

Rolpa, Salyan

Rapti Solar Power Tatha Gobargas Sewa (Pvt.) Ltd.

RSG

Dang

Dang Kailali, Rolpa Kailali, Pyuthan

RSS Baikalpik Urja Bikash Company (Pvt.) Ltd.

RSS

Banke

Banke, Bardiya

Suryodaya Biogas Tatha Urja Bikash Company (Pvt.) Ltd.

SBB

Morang

Morang, Sunsari

Illam, Jhapa, Sankhuwasabha

Illam, Jhapa, Sankhuwasabha, Dhankuta, Tehrathum


111

Shova Biogas Company (Pvt.) Ltd.

SGG

Bara

Bara, Makwanpur, Parsa,

Bardiya

Bardiya

Sidhakali BiogasTatha Urja Bikash Company (Pvt.) Ltd.

SID

Jhapa

Illam, Jhapa

Dhankuta, Taplejung, Saptari

Dhankuta, Morang, Sunsari, Taplejung, Saptari, Siraha, Udayapur,

Seti Mahakali Gobargas Tatha Krishi Yantra Bikash (Pvt.) Ltd.

SMG

Kailali

Kailali Kanchanpur

Surkhet, Kailali, Dang, Kanchanpur

Surkhet, Bardiya, Dang, Kanchanpur

Sarbodaya Urja Tatha Biogas (Pvt.) Ltd.

SUG

Lamjung

Lamjung, Gorkha, Tanahun

Sulav Biogas and Alternative Energy Development Services C (P ) L d

SUL

Tanahu

Kaski, Tanahun

Tribeni Gobargas Company (Pvt.) Ltd.

TGG

Nawalparasi

Nawalparasi Palpa Rupandehi

Arghakhachi, Bardiya, Kailali

Arghakhachi, Kapilbastu, Bardiya, Banke, Kailali, Kanchanpur

United BiogasTatha Urja Bikash Company (Pvt.) Ltd.

UNO

Sunsari

Sunsari, Morang, Udayapur

Dhankuta, Khotang

Dhankuta, Sankhuwasabha, Tehrathum, Khotang, Bhojpur

Public Biogas Tatha Urja Bikas Company Pvt. Ltd.

PGC

Rupandehi

Rupandehi, Nawalparasi

Dang, Gulmi

Dang, Pyuthan, Gulmi, Arghakhachi

Unnat Baikalpik Urja (Pvt.)Ltd

UBU

Rautahat

Rautahat, Sarlahi, Bara

Bara

Bara, Parsa, Rautahat

Pathivara Gobargas Company

PAR

Illam

Illam, Jhapa, Panchthar

Renewable Energy Water and Sanitation Service Centre

REW Kalikot Kalikot

Nipurna Gobargas Company Pvt.Ltd

NIP Tanahun Tanahun


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Jwala Baikalpik Company (Pvt) Ltd.

JBC

Sindhuli

Sindhuli, Mahottari

Kanchanjanga Gobargas tatha Urja Bikas Company Pvt.

d

KGC

Jhapa

Jhapa, Illam, Morang

Munal Urja Bikas Company Pvt. Ltd.

MUB

Jhapa

Jhapa, Illam, Morang

Abiskar Energy Pvt. Ltd.

AEC

Mahottari

Mahottari, Dhanusha, Sarlahi, Sindhuli

Siraha

Siraha, Dhanusha, Udayapur

Aadhunik Baikalpik Urja Company Pvt. Ltd.

ABU

Kavre

Okhaldhunga, Sindhuli, Udayapur

Axis Investment and Development Pvt. Ltd.

AID Lalitpur

Bheri Karnali Gobargas Tatha Krishi Yantra Bikas Pvt. Ltd.

BKG

Dailekh

Dailekh, Surkhet, Jajarkot

Birgunj Nepal Business Consultancy Pvt. Ltd.

BNB Parsa Parsa

Budhi Nanda Bio Pvt. Ltd.

BUN Bajura Bajura

Dulahi Biogas Tatha Nabikaraniya Urja Bikas Company Pvt.

d

DBU Okhaldhunga Okhaldhunga

D.L. Energy Concern Pvt. Ltd.

DLE Kathmandu

Nepal Eco Life Travel and Adventure Academy

ECO Kathmandu

Everest Gobargas Company Pvt.Ltd.

