Socio-economic Impact of Alternative Energy Technology (Bio-gas) in Kailali District

(A Case Study - Malakheti VDC)

Submitted to

Alternative Energy Promotion Centre

Krishna Galli Pulchowk, Lalitpur

Submitted by :

Ramesh Bahadur Balayar

Consultant
March 2002

Acknowledgement
First of all, I would like to thank Mr. Madan Bahadur Basnet, Executive Director of AEPC for providing this wonderful opportunity to carry out a Socio-economic Impact Study on 6obar-gas in Malakheti VDC of Kailali District. This study would not be completed without the great
1

support of the best friends of mine, Mr. Krishna Bahadur Malla and Mr. Tek Bahadur Balayar. I am truly thankful to them and highly appreciate for their hard work and the guideline. Also my thanks and gratitude goes to DDC, VDC personals, Biogas users and the different biogas companies as well as the social workers of Kailali District. This study means a lot to me. It is really a wonderful opportunity to learn about the Alternative Energy Technology and its effectiveness among the people. Since this is my first study on Gobar-gas, there is enough place to improve it, however I hope this Case Study will provide necessary guidelines for further studies on Socio-economic Impact of Gobar-gas.

Ramesh Bahadur Balayar Consultant

Table of Contents
Page No. 1. 2. 3. 4. 4.1 4.2 5. 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 5.2.2.1 5.2.2.2 5.2.2.3 5.2.2.4 5.2.2.5 5.2.2.6 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.4 5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 ENERGY SITUATION OF THE COUNTRY BACKGROUND OBJECTIVES OF THE STUDY METHODOLOGY Sampling Field Survey FINDINGS Institutions and Organization for Biogas Development and Promotion Biogas and Agricultural Equipment Development Company Financial Institution Private Entrepreneurs and Other agencies Biogas Users Characteristics of the Users Socio-Economic Situation Natural Resources Population Food and Cash Crop Production Occupation and Income Sources Land holding and Marketed Surplus Livestock Ownership Constructions, Operation and Maintenance of Biogas Plant Construction Company Reasons for Installation Construction Cost and Subsidy Feeding and Size of Plant Operation and Maintenance After Installation of Plants Socio-economic Benefits of Bio-gas Plants Bio-slurry as Fertilizer Effects of Bio-gas on Fuel Wood Consumption and Health Effect of Bio-gas on Environment Effect of Bio-gas on Sanitation and Health Effect of Bio-gas on Other Activities 1 2 2 3 3 4 4 4 5 6 7 7 7 8 8 8 9 9 9 10 11 11 11 12 13 16 17 17 17 18 18 18

ANNEXES Annex -1 : Annex - 2 : Annex - 3 : Annex-4 : Annex - 5 :

Survey Questionnaire Selected Bio-gas Users Interviewed Bio-gas Companies Operating in Kailali District Family Size, Number of livestock and Size of Bio-gas Plants in Kailali District in Surveyed Area Photographs

Executive Summary
Traditional way of every consumption (fuel) with extremely high dependence on fuel wood and agricultural waste given rise to environmental, health and productivity problems due to the production of noxious fumes. It also hampers on the study of children and income
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generating activities due to darkness and time spent on collecting firewood. Along with forest products (fire wood) the agriculture residences, which can be used as fodder for animal and soil nutrients, are simply burnt as fuel, which also lack on nutrients for production of crops. Hence, RET plays an important role on the growth of rural economy. AEPC has been established with an objective of disseminating and promoting RET for improving standards of living of rural people and conserve environmental degradation by increasing awareness on energy crises. With the focus on socio-economic aspects of the biogas users the study is undertaken to evaluate overall situation of RET in Kailali District There are about 2222 biogas plants in the Kailali District in operation. The randomly selected 33 users in surveyed area surveyed the pre-prepared semi-structured questionnaires with frequent field visit to obtain the required information. In the area GGC, PGC, SBC have played an active role in the promotion of biogas technology since years. To-date 49 biogas companies have been registered and are being operated in the country. In Kailali District, neither so far, there are nor companies involved in the installation of biogas plants. The biogas users are the better section by rural standards characterized by large to medium land holdings, greater number of livestock and high literacy rate. The average size of land holding, cattle and buffalo of the biogas users is 48.3, 5.17and 1.29 respectively. Commercially growing sugarcane and high production in cereal crops indicate favorable for financial institutions for the recovery of their loan, which was taken during the establishment of biogas plants and other activities. During planning the construction of plant users, financing banks and the companies were found not properly taking account of energy requirement of the households. It is also complained that there is insufficiency of gas during water than the summer season. Therefore, therefore, regulatory frameworks need to adequately encompass the socioeconomic aspects so that users enjoy trouble free benefits from the biogas plants they have constructed. There are only a few companies operating in a specified area, though there are 49 biogas construction companies registered in the country.

