Use of clean, renewable and/or alternative energy technologies in rural districts of Kyrgyzstan Shamil Dikambaev Bishkek 2015 Contents


Assessment of political measures, advanced practices and business models for support of rendering sustainable power services in the rural areas of Kyrgyzstan



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2. Assessment of political measures, advanced practices and business models for support of rendering sustainable power services in the rural areas of Kyrgyzstan

The legal basis for development of RES and sustainable power supply to rural and remote areas of Kyrgyzstan are as follows [1-10]:

Laws:

• “On energy sector” (October 30, 1996);



• “On power sector” (January 28, 1997);

• “On power saving” (July 7, 1998);

• “On renewable energy sources” (December 31, 2008);

• “On introduction of amendments and additions in the Law of the Kyrgyz Republic “On renewable energy sources” (August 3, 2012).

Programs and Resolutions of the Government of the Kyrgyz Republic:


  • National energy program of the Kyrgyz Republic for 2008-2010 and the strategy of the development of the fuel and power sector until 2025.

  • National strategy of the Kyrgyz Republic “Integrated rural development up to 2010” (June 23, 2004).

  • Medium-term program of development of the Kyrgyz Republic for 2012-2014 (approved by the Resolution of the Government dated April 12, 2012).

  • Resolution of the Government of the Kyrgyz Republic dated May 28, 2012 “On medium-term strategy for power sector development in the Kyrgyz Republic for 2012-2017”.

In accordance with approved documents the Government policy should be focused on the following main areas:

  1. improvement of state regulation of the power sector;

  2. Improvement of management in power providers, enhancing the transparency of their activities;

  3. growth of power production and exports, improving the sustainability of power supply, efficient implementation of ongoing projects and programs.

  4. small- and medium-scale power sector development will be encouraged through the adoption of legislative measures aimed at increasing the economic attractiveness of development of small HPPs, and the use of non-conventional renewable energy sources, as well as development of the coal industry. One of the tools will become tariff compensation mechanism in power generation by mini-HPPs with use of renewable energy sources.

Law of the Kyrgyz Republic “On renewable energy sources” is a fundamental instrument in the field of RES. Act stipulates the legal, organizational, economic and financial framework, mechanisms for regulating relations between the state, producers, suppliers and consumers of renewable energy sources, equipment for production and systems for use of RES.

The objective of the law is development and use of RES, improvement of energy structure, diversification of power resources, improvement of social situation of the population, energy security, environmental protection and sustainable development of the economy.

It should be noted that the law provides for provisions essential for development of RES, and in particular exemption from customs duties of installations and equipment for RES production, as well as the fact that tariffs for energy from RES should ensure cost recovery and recovery of investments in less than 8 years. However, in order to implement the law, it was necessary to develop by-laws and provide mechanism for implementation of specific steps, including the calculation of tariffs for different producers of green electricity, taking into account cost-effectiveness and environmental benefit.

In this connection, the Resolution of the Government of the Kyrgyz Republic No 476 dated July 28, 2009 approved the Regulation on the procedure of construction, acceptance and technological connection of small hydropower plants to power supply systems. The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On renewable energy sources” was adopted on August 3, 2012.

The main objective of this law is to improve the economic mechanisms of stimulating the use of renewable energy sources, including small HPPs, in order to attract investments. The law stipulates supplement to the tariff for electricity produced from RES and small HPPs, during the payback period of projects using RES. This allowance will be made by multiplying the maximum current electricity tariffs approved by the appropriate coefficient approved for each type of RES:

• for units that use the power of water, the coefficient is equal to 2.1;

• for units using power of the Sun, the coefficient is equal to 6.0;

• for units that use biomass power, the coefficient is 2.75;

• for units using wind power, the coefficient is equal to 2.5;

• for units that use the power of the Earth, the coefficient is equal to 3.35.

Proposed allowances were determined on the basis of the analysis of special tariffs for RES in some other countries. The ultimate payback period for the projects on RES use is not more than 8 years, i.e. a grace period is determined for establishment of special tariffs for RES units, during this period such RES units should be paid off.

Also, according to this law the power distributing companies shall purchase excess electricity generated by RES and small HPPs, as well as the power not sold to other customers on a contractual basis, i.e. the buyers of electricity produced by RES units and small hydroelectric power plants, there should be power distributing company, which occupies a dominant position in the market of electrical energy in the administrative-territorial formation, where RES unit or small HPP is located. This provision corresponds to the international practice and creates conditions for the marketing of power generated by RES units.

Use of this mechanism combines the transparency and clarity for a potential investor, as the rates of allowances are envisaged in the law and the buyer to purchase the power generated by RES units is determined. This situation provides competitiveness of RES on the background of using traditional sources of energy.

Reflecting the global trend, these amendments increased the rates at which manufacturers of such power can sell its surplus to the national grid that can help relieve the pressure on the system. The regulating authorities are in the process of elaboration of necessary details.

According to the press service of the Kyrgyz Republic Government on October 1, 2014, the Vice-Prime Minister of the Kyrgyz Republic Valery Diehl carried out meeting on renewable energy sources, current situation and prospects for development, which focused on the current situation in the power sector of the country, current developments in the field of renewable energy sources, tariff policy, barriers, which prevent from intensification of work on RES use, both in industry and in the domestic sector. It was emphasized in the course of the meeting that given the sharp deficit of electricity it is necessary to establish a working group with involvement of specialists in the field of renewable energy sources in order to develop a plan of action on the use of existing RES developments and prospects, improvements of legal and regulatory frameworks to attract investors to this sector.