EGC Sarlahi

Gharelu Bio Gobargas Company Pvt. Ltd.

GBG

Rupandehi

Darchula, Baitadi, Bajhang


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Himchuli Multipurpose Company Pvt. Ltd.

HBC Kavre

GGC Nepal Pvt. Ltd. GGN Kathmandu

Hamro Nepal Gobargas Nirman tatha Urja Bikas Company Pvt. Ltd.

HNG

Dadeldhura

Dadeldhura, Baitadi, Kanchanpur

Grameen Urja Bikas Kendra

GUB Rukum Rukum

Jaya Bhawani Gobargas Company Pvt. Ltd.

JAY

Siraha

Siraha, Sindhuli, Udayapur

Janakpur Biogas Udhog

JBU Dhanusha Dhanusha

Jaljala Construction Energy Development and Suppliers Pvt. Ltd.

JCE Rolpa Rolpa

Jwalamukhi Gobargas Udhog Pvt. Ltd.

JGU Rautahat Rautahat

Krishnasar Gobargas tatha Urja Bikas Company Pvt. Ltd.

KGG Pyuthan Pyuthan

Khaptad Gobargas Pvt. Ltd.

KPD

Doti

Doti, Achham, Kailali

Karnali Multipurpose Development Services Pvt. Ltd.

KMP Kalikot Kalikot

Lekbeshi Saurya Urja Tatha Gobargas Sewa Company (Pvt) Ltd.

LEC

Rupandehi

Banke, Dang, Gulmi, Kanchanpur

Bardiya, Surkhet, Dang, Gulmi, Arghakhachi, Kanchanpur

Lokkalyan Gobargas Company Pvt. Ltd.

LKG Jhapa Dhanusha

Mount Malika Gobar

Gas Company Pvt. Ltd.

MMG

Bajura

Bajura, Bajhang, Achham


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Mahottari Biogas Tatha Urja Bikas Company Pvt. Ltd.

MBT Mahottari Mahottari

Madhya pachim Gobargas Tatha Urja Bikas Company Pvt. L d

MPG

Dailekh

Dailekh, Surkhet, Achham

Mechi Mahakali Urja Bikas Company Pvt. Ltd.

MMU

Saptari

Saptari, Siraha, Sunsari

Madhya Terai Biogas Tatha Urja Company Pvt. Ltd.

MTB

Dhanusha

Dhanusha, Mahottari, Siraha

Numbur Energy Urja Pvt. Ltd.

NEU

Ramechhep

Ramechhap, Solukhumbu, Dolakha

National Biogas Tatha Urja Bikas Company Pvt. Ltd.

NBU Taplejung Taplejung

Nepal Power Solution Pvt. Ltd.

NPS Makwanpur

Nilkantha Technology Solution Pvt. Ltd.

NTS Dhading Rautahat

P.N. Urja Bikas Pvt. Ltd.

PUB Udayapur

Nepal Urja Centre Pvt. Ltd.

NUC

Kathmandu

Manang, Okhaldhunga

Rajdhani Urja Bikas Company Pvt. Ltd.

RAJ

Mahottari

Mahottari, Sarlahi, Sindhuli

Renewable Energy & Water Supply and Sanitation Promotion C P L d

RED Rautahat Rautahat

Rastriya Urja Bikas Company Pvt. Ltd.

RUC

Jajarkot

Jajarkot, Surkhet, Salyan

Salhesh Babasayeak Sewa Pvt. Ltd.

SBS Mahottari Mahottari


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Suryodaya Gobargas Company Pvt.Ltd

SGC

Morang

Morang, Jhapa, Sunsari

Sahayatri Gobargas Tatha Urja Bikas Company Pvt. Ltd.

SGT Khotang Khotang

Sudurpaschimanchal Gobargas Tatha Urja Bikas Company Pvt.Ltd.

SPG Kanchanpur Kanchanpur Kailali Kailali

Bardiya

Shramik Urja Tatha Biogas Pvt. Ltd.

SUT

Siraha

Siraha, Saptari, Udayapur

Cwdec Gobargas Udhog Pvt. Ltd.

SWB Saptari Saptari

Tropical Biogas Udhog TBC Siraha Siraha

Village Energy and Technology Pvt. Ltd.

