Using the E-P-T triangle (a program approach) To analyze The Biogas Support Programme Nepal,...

Using the E-P-T triangle(a program approach)

To analyzeThe Biogas Support Programme

Nepal, (1992-present)&

The E-C interaction(a micro-economic analysis)

To analyzeToyola Energy, Ltd.Ghana, (2006-present)

Policy Technology

Enterprise

The E-P-T triangle&

The Biogas Support Programme

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E

The Biogas Support ProgrammeOverview

Began – 1992, Nepal What – A government program that

promotes biogas technology Now (2008) – In its 4th phase (’03-’09);

registered as a CDM project Outcomes/Impacts - More than

190,000 homes have digesters; theprice has fallen

significantly.


http://www.youtube.com/watch?v=b_lZTSJ47rI

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Historical Development

It all began with a technology push. Early experimentation with biogas c. 1955 Research continues in 60s and 70s Government established Gobar Gas Co.

(GGC) in 1977.

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The technology was quickly aided by policy.- 1st official government promotion of biogas,

1974- Gobar Gas Co. (GCC) established, 1977- Biogas targets incorporated into 7th national

5-year plan, 1984-1989- Biogas Support Programme (BSP) launched in

1992

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Inclusion of the private sector at the beginning of the BSP From the start of the BSP, private companies

were included as part of the strategy to extend biogas technology to rural households.

There are now 72 enterprises operating in conjunction with the BSP

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Balanced Implementation The BSP includes a wide range of partners

who have provided consistent and long-term support.

Gov’t stakeholders International donor organizations Financial institutions Local biogas companies


Balanced Implementation

Source: Bajgain, Sundar & Indira Shakya. “The Biogas Support Program: A successful model of public-private partnership for rural household energy supply.” The Ministry of Foreign Affairs, The Netherlands; SNV; Biogas Sector Partnership, Nepal; 2005.

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Balanced Implementation More about the policy:

(1992-97) 8th 5-year plan: the BSP arose hand in hand with an institutional framework for promoting decentralized energy resources.

Alternative Energy Promotion Center (AEPC) founded, becomes major implementing agency.

Capital subsidies (25%) and interest subsidies provided.

(1998-2003) 9th 5-year plan sets target of 90,000 biogas installations

Additional support provided by providingtax exemptions on all biogas supplies

(2003-2009) 10th 5-year plan targets anadditional 135,000 systems

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Balanced Implementation Significant parts of the BSP, originating at

the policy level, related to technology. Development of a uniform and rigorous set of

production, installation and maintenance standards (eventually ISO).

Helped establish consumer confidence Reduced lending risk (now 167 MFIs engaged) Facilitated registration of project with the CDM

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Balanced Implementation Much technical support was provided by

international donor partners SNV/N work with the GGC began in 1989,

sought to improve technical performance of digesters and reduce their overall cost.

Technical capacity building support extended at all levels of the program.

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Balanced Implementation Significant parts of the BSP, originating at

the policy level, related to enterprise Engagement of 72 biogas construction

companies in 2008 vs only one at the start of the program in 1992 (the government-owned GGC).

Entry of private sector companies in at every stage of the value chain (installation, parts manufacture, appliances, etc.).

167 MFIs actively lending for biogasthanks to availability of special funds,

guarantees and awareness raising.

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Other Reasons for Success Long term (multi-decadal) support

facilitates growth, learning by doing and program continuity.

Excellent M&E… …allowed shortcomings and gaps to be

quickly addressed. …demonstrated program success and helped

justify new and continued resources. …aided CDM registration.

Inclusion of financing options… …increased depth of outreach. …reduced the level of subsidy required

to achieve same results.

E(Enterprise)

C(Customer)

The E-C Connection&

Toyola Energy Ltd.

Toyola Energy, Ltd.Overview

Began: Legally registered in 2006 in Ghana What: A company manufacturing and distributing

improved charcoal cookstoves Now (2008): Toyola has opened a 3rd production

site and is beginning to export stoves to Togo and Benin. Toyola is also beginning to retail solar lanterns. There are a total of 127 employees plus 47 additional artisans and 238 sales agents.

Outcomes/Impacts: 35,000 stoves were manufactured and sold in the first two years of operations. Each stove reduces charcoal demand by 30-40% and avoids ~1 ton of CO2 annually.

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

This is what is required for a successful E-C interaction.

E(Enterprise)

C(Customer)

Toyola Energy, Ltd.The E-C Connection

Entrepreneur (e)

E(Enterprise)

C(Customer)


Suraj Wahab and Ernest Kyei have technical and business experience along with a strong desire to extend social and environmental benefits to their customers

Technology (t)

E(Enterprise)

C(Customer)


Ghanaian Gyapa stoves based on Kenyan Jiko model.

Relatively simple to manufacture using locally available materials.

30-40% charcoal savings translate to short payback periods and better indoor air quality

Services (Es)E

(Enterprise)C

(Customer)


Initial technical training provided to many artisans by Enterprise Works.

Business plan development assistance and carbon monetization services provided by E+Co.

Finance (Ef)

E(Enterprise)

C(Customer)


(2006) $70,000 loan (2008) $100,000 loan (2008) $40,000 carbon advance (2009) $100,000 loan possible

Demand (d)

E(Enterprise)

C(Customer)


Stoves can save a household ~$35/year in fuel costs after initial investment of ~$8.

Fits a variety of pot sizes and types used. Less indoor air pollution.

Knowledge (k)

E(Enterprise)

C(Customer)


Enterprise Works embarked on a large marketing campaign.

Sales promoted by word-of-mouth, Gyapa “evangelists” and commissioned sales agents.

Risk-free trial allowed.

Services (Cs)E

(Enterprise)C

(Customer)


Delivery services available, especially for larger commercial stoves.

Stoves can be refurbished (ceramic liners replaced) for less than the cost of a new stove.

Finance (Cf)

E(Enterprise)

C(Customer)


Larger stoves sometimes sold with vendor credit.

Informal microfinance options through Susu collectors and sales agents.

Many sales possible on a cash basis.

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

Policy &

Enabling Environments

E(Enterprise)

C(Customer)

Very little country-level policy directly affects the market for stoves. However, policy does play a role through the creation of carbon markets. These have a huge potential to affect the operations of Toyola.

Entrepreneur (e)

Technology (t)

Services (Es)

Finance (Ef)

Demand (d)

Knowledge (k)

Services (Cs)

Finance (Cf)

Financial

Policy &

Enabling Environments

EnvironmentalSocial

E(Enterprise)

C(Customer)

Financial EnvironmentalSocial

Toyola Energy, Ltd.Triple Bottom Line Returns

Toyola is a very healthy and financially sustainable enterprise.

It has created significant employment opportunities.

Cooking practices are being made cleaner.

The pressure on forests is being reduced and GHG emissions are avoided.

Thank You!

Questions?

Using the E-P-T triangle (a program approach) To analyze The Biogas Support Programme Nepal,...

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