Hence, it is desirable that monitoring of the essential marketing elements also is undertaken regularly, so that users get maximum benefit of the competitive market, The study results show that in order of importance the reasons for using biogas are to smokeless environment, safe firewood, convenience of handling and cooking and value of slurry as good fertilizer. The implementation coordination between family size and recommended plant size is lacking, with resultant insufficiency of gas. Continuous promotional and correctional measures need to be introduced to create an environment to enable to rum and operate the subsidized plants
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regularly. On the average each households burnt 420 kg of fuel wood per month before the installation of the plant, which has come down to 100 kg after the construction and use of biogas plants. Assuming 320 kg firewood save per month in a household of users biogas, a total of 8532.48 M T firewood i.e. 85.32 million rupees save in Kailali district and all the users applied slurry as fertilizer and confirmed it to be a good substitute for chemical fertilizer. After the installation of plants, users reported time is saved in cooking, cleaning and firewood collection with in the condition of health, increased daily work schedule, better perception of health and hygiene.

List of Abbreviations
AEPC RET AET HMG/N ICS DDC TOR NGOs INGOs GOs VDC GGC ADB/N RUDESA BSP RBB NBL RGC GBC PGC FWDR FYM CC G5 SP LC QDF QWU D:W VS MS NS M3 CMS N:P:K Kg IRDS APP GJ
: Alternative Energy Promotion Centre : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

Renewable Energy Technology Alternative Energy Technology His Majesty's Government of Nepal Improved Cook Stoves District Development Committee Terms of Reference Mon-Governmental Organizations International Non-Government Organizations Governmental Organization Village Development Committee Gobargas and Agricultural Equipment Development Company Agricultural Development Bank/Nepal Rural Development Study Associate Biogas Support Program Rastriya Banajya Bank Nepal Bank Limited Rastriya Gobargas Company Gobargas Bistar Company Public Gobargas Company and Rural Development Company Far Western Development Region Farm Yard Manure Construction Cost Government Subsidy Size of the Plant Latrine Connected Quality of Dung Feed Quality of Water Used Dung : Water Ratio Very Satisfied with Biogas Supply Moderately Satisfied with Biogas Supply Not Satisfied with Biogas Supply Cubic Meter Consolidated Management Services Nitrogen : Phosphorous : Potash Kilogram Integrated Development and Research Services Agriculture Prospective Plan Gega Joule

1.

ENERGY SIUATION OF THE COUNTRY

With growth of economy and improvement in people's standard of living consumption of energy increases accordingly. In Nepal, energy resource bases are firewood, agricultural residues, animal waste, hydroelectricity and solar energy. In the country total energy consumption is estimated to be 247411 GJ among which 92 percent is consumed in the rural areas alone, which is fulfilled by electricity (1%), kerosene (1.994%), firewood (71.384%), agricultural waste (17.263%) and animal dung (9.113%) (Karki, 1995). Therefore, this type of consumption of energy base fuel wood, agricultural waste and animal dung in the future will accelerate forest mining as well as aggravate the environmental hazards due to the non-monetized nature of traditional fuels and low household affordability for alternative fuels (Rijal, 1995). The estimated population of Nepal is approximately 23.2 million, of which about 80 percent live in remote areas without lighting facilities. Nepal ranks amongst the lowest in terms of commercial energy use, with a per capita energy use estimated at 321 kg of oil equivalent as compared to per capita energy use estimated at 563 and 5369 kg of oil equivalent for low income countries and high income countries respectively in 1997 (World Bank 1997). Extremely high consumption of natural resources gives rise to environmental, health and productivity problems. The life of rural women and children is full of drudgery due to daily chores of collecting firewood from distant forest leading to deforestation of estimated area of 21,800 hector of forest annually (Karki, 1995). Darkness and noxious fumes are the serious problem for income generating activities and health and children who are unable to do home work at night are handicapped in school (Dev. Part. 1997). Agriculture residues, which can be used as fodder for animals and soil nutrients, are simply burnt as fuel. Hence, RET is an important factor for growing rural economy. In the present contest various organizations are implementing different activities like income generation, awareness programs, skill development, health related activities, alternative energy development activities and so on. There is little extent in social life but the expected achievements are not met. With the increasing awareness of emerging rural energy crisis, Alternative Energy Promotion Centre has been established in 1996 with an objective of disseminating and promoting renewable energy technology (RET) for improving standard of living of rural people and conserve environmental degradation (AEPC, 2000). AEPC as a recognized government body has access to support and funds from HMG/N and donors for the promotion of alternative energy in Nepal which includes micro-hydropower, biogas, solar power, wind energy and improved cook stoves (ICS).

2.

