From

WEEKLY SUMMARIES

1.From: "Girish Kharel" <girish@mail.com.np>
Subject: [RETs] Moderator's Summary of Week 1
Date: Tue, 4 Dec 2001 09:52:54 +05

The topic of the first week discussion on RETs was microhydro power (MHP). The discussion was lively and informed and a lot of pertinent issues were raised.

While there didn't seem to be any doubt among those involved in MHP about its usefulness and role in development and improving peoples' lives, there were
different opinions on the best ways of implementing and utilising MHP.

Dr. Halliday approach showed that very small amounts of power could be used to provide lighting to large numbers of households using white light emitting diodes(WLED). Given that the alternatives for lighting in remote areas (particularly in Nepal) for lighting are open fires or burning resinous pine, this does represent a significant improvement in peoples' lives. In a situation where grid electricity or larger MHPs could be years in the future the use of WLEDs have a positive contribution to make.

Non-technology issues were of prime concern for Ishara Mahat and Amreeta Regmi. Issues such as high cost of technology, its low utilisation and shortage of technical manpower and technical support often leads to the failure of MHPs. The importance of integrating MHPs with credit schemes, cottage industries and other income generating activities in making MHP successful was also highlighted. The failure to take into account the interface between technology and society also has its own perils. The broader socio-technical processes, political control and decision making processes also have to be taken into consideration to make MHP successful.

The discussion did not limit itself to only electricity generation from MHP. Non electrical direct usage such as hydraulic rams for lifting water for drinking and irrigation, ghattas ('water mills') for grinding grain were also discussed. Centre of Rural Technology's efforts at disseminating improved ghattas showed that there is a place for improving traditional technology and that these efforts make a contribution to reducing drudgery for mountain communities.

The issue of quality versus quantity was raised by Govinda Devkota. Despite the large number of MHPs in Nepal a lot of them are malfunctioning or underutilised. The need to review the MHP sector and to institute quality control systemsin MHP implementation so that there are fewer failures was also highlighted.

The question as to whether fuelwood usage is decreased by MHPs was also raised. Bikash Pandey pointed out that under specific circumstances where there is expensive firewood, availability of alternative employment to firewood collection and low cost electricity, it is possible to substitute firewood by MHP. This is borne out by the experience of the Annapurna Conservation Area Project (ACAP). Without these conditions MHPs could lead to increased use of firewood.

The question of whether MHPs can be connected to the grid was also brought up. Connecting MHPs to the grid can provide an opportunity for rural areas to export energy and earn an income. Technically, any MHP can be connected to the grid. The question is, below what size does it cease to be financially viable.

Some issues on VAT and taxations related to MHPs were also brought up but not posted . We felt this was better left for later when policy issues would be discussed.

Overall, the discussions went well with high quality contributions from all the participants. There were 33 contributions out of which 28 were posted. Contributions
that were received too late are on the e-conf website <http://www.mtnforum.org/apmn/hydro4.htm>.

I would like to thank all those who took part by making contributions and also by registering and so receiving (I hope reading as well!!) the items submitted. I hope
everyone enjoyed the e-conference as much as I did. I look forward to continuing the discussion - electronically or otherwise.

Finally my thanks to ICIMOD/APMN for providing the opportunity to moderate the discussion.

2. From: "Gyani Ratna Shakya" <grshakya@hotmail.com>
Subject: [RETs] Moderator's Summary of Week 2: Solar: Thermal & PV
Date sent: Thu, 20 Dec 2001 11:02:49 -0600PART ONE

TECHNICAL ASPECTS
There was a general accord on the fact that the technology for utilising solar energy is well developed for a range of applications. In most cases, solar energy is much more environmentally friendly than traditional energy sources. Also in many cases, active and passive utilisation of solar energy can be economically profitable.

It is also stated that the cost of solar panels has reduced considerably. The light features have been also improved. In India, the technical potential has been estimated as 140 million sq. m. of collector area, out of which 0.55 million sq. m. of collector area has been already installed. Solar air heating system as a Partial Energy Delivery (PED) units having about 2500 sq. m. of collector area has also been installed under MNES programme, operating mainly in southern parts of the country to pre-heat air for drying of tea, spices etc.

Under this scenario of fast development of Solar Thermal Sector it is possible to extend the use of new technologies and anticipate energy cost reduction in various solar thermal applications. Wide spread of commercial applications is feasible due to an indigenous presence of a matured solar thermal energy technology at an affordable price besides recognition of environmental hazards and the limitation of fossil energy resources.