VET

Kathmandu

Jajarkot, Kalikot, Rukum

Annex 10.11: Available Human Resources in Biogas Companies Company Code Total staff No of masons

Abiskar G.G. 5 36 ANB

BBI 43 78 BCE 7 16 BGG 16 28 BGU 15 12 BHU 6 6 BMS 5 7 BRI 6 7 BUB 13 35 DEU 6 4 DGG 26 25 DUV 8 20


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EGC 10 12 GGK 7 25 GPC 36 70 GUD 8 22 HED 4 11 HTC 8 18

Jaya Bhawani 5 13 JBC 4 10 JGG 9 12 JGY 13 15 JPG 5 7 KGC 16 9 KGY 5 16

Khaptad G.G. LAL 4 5

Lamjung G.G. 4 9 LBN 7 7

Lokpriya solar MAN 6 14

MBG 7 7 MBN 12 13 MBU

MEC 28 44 MGC 12 25 MJB 6 4 MKG 8 15 MSG 5 7 MUB 13 14 MUC 8 15 NCB

NDP 7 19 NIA 8 10 NIP 3 3 NKG 36 51 PAR 10 9 PDG 8 13 PGC 10 28 PGG 31 80

RAJ ( Rajdhani) RAN 14 6

RAP 33 103 RGG 140 171


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RMG 6 5 RSG

RSS 7 21 SBB 16 30 SBU 5 19 SGC 4 5 SGG 3 11 SID 17 33

SMG 37 82 SPG 18 58 SUG 8 16 SUL 12 7 TGG 34 32 UBU 9 10 UNO 14 25

Karnali Multi Purpose. Num 12 16

MMU 5 4 REW 8 2

Abiskar G.G. 5 36 ANB

BBI 43 78 BCE 7 16 BGG 16 28 BGU 15 12 BHU 6 6 BMS 5 7


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Annex 10.12: Terms of Reference (ToR) for Market Mapping Study For Biogas Companies 1. Introduction The Government of Nepal (GoN) and External Development Partners supporting Nepal's rural and renewable energy sector have designed National Rural and Renewable Energy Programme (NRREP). AEPC has been shouldering with the responsibility on programme implementation for upcoming five years starting from mid-July 2012 to mid-July 2017. It will be completed in a single programme modality. The Biogas Sub-component of NRREP, along with the household plants dwells upon the promotion of community, commercial, institutional biogas plants and municipal scale waste to energy plants. Recently, AEPC has started the promotion of "Sahari Gharelu Biogas Plants" (SGBP). The annual targets of AEPC for different biogas plants are as follows: In total, 26,000 Household Biogas Plants 40 Community and 200 Institutional Biogas Plants At initial, 500 Urban Biogas Plants (SGBP) in Kathmandu valley The target shown on domestic biogas above also tells that domestic biogas promotion is to remain in the programme as main stay. Hence there is a need to escalate and scaling up the promotion and installation activities during the designated Programme period. For this reason there are various programme activities and one of them is to identify the market potential and mapping of those specific areas where domestic biogas has a niche. 1.1 Background Up to now AEPC has already managed the installation of more than 268,000 biogas plants in Nepal covering Terai, Hill, and remote Hill and Mountainous locations. For the wider disseminating of the technology, AEPC has been subsidizing the domestic and large sized biogas plants as per the approved subsidy policy of GoN. In last 2-3 years due to increase in the construction material and labour charges, the promotion of biogas was not as envisaged. Against this background recently GoN has brought new subsidy policy 2069. The new subsidy policy virtually established the principle of 40% subsidy, 40% credit, 20 % cash investment from the owner or 20% labour cost borne by the user itself to build the plant. AEPC has also revised the additional subsidy for regional balance and social inclusion. AEPC and its close stakeholders think that there should be market size increment due to this new provision. In other hand the last market survey for domestic biogas was conducted some four years back but purchasing power of the consumer, migration and for other reasons it is worthwhile to do mapping of market for domestic biogas in new and changed context. Up to now, more than 80 companies have been selected as pre-qualified for the installation and maintenance of biogas plants. Primarily these companies are involved in the promotion of biogas while the national & local NGOs and District Environment and Energy Unit/Sections are also involved in the promotion of biogas in their respective areas. In tandem with this some of the micro finance institutions, banks and development projects are also promoting biogas in their working area.


