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Small hydro and rural development in Tajikistan — Energy for development and poverty reduction

Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia. Small hydro and rural development in Tajikistan — Energy for development and poverty reduction. Zoran Morvaj . Contents. 1. Situation analysis and UNDP approach

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Small hydro and rural development in Tajikistan — Energy for development and poverty reduction

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  1. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia Small hydro and rural development in Tajikistan —Energy for development and poverty reduction Zoran Morvaj

  2. Contents 1. Situation analysis and UNDP approach 2. Area based piloting of RES driven Integrated rural development (IRD) 3. Scaling-Up of the RES driven IRD 4. Enabling Environment for the Scaling-Up 5. Impacts of Improved Access to Electricity on Poor Households and on the Environment 6. Conclusion Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  3. 73% of population lives in rural areas → consuming only 8.58% of electricity! 53% of population lives below the poverty line (2007); The PRS III adopted, but poverty causes still not identified; 1 million people considered to be particularly affected by lack of access to electricity; Tajikisatn`s key resource – hydro potential! “Power Island” -> energy security and future energy exports are top national priorities: long term goal to finish HPP Rogun Intermediate solution needed! Situation Analyses and UNDP Approach – Background Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  4. Situation Analyses and UNDP Approach – Understanding poverty • Energy Poverty = Household’s inability to afford and/or to access the basic energy services, in the cases where desire to use these services exist. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  5. Situation Analyses and UNDP Approach – Understanding poverty • Urban and rural poverty • Basic energy services in rural households: • lighting, • heating, • cooking, • Lack of access to reliable and affordable electricity - key poverty driver at rural communities! Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  6. Poverty - Energy – a household energy balance Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  7. Poverty - Environment • Reliance on firewood – environmental degradation 7 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  8. Poverty - Energy efficiency Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia 8

  9. Poverty - Energy efficiency Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia 9

  10. D1 D2 D…l Donors Situation Analyses and UNDP Approach – Context . . . M1 M2 M3 M13 Ministries Issues Projects: Effects? ND & PRS pop. 7M (50% poverty rate) Fragmentation! Coordination and integration!!

  11. Situation Analyses and UNDP Approach – Governance Integration and coordination! 13 ministries GoT Strengthening institutional and regulatory framework for PRS implementation; Strengthening local capacities to implement and operate specific projects; Region (4) District (59) Establish vertical coordination and communication mechanisms Jamoat (ap. 406) City (ap. ….) (ap. ….) (ap. Village Mahala Mahala Mahala Mahala