Solar Photovoltaic Systems (SPV) systems, when used on a large scale, can cut down the need for extending the distribution grids in rural areas and the resultant losses in transmission. In India, SPV systems of about 53 MW aggregate capacity have been installed for various applications in the country and about 27 MW equivalent capacity of SPV products have been exported.

In case of developed countries some advancements made in the solar technologies are rotating home which is at par with earth's speed for day long solar light, laser guided solar light reflector for natural solar light even in cellars, insulated pillars, window sills of houses to tap solar energy even at night-time. Suggestions are that research on modifying these sort of need-based technologies to suit poor mountain countries should deserve due emphasis.

The water heating system market for domestic applications is growing up fast in Europe and the USA as well, not only at the "traditional" solar energy usage area of the world's Sun Belt. Projects using absorption cooling systems with solar thermal energy source are under construction and testing. Solar thermal desalination as a stand-alone system or as part of a co-generation system is under operation stage.

APPLICATION/ECONOMIC ASPECTS
Solar systems and their application should be well focused around a productive issue. Application of solar energy requires thinking about the economic and social purpose of the application. The cost and the technology play a decisive role in determining whether it will be feasible or not.

The commercial use of Solar Thermal Energy is also growing rapidly- from water heating applications through domestic space heating and cooling systems, industrial systems and up to large scale Solar Electric Generating Systems (SEGS).

Passive solar technology has been used in domestic and public houses as well as in income-generating activities. Residence houses when constructed according to passive solar architecture reduce the energy required to heat the space by 70%.

Photovoltaics' strong traditional position in remote independent systems has been broadened lately with grid-connected systems in buildings. It is strategically important and feasible for the industry to further extend its presence with uses in geographically remote and inaccessible regions. In such cases economic justification is achieved through lower costs compared to alternative costs of network connection, lower relocation expense and cable damage risks and minimal operation costs and maintenance.

Chinese technology of producing cost effective PVCs, e.g. two 40W bulbs at NRs. 6,000, available at some rural locations in Nepal (Namche bazaar area) holds promise in popularising solar lighting and arid Himalayas area. This is further justified by the fact that as one participant quoted, "it is difficult to find houses without solar in Jerusalem, which is located in a desert area."

Solar energy technologies can be tools to develop sustainable income-generating activity. This is explicitly proven in Ladhak and Leh where this technology has been used to provide greenhouse effect. Thus, creating a scope to locally produce vegetables during the winter and create some income generation activity in winter with solar greenhouse. Another income-generating activity where this technology has been applied is in their poultry farming. Apricots are the main resource of the lower part of Ladakh. They are sun-dried without any hygienic\consideration, on the roofs of houses or on large stones. The added value of such products is low. The drying is a step in whole process but the quality of final product depends on the quality of the drying/packaging: improved dryers are required.

SOCIAL ASPECTS
The criteria to be adopted for making solar energy technologies efficient and within reach of the poorer population are: a) Low investment and self-construction, b) Easy to run, and c) Least maintenance.

Solar energy can be used as a tool for better education in the rural areas deprived of other lighting sources. Besides it can also break isolation of the teachers posted to these areas for teachers job. This is a lesson learned from the solar project in Sahel, West Africa, where the idea was launched (some years back) to provide the young graduated posted in remote areas as teachers. They were provided with computers that are linked by radio through satellites. This way they could receive and send e-mails and download information and new curriculum.

Promotion of solar energy applications was seen to serve the corporations more than the people, not very much different from grid energy. Cited was an example from West Africa, the context is rural and not necessarily mountainous, to highlight this point. Gambia's rural areas are without electricity and it is quite likely that that would be the situation for years to come. At a whopping cost D1 million (1USD16 D), PV water-lifting systems were installed by M/s Siemens. Dealing with the maintenance of the systems is an important element for promotion of any technology. The maintenance company stands to gain a lot. If the local youths are trained for the maintenance of the system, PV system can generate employment too. In the present system, both the State and the society are dependent on corporations.

IMPLEMENTATION ASPECTS
There are several motivations for using fuel saver plants retrofitted to existing fossil-fuelled plant viz.:

*The capital requirements for such plants are substantially reduced since existing generating equipment is utilised by solar heat.
*Solar capacity will be a small fraction of the installed fossil capacity at each site, but if used on many plants, will represent an early and huge increase in market share, allowing high production volume cost reductions which will assist introduction of stand alone plant. The approach can be applied to almost any coal or fossil-fuelled plant in good solar regions.
*Comparatively, inexpensive fossil fuel can be used to offset the cost of the solar field minimising electricity price rises.
*Plants of high emissions (e.g. coal fired) can be targeted, ensuring the maximum environmental benefit.
*Retrofit plants without storage are much simpler than standalone solar plants, and can operate at temperatures and pressures lower than the usual steam injection conditions for typical turbines.
*Solar steam or heated water may be injected at several different places in the steam cycle of existing fossil plants, with different steam conditions (e.g. temperatures of 250-350 B0C).
*Superheating is carried out by fossil fuel, lowering the necessary temperature of solar operation to below 360 B0C and decreasing array thermal losses.