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As a result of this the data figures show that most of the districts of Mountain, Hill and Terai regions of Nepal have been occupied with the encouraging numbers of biogas plants. But it is also a matter of fact that the most of the districts of Terai seem to be at saturating point on one hand and on the other; there are also the districts mostly at Mountainous location with higher altitude and cold climate. Such situation has created a question on promoting biogas plants in those districts. In the backdrop of above mention context it is, being a dire need to conduct a fresh market mapping study so that, the district wise demands and potentialities for developing biogas plants can be achieved, the promotional strategy can be defined, and the present status of the companies and needed capacity is determined. Likewise, the task of determining working districts for Pre-Qualified biogas companies will be easier. So that, it will be helpful on achieving the annual targets and developing the biogas plants as Renewable Energy (RE) source in every districts, proportionally. 3. Objectives 3.1 Development Objectives The development objective of National Rural and Renewable Energy Programme is to improve the living standard of rural women and men, increase employment of women and men as well as productivity, reduce dependency on traditional energy and attain sustainable development through integrating the alternative energy with the socioeconomic activities of women and men in rural communities. 3.2 Objectives of the Assignment Conduct a broad frame market study on the scope of biogas with an analysis on constructed plants versus demands and potentialities for further dissemination of biogas technologies. The study should be based on all the 75 districts of Nepal. It should assemble all the necessary details on the district wise coverage indicating the proper promotional strategy and need assessment of biogas companies according to the probability of biogas development. 4. Scope of Task (activities) The scope of task will be as mentioned below. But it will be extendable as per the need and nature of the assigned work. This also will be assumed as mandatory to get accomplished:

• Broad market study on the possibility of biogas sector development. • Study of existing biogas companies (head/ branch) working in different locations/

districts, assess their coverage. • Assessments of demands and potentialities of biogas, district wise, comparing the

demands and potentialities of other RE source in those relevant districts. The followings can be considered as guiding points for this;

a) Who are the potential customers and how can Biogas companies reach them? b) Customer profiles such as ethnic group, economic status, geographic distance and

specialty, etc. c) Prospective business locations, cluster or areas in the districts?


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d) Which products (model and size) and services do buyers need or want? e) What factors influence the buying decisions of my customers? f) Do the companies need the price, service, convenience, branding etc. policy? g) What could be the convenient prices that customers can afford for biogas and services? h) Who could be the complementary and supplementary organization/institution in the

districts in order to promote biogas easily including their strengths and weaknesses? For the purpose the consulting firm along with desk study needs to visit at least nine districts selected provided by AEPC of Terai and Hills with required survey in the two VDCs of each district. The data obtained from these visits and survey shall be such that the trends, constraints and possibilities to some extent reflect the nearby districts to determine the potentiality and promotional strategy. At the time the firm is also required to assess the cost of materials of biogas construction of those VDCs and shall work out on the difference/variations with the respective district rate. Assess the need, whether the relevant district should have additional biogas companies

(head/ branch), or are the existing companies will be sufficed or also, if more companies are functional at a low demands and potentialities to grow and explore further the field of biogas.

The capacities (managerial and financial) needed in construction companies so that the supply side can be ensured.

(The firm is required to visit at least four companies of different grades and two companies from low biogas constructed districts of Terai.) Combine all the relevant data, information, analysis and details in a final report. Develop a precise map/graph/chart incorporating/delivering the clear data details on

existing biogas companies, constructed plants and the further potentialities, district wise, which will be helpful on determining the working districts/locations for the companies.

It should be easier and useful to adjust further information in the coming fiscal years according to the changes.

5. Methodology: The appropriate Methodology for the studies is to be proposed by the consulting party. However the following points can be used for the study: Desk Study Field verifications and interactions with potential customers/users. Interaction with DDC, Municipalities, Technical Service Providers, Nepal Biogas

Promotion Association & regional offices, Banks and Micro Finance Institutions. The consulting firm in close coordination with Biogas Sector Partnership Nepal (BSP/N) and Nepal Biogas Promotion Association (NBPA) and District Energy and Environment Units/Sections (DEEU/Ss) will have to make the necessary field survey. The cost shall be borne by the firm itself. The consultant shall in consultation with AEPC/Biogas Subcomponent finalize the appropriate professionals (from BSP/N and NBPA) to be involved in the market research and survey. The


