District Climate and Energy Plan Ilam

District Development Committee
Ilam
DISTRICT CLIMATE AND ENERGY PLAN

Ilam District
Technical and Financial Support by
Government of Nepal
Ministry of Environment
April 2011
Acknowledgement
Vipramshree is thankful to many people whose assistance and cooperation has made
preparation of Ilams District Climate and Energy Plan possible. First and foremost, we are
thankful to all the community groups and members of Samalbung, Mahamai, Sakphara and
Mai Majuwa VDC for taking precious time out of their days for us to share their perspectives
and valuable inputs. We are very grateful for their interest and the openness with which they
shared their experiences.
We are also very grateful to Namsaling Community Development Centre, Ilam for providing
district information, organizing site visits and meetings with the stakeholders in the district.
We would also like to thank the district stakeholders in renewable energy and more
importantly members of the DEEU and DDC for availing themselves during the course of this
assignment.
We would also like to thank Dinanath Bhandari and Pushkar Manandhar of Practical Action
Consulting and Dr. Indira Shakya, the experts involved in the plan preparation. In their
support towards making the plan more concrete we are also very grateful to Min Bikram
Malla and Tapas Neupane of Practical Action for their inputs. Assistance of Ms. Moushumi
Shrestha, Ms. Manjari Shrestha and Ms. Pooja Shrestha in mobilising logistics and other
supports are also highly appreciated.
We would also like to thank Tanka Aryal, DEEU Ilam; Ranjan Parajuli of AEPC; Jagadish
Kumar Khoju and Jeremy Stone of SNV in specific and all other members of SNV in general.
Their valuable comments and insights in general has helped in improving the document
quality.
Vishwa Bhushan Amatya

Team Leader for DCEP Ilam
Vipramshree Energy Pvt. Ltd.
Acronyms and Abbreviations

AEPC
Alternative Energy Promotion Centre
BAU
Business as Usual
BSP
Biogas Support Program
BSP-N
Biogas Sector Partnership Nepal
CBOs
Community Based Organizations
CBS
Central Bureau of Statistics
CDM
Clean Development Mechanism
CFUG
Community Forest Users Group
CRT
Centre for Rural Technology
DDC
District Development Committee
DEEU
District Energy and Environment Unit
DEMI
Decentralized Energy Management Initiatives
DEPP
District Energy Perspective Plan
DFO
District Forest Office
ESAP
Energy Sector Assistance Programme
FDG
Focal Group Discussion
FAO
Food and Agriculture Organization
GDP
Gross Domestic Product
GHI
Global Horizontal Irradiance
GJ
Giga Joule
GSI
Gender and Social Inclusion
GoN
Government of Nepal
GWh
Giga Watt hour
Ha.
Hector
HDI
Human Development Index
HH
Household
ISRC
Intensive Study Research Centre
ICS
Improved Cooking Stove
INGO
International Non Governmental Organization
IWM
Improved Watermill
Kg.
Kilogram
KII
Key Informant Interview
Km.
Kilometre
kW
Kilo Watt
kWh
Kilo Watt hour
LCC
Life Cycle Cost
LEAP
Long range Energy Alternative Planning
LPG
Liquefied Petroleum Gas
Meter
MAS
Medium Adaptation Scenario
MHP
Micro Hydro Project
MJ
Mega Joule
MT
Metric Ton
NAPA
National Adaptation Programme of Action
NCDC
Namsaling Community Development Centre
NEA
Nepal Electricity Authority
NGO
Non Governmental Organization
NPC
National Planning Commission
NTFP
Non Timber Forest Products
NPR
Nepalese Rupees
PRA
Participatory Rural Appraisal
RE
Renewable Energy
REDP
Rural Energy Development Program
RET
Renewable Energy Technology
SHS
Solar Home System
sq. km
Square Kilometre
SHS
Solar Home System
SWERA
Solar and Wind Energy Resource Assessment
SWOT
Strength Weakness Opportunity Threat
UNDP
United Nation Development Program
VDC
Village Development Committee
WECS
Water and Energy Commission Secretariat
Wp
Watt Peak
Executive Summary
0.1 General Background
The main goal of the District Climate and Energy Plan (DCEP) is to create a planning
process for accelerating the dissemination of renewable energy technologies at district
level, contributing to development goals at national and local level. In addition to energy
development, DCEP addresses climate change impacts on energy planning and ensures
that women and social excluded and marginalised groups are addressed throughout the
planning and implementation processes..
The overall objective of the DCEP of Makwanpur is to:
Prepare a climate change adaptive, decentralized renewable energy plan that can
contribute to climate change mitigation and ensure Gender and Social Inclusion (GSI)
issues are addressed, through assessment of the institutional set up of the district in
relation to requirements of accelerated dissemination of Renewable Energy (RE) and
recommendations on organisational arrangements needed to implement the DCEP.
This document has treated climate change and GSI issues in a systematic way at all
stages of the planning process rather than treating it separately as an appendix. The
focus of DCEPs is to both expand energy service provision through and coordination of
implementation.
Primary data was collected from certain village development committees (VDCs) to
validate and update secondary sources.The estimates of energy consumptions are based
on secondary information from Water and Energy Commission Secretariat (WECS) and
projections were supported by Practical Actions Study on Energy Poverty (2010) which
could not be fully linked to macro-economic parameters other than population.
The study is more focussed on residential sector energy consumption compared to
industrial or commercial energy needs as this is the major demand in the district.
Limitations to the study include a general lack of recent disaggregated data of Ilam on GSI
especially those relating to renewable energy, which reflects in the study as weakness
and needed to be strengthened in coming days. There is also very limited reliable climate
data for Ilam.
Ilam:
Ilam district lies in Mechi Zone of the Eastern Development Region of Nepal. The district
covers mountain terrain and rises from 140m above sea level at Setibeni to 3,636m at
Sandakpur covering an area of 1,714 sq km (DFO Ilam, 2010). The district is bordered by
Panchthar in the North West, Morang in the South West, Jhapa in the South East and
Indias Darjeeling District in the East. There are 3 Electoral Constituencies in Ilam,
comprising of 11 Ilakas, 48 VDCs and 1 municipality. Ilam bazaar at the centremost is the
district headquarters.
54,676 Ha of the district is considered cultivated land with 49,101 Ha is classified as forest
land. There are number of rivers running through the district, the main ones being the
Mechi, and Mai khola.
.
District Climate and Energy Plan for Ilam
The total population of Ilam was 282,806 with an annual population growth rate of 2.1% in
2001. The projected population for 2010 is around 340,973. Ilam has the highest number
of Rai (24%), an ethnic group. Altogether there are 13 different ethnic groups living in the
district including Brahmin, Limbu, Chhetri, Newar and marginalized groups such as
Sherpa, Sunwar, etc.
Infrastructure
The district is linked to Nepals main road network to East-West Highway at Charali. Ilam
also connects to adjoining districts Panchthar and further up to Taplejung. A road from
Fikkal through Pashupati Nagar, the border town, leads to Darjeeling of India.
Up to 2008/2009 Department of Irrigation had managed to provide irrigation to 5,975 Ha,
while Asian Development Bank (ADB) supported initiatives have irrigated 2,256.35 Ha of
land in Ilam. The drinking water supply coverage in the district is 68.23 percent, with urban
and rural coverage of 72.82 and 67.95 percent respectively.
Urban and peri-urban settlements are supplied with electricity through the national grid.
While in the remote rural locations, electricity are supplied mainly through micro hydro,
pico hydro and solar home systems. Around 19,000 HHs receive electricity through the
national grid (as of February 2011) while the estimates of households served by off grid
electrification given stands at around 6,500 HHs.
Of the total HHs in Ilam, the main sources of power for lighting are electricity and
kerosene. Electricity is used by roughly 40% HHs in rural and 80% HHs in urban areas.
For kerosene it is 45% and 12% respectively in rural and urban areas. According to the
NEA, around 19,000 HHs currently have access to national grid. A small percentage of
households have access to solar PV and lanterns for lighting.
0.2 DCEP Preparation Process
The DCEP has followed a nine stage preparation process as highlighted in the DCEP
guidelines. Extensive district and national level stakeholder consultations were conducted.
An initial desk study was followed by secondary data collection, compilation and validation
in the field. The DCEP district task force, facilitated by AEPC/SNV was responsible for
coordination at district level to ensure local input into the process. , Namsaling Community
Development Centre (NCDC) a local NGO assisted the planning team in the process.
A one day consultative meeting with DCEP Task Force was held in the district on
December 3, 2010 where the four VDCs where data was to be collected were defined. A
planning workshop was held in Ilam Municipality on the 27th and 28th of February 2011 to
share the outcomes from the data analysis and the scenario development. The feedback
has been incorporated into this planning document.
0.3 The DCEP Situation Report

Climate Change assessment
The Majority of mountains in Ilam fall under Siwaliks with sub-tropical climate zones up to
an altitude of 1,000 meters covering about 1/3 area of the district. Mahabharata Mountains
ii
harbour lower and upper temperate climate from 1,000 meters up to the altitude of 3,500
meter altitude and covers about 2/3 area of the district. Available data on temperature
from Ilam and Kanyam stations show very little change in average annual
temperature (both max and min) and information on rainfall is inconsistent between
stations.
Temperature and precipitation data were verified during the field work from community
knowledge.. Identification of impacts of changing agricultural practices (livelihoods) and
hazards as a result of climate change to energy resources, technologies and energy
infrastructure were also assessed. Fragile steep landscape in the Siwalik range, variability
in rainfall and unsustainable land uses together seems to make this region more
vulnerable to the hazards including from the impacts of climate change. Flood, landslide,
soil erosion, lightening, fire and diseases (particularly in crops such as in cardamom) are
major hazards in the district that affect energy resources. However, the National
Adaptation Programme of Action (NAPA) study suggested that Ilam is one of the least
vulnerable districts in Nepal.
Studies including consultations during DCEP process reveal that community perceptions
are less consistent on temperature variability. The perceptions were factored by sensitivity
of livelihood strategies and socio-economic factors of respective communities and
changing crop pattern.
Vulnerability of biomass energy resources such as agriculture, forests and water
resources to climate change is likely to grow as the temperature is rising and rainfall
pattern is becoming more erratic. Communities have shown adaptive capacities from a
range of options; existing trend of climate variability is unlikely to affect livelihoods
adversely in the short run. However, energy resources such as water and certain
agriculture crops are sensitive to current trend of climate variability (solar irradiance,
temperature, precipitation etc.).
Gender and social Inclusion assessment

More than 90% of households in Ilam are using fuel wood, and wood collection is
predominantly carried out by women. Availability of fuel wood is affected by depleting
forest resources due to land clearing for tea-plantations. Husk and homemade charcoal
based stoves are mainly used in the lower income groups such as the Lepchas, Rais and
Tamangs. Others have resorted to LPG as well as electricity. The field evidence from
Maimajhuwa VDC suggested that fuel wood is still the only energy source for cooking.
Indication is that the fuel wood will still remain as a prime energy source for many of the
families irrespective of economy or caste/ethnicity. Nearly 36 percent of HH have installed
Improved Cooking Stoves (ICS). Of this 21 percent is owned by women.
In case of ethnic groups including the Lepchas, from a low economy group, 75 percent of
women are involved in fuel wood collection. They also depend totally on kerosene for
lighting. Of the total 2,819 biogas systems installed in Ilam, 33 percent is owned by
women. In terms of ethnicity, Brahmins and Chhetris own 53% percent of the systems.
Within each of these ethnic groups, the 38 percent are owned by women within the Rai
iii
community, 33 percent in the Brahmin and Chhetri community and 32 percent amongst
the Dalits. Presently, biogas is available in only 19 percent of the households in rural Ilam.
Energy Demand Assessment

The residential sector is the largest consumer of energy in the district with a demand of
2,497,000 GJ in 2010. Residential electrification in the district is approximately 35% and
95% in rural and urban areas respectively. Cooking makes up the biggest share of energy
consumption in the residential sector totalling 2,553,600 GJ, lighting accounts for 73,500
GJ. In terms of fuel consumption, biomass has the largest share for cooking, making up
over 85% of fuel uses.
The consumption of fuel wood by rural dwellers is collated from various sources including
Decentralized Energy Management Initiatives (DEMI) report of various VDCs of Ilam and
focal group discussion. The weighted average (kg) consumption per household per year
stands at 4,860 kg.
The main consumers in the commercial sector are restaurants, hotels, hospitals and
schools. In 2010 the total demand was 2,103 GJ, almost 60% of which is from electricity,
20% from LPG and 13% wood. Based upon a wood energy planning report produced by
Food and Agriculture Organization (FAO) in 2001, using the industrial growth rate of 5%,
the industrial energy demand was estimated to be 958,540 GJ in 2010.
Energy Resource Assessment

Fuel wood remains the major energy resource for residential and commercial use in the
district. In total the district has 80,926 ha of forest of various categories. Agricultural
residue and animal dung are the next important biomass energy source that supplied
246.63 GJ and 553 GJ, respectively.
As in other parts of Nepal, Ilam also uses fossil fuels which are imported from foreign
countries. Moreover, settlements neighbouring with India also import fossil fuels like LPG
and Kerosene illegally.
There is large potential to generate hydro electricity at different levels from rivers including
Mai Khola, Phakphok Khola, Puwa Khola. There is already a 6.2 MW Puwa Khola hydro
power project in Ilam which is owned and undertaken by NEA. In addition dozens more
hydro power projects in Ilam have been identified. There are over 21 hydropower projects
with a total capacity of 90 MW in various stages of development.
Among the renewable energy supplies, there are currently 9 Micro and 235 Pico hydro
systems in operation whose total installed capacity is 786 kW.
The solar and wind energy resource assessment (SWERA) of Nepal positions Ilam with
the best solar resource potential in the country with an annual average global horizontal
irradiance (GHI) of 5.1 kWh/m2/day.
Biogas is a popular technology in the district with good potential from more than 12,402
households with land and livestock from which technical potential of around 9,000 and
iv
market potential of 5,839 biogas plants were estimated. Altogether 2,819 plants have
been installed.
Technology Assessment
In addition to conventional technology assessment parameters such as status/trends of
different technologies, end-uses as practiced, comparative costs and benefits and after
sales service and technology costs, a number of new parameters have been considered
including climate vulnerability of technologies, adaptation and mitigation potential and
trends including emissions factors and gender and social aspects with respect to choice,
need and affordability and capacity building needs.
Ownership data that was available for biogas, improved water mills and improved cooking
stoves has shown that Adequate female ownership disaggregated data is not available;
however, Brahmin and Chhetris ownership is very high among all technologies ranging
from 37-57%. Female ownership for ICS is 21%, Improved Water Mill (IWM) 4% and
biogas 33%.
Energy technologies are important player in climate change, mitigation and adaptation
measures. Energy and adaptation is not a well addressed concept and it has been shown
during this study that adaptation depends on adjustments and changes in production and
consumption. The capacity to adapt varies significantly from community to community and
the range of practices that can be used to adapt to climate change is diverse. Specific
adaptation measures and recommendations are therefore presented in the bulk of the
report.
An exercise held during a planning workshop ranked solar energy to be least vulnerable
and IWM most vulnerable to climate change and has highlighted the need for climate
proofing of technologies.
The study has shown that the RET mitigation potential for a small SHS is about 0.076
tonne of CO2 equivalent and 6 m3 biogas plant can abate 4.88 tonne of CO2 equivalent.
Institutional Assessment
Institutional assessment of relevant stakeholders in the district was carried out in the
district using tools such as coverage matrix, actor constellation mapping and SWOT
analysis. Coverage matrix provided the information on degree of involvement of actors in
providing various services related to renewable energy. Actor constellation was used to
identify the relationships between these actors in terms of participation, funding and
coordination with each other. A detail deliberation on SWOT of institutions is discussed in
the main text.
0.4
The Scenario Development Energy Demand Projection
Data collected during the study was used to create three energy planning scenarios
(Business as usual, Medium adaptation and Climate resilient). For the preparation of the
scenarios the Long-Range Energy Alternative Planning Model (LEAP)1 software was
used, which is a computer-based energy accounting, simulation and scenario analysis
software designed to support policy makers in assessing energy policies and to develop
alternative energy scenarios. A 10 year planning period was established, with the year
2010 as base year.
Energy demand and driving parameters like population were disaggregated into urban
and rural populations, a yearly population growth rate of 1.89% with following breakdown
(CBS 2010):
Year
Rural HH %
Urban HH%
2010
92.6
7.4
2015
90.5
9.5
2020
87.8
12.2
All three scenarios (BAU, MAS, CRS) use the same demographic. The GDP growth is
also taken to be the same across all the scenarios. The energy efficiencies of
technologies are also kept fixed throughout the projection period and in all scenarios.
Business As Usual Scenario (BAU)
BAU scenario was based on current trends of interventions and demand growth. This
scenario is gender neutral and does not consider GSI issues beyond existing
interventions.
The total energy demand of Ilam in BAU is found to be 3.57 million GJ in the base year
2010 which is expected to increase by 3% (3.68 million GJ) by the end of 2020.Out of the
total energy demand, the numbers suggested that the residential energy demand forms
the major share of energy demand in base year 2010 (82.1%) and will remain the
dominant sector in the year 2020. After the residential sector, the industrial sector forms a
major share (17.8%) which is expected to increase in the year 2020 with an estimated
share of 33%. The commercial sector comprises of a negligible share of total energy
demand of Ilam in 2010 and is expected to remain lowest till 2020.
LEAP is a widely-used software tool for energy policy analysis and climate change mitigation
assessment developed at the Stockholm Environment Institute (SEI)
vi
Medium Adaptation Scenario (MAS)

The Medium Adaptation Scenario (MAS) has taken into account the development of
livelihoods by providing inclusive access to energy sources. Although it does not embrace
a full-climate resilient strategy it will provide some adaptive measures and consider
potential vulnerabilities of resources and technologies. This scenario also integrates GSI
consideration.
The energy demand is to be met by an energy mix of renewable and clean energy as well
as fossil fuels and biomass. Biomass shall fulfil more cooking energy demand compared
to BAU as opposed to fossil fuel based energy.
Unlike in BAU, the total energy demand of Ilam in MAS decreases by 24% by 2020 (2.8
Million GJ) compared to base year 2010 (3.65 Million GJ). This is mainly due to
requirement of efficient technologies including LPG, ICS, electricity based cooking
technologies required to recognize climatic and GSI issues parameters as suggested by
community and district stakeholders for MAS. In real practice it may not be exactly
replicate the scenario as the energy demand cannot ideally decrease with the
improvement of efficiency.
Climate Resilient Scenarios (CRS)
The final scenario Climate Resilient Scenario (CRS) will support the development of
livelihoods through the provision of inclusive access to energy. However in this case the
assumption will be made that there is elevated substitution towards improved and climate
proofing technologies. There will be minimal usage of fossil fuel for cooking and lighting
purposes. This will be enforced through necessary subsidy policy changes in the
implementation guide.
Whilst the CRS does not directly consider GSI in the scenario development it is assumed
that increased resilience and adaptation measures will have indirect GSI impacts.
The total energy demand of Ilam decreases also in CRS by 34% in the end year (2.3
Million GJ in 2020) with compared to base year (3.5 Million GJ in 2010).
The energy supply in CRS will be mostly met by fuel wood in base year which will later
decrease substantially and will be replaced mostly by electricity followed by LPG and
biogas system. The share of fuel wood in total energy supply decreases from 73% at base
year (2010) to 41% by the year 2020.
Scenario Comparison
The three scenarios diverge in terms of the technology selection and consumption growth.
Though the total energy demand is expected to rise as per the population growth, use of
efficient technologies may result in reduced per capita demand. Table below shows
technology mix for cooking and lighting in three scenarios.
vii
Rural
Urban
Technology
Traditional
Stoves (including
agri residue and
animal dung
stoves)
Cooking
2010 BAU
MAS
CRS
RET
Non
Electricity
Based
Electricity
Based
74.7
31.5
12
ICS
Biogas
Kerosene
LPG
Electricity
9.4
3.9
2
8
2
Fuel Mix
Technology
M
2010
35
8
0.08
21.4
4
M
BAU
21
8
6
33
20
M
MAS
25
14
3
33
25
M
CRS
Traditional
Stoves
45.9
37
ICS
Biogas
Kerosene
LPG
Electricity
35.9
3.6
0.1
14.6
2
21
3.6
0.08
35
4
M
10
0
0
70
20
M
5
0
0
33
61
M
Fuel Mix
M
* M= Mixed, E= 100% Electricity
RET
Non
Electricity
Based
Electricity
Based
Lighting
2010 BAU
MAS
CRS
66
29
20
34
71
80
100
M
2010
M
BAU
M
MAS
E
CRS
95
100
100
100
0.5 DCEP Plan

The implementation plan provides detail activities for 3 years, from 2011/12 to 2013/14, of
the MAS and CRS scenarios. However, it also provides longer term targets for 10 years.
The technology based activities are supported by activities that will contribute to gender
and social inclusion issues, increase climate change capacity and awareness and
promote inclusive growth and reduce regional and social disparity on energy access and
governance.
DDC has adopted series of policies and identified activities which will again be of help to
adopt and implement DCEP. Additionally central government is also implementing RE
programme at national level from which the district can benefit as well with respect to the
climate change issues. Renewable Energy Subsidy Arrangement provides subsidies to
various technologies which will ease financing at the district level.
Detail Implementation Plan
viii
The detail implementation plan outlines an in-depth plan for two scenarios, MAS and
CRS, for three years starting from 2011/12 to 2013/14. The differences between the two
scenarios are mainly related to the scale of intervention, while most of the other capacity
building and support activities remain the same. Interventions under two scenarios are as
follows:
S.N.
Description
Improved Cook
stoves
Biogas
Solar Home System
Micro Hydro/Pico
Hydro
Improved Water Mills
Target (: MAS : CRS)

2011
2012
2013
2928
2679
3008
3145
2900
3231
542
443
450
888
797
811
177
364
374
597
614
631
464
310
318
678
543
555
18
18
18
18
18
18
2014
3838
4262
592
960
384
648
327
566
18
18
Besides the central government (AEPC) and DDC, other line agencies as well as NGOs,
CBOs and the private sector will need to play role in delivering the targeted output. All
these institutions can be mobilised and utilised within their capacity to fulfil the
responsibility requirement to attain the desired target.
Financing Requirements
Financing requirements (in 000 NRs) for two scenarios are summarised below:
MAS Scenario
Descriptions
2011
2012
2013
2014
Improved Cook Stove
1,052
971
1,077
1,341
Biogas (units)
33,861
27,698
28,142
36,967
Solar Home System
3,542
7,280
7,476
7,676
Micro/ Pico hydro (kW)
153,149
102,204
105,107
108,046
IWM
540
540
540
540
Capacity Building/Training
550
150
300
400
Support
760
960
460
760
Total
195,465
141,815
145,115
157,744
CSR Scenario
Description
2011
2012
2013
2014
Improved Cook Stove

Biogas (units)
1,122
55,442
1,042
49,759
1,150
50,686
1,485
59,998
ix
Solar Home System

Improved Water Mill
Support
Total
11,940
223,710
540
550
3,460
298,775
12,280
179,249
540
150
3,660
248,692
12,620
183,070
540
300
3,160
253,539
12,960
186,863
540
400
3,460
267,720
Monitoring
District Energy and Environment Unit (DEEU) together with District Energy and
Environment Coordination Committee (DEECC) Ilam shall be the main coordinating and
facilitating agency for monitoring and evaluation. Monitored should be carried out annually
with adequate support from AEPC, implementing partners, RET companies, NGOs and
CBOs.
0.6
Recommendation
In addition to the implementation plan recommendations have been made for

improvement of the institutional structure and data storage for further information
gathering
Gender and Social Inclusion focus is not sufficient currently at all stages of development
planning and implementation and hence needs to be strengthened in usual development
planning in different sectors such that this can foster gender and social inclusion in energy
sector as well. RE opportunities can be utilised to foster equitable development from GSI
perspective.
Renewable energy awareness activities should be given priority as it is the firststep towards RE development.
There needs to improvement in disaggregation of GSI data and improved storage

in systematic and user friendly formats.
Though Ilam has shown some interest in bio-fuel plantation and production, no
significant progress has been made on it so far. It should be further explored for its
feasibility.
Forests in Ilam, particularly in southern belt, catch fire almost annually. More
efforts need to be allocated for forest fire prevention as well ensures more peoples
participation in forest resource management should be fostered. Slash and burn
agriculture practice in the upper reaches needs to be replaced by permanent
vegetation.
Promotion of multi use water systems to counteract the seasonal variability of too
much water too little water.
The district needs effective mechanisms and institutional capacity for structural
(check dams, embankment improvement etc) and non structural measures
(disaster preparedness, mainstreaming disaster risk reduction into development
planning, awareness etc) for hazard mitigation for climate induced hazards such
as flood and landslides.
Develop strategies for empowering women and excluded groups in planning for
DCEP.
A more appropriate weighting system needs to be designed that more effectively

qualifies the influence of climate change and GSI on energy planning in terms of
access, reduced drudgery, Increased livelihoods and improved decision making
xi
Table of Contents
1. Introduction .................................................................................................. 18
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
Background
Rationale
Objectives of DCEP
Scope of DCEP
Limitation of the study
Overview of Ilam District
1.6.1. Geographic profile
1.6.2. Demographic structure
1.6.3. Infrastructure
1.6.4. Institutions
18
18
20
20
22
23
23
25
30
31
2. DCEP Preparation Process ......................................................................... 32

2.1. Process
2.1.1. Preparatory phase
2.1.2. Mobilisation - Interaction at district level
2.1.3. Data collection and analysis
2.1.4. District level planning/ stakeholder consultation workshop
2.1.5. DCEP finalization
2.1.6. Discussion approval district level consultation
2.2. Methodology
2.2.1. Overview
2.2.2. Data collection
2.2.3. Data Analysis and Scenario Development:
32
32
32
33
33
33
33
33
33
35
36
3. District Climate Change and Energy Situation of Ilam ............................. 43

3.1. Climate Change assessment
43
3.1.1. Climate: Rainfall and temperature
43
3.1.2. Hazards
44
3.1.3. Past and perceived future trend on climate change, impacts and
vulnerability
45
3.2. Gender and social Inclusion assessment
48
3.3. Energy demand assessment
51
3.3.1. Residential
52
3.3.2. Commercial
54
3.3.3. Industrial
54
3.3.4. Implication of climate change on energy consumption
54
3.4. Energy Resource Assessment
54
3.4.1. Traditional (Biomass)
54
3.4.2. Commercial & fossil fuels:
56
3.4.3. Renewable energy:
57
xii
3.4.4. Vulnerability and stresses to energy resources in the context of climate

change
59
3.4.5. Transportation and access to resources
61
3.5. Technology assessment
62
3.5.1. Overview
62
3.5.2. RETS Status/Trends
64
3.5.3. Ownership of systems by gender and different Caste/ethnicity
67
3.5.4. Costs of technology
68
3.5.5. Adaptation potential
69
3.5.6. Energy technology vulnerability due to climate change
72
3.5.7. Climate proofing technologies
72
3.5.8. Mitigation potential and trends general emissions factors
73
3.6. Institutional assessment
75
3.6.1. Overview
75
3.6.2. Resource availability and local capability
75
3.6.3. Stakeholder identification and roles
77
3.6.4. Stakeholder relationship
78
3.6.5. Capacity and potential assessment
79
4. District energy scenario development / demand projection .................... 84

4.1. Introduction
84
4.2. Software Implementation: Long Range Energy Alternative Planning (LEAP) 84
4.3. Business as Usual Scenario (BAU)
85
4.3.1. Overview
85
4.3.2. Energy demand
85
4.3.3. Energy supply
88
4.4. Medium Adaptation Scenario (MAS)
90
4.4.1. Overview
90
93
94
4.5. Climate Resilient Scenarios (CRS)
95
4.5.1. Overview
95
96
98
4.6. Comparative analysis of energy consumption and GHG emission in different
scenarios:
98
5. DCEP Plan .................................................................................................. 101

5.1
5.2
5.3
5.4
5.5
5.6
Introductions
Analysis of existing policies to implement proposed plan
Analysis of intervention required in different scenarios
Financing Plan
5.4.1 Financial Requirement in Medium Adaptation Scenario
5.4.2 Financial Requirement in Climate Resilient Scenario
Monitoring and Evaluation Plan
101
101
102
103
104
108
108
117
6. Recommendations ..................................................................................... 125

xiii
6.1
6.2
6.3

Technology
Climate change
125
126
127
Annex 1: FGD Tools ......................................................................................... 131