The ultimate goal for the SPV marketers should be to expand PV business while increasing receptivity by town planners and construction specialists for penetrating into such typical applications. One of the main requirements is to support the introduction of new and improved technologies that increase the efficiency and reduces the capital cost of solar energy conversion systems. The ultimate goal is to create a situation of self-sufficiency for these technologies so that government assistance is no longer needed. To reach this goal competitive offerings and large enough market shares have to be created. Therefore a broad perspective on the matter of introduction of new technologies is necessary.

Solar powered telephones, mobiles, TVs, radios, e-commerce can also be used to support promotion of solar technologies, from applied aspect. On-line maintenance services, market prices, and 'e-commerce' from your mouse to your house facilities will pose positive impacts.

PROMOTION MODALITIES
There are numerous uses that mountain communities could put solar energy to. However, there is the need to develop the institutional modalities to deliver solar energy to users. In mountain areas in India and Nepal and many other countries, the government provides subsidies for solar PV systems.

The justification for solar PV subsidies is that all rural electrification is subsidised to some extent and this technology in many cases provides the most cost-effective way to get electricity to remote locations. On the other hand detractors of this policy argue that while rural electrification provides services and secondary benefits to a larger community, by powering industry, milling, the benefits of solar home systems are largely limited to the user household. They argue that if subsidy is provided for technologies that largely cater to the rural elite such as solar PV home lighting systems it should have the objective to "prime the pump". This means that the subsidy, should be designed for withdrawal after a few years so the market can take over.

There is a strong feeling that there still is the need for subsidising PV solutions for domestic and school illumination in rural (mountain) environments. Some of the reasons are the following:

*PV is still very expensive, but technologies and manufacturing methods are being developed to get the price down and make PV more effective in diffuse light. Subsidy may be required for a while until the manufacturing prices have sufficiently dropped.
*The power wiring is becoming increasingly expensive for rural areas and with extended length of wiring the resistance increases and risk of damage. PV becomes soon economical compared to the wiring cost.
*There is a definite benefit when the "rural elite" is taking the lead in the application. Poor (low-income) people will copy from the rich people without much need for promotion or marketing. The rural elite will seldom copy something that has been subsidised for the poor. In order to introduce new technologies and an understanding of these technologies, the promoter has to work through the social leaders of the local societies, very often the rural elite.
*There is a great benefit in improving domestic and school illumination by itself. Productive activities (including learning) and reproductive activities (including all domestic chores) are done better and longer and easier. Domestic based industries, such as embroidery, can continue after sunset and generateincome.
*Comparing clean light with the smoky light of kerosene burners (or worse open fires), the PV light has definite health benefits for all people living in the houses.

Considering the above points, for remote rural areas the rural elite should be stimulated (subsidised) to use other RETs. This suggestively is one of the best and low-cost promotion mechanisms for the rural areas. Only top-quality and very durable equipment should be installed and combined with medium term
financing models (also for the elite). The servicing, marketing and financing mechanisms must be developed for the rest of the population when the distribution network is densified.

It is gathered that the dissemination of typical solar energy applications suffers from four low A's: low Affordability (high capital cost), low Awareness (rural outreach), Appropriateness in the local market, low Availability (systems & service).

A RET dissemination program in six villages (in two districts of H.P.) and later in about 15 plain villages (three district of U.P., India) run by Rural Energy Group of TERI (New Delhi) revealed that more people were after Improved Cook stoves or biogas than Solar. Among Solar thermals, more community water
heating facilities were installed than personal. And PV lanterns found more clients in villages that had significant number of service class people. In general the response was lukewarm in comparison to what we got in villages of plain region (slightly better affordability level).

Successful commercialisation, penetration and social acceptance of Solar Energy gadgets depend on many interrelated key issues which need to be effectively addressed viz., establishment of the necessary industrial base, development of policy and regulatory frameworks, pricing, financing and fiscal incentives, support for research and product development and information dissemination. All actions related to Solar Energy (SE) dissemination will have no real impact unless there is strong demand from end users. This will only happen if a mass information and training program is put in place to reach all potential users and facilitators, explaining the benefits of SE. The instruments to be used to achieve this goal are not obvious and must be carefully discussed among local experts with possible assistance
from national funding agencies and foreign donors/partners. This approach is obviously common for all Renewable Energy gadgets.