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consultant team along with BSP/N and NBPA selected personal shall consult with the officers of DEEU/S before the field study in the respective chosen districts as provided by AEPC. 6. Inputs from AEPC Basic information and inputs on the assigned task will get from the relevant staffs/officers of AEPC, Biogas Sub-Component. 7. Time and budget 7.1 Timing The consultant/ agency are expected to complete whole tasks within 3 months from the date of contract agreement. 7.2 Budget The budget should be prepared as per proposed format provided in Annex I however it shall not exceed NPR 993,000.00 including VAT and taxes. 8. Deliverables (output) Up to the finalization period of assigned research study, the consulting firm is assumed to do/ submit the followings:

Inception report within two weeks from the date of signing the agreement in print and electronic version.

1st Final report within two months of the date of signing the agreement in electronic version, Draft report in print and electronic version including annex within two and half month of the date

from the signing agreement. Final Report after the incorporation of comments from AEPC and Stakeholders. (Five hard copies and an electronic copy) Map/Graphs/Charts on relevant data and ideas (To be precise).

9. Qualification of the Consulting Firm The consulting firm must be legally registered in Nepal with up to date clearance of taxation and other government requirements. Team Composition: The Consultant shall prepare a team necessarily of following professionals with required numbers with the least stated qualification as below-

1. Team leader: Masters Degree in Business Administration/Studies or Economics or Renewable Energy with at least 5 years of experiences.

1. Mathematician / Statistician Masters with 5 years or Bachelors Degree with 10 years

2. Economist: Masters degree in economics with 5 years of working experiences

3. Market Researcher Appropriate persons from BSP/N and NBPA to be chosen later

4. Field Surveyor/Enumerators Appropriate persons from BSP/N and NBPA to be chosen later


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Annex 10.13: Photographs

Photo 1: Biogas plant of 6 Cu.m. Size in Suda VDC, Kanchanpur

Photo 2: A women (non-user of biogas) exciting to know about biogas technology during field visit at

Shankarpur VDC, Kanchanpur


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Photo 3: A user briefing about benefits of biogas (installed before 10 years)

Photo 4: Mr. Abhaya Karna, Energy and Environment Officer of DEEU, Panchthar


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Photo 5: Happy biogas users at Bharapa VDC, Panchthar

Photo 6: Conducting interview with biogas owner at Baglung district


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Total Potential Calculation-Excel Sheet

SN Name of district Total Households

Total potential HHs with more than 3 livestock

Technical potential of biogas

Total Biogas Feasibility ( considering economic status,

access to other infrastructures including road

,water supply, LPG ,Electricity etc)

Number of Biogas installed

Remaining Potentials Numbers

1 Makwanpur 86,127 43,206 34,565 24,195 21,888 2,307 2 Tanahun 78,309 35,853 28,683 20,078 18,050 2,028 3 Kaski 125,673 33,204 26,563 18,594 16,258 2,336 4 Lamjung 42,079 20,440 16,352 11,447 9,408 2,039 5 Kavrepalanchowk 80,720 40,937 32,750 22,925 9,068 13,857 6 Syangja 68,881 46,891 37,513 26,259 7,621 18,638 7 Dhading 73,851 48,486 38,789 27,152 6,745 20,407 8 Palpa 59,291 34,712 27,769 19,438 6,515 12,923 9 Gorkha 66,506 36,749 29,399 20,579 5,665 14,914 10 Illam 64,502 43,465 34,772 24,341 4,166 20,175 11 Nuwakot 59,215 37,732 30,186 21,130 3,304 17,826 12 Dhankuta 37,637 25,478 20,383 14,268 2,410 11,858 13 Tehrathum 22,094 16,823 13,458 9,421 1,719 7,702 14 Gulmi 64,921 45,908 36,727 25,709 1,630 24,079 15 Dolakha 45,688 27,783 22,227 15,559 1,446 14,113 16 Ramechhap 43,910 33,257 26,606 18,624 1,432 17,192 17 Sindhupalchowk 66,688 37,060 29,648 20,754 1,332 19,422 18 Pyuthan 47,730 37,686 30,149 21,104 1,257 19,847 19 Myagdi 27,762 14,633 11,706 8,195 974 7,221 20 Parbat 35,719 22,495 17,996 12,597 865 11,732 21 Baglung 61,522 39,404 31,523 22,066 799 21,267 22 Arghakhachi 46,835 33,230 26,584 18,609 790 17,819 23 Panchthar 41,196 28,049 22,440 15,708 721 14,987 24 Rasuwa 9,778 5,533 4,426 3,099 460 2,639