BACKGROUND OF THE STUDY AREA

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Kailali, the Terai District, one of the backward in reference to development in various sector lies in Seti Zone of Far Western Development Region. Though the district is leading in transportation, communication and other basic infrastructure development, it is affected by the activities like education, employment, income generation etc. The present educational status of the district is 44.1 percent literate among which 68.11 percent male and 21.7 percent female in total of whole literacy rate (source: DDC, Kailali 2058 census). Though the district is rich in natural resources, they are not properly utilized due to the lack of awareness, resource management and skill development trainings. The main resource of the district could be taken forest area, which is presently encroached due to high population density and urbanization process; in fact, the forest product is consumed in various purposes especially for firewood, fuel and furniture for house construction. It is observed that the forest will be surely destroyed in few years, if the proper solutions are not taken in consideration. It is estimated that there are about 1622 biogas plants in operation in Kailali district through Governmental organization and more than 600 plants through private sector (Source: District Development Committee Kailali). In spite of the advantageous location of the area in term of electric grid; the high adoption rate that has taken place in the last three years, points towards the immense potential of the AET in the area. It is, therefore, high time to assess operation of the program in the area so that the experience can be used for future implementation in new program areas. This would help benefit target group in delivering services more appropriately.

3. OBJECTIVES OF THE STUDY

For sustaining the alternative energy programs, it is essential that the new technology must be related or linked to the needs of the people. As for guidelines, TOR obtained from Alternative Energy Promotion Center the study aims to evaluate and assess the socio-economic impact of the alternative energy technology in the Kailali district with the following objectives : To study the socio-economic status of the user after and before implementation of the RET program in the district; To evaluate the overall situation of the renewable energy program in the study area; To find out the types of the RET and number of the plants installed in the study area and their situation; To study and find out the number of population benefited from the RET and how this technology has assisted to alleviate the poverty;
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To assess and study the various use and utilization of the RET program in the study district; and To fined out the number of the organizations involving in the development of RET program in the study district.

To meet these activities related to RET, a case study based on field visit with primary data as well as secondary data collection was followed. The study focuses mainly on socio-economic changes among the users taken place after the implementations of RET as compared to prior RET implementation.

4.

METHODOLOGY

The study is based on the primary as well as secondary sources of information collected at the local level by using pre-prepared semi-structured questionnaires (Annex -1)

4.1 Sampling
The secondary information concerning on socio-economic aspects at the district level was collected from relevant banks, private biogas companies, NGOs, etc. The study is based on the empirical data gathered from the biogas user communities of selected VDC of Kailali (Malakheti). Till the study period it is estimated that there were 2222 biogas holders in the district and more than 60 biogas plants were in Malakheti VDC among which 33 households were randomly selected by covering all wards of the VDC. A review of the respective program was undertaken to identify the main stakeholders and programmed elements based on research literature and secondary data along with primary data (field visit). After visiting various stakeholders related to the AET, the valuable information on the status of program concerning issues like subsidy, bank \oar\s, private sector participation, training and extension and quality of construction were obtained.

4.2 Field Survey

Randomly selected sample of 33 biogas users were interviewed in the field with preprepared semi-structured questionnaires (Annex - 2) Administered to the biogas users, focus individual as well as group discussions with the community and the meetings with the VDC, DDC, and other biogas companies and organization's members were discussed. The following tools were employed to generate required information. Review of available studies, documents and research.
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Interviews with households of biogas users. Total numbers interviewed were 33 in Malakheti VDC and the views taken from different related stakeholders. Focus group/individual discussions with the selected related key informants like local political leaders, teachers, supporting agencies, etc. for obtaining qualitative information about the program as well as to access the reliability and accuracy of the data collected from the field. The farm level checklist and questionnaire focused in the information related to population concerns, income, quality of life, agriculture benefits, environmental benefits, operation and maintenance and bank finance from the sampled households.

5.

FINDINGS

5.1 Institutions and Organizations for Biogas Development and Promotion

Institutions and organizations for biogas development and promotion to fulfill the world energy crisis, a number of institutions, donors, INGOs, NGOs, GOs and private entrepreneurs involved at various stages of the programs have been on existence. The major institutions involving in the area have been briefly discussed on how each has helped AET development.

5.1.1

Gobargas and Agricultural Equipment Development Company {GGC)

With an objective of promoting biogas technology in the country, GGC was established in 1977 as a private company (a joint enterprise consisting of development consulting services of united mission/Nepal, ADB/N and the Fuel Corporation. Now a-days GGC is losing its market due to lack of fund and difficulties in retaining skilled in the field of completion, furthermore, its market share has also fallen to 48% in the country. Until such time (2000/2001) 70,270 biogas plants were constructed through out the nation, among them GGC has constructed 33,462 in numbers (Source: Report RUDESA). As the time passed to overcome the situation and create a competitive environment, the Biogas Support Program (BSP) was introduced. According to the GGC personnel of study area, the subsidy on the construction of Biogas plant is varies from NRs. 5500 (for 8/10m3 capacity plant) to NRs. 6500 (for 4/6 m3 capacity plant) and a total of expenditure for completing a plant is observed NRs. 23000. Till now, there are about 17 biogas plants established in Malakheti VDC
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but the trend according to the number of plants established is observed as Dhangadhi Municipality, Shripur VDC, Geta VDC (more than 65 plants), Belatipur and Malakheti VDC (only 17 plants). It is observed that the electricity facilities do not hamper the establishment of biogas plants because Municipality, Geta VDC are the electricityaccessed areas. The numbers of plants are high in these areas. The field study and visit to GGC personnel show that the adoption of these plants will be increased if the government has fixed vision on AET increase the amount of subsidies and the fixed determination of the construction cost of the plants. In addition, they have positive view on the establishment of biogas plants because of its unlimited benefits concerning resources management aspects, healthy, environment, agriculture, and education aspects. Now the limited (company) is running with grant support of Germany and Nether land.