Annex 2 Climate Information of Ilam............................................................... 136
Annex 3 Summary of Findings from VDCs..................................................... 140
Annex 4 Companies Involved in Promotion and Dissemination of RETs in
Ilam .................................................................................................................... 163
Annex 5 DCEP Preparation Process ............................................................... 164
Annex 6 LEAP Fact Sheet ................................................................................ 165
xiv
List of Figures
Figure 1: Map of Ilam district.
24
Figure 2: Ethnicity composition of Ilam
26
Figure 3: Land distribution of Ilam (in hectares, %)
29
Figure 4: DCEP Preparation Process
32
Figure 5: Data Collection Components of DCEP
35
Figure 6 : The Energy Demand Tree for Ilam
42
Figure 7 : Maximum, mean and minimum temperature variation (Ilam tea estate)
46
Figure 8 : Average yearly rainfall at Ilam tea estate
47
Figure 9 : Average yearly discharge of Mai Khola at Rajdwali station
47
Figure 10 : Distribution of ICS by ethnicity and gender
48
Figure 11 : Distribution of Biogas by ethnicity and gender
49
Figure 12 Distribution of SHS by ethnicity and gender
50
Figure 13 : Distribution of IWM by Ethnicity and Gender
51
Figure 14 : Annual Average GHI of Nepal
58
Figure 15: Potential of wind energy in Ilam
59
Figure 16: ICS Installations trend in Ilam
66
Figure 17 : Year by Year Biogas Installations
67
Figure 18 : Costs of cooking technologies
69
Figure 19 : Costs of lighting technologies
69
Figure 20 : Stakeholders on the Ilam DCEP
83
Figure 21: Total Energy Demand of Ilam in BAU
87
Figure 22: Changing activity level of different cooking devices used in rural area
88
Figure 23: Energy Supply in BAU for residential sector
89
Figure 24: Energy Supply in industrial sector Figure 25: Energy Supply in
commercial sector
Figure 26: Total Energy Demand of Ilam in MAS
89
93
Figure 27: Increase & decrease of different types of technologies in MAS with compared
to BAU
94
Figure 28: Energy Supply in MAS for residential sector
95
Figure 29: Total Energy Demand of Ilam in CRS
97
Figure 30: Increase & decrease of different types of technologies in CRS compared to
BAU
97
Figure 31 Energy consumption in residential sector in different scenarios
Figure 32 GHG emissions in residential sector in different scenarios
99
100
xv
List of Tables
Table 1: Population of Ilam
25
Table 2: Schools and Enrolment in Ilam
26
Table 3: Economic status of Ilam
27
Table 4: Number of health facilities
28
Table 5: Water and sanitation coverage in Ilam
31
Table 6 : Electrification in Ilam
31
Table 7: Major data source referred for the study
36
Table 8: Comparative emission rates of each of the technologies
40
Table 9 : Ranking of Hazards according to NAPA (Key hazards in the district)
44
Table 10 : Changes in cropping pattern over the years (Samalbung VDC)
45
Table 11 : Device efficiencies of technologies
52
Table 12 : Minimum energy requirements in cooking activities for different devices
52
Table 13 : Minimum energy requirements in lighting for different devices
52
Table 14: Residential Energy Demand by End Use
53
Table 15: Residential Energy Demand by Fuel Type
53
Table 16 : The consumption of fuel wood by rural dwellers
53
Table 17: Fuel wood resource
55
Table 18: Agricultural residue Resource supply
55
Table 19: Animal Dung Resource
56
Table 20: List of identified major hydro power projects in Ilam
56
Table 21: Major application of fossil fuel in Ilam
57
Table 22 : Micro-hydro projects currently in operation
57
Table 23: Micro-hydro projects currently in development
64
Table 24: SHS installation and capacity in Ilam
65
Table 25: Ownership of RETs by different Ethnic Groups and Castes
67
Table 26: Ownership of RETs by Females within the different Ethnic Groups and Castes
68
Table 27 : Cost Benefit of technologies
68
Table 28: Ranking of technologies based on vulnerability
71
Table 29 : Mitigation Potential of various technologies
73
Table 30: Costs and Emission factors of selected technologies
74
Table 31 : Life Cycle Cost and the Respective CO2 Analysis
74
Table 32: Resource and Local Capability
76
Table 33: The Activity coverage Matrix of various Institutions in Ilam
78
Table 34 Sectoral energy demand in BAU (in 000 GJ)
86
Table 35: Residential Energy demand in BAU
87
xvi
Table 36: Change of share of cooking devices in base year and end year
88
Table 37: Share of different energy carriers in meeting energy needs of BAU (rural
cooking)
90
Table 38: of different parameters considered for DCEP study in MAS
91
Table 39: Ranking of technology on the basis of parameters considered for DCEP study in
MAS
91
Table 40: Ranking and estimation of different technologies in MAS
92
Table 41: Calculated Vs Suggested share of different technology in MAS
92
Table 42: Weightage of different parameters considered for DCEP study in CRS
96
Table 43: Calculated Vs Suggested share of different technology in CRS
96
Table 44: Share of major technologies (in %) in different Scenario (in 2020)
98
Table 45 Comparison of specific energy consumption (GJ per HH) in residential sector in
different scenario
100
Table 46: Required Renewable Energy Intervention in MAS*
102
Table 47: Required intervention of different technologies in CRS
103
Table 48 : Unit cost of technologies
103
Table 49: Subsidy policy for various RETs
104
Table 50: Budget set aside FY 2010/11 by DDC
104
Table 51 : Summary of funds required in MAS
105
Table 52: Financing requirement for MAS
106
Table 53 : Summary of Fund required in CRS
108
Table 54: Financing requirement for CRS
109
Table 55: Detail Implementation Plan for MAS and CRS
111
Table 56: Monitoring and evaluation plan
118
xvii
1. Introduction
1.1.
Background
The main goal of the District Climate and Energy Plan (DCEP) is to create a planning
process to increase the dissemination of renewable energy technologies at district
level, contributing to Nepals national and local development plans. In the DCEP
preparation guideline the overall goal of DCEP is defined as follows;
To create an implementation plan that increases Renewable Energy Technology
(RET) dissemination and development in each district of Nepal and contributes to
Nepals national and local climate change mitigation and adaptation plans. DCEPs will
act as a systematic roadmap, which serves as a periodic rolling plan of the district in
the sector of renewable energy development and climate change preparation.
Strategies for development and dissemination of the RETs in the district will be
mapped out and climate adaptation and mitigation and gender and social inclusion
linkages identified.
1.2.
Rationale
DCEP is a key document that shows how the District Development Committees
(DDCs) will address energy development at district level whilst acknowledging climate
impacts and incorporating gender2 and social inclusion3 issues. They will provide an
inventory of district energy resources to identify the most appropriate actions,
opportunities and interventions for increasing access to RETs and therefore promoting
low carbon development as well as how RET will contribute to climate change
adaptation measures. Addressing climate change requires a rapid development of
renewable technologies in Nepal, careful planning is vital to achieve this at any level,
particularly at the district level.
Effectively implemented sound energy plans can improve adaptive capacity of the
communities and contributes to carbon abatement. In addition, potential resilience
capacity created through energy measures can also address gender and social
Gender refers to the socially constructed roles and responsibilities of women and men which
include the expectations held about the characteristics, aptitude, and likely behaviour of both
women and men (femininity and masculinity). These roles and expectations are learned,
changeable over time, and variable within and between cultures.
3
Social inclusion is lifting the obstacles that prevent socially excluded people to access and benefit from
economic, social and political resources and creating an environment that gives every individual the
same opportunity to access the resources, whatever social group she or he belongs to.
18
inclusion (GSI) issues to build on the resilience capacity of women, children, persons
with disabilities and communities with specific livelihood strategies who are differently
vulnerable to different adversities and stresses including the impacts of climate
change. On the other hand, if ignored, it can lead to inappropriate policy measures
(PAC, 2010) and mal practice generating adverse feedback inputs. GSI is therefore a
key component of DCEPs.
In Nepal, exclusion4 is seen in line with gender, class, caste, ethnicities and
geographical locations causing inequalities in various dimensions: social, economic,
technological, political etc. Due to such exclusionary practices, women, the poor,
Dalit, ethnic groups and people living in remote areas are constrained from voicing
their concerns, access to and control over resources and services, and making
policies and institutions favourable to them5.
Gender-based divisions of labour found in Nepal mean that managing household level
energy supply, especially, for cooking and grinding grains in the responsibility of
women. Hence, the lack of access to clean, modern energy services has a more
pervasive and severe impact on the lives of women and girls. Likewise, lack of access
to clean energy services may have severe negative impacts to the lives of the poor,
ethnic groups, low caste people and people living in remote geographic locations as
these categories of people have very limited capacity to afford alternative energy
resources.
Hence, the issues of gender and socially excluded peoples needs, concerns and their
rights have to be fully taken into consideration not only as beneficiaries and users but
also as powerful change agents throughout planning, implementation and evaluation
processes. Ignoring the meaningful participation and the capacities of women and
socially excluded people into planning processes including the choice of energy
technologies may lead to the wrong selection of technologies and capacity building
needs. Hence, mainstreaming gender and social inclusion6 issues is the only way to
reduce the gap and attain gender and social equalities.
Social exclusion is a process and a state that prevents individuals or groups from full participation in
social, economic and political life and from asserting their rights. It derives from exclusionary relationships
based on power (DFID 2005)
5
DFID and World Bank, 2005. Unequal Citizens, Gender Caste and Ethnic Exclusion in Nepal.
Social inclusion is removal the institutional obstacles that prevent socially excluded and marginalised
groups as well as the enhancement of incentives to exercise their rights and increase access and benefit
from economic, social and political resources. It is also a process of creating an environment that gives
every individual equal opportunities to access the resources, whatever social group she or he belongs
to..
19
Similarly, the DCEP process has looked at the institutional set up of the district in
relation to dissemination of RE and made recommendations about what systems,
processes and organisational arrangements were needed to improve RET
dissemination and provide strong links to climate change activities and to mainstream
gender and social inclusion into the process.
Without adequate consideration in policy and planning certain groups can become
particularly vulnerable to climate change issues (PAC, 2010), and as a result GSI
issues will be addressed throughout the DCEP. These issues are evaluated
throughout the planning process. In this context GSI refers to the interactions between
society with resources and technology in relation to gender and social discrimination
and other aspects of inclusion.
1.3.
Objectives of DCEP
The overall objective of the DCEP is to prepare the district energy plan of Ilam district
in the context of climate change that ensures sustainable and equitable access to
energy resources and technologies to contribute to climate change adaptation and
mitigation by mainstreaming social and gender inclusion.
Some of the specific objectives of the DCEP are;
1. To outline energy needs of Ilam district
2. Carry out resource, technology and institutional assessments
3. To outline interventions of renewable energy technologies by identifying
climate change and gender and social inclusion issues
4. To identify the capacity development needs to implement the climate change
adaptive renewable energy plan
5. To assess the institutional arrangements of the district and identify
adjustments and recommend improvements
6. To outline implementation of the plan with identification of roles and
responsibilities of different stakeholders
1.4.
Scope of DCEP
Climate change, particularly its impacts on the energy sector, has been considered at
each stage of the planning process such as assessment of energy resources, demand
20
and supply. Although assessment of climate change and its impacts in different
sectors warrants a separate in depth study that accrues longer time and resources,
the DCEP has focused on the existing and potential impacts of climate change on
energy and potential of energy through the DCEP to climate change adaptation and
mitigation. Climate change issues have been integrated in the planning process in
identifying and prioritising societal, resource and technology related vulnerabilities to
climate change.
The focus of the DCEPs is to both expand coordination and service provision of
renewable energy at district level identifying opportunities where the GSI responsive
energy plan can contribute to climate change mitigation and adaptation in all energy
related planning processes. The GSI responsive energy planning process provides
the opportunity to work with the poorest of the poor, including women, Dalit, and
indigenous people.
Some of the specific scopes of the DCEP are;
1. Assess and analyse energy supply and consumption patterns in the district
supported by data disaggregated by gender and caste/ethnicity
2. Identify potential of renewable/rural energy sources and associated technologies

based on climatic, geographical and socio-economic variations.
3. Prepare a broad climate change assessment of the district (based on existing

data)
4. Prepare integrated rural/renewable energy development and management plan

including divisions of responsibility and specific activities of stakeholders.
5. Identify current and potential stakeholders in the renewable/rural energy (and

interlinking) sectors, analyse capacity in terms of ability to implement RE strategy
developed taking into consideration climate change and gender and social
inclusion issues including capacities for outreach, awareness of rights and access
to information in languages they understand.
6. Prepare an integrated inclusive climate change adaptive district energy plans

supporting potential mitigation actions
7. Provide tentative financial requirements for identified/proposed plan and suggest

ways of finance (grant/credit), funding mechanisms
8. Ensure that gender and social inclusion planning and processes are
mainstreamed into all DCEP plans and recommendations provided for GSI
strategies during implementation of the DCEP.
9. Provide a monitoring and evaluation plan for the implementation of DCEP fully
taking into account gender and social inclusions indicators
21
1.5.
Limitation of the study
Given the vast nature of the subjects (i.e. renewable energy, climate change and
gender and social inclusion) it is not feasible to encapsulate all aspects of these topics
within a DCEP and the DCEP document. In this regard the DCEP will only focus on
alternative and renewable energy. In addition, the preparation of a DCEP requires
primary data to be collated, however due to resource limitations this document has
been prepared mostly from secondary sources. Primary data has been collected to
validate and update the secondary sources and has been limited to certain village
development committees (VDCs).
Due to a lack of primary data, it is difficult to estimate actual energy consumption in
the residential sector of Ilam. Secondary data from Practical Actions Study to
Determine Outline Plans for Eliminating Energy Poverty in Nepal (Energy Poverty
Study) published in 2010 is adapted to serve this purpose which gives an estimation
of the minimum energy required to perform daily common activities of residential
sectors like cooking, water boiling, lighting and space heating. This is principally
restricted to incorporate macro-economic parameters like GDP in development of
energy intensity of energy users in Ilam as the minimum energy required to perform
certain activities will be same in every level of economic development. Also during
analysis of scenarios since minimum energy has been utilised the fact that people
might be adopting new technology for various needs or cross switching to other
technologies etc has not been considered. The use of the minimum energy
requirement also means that the scenarios that are presented will not be analysed
from an energy balance (demand vs. supply) perspective but from providing for the
minimum energy requirement that is analysed. Some of the other limitations of the
study are highlighted below:
The study is more focused on the residential sector especially energy

consumption in rural residential than industrial or commercial.
The scenario building utilises the fact that the major consumption of residential
energy lies in the cooking and lighting end uses only. The subsequent
planning is also focussed on providing for these end uses. However planning
for improved water mill dissemination for agro processing has also been
carried out based on its potential.
As this study was not a user focused assessment it has not been possible to
explicitly assess the particular needs of women and social groups
The data collection methodology did not always capture the gender situation in
households. For instance where financing mechanisms were not available for
technologies for example with ICS, the technology owner was normally
recorded as the household owner as the data was not disaggregated. For this
reason it seems that there is little female ownership of ICS, however this may
be a misrepresentation
22
The study has not covered the rebound effect of energy efficiency to the total
energy demand/consumption. The study has outlined the changes in the total
energy consumption due to intervention of efficient energy technologies
compared to inefficient ones, but has not looked after the energy mix
attributes, resulted due to benefits from the adoption of efficient energy
technologies, which increases the demand.
Given the context of transport and the amount of energy/fuel consumed within
a district it is very difficult to pinpoint empirical data on how much fuel could
have been consumed within the district, therefore no analysis has been done
on energy consumed in transport in Ilam.
Available hydro-meteorological information on local climate variability and

change is limited, is incomplete and cannot fully represent the diversity of the
district. There is no district-specific climate change and impact study in Ilam.
The climate analysis therefore is based on national reports, perceived impacts
and vulnerability, and climate trends.
Information on the impacts of climate change is based on the community

experiences and perceptions that varied with specific locations, understanding
of the respondents on climate change and their livelihoods exposed and
sensitive to climatic factors. That ultimately limits precise analysis of future
energy supply and demand in the district particularly in the context of climate
change.
The planning will abstain from planning for hydro projects that are not picot- or
micro hydro projects.
The resource assessment lacks proper assessment due to the unavailability

and accuracy of available secondary information.
Due to the lack of statistical and disaggregated data available on climate

change impacts, contribution to adaptation and GSI it was not possible to
quantify climate change and GSI issues at district level in order to show their
influence on the scenario development process. For this reason a subjective
scoring system has been used based on expert judgement and stakeholder
perception.
The information available, from implementing partners of RET interventions in

the district are based on the total number of installations carried out. There is
no such information on whether a particular HH has installed the same
technology twice and no such information on the number of functioning
technologies. Therefore the study makes some assumption on the lifespan of
the technology and subsequently the operation number of technologies.
1.6.
Overview of Ilam District
1.6.1. Geographic profile

Ilam district lies in the Mechi Zone of the Eastern Development Region of Nepal.
Spatially it is located between 2640 and 2708 North latitude, and between 8710 to
23
8810 East longitude. The district is a mountainous terrain and rises from 140m
above sea level at Setibeni to 3,636m at Sandakpur covering an area of 1,714 sq km,
making up 1.16 percent of the total land area of Nepal (Cited in: DFO Ilam, 2010).
The district is bordered by Panchthar in the North West, Morang in the South West,
Jhapa in the South East and Indias Darjeeling District in the East.
Altogether there are 3 Electoral Constituencies in Ilam, 11 Ilakas, 48 VDCs and 1
municipality. Ilam bazaar at the centremost is the district headquarters
Figure 1: Map of Ilam district.
Source: Digital Himalaya
Ilam district covers two physiographic regions Siwalik Hills and Mahabharat
Mountains. Broadly three climatic zones exist in the district which is primarily the
function of altitude. The altitude increases from south to north except in the major river
valleys such as Mai and Puwa River valleys as shown in the Figure 1. Siwalik Hills
and River valleys have a sub-tropical climate which occupies about 1/3 of the total
district area. To the north of Siwalik Mahabharat range covers about 2/3 of the total
area. Mahabharat range harbours two climate zones with lower temperate zones up to
approximately 2,400 meters above sea level and upper temperate zones over 2,400
meters above sea level. An upper temperate climate exists in the northern most
borders and around the ridges of the Mahabharat range.
24
Both climate and topography factor forests, vegetation, agriculture crops and
livelihoods. As the overall temperature decreases with a rise in altitude and exposure
due to mountain terrain, the physiography has also affected energy demand and
consumption for different purposes in different seasons of the year.
Mountain terrains in Ilam are of gentle slopes as compared to the similar
physiographic regions in the western Nepal. The less steep slopes together with a
moist climate has proved suitable for important cash crops such as tea and
cardamom.
All river systems in the district are of second and third order originating from
Mahabharat and Siwalik range respectively. So, they depend on the rainfall and
seasonal variation of discharge. Mai and Puwa Rivers and their tributaries originate
from the upper temperate region and drain out of the district in the south. The third
order rivers originating mostly from the Siwalik Hills, dry between November and May
while often get flooded between June and August.
1.6.2. Demographic structure

a)
Population
The Table 1 below shows the population status of Ilam. According to CBS (2001), the
total population of Ilam was 282,806 in 2001 with an annual population growth rate of
2.1%. Using the growth rate, the projected population in the district in 2010 is likely to
reach around 340,973.
Table 1: Population of Ilam
Population
Total Population
Male :
Female
Total Households
Average Household Size :
Population Density/Sq.km.
Population Growth Rate :
2001 Census
282,806
142,434
140,372
54,565
5.52
166
2.1
2010 Projection*
340,973
171,730
162,244
65,788
6
200
Source: CBS, 2001
b)
Caste/Ethnic composition
Ilam district has diverse ethnic distribution. However, Ilam district has a predominant
ethnic Rai and Limbu population, making up about 38% of the total population. After
this there are Tibeto-Burman ethnic groups including Magars and Gurungs who make
up about 17%. The Rai and Limbu reside mainly in the lower hills and valleys whilst
the Magars and Gurung predominantly inhabit the higher hills.
Language wise, approximately 87% of the population of Ilam speak Nepali, 11%
speak Rai and Limbu languages and 1% speak Newari, other local languages are
present in small numbers. The Figure 2 depicts ethnic composition of the district.
25
Figure 2: Ethnicity composition of Ilam
Gurung
3.20%
Kami
3.40%
Sherpa
1.60%
Damai
1.50%
Sunwar
1.30%
Others
5.90%
Rai
24.40%
Newar
3.80%
Magar
5.10%
Tamang
6.80%
c)
Brahmin
15.10%
Chetri
13.60%
Limbu
14.30%
Education Status
The 2001 CBS census listed the literacy rate of population of Ilam 6 years and above
at 66.23 percent. The 2010 projection predicts the literacy rate to reach 80 percent.
The literacy rate of the adult population (15 -24 years) is 61.5 percent while the net
enrolment ratio of children is 87.8 percent as depicted in the Table 2.
Table 2: Schools and Enrolment in Ilam
School Level
Number
Teachers
Total
GER
students
NER7
Female Male
Pre Primary
Primary
Lower Secondary
Secondary
Higher Secondary
Campus(constituent)
424
452
138
79
27
1
758
66
33
12
N/A
9279
2215 46465
545
23231
294
10471
12
4226
N/A
3133
60.0
119.5
106.5
67.8
26.6
97.6
89.2
46.4
8
Source: Intensive Study and Research Centre (ISRC), 2010
NER = Enrolled children in the official school age group / Total number of children in the
official school age group
GER = Enrolled children of all ages / Total number of children in the official school age group
26
d)
Economic activity
The economic activities in Ilam are much more diverse and a large proportion of the
population are engaged in different types of economic activities ranging from
agriculture to foreign employment. According to the ISRC, 2010, there were
approximately 173,000 (male and female) people, forming around 50% of the total
populations of Ilam that were economically active in Ilam. Economic activities in the
following areas were observed;
self tea plantation

working on big tea estates
NTFPs and cash crops such as cardamom, broom grass, ginger, chilly
livestock
tourism
remittance
Due to income generation from the above activities, it was found from field visit that
the affordability of services including communication and transportation was found to
be high. The Table 3 shows economic activities of people of Ilam as per 2001 census
and projection for the year 2010.
Table 3: Economic status of Ilam
Economic Activity
(10 years and above)
Economically Active Population Male
Economically Active Population Female
Economically Active Population Total
Economically Inactive Population Male
Economically inactive Population Female
Economically Inactive Population Total
Group: legislator/senior official/managers
2001
Census
77,798
66,406
144,204
30,669
40,552
71,221
146
2010
Projection
93,799
80064
173864
36,977
48,893
85,870
176
Group: Prof./semi Prof./Tech Workers

Group: Adm. & Clerical Workers
Group: Services workers & shop, market
sales
Group: Farm Fishing / Forestry Worker
Group: Craft & Trade Workers
Group: Prod. Labour Workers
Group: Other & Not stated
6,252
3,848
7,538
4,639
2,404
2,284
7,525
146
6,252
2,898
2,754
9,073
176
7,538
Source: ISRC, 2010
e)
Health
According to the 2004 Human Development Index of Nepal, Ilams child mortality rate
per thousand live births is 50.9, where Nepals average is 68.5. The average life
expectancy at birth is 64.7 years, slightly more than Nepals average which is 61
years. With relation to impact on health due to energy use practices, the case of
27
indoor air pollution due to use of traditional cook stoves was regularly highlighted by
community members during the field visit.
Table 4: Number of health facilities
Health Institution
Number
District Hospital
Primary Health Centre
Health Post
Sub-Health Post
38
Ayurverdic Aushadhalaya
Pharmacies
22
Source: ISRC, 2010
f)
Energy access and affordability
Fuel wood is the major source of energy in Ilam. From a total energy demand of 3.5
million GJ, Fuel wood contributes around 75% (2.6 Million GJ) of energy demand of
the district. In terms of energy being used by purpose, the predominant sources of fuel
in rural areas are consumed in cooking activity which are being powered by fuel wood
(77%) including traditional and improved cook stoves) biogas (13%) and kerosene
(4.5%) and agri-residue (3.5%).
Of the total HHs in Ilam, the main sources of power for lighting are electricity and
kerosene. Electricity is used by roughly 40% HHs and 80% HHs in rural and urban
areas respectively, for kerosene it is 45% and 12%. According to the NEA, around
19,000 HHs currently have access to the national grid. A small percentage of
households have access to solar PV and lanterns for lighting.
Fuel wood are still an untraded commodity in most part of Ilam resulting in it being the
highest preference energy resource of most of community members. However,
tradable energy sources such as LPG & Kerosene are still not affordable to
community members falling within lower income groups even though they prefer them
due to ease in handling (Source:FGD,2011).
However the field findings suggest that community members are ready to pay for
modern energy like electricity for residential lighting purpose if proper supports (for
e.g. providing information about availability of service, technical and financial
supports) are provided to them. This is supported by evidence such as the amount of
money spent in mobile phone services (average NPR 300 per month).
g)
Land distribution and natural resources
According to the District Forest Office publications, 54,676 hectare of the district is
considered agriculture; pasture land comprises 3,398 Ha and forest land 80,926 Ha
(47.12%).
28
Figure 3: Land distribution of Ilam (in hectares, %)
54676, 39%
80926, 59%
3398, 2%
Agricultural Land
Pasture Land
Forest
Of the total estimated forest area 49,101.69 hectare (60.67%) is under community
forestry involving 34,279 HH in 242 community forest user groups (CFUGs). Private
forestry is part of the agricultural system as it provides primary feed-stock to livestock,
fuel and timber which often falls on non-cultivated or cultivated land category. Almost
all rural households reported having some wood lots in their lands. According to
district forest office (B.S. 057/58) 2,228 hectare land needs to be restored through
plantation in the district as it provides an important land use for increasing productivity
for fuel supply in the future.
Forests
Ilam harbours Tropical, Sub-tropical, temperate and sub-alpine forests from its lowest
altitude to the highest.
Tropical forests extend up to 1000 meter altitude and consist of Shorea robusta as
dominant species with its associates Terminelia bellerica, Treminelia chebula,
Terminelia tomentosa, Alstonia scholaris and Lagostemia parviflora forming upper
storey. Asparagus, pulam etc are important under storey vegetations.
Sub-tropical forests exist between 1000 and 2000 meter above sea level and consists
of two major forest types Schima-Castanopsis and Alnus dominant forests with other
associated species such as Cinnamomum and Laurels. Alnus (alder) forests are
popular for their under storey vegetation of broom grass and cardamom which are
lucrative to income generation. They are also used at shelter belts in tea gardens in
the district. Since Ilam is moist occurrence of Chir Pine (Pinus roxburghii) is less in
this physiography.
29
Temperate forests are of two types lower temperate and upper temperate. Lower
temperate forests extend between 1,700 m and 2,400 m asl and consist of species of
Castanopsis, Champaks, Oak, Juglans. Upper temperate forests extend between
2700 m and 3100 m asl and consist of oak, rhododendron, chir pine, juglans and
taxus as dominant timber species.
Sub-alpine forests occupy small area as it is available in the district between 3,000 m
and 3,600 m asl in the district. They consist of Rhodonderns, taxus, oaks and spruces
as dominant species
However, there are overlaps in between different vegetation zones as the result of
aspect, slope and soil properties.
h)
Agriculture status
According to the land survey records from the DoS, there are approximately 121,414
plots in Ilam, with 1,899 tenants and 33,884 land owners. The main cereal crops
produced in Ilam are Paddy and Maize, with Millet Wheat and Barley also produced in
smaller quantities; there are also large quantities of potatoes produced, and other
small cash crops including Oil seed and sugar cane. Tea is also extensively grown in
the district. As of 2000, over 3,200 hectares of land is under agro-forestry where alder
and cardamom mix has been preferred. However, cultivation of broom grass has been
increased in the recent years and cardamom has encountered diseases leading the
reasons for decrease in coverage.
Communities and the authorities have perceived that land under agro-forestry has
been increased in recent years, which causes a reduction of areas under forest and
agriculture. This has positive input to the energy resources and affordability of
communities to different energy technologies and sources such as LPG.
1.6.3. Infrastructure
a)
Road
The district is linked to Nepals main road network to East-west Highway at Char Ali.
Ilam is crossed by a road that leads to adjoining districts Panchthar and further up to
Taplejung. Road from Fikkal through Pashupati Nagar, the border town, lead to
Darjeeling of India.
b)
Irrigation, drinking water and sanitation
Up to 2008/2009 Department of Irrigation had managed to provide irrigation to 5,975

Ha, while Asian Development Bank (ADB) supported initiative had irrigated 2,256.35
Ha of land in Ilam. The drinking water supply coverage in the district is 68.23 percent,
with urban and rural coverage of 72.82 and 67.95 percent respectively.
30
Table 5: Water and sanitation coverage in Ilam

Drinking Water and Sanitation
Percentage
Water Supply coverage
68.23
Rural Population Water Supply coverage

Urban Population Water Supply coverage
Population with sanitation coverage
67.95
72.82
67.97
Rural population with sanitation coverage
66.15
Urban population with sanitation coverage
97.54
Source: ISRC, 2010
c)
Electricity
Electricity in Ilam is supplied from various resources. Urban areas and nearby
settlements are predominantly supplied with electricity through the national grid, while
in remote rural locations, electricity are supplied mainly through micro hydro, pico
hydro and solar home systems. According to the NEA, around 19,000 HHs receive
electricity through the national grid (as of February 2011), while the estimates of
households served by off grid electrification is given in table below
Table 6 : Electrification in Ilam
Types of Technology
Installed
numbers
Total Installed
capacity
Grid Electricity
Households
Served
(Numbers)
~19,000
Micro Hydro
Pico Hydro
Solar Home System
2,760
1,371
-
9
50
2,379
551 kW
131 kW
109,810 Wp
Source: NEA, AEPC
1.6.4. Institutions
a)
Banks and NGOs
In total, there are altogether 99 Non governmental organisation (NGOs) working in the
district. Of these, 6 work in environmental protection; whereas 50 NGOs are working
in community development. As of July 2009, there are a total of 7 commercial banks
and their branches in operation in Ilam, around 350 co-operatives of various interests
in the district. There is potential opportunity for NGOs and banks to invest and focus
their efforts on energy sectors in the context of climate change, particularly in
adaptation and benefits from CDM.
b)
Industry
There is a total of 532 small and cottage industries out of which 35 are in the
productive and 356 are in the service sector. Altogether there are 19 industries
registered for foreign investment in the district. These industries provide employment
for around 5,015 people.
31
2. DCEP Preparation Process

The consultancy services for preparing the Ilam DCEP has followed the nine stages of
the DCEP preparation process as mentioned in the DCEP guidelines. The preparation
has been completed in line with the proposed district and national level stakeholder
consultations. The final DCEP document has incorporated the relevant and
appropriate feedback from these stakeholders and been approved by the DCEP task
force (including DDC) and national level stakeholders. The DCEP preparation process
is presented in figure 4 and is described in subsequent sections (Annex 5).
Figure 4: DCEP Preparation Process
2.1.
Process
2.1.1. Preparatory phase

Prior to initiation of the study, Illam was identified by AEPC/SNV as a DCEP pilot
district along with Makwanpur and Mustang. After selection of pilot district a DCEP
Task Force was created in all districts to facilitate the DCEP preparation and
implementation process. The DCEP task force includes the Local Development
Officer, DDC Planning Officer/programme officer, DEEU, District Chief of Women
Development Office, NGOs representative and private sector/ service providers
representative etc.
The first steps of preparation involved a desk study to identify potential data sources.
The representative from the district partner NGOs, the district focal points (DFPs) and
relevant stakeholders, were oriented on the DCEP plan preparation during this phase.
They were provided with the DCEP preparation guidelines and adequately sensitised
to the process. Data gaps and validation requirements were identified at this point.
2.1.2. Mobilisation - Interaction at district level

A DCEP task force meeting was held in DDC on 3rd December 2010 with the overall
objective of introducing the consultant teams and the DCEP task force in Ilam. The
32
meeting also identified four VDCs for the field survey, namely Samalbung, Mahamai,
Sakphara and Maimajuwa..
The work plan was shared and agreed upon and responsibilities of DDC, DEEU and
task force team defined for DCEP process. The meeting also decided on the four
VDCs for which the data was to be collected. Field visits were carried out in these four
VDCs in which necessary primary data on climate change and gender and social
inclusion implication on energy was collected through participatory rural appraisal
tools.
2.1.3. Data collection and analysis

Community level assessments and consultations were carried out in these 4 VDCs
while updated information on other VDCs available from NCDC was utilised in the
process. Different agencies including DDC, district forest office, tea industries and
NGO workers were consulted for additional information. DDC Ilam took the lead in the
consultation process and provided necessary guidance to the study team backed up
by AEPC and SNV. Various data were taken from secondary sources such WECS,
Decentralised Energy Management Initiatives (DEMI) study of Ilam.
2.1.4. District level planning/ stakeholder consultation workshop

A planning workshop was held in Ilam on the 27th and 28th of February, 2011 to share
preliminary findings of data analysis and to development a DCEP scenario. The
workshop provided valuable suggestions to the study team which help to quantify
qualitative information related to climate change and GSI collected from the different
levels of the district. The feedbacks was noted and considered for further refining of
the study.
2.1.5. DCEP finalization

After incorporating feedback from district stakeholders the draft DCEP was produced,
including activity plans, financial requirements, analysis of requirement of institutional
strengthening and a monitoring and evaluation plan.
2.1.6. Discussion approval district level consultation

After submitting the draft DCEP to AEPCs Carbon and Climate Unit (CCU) and SNV
for review and conditional approval and required revisions were made, the final report
was circulated to wider stakeholders in the district and at the national level. A district
level workshop was also held to share the DCEP draft. Feedback and comments were
also incorporated to produce the final draft for sharing at the national workshop. A
final report was prepared based on the feedback and review from the district and
national workshops.
2.2.
Methodology
2.2.1. Overview
The DCEP preparation methodology is based upon the DCEP preparation guidelines
(available from AEPCs CCU). The guidelines provided the tools and framework
33
necessary to prepare a DCEP, however the overall methodology that was used to
prepare DCEP Ilam is as follows
Data is mostly compiled from secondary sources particularly from the district.
Necessary primary data was collected to update and validate existing secondary data.
Relevant participatory rural appraisal (PRA) tools including focus group discussions
(FGDs), key informant interview (KII) and stakeholder/experts consultation also
formed the basis for collection of information on energy and climate vulnerabilities and
impact and gender and social inclusion issues. The FGDs were carried out in selected
VDCs that were chosen in the DCEP Task Force meeting based on the following
major VDC selection criteria suggested by DCEP guidelines;
Geographical representation (representing varied topography and climate)

VDC constituted with different percentage of ethnic groups
VDC accessibility- normal/seasonal/absence of transport facilities.
VDC having different status of RETs promotion
VDC, if reported of having adverse impact of climate change.
Necessary consultation with local actor (DCEP task force) is necessary to
prioritize the indicators for selecting the VDCs.
Observing the above criteria, the DCEP task force selected four VDCs namely
Samalbung, Mahamai, Sakfara, Maimajuwa.
The Intensive Study and Research Centre (2010) provided much of the information for
the district overview including socio-economic data. Energy consumption pattern was
analysed from data sources available at Namsaling Community Development Centre
(NCDC), AEPC, Biogas Support Programme (BSP) and through field surveys. The
collated data was further used to compile climate, gender and social inclusion,
technology and institutional assessments.
The main analytical tool used for the DCEP study was scenario analysis. This tool
was selected to explore the range of possible outcomes from alternative interventions
of different sets of technologies considering climate change and GSI issues. On the
base data on current energy situation, a business as usual scenario (BAU) was
developed to see how the energy system might look like if current trends and policies
were continued. After that, two alternative scenarios namely medium adaptation
scenario (MAS) and a climate resilient scenario (CRS) were developed which
suggests what the energy system of Ilam might looks like if issues related to climate
change and GSI are incorporated. The intervention level required for various
technologies was then calculated for both alternative scenarios and finally translated
into the detailed implementation plan for three years for Ilam. The scenario
development has considered the prioritisation of energy technologies on the basis of
stakeholders workshop and field based survey, which has encompassed the aspects
of climate change, GSI and cost issues underlying with the technology development.
This is elaborated in the following section.
34
2.2.2. Data collection

The study was mainly based on secondary data collected from various sources.
Collection of necessary data was discussed carefully with relevant officers involved in
the DCEP study from the side of CCU/AEPC and SNV. These information collections
were mostly based on the process outlined in the DCEP guideline. As depicted in the
Figure 5, the data collection looked to collate the 4 different components of DCEP.
This includes information required to address the scope of DCEP, which are
mainstreamed through the four components (i.e. energy, resource, institutional and
technology assessment). Furthermore, information were collected to cover the cross
cutting issues like gender, social inclusion, climate change and institutional capacity.
Figure 5: Data Collection Components of DCEP
Institutional Capacity
Institutional assessment
Climate change
Resource assessment
Social Inclusion
Energy needs assessment
Gender
Data collection components
Data Collection Components of DCEPs
Technology assessment
Cross cutting issues
a) Secondary Data Collection:

The study has adapted secondary data collected from various sources. Information on
the socio-economic overview of the district, energy data and policy interlinkages were
collected from secondary sources. Both central and local level secondary information
were collected to address the gaps in the information required to analyse in the
DCEP. This involved information collection from the district based offices DDC,
I/NGOs, service providers and market actors in RETs. The major sources of
secondary data have been published as part of documents available in different
agencies; data collected and referred for this study is shown in the Table 7.
35
Table 7: Major data source referred for the study

Data Source
Data Types
Study to determine outline plan for

eliminating energy poverty in Nepal,
Practical Action Nepal
Estimation of minimum energy required to

carry out different activity like cooking,
lighting, space heating, water boiling.
Wood Energy Planning Report of Ilam

(2001) prepared by FAO
Commercial and Industrial energy demand of

Ilam
Study to determine outline plans for

eliminating energy poverty in Nepal
Share of different types of cooking and

lighting devices used in residential sector of
eastern hilly region of Nepal.
Department of Hydrology &

Meteorology
Rainfall and temperature information of

weather stations in Ilam
The Intensive Study and Research

Centre 2010
Socio Economic data of Ilam
b) Primary data collection:

Primary data were mainly collected to fulfil the gaps in secondary data availability and
to validate and update (if required) the secondary data to make analysis more reliable.
Participatory rural appraisal (PRA) tools including focus group discussions (FGDs),
key informant interview (KII) and stakeholder/experts consultation formed the basis for
collection of information on energy, climate variability and change including its impacts
on energy resources, gender and social inclusion issues.
Key informant interviews were held in the selected VDCs and at the district
headquarter in Ilam. Officials from relevant government line agencies provided key
information relevant to the DCEP. NCDC and the DDC including its DEEU took the
lead of the consultations. Checklist and questionnaires were prepared for FGD, KII
and personal discussion which are included in the Annex 1. A summary of the key
findings is also presented in annex 4 of this document.
Information collected from the VDC level consultations for the DCEP were as follows;
a.
b.
c.
d.
e.
Fuel wood consumption in rural residential sector;

Community perception on climate change;
Localised effect of climate change on livelihood of community members;
Change in energy resource over time;
Community preferences to adapt different types of energy resources and
technologies;
2.2.3. Data Analysis and Scenario Development:

Data both primary and secondary were updated and analysed in order to make
inferences and recommendations. Data is, comprised of both qualitative and
quantitative nature information Revised and updated data on energy (such as demand
36
and supply) were entered in Long Range Energy Alternatives Planning System
(LEAP), specialised energy planning software to calculate the total energy demand of
IIam. Analysis and comparison of different scenarios together with level of intervention
required in different scenarios is also calculated by using LEAP.
In designing the scenarios, climate change, gender and social inclusion impacts and
influences were measured and analysed.. Other relevant mathematical programmes
such as MS Excel sheet were also used for calculation and analysis of information.
Collated data was analysed and processed to assess the energy, climate and GSI
situation of Ilam. Information from the current situation was then used to generate
scenarios (Business as Usual, Medium Adaptation and Climate Resilient Scenarios).
a) Energy Resource Assessment

Forests, water and agriculture resources as feeding stock to the energy sources were
analysed based on locally available information. Assessment of resources was carried
out aligning with national level general documents such as Solar and Wind Energy
Resources Assessment (SWERA) reports were referred to for wind and solar potential
of Ilam. The biogas potential of the district was adopted from BSPs study on
Technical and Market Potential of Biogas in Nepal. Vulnerability of different energy
resources to adverse impacts of climate vulnerability and change were analysed by
using local meteorological information, community and stakeholder perceptions and
general information available from national and international documents. The overall
vulnerability of the district is referred from National Adaptation Programme of Action
(NAPA). The scenarios have been prepared using LEAP and considerations of
communities, stakeholders and experts.
b) Technology Assessment
The technology assessment is based on both primary as well as secondary data. The
status and trend of specific technologies has been analysed with respect to data
collected from principal implementing organisations8, district line agencies and NGOs
working in the energy sector. Analysis of issues related to energy costs are based on
market prices regarding costs of fuel as well the installation costs from Rural Energy
Development Programme (REDP) as well as triangulation with the implementing
organisations in the districts and the principal organisations. Comparative analyses
have been computed to prioritise the energy technologies on the basis of financial
estimates as well as from the environmental perspectives.
Principal Organisation organisations that have been recognised by AEPC for

management/implementation of the technology at national/regional and district level.
37
Financial assessment
For financial assessment, comparisons are based on:
a. cost benefit analysis
b. energy cost
From the environmental perspective, comparisons are carried out based on:
a. comparative emission rates of each of the technologies
b. carbon emission abatement cost
c. adaptation and sustainable inclusive development potential of the technology
These analyses have supported the prioritisation of different renewable energy
technologies taking prevailing values in the district to assess required costs to abate
GHG emissions for different incremental investments for each technology.
Cost Benefit Analysis
A cost-benefit analysis has been used to provide a systematic evaluation of the
economic advantages (benefits) and disadvantages (costs) of a set of investment
alternatives. Typically, a Base Case is compared to one or more Alternatives (which
have some significant improvement compared to the Base Case). The analysis
evaluates incremental differences between the Base Case and the Alternative(s). In
other words, a cost-benefit analysis tries to answer the question: What additional
benefits will result if this Alternative is undertaken, and what additional costs are
needed to bring it about? It translates the effects of an investment into monetary terms
and to account for the fact that benefits generally accrue over a long period of time
while capital costs are incurred primarily in the initial years. The primary energyrelated elements that can be monetised are investment costs, technology operating
costs, ongoing maintenance costs, and remaining capital value (a combination of
capital expenditure and salvage value). The computation is based on the discounted
values of all costs and benefits.9
Discount rate is the rate used to generally appropriate weighted average cost of capital, which reflects
the risk of the cash flows. The discount rate reflects two things: 1 The time vale of money (risk-free
rate) - according to the theory of time preference, investors would rather have cash immediately than
having to wait and must therefore be compensated by paying for the delay. Mathematically Discount rate
(d) can be
Depicted by this way:
d = i / (1 + i).
Where i = interest rate.
38
Energy Cost
Here other costs, besides the cost of energy used per hour or per season, are taken
into account. This is because:
Energy source selected dictates the type of power unit that must be purchased
Different types of power units have greatly different purchase prices and estimated
useful service lives
Some require significantly more labour for maintenance and repairs as well.
These differences must be factored into the overall cost before a true cost comparison
can be conducted. In this method the present value of all costs of an energy system is
divided by the annuity factor for the life of the project to give the annualised cost. The
total energy cost is the sum of this annualised cost and the payment made for running
the system.
Carbon emission abatement cost
Economic cost calculation is the ideal cost concept for use in GHG abatement
assessment. Given the limitations in data and time for this country study review report,
it will not be possible to employ full economic costs in the analysis. Life cycle cost
(LCC) analysis has been carried out for all three potential renewable energy
technologies in order to find out the abatement cost which has been used as the basis
for prioritisation. LCC is the total discounted cash flow for an investment during its
economic life. In other words, it is the present value of all the costs associated with an
investment which generally includes the initial cost, the sum of discounted annual
maintenance and operating cost, and a credit for any residual value for the investment
at the end of the project period.
The formula for LCC is:
Lifecycle cost (LCC) = C c +
Cn
RV
CRF (1 + r ) t
Where:
Cc = Initial capital cost (capital, labor, administration cost)
Cn = Operating cost (operation, and maintenance cost, fuel, tax and interest)
in year n
n = time period (year)
r = discount rate
This formula is used to calculate "principal future value" and, how much future value is will be taken as
interest.
39
t = total life of project

RV = Residual Value
If the annual operating costs are constant, the simplified formula will be:
LCC = CC +
Cn
RV
CRF (1 + r ) t
Where: CRF (capital recovery factor) =
r
1 (1 + r) t
(Source: Spalding-Fecher, Clark, James, 1999, P. 23, 24)
The incremental cost thus obtained through the LCC analysis assuming constant
O&M costs for REGA technologies and the conventional system is divided by the CO2
abatement potential to get the incremental cost per ton of CO2 abatement. An initial
attempt has been made to calculate the incremental cost based on various
assumptions. There is ample room to make the calculations more explicit once all the
required empirical data are available.
From the environment perspective comparisons are carried out based on comparative
emission rates of each of the technologies.
Table 8: Comparative emission rates of each of the technologies
Technology
3
Biogas 6m
Emission Factor (ton CO2 equivalent/year)
Micro Hydro per kW

Solar 40 Wp SHS
4.88 per 6 m3 system

1.94 per kW
0.076 Wp
Source: IPCC, 1996
c) Gender and Social Inclusion Assessment

The available disaggregate data formed the basis for GSI assessment. Data available
from AEPC in terms of ownership of technologies as per ethnicity and gender was
accessed and technologies with highest potential to address GSI issues were
prioritized to build the scenario. The FGDs also provided for a brief overview of the
utilisation of various technologies, ownership, acceptance of various RET
technologies and the livelihood benefit it has been providing to various groups.
Information from different VDCs has been included in annex 4 of this document.
d) Climate Assessment
Climate, climate variability and change of Ilam district has been analysed triangulating
information from different sources. Information from bio-physical and hydrometeorological sources was mainly drawn from secondary sources such as data
records from Department of Hydrology and Meteorology and other published
literatures. Community and stakeholders experience and perceptions have served as
primary data. Bio-physical properties include information on landscapes such as
topography, altitude, aspect and, thus exposure that builds on the local climate.
Hydro-meteorological data from available stations in the district has provided trends of
climate variability and change. Available meteorological information from Ilam Tea
40
Estate (1300 m), Kanyam Tea Estate (1678 m) and Himali Gaun (1645 m) has been
referred to establish past trends of climate variability and change in the district.
Similarly, available hydrological information from Rajdwali station (alt 609 m) on water
discharge trend of Maikhola River has been utilized to assess variability of climate in
the district (figures in chapter 4 and annex 3). Lack of data has become one of the
limitations in this regard. For example Himali Gaun station has only rainfall data and
Kanyam station has only temperature data suitable to analysis.
These data were compared with community experiences in focussed group meetings
and stakeholder consultations in the district. Community and stakeholders
consultations provided information on sensitivity of different energy resources and
livelihood strategies to climate variability and change in the district. In the areas where
meteorological stations did not exist nearby, community information was fairly
instrumental to identify changes in crops and environmental situation over the past
(table 7).
e) Institutional Assessment
Institutional assessment of relevant stakeholders in the district was carried out in the
district using tools such as coverage matrix, actor constellation mapping and SWOT
analysis. Coverage matrix provided the information on degree of involvement of actors
in providing various services related to renewable energy. Actor constellation was
used to identify the relationships between these actors in terms of participation,
funding and coordination with each other. SWOT analysis helped to identify the gaps
and potential of these stakeholders and provided an assessment of the capacity
development needs. The outcomes have been presented in chapter 4 and the
information has been utilized in different chapters to their relevance.
f) Scenario development
Collected data was analysed and processed to create the energy, climate and GSI
situation of Ilam. Information from the current situation was then used to create three
scenarios -- Business As Usual (BAU), Medium Adaptation (MAS), and Climate
Resilient (CRS). For the preparation of the scenarios the Long-Range Energy
Alternative Planning Model (LEAP) software was used. It is a computer-based energy
accounting, simulation and scenario analysis model, designed to support policy
makers in assessing energy policies and to develop alternative energy scenarios.
The total primary energy consumption in the district is based on the demand tree
concept of the LEAP Model, and is configured as shown in the Figure 6.
The energy consumption in the district was disaggregated by residential, commercial
and industrial sectors, with further residential consumption further divided into urban
and rural sub-areas, which in turn are disaggregated into end-use and finally end use
device. Commercial and industrial sector energy consumption was disaggregated by
end-use fuel.
41
Figure 6 : The Energy Demand Tree for Ilam

Ilam District
Residential
Rural
End-uses
Devices
Commercial
Urban
End-uses
Industrial
End-uses
End-uses
Devices
Starting from 2010 base year, the BAU scenario was established assuming current
trends of energy use and technology interventions continue throughout the planning
period. In BAU scenario, end-use device shares are assumed not to change along
with their corresponding energy intensities. However, where possible penetration
levels of RETs were updated with data collected from relevant implementing bodies
(AEPC, CRT, BSP etc), in order to accurately reflect the current situation. Since, in a
household, multiple energy devices and fuels are often used for a specific end-use,
the total share of devices exceeds 100 percent. The device shares have been
adjusted assuming that each household uses a single device-type for a particular enduse. Intervention of convenient energy technologies and increasing access to
electricity and modern fuel at a current rate is assumed to continue. The study team
presumed, based on the results from the EPS, DEMI and other sources, that the
household cooking sector is the major consumer of energy for Ilam. Hence extra
efforts were made to validate the data with field finding and other related report
produced by different institutions. The industrial and commercial energy demand of
the district was adapted from data given in the previous studies of WECS of Ilam.
The scenarios were developed based on the interpretation of the scenarios provided
in the DCEP guidelines applied to the district context in regards to resource
vulnerability, mitigation potential, adaptation potential etc. Energy shares for end-uses
for the year 2020 were established from which energy demand was back cast. Back
casting allows for defining a desirable future scenario and working backwards to
identify the interventions that will connect present with the future. However staying
true to the planning requirement of the DCEP which is also to describe the scale of
necessary interventions, it has also been assumed that a particular HH will be using
one technology for an end use. This allows for the generation of targets for
interventions.
The detailed description of the scenarios is provided in Chapter 4 of the document.
42
3. District Climate Change and Energy Situation of

Ilam
This chapter of the report presents the overall situation of climate change, energy and
social inclusion of Ilam based on the data collected for this report.
3.1.
Climate Change assessment
3.1.1. Climate: Rainfall and temperature

The climate of Ilam district is a function of its topography influenced by altitude, aspect
(facet of terrain) and terrain. However, land use also has significant influences where
tea estates, cardamom and broom grass that have largely altered the natural
vegetation. The district has sub-tropical, lower temperate and upper temperate. The
climate of the district has been analysed based on the available information and
significance to the energy strategy in the context of climate change in the district.
Most of Siwalik region fall in the sub-tropical climate zone up to an altitude 1,000
meters and covers about one third of the district area. The region does not have any
meteorological stations making district level data difficult to obtain. Mahabharata
Mountains vary from 1,000 meters up to 3500 meter and cover about 2/3 area of the
district. Although available information from a station in Kanyam, Ilam and Himali
Gaun lack complete data sets on temperature and rainfall, available data on
temperature from Ilam and Kanyam stations show constant average annual
temperature (both max and min). However, information on rainfall is inconsistent
between stations. Himali Gaun reveals increasing annual rainfall with variability within
increment. The amount of rain has significantly increased during June, while rainfall in
September has seen a slight decrease with very high variability in both months over
past years. Ilam stations show annual rainfall remains similar over the past years.
However, June rainfall has increased and September rainfall has decreased with high
variability over the past years.
During community consultation in Mahamai VDC, resident recalled that there have
been warmer summer and colder but shorter winters. Rainfall has become more
erratic with fewer rainstorms dropping more rain and increasing gaps between two
successive rainfalls. Increased change has been experienced in winter rainfall that is
more intense but less in total quantity. This could not be calculated due to lack of
meteorological station data. However, communities have experienced change and
implication to energy resources including forests, water and agriculture. Combined
with socioeconomic practices, variability in temperature has led to an increase in fire
incidence during dry periods and flood during the rainy season in the forests in this
region.
Available information on temperature and precipitation were verified during the field
work from experience of communities in terms of variability. Identification of impacts of
changing agricultural practices (livelihoods) and hazards as a result of climate change
to energy resources, technologies and energy infrastructure were also assessed.
43
Combined with additional information from Rajdwali hydrology station along the
Maikhola River, overall scenario of past climate trend demonstrates climate of the
district where short rotation agriculture crops (rice, maize, wheat etc) have been
adversely affected. This was verified by the community perceptions as well. However,
farmers have switched to perennial crops such as tea and broom, and maintained
diversity such that they have been able to adapt to the changing consequences of
changing climate and land use.
Community consultations in 4 VDCs and stakeholder consultation at the district
headquarters revealed that impacts of climate variability are greater on agricultural
crops and water resources. However, it has been difficult to identify the exact impacts
of climate variability as agricultural and other livelihood practices have undergone
various changes inconsistent to climate variability of the district mostly factored by
markets.
Communities have witnessed more rainfall within short and single rainstorms and
bigger gaps between two successive rainfalls. They have experienced less rainfall in
winter and there are growing uncertainties on rain that has affected the crop calendar
such as rice planting and maize sowing. This reveals the changing variable climate in
the district. As the cropping pattern has gone through frequent changes in the district,
it is, however, difficult to draw inference based on this information. It is likely that the
energy resources such as agriculture residue and forests might experience pressure
of both varying climate and changing land use in future. Changed rainfall pattern (see
annex 3) has increased overland and torrential flow combined with decreasing ground
water recharge capacity of the landscapes due to unsustainable agricultural practices
and deforestation. However, communities and the stakeholders claimed that
conservation of forests particularly in the Mahabharat region is improving in the recent
years. In Siwalik region, the drought situation is increasing often linked to increased
risks of forest fire.
3.1.2. Hazards
The combination of the fragile steep landscape in the Siwalik range, variability in
rainfall and unsustainable land uses means this region is vulnerable to the hazards
such as flood, landslide, soil erosion, lightening, fire and diseases (particularly in
crops such as in cardamom) in the district that can affect energy resources. However,
the NAPA study suggested that Ilam is one of the least vulnerable districts in Nepal.
Table 9 : Ranking of Hazards according to NAPA (Key hazards in the district)
Vulnerability
Ranking
Landslide
Flood
Drought
GLOF (Him Taal Bishphotan)
Low
Very Low
Very Low
Very Low
Source: MOEnv, 2010
44
This information in the Table 9 has been triangulated with information available from
VDCs (Annex 4). Annex 3 depicts climate information of Ilam from HM data and 4
depicts same info from VDC consultations. Although the situation seems different but
overall scenario of vulnerability to climate induced hazards is likely to become low and
exceeded by consequences of the land use factors. Therefore, prevention and
mitigation of mal practices are considered more important over climate change
impacts in the district.
3.1.3. Past and perceived future trend on climate change, impacts and
vulnerability
Past and perceived future trend on climate change, impacts and vulnerability is
combined with community based information provide the past trend of climate
variability in the district. However, community perception on temperature rise is not
uniform across different communities. Studies including consultations during the
DCEP process reveal that community perceptions are less consistent on temperature
variability. The perceptions were factored by sensitivity of livelihood strategies and
socio-economic factors of respective communities. As the livelihoods of farmers
based on perennial crops (tea) and short rotation crops (maize, rice) are differently
sensitive to the climate perceptions varied across the communities.
Analysis of temperature and precipitation data available for the last three decades
from different stations in the district show rising average annual temperature at higher
rate at higher altitude: the trend is in line with the national scenario. Mixed impacts are
observed particularly on agriculture. Some crops such as oranges and vegetables are
doing well in the higher altitude and new diseases and pests in crops have occurred
including occurrence of mosquitoes at the higher altitudes. Ilam has gone through
significant change in cropping patterns in the last few decades as shown in the Table
10, an observation from Samalbung VDC.
Table 10 : Changes in cropping pattern over the years (Samalbung VDC)
Year
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1975
1985
1995
2005
2010
Maize
Millet
Potato
Gourds
Paddy
Cardamom
Maize
Millet
Potato
Gourds
Paddy
Cardamom
Tea
Amriso
Tea
Cardamom
Ginger
Amriso
Potato
Maize
Millet
Paddy
Floriculture
Gourds
Tea
Cardamom
Ginger
Amriso
Akbare (chilly)
Potato
Maize
Millet
Paddy
Floriculture
Oranges
Gourds
Tea
Amriso
Akbare (chilly)
Potato
Ginger
Floriculture
Maize
Millet
Paddy
Oranges
Cardamom
Tomatoes
Peas
Off-season vegetables
45
Note: Numbering also indicates the priority of the crops (1- more preferred and cultivated crop
than 2) Source: FGD, 2011
It should be acknowledged that information on the sensitivity of crops to climate

change is less clear however, a farmers ability to switch to different cropping shows
higher confidence to cope with the changes to a certain degree. Both change in crops
and the change in climate conditions will have impacts on energy supply and demand
from different sectors. Since the forests are being turned into tea gardens and natural
forest under story and ground vegetation is replaced by broom grass and cardamom,
biomass supply from forests for fuel is decreasing and is likely to decrease further in
the future. Although broom grass has multiple benefits, available biomass for fuel is
less as the stems are sold to paper industries outside the district. Household
purchasing power seems increased and is likely to continue in the future, alternate
sources of energy such as LPG, electricity, biogas and solar have potential to grow.
Vulnerability of biomass energy resources such as agriculture and forests and water
resources to climate is likely to grow as the temperature rises and rainfall patterns are
becoming more erratic. However, communities in the district have displayed a range
of adaptive capacities existing trend of climate variability is less likely to affect
the livelihoods adversely in the short run. On the other hand, as the crop failure on
cardamom showed, failure on tea and other forest based crops may damage the
livelihoods which were not possible to predict with the available precision of
information.
Energy resources such as water and certain agriculture crops are sensitive to current
trend of climate variability. This has been managed through the improved income from
cash crops, availability of energy sources such as LPG and grid electricity. It is
advisable that district agencies should raise awareness of communities and promote
conservation of forest resources. It is particularly important as demand of fuel is likely
to increase with increase in industries in the district.
The information presented Figure 7 and 8 is based on the Department of Hydrology
and Meteorologys data for 30 years.
Figure 7 : Maximum, mean and minimum temperature variation (Ilam tea estate)
25
Maximum
Temperature
Temperature (C)
22.5
20
Mean
Temperature
17.5
15
Minimum
Temperature
12.5
10
Year
46
Source: Adapted from DHM data
Figure 8 : Average yearly rainfall at Ilam tea estate

250
Rainfall (mm)
200
150
100
50
0
Year
Source: Adapted from DHM data
The average annual discharge of the Maikhola River shows the high variability of
climate pattern in the district despite the data on rainfall from different stations in the
district. Land use patterns appear to have greater significance to rainfall variability in
the district. While socio-economic practices are sensitive to a number of unpredictable
factors, combined results may create further uncertainty in the district. Therefore,
preparedness for uncertainty and implementation of conservation friendly agriculture
and livelihood strategies are necessary. In the face of uncertainty around climate
change itself, no regret resource management strategies would be appropriate for
the district. This scenario suggests a preference for a diversity of energy resources
and end use to expand income opportunities and increase the capacity of
communities to purchase energy technologies and other options.
Figure 9 : Average yearly discharge of Mai Khola at Rajdwali station
Average Yearly Discharge of Mai Khola at Rajdwali Station
60
Discharge in m3/s
50
47.9
41.8
40
30.1
30
20
21.6
29
24.3
28.2 27.7
23.5
20.2 19.8
26.1
23.9
23.5
18.8
14.7
10
43.5
15.8
11.7
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
47
3.2.
Gender and social Inclusion assessment
With more than 90% of the households using fuel wood, and fuel wood collection
predominantly being carried out by women, the dwindling forests due to land clearing
for tea-plantation has serious implications on the availability of fuel wood and
therefore gender and social dynamics. Reduced fuel wood availability has led to the
adoption of mixed fuel use, including husks and homemade charcoal based stoves
used by lower income groups such as the Lepchas, Rais and Tamangs.
Other groups have resorted to LPG as well as electricity. The field evidence from
Maimajhuwa suggests that Fuel wood is still the only cooking energy source. In the
main, the high cost of biogas and LPG has forced households with these systems to
use fuel wood. This indicates that fuel wood will continue to be the prime energy
source for many of the families irrespective of economy or caste/ethnicity. People
here have already initiated the planting of trees around the homestead; however, this
cannot be applied throughout the district. So, promotion of private, community and
leasehold forestry focusing to marginalized communities such as Lepchas is
necessary. Secondly, priority needs to be put to provide ownership and access to
efficient technologies to these groups including women.
The reduced plantation of crops such as paddy and wheat has also affected the
availability of crop residue for fuel. This has further increased the dependence on fuel
wood. Thus in Samalbung, it was explicitly stated that the burden of fuel wood
collection is shared with man as larger trees are now being used for fuel wood. This is
also evident from the activity chart developed for the male and female members (see
Figure 10).
Figure 10 : Distribution of ICS by ethnicity and gender
Male
F emale
1200
1000
800
600
400
200
0
B rahmin
and
C hetris
By Ethnicity
R ai
Newar
Dalit
O ther
E thnic
G roups
By Gender
Source: AEPC 2011
48
In the case of ethnic groups such as the Lepchas, from the low economy group 75
percent of women are involved in fuel wood collection and cooking. They depend
totally on kerosene for lighting.
Use of efficient fuel wood based ICS is seen as an important strategy for enabling
reduction in fuel wood use and addressing the effects of climate change this is also
seen as a measure of reducing the incumbent drudgery associated with the collection
and use of fuel wood in traditional stoves. Of the total 59,830 households in rural Ilam,
nearly 36 percent have installed ICS. Of this 21 percent are owned by women. The
figure 10 below presents the distribution of ICS by gender and ethnicity clearly
indicates the higher number, 37 percent of ownership lying within the upper class
Brahmins and Chhetris, followed by 22 percent owned by the Rai community, while
the number is prominently low, 2 percent, for the Dalits. In the case of gendered
ownership within each ethnic group, the distribution is uniform with about 20%
ownership by females across the ethnic groups.
Use of biogas is popular mainly because of the ease of cooking in a clean kitchen and
time saving which is put to use in income generating activities. The slurry available as
effective manure for vegetable farming is another reason for its popularity. The task of
operating biogas is mainly the responsibility of women; collecting dung and water and
mixing it prior to feeding into the digester; women find this process a welcome respite
from attending to fuel wood stoves. In recent years, it has rapidly gained in popularity.
Of the total 2819 systems installed in Ilam, 33 percent is owned by women. In terms of
ethnicity, Brahmins and Chhetris own 53% percent of the systems. Within each of
these ethnic groups, the 38 percent are owned by women within the Rai community,
33 percent in the Brahmin and Chhetri community and 32 percent amongst the Dalits.
Presently, biogas is available in only 19 percent of the households in rural Ilam. (See
Figures 11)
Figure 11 : Distribution of Biogas by ethnicity and gender
O ther
E thnic
G roups
24%
Male
Dalit
2%
F emale
Newar
8%
R ai
13%
B rahmin
and
C hetris
53%
By ethnicity
B rahmin and
C hetris
R ai
Newar
Other E thnic
G roups
Dalit
By gender
Source: AEPC 2011
49
It is pertinent to clarify that these households also own biogas as well as LPG. This
practice has been adopted simply to secure energy primarily for cooking and for
balancing energy costs.
With 2,379 solar home systems installed in the district it provides light for nearly 24
percent of the households in rural Ilam. Women own nearly 15 percent of these
systems. In terms of ethnicity Brahmins and Chhetris own nearly 37 percent of the
systems followed by Rai community and the Dalits own 3 percent. Within each of the
ethnic groups 18 percent of women within the Rai community own SHS, followed by
the 15 percent amongst Newar, and 10 percent within Dalits. (See figures 12). From
the same Figure, it is also evident that Brahmin females have more ownership of the
systems as compared to the females of the other ethnic groups.
Figure 12 Distribution of SHS by ethnicity and gender
Dalit
3%
O ther
E thnic
G roups
33%
Newar
4%
Male
B rahmin
and C hetris
37%
R ai
23%
By ethnicity
F emale
900
800
700
600
500
400
300
200
100
0
B rahmin
and
C hetris
R ai
Newar
O ther
E thnic
G roups
Dalit
By gender
Source: AEPC 2011
Improved water mills have been a source for grinding agro-products as well as lighting
in many of the remote villages. This has reduced the task of manually grinding grains
which women carry out daily in the early hours of the day. Similar services have been
available from the 53 systems installed in different parts of Ilam. Once again, the
systems are largely owned by the Brahmins and Chhetris, 40 percent and 18 percent
by the Rai. Only 4 percent of the systems are owned by women and in this case all of
these are owned by women belonging to Brahmins and Chhetris (See Figure 13).
50
Figure 13 : Distribution of IWM by Ethnicity and Gender

Male
Brahmin
and Chetris
40%
Other
Ethnic
Groups
42%
F emale
25
20
15
10
5
0
Rai
18%
By ethnicity
B rahmin and
C hetris
R ai
Other E thnic
G roups
By gender
Source: AEPC 2011
The general observations regarding ownership are as follows:
Male ownership in case of all the technologies is higher as compared to

women
In terms of ethnic classification ownership is higher amongst the Brahmins

and Chhetris
Of the several reasons for this discrepancy, accesses to information as well as

economic level are prominent (FDG). Both these parameters hold strong in case of
women as well as dalits.
3.3.
Energy demand assessment
An assessment of the energy demand of residential sector in Ilam is based on the

minimum energy required for residential activities. The minimum energy required for
cooking is 5.5 GJ/HH/year, for lighting its 1,431,000 lumen-hours per year, and for
water boiling it is 3.09 GJ/HH/year (Pokharel S., 2002)
The minimum energy required is then multiplied by average efficiencies for each
device to obtain total energy requirements for each end-use. Device efficiencies are
summarized below.
51
Table 11 : Device efficiencies of technologies

TCS
10%
Iron
Tripod/
3-Stone
5%
ICS
Gasifier Charcoal
Stove
Biogas
Stove
LPG
Stove
Pressure
Stove
Wick
Stove
Clay
Electric
Heater Kettle
20%
30%
60%
65%
50%
45%
55%
20%
80-90%
Source: EPS, 2010

Table 12 : Minimum energy requirements in cooking activities for different
devices
Minimum Energy Required for cooking (GJ/household/year):
Charcoal Biogas LPG
Fuel wood
TCS
Iron
Tripod/
3-Stone
55.0 110.0
Kerosene
Electricity
ICS
Gasifier Charcoal
Stove
Biogas
Stove
LPG
Stove
Pressure Wick
Stove
Stove
Clay
Heater
Rice
Cooker
27.5
18.3
9.2
8.5
11.0
10.0
6.1
27.5
12.2
Source: EPS, 2010

Table 13 : Minimum energy requirements in lighting for different devices
Minimum Primary Energy Required (kWh/household/year) for Kerosene Devices
Electric Devices
CFL
Fluorescent
Incandescent
SHS
SSHS
Kerosene Lantern
(7 W)
Lamps
Lamps
(7 W)
(0.03 W)
Tuki
(50 lm)
(40 W)
(40W)
(5 lm)
35.8
44.2
143.1
35.8
38.2
2.6
8.6
Gas
Lamp
(1000
lm)
26.1
Source: EPS, 2010

In order to calculate energy demand, two factors are necessary: the level of activity
and the energy intensity of the device. The above table will suggest energy intensity
for each device for any specific activities. For the level of activity of each devices type
for different activities, the study team adapted data from Energy Poverty Reduction
Study carried out by Practical Action in 2009. However, efforts were made to validate
against actual energy consumption trend of Ilam by updating the activity level
(intensity of activity) of different devices like ICS, Biogas, electricity usage (from micro
hydro, grid extension, IWM, solar).
The commercial and industrial energy demand is adapted from the wood energy
planning of Ilam produced by FAO in 2001 by extrapolating the energy demand using
commercial and industrial growth rate which is adapted from WECS report 2010.
3.3.1. Residential
The residential sector is the largest consumer of energy in the district with a demand
of 2,627,000 GJ in 2010. Residential electrification in the district is approximately 35%
and 95% in rural and urban areas respectively. Cooking makes up the biggest share
of energy consumption in the residential sector totalling 2,553,600 GJ, lighting
accounts for 73,500 GJ. In terms of fuel consumption, biomass has the largest share
for cooking making up over 85% of fuel uses.
52
For lighting, the main sources of energy is electricity (if the HH has access to the NEA
or an off grid electricity connection) and kerosene (mainly in rural areas).
Table 14: Residential Energy Demand by End Use
End Use
Rural ('000 GJ)
Urban( '000 GJ)
Cooking
2,436.74
116.86
Lighting
60.30
13.19
Total
2,497.04
130.05
Table 15: Residential Energy Demand by Fuel Type

Fuel
Biogas
Biomass
Charcoal
Electricity
Kerosene
LPG
Wood
Total
Rural ('000 GJ)

26.34
217.32
1.06
36.09
42.82
49.92
2,123.35
2,497.04
Urban ( '000 GJ)

1.96
6.55
0.02
13.02
0.22
2.62
104.66
135.05
The minimum energy required for various purposes in the residential sector i.e.
cooking, space heating, and water boiling as suggested by energy poverty study
provided the study team with early indication that the rural cooking activity will be the
largest consumer of the electricity. Due to this reason, the study team tried to update
the data about energy consumption for cooking purposes. However, during field visits
and from other secondary literature, it was not possible to obtain significant
information about energy consumption in cooking alone to validate the data provided
by energy poverty study. Nevertheless, the study members were able to get data,
especially about fuel wood consumption by rural dwellers for cooking, space heating
and water boiling purpose. Hence the analysis was done integrating energy demand
for cooking, space heating and water boiling. The consumption of fuel wood by rural
dwellers is collected from various sources like DEMI report of various VDCs of Ilam,
along with focal group discussion as shown in the table below.
Table 16 : The consumption of fuel wood by rural dwellers
Region
Share of
population
Average fuel
Fuel wood
wood
Consumption
(kg)
Consumption
(Bhari*)
Lowhill
29.45%
93
2790
Midhill
53.13%
155
4650
Uphill
17.42%
300
9000
* 1 Bhari= 30 kg
Weighted
Average
(kg)
4860.2
Source: DEMI, FGD 2011
53
3.3.2. Commercial
The main consumers in the commercial sector of Ilam are restaurants, hotels,
hospitals, schools etc. The current energy demand from the commercial sector of Ilam
is estimated from the wood energy planning report produced by the FAO in 2001. The
commercial energy growth rate of 2% for Ilam as suggested by the same report
(national average commercial energy growth rate from 1995 to 2009 found to be 5%
as of WECS 2010 report) is used to estimate the future energy demand in the
commercial sector. In terms of energy demand it is very small compared to industrial
and residential demands. In 2010 the total demand was 2,103 GJ, almost 60% of
which is from electricity, 20% from LPG and 13% wood.
3.3.3. Industrial
The industrial sector is primarily based on the following industries: rice mills, presses,
tea production, cardamom processing and cheese factories. Currently, the tea
industries have been trademark of Ilam which is growing very rapidly over time. Based
upon the wood energy planning report produced by the FAO in 2001, using the
industrial growth rate of 5%, the industrial energy demand was estimated to be
958,540 GJ in 2010.
3.3.4. Implication of climate change on energy consumption

