achyut luitel - the business case for increasing cleaner energy access in nepal

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    Public-Private Partnership

    The Business Case for Increasing

    Cleaner Energy Access in NepalAchyut Luitel

    Practical Action Nepal Office

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    Nearly 2 million people die each year prematurely as a result ofinhaling 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

    Background Information

    Inefficient cooking on open fires

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    Practical Action NepalOffice Initiative

    2001-04 Participatory technology development in Rasuwadistrict, NepalStudy on problem of indoor air pollution in rural Nepal

    2005-07 Researching pathways to scaling up in Rasuwa(DFID, WHO support & Trust Fund support) 600 HHsIndoor Air Pollution and Health Forum formation (2005)

    Policy gaps study and regional sharing (2006)

    2008-10 Expansion of project with USEPA/PCIA support1000 HHs. Continuity of the project by district IAPHFnetwork 300 HHs

    Endorsement of National indoor air quality standards andguidelines (2009)

    2011-12: BSH, DEG support for optimization of the smokehoods and scaling-up 700 HHs

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    Public Private Partnership

    Project team End-userProducerMultiplier

    BSH

    Practical Action

    Universitt der

    Bundeswehr

    Development

    Organizations

    Local government

    offices & officials

    Private Sector

    Womens

    community-based

    organizations

    Cooperatives

    Local

    Entrepreneurs

    Private Enterprise

    Small local

    manufacturer

    Biomass fuel user

    Households

    People in

    developing

    countries

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    Project Implementation Model

    Practical Action Nepal

    Office

    B/S/H Practical Action Consulting

    Local partner NGO

    Local Cooperatives Entrepreneurs

    UNIBW

    Biomass fuel user Households

    District Project AdvisoryCommittee

    National Project AdvisoryCommittee

    B/S/H

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    Optimization Improve efficiency (smoke suction) 82% reduction

    from traditional fireplace

    Back-flow of smoke minimized

    Sustainable Technology Transfer

    Simple manufacturing methods. Locallymanufactured 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.

    Intervention BackgroundWhy Smokehoods?

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    Project FrameworkNepal Project

    Stakeholder Dialogue

    30 Test Units

    Hood Improvements

    Local Manufacturing

    700 Hoods

    Revolving funds

    Website Launch

    Communication plan

    Fundraising

    Multiplication

    Part 2

    Part 1

    Part 3

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    Project Framework

    Establishment ofrevolving fund

    Establish sustainable Market of

    Smoke Hoods

    Credit facility manufacturing

    products

    Capacity buildingof entrepreneurs

    Business

    management

    Support in

    business

    planning

    Training on fundmanagement

    Demand Supply

    Social marketing

    Credit Facility

    Quality Assurance

    Design and Test

    Optimized smoke

    Hoods

    Knowledge Sharing

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    Key components of the project

    Scaling-up

    Socialmarketing

    QualityAssurance

    Accessto credit

    Capacitybuilding

    Monitoring andevaluation

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    Year 1 200 HHs

    EntrepreneursProduct

    Coop.Loan

    Year 2 500HHs

    Awareness NGO

    200HHs

    700HHs

    Year 3 100HHs

    EntrepreneursProduct

    Coop.Loan

    Year 4 100HHs

    800HH

    900HH

    SeedMoney

    Year 5 100HHs

    Year 6 100HHs

    1000HH

    1100HH

    All HHs Loan for IGA

    DuringP

    roject

    AfterProject

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    Achievement

    o Three sizes of optimized smoke hoods design developed and

    tested. The study on Adoption, Usage and Effectiveness studyshows:

    o 82 percent smoke reduction;

    o 30 percent saving in firewood;

    o

    7,000 people made aware on negative health and environmentimpact of inefficient use of solid biomass fuel for cooking

    o Capacity of the local cooperatives built to manage revolvingfund

    o Capacity of local fabricators built

    o Demand for smoke hoods very encouraging (already achievedthe target of 700)

    o Quality control mechanism established and made functional.

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    What do buyers want?

    0

    1

    2

    3

    4

    5

    Quality

    Price

    Flexibilityin design

    PunctualityFlexibleSmall Orders

    FlexibleLarge Orders

    InnovativeDesign

    Before project

    After project

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    Learning

    Local solutions can pave the way for global solutions we needto exploit these win-win possibilities.

    Integrated actions are required for scaling-up of clean energytechnologies. Success of the project suggests need of micro-financing models, innovative social marketing, localmanufacturing, and strengthening supply chain. There is needof public-private (Government, Non-government & businessorganization) 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 needof aggressive intervention requiring huge investment*.

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    Way Forward

    Launch interactive website

    www.healthysmokehoods.org which will offeranyone the opportunity to design their own

    smokehood

    Strengthen supply chain. Introduce factory profile-

    cutting, and local assembly by builders and localmetal-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 up-

    scale this technology in this region.

    http://www.healthysmokehoods.org/http://www.healthysmokehoods.org/
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