5.1.2

Financial Institution

Agriculture Development Bank (ADB) of Nepal played an important role in the promotion of biogas technology since 1974/75 by disbursing loans to the interested individuals for installing biogas plants. The bank was also active in caring out promotional activities such as training and information dissemination. In the initiation phase, ADB/N .has played a pioneering role for the development and promotion of biogas. It is the loans for these people who are interested in installing the biogas plant have no money in their hands. Therefore, the interested people can meet their interest for construction of the plant through bank's finance. Nowadays, three major banks of Nepal namely ADB, RBB and NBL forward finance for the prospective borrowers and the conditions for borrowing differ from bank to bank. And the repayment period, periodicity and rate of interest charged varies between 3 to 7 years, 3 to 6 is months and 15,13 and 11 respectively. The interest rate changed highest for ADB/N at 15 percent followed by 13 percent and 11 percent for RBB and NBL respectively (Table 1). All the banks provide and interest rebate of 1 percent if the instalment is paid on time. Table 1: Repayment period, periodicity of instalments and interest rates for biogas loans by banks.
Bank Repayment Period (years) Periodicity of instalments (months)

ADB/N RBB NBL

7 7 3 to 4

6 3 3 to 6

Interest rates (%) 15 13 11

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ADB/N : Agriculture Development Bank Nepal RBB :Rastriya Banaijya Bank NBL : Nepal Bank Limited In the study area, Malakheti VDC, the people have not utilized financing facilities provided by the above-mentioned banks.

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5.1.3

Private Entrepreneurs and Other Agencies

Due consideration of following the government policy to encourage private sector participation and realizing the fact that the government agencies will not be able to provide services to meet the ever increasing demand for the establishment of sufficient biogas plants, these new private companies were established to fulfill the demand. To-date more than 49 biogas companies have been registered and are being operated in the country. In Kailali, so far, there are three companies namely Public Gobargas and Rural Development company (PGC), Biogas Bistar Company (BGC), Rastriya Biogas Company (RBC), involved actively in the installation of biogas plants. According to the district profile, 1622 biogas plants installed by the government organizations and more than 600 plants by private sectors. PGC has constructed more than 16 biogas plants and G&C has constructed more than 17 biogas plants in the study area (Malakheti) till now.

5.2 Biogas Users 5.2.1 Characteristics of the Users

Most of the already conducted researches show that the living standard of biogas holders is better, characteristics by large to medium land holdings, greater number of livestock and high literacy rate (Development Part, 1997; IRDS, 2000; CMS, 1999, East Consult, 1994). Because of this short period not surface study, all of the important population features are close to the earlier estimated figures by the previous studies. The average family size of the HHs is estimated at 9.1 and literacy rate at 60% from the information collected from 33 households covered by the study. The range of family size varies from 4 to 25 but the average size observed is 9.1 and the literacy rate of the users is higher than that prevailing in the rural areas of Nepal. It is so because of the policy of loan flow of the banks for the favorably construction of biogas plants; i.e., land holding and minimum number of livestock. In the other hand a segment of the population represented by occupational caste, bonded labour, whose economic activities are not land and livestock based, would always remain outside the coverage of program. Nevertheless, livestock rearing is an important agricultural enterprise of the poor families in general. About two-thirds of Nepal's livestock owners have less than 1 hector of land and women and children contribute significantly to livestock rearing activities (APP, 1995).

Therefore, poorer section also may be benefited with RET concerted efforts are still necessary. To reach this section, the financial loan facilities and subsidies provided
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conveniently and easily to those poor to overcome this type of problem in the country.

5.2.2

Socio-Economic Situation

This chapter gives the profile and the socio-economic situation of the survey VDC, namely Malakheti, Kailali, which includes the topography, land use, natural vegetation and economic situation. The households have also been discussed. Relevant secondary data from the past micro-studies and the profile of the district have been referred or cited wherever applicable during the description.

5.2.2.1

Natural Resources

Kailali is a Treai district of Far Western Development Region of Nepal with an area of about 3235 square km. About 22.4 percent of its area is agriculture land and 73 percent of the total area is forest. The remaining area includes pastures 1.3 percent, and barren land 1.3 percent (Source: CBS 2048 census). The average land holding size is 3.45 Bigha (Malakheti) indicating limited arable land available for farming. The altitude of the district varies from 109 meters to 1950 meters above sea level. About 60 percent of total land is Terai and rest 40 percent is hilly area (Chure Pradesh) of the district.