Regardless of its climatic variability Ilam is observing a general rise in temperature.
Participants in FGDs described the declining culture of using wood fuel for space
heating and the need for space heating in general. This, according to the
respondents, was because of the introduction of newer technologies, warmer winters,
as well as increased affordability to buy warm clothes. Therefore energy consumption
in this regard is most likely to decrease in coming years. On the other hand increased
temperature will result in demand of energy (electricity) for cooling and refrigeration
purposes mostly in urban areas as well as for commercial purposes. Likewise, people
in many places in Ilam have already been compelled to use motor pumps to extract
ground water due to the increasing unavailability of water for irrigation. With
projections of an aggravated situation if current trends are allowed to continue, the
energy demand for irrigation purposes will most likely grow. The energy-povertyvulnerability nexus will also necessitate the increase in energy demand to improve
livelihoods and adaptive capacity of vulnerable groups.
3.4.
Energy Resource Assessment
3.4.1. Traditional (Biomass)

a) Fuel wood
Fuel wood remains the major energy resource for residential and commercial use in
the district. In total the district has 80,926 ha of forest land, which is categorised into
community forests, private forests leasehold forests and government forests, with
some market sourced.
54
Table 17: Fuel wood resource

Type of forest
Area in ha
Community Forest
Leasehold/Private Forest
Government/Other Forest
Total
49,102
1.16
31,822.84
80,926.00
Source: District Forest Office
b) Agricultural residue
Another traditional source of energy in the district is agricultural residue and animal
dung. The main sources of agri-residue in Ilam are paddy, maize, and wheat; other
sources provide much smaller quantities of energy. The total energy potentiality of
agricultural residue is 243 GJ (Table 18).
Table 18: Agricultural residue Resource supply
Crop Type
Paddy
13,200
Theoretical
Production (Mt)
36,300
Maize
Millet
Wheat
23,480
3,314
4,735
57,526
2,884
8,250
37.76
6.50
31.53
Barley
75
75
0.17
Oilseed
775
636
2.46
13
470
0.35
45,592
106,141
243
Sugar Cane
Total
Area (Ha)
Energy Potentiality (GJ)

164.23
Source: Energy Poverty Report; District Profile (2008/09)
c) Animal dung
With many rural households owning cattle, animal dung is often used as a fuel source.
Within the district, there are an estimated 42,362 households owning cattle, with cattle
and buffalo populations of 92,570 and 29,045 respectively, producing a combined 141
Mt of waste. The total energy potentiality is 553 GJ. (Source: Energy Poverty Report;
District Profile (2008/09)). However, in Ilam the field visit as well as interaction with
district stakeholders and community members suggested that the use of animal dung
for generating energy by direct combustion is not popular in Ilam. Instead, they are
being used in other ways, i.e. by generation of biogas. With more than 12,000
households with the required land and livestock for generation of biogas, the technical
potential of biogas from animal dung is more than 9,000 while the market potential is
around 5800.
55
Table 19: Animal Dung Resource

Households with
land and livestock
(a)
12,402
Technical potential biogas

households
(75 % of a)
Market potential
biogas households
(47 % of a)
9,306
5,830
Source: BSP 2010
3.4.2. Commercial & fossil fuels:

In commercial energy resources, the energy generated from hydro power is
considered. Ilam has second order rivers originating from the middle-mountains
known as Mahabharat and third order streams originated from lower mountains known
as Chure. The latter are seasonal in nature flowing during summer monsoon only.
From an energy perspective second-order rivers and their tributaries have more
potential to generate energy. The rivers like Mai Khola, Phakphok Khola, Puwa Khola
have great potential to generate hydro electricity in different levels. There is already a
6.2 MW Puwa khola hydro power project in Ilam which is owned and undertaken by
NEA. In addition, it has been identified that dozens more hydro power projects in Ilam
which have undergone different process to develop and are summarised in the Table
20.
Table 20: List of identified major hydro power projects in Ilam
Name of Hydro
Power Project (HPP)
Location
Size of
Project (MW)
Remarks
Puwa Khola II HPP
Ilam
0.99
Mai Khola HPP

Jhutre Khola HPP
Ghatte Khola HPP
Mawa Khola HPP
Ratwa Khola HPP
Ilam
Shantidand, Ilam
Sangrumba, Ilam
Bajho, Ilam
Bjaho
0.9
0.346
0.419
0.9
0.9
Mai A HPP
Ilam
3.2
PhakPhok HPP
Mewa Khola HPP
Lumbe,Ilam
Ilam
Mangalbare,
Ektapaa,Ilam
Danabari, Ilam
Mabu, Maimajuwa,
Ilam
Shantipur, Ilam
Maipokhari,Ilam
Gajurmukhi,Ilam
2.9
8
Application for Survey

License for Generation
(Below 1 MW) submitted to
DOED.
Applied for Survey License to

DOED.
15
2.3
5
5
Deumai Khola
Mai Energy HPP
Upper Mai HPP
Birin Khola HPP
Phakphok Khola
Phakphok Khola
56
Hayonma Khola HPP

Mai Khola HPP
Lower Mai HPP
Chamate, Ilam
Barbote,Ilam
Danabari,Ilam
1.762
5
2
Mai Khola HPP
15.6
Mai Cascade
4.5
Upper
HPP
Total
Puwa
Khola
1.6
Under review pf PPA draft

committee
for
Sanima
hydropower company.
Under detail review of
technical
committee
for
Sanima hydropower.
Under general review for
Power Gen Company Ltd.
90.317
Source: Department of electricity development.
As in other parts of Nepal, Ilam also use fossil fuels which are imported from foreign
countries. Furthermore, settlements neighbouring India are also importing fossil fuels
such as LPG and Kerosene in an illegal way. It is very difficult to get exact data of
fossil fuels import and usage in district. However, some of the major areas where
different types of fossil fuels are consumed is summarised in the Table 21.
Table 21: Major application of fossil fuel in Ilam
Fossil Fuels
Diesel
Kerosene
LPG
Coal
Gasoline
Major Application
Transportation, operating generators in households and small
industries like agro processing industries.
Cooking, lighting in industrial sector
Cooking, lighting in commercial and residential areas
Tea Industry
Transportation, Operating small generators for individual use.
3.4.3. Renewable energy:

a)
Micro Hydro & Pico Hydro
There are large numbers of pico hydro and micro hydro power plants installed in Ilam
from the river system originating from mid mountain and the lower mountain. There
are already nine micro hydro projects operational in Ilam generating 551 kW of power
and serving 2670 HHs. The Table 22 summarizes the micro hydro plants operational
in Ilam.
Table 22 : Micro-hydro projects currently in operation
S.N.
Completed MH/PH
Address
HH
kW
1
2
3
4
5
6
Triveni Khola MHP

Samaha Khola MHP
Fakfok Khola II MHP
Dhuwa Khola MHP
Fakfok Khola III MHP
Mawa Khola MHP
Mabu-2, Ilam
Pyang-1,Ilam
Fakfok-7, Ilam
Jamuna-4, Ilam
Amchowk-1, Ilam
Sakfara-4, Ilam
434
58
203
88
280
280
50
7
20
12
28
33
57
7
8
9
Rate Khola I MHP

Rate Khola II MHP
Pico Hydro Projects
Total
Maimajhuwa-6,7
Maimajhuwa-6
Ilam
33
9
1,375
2,760
200
70
131
551
Source: NCDC
Similarly, there are already 235 pico hydro power plants installed in Ilam with an
installed capacity of 358 kW of power.
b) Solar
The solar and wind energy resource assessment (SWERA) of Nepal suggested that
Ilam has one of the best solar resources in the country with an annual average global
horizontal irradiance (GHI) of 5.1 kWh/m2/day. Figure 14 below shows annual average
GHI of Nepal along with Ilam.
Figure 14 : Annual Average GHI of Nepal
Source: SWERA Report, 2006
c)
Wind
The SWERA report produced by AEPC does not suggest any convincing source of
wind energy in Ilam (see Figure 15) However, during FDG, the community members
(especially from Somalbung) reported that there are a number of passes do exist in
Ilam where regular wind flow has been observed. However detailed measurement of
wind speed has not been available for Ilam till now.
58
Figure 15: Potential of wind energy in Ilam
Source: SWERA Report, 2006
3.4.4. Vulnerability and stresses to energy resources in the context of

climate change
As the energy is an important player in climate change and its mitigation and
adaptation, unmanaged resources and use is likely to generate adverse feedback
implications. Existing trends of land use seems to dominant over the climate variability
in the district as there is less verifiable information on climate variability and change.
However, climate compatible management of resources will enable both communities
and energy resources to cope with uncertainties associated with climate change in the
district.
Energy resources that are dependent on water are impacted through climate induced
disasters are the most vulnerable to stresses of climate change. Decreasing levels of
water availability has a direct impact on hydropower production. It also results in a
decrease in forest cover, decrease in agriculture production and livestock rearing
which impact availability of energy resources like firewood, agriculture waste and
animal dung.
Increase spells of droughts result in forest fires which also adversely impact forest
resources and availability of fuel wood; while climate induced disasters either
eradicate the source or limit access to such resources. Weather induced hazards
such as landslides can disrupt the supply of fuel and electricity to some extent when
infrastructure like roads and transmission lines get damaged.
a) Forests
Erratic patterns of rainfall in Ilam and increased temperature are both likely to have
adverse impacts on forest growth as sharper and shorter spells of Monsoon reduce
59
ground water recharge. On the other hand increased evaporation and transpiration
due to increased temperature reduce moisture content leading to longer dry periods
and subsequently drought situations. Such drought situations increase the chances of
fire hazards. Forests fires are frequent in Ilam, demonstrating the forests high
vulnerability to fire hazards. Landslides are another threat to the forests in Ilam.
However increased community participation in forest management in recent years has
provided impetus to adaptive management that is necessary to reduce the
vulnerability of forest resources to the undergoing impact of climate change and socioeconomic factors.
Forests are under deforestations and land use change into agriculture and settlement
although some improvements can be seen due to community participation in the
forest management. Erratic pattern of rainfall and increased temperature both are
likely to have adverse impacts on forest growth as intensive but squeezed rainfall to
shorter periods lessens the ground water recharge. Together with increased
evaporation and transpiration due to increased temperature moisture content is
lessened leading to drought situations and to the consequences of fire hazard.
Local communities and district level stakeholders have reported a shift of vegetation
zone which was regarded as having both positive and adverse effects on energy
resources. Positive effects are attributed to opportunity to grow new crops in the upper
altitudes such as orange (mentioned in Samalbung) and adverse effects are attributed
to depletion of indigenous species to which community livelihoods are associated
with. Adaptive management is necessary to reduce the vulnerability of forest
resources to the undergoing impact of climate change and socio-economic factors.
b) Waterways
Rivers in Ilam originate from Mahabharata and Silwalik range and thus are not snow
fed or glacier based. However, the effects of climate change are felt on flow variation
(increase in intensity of flooding as well) due to changing rainfall patterns and
increasing temperature trends. With the increase in population in the district, the
consumptive uses of water in the rivers seem to have also increased. Due to this,
there will likely be less water to use for non consumptive activities like generation of
electricity, agro processing through water mills, biogas generation etc. Therefore,
efficient use of water resources, watershed conservation and promotion of rainwater
harvesting and protection of drinking water sources and their catchments are
necessities for Ilam in the context of climate change. So the investment and support
on water for regular supply is the key for the regular operation of some of RE
technologies like biogas as water is one of the essential inputs for biogas generation.
Increased availability of water also supports to reduce drudgery and save time for
managing water needed for renewable energy technologies and as well as for
consumptive and other purposes.
However based on available past information on climate, prediction of future scenario
of climate in the district is difficult and potentially unreliable. Therefore, future
vulnerability of energy in the context of climate change lies within great uncertainty.
60
Issues around resource management and utilization exist. Improved management

would enable communities and their resources to absorb future stresses.
Changing rainfall patterns and increasing temperature trend has impact on the stream
flow variation together increased frequency intensity of flooding. Local communities in
the lower hills were concerned about increasing drought in recent decades.
Community are expecting increased water shortage in future due to changing weather
patterns and changes in land and resource use practices (i.e. deforestation).
With the increase in population in the district, the consumptive uses of water in the
rivers seem to increase. Therefore, efficient use of water resources, watershed
conservation and promotion of rainwater harvesting and protection of drinking water
sources and their catchments are necessities for Ilam in the context of climate change
and undergoing socio-economic changes in the district.
c) Solar
Vulnerability of solar in the district is yet to be understood. Communities in the middle
mountain zone have experienced decreasing intensity (thickness) and period of fog
particularly in summer and winter (Source: FGD 2011). That may increase sunshine
hour and have positive implication of utilizing energy for solar.
d) Wind
There are a number of passes where community members reported regular wind flow.
However the change in the wind is not assessed in detail such that the trend could be
identified. Communities were not able to provide reliable indicators of change in wind
pattern over the period they have been in the area. So, this is also a potential area for
future studies.
e) Agriculture/Crop residue resource

Traditional agriculture products including cereal crops are vulnerable to climate
change impacts and weather variability as they are heavily dependent on natural
rainfall and seasons. Farmers have switched to different crops over the past. Tea is
the most longstanding crop. The trend shows that there has been crop failure 5-10
years ago in cardamom and ginger causing farmers to switch to other crops. This
reveals the vulnerability of agriculture and energy resource despite their positive
impact on farmers income. Since farmers have switched increasingly to cash crops,
available biomass for fuel from the agriculture sectors is reducing, posing increased
pressure in the forests. However, access to electricity and LPG has helped
withstanding shortage.
3.4.5. Transportation and access to resources

Weather induced hazards including landslides have disrupted the supply of fuel and
electricity. However, communities and stakeholders have overcome these situations
utilising existing storage facilities. However increasing hazards could aggravate this
situation and the district could consider a transportation management system.
61
Generally forests are formally and informally under community based management
whilst agriculture is normally under private management and water resources are
utilized under different regimes. In order to utilize natural resources, it is important to
maintain diversity and sustainability. Objective oriented management considers the
balance between supply and demand and should be priority in land, water and forest
management. Fire prevention and sustainable extraction should be a major focus of
forest management, whilst promotion of regeneration considering extension of species
with respect to the impacts of changing climate, and socioeconomic factors could be a
new approach to afforestation, agro-forestry and natural restoration.
3.5.
Technology assessment
3.5.1. Overview
Conventional energy technologies assessment is done in terms of available resources
their application at the point of use with the financial element being the prime
determining factor together with the tangible (financial saving from energy
replacement, efficiency and health improvements) and intangible benefits (time saved,
reduced drudgery and better lifestyle). It is also acknowledged that technologies are
influenced by gender roles where women will be benefit more from technological
innovations in energy at household level (mostly cooking and lighting) and that men
and youth will benefit more from the innovation in large scale energy technologies
(mainly processing) which they can utilize for employment and enterprise generation.
Climate change implication on the energy resources and its ability to assist in
adaptation adds another element to technology assessments, the need to move on to
the use of cleaner energy forms and the assessment of energy technologies with
respect to its implication on the environment and natural resources and adaptation
ability are of utmost importance.
Any technology needs suit the needs of the users, to serve a purpose. For our
analysis, the end uses considered are consumptive and productive uses within the
domestic, agriculture and industrial sectors. The specific uses considered are cooking,
lighting and productive use within these sectors.
Technology
ICS
End Uses in Percentage

Cooking
Lighting
90
10
IWM
100
Solar Home Systems

Biogas
Productive Use
100
100
Micro-Hydro
60
40
The table above presents the matrix for end use of selected energy forms gathered
from the different discussions held in the pilot villages in Ilam and principal
62
implementing agencies and available data. Furthermore technology assessment

needs to consider gender, social and economic differences. These parameters
influence the differences in energy needs, affordability, and access to resources and
capacity to sustain the system
In lieu of these determinants the present chapter assesses the technologies under
conventional parameters such as distribution trends of the different technologies used
in the domestic, agriculture and enterprise level as well as the thematic parameters
associated with social and climate change.
a) Conventional parameters considered are
status/trends of different technologies

end uses as practiced
comparative costs and benefits
after sales services and technology costs
b) New parameters introduced are
adaptation potential of technologies

climate proofing potential of technologies
mitigation potential and trends general emissions factors
gender and social aspects with respect to choice and need and affordability 10
c) Sustainability parameters
gender and social aspects of technology sustenance and capacity building

needs 11
10
Choice and need in one hand allow freedom and right to have cleaner energy technologies
but on the other affordability may constraint to materialize the actual choice and need. The
access to finance varies by different income groups across different caste and ethnic groups,
gender, availability of social networks and geographical isolation (basically the banking
infrastructures). Often women, poor, ethnic minority and people living in remote locations may
have limited access to and control over the financial resources which is key for utilizing cleaner
energy technologies in place. Until and unless energy technologies are pro-poor and women
friendly, they will be out of the reach of the poor, women and marginalized because of the
capacity of these people to afford the available technologies.
11
Actual users are to be trained and capacitated, for this, affirmative actions required to have
balanced participation of women and also taking in account mens issues and needs. To
enhance womens capacity, the provision of local resource persons mostly women can have
63
3.5.2. RETS Status/Trends

a) Hydro power
Ilam has good hydro power resources and a number of organisations including
DDC/DEEU, AEPC and the private sector are involved in providing various services in
the hydro sector. NCDC has been working as a regional service centre for micro
hydro development, promotion and end use promotion activities. AEPC provides
support through subsidy and RET promotion and dissemination whereas NCDC is
involved in dissemination of technology, training, after sales support and some
research and development. There are also other organizations including Gurkha
Welfare Society/KADOORIE, Sanima Hydro power and Dolakha hydro power
company for small hydro promotion.
Community members seemed very aware of hydro power technology in Ilam. There
are nine existing micro hydro projects operational in Ilam generating 551 kW of power
and serving 2,670 HHs. More micro hydro and pico hydro are being constructed in
Ilam through supports of different agency like AEPC. There are an additional 6
numbers of micro hydro projects totalling 189 kW which are under various stages of
construction and which will serve 1,633 households.
Table 23: Micro-hydro projects currently in development
Project Name
Status
KW
HH
Samaha Khola
Testing and commissioning
58
Dhuwa Khola II
Mawa Khola
Mawa Khola MHP
Fakfok Khola III MHP
Deumai Khola MHP

Under Construction
12
33
33
26
100
292
281
224
25
214
Phakphok Khola IV
Under Construction
35
300
Thawa Khola MHP
Conditional Approved
18
164
189
1,633
TOTAL
Source: ESAP
positive benefits for the advancement of both technological sustenance and gendered and
social impacts. As in most of the communities women are the principal beneficiaries (due to
absence of their fellow men). Besides it is important that energy technologies are to be women
friendly.
64
b) Solar
Solar energy is an important source of lighting in the district, as many HHs are
situated in hilly terrain there is good sunshine and there is great potential for solar
energy. In total there are 2,379 solar home systems (SHS) with a total capacity of
109,810 Wp. The involvement of AEPC in promotion of solar energy systems is
significant in Ilam. Solar technology promotion started from AEPC through NCDC
Ilam. The solar program through NCDC focuses on solar water pumps for drinking &
irrigation and solar home systems for lightning. The participation of the private sector
in solar related renewable energy technologies is very high. Lotus Energy and
Suryodaya Urja are some the companies involved in dissemination of solar energy.
Table 24: SHS installation and capacity in Ilam
Year
Number of
installations
Capacity (Wp)
Upto 2006
06/07
07/08
08/09
1,827
237
98
217
85,299
10,931
4,486
9,094
TOTAL
2,379
109,810
Source: Renewable Energy Data book, AEPC, 2009
c) Wind energy
With hilly terrain spanning much of the district there is the potential for wind turbines in
Ilam. However to date, very little effort has been made to evaluate the potential of the
wind resource in Ilam, and there are no wind turbines known to be installed in the
district at present. Further feasibility studies in regards to wind should be carried out in
the high hills of Ilam district to get accurate information on wind energy potential.
d) Biomass
Biomass is used by a large proportion of the population for cooking; cattle feed
preparation, commercial and agro processing. The field visit suggested that almost all
rural households are depending on biomass (fuel wood, agri residue, charcoal) to
meet their energy needs. More than 90% of energy required for cooking activities in
rural areas is fulfilled by biomass. Both of the traditional and modified improved cook
stoves using fuel wood were found to be in use domestic as well as commercial
purposes. Traditional three stones as well as with the tripod were used for milk boiling,
space heating and preparing cattle feed. Besides these, portable stoves fabricated
locally using tin containers with a mud lining were also being used for warming food,
water boiling and space heating.
AEPC/ESAP has major involvement in Biomass promotion, dissemination, technology
training, monitoring and evaluation. There was no significant involvement found from
private sectors and financing institutions in providing service in this sector. NCDC has
been working as a Regional Renewable Energy Service Centre in Eastern Nepal,
promoting the biomass program through its various local partner organizations. The
65
biomass technologies promoted by the centre includes biogas, solar, biomass drier,
Improved cooking stove and Metallic stove. Beside this, many private organizations
are providing services in biogas and solar through Ilam and neighbouring district
Jhapa. The field visit in Somalbung however suggested that the outreach of such
companies and promoting bodies of Ilam were not satisfactory as the community
members are not much aware where to contact if they want to promote biogas in their
homes.
In addition to channelling central subsidy, these organisations are also providing after
sales, institutional development, training of trainers, and monitoring and evaluation in
the sector. Pathivara, Siddhakali and Kangchenjunga biogas companies are some of
the very active private service providers in Biogas.
Improved cook stoves

Improved cook stoves represent a simple and cost-effective solution to improve the
efficiency of cooking stoves. Currently, many NGOs involved in Ilam for promoting
different types of ICS. Till now, there are already 12,081 ICS installed in Ilam. Figure
below summarizes the installation trend of ICS in Ilam.
Figure 16: ICS Installations trend in Ilam
2,500
2,000
1,500
1,000
500
-
2,314
2,038
2,108
2141
1836
842
655
20
10
p
Se
9
c2
00
De
De
c2
00
7
c2
00
De
De
c2
00
5
c2
00
De
c2
00
De
c2
00
De
147
Num be r Installe d
Installed ICS - Per Year
Year
Source: NCDC
Biogas
Biogas plants mix animal dung and water to produce a combustible gas known as
Gobar gas which can be used for lighting and cooking purposes. There are currently
2,819 biogas plants installed in Ilam (Source: Renewable Energy Data Book, AEPC,
2009)
66
Figure 17 : Year by Year Biogas Installations

Installed Biogas Plants - Per Year
2,819
Number Installed
3,000
2,343
2,500
2,000
1,500
1,000
500
184 194 221 256

71 151
471 548
329 399
689
1,749
1,498
1,268
1,102
829
08
/0
9
06
/0
7
04
/0
5
02
/0
3
00
/0
1
98
/9
9
96
/9
7
94
/9
5
92
/9
3
Year
Source: BSP
3.5.3. Ownership of systems by gender and different Caste/ethnicity

Of the four RETs selected for analysis, disaggregated information has been used to
present the status of gendered as well as ethnic groups ownership. The data of ICS,
Biogas and SHS till the end of the fiscal year 2010 have been used while that for IWM
the analysis is based on 2009.
Table 25 indicates the ownership of selected RETs Brahmins and Chhetris who
constitutes nearly 29 percent of the population and own 37 percent ICS, 53 percent
biogas, 38 percent SHS and IWM 40 percent. This is comparable with the ownership
by the other ethnic groups. This group owns 35 percent ICS, 33 percent SHS and 42
percent IWM and only 23 percent biogas. In the case of the Dalits who represent 7
percent of the population, on average own 2 percent of ICS, biogas and SHS but they
do not own IWM. (See Table 25)
Table 25: Ownership of RETs by different Ethnic Groups and Castes
Ethnic Groups
Brahmin and Chhetris
Rai
Newar
Other Ethnic Groups
(Tamang, Gurung, Limbu,
Lepchas)
Dalit
Percent
Population
28.7
24.4
3.8
ICS
37.1%
22.6%
3.6%
Biogas
53.1%
13.0%
8.2%
40.3
2.8
34.9%
1.6%
23.5%
2.01%
SHS
38%
22.7%
3.8%
IWM
40.0%
18.1%
32.5%
41.8%
2.8%
Source: AEPC, 2011
In case of female ownership, though they represent 49 percent of the population, they
have been found to own a very low percent of the energy technologies. At the district
level, they own only 21 percent of the ICS, 33 percent of biogas, 15 percent SHS and
4 percent of the IWM. Analysis of ownership within the ethnic groups presents the
67
female within the Rai community alone owning 38 percent ICS, 21 percent biogas 18
percent SHS however, they do not own any IWM. Brahmins and Chetri community
own 33 percent of the ICS, 20 percent biogas, 13 percent SHS and 9 percent of the
IWM. The other ethnic groups own 34 percent ICS, 22 percent biogas, 16 percent
SHS but no IWM. In the case of Dalits, they own 32 percent ICS, 19 percent biogas,
10percent SHS but no IWM.
Table 26: Ownership of RETs by Females within the different Ethnic Groups
and Castes
Female Owners
Brahmin and Chhetris
Rai
Newar
Other Ethnic Groups
Dalit
Women
Percent
Population
28.7
24.4
3.8
40.3
2.8
49%
ICS
Biogas
SHS
329 (32.7%)
959(38.4%)
45 (28.8%)
151 (33.8%)
12 (31.5%)
748 (2%)
262 (19.6%)
172 (21.1%)
26 (19.7%)
277 (22.0%)
11 (18.6)
632 (33%)
115 (12.7%)
100 (18.5%)
13 (14.1%)
119 (15.3%)
7 (10.2%)
354 (15%)
IWM
2 (9.0%)
0
0
0
0
2 (4%)
Source: AEPC, 2011
3.5.4. Costs of technology

The benefit to cost ratio of various significant technologies is presented below. The
cost benefit is computed based on discounted values. The benefits have been
computed here on the basis of savings made from the replacement of fuel wood,
kerosene, diesel and candle.
Table 27 : Cost Benefit of technologies
Technologies
Small Solar
Home
System
Micro Hydro
Project
Biogas
Capacity
Unit
Cost/unit
Benefits
Benefit
NPR/year Ratio
6000
3484
Cost
watt peak
0.4
20
kW
265000
3340
0.91
m3
48,600
10800
1.4
Source: BSP, 2009a; ESAP, 2003.
It is also necessary to compare the energy cost of devices used based on these
energy forms. Below is a comparison of the energy cost of using different devices for
cooking and lighting in Figure 18 and Figure 19.
68
Figure 18 : Costs of cooking technologies

45000.00
40000.00
Rupees
35000.00
30000.00
25000.00
Annualised Cost
20000.00
Annual Energy Cost
15000.00
Total Annual Cost
10000.00
Briquette-beehive -metal stoves
Briquette-beehive -clay stoves
Kerosene-Wick stove
Electric Clay Stove
Kerosene-pressure stove 1
Kerosene-pressue stove 2
Electric Hot Plate-double
Electric Rice Cooker
Electric Hot Plate-single
Biogas Stoves (6cm3)
LPG=Third country
LPG=Indian
Charcoal Stoves-metallic
Charcoal Stoves-clay
0.00
Improved Cook Stove
5000.00
Technology
Figure 19 : Costs of lighting technologies

22500.00
20000.00
17500.00
Rupees
15000.00
Annualised Cost
12500.00
Annual Energy Cost
10000.00
Total Annual Cost
7500.00
5000.00
2500.00
SHS Light 5Wp
Compact Fluorescent Lamp 20
Compact Fluorescent Lamp 15
Fluorescent Lamp 40
Incandescent Lamp(100 W)
Incandescent Lamp(20 W)
Biogas Lamp
Lntern Glss Container
Lntern Mtl Container
Petromax
Krsn Wick
0.00
Technology
3.5.5. Adaptation potential

Energy plays an important role in climate change mitigation and adaptation measures.
However, planned interventions are necessary to meet mitigation and adaptation
objectives. Adaptation to climate change is defined as:
Adjustments to actual or expected climatic stimuli to moderate harm or exploit
benefits (IPCC, 2001)
Ability to adapt at country, community or household level is characterized as adaptive
capacity and is related to the assets that one has access to (financial, natural
69
resource, human and social capital) and how well these are used (Denton, O'Neill et
al., 2008). This section explores the adaptation potentials of Ilam district in the context
of the different technologies. The adaptation in this study is being analysed for both in
terms of being spontaneous or planned12 . In doing so, it also realises that:
Adapting to climate change depends on adjustments and changes at every

level - from community-based to national and international.
The capacity to adapt will vary significantly from community to community,

between genders and in particular to the level of development.
The range of practices that can be used to adapt to climate change is diverse, and
includes changes in behaviour, structural changes, policy based responses,
technological responses or managerial responses.
Within the above elements, the adaptation capacity of Ilam has been assessed to
determine the status within a mixed culture as found existing in the pilot area. Overall
adaptive capacity of the district was found to be impressive with available energy
opportunities and potential income of families to afford them. In general terms, the
adoption of MHP, IWM, biogas, SHS and ICS can in the present context be seen as
measures of reducing the use of resources such as fuel wood and kerosene, which
have adverse implications on the environment and which would otherwise promulgate
climate change and helping in the mitigation process. These technologies have
provided livelihood enhancement opportunities in terms of reduced drudgery and
improved income generation which help in climbing up the energy poverty ladder and
thereby adapt to climate change.
From the gender perspective, time saved and its use for social networking and
involvement in community activities help in exchanging information and gaining
knowledge regarding risks, disasters and the successes and failures of encountering
them. In terms of different ethnic and marginalised groups, their settlement away from
the rest of the community impairs their access to information and due to very little data
it is not possible to say much about their adaptive potential.
Finally, adaptation potential has been drawn from stakeholders decisions according
to the matrix as outlined in the DCEP guideline considering relevance to different
12
Adaptability refers to the degree to which adjustments are possible in practices, processes,
or structures of systems to projected or actual changes of climate. Adaptation can be
spontaneous or planned, and can be carried out in response to or in anticipation of changes in
conditions (IPCC, 1996).
70
questions from different perspectives. National Adaptation Programme of Action

(NAPA) criteria were also utilized as reference for this purpose13.
In light of the future uncertainty of climate change impacts and persisting high
variability, specific adaptation potential of energy resources cannot be generalised.
Therefore, agencies will have to identify site specific interventions based on local
perspectives and adaptation potential. However, specific activities exist such as
improvement on agricultural practices to conservation friendly technologies such as
Sloping Agriculture Land use Technology, promotion of drought tolerant crops and
varieties, effective forest management with focus on fire prevention, multi use of water
resources, and promotion of efficient energy devices and hazard mitigation measures
that will enhance livelihood opportunities and diversification. A range of support
activities are necessary such as awareness and capacity building of communities and
institutions to enable coping and adaptive capacities of resources, implementing
institutions and energy users.
While carrying out KII in sample VDC, based on changes they witnessed on
availability of different resources, the community ranked fossil fuel based energy
resources as least vulnerable to climate change while the water resource were ranked
as most vulnerable to climate change. The same ranking was used to estimate the
share of different technologies while building different energy scenarios in later
sessions.
Table 28: Ranking of technologies based on vulnerability
Rank
Vulnerability order of technologies (1 least vulnerable)
1
2
3
4
5
6
LPG stoves
Kerosene
Biogas
ICS
Traditional Stoves
Electricity from Hydropower
Source: FGD 2010 & district planning workshop 2011
13
NAPA document can be downloaded from http://www.napanepal.gov.np/
71
3.5.6. Energy technology vulnerability due to climate change

According to Nepals NAPA to Climate Change report, Ilam district falls under the
category of very low vulnerable district on flood, drought and GLOF and low on land
slide. On the overall climate change vulnerability index of Nepal Ilams vulnerability
stands very low.
Water mills in Ilam are less common compared to other districts. Ilam has a very
impressive result in micro hydro and pico hydro. Hydrological shift in rivers could
result in substantial negative impact on operation of these facilities. At a given site,
hydropower production is defined by the river flow, so changes in flow due to climate
change will alter the energy potential. Micro-hydro systems are vulnerable to
decreasing level of water flows particularly in the dry season, as well as hazards like
landslides although floods are not common in the district. More importantly, as most
hydropower schemes are designed for a particular river flow distribution, plant
operation will become non-optimal under altered flow conditions (Harrison and
Whittington, 2002). Therefore hydro systems exposure to vulnerability is increasing.
Forest fires resulting from long spell of drought in the winter result in further scarcity of
fuel wood, however no such vulnerability is apparent for improved cook stoves which
use less quantity of fuel wood and can be used for burning any type of biomass.
Though renewable energy technologies like SHS are the least vulnerable to climate
changes they are not free from it. Efficiency of solar technologies is also affected by
increase in the number of cloudy days and they are at high risk to extreme weather
events like hailstorms.
Through the planning workshop exercise, in Ilam, the technologies and their
vulnerabilities were further verified. The findings are summarised in the table below.
Though the end use applications of these technologies are different from each other, it
does highlight local perceptions.
3.5.7. Climate proofing technologies

Whilst renewable energy has the potential to contribute to mitigating GHGs. they are
also potentially vulnerable to the impacts of climate change. So this study has
attempted to identify ways of reducing the vulnerability of RETs through climate
proofing.
Well designed hydro systems could be another option. For medium or large hydro
power plants, higher variability of water resources can be addressed by introducing
storage system to store or discharge water as when required. Similarly, hybrid system
can be also good options if resources of any particular technology are vulnerable to
climate change. For example, if existing micro hydro produces less power due to
decrease in water resources then other renewable energy like wind energy or solar
energy could be integrated with micro hydro to compensate for the decreased amount
of power. Likewise, well managed forest plans can also help to secure fuel wood
supply. Biogas could be good option for meeting cooking energy needs, but requires
promoting livestock as a lucrative livelihood option.
72
3.5.8. Mitigation potential and trends general emissions factors