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25 Bhojpur 39,419 35,848 28,678 20,075 271 19,804 26 Okhaldhunga 32,502 26,793 21,435 15,004 194 14,810 27 Salyan 46,556 38,794 31,036 21,725 163 21,562 28 Dadeldhura 27,045 25,002 20,002 14,001 129 13,872 29 Doti 41,440 34,406 27,525 19,268 104 19,164 30 Khotang 42,664 36,171 28,937 20,256 61 20,195 31 Baitadi 45,191 43,537 34,829 24,381 44 24,337 32 Sankhuwasabha 34,624 23,082 11,541 1,731 466 1,265 33 Darchula 24,618 23,398 11,699 1,755 295 1,460 34 Bajhang 33,786 31,258 15,629 2,344 267 2,077 35 Dailekh 48,919 42,567 21,284 3,193 132 3,061 36 Taplejung 26,509 15,901 7,951 1,193 115 1,078 37 Solukhumbu 23,785 18,149 9,074 1,361 100 1,261 38 Kalikot 23,013 20,897 10,448 1,567 90 1,477 39 Rukum 41,856 31,002 15,501 2,325 59 2,266 40 Rolpa 43,757 36,893 18,446 2,767 42 2,725 41 Achham 48,351 36,832 18,416 2,762 17 2,745 42 Jajarkot 30,472 26,434 13,217 1,983 15 1,968 43 Mustang 3,354 1,695 848 127 14 113 44 Mugu 9,619 8,362 4,181 627 8 619 45 Jumla 19,303 15,365 7,682 1,152 6 1,146 46 Bajura 24,908 21,266 10,633 1,595 5 1,590 47 Dolpa 7,488 4,833 2,417 363 4 359 48 Humla 9,479 6,475 3,237 486 2 484 49 Manang 1,480 531 265 40 - 40 50 Jhapa 184,552 90,360 90,360 54,216 21,813 32,403 51 Chitwan 132,462 41,356 41,356 24,813 17,458 7,355 52 Kailali 142,480 76,775 76,775 46,065 16,192 29,873 53 Morang 213,997 91,237 91,237 54,742 12,110 42,632


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54 Kanchanpur 82,152 59,114 59,114 35,468 11,094 24,374 55 Dang 116,415 58,683 58,683 35,210 10,798 24,412 56 Nawalparasi 128,793 45,664 45,664 27,399 10,205 17,194 57 Bardiya 83,176 36,227 36,227 21,736 8,726 13,010 58 Rupandehi 163,916 50,466 50,466 30,280 7,417 22,863 59 Sindhuli 57,581 42,901 42,901 25,741 6,791 18,950 60 Sarlahi 132,844 55,634 55,634 33,380 5,019 28,361 61 Sunsari 162,407 62,301 62,301 37,381 4,843 32,538 62 Udayapur 66,557 37,265 37,265 22,359 4,701 17,658 63 Bara 108,635 32,218 32,218 19,331 4,551 14,780 64 Kapilbastu 91,321 44,545 44,545 26,727 4,483 22,244 65 Banke 94,773 28,791 28,791 17,275 4,401 12,874 66 Surkhet 72,863 46,155 46,155 27,693 2,924 24,769 67 Rautahat 106,668 30,499 30,499 18,300 2,002 16,298 68 Mahottari 111,316 47,767 47,767 28,660 1,493 27,167 69 Parsa 95,536 18,010 18,010 10,806 831 9,975 70 Siraha 117,962 59,794 59,794 35,876 757 35,119 71 Dhanusa 138,249 56,259 56,259 33,756 661 33,095 72 Saptari 121,098 64,336 64,336 38,601 486 38,115 73 Lalitpur 109,797 8,433 6,747 4,048 1,541 2,507 74 Kathmandu 436,344 11,108 10,553 6,332 1,312 5,020 75 Bhaktapur 68,636 6,356 6,356 3,814 775 3,039

Total 2,596,763 2,206,138 1,323,936 290,510 1,033,426


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