5.2.2.2

Population

The district has the population of 210127 male and 207764 female. Total number of households is estimated 73803 with average family size of 6.9. The population density is 190.85 persons per square km. Ethnically the district is comprised of chhetries (14.48%), Brahmin (9.58%), Thakuries (3.34%), Tharus (49.52%), occupational castes such as Kami, Damai, Sarki, etc. (12.1%) and others (10.97%) (Source: CBS 2048 census). In the study area (Malakheti) the population of male is 7811 and female is 7892 and households is 2402 according to VDC record 2056/57.

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5.2.2.3

Food and Cash Crop Production

About 80% of the total population engaged in agriculture. Rice, wheat, mustard and sugarcane are the major crops grown in the area; however, the establishment of sugar mill at Chuha, Kailali, the cultivation of sugarcane is increasing. Increasing trend of immigration causes deficit the food production. The process of urbanization in the area also is another causes of deficit of food production.

5.2.2.4

Occupation and Income Sources

The total economically active population is 50 percent. The proportion of population engaged in farming 88.4 percent (source: District profile: 2057). Income from service, business and trade is limited but income from agriculture is comparatively high due to the fertile Terai land. The study area is the land of migrants from the hill districts of FWDR of different ethnic groups and Tharus of local habitant. People residing in close proximity of the district headquarters had better charges of getting services and running business. However, wage labour (farm labour, porter and construction work) is considered as the minimal source of income for most of the groups except Tharus.

5.2.2.5

Land holding and Marketed Surplus

After the study, it is found that the average size of land holding of the biogas users is 3.45 Bigha (48.3 Ropanies), that varies from 7 ropanies to 168 ropanies. All the users are using their own land but nobody has rented others' land. The major crops grown in the area are rice, wheat and mustard. Now sugarcane is cultivating commercially due to the establishment of sugar mill in the district. Among the users, six were cultivating sugarcane in their fields commercially, two were cultivating beans and one user was cultivating potato in commercial manner. Users in the area grow substantial amount of vegetable for their daily use. The estimated income of some users from food grains varies from NRs 5,000 to 150,000 where as most of users use only for their daily consumption. Commercially cultivating sugarcane and other vegetables indicates favorable for financial institutions for the recovery of their loan, which was taken during the establishment of biogas plants and other activities. The average market price of rice, wheat and sugarcane has been found 550, 750 and 120 respectively.

Land Holding of the Users

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Land Holding (Bigha) 10 to 2 B2to4 D4to6 D6to8 8to10 D10to12

5.2.2.6

Livestock Ownership

The principal raw material for biogas plant operation may be used from cattle, buffalo dung and agricultural residues. Therefore, it is the most important factor for operation of plant depends on the number of cattle and buffaloes they have (or that the users have). It is found that the average size of cattle and buffalo is 5.17 and 1.29. However, biogas users in the area mainly used cattle dung and buffalo dung as feed to the plant. A few number of users (five) connected their latrine to biogas digesters. The number of cattle and buffalo ownership is must to obtain loan for financing biogas plant. The norms established by the GGC relate the family size and cattle number, which has linked to the size of biogas plant. The norm along with the figures obtained from the users in Kailali district study area (Malakheti) has been presented in Annex-4 for comparison. It is seen that 51 percent users constructed low capacity plants than the recommended on the basis of family size. Among these, animal numbers is a serious problem for 40 percent users i.e. due to low animal holding but 36 percent has not the animal problem. Thirty five percent users have the capacity to construct the recommended size but they did not do so. Thirty five percent users have constructed the recommended sized biogas plants and 33 percent users have not sufficient animals for regular operation.

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It is seen that there was no serious consideration during the construction of biogas plants according to the number of animal holdings.

5.3 5.3.1

Constructions, Operation and Maintenance of Biogas Plant Construction Company

Most of the biogas plants of the area were constructed during the period of 1999 i.e. users were having biogas plants during last 3-4 years and some users were having as older as 6-7 years and some were constructing recently. Of them (interviewed users) twelve plants were constructed by Public Biogas Company (PGC), five plants were constructed by Gobargas and Agriculture Equipment Development Company (G&C) and sixteen plants were constructed by Gobargas Bistar Company (GBC). Though there are more than 50 biogas companies existing in Nepal until now, only a few numbers of companies were working in the surveyed area (Annex - 3). Although, there were more than 4 biogas companies operating in Kailali district only a fewer numbers of companies run their operation in a specific area. When the fewer companies operate in an area, non-competitive elements in the marked are bound to appear. Hence, it is desirable that monitoring of there essential gets maximum benefit of the competitive market. If there is competition, the construction cost and other subsidies will be minimized. This causes increase in the level of acceptance of the technology.

5.3.2

Reasons for Installation

Biogas users were asked the reasons behind the installation of biogas plants and : the results are presented in table - 2 below.