In the context of climate change, mitigation refers to a human intervention to reduce
the "sources" of greenhouse gases or enhance the "sinks" to remove carbon dioxide
from the atmosphere. Climate change mitigation in the energy sector includes
measures that prevent greenhouse gas emissions such as sustainable energy
management and using biomass energy and other alternative energy sources. Other
measures increase carbon storage by avoiding deforestation, encouraging
afforestation, offset measures including planting trees to capture carbon dioxide.
However in our analysis the focus is on reducing carbon emission alone. Analysis has
been carried out for selected RETs in carbon emission without the RETs and the
costs of carbon abatement for each of the technologies. The result is presented
below.
Table 29 : Mitigation Potential of various technologies

Technology
Mini and Micro Hydro
Improved Water Mill
Household Improved Cooking Stove

Household Biogas Plant
Briquette/ Charcoal
Solar Home System
Small Scale Wind Power System
Bio-diesel
Mitigation Potential explanation

Significant reduction in emission; Replaces kerosene
lamp, diesel mill
Significant reduction in emission; Replaces diesel mill;
Replaces kerosene lamp if electricity generation unit
added
Reduction in GHG emission; protection of the forest
resources and environment
Reduction in GHG emission; saving of fuel wood,
kerosene use
Replaces fuel wood and diesel; utilizes biomass
residues
Significant reduction in emission; replaces diesel or gas
motor
Significant reduction in emission; consumes no fuel
Replaces petro-diesel; reduction in GHG emission
The comparison is also carried out based on the cost of abating CO2 through selected
technologies. Economic cost calculation is the basis here for GHG abatement
assessment. Given the limitations in data it will not be possible to employ full
economic costs in the analysis. Life cycle cost (LCC) analysis has been carried out for
four potential technologies in order to find out the abatement cost which has been
used as the basis for prioritization. LCC is the total discounted cash flow for an
investment during its economic life.
The following simple analysis has been done in order to prioritize different renewable
energy technologies taking prevailing values in the district to assess required costs to
abate GHG emissions for different incremental investments for each technology.
73
The GHG for selected technologies have been adapted from the project development
document at the country level. The GHG values used and the basis of calculation are
presented in table below.
850.00
4.88 per
6 m3
system
38
7.5%
38
7.50%
38
Emission Factor
2
3
(tonCO equivalent/6 m
plant/year)
Residual value (RV) of

micro-hydro at the end of
project lifetime by initial
investment,
reduction in diesel
consumption for milling in
litres/year
Reduction in dry cell

batteries consumption:
pairs/year
Fuel wood Reduction in
265,000
Kerosene reduction in
litres/year
Repair Maintenance as
percentage of initial cost
4,045
kg/year
Investment cost
In NPR
2.50%
Technology
Biogas
3
6m
48,600
Solar40Micro
Wp Hydro
SHS per kW
Table 30: Costs and Emission factors of selected technologies14
24
34
1.94 per
kW
15%
0.076
per Wp
Source: PDD of the various projects and IPCC
30
10%
Based on these data the life cycle cost and the respective CO2 analysis have been
carried out below. These have been worked out based on the emission values as per
IPCCC and the work done in the country; some technologies are already in the CDM
market while others are various stages of validation and verification.
Table 31 : Life Cycle Cost and the Respective CO2 Analysis
CO2
CO2
Cost Before
reduction reduction
per year in a
lifetime
Biogas 6m3 4.88
98
22161
Micro Hydro 1.94
39
46075
1kw
Solar 5 Wp 0.076
2
11749
Cost After Increased incremental

Cost
abatement
cost
58985
339423
36824
293348
377
7561
41151
29402
19344
14
Note: Emission factor for kerosene kgCO2/liter 2.54 (IPCC, 1996); Emission factor for diesel
kgCO2/kWh 0.9 (CDM guideline for small scale projects)
74
3.6.
Institutional assessment
3.6.1. Overview
This section involves mapping of stakeholders and identifying capacity needs in order
to implement the DCEP in Ilam. Identifying the major stakeholders in the district is one
of the most important tools to create a detailed implementation plan. This section will
identify all potential actors that could be involved in implementing a DCEP in Ilam
district.
Overall the institutional assessment has covered three main components:
stakeholder identification and roles in renewable energy sector

capacity assessment of various organisations
relationships amongst various organisations working in the renewable energy
sector
The institutional assessment was carried out using the coverage matrix, SWOT
analysis and actor constellation mapping.
3.6.2. Resource availability and local capability

ICS: Fabricating ICS requires materials such as clay which is locally available in the
potential users yard itself. These ICS need moulds which are generally not available
in the market. Thus the users are dependent on trained promoters (technicians). This
technical support is provided locally by trained men and women. So far, the
technology has been well accepted by the community, especially those within the
lower economy group.
Biogas: The biogas system requires skilled manpower for its construction. Under the
supervision of skilled manpower, the system can be constructed by local masons
available in Fikkal as well as in Jhapa. In terms of construction material, though locally
available stones can replace the use of bricks, the availability and cost of cement has
often been a cause of concern. The required feedstock for generation of biogas
requires animal dung which can be found in houses with cattle. The minimum
requirement is one large cattle, so it can be feasible within most farm-houses in the
hilly areas of Ilam
Briquettes: Bee-hive briquettes are commonly produced from forest wastes such as
bun-Mara, this plant is widely available in and around the forest and more of a
problem for the forest. Briquette production helps turn this problem plant into
economic energy product for use at the household as well as commercial level. With a
minimum of investment for the mould, and using waste material, forest waste and
red-clay, this technology is seen as a source of income generation by women groups.
However, due unavailability of raw materials in continuous basis, high labour cost,
high transportation cost, per unit useful energy derived from briquette is higher than
other technology.
75
Micro hydro: The design, fabrication and installation of micro hydro systems require
highly skilled human resources. It has been an undertaking of engineering companies.
Of the different components of the system, turbines and penstock pipes require
appropriate workshops; these are manufactured only in selected areas of the country.
The available resources can fully cater to the needs of systems for mechanical energy
alone. However, for electrification, the necessary generators need to be imported.
However, it is to be acknowledged that the system is only feasible in areas that
harbour natural streams. The designing of the capacity is fully site specific.
IWM: Based on traditionally used water-mills, the IWM is not as complicated a
technology as the MHP. This can easily be designed, fabricated and installed locally
by a trained technicians , which needs to be encouraged in Ilam, presently these are
bought from other districts (Morang) (based on interaction with CRT, principal
Implementing Agency for IWM). However, as in the case of MMHP, the metallic
turbine is fabricated only in selected areas of the country as it requires well equipped
workshop for fabrication.
Solar PV: Currently all solar PV panels are imported. Other components such as the
charge controllers are manufactured in the country itself. Its installation can easily be
carried out by locally trained electrical technicians. A tabulation of the resources and
local capability is presented below:
Table 32: Resource and Local Capability
Technology
Local Resources
Local Capacity
Access to Finance
Micro Hydro
Good potential to generate

power from river and
tributaries.
Possibility to generate power
at different places from same
rivers like Mai Kholo,
Phakphok Khola, Puwa
Khola.
System service
providers, training
for users available;
MFI and bank loans

Subsidy available from
government
IWM
Small streams are the main

source for operating IWM
Presently Morang
and Makawanpur
provide the services
which has
implications on the
cost of the systems
MFI and Bank Loan

government
Biogas
More than 12000 HHs with

land and livestock required
to generate biogas in Ilam
System constructors,
service providers and
training available for
users
MFI and bank loans

government
Solar
Good sunshine available

with estimated GHI of 5.1
2
kWh/m /day
Service providers
available
MFI and bank loans

Subsidy provided by
government
ICS
Local clay can be used to

construct ICS
Service providers
available
Self financing
76
3.6.3. Stakeholder identification and roles

The coverage matrix tool was used to identify the involvement of various stakeholders
including government, private sectors, financing institutions, NGOs in providing
various services with regards to promotion of energy services in the Ilam district. The
detailed matrix is shown in the table below. It is observed that most of renewable
energy promotion activities were carried out with an active involvement of DDC/DEEU
and NGOs at district level and AEPC at central level. In Ilam, INGOs like KADOORIE,
Gurkha Welfare Fund (GWF) are also promoting rural energy technology with their
own technical and financial supports. Table 33, an activity matrix shows high (H),
medium (M) and low (L) level of involvement in renewable energy activities in Ilam.
The table below only tries to shows the level of involvement of different stakeholders
in broader aspect. The detail and specific engagements of different stakeholders
related to DCEP will be discussed in detailed in the following sections.
77
Table 33:The Activity coverage Matrix of various Institutions in Ilam

S.
N.
Services
DDC/
DEEU
Government
AEPC
District
Line
Agencies
VDC/
Municipality
NGO
Banks
&
MFI
INGO
&
Donors
Subsidy Policy
Financing
Awareness
Energy Planning
Dissemination
Technology Use
Trainings
Technical
Training
Afters Sales
services
Institutional
Development
Training of
Trainers
10
R&D
11
Monitoring and
Evaluation
(quality
assurance)
12
Sustainable
management of
RET resources
13
Strategy on CC
adaptation
14
Hazard
mitigation
(resources)
15
Livelihood
support
programmes
M
M
M
V
L
L
L
L
Private
Sector
M
L
L
M
Source: Based on interview carried out at DDC Ilam
3.6.4. Stakeholder relationship

The actor constellation mapping tool was used to identify relationship amongst various
donors, government line agencies, NGOs, INGOs, private sector, finance institutions
and local organisations in terms of providing capacity development support,
coordination and participation, funding support and subcontracting. The details of the
actor constellation map are provided at the end of this section.
78
Various donors like NORAD, DGIS, and DANIDA are found to be involved in the
district. They provide funds to AEPC which in turn runs its program through district
energy and environment unit of DDC Ilam, regional service centre (NCDC) and other
service providers. AEPC and national NGOs like BSP are involved in the district in
providing capacity development services to other local NGO, private sector and RET
companies.
There seems to be lack of thorough coordination and joint participation amongst
district line agencies including the District Agriculture Development Office, District
Irrigation Office and District Forest Office as well as other organisations involved in
facilitating the renewable energy sector. The coordination amongst organisations
seems to be limited to within particular sectors and cross sectoral coordination doesnt
stand out.
3.6.5. Capacity and potential assessment

Capacity assessment of key organisations was carried out using SWOT analysis and
interviews. The table below details the SWOT analysis of non specific organizations
(expect DEEU) in Ilam to execute plans like DCEP.
Organisations Strength
Opportunities
Weakness
Threats
DEEU
Clear Mandate
provided;
Good Network at
district level
INGOs/Donors &
other stakeholders
are convinced on
the need of energy
& climate issues
Lack of resource; No full

authority (depends on AEPC);
no connection in subsidy
monitoring; lack of adequate
staff; lack of guidelines &
procedures
-Internalization
of DEEU by
DDC (DEEU
staff)
Non
Commitment on
Government MDGs and other
CC mitigation &
adaptation;
Bound by
international
commitment to get
funding (like CO2
saving)
Lack of resources; no long

term vision & commitment;
Lack of localized MDG goals
Frequent
leadership
changes
District Line
Agencies
Basket fund for

different sectors
(AID effectiveness;
harmonization)
Lack of capacity building of

staff (training, exposure)
No Compulsion for budget
allocation
Inter ministerial coordination
gap
Political
instability
(transition
period)
Act, policies,
mandate available
to work on energy
and related field
Local
Familiar with local Increasing concern
Government conditions and
on energy and
needs
climate change
issues.
Low priority to RETs; no long No elected body

term plan;
Lack of resources & human
Restructuring of
resources
state (uncertain)
Network at
grassroots level
Banks
Capable to
mobilize fund;
Adequate in
number
- RETs in high
Low priority for energy
demand (new
projects; no compulsion to
investment
invest on RETs (no policy)
opportunities);
Foreign investment
79
Organisations Strength
Opportunities
Weakness
Threats
Private
Sector
Flexibility;
competency
Regarded as a
Low risk baring capacity; low Unfair
development
R&D investment; no presence competition;
partner by the Govt. at grass root level
priority differs in
govt. policies;
conflict;
INGOs &
donors
Resourceful;
International
experience;
Basket funding (can

contribute to
International
commitment on
climate change,
MDGs, International
Conventions
Lack of coordination; Cant

internalize Paris declaration;
not localized (not internalizing
local context)
Priority country
& sector may be
changed
Preset
Conditions
Users
Searching for
utility
maximization
(ready to invest)
- Supported by
policy; right based
approach civil
engagement
(benefit sharing)
Lack of access to adequate

information
Lack of skills and resources
Conflict
(transition
phase); lack of
elected body
(lack of
accountable
agency)
FECOFUN & Wider network;

Networks
Flexibility; Good
mobilization
capacity
RETs in high
demand
which is supported
by policies
Lack of
High politics
accountability/responsiveness; (Political
No compulsion to investment motivation);
on RETs;
Conflict of
interest with
national policies
(forest)
MFI &
Flexible fund;
RETs in high
cooperatives presence at grass- demand
root level;
Resource
adequate in
Mobilization
number
possibilities
Lack of adequate policies to

invest on energy projects;
Dependency on
external fund.
Insecure ROI
Security of fund
(investment)
NGOs
Lack of resources, Lack of

clear strategy:
Donor driven
projects
Having skilled
manpower;
flexibility;
RETs & CC
mitigation in high
demand; Govt has
regarded as a dev.
linkages/relationsh Partner; Large in
ip with community; number;
familiar with local
context
Lack of adequate knowledge

on CC issues; not adequate
number active in energy and
climate issues
Source: Based on stakeholders interaction in DDC Ilam, February, 2011

Furthermore, the brief description of major organisations involved in the energy sector
in Ilam is discussed below:
a) DDC, Environment and Energy Unit (DEEU)

The DDC environment and energy unit (DEEU) plans and implement rural energy
programmes in Ilam under technical and financial supports from APEC and DDC of
Ilam. Most of funds required to implement the rural energy programme comes from
AEPC, while DDC also allocates significant funds to disseminate rural energy
activities including biogas and ICS promotion and awareness activities. The DDC of
Ilam seemed to fully recognize the DEEU which a required condition for
80
implementation of plans like DCEP. Similarly, the DEEU also seemed to have a good
relationship with non government organization functional in the district. Hence, DEEU
have good opportunity to mobilize qualified NGOs such as NCDC. Currently, the
DEEU of Ilam has 2 fulltime staffs which is not sufficient in term of numbers and
knowledge they acquire. Human resource in the DEEU is not currently sufficient to
deliver the DCEP as implementation requires increase in activities including:
monitoring and evaluation, subsidy disbursement and promotion and awareness
activities. Therefore, the current human resources are unlikely to handle such an
increase in activities.
b) District Forest Office (DFO)

DFO is still recognized as important institution in district while dealing with energy and
environment concerns. Historically, DFO is heavily engaged in dissemination of
ceramic ICS. However, currently, the DFO does not carry out any activities related to
RETs promotion in the district. However, the DFO has opportunity to engage in the
RETs such that their objective to sustainable forest management and biodiversity
protection can be met.
Currently not adequately staffed with little capacity to adapt to future increases in
demand. Alongside a shortage of skilled staff there is also insufficient premises and
equipment available. The DFO do have links to the wider district, with a good public
image and links with stakeholders and policy makers. The DFO operates through its
various range posts and mostly concentrate on forest management and control of illicit
tree felling and trade.
C) Ghatta Owner Association (GOA) Ilam

GOA distributes IWM in the Ilam district aiming at improvement of socio-economic
conditions of ghatta owners and the wider community in the district through the
promotion of RETs. They currently employ 2 skilled members of staff which seems
sufficient for their present levels of output. Similarly, current premises and access to
information are also adequate. The human resources are capable of dealing with
increasing demand, however financial and physical resources seem lacking.
Monitoring systems are not fully in place to ensure quality of the supplied IWMs. They
also lack adequate relationships with regional and national policy makers and other
relevant stakeholders.
The issue of social inclusion was found to be lacking within the association, No
particular attention is paid to minority groups or a specific social inclusion policy.
d) FECOFUN
Although FECOFUN do not deal directly with RETs, they operate in the field of climate
change, with a core strategy to conserve Nepals forests to reduce landslides and
desertification. The organization does not have adequate skills to deal with issues in
the district, although premises and access to information are present. There are no
systems in place to measure the satisfaction of the operations of FECOFUN locally
81
although they have significant contact with policy makers and external stakeholders.
Gender and social issues are said dealt with adequately by the organisation, the
capacity to pick up and deal with issues, and a specific gender policy of the
organization in place. They deal less well with social inclusion issues, and it was not
perceived that the staffing policy deals sufficiently with the issue. FECOFUN do target
minority groups in their projects, and they have a specific social inclusion policy.
e) Namsaling Community Development Center (NCDC):

NCDC is working as a Regional Renewable Energy Service Center (RRESC) of
Alternative Energy Promotion Center/Energy Sector Assistance Program
(AEPC/ESAP) since January 2001. It has been facilitating the promotion and
dissemination of Micro/Pico hydro projects in seven hilly districts of eastern Nepal. It
has a vital role of facilitating the users/developers at all stages of Micro/Pico hydro
development. Furthermore, it plays an important role in the establishment of end-uses
from Micro Hydro Projects. The centre is well guided by its mission, vision and has a
clear vision on gender and social inclusion. At present they have 41 paid staff and
local partner organizations in 14 districts in Eastern Nepal. As per the current
situation, NCDC seems competitive which can support DDC/DEEU to implement
plans like DCEP in Ilam.
F) Others
Sungava Bikash Sanstha: The organization is mainly engaged in rural water supply
and sanitation funded by RWSSFDB. The organization also works on Trail Bridge
(suspension) in remote parts of the Ilam district supported by DDC, RRRSDP and
TBSU. The organization also worked for promotion of IWM in Ilam district supported
by CRT/N. Gender and social issues are dealt with adequately by the organisation,
with equal treatment from management, dealing with issues, and a specific gender
policy in place. Hence, it can also contribute to implement the DCEP plan.
Ilam Cooperation Council: The organization is mainly engaged in rural water supply
and sanitation funded by RWSSFDB. It has also been working in biodiversity
conservation in Ilam district. Gender and social issues are dealt with adequately by
the organisation, with equal treatment from management, the capacity to pick up and
deal with issues, and has own organizational gender policy.
Mahila Srijana Samaj: The organization basically works on women group
strengthening and capacity building in various VDCs in Ilam districts. The main
objective of the organization is the empowerment of women in remote areas of the
district. Most of the members of the organization are female members.
Shree High Altitude Herb Production and Conservation Group: This organization
is involved in promotion and conservation of valuable NTFPs in Ilam district by
providing technical knowledge and subsidy to different farmers groups. The
organization is working with support from TMI and other organizations. Gender and
social issues are dealt with adequately by the organisation. This group can be
supportive to the DCEP through conservation of forest resources. Clearance of forests
82
for cultivation of non-wood forest products can have adverse implication in energy
sector on which the group needs to be oriented.
Figure 20 : Stakeholders on the Ilam DCEP
83
4. District energy scenario development / demand

projection
4.1.
Introduction
Scenarios are self-consistent storylines which describe how an energy system might
evolve over time in a particular socio-economic setting and under a particular set of
policy conditions. A scenario approach helps make assumptions explicit. At its best,
scenario analysis can stimulate users to consider possibilities they had not conceived
of before. The best scenarios highlight the possibility of structural changes. (Source:
Craig P. et al, 2002). For this study also, the study had adapted three different
scenarios namely Business As Usual (BAU), Medium Adaptation Scenario and
Climate Resilient Scenario (CSR) with different sets of underlying assumptions and
calculation to offer different choices, aware of different consequences and required
intervention level to the district implementers of Ilam. In the following section, the
detail about different scenarios will be explained.
Base-year residential energy consumption data was adapted from the EPS. This
provides detailed energy consumption data for all major energy activities. Where
available, up to date data was added to reflect the current situation, this includes
installation rates of RETs which were sourced from the relevant implementing
organisations (AEPC/ESAP, BSP etc). Industrial and commercial values were sourced
from Wood Energy Planning Report. As per the source data, data was split into urban
and rural populations, a yearly population growth rate of 1.89 % was used based upon
CBS projection of Ilam population, and an urbanisation rate was used as per the EPS
as follows.
Year
Rural HH %
Urban HH%
2010
92.6
7.4
2015
2020
90.5
87.8
9.5
12.2
To facilitate comparisons among the three scenarios (BAU,MAS, CRS) all of them
share the same demographic assumption in which population growth rate is the same.
The energy efficiencies of technologies are also assumed same across the scenarios
however the uptake and penetrations of such technologies will vary.
4.2.
Software Implementation: Long Range Energy Alternative

Planning (LEAP)
For analysis of energy scenarios, the Long range Energy Alternatives Planning
System (LEAP) developed by Stockholm Environment Institute (SEI) is applied. LEAP
is a widely-used software tool for energy policy analysis and climate change mitigation
assessment. LEAP has been adopted by hundreds of organizations in more than 150
84
countries worldwide. Its users include government agencies, academics, nongovernmental organizations, consulting companies, and energy utilities. It has been
used at many different scales ranging from cities and states to national, regional and
global applications.
LEAP is fast becoming the de facto standard for countries undertaking integrated
resource planning and greenhouse gas mitigation assessments, especially in the
developing world. The United Nations recently announced that more than 85
countries have chosen to use LEAP as part of their commitment to report to the U.N.
Framework
Convention
on
Climate
Change
(UNFCCC).
(Source:
http://www.energycommunity.org/default.asp?action=47 accessed on May 2011). See
annex 6 for more detail information on LEAP.
4.3.
Business as Usual Scenario (BAU)
4.3.1. Overview
The Business as Usual Scenario (BAU) is based on current trends, assuming
variables such as GDP, population growth intervention rates etc continue at their
current trend. This scenario is gender neutral and does not consider GSI issues
beyond existing interventions.
The energy consumption shall grow as per the current trend and shall be met by an
energy mix of renewable and clean energy as well as fossil fuels and biomass. Hence,
an assumption is made in BAU that the continuation of present trend on increasing
use of high efficiency devices will replace traditional and inefficient devices. Similarly,
the calculation also assumes that the level of energy intensity will not change due to
likely increase or decrease of economic activities of peoples in Ilam as the calculation
of energy demand is based on minimum energy required by people for different
activities like cooking, lighting, space heating activities.

The total energy demand of Ilam in BAU is found to be 3.57 million GJ in the base
year 2010 which is expected to increase by 3% (3.68 million GJ) at the end year 2020.
Out of total energy demand, the numbers suggested that the residential energy
demand forms the major share of energy demand in base year 2010 (82.1%) and will
remain the dominant sector in the year 2020 as well. After the residential sector, the
industrial sector forms a major share (17.8%) which is expected to increase in the
year 2020 with an estimated share of 33%. The commercial sector comprises of
negligible share on total energy demand of Ilam in 2010 and is expected to remain the
lowest till 2020.
Table below summarises the final energy demand in the residential industrial and
commercial sectors in Ilam for the target year range.
85
Table 34 Sectoral energy demand in BAU (in 000 GJ)

Year Residential Industrial Commercial Total
2010
2,627
948
2.1
3,577
2011
2,579
1,010
2.29
3,591
2012
2,529
1,071
2.47
3,603
2013
2,478
1,133
2.65
3,614
2014
2,425
1,194
2.84
3,622
2015
2,370
1,256
3.03
3,629
2016
2,298
1,337
3.21
3,639
2017
2,224
1,419
3.43
3,646
2018
2,148
1,500
3.67
3,652
2019
2,070
1,582
3.94
3,656
2020
1,990
1,663
4.24
3,658
From table above, it can be seen that the total energy demand of Ilam in BAU will
increase by 2.25% in 2020 compared to 2010. The slow growth of total energy
demand of Ilam is due to decrease in residential energy demand by 24% in 2020
compared to 2010. The decrease is mainly due to current trend in shift towards
efficient technologies like ICS, biogas stoves in cooking in residential sector15.
However, the energy demand of industrial and commercial sector is expected to grow
in BAU.
15
If households adapt efficient energy devices and do not add more devices, then it is very
likely that the energy demand of households will decrease. But in real life, such practices are
difficult to witness as people goes on adding new devices and their activity will also keep
expanding. However, the model adapted for this study does not considered such additions of
new types of devices .
86
Figure 21: Total Energy Demand of Ilam in BAU
Similarly, while disaggregating the residential energy demand of Ilam according to

rural and urban areas, it is not surprising to see the rural area account for 95% of total
energy consumed in the residential sector due to a large of the population living in
rural areas (around 12 times more than urban area). Hence, the study has put more
focus on rural residential energy demand for DCEP process. The table below
summarizes in more detail figures on residential (rural and urban) energy demand.
Table 35: Residential Energy demand in BAU
Year
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Urban
(000 GJ)
2,497
2,431
2,363
2,293
2,219
2,144
2,074
2,002
1,928
1,851
1,772
Rural
(000 GJ)
130
139
149
159
169
180
193
207
221
235
250
Total Residential Energy

Demand (000 GJ)
2,627
2,571
2,512
2,452
2,389
2,323
2,267
2,209
2,148
2,086
2,022
From above table, we can see that the total final energy demand in rural area is
decreasing whilst in urban area, it is increasing. Decrease in total energy demand in
rural area is due to fact that the effect of high penetration of high efficiency devices
(decrease in the total energy demand) is more dominant than a factor such as
population growth which will cause an increae in total energy demand of the cooking
sector and contributes about 97% share of total rural energy demand of Ilam. The
87
Figure 22 explains more better how the share of low efficient technologies will be
replaced by high efficiency devices.
Figure 22: Changing activity level of different cooking devices used in rural area
The table below summarizes in more deatails on how the major devices used in rural
cooking will change over time in the BAU scenario.
Table 36: Change of share of cooking devices in base year and end year
(Rural Cooking)
Types of Cooking Devices
Fuel wood Mud Stoves
Fuel wood Iron Tripod Stoves
Fuel wood Three Stone Stoves
Agri residue stoves
Improved Fuel wood Stoves
Biogas Stoves
LPG Stoves
2010
43
15.6
10.4
5.1
9.42
3.92
8
Share (%)
2020
18.6
7
5
0.4
35
8
21.42
From Table 36, we can see that the share of traditional cook stoves (fuel wood, mud
stoves,iron tripod stoves and three stone stoves) decreases significantly while high
efficiency technologies like LPG, ICS is increasing. This is the main reason of decrese
in overall energy demand of Ilam in BAU.

The energy supply of Ilam in BAU suggested two distinct compositions of fuel types to
meet the energy demand. An energy supply for the residential sector which forms a
major share of energy consumption in Ilam is being supplied by fuel wood in BAU as
88
shown in the Figure 23. It indicates that the pressure on local forest resource is
immense which and is further increased by factors like replacement of forest
resources by tea plantation, illegal trafficking of forest resource to neighbouring
districts including India (Source: FDG, 2011).
Figure 23: Energy Supply in BAU for residential sector
Figure 24: Energy Supply in industrial sector
Figure 25: Energy Supply in

commercial sector
The industrial energy demand will be meet by decent composition of fuel wood and
electricity in BAU. Apart from these, the coal will also supply a fair amount of energy
to meet the energy demand of the industrial sector, especially tea industries.
It is expected that the commercial sector will witness a major shift in fuel fix in BAU.
The field visit suggested that the commercial sectors including hotels, restaurants and
service sectors are fairly capable of adapting new and modern technologies such as
refrigerators, televisions, cooling fans which require complete change or additions of
89
new forms of energy sources like electricity. Hence, the demand of the commercial
sector is expected to be fulfilled by technologies like LPG and electricity which can be
used for a range of activities. The table below summarizes the share of different
energy carriers to supply energy needs in BAU.
Table 37: Share of different energy carriers in meeting energy needs of BAU
(rural cooking)
Energy Carriers
Wood
Agri Residue Stoves
Charcoal Stoves
Biogas Stoves
LPG Stoves
Kerosene
Electricity
2010
87.14%
8.91%
0.04%
1.09%
2.05%
0.67%
0.10%
2015
86.74%
5.88%
0.03%
2.03%
5.05%
0.05%
0.21%
2020
85.88%
1.11%
0.04%
3.63%
8.97%
0.04%
0.32%
From the table above, we can see that fuel wood will supply major source of required
energy in BAU. This is mainly due to the reason that the largest energy consuming
sector i.e. rural cooking is not likely to witness major shift in fuel for cooking even
though it is highly likely to shift from traditional less efficient cook stove to higher
efficiency cook stoves which uses same fuel.
4.4.
Medium Adaptation Scenario (MAS)
4.4.1. Overview
The Medium Adaptation Scenario (MAS) will take into account the development of
livelihoods by providing inclusive access to energy sources. Although it does not
embrace full-climate resilience it will provide some adaptive measures to potential
vulnerabilities of resources and technologies. Hence this scenario will advocate a
decent share of different interventions considering climatic factors, GSI, cost and
community preferences on different technologies.
The energy demand in MAS is supposed to be met by an energy mix of renewable
and clean energy as well as fossil fuels and biomass. Biomass shall be used in more
efficient way by higher use of efficient cooking devices compared to BAU. Moving
away from fossil fuel is deemed important because of its negative effect on
environment, dependence on foreign country. However, the usage of LPG is assumed
similar to BAU due to high community preferences. There shall be some investment in
awareness activities on efficient use of energy, resources safeguarding and resource
management. Supply side technology shall be also more efficient due to introduction
of more efficient energy conversion devices.
The energy consumption growth rate or decrease rate in MAS is the function of level
of penetration of efficient technologies. The factors which affect intervention methods
in MAS cannot be generalize as each factor will interact specifically and will act
differently in an ability of community members to utilize required energy in sustainable
ways. Hence, field study was carried out and community members and district level
90
stake holders were asked to prioritise DCEP issues including consideration of climate
change and GSI based on importance within the district. The outcomes of the
consultation have been summarized in the Table 38.
Table 38: of different parameters considered for DCEP study in MAS
Basis
Potential to
Adaptation
Potential to
Mitigation
Gender
friendly in use
Promotes
Social
inclusion
Contributes to
Poverty
Reduction
Cost for
installation and
running
Weightage
(%)
GSI
Vulnerability
to CC Impacts
Technology
Climate Change
Total
%
15
13.3
13.3
10.0
8.33
17.6
22.3
100
Source: Outcomes from district planning Workshop, Ilam, 2011
Similarly ranking of different technologies used for cooking based on same

parameters is shown is Table 39 below
Table 39: Ranking of technology on the basis of parameters considered for
DCEP study in MAS
Technology
Types
Less
Vulnerable
to climate
Help in
Adaptation
Help in
Mitigation
User
Friendly
Promote
Social
Inclusion
Contribute
to poverty
reduction
Cost
Traditional
Stove
ICS
Biogas
Kerosene
LPG
Electricity
3
4
5
6
1
2
5
3
4
6
4
5
1
2
6
2
4
3
5
6
5
3
1
2
6
4
6
5
5
1
2
2
4
6
1
Source: FGD, Ilam, 2011
Note: 1 refers to least positive response while 6 refers to highest positive response
The above ranking cannot be used as the final prioritisation of issues, hence further
calculation were undertaken to transform the points given to each technology types
according to the weight given to each parameter governing an intervention level of
MAS. Table 40 below shows the result of ranking of technologies while considering
the weightage given to each parameter for framing MAS scenario.
91
Types
Less
Vulnerability
to climate
Help in
Adaptation
Help in
Mitigation
User
Friendly
Promote
Social
Inclusion
Contribute
to poverty
reduction
Cost
Total
Ranking
Share
Table 40: Ranking and estimation of different technologies in MAS
Traditional
Stove
ICS
Biogas
Kerosene
LPG
Electricity
Total
2.2
6.7
1.7
5.6
8.8
11.2
41.1
12
7.5
10
12.5
15
2.5
4.4
11.1
6.7
8.9
13.3
8.9
11.1
2.2
4.4
13.3
3.3
6.7
5.0
8.3
10.0
6.9
4.2
1.4
2.8
8.3
11.8
14.7
2.9
5.9
17.7
22.3
18.6
7.4
14.9
3.7
65.2
76.4
38.2
60.2
68.9
350
3
1
6
4
2
19
22
11
17
20
100
The technology with highest ranking will be prioritised while the lowest ranking
technology will get least priority in MAS scenario. The technologies should total 100%
and be broken down into percentage of each technology based on prioritisation. From
the table above, it is shown that the biogas technology received the highest points
hence the share is also highest (21.8%) while Kerosene witnessed lowest ranking and
hence the share is also lowest (10.9%).
The final share of each technology types is again verified with other secondary data
where practical. While doing so, technology with highest priority is selected within the
physical and practical. If the secondary data show the share suggested by above
calculation is not feasible, the highest possible share is taken and remaining will be
added to a technology with next higher priority. With such approach, the final share
suggested for different technologies in cooking is shown in Table 41 below:
Table 41: Calculated Vs Suggested share of different technology in MAS
Types of
technologies
Traditional
Stove
ICS
Biogas
Calculated
Share
12
Suggested
Share Rural
12
Suggested
Share Urban
19
22
21
8
10
0
Kerosene
LPG
11
17
6
33
0
70
Electricity
Total
20
100
20
100
20
100
Remarks
Actual possible level of

intervention (market
potential) as suggested by
BSP study, 2011
Growth rate as in BAU is
considered due to high
preference of community
members
92