  12. Local resources for local development and poverty reduction. 1. Every village in tajiskiatn is sitiated on at least one water flow - Small scale hydro power plants (sHPP) 2. 280-330 sunny days with 3.5 to 5.3 kWh/m2/day on the year Situation Analyses and UNDP Approach Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  13. Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  14. Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  15. Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. Electricity powering local workshops – creation of income generation opportunities! Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  16. Varsob district - Roh village: ski resort and hotel Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. ENERGY TOURISM Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  17. Key objectives Poverty reduction by improving access to electricity based on local resources and through that improving quality of basic social services, provision of clean water and creation of income generating opportunities – i.e. supporting integrated rural development (IRD); Provide impuls for economic development in the sectors related to RES (and EE), by devising support mechanisms for implementing rural RES (and EE) schemes; Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  18. Key Pillars of UNDP response: Establishing proper policy framework that will promote community based sHPP and EE projects: Intermediate Strategy for RES driven Integrated Rural Development and related regulatory framework Energy Efficiency Master Plan (EEMP) National Programme for RES driven Integrated Rural Development - National Scaling-Up Standardization guidelines for sHPP construction (30 – 500 kW); Developing local manufacturing, engineering, operation and maintenance capabilities related to RES and EE: District Development Planning Situation Analyses and UNDP Approach Local resources for local development and poverty reduction. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  19. How we are doing that: Area based piloting of RES driven Integrated rural development (IRD) Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  20. 2. Area based piloting of RES driven Integrated rural development (IRD) 20 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  21. 2. Area based piloting of RES driven Integrated rural development (IRD) • AIMS: • To develop and implement pilot projectsfor integrated ruraldevelopment driven by provision of electricity from mini hydro (possible other renewable) as the driver, and then to integrate clean water, irrigation, food, employment, education and health issues. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  22. Key Issues: to made the approach sustainable by involving local communities as operators of facilities, collecting payments from communities during winters, and selling electricity to the grid during summers where feasible; to support capacity strengthening at relevant institution (ministries, district, jamoat, local communities) for implementation of PRS; Situation Analyses and Approach Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  23. 2. Area based piloting of RES driven Integrated rural development (IRD) • Vahdat district/city • 10 jamoats, 178 villages; • population 268,700: • 83,762 are employed, • 31,312 are unemployed, • 17,601 are pensioners, • 143 schools; • 83 hospitals; Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  24. 2. Area based piloting of RES driven Integrated rural development (IRD) • Jamoat Bozorboy Burunov • 15,000 inhabitants, 17 villages and 449 dehkan farms; • The main activities are land cultivation and cattle breeding; • List of Jamoat administration (salaries 467 – 92 TJS/month): Head of Jamoat - Deputy of the head of jamoat Secretary, Chief accountant, Accountant, Cashier Accountant on statistics, Land surveyor Specialist on regulating national traditions Secretary (assistant), The head of military department Deputy of the head of military department, Operator Maid (cleaner), Guard Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  25. 2. Area based piloting of RES driven Integrated rural development (IRD) The jamoat’s annual budget: 314.680 TJS, The social units in the jamoat: 3 ambulance stations, 8 medical points, 2 kindergartens, 1 polyclinic. 1 school and 1 hospital (on Vakhdat district budget) Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  26. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project 1: Construction of sHPP for community use during winters and for selling electricity to the grid (Barki Tajik) during summers “On the Introduction of Changes and Amendments to the Law on Energy» Article 1. The following changes have to be Introduced to the law on “Law on Energy” dated November 29, 2000 Reg. # 12, Article 633): Add the following changes to the Article 15 part two and three: “In order to promote and support the development of small energy, to introduce and use alternative sources of energy, ………………..” Date: July 30, 2007 Reg. #310 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  27. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project s: Rehablitation of hospital – Gulobad village Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  28. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project 2: Rehablitation of hospital – Gulobad village Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  29. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project 3: Rehabilitation of School Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  30. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project 4: Water pump station repair Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  31. Pilot project 5: create income generation opportunities construction of a Mini diary 500 l/day 2. Area based piloting of RES driven Integrated rural development (IRD) Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  32. 2. Area based piloting of RES driven Integrated rural development (IRD) Pilot project 6: create income generation opportunities construction of a greenhouse Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  33. 2. Area based piloting of RES driven Integrated rural development (IRD) ResultsAchieved : • Necessary capacity building initiated and ongoing: • An Inter-ministerial Task Force formed and active; • DDP for vahdat district developed and publicly presented, • Jamoat authorities actively patricide in all pilot projects • Local communities contribute for pilot projects with labor.. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  34. ~ 2. Area based piloting of RES driven Integrated rural development (IRD) 3. Policy and regulatory framework for RES utilization developed ResultsAchieved : • 2. Standardized procedures for community based sHPP: • Clear procedures and regulation; • Methodology for setting tariffs • Conditions for connection to Barki Tajik network • Technical standardization • Financial support • Vocational training • 4. EE master plan • Environmental sustainability in PA MEDT MoEI SCI IPP MoEd, MoAg&Env, MoH Jamoat Resource Center, … Dep. Of Statistics 5. Coordination mechanisms for PRS stakeholders in place