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Table 2 : Reasons for installation of biogas plants Reasons Save fire wood Save kerosene Smokeless Environment Bright light Good fertilizer Convenience Cleanliness Better health Subsidy Others Number of Users/100 units (priority)
65 22 76 54 65 22 22 33

From above table the important reasons behind the installation mentioned by the users are smokeless environment, save fuel wood, convenience of handling and cooking, value of slurry as good fertilizer, availability of subsidy, which were observed based on priority basis. There were other reasons mentioned are cleanliness, better health and saving of kerosene which were given comparatively less priority. Though, all the users have taken subsidy during installation, they are giving it less value. Though most of the users of non-electricity areas installed biogas plant expecting lighting along with cooking purpose, they all complained the quality of light i.e., not dependable, not durable. Nevertheless, the purpose of electricity user area is found only for the cooking purpose not for lighting purpose. Among the high priority responses, convenience one of the most important reason has not received the same level of treatment as others in the biogas literature.

5.3.3 Construction Cost and Subsidy

The construction cost and subsidy on biogas is different in different geographical regions and the size of the plants of different organizations, which is presented in table 3. The percentage of subsidy in the total construction cost diminishes as size of the plant increases. The subsidy rate for the same sizes of biogas plants increases as one moves up from Terai to hills. For example, amount of subsidy QS percentage of cost is estimated at 24.7, 36.6 and 44.3 (average) percent in Terai, accessible hills and remote hills respectively for a 4 m3 to 10 m3 plant.
Table 3 : Construction cost and subsidy by region and size of the biogas plants: (construction and subsidy in Rs.)
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Region

Terai Accessible hills Remote hills

Size of the plants 4m3 6m3 8m3 10m3 CC GS CC GS CC GS CC GS 20,000 6,500 23,300 6,500 27,000 5,500 30,400 5,500 (32.5%) (20.4%) (18.1%) (27.9%) 20,300 9,500 23,600 9,500 27,600 8,500 31,000 8,500 (40.2%) (46.8%) (27.4%) (30.8%) 20,300 11,500 23,600 11,500 27,600 10,500 31,000 10,500 (48.7%) (38.0%) (56.6%) (33.9%)

Source : G&C and HMG/N Ministry of Science and Technology (AEPC) CC : Construction Cost GS : Government Subsidy Figures in the parentheses indicate subsidy as percentage of total cost.

5.3.4 Feeding and Size of Plant

Being Terai District, farmers raise buffaloes, cattle, goats than other animals. Therefore, the main feed for the bio-digesters is buffalo dung and cattle dung. All the interviewed biogas plant owners were found using buffalo and cattle dung as main feed; only 5 out of 33 owners have connected latrines also to bio-digesters supplementing the available feed with night soil (Table-4). The level of acceptance to connect latrines to biogas digester is less because of the conservativeness of the users and the devoid of toilets in their houses. It is observed that most of the households are using open toilets and some uses toilet as reparation.

Size of Biogas and Number of Users

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Size of Plants(cub. m)

Table 4 : Feed, Size of plant and user's satisfaction: Family No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 SP 6 6 10 6 8 8 20 8 6 8 8 8 8 6 6 10 8 6 LC QDF 25 35 60 30 60 45 120 60 45 45 60 50 50 40 20 75 45 30 QWU 25 30 60 30 50 45 120 60 50 45 60 50 50 40 25 70 45 30 Ratio D:W 1:1 1.16:1 1:1 1:1 1.2:1 1:1 1:1 1:1 0.9:1 1:1 1:1 1:1 1:1 1:1 1:1.25 1.07:1 1:1 1:1 VS/MS/NS MS VS VS MS MS VS VS VS MS VS VS VS MS VS MS MS MS VS

9 9

20

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

6 6 8 8 10 10 8 6 10 6 8 8 6 10 6

35 40 45 50 65 60 35 35 70 40 55 60 40 60 40

35 40 45 50 60 60 35 40 60 40 55 60 40 60 40

1:1 1:1 1:1 1:1 1.08:1 1:1 1:1 1:1.14 1.16:1 1:1 1:1 1:1 1:1 1:1 1:1

VS MS VS VS MS MS MS VS MS VS VS VS MS VS VS

SP - Size of the plant in m3 (cubic meter) LC - Latrine Connected QDF - Quantity of Dung feed (KG) QWU - Quantity of water used (liter/KG) D:W - Dung : water ratio VS - Very satisfied with biogas supply MS - Moderately satisfied with biogas supply NS - Not satisfied with biogas supply Recommended daily feed as per GGC for 6m3 plant = 36 kg minimum Recommended daily feed as per GGC for 10m3 plant = 60 kg minimum It is observed that the socio cultural and religious beliefs were behind in order to increase efficiency of the plants they have owned. It is also applicable to the other overall development activities. From above presented table-4, it is observed that not all the owners were using the proper recommended dose of the dung to run plant smoothly. It is because of the few livestock holding, conservative thinking about the use of latrines. Most of the owners are refusing the connection of latrine to the biogas digester due to because the gas produces from the human faeces is not acceptable for cooking purpose. Feeding in a digester was observed irregular and the recommendation rate of feed was not considered during feeding. Some of the owners have less dung production than the digester's capacity.