Unlike in BAU, the total energy demand of Ilam in MAS decreases by 24% in the end
year (2.8 Million GJ in 2020) when compared to the base year (3.65 Million GJ in
2010). It is mainly due to requirement of high penetration of efficient technologies like
LPG, ICS, electricity based cooking technologies required to recognize climatic, GSI
issues parameters as suggested by community and district stakeholders for MAS.
Figure 26: Total Energy Demand of Ilam in MAS
Figure 27 explains more clearly why total energy demand in MAS is decreasing. It can
be seen from the Figure 26 that the substantial replacement of less efficient devices
like traditional mud stoves (including iron tripod and three stone stoves) is required to
be made by higher efficiency technologies like electric stoves, LPG, biogas in MAS in
order to accommodate special parameters i.e. climatic, GSI and cost being
considered for this study.
93
Figure 27: Increase & decrease of different types of technologies in MAS with
compared to BAU

The activity level of MAS is defined by the fact which will provide higher ability to
community members to adapt to climate change, GSI dynamics and associated cost
of technologies. The MAS demands more diversification of fuel types, higher uptake
of efficient devices than in BAU. Such energy supply types remain almost the same as
of BAU but their penetration will be higher in MAS.
Figure 28 shows that the share of fuel wood remains highest but with a reduced share
compared to BAU. The share of fuel wood in total energy supply in 2020 decreases to
50% in MAS with compared to 73% in BAU.
94
Figure 28: Energy Supply in MAS for residential sector
4.5.
Climate Resilient Scenarios (CRS)
4.5.1. Overview
The final scenario, Climate Resilient Scenario (CRS) will support the development of
livelihoods through the provision of inclusive access to energy. Meeting energy
demand through promotion of the maximum possible clean energy technology,
security of supply, achieving energy saving leading to the reduced climate change
vulnerabilities and better inclusion of gender and social issues are the main rational
of this scenario.
Whilst the CRS does not directly consider GSI in the scenario development it is
assumed that increased resilience and adaptation measures will have indirect GSI
impacts.
The MAS will provide safeguards for the natural ecosystem to ensure sustainable
supply for meeting likely energy demands. Substantial resources and investments will
have to be put on the ground to manage the supply side of vulnerable resource like
rivers and forests.
In CRS, the energy demand shall be met by mostly through renewable and clean
energy. Use of fossil fuels will be insignificant compared to other two scenarios due to
higher uptake of fuels like electricity and LPG. Clean and efficient technologies shall
be utilised and maximum resource utilised on climate resilient development. The
climatic factor will have a more prominent role to play while planning intervention
types in CRS. The weightage given to each parameter for CRS is shown in the Table
42 below.
95
Table 42: Weightage of different parameters considered for DCEP study in CRS
190
Contributes
to Poverty
Reduction
19
30
8
Promotes
Social
inclusion
Gender
friendly in
use
60
22
GSI
Potential to
Mitigation
Weightage
(%)
Potential to
Adaptation
Vulnerability
to CC
Impacts
Climate Change
15
Cost for
installation
and
running
10
10
Total
100
On the basis of weightage given to each parameter shown in table 43 and ranking of
technologies by community, the final share of different technology was calculated in a
similar way as it was done for MAS. The final share suggested for different
technologies in cooking for CRS is shown in the Table 44 below:
Table 43: Calculated Vs Suggested share of different technology in CRS
Types
Calculated
Share
Suggested
Share (Rural)
Suggested Share
(Urban)
Traditional
Stove
ICS
19
25
Biogas
24
14
Kerosene
13
LPG
20
33
34
Electricity
24
25
61
Total
100
100
100
Remarks
Actual possible level

of intervention
(technical potential)
as suggested by
BSP study, 2011

The total energy demand of Ilam decreases also in CRS by 36% in the end year (2.3
Million GJ in 2020) compared to base year (3.65 Million GJ in 2020).
96
Figure 29: Total Energy Demand of Ilam in CRS
A substantial decrease in total energy demand in end year of CRS is mainly due to
the requirement of high penetration of efficient technologies like electricity based
cooking technologies required to recognize climatic factors in CRS.
The Figure 30 explains more clearly why total energy demand in CRS is decreasing. It
can be seen from the Figure 30 that the substantial replacement of less efficient
devices like traditional mud stoves (including iron tripod and three stone stoves) is
required to be made by higher efficiency technologies like electric stoves, LPG, biogas
in CRS to recognize the weightage of different parameters suggested by table 42.
Figure 30: Increase & decrease of different types of technologies in CRS
compared to BAU
97

The energy supply in CRS will be mostly met by fuel wood in the base year which will
later decrease substantially and will be replaced mostly by electricity followed by LPG
and biogas systems. The share of fuel wood in total energy supply decreases from
73% at base year 2010, to 41% towards 2020. Figure 30 depicts the mix of energy
supply.
4.6.
Comparative analysis of energy consumption and GHG

emission in different scenarios:
The three scenarios diverge in terms of the contributions of individual primary energy
sources and technology used - what percentage of primary energy is supplied by
biomass and what kind of technology, what percentage by hydro, and so forth. They
also diverge in terms of consumption growth. Though the total energy demand is
expected to rise as per the population growth, use of efficient technologies, clean
energy etc is assumed to change the pace of the total consumption. The table below
summarizes the share of different RETs in different scenarios.
Urban
Rural
Table 44: Share of major technologies (in %) in different Scenario (in 2020)
Technology
Traditional Stoves
(including agri
residue and animal
dung stoves)
Cooking
2010 BAU
MAS
CRS
RET
Non
Electricity
Based
Electricity
Based
74.7
31.5
12
ICS
Biogas
Kerosene
LPG
Electricity
9.4
3.9
2
8
2
Fuel Mix
Technology
M
2010
35
8
0.08
21.4
4
M
BAU
21
8
6
33
20
M
MAS
25
14
3
33
25
M
CRS
Traditional Stoves
45.9
37
ICS
Biogas
Kerosene
LPG
Electricity
35.9
3.6
0.1
14.6
2
21
3.6
0.08
35
4
M
10
0
0
70
20
M
5
0
0
33
61
M
Fuel Mix
M
Note: M=mixed 100% Electricity= E
RET
Non
Electricity
Based
Electricity
Based
Lighting
2010 BAU
MAS
CRS
66
29
20
34
71
80
100
M
2010
M
BAU
M
MAS
E
CRS
95
100
100
100
Table 44 summarises the share of technology usage in various scenarios for cooking
and lighting in residential sector in the year 2020. We can see, that major shift in
technology occurs in traditional cook stoves in both rural and urban areas. The share
of traditional stoves still looks high in BAU because it also includes the share of other
traditional stoves like three stone stoves, iron tripod stoves, agri-residue stoves. As
98
current ICS cannot replace iron tripod stoves and three stone stoves for common rural
activities like alcohol making and livestock food preparation, the share of those stoves
were maintained in BAU.
Shares of technologies used in urban lighting in all scenarios are kept almost
constant. This is primarily because most of urban lighting already depending on the
grid. In rural lighting while extrapolating current trends, it was found in BAU that
around 35% of all HHs will depend on electricity based sources and 65% from non
electricity based sources in 2020. In the case of MAS and CRS, the current situation
(of 2010) of technology proportions within electricity based sources has been kept
constant, whereas the non electricity based to electricity based mix has been changed
to 55:45 and 100:0 in MAS and CRS respectively.
Figure 31 and Figure 32 below show residential sector final energy demand and GHG
emission in three scenarios during planning period. Energy consumption is observed
to decrease drastically from BAU to MAS to CRS due to adoption of cleaner and more
efficient technologies. It can be also be observed the BAU has the highest GHG
emission in 2020 whereas as CRS has the lowest. MAS utilises a middle path thus is
in between these two scenarios. BAU has more inefficient and traditional
technologies, MAS replaces some of these technologies thus has a lower GHG
emission, whereas in CRS most inefficient and GHG emitting technologies are
replaced by clean technologies. The GHG data is automatically derived from LEAP
itself where it loads the technology/resources environment variable including its
emission.
Figure 31 Energy consumption in residential sector in different scenarios
99
Figure 32 GHG emissions in residential sector in different scenarios
The overall energy consumption can be further compared in terms of useful energy
consumption in a particular end use per HH. The table below indicates the change in
energy consumption in a HH per end use in various scenarios. These values below
are based on final energy consumption. It also correlates with the need to substitute
inefficient technologies with efficient ones.
Table 45 Comparison of specific energy consumption (GJ per HH) in residential
sector in different scenario
Year
Scenario
BAU
Rural
MAS
CRS
BAU
Urban
MAS
CRS
2010
2015
2020
Energy consumption (GJ per HH)
41.8
34.4
26.2
41.8
29.8
17.9
41.8
26.8
11.9
27.3
26.8
26.3
27.3
18.1
11.1
27.3
15.9
7.5
100
5. DCEP Plan
5.1
Introductions
This chapter will present a detailed implementation plan for 3 years on the MAS and
CRS scenarios that have been presented above. The implementation plan will focus
more on planning for rural residential sector as it is the highest energy consuming
sector of Ilam. The level of intervention and budget requirements will also be analysed
for different scenarios.
The district level offices have to take lead on technology assessment and institutional
assessments for implementing DCEP. The Figure 33 shows the basic framework
about how different components can be assessed while implementing DCEP in Ilam.
The direction of arrows shows the flow of input for particular assessments while the
thickness of the arrow shows the level and intensity of the inputs (thicker the arrow,
intensity of inputs will be increased).
The DCEP should be the rolling document to be mainstreaming into usual annual and
periodic development planning of the district, the DDC and line agencies in particular
by following the current DDC planning process. Text below describes the annual and
periodic revision of the DCEP as decentralized energy planning as a recommendation
to the DDC Ilam.
5.2
Analysis of existing policies to implement proposed plan
The key strategies under which DDC is functioning reflect strong supports for:
Development of RE resources based on community ownership and joint

financing by community and local and central government.
Conduct feasibility studies
Increase awareness to increase growth of RE sector
Prioritising RE projects for densely populated areas and
Development of a clean energy village
Utilisation of CDM mechanism where feasible
In addition to local government commitments, the central government has a national

level programme under which the district can benefit as well. Renewable Energy
Subsidy arrangements provide for about 50% capital cost subsidy for installing micro
and pico hydro. Dissemination of solar home systems, biogas and other renewable
energy technologies are also provided with subsidies ranging from 25-40% of the
installation costs on average.
These policies will have positive implications in implementing DCEP in micro hydro by
assisting financing options. Policies at both central and local level also provide
technical assistance for capacity building and awareness activities in the field.
101
5.3
Analysis of intervention required in different scenarios
In line with the scenarios presented in chapter 5, various installation and operation
targets have been set for a number of RET technologies. The interventions that are
put forward are simply based on required resource mix that is prescribed for a
scenario in 2020. However, among different technologies, the approach for estimate
intervention required to calculate the yearly installation of pico hydro/micro
hydro/hydro power is different which is done in the following major steps
Calculate the total electricity demand (kWh) for different scenarios in different
year.
Deduct the current electricity generation (kWh) by different existing facilities
(national grid, micro hydro, solar) from total electricity demand to calculate the
additional electrical energy requirement in different years in different
scenarios.
Calculate power required to supply required electrical energy assuming the
overall capacity factor of plant (micro hydro, Pico hydro, national grid) as 30%.
The detailed intervention of different technologies required in MAS is presented below

in Table 46:
Table 46: Required Renewable Energy Intervention in MAS*
Years
ICS
(Numbers)
Biogas
(Number)
SHS (Number)
Pico/hydro
Micro
hydro
/Hydro(KW)
2011
2928
542
2625
464
2012
2679
443
2736
310
2013
3008
450
2850
318
2014
3818
592
2966
327
2015
3594
493
3085
336
2016
3940
563
3202
350
2017
4774
592
3321
359
2018
4572
943
3443
368
2019
4942
833
3567
377
2020
5799
907
3694
386
* Non-renewable Energy supplies are assumed to be taken care by market on its own
Similarly, the detailed intervention of different technology required in CRS is

presented below in Table 47.
102
Table 47: Required intervention of different technologies in CRS
5.4
Year
ICS
Biogas
SHS
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
3145
2900
3231
4262
4044
4391
5446
5251
5622
6701
888
797
811
960
870
942
977
1334
1230
1655
3782
4436
5107
5797
6505
7222
7955
8706
9474
10260
Hydro Power
(kW)
678
543
555
566
578
593
603
613
623
633
Financing Plan
This section deals with investment requirement for the next three years to achieve the
scale of intervention for the two scenarios MAS and CRS. To carry out the analysis of
investment required to implement the intervention in the two scenarios, the inflation
factor is not considered. This allows for a more thorough analysis of the cost
requirements in the present context. The cost per unit of the technologies is listed in
the Table 48.
Table 48 : Unit cost of technologies
Technology
Improved Cook Stove
Biogas
Micro/Pico Hydro
Small Hydro
Solar Home System
IWM
Cost (NPR)
250
48,600
265,00 per kW
150000 per kW (2000 USD)
20,000 for 20 Wp
15,000
The cost per kilowatt (kW) of pico hydro, micro hydro differs largely with small hydro
power plants. As Ilam has lots of potential to develop medium sized small hydropower
plant, hence the average of cost per kW between micro hydro and small hydro (i.e.
NPR 207,000.00) is considered for financial analysis. Furthermore, investment
required for fuel switching from current practices to electricity in cooking purposes
requires substantial development of a hydro power plant which cannot be done alone
by the district. Hence it is assumed that 30% of energy (electricity) required will be
meeting by the districts own involvement while the remaining 70% of required energy
is assumed to be supplied from the national grid by NEA. Similarly, the subsidy
amounts from AEPC and additional supports from DDC are also considered which is
to remain constant throughout the planning years. The current subsidy policy for
some of the technologies is presented in the table below.
103
Table 49: Subsidy policy for various RETs

Resource
Technology
Cost(NPR)
Subsidy
Fuel
wood
Improved Cook Stove
250
Metallic Stove
7000
Biogas
Biogas Stoves (2, 4, 6

3
cm )
48,600
Solar
10-18 Wp
1000/Wp
2700 for 2 pot

4000 for 3 pot
12000 + 700
(2500 for marginalised)
(4000 for toilet attached)
5000
20 Wp
20000
6000
Institutional
MicroHydro
75% not exceeding 15,000
IWM
15000
5 kW
265,000/kW
500 kW to 10 MW
150,000/kW
5 kW to 500 KW
(rehabilitation)
Institutional and
community use
Transportation
Productive use
12,000 for Grinding

( 27,000 for other end uses)
(6000/HH up to 5kW but no more
than 60,000 per KW)
12000/HH no more than 97,500
per KW
No subsidy
50% of the installation cost
subsidy will not be more than NPR
62,500 per kW generated.
97,500 extra
500 per KM per kW, not exceeding
10KM and 30,000 per KW
generated
10,000 per KW not exceeding
25,000 per project
Similarly, the budget allocation of DDC/DEEU for this fiscal year is summarised in the
Table 50.
Table 50: Budget set aside FY 2010/11 by DDC
S.N.
1
2
3
4
5
6
7
8
9
Description
Peltric set Promotion
IWM Promotion
Solar Tuki Dissemination
Promotion of ICS
Micro hydro promotion
Biogas promotion
Metal ICS promotion
Bio briquette stove promotion
Others (trainings + awareness + environment day
celebration)
Total
Budget (000 NPR)

7,500
180
3,000
5,600
13,000
9,700
405
12
1,005
40,402
Source: DDC Ilam
5.4.1 Financial Requirement in Medium Adaptation Scenario
Table 51 below also shows an estimated cost for installation of technical systems
along with the costs for monitoring, training and different types of capacity building
104
programmes which relates to the implementation of a DCEP for a medium adaptation

scenario. The analysis of financial requirements shows that the development of
hydropower required highest investment (more than 70% of total budget) compared to
other activities. It is due to this reason that a significant amount of energy needs to be
produced by electricity to enable a switch in fuel from traditional biomass to electricity
for cooking purposes unrealistic.
Table 51 : Summary of funds required in MAS
(in 000 NPR)
Descriptions
Improved Cook Stove
2011
2012
2013
2014
1,052
971
1,077
1,341
33,861
27,698
28,142
36,967
3,542
7,280
7,476
7,676
153,149
102,204
105,107
108,046
IWM
540
540
540
540
550
150
300
400
Support
760
960
460
760
195,465
141,815
145,115
157,744
Biogas (units)
Solar Home System
Total
Similarly, a detailed breakdown of budget required to carry our different activities is

shown in Table 52.
105
Provide after sales service

O&M training to SHS users
Monitoring
Electrification of micro hydro,
pico hydro and IWM
Subsidy provision
Feasibility study
Promote end use
diversification
Monitoring
Installation of IWM
Subsidy provision)
Monitoring
Provide resources for IWM
Improved
Water Mill
Micro/ Pico
hydro (kW)
Solar Home
System
Training for ICS promoters

Installation of biogas plant
Subsidy provision
Monitoring
Provide O&M training for
biogas users
Installation of SHS
Subsidy provision
Promotion & Awareness (
P&A) of SHS
P&A of safe battery disposal
Installation of ICS
P&A of ICS and its benefits
Monitoring
Improved
Cook Stove
Biogas
(units)
Activity
Description
5% of subsidy
15
12
as per
20% of subsidy
as per
DDC
AEPC
DDC
Users
AEPC
97 AEPC
as per
10% of total cost DDC
as per
as per
10% of subsidy DDC
207 Users
20 Users
6 AEPC
5 % of total cost DDC
18
464
177
18
106
310
364
18
318
374
Budget
Target (numbers)
Responsibilit
y
2011 2012 2013
0.250 Users
2928 2679 3008
20% of DDC DDC
investment
100 DDC
48.5 Users
542
443
450
12.7 AEPC
as per
10% of subsidy DDC
as per
Unit Costs 000

NPR
18
327
384
592
2014
3818
Table 52: Financing requirement for MAS
1,509,487
270,000
216,000
as per
54,000
as per
6,409,515
9,604,425
2,261,912
270,000
216,000
as per
54,000
as per
30,189,745
as per
as per
as per
66,618
64,095,150
44,412
7280360
666,180
111,030
100,000
21,504,270
5,631,015
as per
563,101
as per
133,971
45,238,234
as per
as per
as per
65,096
96,044,251
43,398
3542280
650,964
108,494
100,000
26,288,649
6,883,832
as per
688,383
as per
146,405
1,552,368
270,000
216,000
as per
54,000
as per
6,591,594
31,047,361
as per
as per
as per
68,166
65,915,937
45,444
7476780
681,660
113,610
100,000
21,848,765
5,721,223
as per
572,122
As per
150,379
1,595,774
270,000
216,000
as per
54,000
as per
6,775,903
31,915,485
as per
as per
as per
69,740
67,759,029
46,494
7676840
697,404
116,234
100,000
28,699,827
7,515,212
as per
751,521
as per
190,914
2011
2012
2013
2014
732,024
669,856
751,895
954,571
73,202
66,986
75,189
95,457
Budget in NPR.
Activity
Monitoring of climate
adaptation need for
prioritized intervention
Awareness of climate
change issues through
knowledge products
including indigenous
knowledge systems
Awareness & Liaison
between government line
agencies for hazard
preparedness
Data collection to collate
disaggregated data on RE
based on gender and
ethnicity
Promote end use

diversification of IWM
Capacity
Training of RET related
Building/Trai stakeholders (includes
ning
government line agencies,
NGOs, CBOs and private
companies) on climate
change related issues
Training on business
development to RET
companies including NGO
and CBO
Provide training on
integrated water resource
management to community
based organizations
Support
Vulnerability assessment of
VDCs
Description
DDC/
District line
agencies
300 DDC/
District line
agencies
15 DDC/
District line
agencies
100 DDC/
District line
agencies
500 DDC/
District line
agencies
100 DDC/
District line
agencies
150
150 AEPC
150 AEPC
107
Budget
Responsibilit Target (numbers)
y
2011 2012 2013
27 AEPC
Unit Costs 000

NPR
2014
as per
300,000
60,000
100,000
300,000
250,000
150,000
150,000
2011
2012
Budget in NPR.
60,000
100,000
500,000
300,000
150,000
as per
as per
60,000
100,000
300,000
150,000
150,000
2013
as per
300,000
60,000
100,000
300,000
250,000
150,000
2014
5.4.2 Financial Requirement in Climate Resilient Scenario

The financial requirement in climate resilient scenarios for the next three years is shown in the
table below. Table 52 below also shows an estimated cost for installation of technical systems
along with cost for monitoring, trainings and different types of capacity building programmes
which relates to the implementation of DCEP. The analysis of financial requirement shows that
the development of hydropower will require the highest investment compared to other activities.
It is due to this reason that a significant amount of energy needs to be produced by electricity to
enable a switch in fuel from traditional biomass to electricity for cooking purposes. The financial
requirement for development of hydropower assumes that only 30% of required power will be
generated from district level. The remaining 70% of power will be supplied from national grid.
The summary of total budget required for different activities in different year is shown in table
below.
Table 53 : Summary of Fund required in CRS
Description
Improved Cook Stove
Biogas (units)
Solar Home System
Improved Water Mill
Support
Total
2011
2012
2013
2014
1,122
55,442
11,940
1,042
49,759
12,280
1,150
50,686
12,620
1,485
59,998
12,960
223,710
540
550
3,460
298,775
179,249
540
150
3,660
248,692
183,070
540
300
3,160
253,539
186,863
540
400
3,460
267,720
Similarly, detail breakdown of budget to carry our different activities is shown in Table 53.
5.5
The framework below presents the detailed implementation plan for two scenarios, MAS and
CRS, for three years starting from 2011/12 to 2013/14. The difference between the two scenarios
can be observed in the scale of intervention, while most of the other capacity building and
support activities remain the same. It is depicted in Table 53.
108
Improved
Water Mill
Subsidy provision
Feasibility study
Promote end use
diversification
Monitoring
Installation of IWM
Subsidy provision)
5% of subsidy DDC
15 Users
12 AEPC
as per
97 AEPC
as per
10% of cost DDC
DDC
Users
Users
AEPC
DDC
DDC
DDC
DDC
Users
AEPC
Users
DDC
DDC
Costs Budget
From
0.250
10% of cost
20% of DDC
investment
100
48.5
12.7
as per
10% of subsidy
as per
Unit
NPR
Training for ICS promoters

Biogas
Installation of biogas plant
(units)
Subsidy provision
Monitoring
Provide O&M training for
biogas users
Solar Home Installation of SHS
20,000
System
Subsidy provision
6
P&A of SHS
5 % of cost
P&A of safe battery disposal
2% of cost
as per
O&M training to SHS users
as per
Monitoring
10% of subsidy
Micro/ Pico Electrification of micro
207
hydro (kW) hydro, pico hydro and IWM
Improved
Installation of ICS
Cook Stove P&A of ICS and its benefits
Monitoring
Description Activity
18
678
597
888
18
543
614
797
2011 2012
3145 2900
Budget in NPR
109
18
555
631
811
18
566
648
960
12,620,000
4,029,522
671,587
268,635
as per
as per
402,952
as per
100,000
39,351,590
10,304,437
as per
1,030,444
161,551
12,960,000
4,138,440
689,740
275,896
as per
as per
413,844
as per
100000
46,581,001
12,197,499
as per
1,219,750
213,096
2,647,402
270,000
216,000
as per
11,241,277
14,029,500
3,304,049
270,000
216,000
as per
52,948,042
as per
66,080,976
as per
2,703,823
270,000
216,000
as per
11,480,849
54,076,463
as per
2,759,842
270,000
216,000
as per
11,718,712
55,196,830
as per
140,294,996 112,412,766 114,808,490 117,187,117
12,280,000
3,922,608
653,768
261,507
as per
as per
392,261
as per
as per
11,940,000
7,592,346
1,265,391
506,156
as per
as per
759,235
100,000
38,631,608
10,115,906
as per
1,011,591
144,986
100,000
43,043,799
11,271,263
as per
1,127,126
157,261
2013 2014 2011

2012
2013
2014
3231 4262
786,305
724,932
807,754
1,065,479
78,630
72,493
80,775
106,548
Target (numbers)
Table 54: Financing requirement for CRS
Awareness & Liaison

between government
agencies for hazard
preparedness
Data collection for
disaggregated data on RE
based on gender and
ethnicity
Total
Vulnerability assessment of
VDCs
Monitoring of climate
adaptation need for
prioritized intervention
Climate change awareness
through knowledge products
including indigenous
knowledge systems
Support
Monitoring
Provide resources for IWM
Promote end use
diversification of IWM
Capacity
Training of RET
Building/Tra stakeholders on climate
ining
change related issues
Training on business
development to RET
companies including NGO
and CBO
Provide training on
integrated water resource
management to community
based organizations
Description Activity
Costs Budget
From
300
15
100
100 DDC/
District line
500 agencies
150 DDC/
District line
agencies
150 AEPC
150 AEPC
20% of subsidy DDC

as per AEPC
27 AEPC
Unit
NPR
2011 2012
110
60,000
100,000
500,000
3,000,000
as per
54,000
as per
60,000
100,000
3,000,000
150,000
150,000
2013
as per
54,000
as per
300,000
60,000
100,000
3,000,000
250,000
150,000
2014
320,256,864 252,708,519 257,712,625 272,060,608
300,000
60,000
100,000
3,000,000
250,000
150,000
150,000
as per
as per
150,000
54,000
as per
54,000
as per
2012
Budget in NPR
2013 2014 2011
Target (numbers)
2012
2013
2014
542
888
443
797
450
811
Biogas
(units)
592
960
111
Through ICS promoters based on

demand.
How
Where
Prioritized areas for

first 3 years are
northern part of Ilam.
Promotion through financial support Prioritized areas for
provided by DDC for installation
first three years are
northern VDC of
Ilam and southern
poor VDC like
Sakfara.
P&A of ICS
Promotion and awareness through District wide
and its
knowledge products on reduction of
benefits
indoor air pollution through ICS,
savings in fuel wood etc.
Monitoring
DEEU assigns consultant for
Sample VDCs from
monitoring of intervention.
proposed area and
AEPC may also hire independent
already intervened
consultant for monitoring the scale areas.
and quality of intervention.
Training for
DEEU conducts training for new
Ilam Bazaar
ICS
ICS promoters each year. An
including other area
promoters
estimated 50 new promoters
centres of northern
through each training event are
Ilam
needed to match the target set in
MAS/CRS as well as the high
dropout rate of promoters.
Installation of Through biogas companies as per
As per potential of
biogas plant demand.
VDC as recommend
by BSP study.
Financial
Through subsidy provision as
In biogas promotes
Supports
recommended by AEPC policy
area
Activity
Description
Improved
2928 2679 3008 3838 Installation of
Cook Stove 3145 2900 3231 4262 ICS
(units)
Financial
support for
installation of
ICS.
2011
Target(: MAS : CRS
Table 55: Detail Implementation Plan for MAS and CRS
O&M: Operation and Maintenance, P&A: Promotion and awareness
AEPC, DEEU, Area

Centre
Biogas companies
AEPC, DEEU
DEEU, Consultant
DEEU,NGO,CBO
CBO, NGO, ICS

Promoters, AEPC,
RRESC
DEEU,NGO
Who
Enough promoters
will be available to
install the required
scale.
All trained promoter
will be available
during need
Risk/Assumption
464
678
Micro/
Pico Hydro
(kW)
310
543
364
614
318
555
374
631
177
597
Solar
Home
System
(units)
327
566
384
648
Target(: MAS : CRS
How
Additional supports may be

provided to very poor and
vulnerable groups (like Lepcha)
from DDC.
Knowledge products developed for
handling battery during operation
and during its disposal.
Solar companies
P&A of SHS
112
P&A of safe
battery
disposal
Provide after
sales service
O&M training Solar companies provide training to
to SHS users users after installation
Monitoring
monitoring number and quality
micro, pico
Installation through PQ companies.
hydro and
Sites are determined through
IWM
feasibility study reports.
electrification
AEPC provides subsidy
Subsidy
provision
Provide after Biogas companies

sales service
Monitoring
DEEU/BSP assigns consultant for
monitoring of scale of intervention
as well as quality of intervention
Provide
Biogas companies provide on-site
O&M
training to users after installation
training for
biogas users
Installation of Through solar companies as per
SHS
demand.
Activity
AEPC, DEEU
DEEU, NGO, Solar

Companies
AEPC, RRESC
Solar companies
Biogas companies
DEEU,
BSP,Consultant
Biogas companies
Who
Micro/Pico hydro
companies, NGOs,
Regional Services
centre,
DEEU, Consultant
In promoted areas
Feasible sites
Solar companies
Installation site
As per user demand Solar companies
District wide
Demand base.
Scattered settlement
where grid or mini
grid T/D is not
feasible
Target areas spelled
out in AEPC's
subsidy policy
Settlement where
grid or mini grid T/D
is not feasible
As per requirement
of biogas owners
Sample VDCs from
prioritized and
intervened areas.
Installation site
Where
1. The effective use

of power cannot be
made due to less
end use
Unmanaged
disposal of
batteries may
create harmful
effect to
environment.
The increased
power shortage in
urban area may
create change to re
sale of subsidized
solar system.
Risk/Assumption
18
18
18
18
18
18
Improved
Water
Mill
18
18
Target(: MAS : CRS
113
DEEU, RRESC,
KADOORIE,GWF
DEEU, RRESC,
KADOORIE,GWF
Who
NGO, CBO, PQ
companies,
RRESC.
Sites with
traditional water
mill.
Target areas from
AEPCs subsidy
policy
As per requirement
AEPC, DEEU,
Regional Service
Centre
DEEU, Consultant
IWM companies
AEPC, RRESC
AEPC, Consultant
Installed sites
AEPC
DEEU, Consultant,
RRESC
Microhydro, pico
NGO,AEPC, DEEU,
hydro promoted area RRESC
District wide
Feasible sites
Feasible sites
Where
Subsidy
provision( for AEPC provides subsidy
grinding)
Provide after IWM manufacturers and installers
sales service
Monitoring
AEPC, DEEU assigns consultant for Installed sites
monitoring of scale of intervention
Provide
AEPC to provide 50% of the
Identified sites
resources for installation cost for sites indentified
IWM
through the DEEU for rehabilitation
DDC provides financial support for

pico hydro and electrification
through IWM
DEEU can itself carry out feasibility
study or hire external consultant.
DEEU & DDC allocate resources.
Line agencies can also contribute
through establishment of basket
fund.
Resources
AEPC provides subsidy as per
for micropolicy.
hydro
DDC can also contribute additional
rehabilitation, support if the extend of rehab cost
is too high.
Monitoring
monitoring of scale of intervention,
verification of power output as rated
Installation
Through PQ IWM manufacturers
of IWM
and installers
AEPC provides subsidy to prequalified manufacturers and

installers
Provide
subsidy as
per subsidy
policy
Financial
Support
electrification
Feasibility
study
Promote end
use
diversification
How
Activity
diversification.
Risk/Assumption
Capacity
building/
training
Target(: MAS : CRS
Who
Long shaft improved IWM companies,

water mill.
NGO, AEPC
Where
114
Ilam Bazaar
Ilam Bazaar
Ilam Bazaar
AEPC, DEEU,
Regional Service
Centre, NGO
DEEU, AEPC,
Regional Service
Centre
DEEU, AEPC,
Regional Service
Centre
Create awareness to promote RET District headquarters DDC, MFI, Banks

as viable portfolios for finance
including the central
institutions(FIs) Also invest in
level.
building capacities of FIs in RET.
Provide other technical assistances
(project appraisal, monitoring etc)
DEEU conducts workshop/training

on climate change related issues
like impact, adaptation, mitigation,
vulnerability and most importantly
the implications on the renewable
energy sector.
DEEU with the help from AEPC or
other development agencies
conducts training for RET
companies on business
development. Specific focus will be
provided on business plan
development and matching human
resource, financial resources to
demand in district
Provide
DEEU with the help from other
training on
development agencies and in
integrated
liaison with government line
water
agencies provides the training to
resource and selected CBOs, micro hydro
Training of
RET
stakeholders
on climate
change
related issues
Training on
business
development
to RET
companies
including
NGO and
CBO
and relocation.
rehabilitation
and
relocation
Promote end
use
diversification
of IWM
Promote and
create access
to finance for
RETS.
AEPC provides support through
subsidy.
How
Activity
Risk/Assumption
Other
Specific
Supports
Community based vulnerability

assessment
associated cooperatives etc
How
115
Conduction of community based

climate change vulnerability
assessment of technology,
resource, community intervention
needs etc. Resource and
technology based on water and
forests have to be monitored for
adaptation needs.
Awareness of DEEU collects and produces (if
climate
necessary) knowledge products on
change
climate change related issues like
issues
impact, adaptation, mitigation,
through
vulnerability and most importantly
knowledge
the implications on the renewable
products
energy sector from various
including
NGOs/INGOs by coordinating with
indigenous
AEPC. Also promotion of proven
knowledge
indigenous adaptation methods if
systems
any. Promote awareness of
sustainable forests management
through knowledge products
Disaggregate DDC will coordinate the task
RE Data
through DEEU by mobilizing district
collection by line agencies, NGOs, and also by
gender and
assigning consultant to carry out a
ethnicity
survey in sample VDCs.
Liaison
Liaison between government line
between
agencies like DDC, DFO, DIO,
3
3
3
3
3
3
forest
management
to community
based
organisations
Vulnerability
assessment
of VDCs
Monitoring of
climate
adaptation
need for
prioritized
intervention
areas
3
3
Activity
Target(: MAS : CRS
Ilam, Concerned
VDCs
District wide
District wide
Based upon
vulnerability
assessment of
VDCs
All VDCs
Where
DDC, District Line

agencies
DDC, District Line

Agencies,
Consultant
DEEU, Related
district line agencies
like DFO, DADO.
DEEU, District Line