PROBLEMS ENCOUNTERED IN LOWER CLIMATIC AREAS
Use of thermal energy through mainly Solar Water Heating System and Passive Solar Structure is wide. Solar Water Heaters have been a good technology in the hotels and lodges who are using a large quantity of fuel woods to heat the water for hot showers to the tourists in such a cold environment. The owner pays cost
price and the transportation and technical supports are supported by the project. It has helped reduce the pressure on forest for fuelwood and the burden of collection. Economically and environmentally there are lots of benefits. However there are areas for improvement. In the high mountains (trans Himalayan zones -
Manang and Mustang) the water gets frozen in winter inside the pipes. This breaks the pipe from time to time. The owners are to be extra careful. Here one needs materials or technology that suit such freezing environment while the cost remains affordable. Experiment is on regarding the use of oil circulatory system (CNRS, France and ACA, Nepal) where oil absorbs heat from the sun and exchange it with water inside the drum. So far it has been working. Other technologies (where vacuum systems have been used) are also available in the market, but the cost is comparatively high. Although the technology is appropriate it is not easily affordable in the remote mountains.

Second thermal use is in promotion of Passive Solar Structure. These structures are intended to absorb maximum solar heat during daytime and keep the effects throughout night through minimum loss. The buildings have been designed for residential as well as greenhouse purposes. The effects in the residential buildings have still to be examined. While people have already benefited from greenhouses by producing tropical varieties of vegetables in the cold temperate zones of Mustang. Vegetable production fits into the area where the tourism has already created the market.

The photovoltaic technology has been used for lighting and running mills. The benefits are immense especially through social development. But this is a new technology in remote mountainous zone, not built on local knowledge system; there are challenges to sustain the technology. Experiences indicate that intensive training are required for local people for skill development and close linkage is required with the market or develop the system to supply fittings and materials when they break. Since mostly they are imported or only limited assembling is carried out in the country, timely availability of fittings and personnel needs serious consideration. Another area for future consideration is the management of discarded wet batteries, especially there are chances that if they are not properly managed, downstream water bodies may be contaminated through leaching of acids or other discarded materials.

CONCLUDING REMARK
The discussions highlighted facts on available as well as recent advancements made in the solar technology. The general arguments were that although large scale fossil energy production is cheaper than the available solar alternatives, the conventional energy generation technologies, based on fossil fuel, have reached maturity with little room for advancements, whereas solar technologies still have large potential for improvement, pending appropriate R&D. Together with this maintaining quality and acquiring affordable products will help promote the technology to the needy. The true price of fossil energy must include scarcity and pollution damage
components to allow a valid evaluation of social costs and benefits of alternative energy options. These considerations bring in a delicate issue regarding the desirable rate of R&D expenditures on solar technologies, which is the present problem to be addressed. However, all will no doubt support the notion that substantial investments in solar energy research should not await the next energy crisis.

Much said and done, the underlying fact remains the same that the combination of non-fossil fuel and local rural power generation results in social, economic and technical benefits, which shall make solar energy projects desirable for emerging markets and developing countries.

At this point I would like to bring into the notice of all concerned that some postings could not be accommodated due to virus problems in the attachment. I believe, everyone in the forum will agree that the conference has been fruitful. In order to enable one to include all the postings received this problem will have to be dealt with somehow at the source if possible. With this I would once again like to thank the organisers for having given me this esteemed job as moderator
for the solar-session as well all the participants, one and all, who have helped in making this session so lively and knowledgeable with their valuable contribution.

3. From: "Govinda P. Devkota" <ucs@mail.com.np>
Subject: [RETs] Summary of Week 3: 'Biomass-Biogas'
Date sent: Thu, 20 Dec 2001 11:43:50 -0600

1. Introduction
Well, what a wonderful e-conference! Thanks to all who contributed. I was particularly delighted that many of the contributors had a wide range and depth of experience.

We received twenty-four postings on the topic of biomass-biogas. Three fourth of the contributors appeared to come from Nepal and one fourth from countries like the Netherlands, China, India, USA, Sri Lanka, Australia and so on. We were particularly keen to hear from people in developing countries of South Asia, Central Asia, East Asia, and the Pacific Region.

It is not possible to capture all information in this summary. I have tried to pick out a number of themes that seem particularly important or insightful. But I
strongly urge anyone who did not read the original postings to look them up on the APMN/ICIMOD's website: http://www.mtnforum.org/apmn/RETs.htm

2. Biomass/ Biogas issues discussed
Many contributors focussed their comments on technology development (low cost, cold climate), institutional development (organisational), capacity building especially in constructing biogas plants and policy level issues such as subsidy and so on. Many of the contributors underlined the importance of cost effectiveness (Dr. Sudhirendar Sharma, Kishor Pradhan, Bishnu Upetrey, and Gehendra Gurung) but others reminded us of the application of slurry/manure and cleaning of digester (Peng Bin, N. Perera).

