Regional: Preparation of Energy Efficiency Policies and Guidelines for Bhutan and Nepal

Sovereign Project | 46494-001

Summary

The TA will support to prepare national energy efficiency and conservation policies and guidelines for Bhutan and Nepal. The initiatives also include assessment of Energy Efficiency Potential in Bhutan and Nepal. The TA intervention will be conducted linking with the existing policies, regulations, standards, technology deployment and other issues, and best practices in the neighboring countries, such as in India. The consultant will prepare the policy studies and to prepare the Energy Efficiency Policies, Guidelines and Technical Reports. The TA is proposed to be implemented from January 2013 to November 2013.

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Project Name Preparation of Energy Efficiency Policies and Guidelines for Bhutan and Nepal
Project Number 46494-001
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8276-REG: Preparation of Energy Efficiency Policies and Guidelines for Bhutan and Nepal
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming
Description The TA will support to prepare national energy efficiency and conservation policies and guidelines for Bhutan and Nepal. The initiatives also include assessment of Energy Efficiency Potential in Bhutan and Nepal. The TA intervention will be conducted linking with the existing policies, regulations, standards, technology deployment and other issues, and best practices in the neighboring countries, such as in India. The consultant will prepare the policy studies and to prepare the Energy Efficiency Policies, Guidelines and Technical Reports. The TA is proposed to be implemented from January 2013 to November 2013.
Project Rationale and Linkage to Country/Regional Strategy National Policy, Guidelines and Act on Energy Efficiency and Conservation are essential for the implementation of energy efficiency roadmap. Bhutan and Nepal lack such National Energy Efficiency and Conservation Policy and Guidelines. In order to promote economic activity, Energy Efficiency initiatives cannot be viewed in stand-alone; rather, it should be linked to policies, regulations, standards, technology deployment and other issues as part of an overall strategy.
Impact Improved energy efficiency in Bhutan and Nepal
Project Outcome
Description of Outcome Enhanced capacity of Bhutan and Nepal to pursue EE initiatives
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Draft National Energy Policy for Bhutan and Nepal completed.

Draft Energy Efficiency and Conservation Guidelines for Bhutan and Nepal completed.

Technical Reports on the Assessment of Energy Efficiency and Conservation Potential of Bhutan and Nepal completed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultation conducted during implementation of TA 8025 and SASEC General meeting in November 2012.
During Project Implementation

A consultation mission was fielded for Bhutan and Nepal on 4-5 December 2014. The main objective was to present the TA findings to both countries and draw from Sri Lanka experiences on energy efficiency initiatives.

A consultation workshop for Bhutan was held on 23 July 2014 in Thimpu, Bhutan. About 30 participants from various government agencies and other stakeholders took part in the workshop. A lively and objective discussion took place in the workshop and Director of the Department of Renewable Energy assured that recommendation of the report will be incorporated in the draft EE policy of Bhutan.

A similar workshop was planned for Nepal. Due to scheduling difficulties becuase of a World Bank workshop and visit ofhigh level Indian delegation, the Government of Nepal was unable to confirm the workshop date. An ongoing tussle between Water and Energy Commission Secretariat and Ministry of Energy regarding institutional ownership of energy efficiency in Nepal also contributyed to the indecisiveness of the date of the workshop. The mission, with the advice of the management, decided to meet key officials and briefed about the TA findings. Only notable meeting that di not materialize was with Secretary, Ministry of Energy who was stuck in a parliamentary session which discussed the recent Indian Government proposal on a large hydropower project. Mission requested comment from all the agencies it met within two weeks to finalize the report.

Inception Meeting conducted last 21 October 2013 in Bangkok, Thailand. During the Inception Meeting, the following were discussed and agreed:

(a) The Energy Efficiency technical report and policy guidelines cover not just the electricity but also other relevant sub-sectors including buildings, commercial, industrial and transport that have significant potential for energy usage reduction. The policy guidelines would be developed based on the country context and energy usage.

(b)The technical reports would not undertake primary studies but would review existing surveys, master plans and government documents to identify areas for significant energy usage reduction potential. In Nepal for e.g., several studies are being conducted by WECS that would provide useful input for technical report preparation. In Bhutan, it was suggested to invite views of Department of Trade since most appliances using energy were imported.

(c)The policy guidelines would include a section on institutional agencies with specific roles to implement the policy. The implementation of the policy including rolling out plans, capacity building of agencies, monitoring and evaluation could be considered for future TA support.

(d)Consultants requested a letter from ADB introducing them as ADB consultants for the TA to support on tasks such as discussion with key ministries and agencies and for data collection.

(e)The survey results provided during the SASEC roadmap preparation were shared in the draft inception report and comparative situation of all the SASEC countries provided. Representatives at the workshop were requested to review the comments provided by their countries and send review comments to the TA consultant. This input would be useful for future work to be supported under the TA.

(f)Attendees from Nepal requested clarification on the role of specific agencies in Nepal to coordinate on TA activities, policy guidelines development and implementation. This would be reviewed based on Government of Nepal comments provided during the TA processing and further information as provided by Government of Nepal.

Fact Finding Mission was fielded last 22-25 January in Bhutan.

Responsible ADB Officer Herath M. Gunatilake
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 12 Dec 2012
Last Review Mission -
Last PDS Update 31 Mar 2015

TA 8276-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2012 - 12 Dec 2012 31 Dec 2013 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 12 Dec 2012 210,150.43

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