Public-Private Partnership

The Business Case for Increasing Cleaner Energy Access in Nepal

Achyut Luitel Practical Action Nepal Office

Background Information
Inefficient cooking on open fires

Nearly 2 million people die each year prematurely as a result of inhaling polluted air from the smoke caused by inefficient cooking (WHO) Most victims are women and children

Environmental Impact- deforestation, GHG emission

Poverty, low awareness & unavailability of appropriate technology are the main causes for this situation

Practical Action Nepal Office Initiative

2011-12: BSH, DEG support for optimization of the smoke hoods and scaling-up 700 HHs 2008-10 Expansion of project with USEPA/PCIA support 1000 HHs. Continuity of the project by district IAPHF network 300 HHs Endorsement of National indoor air quality standards and guidelines (2009) 2005-07 Researching pathways to scaling up in Rasuwa (DFID, WHO support & Trust Fund support) 600 HHs Indoor Air Pollution and Health Forum formation (2005) Policy gaps study and regional sharing (2006) 2001-04 Participatory technology development in Rasuwa district, Nepal Study on problem of indoor air pollution in rural Nepal

Public Private Partnership

Project team
BSH Practical Action Universitt der Bundeswehr

Multiplier
Development Organizations Local government offices & officials Private Sector Womens community-based organizations Cooperatives

Producer
Local Entrepreneurs Private Enterprise Small local manufacturer

End-user
Biomass fuel user Households People in developing countries

Project Objectives

To create solutions for global health issue created from solid biomass fuel burning for cooking
Design & Optimize smoke hoods for developing countries and establish construction guidelines: Distribute information on website and with partners to leverage impact; Generate media awareness Scaling-up of the technology

Project period: January 2011 to December 2012

Project Implementation Model

DEG B/S/H

UNIBW

B/S/H Practical Action Nepal Office

Local partner NGO
Local Cooperatives

Practical Action Consulting

National Project Advisory Committee District Project Advisory Committee Entrepreneurs

Biomass fuel user Households

Intervention Background
Why Smokehoods?

Optimization Improve efficiency (smoke suction) 82% reduction from traditional fireplace Back-flow of smoke minimized Sustainable Technology Transfer Simple manufacturing methods. Locally manufactured adapting to local needs
heat radiation makes the kitchen space warm drying meat, vegetables creating HH income

low risk of fire hazard

Fit with different types of stoves. With improved stove it can give very clean, efficient and safe cooking solutions.

Project Framework
Nepal Project Part 1 Stakeholder Dialogue 30 Test Units Hood Improvements Part 2 Local Manufacturing 700 Hoods Revolving funds Part 3 Website Launch Communication plan Fundraising Multiplication

Project Framework
Demand

Design and Test Optimized smoke Hoods

Supply Establish sustainable Market of Smoke Hoods

Social marketing Credit facility

Capacity building of entrepreneurs manufacturing products Business management fund Support in business planning Credit Facility Quality Assurance

Establishment of revolving fund

Training on management

Knowledge Sharing

Key components of the project

Scaling-up

Social marketing

Quality Assurance

Access to credit

Capacity building

Monitoring and evaluation

Scaling-up Model
During Project

Awareness Year 1 Year 2

NGO Coop. Entrepreneurs Coop. Entrepreneurs

200 HHs
500HHs

200HHs
Loan 700HHs Product Loan Product

Seed Money

Year 3 After Project Year 4 Year 5 Year 6

100HHs 100HHs 100HHs 100HHs

800HH 900HH 1000HH 1100HH All HHs

Loan for IGA

Achievement
o Three sizes of optimized smoke hoods design developed and tested. The study on Adoption, Usage and Effectiveness study shows: o 82 percent smoke reduction; o 30 percent saving in firewood; o 7,000 people made aware on negative health and environment impact of inefficient use of solid biomass fuel for cooking o Capacity of the local cooperatives built to manage revolving fund o Capacity of local fabricators built o Demand for smoke hoods very encouraging (already achieved the target of 700) o Quality control mechanism established and made functional.

What do buyers want?

Innovative Design

Quality 5 4 3 2 1 0

Price

Flexible Large Orders

Flexibility in design

Flexible Small Orders

Before project After project

Punctuality

Learning
Local solutions can pave the way for global solutions we need to exploit these win-win possibilities. Integrated actions are required for scaling-up of clean energy technologies. Success of the project suggests need of microfinancing models, innovative social marketing, local manufacturing, and strengthening supply chain. There is need of public-private (Government, Non-government & business organization) partnership to tackle this problem. Few initiatives are in progress but looking the need, the scale of interventions is very small. To meet the demand there is need of aggressive intervention requiring huge investment*.

Way Forward
Launch interactive website www.healthysmokehoods.org which will offer anyone the opportunity to design their own smokehood Strengthen supply chain. Introduce factory profilecutting, and local assembly by builders and local metal-workers. Implement critical mass initiative for creating a first wave of public-private financing solutions for scaling-up healthy hoods The smoke hoods look very appropriate for high hills in Hindu-Kush region. Effort will be made to upscale this technology in this region.

THANK YOU