Mr. Kishor Pradhan raised issues on social problems experienced in implementing energy technology such as community biogas plants. Similarly other concerns were financial acceptability, its uses and impacts on saving forest and mitigating carbon emission. Mr. Pravin Kausaltar's concern was the effect of slurry on crop productivity/yield.

Dr. Sudhirendar Sharma raised issues on cost of the technology, availability of technical manpower for the installation of biogas, subsidy, market support, carbon
emission and drudgery reduction index.

Two types of biomass briquetting machines such as screw extruder and die and punch were mentioned with Indian experience. However most of the plants had failed due to poor design, poor quality of machines, poor service and management.

Now briquetting can be looked as a means of providing a sustainable livelihood for the rural population as a means for power from briquettes based gasification,
revenue generation by marketing of surplus briquettes to the process industries and selling it.

Manufacturing design for the briquette stores, optimum utilization of biogas, ferrocement waterproof cement plasters technique for higher altitude with the example
of Pakistan was raised by Mr. Sjoerd Nienhuys. Mr. Peng Bin from China raised issues about the application of slurry/manure and cleaning of the digester.

Mr. Bikash Pandey explored issues such as programme depending on subsidy and upcoming trade in carbon through the clean development and development trend of biogas in Nepal. Mr. Yuvraj Dinesh Babu reflected on briquetting technique of die and punch which is successful, noting that thescrew extender has, however, miserably failed in India. According to Mr. Sudhirendar, energy scenario hasn't been fully understood till now.

It was also felt that the technology should be developed (R & D) for more gas production during winter seasons. Similarly extension aspect was highlighted from
the experience of Mr. Gehendra Gurung of ACAP. Mr. Suman Rai's concerns were high altitude cold climate biogas design and insulation techniques for increasing gas production.

Mr. Nirmal Perera reflected his concerns on fresh biogas slurry as a feed ingredient or use as a quality and nutritive value enhancer. The discussion did not limit itself to only biomass but also on the concern that technologies are not adopted every where and it is to an individual's livelihood especially economic condition and other non-monetary livelihood. Thus ultimately aim to the identify appropriated technologies for villages. Similarly failures of many a community biogas plant and phenotypic indicators from biomass resources were raised. These were the major concerns of Mr. Ajay Sharma.

Ms. Ishara Mahat's concerns were views on increasing workload rather than decreasing after having biogas. Similarly packages such as accessible credit, extension services etc were suggested.

Mr. Dharma Poudel reflected views on the concept of beehive briquette.

Mr. Bishnu Uprety highlighted issues on cost effective technology, conductive policy context and appropriate regulatory framework awareness raising among rural
communities.

2.1 Social issues
Social issues such as toilet attachment in the biogas digester and application of slurry in the field were discussed. Similarly the failure of the community biogas
plants i.e. mainly due to social problems such as number of cattle population, number of family members, difficult in sharing slurry etc. were highlighted.

2.2. Economic issues
Economic issues such as cost of biogas plant, income and expenditure from a particular plant, and loan repayment period were discussed under financial issues. Government policy on subsidy was also presented during the e-conference. Firewood collection time has reduced, as has the time to cook and clean pots. Women have saved an average of 3 hours per day on these chores.

2.3 Technical issues
Various designs of biogas plants, development of appliances, research on various alternative feeding materials, methods of increasing gas production and cold climate and high altitude biogas plants were discussed under this heading.

2.4 Environmental issues
The importance of toilet attachment in the biogas plant was stressed during the discussion. Similarly, other alternative feeding materials such as industrial wastes and sewage can enhance the environmental sanitation in the surroundings. Impacts of saving forests and mitigating carbon emission and drudgery reduction index were also emphasized.

Biogas plants in Nepal have had positive impacts on a number of fronts. Reduction of indoor air pollution in beneficiary households has reduced respiratory problems, particularly among children.

3. Case studies/papers/success stories presented
All the discussions were based on the theme papers presented by the moderators. These papers were on biomass/bio briquettes, designs of biogas, Biogas in Nepal: A Sustainable source of energy for rural people.

4. Issues not addressed
The major issues were focussed mainly on the experience gained from Nepal even though it was widely used in developing countries like India and China. The future potentials and prospects of biogas technology were not properly discussed. Similarly the innovative mechanism to deliver modern energy services to poor communities in the developing countries was not elaborated during the e-conference.

