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1111
2
Scaling up biogas in Nepal: what else is needed?
3
4 Jiwan Acharya1 (to whom correspondence should be sent), M. Sundar Bajgain2, Mr Prem Sagar Subedi3.
5
6 1. Research Officer, Winrock International Nepal, Baneswor, P. O. Box 1312, Kathmandu. Tel: 4467087;
7 Fax: +977–1–4476109; Email: jacharya@winrock.org.np
8 2. Executive Director, BSP-Nepal, Bakhundole, Lalitpur, Nepal, Tel. 5529840; Fax: +977–1–5524755;
9 Email: sundar@bspnepal.wlink.com.np
10 3. Micro-finance Officer, Winrock International Nepal, Baneswor, P. O. Box 1312, Kathmandu. Tel: 4467087;
1 Fax: +977–1–4476109; Email: psubedi@winrock.org.np
2
3 Introduction Table 1 Biogas plants installed in Nepal since 1992
4
Biogas is the mixture of gas produced Phase Biogas plants installed
5
by methane-based bacteria acting First phase (1992–1994) 6824
6
upon biodegradable materials in an Second phase (1994–Feb. 1997) 13 375
7
environment that is lacking air. Biogas Third phase (March 1997–June 2003) 91 196
8 TOTAL 111 395
9
is mainly composed of 60–70%
20111 methane, 30–40% carbon dioxide and Source: BSP, 2004
1 some other gases. Biogas is colourless
and burns with a clean blue flame sim- 2.7 million households owning cattle ● A uniform technical design for all
2
ilar to that of liquid petroleum gas and buffalo (estimate 2001). The tech- biogas plants
3
(LPG) allowing for virtually smoke- nical potential of biogas plants in ● Thorough quality control and
4
free combustion. Biogas can be used Nepal is about 1.9 million: 57% in the monitoring of production, installa-
5
for cooking and lighting, refrigeration, plains, 37% in hilly areas and 6% in tion and after-sales services
engine operation and electricity gener- mountainous regions (BSP 2004). ● Continuous R&D efforts to meet
ation. To date, biogas is used mainly Currently, the Biogas Support the needs of end-users
Theme