21

As far as dung: water ratio is considered satisfactory for some users but at a very satisfactory and a few was satisfactory but there was no unsatisfactory owners observed. It is found that use of night soil through latrine connections seems to have supplemented the bio-digesters to run smoothly at full capacity. If the plant does not operate with full capacity, the goal of subsidy is not met. Continuous promotional and correctional measures in this regard need to be introduced whereby the subsidized plants are regularly run and operated. For this, the regulator field monitoring and evaluation is the most.

5.3.5 Operation and Maintenance after Installation of Plants

All the users were asked about the availability of maintenance services after installation in the area to ascertain whether these create problems or not in the operation of plants. Most of the users reported the availability of such type of help from the related biogas construction company whenever requested. These services were normally attended in less than a week, however some cases were even the same day. Most of the users were using the slurry (mixture of dung and water) in their plants for smooth operation. The maintenance work is the thrown of liquefied water by gas in pipe which work completes within two minutes. All the users were firmly maintaining their pipes, nuts, nozzles and check the leakages of the gas. In addition, it was observed that all of the users were cleaning their stoves. The used off slurry is using with waste materials (straw, leaves, etc) for preparing compost manure. The maintenance work has been assisting by the supervisors provided by the companies. Most of the companies were providing survives after the installation of the plant by their supervisors. Public Gobargas Company has been providing two supervisors in the study area (Malakheti VDC) Most of the users were feeding with the capacity of the plant and a few numbers of users were net fulfilling the requirements due to the lack of animals. Therefore, a few numbers of plants were irregular in operation and most of the plants were in regular operation. Though the number of biogas plants in the area is not less, the guarantee period provided by the companies is not reach in the end. So, there was not any problem in maintenance and the cost of maintenance of the plants except the bulbs and mesh (warranty Period - 6 years)

22

5.4 Socio-economic Benefits of Bio-gas Technology 5.4.1 Bio-slurry as Fertilizer

The used off digested slurry is applied as fertilizer in the users field crops having the dual purpose of dung i.e. source of energy and fertilizer. Containing more nutrients content biogas slurry is valuable as compared to FYP (farm Yard Manure) because the nutrients are lost by utilization (esp. Nitrogen) in FYM due to exposure to sun as well as by leaching. The N:P:K content in the digested slurry is estimated at 2.7:1.9:2.2 respectively (CMS, 1996). The capacity of soil nutrients is replenish higher than FYM and to some extent replaces the need for chemical fertilizer. All the users applied digested slurry as fertilizer in the area; among them most of the users applied slurry by preparing compost manure with other waste products like straw, leaves, twigs, etc. which help the fast decaying and drying of slurry and few applied fresh liquid slurry in their fields. Most of the users make two pits for collecting digested slurry so that they can make mixed manure with straws, leaves, etc.

5.4.2

Effects of Bio-gas on Fuel Wood Consumption and Health

Most of the users visited used gas for cooking purpose but also they have one lamp in their kitchen for lighting purpose (in the areas devoid of electricity). However, due to the low capacity, irregular consumption of feeding, season, they do not give priority on lighting rather than cooking. The areas of electrified the gas is used for cooking purpose only. Most of the users complained that the gas sufficiency is decreased during winter season. On the average each households burnt 420 kg of fuel wood per month before the installation of the plant which has come down to 100 kg, a least amount, after the construction and use of biogas plants. Assuming each user saves 320 kg of fuel wood consumption per month, the annual saving of fuel wood consumption in Kailali district with 2222 biogas users is estimated at 8532.48 metric ton per year. Its monitory value amounts to NRs. 85.32 million per year at a price of NRs. 1000 per metric ton fuel wood.

17

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5.4.3

Effect of Biogas on Environment

The user households reported that stall feeding of cattle and buffaloes has increased due to the biogas, since as member of household don't go to forest for collection fire wood, cattle and buffaloes also will not be taken to forest for grazing. However, these activities are not fully applicable, certainly the great portion of these activities are observed. It is said that these activities certainly reduces the environmental hazards. Free grazing, uncontrolled mass of animal, during everywhere is the major factors for the worsening of environment. Adoption of biogas certainly improves the natural environment as well as social environment. Though it is difficult to measure the value of biogas on environment, the environmental benefits of these activities are high. If we use biogas, in our house, it is clean, safe and it does not produce the harmful gas. This causes the reduction in the respiratory and other disease so it is environmentally friendly.

5.4.4

Effect of Biogas on Sanitation and Health

The most important factor, which is difficult to value, is clean air within house made possible due to biogas construction and use, which is very essential for good health. The obnoxious fumes produced from burning fuel wood creates wide spread health hazards in the rural areas, especially to women and children. Most of the users reported decrease of eye diseases, cough, headaches and chest pain after the construction of biogas plants and its use in their household. Most of users reported the unnecessary heaps of firewood caused dirty environment and sometimes it has the home for poisonous snakes and other enemies. Moreover, the other unnecessary straws, leaves around their house are used for making compost manure, which make the environment clean and sanitize, which ultimately help maintaining good health condition of the people. In addition, the latrine connection to the biogas makes the surrounding green and clean, which supports on the better health.

