Emission Trading from Clean Cooking Technology Promotion Project in Eastern Region of Nepal

Dinesh Dulal Relationship Manager Clean Energy Development Bank Limited (CEDB)
February 8, 2013 Kathmandu

Project concept
CEDB is the project proponent WI provides technical assistance all level during the project including CDM documentation Project activities will be aligned with national program of GoN and follows GoN subsidy policy Project area: 7 eastern districts (Khotang, Udaypur, Solukhumbu, Okhaldhunga, Ilam, Pachthar and Taplejung) Project will disseminate around 20,000 ICS, 5,000 biogas plant and 200 solar cookers during 5 year duration benefiting around 25,200 rural households

Project Implementation Modality

CEDB
Technical Assistance Skill Transfer

WINROCK

AEPC/NRREP
Subsidy/ Assistance/ Monitoring/Credit Facility
Work in Collaboration
- ICS - Biogas Plant - Solar cooker

VDC/ DDC/ Line agencies

Local branches/LFIs

Communities

Required Investment
The total project cost required: US$ 4.7 million

Users Equity: US$ 0.5 million

GoN Subsidy: US$ 1.8 million Credit: US$ 1.9 million Project Implementation cost: US$ 0.5 million

Qualify if this is debt / equity / grant o Debt: US$ 1.9 million o Grant: US$ 0.5 million

At present there are not committed investors for this project

CDM revenue stream

Biogas USD %age Number CER/plant CER price Yearly CER revenue

Total cost Loan amount Subsidy Equity/in kind

Metallic ICS Total cost Loan amount Subsidy Equity/in kind Mud ICS Total cost Loan amount Subsidy Equity/in kind

500 250 50% 200 40% 50 10%

USD %age 100 60 60% 30 30% 10 10% USD 10 8 0 2 %age 80% 0% 20%

5000
IRR at 10 yr IRR at 20 yr

5
0% 8%

125,000

8000 IRR at 8 yr

1.5 0%

60,000

12000 IRR at 7 yrs

1.5 52%

90,000

Benefits from the project

Over-coming financial barrier (upfront investment cost) for the rural communities Access to clean cooking solution for rural community Generate CDM revenue from the RE project CDM revenue benefit sharing with users Other benefits:
Environmental (reduce firewood consumption thereby reducing deforestation, GHG emission), Social (reduce indoor air pollution, time saving, reduce fire hazards), Economic (employment creation, cost saving, involve in IG activities), Technological ( technology transfer at local level)

Company History- Clean Energy Development Bank Limited (CEDB)

National Level Development Bank established in a joint venture with FMO in 2006, Primary objective to become a dedicated Bank in Clean Energy Financing, Largest development banks in terms of Capital Base, Fund Manager of Micro Hydro Debt Fund and Improved Water Mill Credit Fund, Honored by Best Development Bank Award in The 7th Boss Top 10 Business Excellence Awards and Best Presented Accounts Award by ICAN

Exposure in Clean Energy

Grid Connected and Off-grid Hydro Project Solar Home System Biogas Financing Electric Vehicle Financing Energy Efficiency Financing Financing Energy Contractors/Energy Service Companies

Thank You!

Lets empower