for cooking (80%) and lighting (20%) Program has a target of increasing the ● Outreach and awareness
in Nepal. number of quality biogas plants by an programmes
The technology has been available additional 200 000 by 2009 in at least ● Financial support for end-users
in Nepal since the mid 1970s, but it 70 out of the 75 districts of Nepal. through a government subsidy of
was not until the early 1990s that the BSP has given special attention to US$70–US$150 (5000–11 000
number of installations was substan- developing appropriate biogas plant Nepali Rupees per plant)
tially scaled up by the Biogas Support designs, especially for remote and ● Stimulation of financial support
6 Program (BSP). This program was high altitude areas. mechanisms such as micro-credit
7 established in 1992 by the Nepalese, facilities
8 Dutch and German governments. Existing practice
Biogas construction companies
9 The biogas plants being constructed The challenge is to achieve 200 000 are responsible for marketing and
30 under BSP has following characteris- new installations in just 6 years; more installing biogas plants and providing
1 tics: than the total biogas plants installed maintenance and after-sales services
2 since the 1970s to date, and ultimately guarantees for at least three years
● Fixed dome – individual plant per
3 to reach the total technical potential of
household following installation. BSP provides
4 biogas in the country. It is thus impor-
● Sizes: 4, 6, 8, 10, 15 and 20 cubic operation and maintenance training to
5 tant to understand the current practices
metre all households on day-to-day mainte-
6 and modalities of the BSP.
● Feed materials: Cattle dung and nance and minor repairs. BSP’s policy
7 Key elements of the sectoral
water of regular quality control and super-
8 approach adopted by BSP include:
● Feasible up to 2100 metres vision of newly constructed plants, as
9
well as after sales service of plants,
40111 Current status ensures the quality of plants and ser-
1
2 Table 1 shows the number of biogas vices.
3 plants installed in Nepal since 1992: According to BSP, around 97% of
4 Nepal is divided into three the total plants installed since 1992 are
5 east–west bands running the full width operational. About 80% of the total
6 of the country; by the end of the third plants are of four cubic metre and six
7 phase, more than 111 000 plants were cubic metre sizes; a six cubic metre
8 installed – more on hills and Terai plant requires around 36 kg of cow
9 regions as shown in Figure 1. dung per day in hilly areas (mixed
50 Livestock plays an important role with an equal amount of water) to get
Figure 1 Geographical distribution of
1 in the Nepalese farming system, with biogas production a stove burning for 3.5 hours. This
2
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1111 increases with altitute because of the services. Table 2 shows the outreach II. Health benefit aspects
2 retention time (average duration that of MFIs in Nepal. Biogas can have significant health
3 dung remains in the digester). Around Additionally, it is estimated that benefits. According to the Integrated
4 60% of the biogas consumed is used there are around 330 000 dairy farmer Environmental Impact Analysis car-
5 for cooking. households (Winrock 2004) who are ried out by BSP for 600 biogas users
6 Annually, each biogas plant can potentially significant users of biogas. (Figure 2) and 600 non-users, four per-
7 save more than four tonnes of fire- Winrock estimates that more than cent more non-biogas users have respi-
8 wood and 32 litres of kerosene. The 800 000 farmer households in Nepal ratory diseases than those who own
9 annual time saving for firewood col- are potential customers of micro- biogas plants (3). Qualitative informa-
10 lection and cooking averages 1000 credit for the installation of biogas tion from various household surveys
1 hours in each household with biogas plants. It may not be technically or
2
carried out by BSP has revealed that
plant. Each biogas plant produces economically feasible for all dairy
3 problems like respiratory illness, eye
about five tonnes of organic, fertilizer cooperative members to install biogas
4 infection, asthma and lung problems
annually, which can replace chemical plants, but with a large proportion of
5 have decreased after installing a bio-
fertilizer. A recent study by Winrock dairy cooperative member households
6 gas plantn (Tables 3 & 4).
Nepal and others found that each bio- without biogas plants, there is a poten-
7 According to the Biogas Users’
gas plant can mitigate about five tially huge market.
8 Survey conducted in 2000 with 100
tonnes of carbon dioxide equivalent Winrock International Nepal, in
9 households, biogas can have positive
per year (1,5). The credits thus earned collaboration with AEPC/BSP, is
20111 impacts on the health of its users. Out
could provide alternative financing mobilising MFIs in order to achieve
1 of 42 respondents who had respiratory
for the sustainability of biogas pro-
2 the set target of 200 000 additional problems in the past, it was reported
gram in Nepal. More information on
3 installations by 2009, with plans for that the problem has improved for 34
biogas can be obtained from
4 further scaling up beyond that date. of them. Similarly, those who had
www.bspnepal.org.
5 Winrock International has developed problems like asthma, eye infections
6 What else is needed? manuals and has already trained more and lung problems found that their
7 than 80 micro-finance institutions problems had decreased after displac-
The existing practice has focused on
8 MFIs to finance biogas. ing dirtier fuels with biogas.
environmental benefits, subsidy, qual-

Theme
9
ity control, awareness creation etc. as
30
the main drivings. There are other per-
1 Table 2 Total membership of MFIs in Nepal (as of December 2003)
tinent issues which need attention to
2
scale up biogas in Nepal but this arti- SN Type of MFIs Number of Number of
3
cle focuses on two aspects: micro- institutions members
4
financing and health benefits.
5 1 Development Banks 9 253166
6 2 Savings and Credit Cooperatives 1786 258195
Micro-financing 3 Financial Intermediary NGOs 30 18391
7
The average plant costs about NRs. Total 1825 529752
8
9 25,000 (NRs.74~US$1), which is too Source: Directory of MFIs, Center for Micro-finance
40111 costly for some potential users to pay
1 upfront in a country where 38% of the
2 Nepalese live with US$ 1 per day (11).
3 The government of Nepal currently
4 provides subsidy through the BSP and
5 the Alternative Energy Promotion
6 Centre (AEPC). This clearly indicates
7 that the poor, who do not have the
8 cash to pay for systems upfront, can-
9 not benefit from biogas and access
50 these government subsidies.
1 Micro Finance Institutions (MFIs)
2 could provide loans to those wishing
3 to purchase biogas plants who cannot
4 pay the upfront cost. MFIs are strate-
5 gically located in the rural areas and
6 have enabled easy access through their
7 simple procedures. The total member-
8 ship of MFIs in Nepal comprises more
9 than 500 000 rural customers (12% of
60 the total households in Nepal), receiv-
6111 ing financial as well as non-financial Figure 2 Nepali woman cooking with biogasSource: BSP/Nepal

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1111 Table 3: Health benefits of biogas subsidies and information dissemina-