5. Conclusion
*Wood and biomass are important sources of energy especially in rural areas of the developing countries of South Asia and the Pacific. These resources, including agricultural resources, are being used in increasing quantities to meet the demand of growing population.

*Biogas briquetting machines such as screw extruder and die and punch with the experience of India were discussed.

*Biogas is a sustainable source of energy for rural population in Nepal. It is a high quality fuel and used for cooking, lighting and running dual fuel engines for agro-processing, pumping water and generating electricity. Similarly the slurry can be used as fertilizer, feeding fish, mushroom cultivation, earthworm cultivation and so on. Similarly the financial analysis, quality management, institutional development, subsidy policy and various research and development activities such as design of biogas plant and appliances, alternative feedstock, application of slurry and various methods of increasing gas production were discussed as the developing trend of biogas in Nepal.

*The procedure of wall insulation technique that can be adopted for slurry tank as an experience from Pakistan was contributed.

*Experiences from various organisations and individuals regarding the cost effectiveness, social and environmental impacts and the present subsidy policy were discussed.

Overall, the discussions went well with high quality contributions from all the participants. Contributions that were received late and not posted to the mf-asia list are available on the e-conference web site <http://www.mtnforum.org/apmn/RETs.htm>.

Thank you.

Govinda P. Devkota
Universal Consultancy Services P. Ltd. (UCS)
P. O. Box 20506, Kathmandu, Nepal

4. From: "Mr. Rajan Thapa" <ics@crt.wlink.com.np>
Subject: [RETs] Moderator's Summary of Week 3: Biomass - ICS
Date sent: Thu, 20 Dec 2001 14:39:03 -0600

The week 3 discussions on subtopic "Improved Cooking Stove" provided insights and certainly raised some pertinent issues, which would provide basis to formulate guidelines, approaches and strategies in the future ICS promotion initiatives to be undertaken by GOs, I/NGOs and othersfor the rural mountain communities in this region.

The discussions touched lightly on issues like approaches for wider dissemination of ICS and the available models. They did not, however, touch much on subsidy issues, cost effectiveness, capacity building, awareness and demand creation aspects.

The participants had the opportunity to share few success case stories (eg TERI experience in Northern India, BACIP experience in NA, Pakistan and TNC's project experience in SW China Yunan Province etc). The excerpts of the discussions and issues are presented below.

Technical Issues
*A lot of attention has been given to the cooking in hot-climate-areas in order to reduce firewood consumption and make cooking a less hot and smoky business and hence plenty of experience and designs available but less for mountain areas. The improved mud-stoves model with or without chimney outlet suitable for warm areas did not satisfy the requirement of space heating and range of cooking vessels in the cold highlands and mountain areas. The few designs available (sheet metal, metal and mud combined etc.) but are still not adequately versatile to response the diverse needs and preferences of the mountain communities regarding cooking, room heating, safety and comfort etc. Thus there is still further initiation required to develop user-friendly models suitable for cold mountain areas that are fuel efficient and less detrimental to health.

*Concerning ICS, a clear distinction has to be made between stoves for cooking alone and stoves for the combination of cooking and room heating. Further a compromise between higher efficiency and better acceptance is worthwhile considering heat released into the room from ICS as useful energy.

*The traditional fireplace might be in some cases more efficient in heat utilization if examined from all the side benefits it provides like room heating, grain drying, lighting, and timber preservation and insect repellants.

*Other options to reduce firewood consumption and indoor pollution through better kitchen management and fuel wood management (such as changing eating/food habits and changing cooking methods such as the use of pressure vessels etc.) have been undervalued and hence needs to be taken care of while promoting ICS.

*Improving thermal insulation of mountain houses and controlling ventilation reduces drastically fire wood consumption (50%) and smoke emissions. (BACIP, Northern Areas, Pakistan)

*Incorporation of water heating system in ICS will not only reduce the drudgery of women but also add to the comfort. (Northern Areas, Pakistan and Annapurna Conservation Area, Nepal)

*Low wattage electric fans (15 W) are available which could be introduced in the chimney hood to remove smoke out of kitchen for health benefits.

Policy Issues
*Efficient use of fuel has been the dominant reason for bio mass stove promotion activity in mountain areas until now.

*It could be more effective if ICS is promoted on health platform rather than fuel savings, which may lead to the shifting of promotional role from the Ministry of Forest to Health.

*Regular public information and awareness campaign on health done in a manner similar to anti- smoking, antialcohol and aids etc. could be an effective tool for rapid dissemination of ICS in rural Mountain areas.

