Biogas Development

So far, BSP has constructed more than 172,858 biogas plants by the end of June 2008. The distribution of biogas plants by geographical areas is as follows:

Geographical Region Number of plants constructed Coverage Percentage
Terai
86,260
49.4%
Hills
87,533
50.13%
Remote Hills
798
0.46%
TOTAL
174,591
100%

BSP-Nepal aims to install additional 73,537 biogas plants by June 2009 increasing the access of biogas to remote and poor people. For this purpose, necessary and appropriate strategies shall be applied.

Potential of Biogas in Nepal
For Nepal, beign an agricultural country, livestock plays an important rolein the Nepalese farming system. The total households with cattle and buffaloin Nepal was estimated to be 2.7 million in 2001. Based upon the study oftechnical biogas potential of Nepal out of which 57% in plains, 37% in hillsand rest 6% in remote hills or in mountain region.

Potentiality and Biogas Construction:
Technical Potentiality of biogas Plants (2001) 1.9 Million
Total economic potential 1 Million
Total Constructed (2007)
174,591 (Under BSP)
 

 


Plant Cost and Subsidy in Hill (6m3)
Year
Plant Cost
Subsidy
2000/01
23,648
10,000
2001/02
23,673
9,500
2002/03
23,673
9,500
2003/04
23,298
8,500
2004/05
24,129
8,500
2005/06
24,621
8,500
2006/07
31,515
9,500
2007/08
35,153
9,500
Source: NBPG Quotation/Government of Nepal(GoN)

Subsidy Rates: (For 2007/08)

Region
4 & 6 m3
8 m3
Terai Districts
Rs. 6,500
Rs. 6,000
Hill Districts
Rs. 9,500
Rs. 9,000
Remote Hill Districts
Rs. 12,500
Rs. 12,000

A total of 18 districts are categorized as Low Penetration Districts (LPDs) for now. These districtys receive extra Rs. 500/- subsidy per plant. These districts are Achham, Dailekh, Okhaldhunga, Rukum, Baglung, Baitadi, Dadheldhura, Doti, Panchthar, Rolpa, Salyan, Taplejung, Dhanusha, Mahottari, Parsa, Rautahat, Saptari and Siraha.

Additional Subsidy for the Poor

In line with the programme objective and discussions with the programme partners, piloting of "additional subsidy for the poor" has been initiated from FY 2006/07 in collaboration with relevant development organisations mainly with Grameen Banks which have a standard criteria and modality to identify the poor and deliver services in large part of Nepal. For piloting, the subsidy rates are NPR 1,500 (Euro 16.32) for Terai, NPR 2,500 (Euro 27.20) for Hill and NPR 3,500 (Euro 38.08) for Remote Hill districts. This additional Subsidy provision is applicable only for plant sizes 4 and 6 cubic metres. We are targeting the poor who have at least some land and minimum of one adult cattle.

From the learning so far, it is too difficult to reach the poor, unless theadditional subsidy is substantial or there is easy availability of micro credit without physical collateral, to cover around NPR 15,000 to 20,000 (Euro 165 to 220).

The idea here is to pilot it in 2007 and gain experience. It is planned to undertake a review of the piloting and develop a proposal, which will include a modality and revised subsidy rates for incorporation in the government's Subsidy Policy and Delivery Mechanism.