Agencies,
Consultant
Consultant, NGO
Who
Risk/Assumption
government
line agencies
for hazard
preparedness
Activity
Target(: MAS : CRS
116
DADO and NGOs specialized for

resource and infrastructure
safeguarding through
preparedness.
How
Where
Who
Risk/Assumption
Strong coordination is required to fully implement the plan to ensure effective service and
supply delivery and to avoid duplication of similar activities. The DEEU will coordinate
activities related to delivering RETs services while other activities such as linking
government line agencies for hazard preparedness, collection of disaggregated data
which relates to GSI, and awareness with regards to climate change impacts should be
coordinated by the DDC itself.
5.6
Monitoring and Evaluation Plan
The monitoring and evaluation plan is presented in Table 56. DEEU Ilam should also be
the main coordinating and facilitating agency for monitoring and evaluation. Most of the
activities and their outputs shall be monitored on an annual basis. DEEU can carry out
the monitoring itself or sub contract consultants. AEPC, implementing partners, RET
companies, NGOs, CBOs and civil society should provide support and assistance to carry
out monitoring and evaluation. The table below provides the general monitoring and
evaluation plan for both the MAS and CRS scenarios for DCEP in Ilam.
117
797
888
811
450
3231
3008
443
542
2900
3145
Biogas
(units)
2679
Target(: MAS : CRS

2011
2012
2013
Improved
2928
Cook Stove
(units)
MAS
Description
960
592
4262
3838
2014
Subsidy
provision as per
subsidy policy
Installation of
biogas plant
118
All biogas plants installed

through pre qualified
companies have been
provided subsidy as per
AEPC's subsidy policy
Target numbers of Biogas

for each year are installed
and are operational.
Verifiable Indicators
End of year or at
least I annual
monitoring; BSP
annual report
Subsidy
approval
document
Means of
verification
As when
Annually or
at least bi
annual
Frequency of
information
collection
Installation of
Target number of ICS for End of year or at Annually or
ICS
each year are installed
least bi annual
at least bi
and are operational
monitoring; ICS annual
programme
annual report
Financial support Finance required is
DDC annual
Annually or
towards
reflected on DDC's annual budget
at least bi
installation of
budget for alternative
annual
ICS.
energy and is spent as per
implementation plan.
Promotion and
At least two knowledge
End of year or at Annually or
awareness of
products developed on
least bi annual
at least bi
ICS and its
impact of indoor air
monitoring
annual
benefits
pollution on health and
fuel wood possibilities
and dispersed in all VDCs
Monitoring
A yearly monitoring report Monitoring and
Annually or
is produced on ICS with
evaluation report at least bi
user survey, scale of
annual
intervention, degree of
usage and quality of
intervention
Training for ICS 50 persons are trained on Training
Annually or
promoters
the process of ICS
completion
at least bi
installation each year
report
annual
Activity
Table 56: Monitoring and evaluation plan
AEPC, NGO
DEEU
DEEU
AEPC, BSP
Biogas
companies
AEPC
Consultant,
DEEU
DEEU,BSP,
Consultant
NGO
Implementing
partner,
NGOs, ICS
promoters
DEEU,
Consultant
DEEU
DEEU,
Consultant
Responsible
Support
for verification
614
597
631
374
364
Target(: MAS : CRS

2011
2012
2013
Solar Home 177

System(unit
s)
MAS
Description
648
384
2014
Promotion and
awareness of
Promotion and
awareness of
SHS
Subsidy
provision as per
subsidy policy
Installation of
SHS
Provide
operation and
maintenance
training for
biogas users
Monitoring
Provide after
sales service
Activity
119
All SHS installed through

pre qualified companies
have been provided
subsidy as per AEPC's
subsidy policy
Finance required is
reflected on DDC's annual
implementation plan; At
least 50% increase in
uptake of SHS in
prioritised areas as per
implementation plan
One brochure developed
each for safe battery
At least 95% of biogas

installed HHs have access
to after sales service and
at least 80% are satisfied
with the service
A yearly monitoring report
is produced on Biogas
with user survey, scale of
intervention and quality of
intervention
At least one member of
the biogas installed HH
has been trained on
operation and
maintenance of biogas
plants
Target number of SHS for
each year are installed
and are operational
Frequency of
information
collection
Annually or
at least bi
annual
As when
Annually or
at least bi
annual
Annually or
at least bi
annual

least biannual
at least bi

least biannual
at least bi
monitoring;
annual
End of year or at
least biannual
monitoring;
ESAP annual
report
Subsidy
approval
document
Biogas user
survey; End of
year monitoring
report
Monitoring and
Annually or
evaluation report at least bi
annual
Biogas user
survey; End of
year monitoring
report
Means of
verification
DEEU
DEEU,
Consultant
DEEU
DEEU,ESAP,
Consultant
DEEU,
Consultant
DEEU,BSP,
Consultant
DEEU,
Consultant
AEPC,NGO
Solar
companies
AEPC,
ESAP, solar
companies
Solar
companies
BSP
AEPC
BSP
Responsible
Support
for verification
310
543
464
678
Micro/Pico
Hydro(kW)
555
318
Target(: MAS : CRS

2011
2012
2013
MAS
Description
566
327
2014
Financial
Support for pico
hydro systems
and water mill
electrification
Feasibility study
for micro hydro
Installation
through micro
hydro, pico
hydro and IWM
electrification
Provide subsidy
as per subsidy
policy
Monitoring
Operation and
maintenance
training to SHS
users
Provide after
sales service
safe battery
disposal
Activity
120
disposal, battery usage

techniques and benefits of
SHS on health and
comparative advantage
against kerosene.
At least 95% of SHSs
installed HHs have access
to after sales service and
at least 85% are satisfied
with the service
At least one member of
the SHS installed HH has
been trained on operation
and maintenance of SHS
plants
A yearly monitoring
report is produced on
SHS with user survey,
scale of intervention and
quality of intervention
Target capacity for each
year is obtained through
install of micro hydro, pico
hydro or through IWM
electrification
All systems installed
companies have been
Finance required is
reflected on DDC's annual
implementation plan.
At least 5 sites are studied
each for feasibility of micro
Annually or
at least bi
annual
Annually or
at least bi
annual
Annually or
at least bi
annual
Annually
As when
DDC annual
budget
Feasibility study
report; End of
DEEU,
Regional
DEEU,
Regional
Service
Centre
DEEU,
Consultant,
Regional
Service
Centre
DEEU,
Regional
Service
Centre
DEEU,AEPC
, Consultant
DEEU,
Consultant
DEEU,
Consultant
Consultant
AEPC, hydro
companies
Hydro
companies
Solar
companies
AEPC, Solar
companies
AEPC, Solar
companies
Frequency of Responsible
Support
information
for verification
collection
annual
End of year or at Annual

least biannual
monitoring;
AEPC annual
report
Subsidy
As when
approval
document
SHS user
survey; End of
year or at least
biannual
monitoring
SHS user
survey; End of
year or at least
biannual
monitoring report
Monitoring and
evaluation
report
monitoring;
Means of
verification
18
18
18
18
Improved
Water Mill
18
18
Target(: MAS : CRS

2011
2012
2013
MAS
Description
18
18
2014
hydro or IWM
electrification
Provide after
sales service
Subsidy
provision( for
grinding)
121

companies have been
At least 95% of IWM
owners have access to
after sales service and at
At least 25% of all HHs

benefiting from micro
hydro are using electricity
for purposes other than
lighting
Resources for
micro-hydro
through PQ companies
rehabilitation,
are provided financial
relocation and
support by AEPC for
major repair and relocation and
maintenance
rehabilitation; DDC
allocates additional
resource as per financing
plan for the same purpose
for pico hydro as well
Monitoring
A yearly monitoring
report is produced on
micro and pico hydro with
intervention
Installation of
Target number of
IWM
traditional water mills
improved for each year is
obtained.
and IWM
electrification
potential.
Promote end use
diversification of
micro hydro
Activity
IWM user
survey; End of
year or at least
Annually or
at least
biannually
As when
Annually or
at least
biannually
DEEU,
Consultant
DEEU
DEEU,
Consultant
DEEU,AEPC
, Consultant
Monitoring and
evaluation
report
End of year
monitoring;
Implementing
partner annual
report
Subsidy
approval
document
DEEU
DDC annual
As when
budget; Subsidy
approval sheet
Annually or
at least
biannually
DEEU,
Regional
Service
Centre
End of year
Annually or
monitoring report at least
Micro hydro user biannually
survey
AEPC
AEPC, IWM
companies
IWM
companies
Hydro
companies
AEPC
AEPC, Hydro
companies
Support
information
for verification
collection
yearly
Service
monitoring report
Centres
Means of
verification
Capacity
building/trai
ning
Target(: MAS : CRS

2011
2012
2013
MAS
Description
2014
Training on
business
development to
RET companies
including NGO
and CBO
Training of RET
stakeholders on
climate change
related issues
122
A district wide training is

held through which at least
1 person from every VDCs
and municipality and every
organisations active in
rural development
activities are imparted
knowledge on climate
change issues.
held through which at least
1 person from every VDCs
and municipality and every
organisations active in
rural development
Training
completion
report; End of
year monitoring
Training
completion
report
IWM user
survey; End of
year monitoring
report; IWM
annual report
Promote and
Finance institution provide End of year
create access to financing for RETs
monitoring
finance for RETS including biogas,
micro/pico hydro and SHS
Annually
Once
Annually
Annually or
at least
biannually
DEEU
DDC annual
As when
budget; Subsidy
approval sheet
DEEU, district AEPC, NGO

line agencies.
DEEU, district AEPC, NGO

line agencies
DEEU,
IWM
AEPC,
companies
Regional
Service
Centre
DEEU, AEPC All private
companies
AEPC
DEEU,AEPC, IWM
Consultant
companies
biannual
monitoring report
least 80% are satisfied

with the service
Support
information
for verification
collection
Monitoring and
Annually or
evaluation report at least
biannually
Means of
verification
A yearly monitoring report

is produced on IWM with
intervention
Provide
DDC and or AEPC
resources for
allocates additional
IWM
resource as per financing
rehabilitation and plan for the same purpose
relocation
for pico hydro as well
Promote end
Promoted IWM will adopt
use
other end uses beside
diversification
grinding
of IWM
Monitoring
Activity
Support
Target(: MAS : CRS

2011
2012
2013
MAS
Description
2014
Awareness of
climate change
issues through
knowledge
products
including
Monitoring of
climate
adaptation need
for prioritized
intervention
areas
Vulnerability
assessment of
VDCs
Provide training
on integrated
water resource
management
and forest
management to
community
based
organisations
Activity
Means of
verification
End of
assessment
report
Once
Once
Annually
123
AEPC, NGO
DEEU, District AEPC

line agencies
DEEU, AEPC Consultant
DEEU, AEPC, Consultant

District line
agencies
DEEU,
district line
agencies.
Support
information
for verification
collection
At least three knowledge

Monitoring and
Annually or
products developed on
impacts and vulnerability,
biannually
adaptation and indigenous
adaptation methods
A report on adaptation
needs of technology,
resource, community
intervention needs etc.
Resource and technology
based on water and
forests are to be
monitored for adaptation
needs.

Training
held through which at
completion
least 1 person from every report; End of
VDCs and municipality
year monitoring
and every organisations
active in rural
development activities
are imparted knowledge
on climate change
issues.
A community based
Assessment
vulnerability assessment
report for Ilam
report is produced
activities are imparted

knowledge on climate
change issues.
4
1
1
2014
Target(: MAS : CRS

2011
2012
2013
MAS
Description
Means of
verification
Data collection
End of project report
to collate
disaggregated
data on RE
based on gender
and ethnicity
124
End of project
report
Annually or
at least
biannually
DEEU,
Consultant
DDC, AEPC
AEPC
DEEU
Support
information
for verification
collection
Liaison between Increase synergy between Monitoring and

Annually or
government line DEEU and district line
agencies for
agencies.
biannually
hazard
preparedness
indigenous
knowledge
systems
Activity
6. Recommendations
As a result of the study assessment and analysis, the study team is able to make specific
recommendations to improve on the process of preparation of DCEP plan as well as on
the implementation of DCEP on gender, technology, and climate change aspects.
6.1
There should be a provision of gender and socially disaggregated data to monitor

the progress on GSI issues. Currently not all the data are disaggregated by
gender, class caste and ethnic group wise. The first step would be to create
disaggregated data for the whole district in terms of who owns different RETs,
who is trained on what RETs etc. Collection of these data is to be the
responsibility of DCEP implementing partners with the support from national level
organizations like AEPC, SNV and others. There should be a compulsory
mechanism to include and institutionalise GSI in all the reporting communication
frameworks.
Data collection surveys need to be designed so that they do not misrepresent

data, for instance the head of a household may not be the owner of a specific
technology so this information needs to be disaggregated.
Data collection systems used by organisations including AEPC need to revise so

that they are more user friendly and systematic in order to access GSI specific
data.
It should be ensured that chosen technologies are accessible and affordable to

women, women headed households, poor and other marginalized groups. Since
accessibility and affordability of the technologies are the key variables to measure
its adoptability, appropriate measures like additional subsidies to these groups of
people should be made
Central funding sources should be sought to provide financial resources, and

subsidies for women, women headed household, poor, ethnic groups, Dalit and
other marginalized groups. Local level resource should additionally be made
available where adequate central funding is not available. Such funding sources
can include VDCs, local forest user groups, local saving credit groups and the
like.
Make sure that women and poor have equitable say in decisions making
processes in their respective institutions and networks. It is necessary to have at
least 33-50% womens representation in all institutional mechanisms created for
RETs promotion and development. Likewise, the percentage representation of
poor, ethnic groups, Dalit and other caste groups are to be in line with the
proportionate share of the population of their respective category.
125
Make sure that all technologies introduced reduce the drudgery and workload of
people particularly of women, poor and the marginalised. Since ICS is going to be
one of the popular RET for women, poor and marginalized, promotion of fuel
wood species in the local community forest might support women, poor, ethnic
groups and Dalit to get regular flow of firewood to run their ICSs. Plantation of fast
growing fuel wood species both in community forest and private land is strongly
recommended. For this there need to be strong collaboration with community
forest user groups and district forest office. Likewise, promotion of fodder/forage
in community forest and also in private land reduces drudgery and workload of
people particularly of women. Fodder promotion in community forestry will support
poor, women and other marginalised groups since these groups of people have
limited private land holding to grow fodder in their farm land. Such interventions
not only support to run biogas by providing animal feed but also increase the
income of the households by selling livestock and their product which in the long
run increases the RET investment capacity of the participating households.
To materialize all the above recommendations there needs to be a strong service

delivery mechanism with strong GSI support at all levels (community, district and
national level). There is a need to establish strong GSI focal unit with adequate
resources and power delegation at all levels.
For tracking the continued progress and for regular policy feedback there should
be a strong GSI inclusive monitoring mechanism which will provide strong
evidences and data for the formulation of GSI friendly energy policies at the
national level.
A more appropriate weighting system needs to be designed that more effectively

qualifies the influence of GSI on energy planning in terms of access, reduced
drudgery, Increased livelihoods and improved decision making
6.2
Technology
There needs to be research and development into ICS lifespan and efficiency.
This can be facilitated by AEPC and can be carried out by NGOs and private
sector. As with current standards the lifespan of ICS is 3 years and efficiency
fairly low albeit greater than traditional cook stoves. With ICS lasting longer and
more efficient it would mean less stress on the dwindling forest resource as well
as on the scale of interventions required to replace the defunct ICS. Overall it
would add efficiency to the natural and financial resources.
While designing energy system, make sure that the supply meet the demand
which will naturally increased over time in most of places. Furthermore, it is
essential to design energy system not only considering demand for basic service
126
like lighting but also consider power requirement for operating income generating
activities which can enhance livelihood of community members.
There is a need to assess and monitor energy systems to ensure systems can
adapt to anticipated climate change impacts. Similarly, there is need to implement
demand side management as adaptation measure.
The concern district agency should make conductive environment and encourage
private companies for development of RETs in Ilam. Special focus should be
made to harness hydro resource of Ilam.
Research and development of improved biomass stoves needs to be carried out

that so that stoves that use fuel other than wood can also be utilised for water
boiling, preparing feed for livestock etc at greater efficiencies.
LPG selling points need to be expanded in more places (especially in rural areas)
in the future to meet its increasing demand. For this, the private sector can take
the lead.
National RET programmes such as MGSP or the IWM programme could look at
the vulnerability of RE systems and revise feasibility studies to include analysis of
climate vulnerabilities and R+D could be carried out to look at climate proofing
technologies
6.3
Climate change
Land use and other socio-economic issues are more influential in the district than climate
variability and its impacts. However, future impacts of climate change are likely to
aggravate existing problems. The recommendations have been made based on the
current understanding of the climate situations with limited information available and
future uncertainties.
Installation of weather monitoring stations in representative manner in the district,

particularly in the sub-tropical climate zone in the Siwalik region. DDC should ask
support from Department of Hydrology and Meteorology in this regard.
Raising awareness among communities and stakeholders in the district on climate

change, impacts on different sectors and systems such that they are able to
devise appropriate actions. Knowledge products like catalogues, brochures,
audio, & video documentary, street drama can be used for awareness raising
purpose.
127
Conservation of forests and watersheds as no regret options in the context of

uncertainty of climate change impacts potential in future. This needs to prevent,
mitigate and correct mal practices such as slash and burn for Chiraito cultivation,
forest clearance for other purposes etc. Promotion of agroforestry is one viable
option considering growing tea states in the district. DFO and forest users need to
take leadership while DEEU of DDC should facilitate the process.
Monoculture on Broom grass and other crops should be improved to diversify

cropping patterns. Ground coverage by a single crop (such as Broom grass)
prevents regeneration of various light demanding species such as alder which is
major source of fuel wood in the district.
District Forest Office has identified over 3000 hectare land to be reforested; which
needs to be speeded up through community participation to increase the resource
base in the district. Siwalik regions were reported to be under greater pressure of
deforestation and export of timber a complaint made by stakeholders. So,
prevention is necessary to ensure that only allowable cut is harvested.
Diversify crops and switch to different crops particularly to cash crops enabling
communities to increase income. This is optimistic sign in the course of adaptive
capacity. However, precaution on carrying capacity and fertilization systems is
necessary. District Agriculture Development Office would be worth considering the
strategic crops.
District should have specific disaster risk reduction plan including hazards
associated with climate variability in the district. This should consider the risk to
energy resources and technologies such as hydropower stations and distribution
systems.
Water resources should be managed through integrated watershed management

approaches promoting multiuse water systems where possible. Promotion of
micro hydro and ensuring community participation in the watershed management
through appropriate mechanisms such as payment of ecosystem services should
be the priority.
Appropriate land use is undergoing change and planned land us is necessary.

This issue attracts strong policy supported by public awareness. Ongoing
development such as construction of roads needs to account for damages to the
resources. Strong enforcement of EIA and IEE are necessary with functional
mechanism of monitoring for impact mitigation.
128
References
AEPC, 2009a: Renewable Energy Yearbook. Alternative Energy Promotion Centre,
Kathmandu
AEPC, 2009b: Subsidy Policy for Renewable (Rural) Energy, Alternative Energy
Promotion Centre, Kathmandu
BSP, 2009a : Biogas Users' Survey, BSP Nepal, Kathmandu, Nepal.
BSP, 2009b: BSP Year Book 2009. BSP Nepal, Kathmandu, Nepal
BSP, 2010: Biogas Resources in Nepal
CBS, 2001: Population Census. Central Bureau of Statistics, Government of Nepal
CMS, 1999: Socio-economic Study of Solar Home Systems Target Groups, Impact of
SHS and SHS User Survey 1999. Report submitted to Alternative Energy Promotion
Center/Royal Danish Embassy, Kathmandu.
CRT/N,2010 a : Hydro Resources in Nepal, Centre for Rural Technology Nepal
CRT/N,2010 b: ICS Resources Nepal , Centre for Rural Technology Nepal
Denton, F., M. O'Neill, et al, 2008: Adapting to climate change in Africa: The Role of
Research and Capacity Development. Washington DC, World Bank Institute.
District Ilam - Map. http://himalaya.socanth.cam.ac.uk (accessed 2011).
District Profile,2008/09: District Profile of Ilam .Central Bureau of Statistics, Government
of Nepal
Ecosecurities & Winrock International Nepal, 2003: Biogas Support Programme: Project
Development Document. Report submitted to Biogas Support Programme, May 2003
(unpublished).
EPS, 2010:Study to Determine Outline Plans for Eliminating Energy Poverty in Nepal.
Practical Action, Kathmandu, Nepal.
ESAP, 2003: Productive End-use and Impact/Assessment of SHS Dissemination
Programme, Energy Sector Assistance Programme, Nepal
FAO. Wood Energy Planning Report.
Government of Nepal Department of Hydrology and Meterology (DHM). Climate Data.
1975 - 2005.
GoN,2009: National Adaptation Programme of Action. Ministry of Environment,
Government of Nepal.
ISRC,2010: District & VDC profile of Nepal 2010. Intensive Study and Research Centre
2010.
IPCCC. Emissions Factors.
IPCC, 1996: Revised Guideline for National Greenhouse gas inventory.
IPCC, 2001: Impacts, Adaptation and Vulnerability. Contribution of working Group II to
the third assessment report of IPCC. Cambridge University Press, Cambridge.
129
ITDG & ITC, 2002: Pinthali Micro-hydro Project Nepal: A Sustainable Livelihoods Case
Study, ITDG Publications.
NCVST,2009: Vulnerability Through the Eyes of Vulnerable: Climate Change Induced
Uncertainties and Nepals Development Predicaments, Institute for Social and
Environmental Transition-Nepal (ISET-N, Kathmandu).
PAC, 2010: Guideline for Integration of Climate Change and Gender and Social Inclusion
into District Energy Plan. SNV, Kathmandu.
Paul P. Craig, Gadgil Ashok, Koomey G. Jonathan, WHAT CAN HISTORY TEACH US?
A Retrospective Examination of Long Term Energy Forecasts for the United States.
Pokharel, S. (2002). Energy economics of cooking in households in Nepal. Energy 29
(2004) 547-559. www.elsevier.com/locate/energy (PDF version of document downloaded
on November 05, 2008)
Practical Action, 2009: Temporal and Spatial Variability of Climate Change over Nepal
(1976 - 2005).
Practical Action 2010: Impacts of Climate Change: Voices of people, Practical Action
Nepal Office, Nepal
SNV, 2010: "District Climate and Energy Plan (DCEP) Preparation Guidlines." SNV,
Kathmandu.
Spalding-Fecher, R., Clark, A., James, B. 1999: Economic Assessment and Development
edited). 2002. Developing Energy Solutions for Climate Change: South African Research
at EDRC. Energy and Development Research Center, University of Cape Town, South
Africa.
SWERA, 2006: Solar and Wind Energy Resource Assessment,
UNDP, 2004: Makwanpur Distric Disaster Management Action Plan. UNDP
UNEP, 2007: Environment and Vulnerability, Emerging Perspectives, UNEP
WECS, 1994: Energy Resource and Consumption Profile on the Central Development
Region of Nepal. Water and Energy Comission Secretariat, Government of Nepal
130
Annex 1: FGD Tools

(1) Checklist for Focused Group Discussions
Social information related Questions
List of participants
What are the different marginalised groups in the community?
Categorise the marginalised group according to economy level
What is their main source of income and amount by marginalised, gender and economy
level
What is their education level by marginalised, gender and economy level
What is the trend of girls education level over the five years period?
What is their main energy source by marginalised, gender and economy level
Location of health posts what are different service one gets there and energy use
Location of school and energy use situation
Energy related
What kinds of RETs exist in the community? Their uses and benefits?
What is the source of energy for technologies used? What resource is abundant/scarce?
What has been the situation of the different energy resources in terms of availability the
last 5 years
What has been the situation of the different energy resources in terms of price the last 5
years
Situation of operation and maintenance especially in the case of public/community owned
systems
Availability of spare parts if not where do you go for collecting them what is the lag-time
before the system is in operation again
Who is involved in the operation, maintenance, management, repair and collection of
tariff (also give by marginalised, gender and economy groups)
131
What are the problems encountered with respect to availability of energy forms;
sufficiency, reliability, operation maintenance, replacement, of the technologies and how
did you address it?
If you have/ will have sufficient and reliable energy source for operation of different end
use enterprises, what kind of opportunities do you see in your region??
Who is involved in the management of traditional energy resources and who is involved in
the management of current energy sources that you use now?
Which RETs are most suitable for your community and why?
Who promotes RETs in your locality?
Do you have information about available subsidies for various RETs?
What is your perception on present subsidy delivery mechanism? Are you satisfied with
the present mechanism and amount? (marginalised, gender and economy level)
What could be the alternative mechanism to benefit the women, poor, Dalit and ethnic
groups?
Do you think that RETs help in improving quality of life of the women, poor, Dalit and
ethnic groups? E.g. time saved improved education of the children etc.
Do you have any suggestions on how women, poor, Dalit and ethnic groups will have
easy access to RETs?
Climate Change and energy
Exposure and hazards relating to climate change:
Have the communities perceived change in temperature, precipitation, season and other
climate components over the years (as much as in last 30 years)
What are the extents of the changes?
How have the changes occurred?
What are the major hazards related to climate change?
Sensitivity assessment
What are the impact of climate change on key energy supply and access?
132
What are the magnitude, frequency and seasonality of impacts of climate change on
energy?
What are the response measures of the community to impacts of climate change?
Adaptive capacity:
Are sources of feed stock/energy fuel sensitive to climate change and variability?
Is the availability and access sustainable/affordable?
Will the demand increase/decrease in the future climate scenario? (If yes, see the Energy
resource vulnerability)
Which one is the best alternatives that community/industry will prefer?
What are the options of the community to deal with impacts of climate change to satisfy
demand?
What are the gaps between needs and availability of resources?
Planning for adaptation
What are the priority actions for securing resources, livelihoods?
What resources are necessary to implement adaption plans
Who are the stakeholders involved in planning and adaptation of the plan?
What is the composition of the stakeholders in terms on women (institutions), Dalit
(federation) and ethnic (federation) and poor?
Institutional Aspects
Opportunity of Trainings and who conducts them
What are some of the current strategies to involve different social and gender groups in
terms of developing skills, maintenance and their overall management?
Who (in terms of gender, class, and ethnic group) has got most of the training for what
technologies and what should be improved in the future?
Existence of after sales services
Impact on Livelihoods including income if applicable?
Availability of financial institutions (community based, district level etc)?
133
Benefits
Comparison with previous technologies/energy forms in use (to be collected for
marginalised, gender and economy groups):
Health (smokeless kitchen through the use of clean energy),
increased savings
Saved time (contribution to education (be it child education or for adult literacy),
Decreased drudgery (ease of work)?
environment (neighbourhood/local)- increased greenery
What are some of the social /community benefits from the use of RET?
Positive/negative impact on household economy?
Acceptance
Are you satisfied with the technology in use?
If not why and how would you address it? What do you expect from the government?
What do you suggest for improving the situation?
How do you see your communitys role in addressing the energy problem in your place?
Social and natural resource map:
Social map of the VDC - highlighting main settlements by different caste and ethnic
group, economic class and women headed households if significant in the area energy
(mainly for lighting & cooking) use in practice etc.
Main occupation (may indicate scale of energy demand in future) of the community,
migration pattern if any (by gender, economic class and ethnicity if possible)
Natural resource map of the VDCs (highlighting forests, rivers with potentiality of microhydro; hazards landslides, river cutting etc.)
134
(2) Checklist for Key Informants

What is the coordination between your organization and the RE delivery organization
such as DEEU? (ESAP, AEPC, REDP)
Are there any upcoming big schemes in your sector (related or unrelated to RE) in the
district?
What do you think is the main necessity in the district (energy, water, X)
Are you able to meet all the demand of RET from the district?
Do you think if the institutional setup for delivery of RETs service is sufficient in the
district?
If not what should be done to facilitate smooth delivery of RET services in district?
In which RETs are you currently working on?
Do you have any plan to work on new types of RETs which you have not worked till now?
What are the plans and targets of your organization in the district? In RETs if it applies?
What is the trend of forest/agriculture/ water usage etc in your district?
Any climate induced hazards? Or effects of climate change noticed in the sector?
How does your organization participate in sustainable resource management?
What measures does your organization take in hazard mitigation (of the resources that
you work with)
What can you say about access of the community to the resources that you work with?
Any other views on climate and energy?
135
Annex 2 Climate Information of Ilam

The information presented below in based on Department of Hydrology and
Meteorologys data for 30 years.
Temperature (Ilam Tea Estate)
25
Maximum
Temperature
Temperature (C)
22.5
20
Mean
Temperature
17.5
15
Minimum
Temperature
12.5
10
Year
Average Yearly Rainfall (Ilam Tea Estate)
250
Rainfall (mm)
200
150
100
50
0
Year
136
Rainfall per month (Ilam Tea Estate)

600
Rainfall (mm)
500
400
1975-1984
300
1985-1994
200
1995-2004
100
0
Month
June Average Rainfall (Ilam Tea Estate)

550
450
)
m350
(m
ll
a
f
n
i
a 250
R
150
50
Year
September Average Rainfall (Ilam Tea Estate)
600
500
) 400
m
(m
ll
a
f 300
in
a
R
200
100
Year
137
Average Yearly Rainfall (Himali Gaun)

300
250
200
)
m
m
(l
la
f
n
ia
R
150
100
50
0
Ye ar
Rainfall per month (Himali Gaun)

1000
900
800
700
)
m 600
m
(l
l 500
a
f
in 4 0 0
a
R
1 9 7 5 -1 9 8 4
300
1 9 9 5 -2 0 0 4
1 9 8 5 -1 9 9 4
200
100
0
M o n th
June Average Rainfall (Himali Gaun)

800
700
600
)
m
500
m
(l
la
f
n
ia 400
R
300
200
100
Year
138
September Average Rainfall (Himali Gaun)
139
Annex 3 Summary of Findings from VDCs

Communities in all the VDCs and respective key informants have experienced and
perceived ups and downs in rainfall. This has reduced the production capacity of energy
resources such as forests and water. However, there are some positive observations on
livelihoods such as oranges can do well in higher altitudes than before and there have
been introduction of new crops that supported for household income. New weeds,
diseases and insect pests have been observed in crops that may be with or without
association with climate variability. This had adverse impact on production including
potential adverse impact on energy sources. Some coping and adaptation information
were available such as availability of warm clothes helped to cope with sudden snow fall
and decrease in temperature.
The information on climate induced hazards is not uniform across the district. In the lower
altitudes such as in Siwalik hill range, floods and fire hazards are experienced increased.
In the middle mountain range they were reported decreasing. It seems that hazard
advancement is been function of land use than the impacts of climate variability in the
district.
Future uncertainties are very high as communities lacked ability to perceive. General
perception from both communities and stakeholders consulted were as below:
Rainfall Patterns: might go further erratic in future
Power production: uncertain future supply of energy, LPG import from India
Drinking water supply: Uncertain future supply of drinking water
Agricultural production: Uncertain livelihoods/energy resources
Temperature variations: may rise due to increasing number of industries and socioeconomic activities in the district
Energy demand: Changes in energy uses and demands as a result of temperature
variations
Energy supply: biomass availability, hydro power production,
Change in agricultural crops: Agri. Residue not suitable for burning purpose in
Somalbung tomatoes, tea, broom (cash crops!)
Health risks: Mosquitoes, extreme heat and cold reported in all field visits
Fuel prices:
140
Energy supply/demand: uncertainty in future fuel mix due to changing fuel price
Migration: Increased income from abroad, leading to departure of key skills from district
Communities have used rainfall, warmth or coldness, wind properties, sunshine and
weather induced hazards as indicators. Perceptions have been based on their livelihood
strategies and sensitivity to the particular weather parameters. There is lack of distinction
between desertification and impacts of climate change in all the VDCs. Land degradation
issues are equally important for the observed consequences in the environment.
141
(1) Samalbung VDC (Eastern Middle Mountain)

Somalbung VDC is located in the east of Ilam on the Indian border. The main ethnic
groups in the district are Rai, Limbu, Tamang, Pradhan and Lepcha.; The VDC is
connected by means of several earthen roads. Most of the Wards in the districts have
now been connected to the national grid.
Population
Average HH size
Total no of HH
Total population
Male
Female Source DP 2010
2001
5.1
873
4452
2259
2194
projected for 2010

1053
5368
2722
2645
Energy Demand and Supply

Energy Access information by Ward in Samalbung VDC
Ward No Ethnic
No
of Groups
HH
LPG Electricity fuel wood

HH HH
Rice
Solar Peltric
cooker HH
Biogas Kerosene
HH
% HH
81
Newar,
35
Chetri,
Magar, Rai,
70
Kattus,
Chilaune,
Malta Utttis
30%
75
Tamang,
Chetri
20
70
Kattus,
Chilaune,
25 %
155 Subba, Rai