*Government of Nepal has taken the policy of not providing any direct end user subsidy on ICS in order to create the household ownership and sustainability of the program, rather to emphasize on institutional and capacity building, social mobilization and Information Campaign for wider dissemination.

*Assessing local demands and quantifying stress factor and offering solution should be the approach for ICS promotion.

Social Issues
*ICS may not be easily accepted by many people however user-friendly it is due to different socio-cultural values and practices.

*Open fire has its deep-rooted socio-cultural origins. Sitting and chatting around an open fire has been the wayof hosting guest during cold season years after years; baking potatoes inside the red-hot ash of the open fire is also a very popular local practice. Some people, particularly elderly people, do not feel good with the new installations as they could only see the fire partially open and baking potatoes is not as convenient as before (Yunan Province, SW China).

*On the other hand introduction of ICS or changing ovens or stoves often imply change of eating habits and cooking methods (Northern areas, Pakistan).

Economic Issues:
*There are a few ICS designs available (metal sheet, metal and mud combined etc.) for cold mountain areas but are still not cost effective.

*The alternative source of funding for an ICS project could be the multinational company seeking to earn carbon reduction credits under clean development mechanism (CDM).

Conclusion
No matter how best a technology (here ICS model) is, it may not be suitable to all the rural mountain communities due to the different energy needs and priorities based on their socio-cultural context, cooking practices/food habits and living (economic) condition including stress factor etc. Thus any model promoted should be versatile and if required should be modified according to the local needs and preferences of the community for larger acceptance and adoption.

The higher adoption normally signifies and is the function of soothing and appropriate technology for individual's livelihood. In the case of ICS it should be fuel wood saving, provide space heating, reduce women's drudgery and smoke related ailments.

The messages of this kind of benefits particularly the health should be the main campaign to attain broader acceptance.

In the past and even now less attention has been given to: the health issues related to ICS, proper assessment of the demand and integrated and demand driven approach etc. which needs to be duly addressed for wider acceptability and adoption of ICS by the rural mountain communities.

Besides and most importantly, commercialization and marketing of the cost effective and user friendly stove technologies through entrepreneurship development mechanism supported by strong information and awareness campaign to trigger demand could be among the more desirable solutions to achieve a broad coverage of ICS and this to be seen as the most common stove in remote mountain areas in the near future, like the kerosene stoves and repair shop in many villages in South Asia.

NGOs/CBOs can play an active role in facilitation among the quality service providers, mobilization of the end users, right information dissemination, and awareness raising for creating real demand for ICS. The demand driven approach can ensure efficiency and sustainability compared to supply led development approach, where NGOs can play a better role. Eventually there should exist the expertise, skills and quality service providers at local level supported by local initiative, resources and information through local institutions.

Rajan Thapa

ICS Moderator,
Centre for Rural Technology, CRT/N

5. From: "Bikash Pandey" <bpandey@winrock.org.np>
Subject: [RETs] Moderator's Summary of Week 4
Date sent: Wed, 26 Dec 2001 09:35:56 -0600

The discussions in the final week of the E-Conference on 'Policies for the Promotion of RETs in Mountain areas' can be divided into two main headings, financing and institutions.

FINANCING
The discussion on financing of Renewable Energy Technologies (RETs) were mostly concerned with subsidies and credit. Justification of subsidies for RETs in mountain areas included the fairness argument: that city people have most of their public services including electricity subsidized and rural, and particularly mountain people, who are generally poorer should also receive subsidized RETs to help them meet their basic needs. Another argument presented was that if rural people were expected to adopt more expensive RET options rather than using cheaper fossil fuels like kerosene which is itself subsidized, they should be given subsidies: this was compared with sugar-coating of medicines. Other justifications for subsidies were 'priming the pump' i.e. getting the market process started; providing regional equity by providing higher subsidies to more remote areas; creating a level playing field so that RETs are given the same opportunities as fossil fuel technologies; and finally to internalize externalities, i.e. to compensate RETs for the additional social, health, and environmental benefits they generate by reducing indoor air pollution, cutting down on drudgery of women, slowing deforestation, and lowering greenhouse gas emissions. However, if costs of delivery of subsidy are higher than benefits, subsidies become counter-productive. Subsidies can also be used very effectively to leverage high quality installations, as demonstrated by Nepal's Biogas Support Programme, by only qualifying those construction firms to participate in the subsidy programme that maintain high standards. The question of whether subsidies for different technologies should be based on the social benefits they provide was left unanswered.