5.4.5

Effect of Biogas on Other Activities

Further more, households reported after installation of biogas plants significant time is saved in cooking, cleaning and firewood collection, which properly used in other income generating activities will bring great fortune to them. To fulfill the requirements of the dung for biogas plant, the additional animals were raised by the most of the users, which is ultimately the source of income concerning their milk, meat, etc. Except this, none of them reported starting a different new income generating activities after the construction and use of biogas.

24

There were several advantages reported by the users. Indeed, from the users point of view, the investment on biogas plants is observed to be financially viable, if all benefits like firewood saving, kerosene saving, labour time saving and increment in production are properly accounted.

25

Annex -1

26

27

28

29

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Annex -2
Selected Bio-gas Users of Surveyed Area Interviewed S.N. 1. 2. 3. 4. 5. Name of the Biogas Holders Chandra Dev Sharma Hark Bahadur Shahi Ram Datta Bhatta Pradeep Singh Damodar Bhatta Lai Mani Bhatta Sir Bahadur Rawal Indra Dev Bhattrai Kalu Ram Bhat Bijaya B.K. Hari Krishna Bhatta Kalu Ram Bhattrai Bir Bahadur Bhat Bhim Datta Bhatta Bir Bahadur Air Iswari Rawal Shiva Raj Bhatta Bhanu Bhakta Joshi Bhanu Bhakta Joshi Bijay Raj Joshi Dhruba Bahadur Shahi Dashrath Pali Address MalakhetiVDC-1 MalakhetiVDC-2 MalakhetiVDC-2 MalakhetiVDC-2 MalakhetiVDC-2 MalakhetiVDC-2 MalakhetiVDC-2 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-3 MalakhetiVDC-4 MalakhetiVDC-4 MalakhettVDC-4 MalakhetiVDC-5 MalakhetiVDC-5 MalakhetiVDC-5 MalakhetiVDC-6 MalakhetiVDC-6 Construction Company PGC PGC GGC PGC GGC GBC GBC GBC GBC GBC GGC GGC PGC PGC PBC p&e PBC PGC PBC PBC PBC GGC

6.
7. 8.

9.
10. 11. 12. 13. 14.

15.
16. 17. 18. 19. 20. 21. 22.

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Jalbinayak Pandey Dirgha Bahadur Bista Ram Bahadur Bhat Kaila Ram Chaudhary Raghubir Singh Mani Raj Naunyal Mohan Lai Tiwari Dilii Ram Khatri Laxman Air Sher Bahadur Mahara Mukta Bahadur Khatri

MaiakhetiVDC-6 MalakhetiVDC-6 MalakhetiVDC-6 MalakhetiVDC-6 MaiakhetiVDC-6 MalakhetiVDC-7 MalakhetiVDC-8 MalakhetiVDC-8 MalakhetiVDC-9 MalakhetiVDC-9 MalakhetiVDC-9

PGC PGC PGC PGC PGC PBC PBC PBC PBC PBC PBC

32

Annex - 3

Bioqos Companies Operating in Kailali District

1. 2. 3. 4. Gobargas and Agricultural Equipment Development Company (GGC) Public Gobargas and Rural Development Company (PGC) Gobargas Bistar Company (GBC) Rastriya Gobargas Company (RGC)

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Annex - 4
Family size, number surveyed area of livestock and size of biogas plants in Kailali district in surveyed area of Family Constructed Family Size recommended No. Livestock No. as per Family Size Size of Plant Size 3 Owned (m )
1 2 3 4 5 6 7 8 6 6 10 6 8 12 7 6 4 13 10 11 7 15 4
Q

8
20 8 6 8

9 10
11 12

8
8

15 8 6 6 15 15 15 8 15 6 10 6

3 2

Livestock No. Recommended for the plant size 9-14

4-6 3-4 3-4

9
3 11 4 14 10 4 2 23

9-14 9-14 9-14

4-6

9-14
3-4 6-9 3-4

9
5 6 1 24 4 11 5 10

13
14

8
6 6

7
11 5

8
15 6

4-6 9-14
3-4

15
16 17 18

10 8
6 6 6 8 8 10

25
9 12 4 15 6 12

35 10
15 6 15 6 15 10 20 10 6

14-above 6-9 9-14

3-4

19
20 21 22 23 24 25 26

9-14
3-4

3
3 4

9-14
6-9

10
8 6

9 19 9
5 12

5 7 5
4 5 7 3

14-above
6-9 3-4

27
28

10 6
8 8 6 10 6

29
30 31 32 33

7 7
11

15 8
8 15 6

9-14
4-6 4-6

9-14
3-4

4 7 8 6 6 Source : GGC and users interview

5
6

4-6
3-4

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PHOTOGRAPHS
Annex - 5
Slurry Intake

Biogas Plant

35

Slurry Collecting Pit after Use

Slurry Collecting Pit after Use

36

Cooking by Using Gobar-gas Energy

Cooking by Using Gobar-gas Energy

37

Discussion on Gobar-gas Impact with Biogas Staffs

Slurry Intake

38