Chetri
30
40
Chilaune,
Malta Utttis
20%
60
249 Chetri
Subba Rai
50
25
Chilaune,
Malta Utttis
siris
13
1 Set for 3
Electricity
to 12 HH
50
52
Lepcha, Rai 2
Tamang
Sakhuwa
mena chilune,
chiuri
100
62
100
85
Chilaune,
Malta Utttis
Chilaune,
Malta Utttis,
Sris kattus
Rai
Tamang
Rai
Tamang
90
130 Tamang,
Rai, Magar
72
Brahman
Tamang
Rai
20
12
12
50
Chilaune,
Malta Utttis
60
70%
Uttis Chilaune
30
142
Electricity
Electricity is provided through the National Grid and peltric sets and is present in all
wards except for 5, 6 and 7. Electricity is used for lighting as well as entertainment and
mobile phone and battery charging. The average expenditure on electricity is NPR 300400 per month. The use of electricity to operate rice cookers is also popular in particular
in wards number 1, 2, 3 and 4. In the past solar energy was used for lighting and
charging of phones and batteries, however this has become less popular with the arrival
of the national grid. Many households have sold their solar systems once they are
connected to the grid. Overall it was felt that available hydro resources were
underexploited, mainly due to the dependence on the Sldhi Khola, which has seen
reduced water flow quantities due to low rainfall
Lighting
The main sources of energy for lighting are kerosene and electricity. Electricity comes
from either the national grid or peltric sets. High wattage CFL (up to 100W) are being
used as the VDC is located at the end of the transmission network, resulting in a low
output from the poor distribution voltage (110V). Kerosene is imported from across the
border in India at an equivalent cost of NPR 500 per month the consumption rate is about
5 litres per month. However, with the increase in HH electrification the use of kerosene
for lighting is reducing.
Space Heating
Space heating is almost exclusively through charcoal, which is present in almost all HHs
in the district. Second source was reportedly fuel wood. In most instances cooking and
space heating is utilized together.
Cooking
Some fuel wood is being used for cooking for the family as well as for preparing food for
livestock and for alcohol production. Fuel wood is sourced from around the home and in
nearby forests. There is a reducing trend in the public forests, whereas private forests are
on the rise. Both traditional and improved cook stoves are being used in the area. The
average cost of fuel wood in the area is NPR 640 per peel, and the rate of consumption is
200 bhari for a small family and 500 bhari for a larger family. Recently there has been an
overall trend away from fuel wood towards other sources. This is because of the difficulty
and time necessary to collect wood as well as dwindling fuel wood reserves as forests are
being cleared for tea plantations. The use of LPG in particular is on the rise; currently
around 30% of households in Somalbung are using LPG for cooking. The cost of LPG is
around NPR 1250 in Nepal and NPR 960 equivalent when purchased in India. The rate of
consumption is around 1 cylinder every 3 months. Biogas technology was seen as a
promising technology for cooking as most households own livestock to provide manure to
143
operate the plants. However the implementation of this technology has not been as
successful as anticipated which according to member of the VDC was down to a lack of
promotion and information. As mentioned above, the use of electricity is widely used in
wards 1,2, 3 and 4 for powering rice cookers.
Asked to rank available cooking fuels in order of preference, irrespective of price, LPG
was the most popular, followed by biogas and then electric cookers; lowest on the list
were charcoal, followed by fuel wood as the least preferable option. It is clear that the
community prefer fuels that are easy to source and clean and simple to use. However, it
was also noted that choice of fuel is dependent on price. For example, if free or
comparatively much cheaper fuel wood can be sourced, it would be chosen over LPG. In
certain situations, such as making tea, where starting a fire takes considerable effort,
LPG is often used regardless of the price difference.
Climate change
Trend
According to the experiences of the community the weather is becoming unpredictable,
the winters are becoming shorter but the intensity of the cold is increasing. The summer
season is also perceived to be hotter than in the past. This information is different to
information from meteorological stations in Ilam and Kanyam Tea Estates.
Rainfall patterns have also changed, erratic rainfall seems to have increased significantly;
when it comes it rains more than in the past and there is bigger gap between two
successive rainfalls. It has affected water springs resulting into early drying up and river
discharge levels go higher during rainfall periods and decrease sharply shortly
afterwards.
Impacts
Changing rainfall patterns have affected crops adversely. Some forest products were also
reported affected, particularly Broom grass and other fodders. In recent years oranges
have been seen in high altitudes which suggest an increase in temperature and upward
shift of climate zone.
There were not any major climate induced hazards reported in Somalbung. However
there has been a reduction in the frequency of landslides. In the past deforestation made
the area prone to landslides. However as the area has been covered by tea plantations,
the landslides are reduced reportedly. However, communities have observed less water
available during dry seasons as the recharge of watersheds, as they perceive, has been
disturbed due to intense shorter duration rainfall increasing surface run off.
144
Livelihood strategies
Somalbung VDC has a diverse economic base, with a large tea industry as well as other
agriculture for cash crops and ordinary crops. Around 80% of the households also receive
income from remittances from abroad. The communities have developed the ability to
switch from one crop to another, making them more adaptive to external factors. Due to
unreliable and insufficient sources of energy people have had to adapt to using a wider
range of technologies, resulting in increased energy costs.
Livelihood strategies by ethnicity
Ward
No
1
Employment %
Foreign
Service
Labour
12
5
12
85
12
81
12
80
12
86
12
86
12
85
12
85
12
12
79
Agriculture
83
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Janjati
Others
Employment by ethnicity
NoService
employment
90
50
10
50
80
70
20
30
90
90
10
10
60
60
40
40
100
100
Agriculture
70
30
70
30
80
20
70
30
100
100
100
100
90
10
90
10
20
80
90
10
90
10
10
90
90
10
90
10
50
50
Gender Issues
Currently about 75% of fuel wood collection in the VDC is done by woman. A large
number of male members of the community work abroad for foreign employment,
resulting woman becoming more influential.
Seasonal Activities Female
5 years Earlier
Summer
Pick tea leaves
Ginger collection
Off season vegetables
Apply fertilizer in the
tea garden
Maize farming
Floriculture
Winter
Fuel wood collection

Sottar Sorne
Sita Banne
Vegetable farming
Chiya o Jhisne Hrasne
Knitting and tailoring
Presently
Summer
Pick tea leaves
Akbare Griming
Ginger farming
Apply fertilizer in the tea
garden
Floriculture
Winter
Vegetable farming
Sottar Sorne
Sita Banne
Knitting and
tailoring
145
Seasonal Activities Male

5 years Earlier
Summer
Plough the farm
Cutting timber
Collect fertilizer
Winter
Tea planting
Akabare planting
Millet planting
Presently
Summer
Ploughing the farm
Clean the tea garden
Cut timber and collect
Winter
Pick tea leaves
Apply insecticides
Pick cardamom
fuel wood
Carrying fuel
wood
Repair the cattle
shed
Trimming the tea
plants
Patato planting
Maize sowing
Apply
insecticides to
tea and flower
Clean tea garden
Repair cattle shed,

Katera and home
Plantations
Purchase household
goods
Collect tea leaves

Pick cardamom
and akabare
Purchase salt,
kerosene
Akabare farming
Preparing manure
Purchasing
fertilizer,
insecticides and
seed
Repair roads
Repair and
construct house
Ranking of energy technology for cooking ( if cost are not considered)

LPG
Bio gas plant
Electric Cooker
Charcoal Stoves
Fuel wood
From above ranking, it shows that the community members prefer the energy technology
which are easier to use and which are clean in handling. However, the preference of
energy technology for cooking is highly influenced by price of energy that pay. If they can
get fuel wood from their own source which they do not need to pay or much cheap than
LPG then they still prefers fuel wood for cooking. However, in certain case like making
cup of tea, it requires lots of efforts, time to use start fuel wood, then in such case, they
prefers LPG even if LPG is expensive than Wood fuel.
146
Institutes/Organisations:
School
Health post
Small Farmer Support
Ethnic Group focused - Janjati Dalit forums
Anku Danda Krishak Sanstha
Maiti Nepal, Mahila Adhikar
147
(2) Mahamai VDC (Siwalik Hill range South-west)

FGD meeting in Mahamai VDC-7 ; Participants of the meetings
S.N
Name
Til Bikram Tumbahangfe
Tara Giri
Chandra Maya Limbu
Tulashi Poudel
Hom Bantawa
Dipak Niraula
Tewat Bhattarai
Mandan Niraula
Bhupendra Dhungana
Dhan Bahadur Magar
Dorje Tamang
Bhim Bahadur magar
Lok Nath Bharati
Binod Shrestha
Ser Bahadur Magar
Man Bahadur Rai
Address
Mahamai-4
Mahamai-7
Mahamai-3
Mahamai-7
Mahamai-7
Mahamai-7
Mahamai-7
Mahamai-7
,,
,,
,,
,,
,,
,
,,
,,
Hazard Calendar (Nepali BS Calendar)

S.N
Mazor
Hazards
Flood
Less
sunshine
Forest fire
Too hot
Diseases
Thunder
Cold wave
Windstorm
Landslide
Frost
Hailstones
Lightings
Months
1
2
10
11
12
Crop Calendar
Crop
Paddy
Maize
Millet
Ginger
Month (Nepali calendar)

1
2
3
4
Cultivate
Harvest
Cultivate Harvest
Cultivate
Cultivate
7
8
Harvest
10
11
12
Cultivate
Cultivate
harvest
Harvest
148
Notable hazards in the past

a. Flooding: 2022 Chaitra, 2025 Ashoj, 2025, 2034, 2067
b. Earthquake: 2045
c. Landslide: 2066
d. Forest Fire: 2049 (ward no 1, 60-65 households damaged) No memory on forest
hazards but almost annual occurrence was reported.
e. Hailstones: 2054
Energy Source Prioritization:

Solar
Solar
--
Fuel wood
Wood
fuel
Fuel
wood
-
Micro
hydro
Solar
Pico
hydro
Solar
Microhydro
Pico hydro
Biogas
Kerosene
Fuel
wood
-
Solar Tuki
Biogas
Kerosene
Solar tuki
Solar
Solar
Solar
Fuel
wood
-
Biogas
Fuel wood
Fuel wood
Biogas
Biogas
-
Kerosene
Kerosene
Biogas
-
Solartuki
Solar tuki
Biogas
Solar tuki
RETs status:
Biogas: about 2% of the total VDC population use. Use mainly for cooking. Supported
by Sana kisan, Siddakali and Sahara Nepal
Micro hydro: not available, there are rivers but not suitable for micro hydros
Peltric set: not available
Improved Cooking stove: not so applicable
Solar: about 270 Household use it provided by Bionic and other private companies
Solar Tuki: 75-80% of the population use it.
Main Income source in the VDC: Broom grass, ginger, paddy and timber
149
Household energy demand:

a. LPG gas: 3 HH use it, mainly for cooking, 1,325 NPR/cylinder, 1 cylinder last for
about 3 months
b. Wood fuel: Used for cooking and livestock feed preparation, takes about 3 hours for
collection, the species for Wood fuel consist of sal, saj, karam, dabdabe and bamboo
species. The total consumption of Wood fuel 1 bhari/day with family member ranging
from 3-5 and 2 bhari for family members of 5. The local cost of Wood fuel is 50-100
NPR/Bhari
c. Charcoal: cooking, space heating. Almost every household use it.
List of kutani pisani mills operated through diesel
S.N
Ward number
Number of plants
1
2
2
3
3
4
2
5
4
6
4
7
7
8
10
9
6
Note: Each plant use about 350 liters of diesel/month
Climate change perception
The perceived climate change in the area by the people include
Less rainfall
Unpredictable rainfall - not rainfall in time
More intense and irregular rainfall during summer
Water sources drying up
Very cold during winter season
Decrease in production of agriculture crops
More intense flooding
150
Daily Activities (male and female engagement with respect to time)

Time
4 AM
4:30 AM
5
5:30
6
7
Male Activities
Wake up
Fodder to livestock
Tea
Work in agriculture land
8
9
,,
Eat food
10
11
,,
,,
12
1 PM
2
3
4
5
6
7
8
,,
Busy in agriculture land
,,
,,
,,
Rest
,,
Eat food
,,
Female Activities
Wake up
Cleaning house, light fire, make tea
Make breakfast, feed to livestock
Prepare food, send childrens to
school
,,
Eat food and send childrens to
school
,,
Cleaning, bring water, food and
water to livestock
,,
Prepare snacks and feed everyone
,,
Prepare food and other things
,,
Provide food to everyone
,,
,,
,,
9
Resting, TV watching
Resting
10
Bed time
Bed time
Note: Generalized daily activities without considering seasons.
151
(3) Sakphara VDC (middle mountain west border)

Total Area: 37.65 sq.km
Total Population: 4220
Elevation: 224-2268 M
MSL
Total Household: 717

Size of population and Growth rate: 3004 population in 2048 B.S (DDC). 3,547
population in 2058 B.S (DDC). Population growth rate: 1.66%. 4,220 population (Male
50%, Female 50%) in 2064 B.S (NCDC)
Population growth rate in 5 years is 1.18%
Household by religion: (Source NCDC 2064)
Hindu: 352
Kirat: 309
Buddhist: 47
Christian: 9
Household by Caste: (Source NCDC 2064)

Rai: 340
Brahmin/Chetri: 113
Newar: 83
Biswakarma: 64
Tamang: 49
Limbu: 39
Magar: 16
Darji: 10
Khawas: 1
Gurung: 1
Sarki: 1
Present Land use: (Source NCDC 2064)

S.N
Landuse
Bari
Khali Jamin
Degraded forest
Khet (irrigated land)
New forest
Old forest
Tea Garden
Rivers
Landslide
Total area (Sq.km)

5.46
0.52
3.23
3.86
0.12
21.95
0.04
1.65
0.66
Income source of VDC (Field visit 2011):

Cash crop: broom grass, ginger, potato,
Main agriculture crops: Paddy, Maize, millet, mustard, phapar
Livestock: cow, goat,
152
VDC RETs and energy use: Source NCDC, 2064

Details
Ward number
1
Total
Kutani pisani mill
Peltric set HH users
48
2
14
34
LPG user (HH)
Biogas user (HH)

Solar users (HH)
Wood fuel
(Bhari/day)
14
1
consumption 116
14
18
44
164
50
50
31
47
32
36
22
548
Micro hydro: (source Field visit 2011)

Name of the project: Mawa Khola Micro hydro
Total capacity: 33 kW
Beneficiaries: 290 HHs
Charge: 40-50 NPR/Month
Current use of MH: Lighting, Mobile charge, TV, Electric rice cooker and water
boiling, Radio etc.
MH based feasible enterprises (Field visit 2011):
153
Kutani Pisani Pelani Mill

Saw mills of small size
Cold storage for agriculture products
Dairy industry
Telephone tower
Computer institute
Community Forest: 3 community forest covering 985 Ha.
1. Ranidhara Community forest, 495 Ha., Main speicies : Sal, Khayar, Saaj, Siris,
Kadam, Hallude
2. Ramite Community Forest, 300 Ha, Main Species: Sal, Karma, Asna, Chilaune, Harro,
Barro, Satisal, Siris, Kumbhi

3. Nunsari Community Forest, 190 Ha, Main Species: Sisoo, Khayar
Government Forests: 14 government forests covering 355 Ha.

Ward no.
Name of the forest
Total area (Ha)
Khawana Pakha
50
Khawana
20
Rate Budhaure
25
Khawana Jungle
75
Khardare Jungle
40
Khomla Jungle
7.5
Bachala Kharka
25
Kurine Bwase
15
Dadelo Pakha
25
Khawana
10
Rate pakha
25
Rani patal
12.5
Hukse
15
Kopche
10
154
Climate change as perceived by the people (Field visit 2011):
There is increased in number of mosquito in the area which was not used to be
common in the area. Also the mosquito have adapted to the cold season.
The local water sources are drying up.
There used to be a rainfall in every month in earlier years but the rainfall in the area is
irregular and intensive
There is increased in hotness during summer and increased in coldness during winter.
There is increase in diseases in Cardamom and broom grass.
Information from Field visit and interactions (FGD in Ward No.2, Pakhagaun)
Major caste of the VDC: Rai, Tamang, Limbu, Bahun, Chetri, Gurung, Magar,
Shrestha, Kami, Damai
Education Status: 70-75% literate in the VDC
Health post: The distance to health post (1) is about 2 hours and (2) about 4 hours
walk in Morang district.
School: The distance to school is as followings
(a) Primary school: 15 minutes walk
(b) Secondary School: 15 Minutes walk
(c) Higher school: Morang & Chisapani
Energy Sources:
a. Micro Hydro Users: 39 households including 1 school, The main use of Micro hydro
include Mobile charging, Radio and TV
Advantages of Micro hydro as reported by women villagers are,
Reduction in kerosene use
Support in child education
Positive impact on health
No smoke in cloths
b. Solar: 3 household together with Micro hydro, 20-25 households without Micro hydro
155
c. Solar tuki: 20 househols

d. Wood fuel: About 50% population use Wood fuel from their private forest while 50%
use from community forest. The average use of Wood fuel is 2 bhari/day which is used
for cooking food, alcohol making and livestock feed preparation. The Main tree speices
used for Wood fuel consist bhogote, ankha taruwa, saaj, chilaune, hade, putali kath,
kadam, siris, They have perceived the change in availability of Wood fuel. In earlier
days they used to collect 2-3 bhari/day but at present they collect only 1-2 bhari/day.
The area of forest is decreasing as reported by the villagers
Climate change perceptions: The climate change impacts as perceived by the people are as
followings
These days too hot during summer and too cold during winter
Water sources are drying up
Intense flooding and landslides
Increase in dry season
Future impact of climate change as reported by villager may be
Decrease in forest cover
Decrease in agriculture production
Increase in dry season
Increase in soil erosion
Misquotes have increased. They were not observed in the past. Misquotes have been
able survive even during winter season. Water springs are dwindling down and drying
up earlier. It used to rain almost in every month but now there are bigger gaps. When it
rains it rains more than in the past. Summer is hotter and winter is colder. There is
increased disease in cardamom and broom grass. [Note: people remember extreme
events. All the consequences cannot be attributed to direct impacts of climate change
as perceived.]
Existing Community based organizations:
Saving credit group

Agro cooperatives
Jiwan Bikash Samaj
Mother's group
Community Forest users group
CFUG network
School
Micro hydro users group
156
Hazard occurrence
Flood: Shrawan-Bhadra
Less sunshine: Poush
Forest fire: Chaitra-Baisakh
Too hot: Shrawan-Bhadra
Diseases: Chaitra-Shrawan Cold wave: Pough-Magh
Windstorm: Chaitra-Baisakh-Jestha Landslide: Shrawan-Bhadra Hailstorm: no occurrence

since 8 years
Lightnings: Chaitra-Baisakh-Jestha-Ashad-Shrawan
Crop Calendar:
Crop
Plantation
Harvest
Ginger
Chaitra-Baisakh
Magh-Falgun
Broom grass
Jestha-Ashad
Poush-Magh
Millet
Shrawan-Bhadra
Mangsir-Poush
Paddy
Asad-Shrawan
Kartik- Mangsir
Maize
Falgun-Chaitra
Asad-Shrawan
Time
Male
Female
4:00 AM
4:30
Wake up
5:00
Wake up
Make tea, clean house and

dishes
6-7
Collect fodder
livestock
8-9
fodder and
collection
10-11
Eat food
Lunch
12:00- 1:00 PM
2:00 - 3:00
,,
3:00- 4:00
,,
5:00-6:00
Rest
Prepare dinner
7:00-8:00
Dinner
Serve dinner
9:00-10:00
Sleep
Sleep
Daily activities:
and
feed Make breakfast ,prepare

lunch, fodder and Wood fuel
collection
Wood
fuel
157
Participants of the meeting in Sakphara VDC

S.N
Name
Address
Manoj Rai
Sakfara-4
Rajendra Kumar rai
Sakfara -4
Biswanath Dhakal
Sakfara-7
Vim Bahadur Rai
Sakfara-4
DIpak Rai
Sakfara-4
Tanka Mani Rai
Sakfara-2
Ganga Maya Budathoki
Sakfara-2
Durga Devi Rai
,,
Bishal Rai
,,
Shiva Kumar Rai
,,
Santa mani Rai
,,
Yam Bahadur Rai
,,
Dik Bahadur Rai
,,
Jivan Rai
,,
Gita Rai
,,
Kabita Rai
Sakfara-1
Dipesh Rai
,,
Ramdil Rai
,,
Bikram Rai
Sakfara-2
Mahendra Rai
,,
Minu Rai
,,
Anesh bhattarai
Sakfara-7
158
(4) Mai Majuwa VDC (Middle Mountain region, north border)

Situated in North East of Ilam district. The population of the VDC comprise mostly of Rai,
Gurung, Brahmin, Sherpa and Kami. Agriculture is the mainstay of communities.
Micro Hydro
1. Maimajhuwa-7, Budhabare, Capacity: 8 kW, Beneficiary: 70 household, Made by: Kadoorie,
Status: Community owned
2. Maimajhuwa-6, Capacity: 30 kW, Beneficiary: 170 households, made by: KADOORI,
Status: community owned
3. Maimajhuwa-9, Capacity: 16 kW, Beneficiary: 133 Households (Including 1 temple & 1
School), Made by: KADOORI, Status: community owned, 16 member management
committee, 30 NPR/Month service charge
4. Peltric set
a. Maimajhuwa-4, Status: Private, Capacity: 1.5 kW, Beneficiary: 26 Household
b. Maimajhuwa-4, Status: Private, Capacity: 1 kW, Beneficiary: 14 Household
c. Maimajhuwa-3, Status: Private, Capacity: 5 kW, Beneficiary: 26 household (On the
process of
installation)
5. There are 32 household who use Micro Hydro from adjoining VDV Mabu, Triveni MH,
Capacity: 50 Kw, Made by: NCDC Ilam, Beneficiaries: >330 households
Present use of MH & Peltric set: Mobile charging, Television,
Opportunity of Use of MH and Peltric set as stated by the local people

The energy can be used in communication (Limited assess to mobile services)
Computer education can be promoted in schools and private institutions
Cooking devices can be installed for reduction in use of kerosene and Wood fuel
Feasible enterprises like furniture industry, dairy industry, paper industries and agro
industry can be promoted through use of MH & Peltric set in the area
159
Energy Source prioritization available in the VDC

Energy
source
Solar
Wood fuel
Micro hydro
Peltric set
Kerosene
Solar
Wood fuel
Micro hydro
Peltric set
Solar
Wood fuel
Micro hydro
Peltric set
Wood fuel
Micro Hydro
Micro hydro
Micro hydro
Peltric set
Peltric set
Kerosene
Energy Efficient technologies used in the VDC

1. Metallic stove: supported by Gurkha Welfare Service, Total beneficiaries: 110 households
2. Improved Cooking Stove: Supported by NCDC Ilam, Total beneficiaries: 150 households
3. Institutional Improved Cooking Stove: Supported by NCDC, Total beneficiary: 1 dairy
industry
4. Beehive briquette: 50 trained community forest members, Supported by NCDC
Climate change perceptions in the VDC

There has been decreasing trend in Rainfall and increase in dry weather. Due to increase
temperature there have been infestation of diseases in crops such as cardamom, maize,
Bamboo, some tree fodder species. Also there has been increase invasion of weeds in
agriculture land. Also some reported that there is decreasing trend in agriculture crop
production. This year they observed a heavy snowfall only after 5 years. Some of the
adaptation strategies that the local people are applying are crop diversification, water source
conservation and destruction of infected crops & plants.
As interpreted as stress communities have to switch to new crops and varieties although it
was not clear whether older (existing) crops failed or new crops available in the markets
invaded. They perceive that forest, agriculture production will decrease in future. On the other
hand, drought and soil erosion will increase.
160
Note: there has not been clear distinction between climate variability, land degradation and
other factors involved.
Hazard trend: The most devastating events that occurred in the VDC as reported by the
villagers are as follows:
Flooding: 1968.
Earthquake: 1988.
and 2000.
Snowfall: 1975 and 2000
Lightings: 2007
Landslides: 1968 and 1985. Forest

Frost: 1994 and 2005.Hailstones:
fire:
1992
2001.
Hazard calendar
Major
hazards
Flood
Less
sunshine
Forest fire
Too hot
Diseases
Thunder
Winter fog
Wind storm
Landslide
Snowfall
Frost
Hailstone
lightings
Months (Nepali Months)

1
2
3
4
10
11
Crop Calendar
Crop
Potato
Month (Nepali Calendar)

1
2
3
4
Harvest
Maize
Peas
10
11
Plant
Plant
Harvest
Harvest
Plant
161
12
12
Participants of the discussion meeting

S.N
Name
Om Gurung
Kul Bahadur Khamdak
Lok Bahadur Gurung
Iswor Kumar Rai
Dom Bahadur Gurung
Tika Maya Gurung
Dambar Ballav Sharma
Desu Kurung
Dilli Kumar Gurung
Dol Bahadur Gurung
Jhalu Maya Gurung
Chitra Bir Gurung
Uttar Bahadur Rai
Nari Maya Gurung
Manika Gurung
Jit Bahadur Gurung
Krishna Gurung
Purna Bahadur Gurung
Dilip Rai
Jalika Gurung
Prem Karki
Govinda Pariyar
Santosh Pariyar
Address
Maimajhuwa-7
Jamuna VDC
Maimajhuwa-7
Maimajhuwa-8
Maimajhuwa-6
Maimajhuwa-7
Maimajhuwa
Maimajhuwa-7
Maimajhuwa-7
Maimajhuwa-7
Maimajhuwa-6
Maimajhuwa-7
Maimajhuwa-3
Maimajhuwa-7
Maimajhuwa-7
Maimajhuwa-7
Maimajhuwa-2
Maimajhuwa-7
Maimajhuwa-8
Maimajhuwa-6
Maimajhuwa-7
Maimajhuwa-7
Maimajhuwa-7
162
Annex
Companies
Involved
in
Promotion
and
Dissemination of RETs in Ilam

SN Name of Stakeholders
1 Improved Cook Stoves
Namsaling Community Development Center
Mirmire Behani Club Kanyam Ilam
Anthonium Multi cooprative LTD Gorkhe Ilam
Samudayik Yuva Bikash Manch Soyang Ilam
Suryoday Bikash Sanstha Dhusani Ilam
SEMA-N
2 Improved Matelic Stove
Aditya Gril Udyog
3 Micro /Pico Hydro Program
Namsaling Community Development
District Energy and Environment Unit (DDC Ilam)
4 Improved Water Mill Program
Sungava Bikash Sanstha Ilam
5 Biogass
Pathivara Biogass Company
Siddhakali Biogass Company
Kanchanjanga Biogass Company
Danfe Biogass Company
6 Solar Energy
Bionic Energy Pvt.Ltd.
Everest Solar Energy Pvt. Ltd.
Kathmandu Power Company
Krishna Grill and Engg. Works
Lasersun Energy Pvt. Ltd.
Lotus Energy Pvt Ltd.
Perenniel Energy Nepal
Rural and Alternative Energy Pvt. Ltd.
Scientific Technology Pvt. Ltd
Solar Energy Company Pvt. Ltd.
Sprint International Pvt Ltd.
Surya Jyoti Company
Suryodaya Urja Pvt. Ltd.
Address
Kanyam-7 Ilam
Gorkhe-4, Ilam
Soyang-2, Ilam
Dhuseni-5 Ilam
Ilam-3 Fulgachi
Ilam-7 Dhobidhara
Ilam-7 Dhobidhara
Ilam-2
Ilam-2 Malapath
Ilam-3
Fikkal VDC and Mangalbare VDC
Ilam-3
Fikkal VDC
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
Ilam
163
Annex 5 DCEP Preparation Process

In c ep tion R e por t
P ro p o s e d m e th o d o lo g y
Ac tiv ity tim e l in e
S a m p le q u e sti o n n ai re ( w he r e n e c e ss a ry)
S t ep 1 . Pre p ara t o ry P h as e
D e s k St udy
R ev iew a ll re levan t d at a a nd info rm at io n

( en er gy plan s an d po lic ies ) fr om ce nt ra l an d
d is trict le vels
D is tr ic t L e ve l S e c ond ar y D a ta C olle c tio n

S p e ci fi c da ta fo r th e d is tri ct c li m ate a n d e n e rg y s itu a ti on a n a l ysi s
D a ta o n d em o g r ap h y , se ttl em e n t p a tte rn s, d i stri b u tio n o f se r vi ce s a nd fa c il iti e s,
e n e rg y i n fra st ru ctu re , a c ce ss im p r ov e m e nt p ri o ri tie s , g e nd e r a n d s oc i al in c lu s io n
D is tr ic t L e ve l P r ep a ra t ion P ro c e dur e s
F or m ati o n o f D C E P ta sk fo rc e Or ie n ta tio n
wo rk sh o p
S t ep 2 . M o b i lis a t io n - In t e rac t io n
a t D is t ric t le v el
So u r ce s o f i n fo rm a ti o n (s e co n d a ry/p r im a ry le v el s )
Ov e rvi e w o f th e d i str ic t :s o ci o -e c on o m i c d a ta
D a ta s o u rc e s : e n e rg y d a ta
C o n si d e ra tio n s ( p o l ic y / l e g al p r ov i si on s o f D C E P
and
p la n n in g l i n ka g e / i n te gr a tio n w i th n a ti o n a l,
d i str ic t a nd o th e r p l a ns
S t ep 3 . D a ta C o lle c ti o n
D a t a C o lle ct ion C o m pon en ts

E n e rg y n e e d s a ss e ss m en t R e s o ur ce a ss e ss m e nt In s titu ti on a l as s es sm e n t T ec h n ol o g y
a ss e ss me n t
A na ly s is
E n e rg y b al a n ce an a l ys is S e n si ti vi ty a n a l ys is -cl im a te /G IS
A d a p ti v e c a p a ci ty a ss e ss m en t R o ot c a u se a n al ys i s
T re n d a n a l ys is e tc
S t ep 4 . D a ta A n a ly s is
D at a Pr oc e s s ing
Ve r ifi ca ti on C o mp i l ati o n In te rp re ta ti on M ap p i n g
Pro b l e m s a n d Po te n tia l s A n a ly si s
D r a ft D C E P Si tu a tio n R e p o rt P re p a ra tio n / P re se n ta ti on
D i sc us si o n s a n d a p pr o va l
C o ns u lta ti o n s w i th D D C /D EE C C , A EP C /C C U a n d
SNV
S t ep 5 . F in d i n g s R e p o rt P res e n t at io n
a n d Pl a n D e s i gn W o rk s h o p
D C E P Si tu ati o n R e p or t Pr e p ar a tio n
S ce n a ri o d e ve l op m e n t ( B A U S M AS
CRS )
D eta i le d i m p le m e n ta ti o n p la n R i sk fa cto rs Fi n a nc in g
p la n ; C a p a ci ty d e ve l o p m en t p l a n M o ni to ri n g a n d
e va l u ati o n p la n
D ra ft D i stri ct C l im a te , GS I a n d En e rg y P la n
S t ep 6 . D C E P Fi n a lis a t io n .
D is cu ss i on s a n d a p p ro v a l
D is tri ct L e ve l Sta k e ho l d e rs C on s u lta ti o ns
S t ep 7 . E n d o rs e m e n t o f D C E P
S t ep 8 . D C E P Im p le m en t a ti on
S t ep 9 . M o n i to ri n g a n d E v al u at io n
Pro c e s s
D C E P Im p l em e n ta tio n b a se d o n P la n
D C EP Im p le m e n tati o n mo n i to ri ng a n d e va l u ati o n
164
Annex 6 LEAP Fact Sheet
165

District Climate and Energy Plan Ilam

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

District Climate and Energy Plan Ilam

Hochgeladen von

Copyright:

Verfügbare Formate

District Development Committee

DISTRICT CLIMATE AND ENERGY PLAN

Technical and Financial Support by

Vishwa Bhushan Amatya

Acronyms and Abbreviations

Alternative Energy Promotion Centre

Biogas Support Program

Biogas Sector Partnership Nepal

Community Based Organizations

Central Bureau of Statistics

Clean Development Mechanism

Community Forest Users Group

Centre for Rural Technology

District Development Committee

District Energy and Environment Unit

Decentralized Energy Management Initiatives

District Energy Perspective Plan

District Forest Office

Energy Sector Assistance Programme

Focal Group Discussion

Food and Agriculture Organization

Gross Domestic Product

Global Horizontal Irradiance

Gender and Social Inclusion

Giga Watt hour

Human Development Index

Intensive Study Research Centre

Improved Cooking Stove

International Non Governmental Organization

Key Informant Interview

Kilo Watt hour

Life Cycle Cost

Long range Energy Alternative Planning

Liquefied Petroleum Gas

Medium Adaptation Scenario

Micro Hydro Project

National Adaptation Programme of Action

Namsaling Community Development Centre

Nepal Electricity Authority

Non Governmental Organization

National Planning Commission

Non Timber Forest Products

Participatory Rural Appraisal

Rural Energy Development Program

Renewable Energy Technology

Solar Home System

Solar Home System

Solar and Wind Energy Resource Assessment

Strength Weakness Opportunity Threat

United Nation Development Program

Village Development Committee

Water and Energy Commission Secretariat

District Climate and Energy Plan for Ilam

0.3 The DCEP Situation Report

Gender and social Inclusion assessment

Energy Demand Assessment

Energy Resource Assessment

District Climate and Energy Plan for Ilam

The Scenario Development Energy Demand Projection

District Climate and Energy Plan for Ilam

Medium Adaptation Scenario (MAS)

District Climate and Energy Plan for Ilam

0.5 DCEP Plan

District Climate and Energy Plan for Ilam