In terms of implementation, it was suggested that subsidies should be divided into hard (capital grants to users) and soft (training, education, information dissemination) components. Capital subsidies should be discontinued once the market takes over, but the soft subsidies might be continued longer. It was also suggested that building of social capital as is done by many NGOs in the process of social mobilization preceding installation of RETs should, perhaps, be subsidized under a different heading than RET subsidies. It was pointed out that transparent and targeted implementation of subsidies was as important as having the subsidies at all and effectiveness was more important than the monetary amount of subsidies. Subsidies are smart if they can be introduced with minimal distortion to the market. It was argued that continuity of the subsidy program was important for building confidence if rural people were to take risks and make their personal investments into RETs. There was also a suggestion for a multi-stage subsidy programme rather than one time support. Governments need to be smart about sourcing subsidies. Governments should investigate how subsidies to RETs can be provided by selling carbon credits through the Clean Development Mechanism.

The second component that received attention under the topic of financing was that of credit. It was generally felt that adequate credit was not available for the optimal promotion of RETs in mountain areas. There was a discussion concerning the role of micro-credit and village-based credit institutions in providing loans to RETs. It was generally felt that these institutions could be mobilized to provide credit to smaller RETs such as solar home systems, biogas, and Improved Cook Stoves, although they would need special training to lend to the energy sector since their loans normally went to income generating sectors like animal keeping and growing of vegetables. Most applications of RETs do not immediately generate income. However, there were doubts on whether these institutions could ever generate the resources and gain experience in providing loans to larger RETs such as micro-hydro. One creative suggestion was to encourage micro-hydro management committees to on-lend the surplus from monthly fee collection to make loans to end-use enterprises, instead of putting it in the bank. This would generate more energy sales for the micro-hydro plant while at the same time growing the money, which could eventually be used for larger maintenance costs and replacement of components as the plant gets older.

INSTITUTIONS
The respective roles of different institutions in the promotion of RETs was discussed extensively. NGOs as a group are seen to have an important role in the promotion of RETs, particularly in social mobilization and building up of social capital. Community-owned micro-hydro projects are seen to be in particular need of this support. NGOs are seen to be able to carry out more holistic and integrated development in the communities where they work, effectively weaving in the energy projects with income generation, end-use promotion, productivity enhancement, and environmental conservation; good examples are the Annapurna Conservation Area Project and Agha Khan Rural Support Programme. In fact, most micro-hydro promotion organizations, including the Alternative Energy Promotion Centre/ Energy Service Assistance Program (AEPC/ESAP), and Rural Energy Development Programme (REDP) appreciate the important role of NGOs and use them frequently to support beneficiary communities. REDP in Nepal is seen to combine much of the working style of NGOs while at the same time involving local government structures, particularly the District Development Committee, in energy planning. This strategy should at least partially answer the criticism often leveled at NGOs that they are only effective in limited geographic areas.

It was widely accepted that a number of 'regulatory' functions need to be carried out for the proper functioning of the RET sector. These include enforcing of quality standards, maintaining a competitive supply market by prevention of formation of supplier cartels, and ensuring clear water rights in the case of hydropower. Additional central functions are information dissemination, training, capacity building, support to Research and Development, and monitoring and evaluation. There was general agreement that the State should not play a central role in the installation of systems or supply of equipment and that this should be done by private companies. A number of participants also pointed out the importance of being demand rather than supply-driven. It was also pointed out that there is, however, a need for a central organization within the government whose job it is to mobilize the necessary investment from the government and donors into the sector. This same organization should perhaps carry out many of the regulatory and promotional functions listed above. Alternatively, it was suggested that Consumer Groups might be able to independently test and make information available to consumers about the quality of products from various suppliers. Nepal's biogas support program presents a modality where an independent organization dedicated to one technology area carries out many of the regulatory and promotional functions while also disbursing the subsidy for that area.

Aside from the equipment supply and installation function of the private sector, a number of participants brought up the important role of Renewable Energy Service Companies or RESCOs. These Companies would provide energy services to rural consumers on a fee for service principle; i.e. rural people would not need to pay for capital installations but only a monthly fee for services. These companies already exist in the micro-hydro sector in the form of entrepreneurs who make an investment and charge their neighbors a monthly fee for service. The concept is less well established for other technologies like solar home systems and biogas in mountain areas in the Asia Pacific. One new model that some participants also found interesting was where a private company generated and sold power to the national grid for profit but used some of the power generated to extend the rural electrification network in the district; one example is Butwal Power Company with the Andhi Khola Rural Electrification Project in Nepal.

There were a number of issues which were raised without adequate discussion. They are on how issues of social equity can be better addressed in the promotion of RETs, how gender and cultural issues can be better incorporated into RET implementation, how RET promotion can be better promoted in coordination with other inputs for effective rural development, whether the Chinese model of rural electrification is better suited to developing countries than Western models, how local government can be more effective in promoting RETs.

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