2 tion, should be continued.
Disease Problems in the past (HHs)* Present status of HHs
3 Since many of the accessible and
4 Yes No Improved Remained same more affluent, potential biogas areas
5 are already supplied, it is anticipated
Eye infection 72 18 69 3
6 Cases of burning 29 71 28 1 that a much higher percentage of
7 Lung problem 38 62 33 5 future plants will be sold to the poorer
8 Respiratory problems 42 58 34 8 and more remote communities. Since
9 Asthma 11 89 9 2 His Majesty’s Government of Nepal
10 Dizziness/headache 27 93 16 11 has a strategy to phase out the subsidy
1 Intestinal;/diarrhea 58 42 14 44
gradually, an appropriate credit mech-
2 *HHs = households anism for poor farmers is vital if BSP
3 Source: Biogas Users’ Survey 2000, BSP
is to successfully meet its target of
4 200 000 plants. In addition to increas-
5 Table 4 Health benefits of biogas (2) ing access to credit, the health benefits
6 biogas offers should be communicated
7 Decrease Increase No disease
to users, and to health and energy
8 Disease 20 – 80 communities.
9 Cough 53 – 47
20111 Headache 33 3 67
Nausea 5 – 95 References
1 Chest pain 15 1 85 1. Integrated Environment Impact Study
2 Lethargy 11 – 89 2002, BSP and Carbon Benefit Study of
3 Respiratory disease 41 – 59 Winrock International Nepal and
4 Malaria 8 2 92 EcoSecurities
5 Typhoid 10 4 90
2. Integrated EIA Report, 2002 Biogas
Total (%) 22 1 77
Support Program
Source: Biogas Users’ Survey, 1999, BSP 3. Annual Biogas Users’ Survey, 1999 and
2000, Biogas Support Program
Theme

4. Smith, K. et. al. ‘Greenhouse Gases from

Unfortunately, these health benefits and attract the attention of health pro-
Small Scale Combustion Devices in
are included under ‘other benefits’ in grammes, motivating them to include Developing Countries, India’ June 2000,
the reports and the health community biogas in their own programmes. The Environmental Protection Agency
seems not to have recognised the health benefits of biogas should be 5. Winrock International Nepal 2004
importance of such impacts. delivered by advocated by communi- ‘Financing Renewable Energy Tech-
During the preparation of the ties and departments. nologies: A Guidebook for Micro-finance
‘Status Report for Nepal on Household Institutions in Nepal
6 Conclusion and 6. Winrock International Nepal, 2004
Energy, Indoor Air Pollution and
7 ‘Annual Report 2003’, Kathmandu,
8
Health Impacts’ conducted by Win- recommendation
Nepal
rock International Nepal in 2003–
9 Specific and target-oriented 7. Winrock International Nepal, 2004
2004, no quantitative information ‘Status Report for Nepal on Household
30 approaches like subsidy, quality
available was found on the indoor air Energy, Indoor Air Pollution and Health
1 control, private sector involvement
quality impacts of biogas plants in Impacts’ Kathmandu, Nepal.
2 etc. adopted by the Biogas Support
3
Nepal. However, a comparative study 8. Biogas Sector Partnership Nepal:
carried out in India by Kirk Smith et al Program have lead higher additional www.bspnepal.org
4 targets of 200 000 being set. To date,
in 2000 (4) shows that in terms of net 9. Biogas Sector Partnership Annual Report
5 environmental benefits have been the
concentration of total suspended par- – 2003, 2004, Kathmandu, Nepal.
6 driving factor of biogas promotion, 10.Directories of Micro-finance Institutions,
7 ticles (flue gas level concentration
minus background concentration), bio- while important health benefits are Center for Micro-finance, Nepal
8 underemphasized. Existing successful 11.National Planning Commission, 10th
9 gas has values comparable to those Five Year Development Plan, His
of LPG, with the lowest values com- approaches, including quality control,
40111 Majesty’s Government of Nepal, 2002
1 pared to other common cooking fuels.
2 This has positive impacts on reducing Table 5 Net total suspended parti-
indoor air pollution level and the cles’ concentrations in flue gas of
3
corresponding health impacts (Table some cooking fuels
4
5 5). Fuel Total suspended
6 Thus, it would benefit the BSP pro- particle (mg per
7 gramme (and/or other parties) to mea- m3)
8 sure indoor air pollution improve- Biogas 0.25
9 ments following biogas installation, LPG 0.32
50 and promote the health benefits. This Kerosene 0.48
Crop residue 5.74
1 will both encourage biogas installation
2
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