  35. 3. Scaling-Up of the RES driven IRD • Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success • Potential to develop local industry and supply chain- standardization Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  36. 3. Scaling-Up of the RES driven IRD • Excellent potential, eagerness of local people and familiarization with technology and its benefits => key to success • Potential to develop local industry and supply chain- standardization + it is here already 36 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  37. 3. Scaling-Up of the RES driven IRD • mHPP enables distributed electricity generation at the point of demand • RES generated electricty could replace some of the firewood used for erhatign and cooking • The average rural household -40 kilos of collected fuel-wood per day – women and children • Up to 6 hours of physical work daily • Significant financial returns to local economy through incentives and utilisation of locally available goods and services • Creation of income opportunities • Overall improvement of livelihoods 37 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  38. 3. Scaling-Up of the RES driven IRD Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  39. 3. Scaling-Up of the RES driven IRD Energy Efficiency • The selected EE measures should include the following: • improving building insulation by using locally available resources (straw and cane) and technologies (lathing and furring); • enhancing single glazed windows with a double glazing • improving cooking/heating stoves Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  40. 3. Scaling-Up of the RES driven IRD Energy Efficiency Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  41. 4. Enabling eenvironment for the Scaling-Up • Technology Transfer • Know how for O&M • Manufacturing capacity • Engineering services • Training and education • Public awareness and information Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  42. 4. Enabling eenvironment for the Scaling-Up National Trust Fund for RES and EE • To provide organizational and financial support for development of RES and EE in Tajikistan through: • Provision of institutional support for electricity producers from RES, particularly to the local communities , i.e. managing the scheme of guaranteed RES electricity buy-back • Incentives for electricity buy-back for grid connected mHPPs • Financial aid for preparation of RES/EE project (up to 40%) • Financial aid for thermal and for off-grid RES installations (up to 40%; up to 100%) 42 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  43. 4. Enabling eenvironment for the Scaling-Up • Legal establishment of the National Trust Fund for RES and EE • Government Regulation on establishment of “National Trust Fund for RES and EE” (drafted) • Establishment pursuant to the implementation of articles 14-16 of the Law “On the use of RES” and also on the basis of article 132 of the Civil Code • Main characteristics of the Fund: • Independent , non-commercial organization created by the Government • Funded by the Government wholly, or at least partially • Established for coordination and management of financial means targeted for development and implementation of RES and EE programs and projects • Projects of local communities for development of small scale energy supply systems have the priority in awarding financing from the Fund 43 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  44. 4. Enabling eenvironment for the Scaling-Up Sources of financing – selected options • Main sources secured by the Government • 0.7% of the annual lump sum cost of electricity supplied to the consumers through distribution grids as well of oil products imported by economic agents • 100% of the means collected from the environmental (ecology) tax paid by all vehicle drivers • Other sources: • means from the republic and local budgets, non budgeted means designated to the Fund at the order of the legislation of RT; • International and national (financial) institutions’ credits, grants and donations • Financial and material resources, allocated in compliance with multilateral and bilateral cooperation programs of the Fund; • Incomes from the own activities, i.e. incomes from the interest rates on preferential credits • Other sources not forbidden by effective legislations 44 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  45. 4. Enabling eenvironment for the Scaling-Up Awarding financial support from the Fund • Co-financing of projects/programs: • Allocated to physical and legal entities on the basis of open competition and inquiry • Priorities to be given to community based projects and realization of programs envisaged in strategic documents → systematic approach • Conditions for obtaining financial assistance from the Fund shall be determined by the Rules of the Fund: • up to 50% of total costs for construction of community based RES power plants with condition that that 50% of power plant value is supplied by local sources in equipment and works → resource based & development driven approach • up to 100% of total costs for national public promotional campaigns, educational and training programs on RES and EE → human resources development • up to 40% of total costs for preparing project documentation • up to 40% of total costs for installation of RES systems for production of heat and implementation of EE improvement projects • up to 100% of total costs for RES and EE projects in remote rural regions and in the public sector 45 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  46. 4. Enabling eenvironment for the Scaling-Up Awarding financial support from the Fund ( • Scheme for guaranteed buy-back of RES electricity 46 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  47. 4. Enabling eenvironment for the Scaling-Up Key pillars of the Fund’s operational strategy • The Fund is needed to kick-start RES and EE activities on larger scale • Demonstrates the Government commitment • Attracts international financial institutions! • How to make the Fund fully operational? • Systematic approach – operation based on national strategies and scaling-up plan for RES based IRD • Resource-based and development driven – support primarily mHPP and demonstrate inclusion of domestic materials, products and work force • Human resources development – support educational and training programs to build national capacities for implementation ofRES and EE projects 47 Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  48. 5. Impacts of Improved Access to Electricity on Poor Households and on the Environment Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  49. 6. Conclusions • Scaling-up impacts: • Decreased indoor pollution • 6 hours of saved time (women and children) -> possibility to acquire jobs and to study • Thousands of jobs and money making opportunities created • Millions of US$ to go back to local communities • Tons CO2 preserved in carbon sinks • Biodiversity preservation (decreased deforestation, soil erosion, desertification, salinization) • Overall improvement of the social services and quality of life Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

  50. 6. Conclusions • Addressing poverty by implementing sHPPs accelerates progress to MDGs achievement • Pilot projects proved successful => the way forward is to SCALE UP • Scaling up requires functional Trust Fund and Technology Transfer • The only available short-term solution for poverty reduction is to implement integrated rural development projects based on RES and EE. Third Inter-Agency Conference on Regional Coordination and Compound Risks in Central Asia

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