And, as it was noted above, it is necessary to introduce amendments to the Laws “On power sector” and “On town-planning and architecture of the Kyrgyz Republic” to improve the legal framework for development of power supply to rural and remote areas and connection of new consumers to the existing power supply system.

State Secretary of the Ministry of Energy and Industry Batyrkul Baetov, informed that up to 2025, the Government will take measures to improve the indicator on use of solar, wind and hydro power, as well as to promote biogas industry.

As the impact and aspects of biogas technologies are relevant to a variety of governmental authorities (for example, agriculture, environment, energy sector, economy), it is necessary to identify and include all responsible government authorities, as well as the civil sector in the process of distribution of information about biogas technologies and enhancing their status.

Promotion of biogas technology must occur in parallel to construction and introduction of biogas plants. Without awareness of the population in Kyrgyzstan of feasibility of biogas technologies introduction, benefits and limitations of their application, it is impossible to introduce biogas technologies at the level of farmers. However, awareness in the Government of the country is also necessary.

According to Fluid Public Fund, in order to ensure widespread dissemination of biogas technologies having positive impact on the state economy, the government can provide the following support:



  • to adopt the state program on introduction of biogas technologies.

  • to create or modify existing structural conditions in order to attract farmers and peasants to the process of building biogas plants. For example, the adoption of legislation on recycling and waste management, control over consumption of wood and forest clearing.

  • to subsidize the construction of private or community-based biogas plants through grants or cheap loans.

  • allocate funds for construction and operation of biogas plants on the basis of public, state and municipal enterprises.



3. Potential places for development of project for renewable energy sources use in rural and remote districts.

In conditions of the Kirghiz Republic as it was mentioned above, decentralized agricultural areas located in separate mountain and foothill areas, cattle-breeding complexes, individual part-time farms, therapeutic establishments, rest houses and children’s camps shall be considered as the most perspective areas for RES use.

Priority sites for NRES use are as follows:


  • zones of decentralized power supply where because of low population density the construction of traditional power plants and high-voltage power transmission lines is economically unprofitable or is impracticable;

  • zones of centralized power supply where because of unsatisfactory condition of power supply systems or deficiency of capacity or energy there are frequent outages, it results in significant economic damage and negative social consequences;

  • settlements and places of mass rest of the population, where complex ecological conditions are created due to harmful emissions of industrial and city boiler-houses, operating on organic fuel, to the atmosphere;

  • settlements and places of temporal stay of people where there is a problem of heating, power supply and hot water supply to individual houses, sites of seasonal work and rest, cabbage-patches, individual habitation and temporary structures.

Potential sites for development of primary projects for use of renewable energy sources in the rural and remote areas are as follows:

  1. Construction of 4 small HPPs:

  • Sokulukskiy HPP-5-1.5 MW (Chui region, Sokuluk river);

  • Oi-Alma HPP-7.7 MW (Osh region, Kara-Kuldzha river);

  • Ortho-Tokojskiy HPP-20 MW (Issyk-Kul region, Orto-Tokoiskiy water storage reservoir);

  • Tortgulskiy HPP-3 MW (Batken region, Tortgulskiy water storage reservoir).

2. The most perspective small HPP:

а) Issyk-Kul region:



  • Chon-Aksu (Chon-Aksu river) – capacity of 10 MW;

  • Akbulun HPP No 1 and 2 (Turgenaksu river) – 1,200 and 1,350 kW; Darkhan (Dzhuuku river) – 3,200 kW;

  • Kuiliuskiy (Kuiliu river) – 1,910 kW;

  • Turasu (Turasu river) – 500 kW.

б) Naryn region:

  • Kochkor (Chu river) – 5,650 kW;

  • Zhumgal (Zhumgal river) – 1,650 kW;

  • Minkushskie (3 HPPs) (Minkush river) – 2,300 kW;

  • Bashkaindy (Atbashy river) – 3,200 kW;

  • Iirisu (Malyi Naryn river) – 3,400 kW;

  • Toguzbulak (Kurtka river) – 1,300 kW.

в) Jalal-Abad region:

  • Syny (Karasu-pravaya river) – 4,400 kW;

  • Mogol (Tentisksai river) – 4,680 kW;

  • Dzhangi-Dzhol (Chichkan river) – 3,500 kW;

  • Bala-Chichkan (Chichkan river) – 4,800 kW;

  • Sary-Bulak (Kugart river) – 2,000 kW.

г) Osh region (including Batken region):

  • Daraut-Kurgan (Kyzylsu river) – 2,000 kW;

  • Karatash (Tar river) – 3,000 kW, Oialma (Karakuldzha river) – 4,800 kW, Salamalik (Iassy river) – 3,000 kW;

  • Arpatekti (Kurshab river) – 2,000 kW;

  • Austan (Isfairamsai river) – 3,000 kW.

д) Chui region:

  • Alamedinskiy HPP No. 1, 2 and 3 (Alamedin river) – 3,200 kW;

  • Alaarchinskiy HPP No. 1 and 2 (Ala-Archa river) – 2,200 kW;

  • Dzhardy-Su (Aksu river) – 2,400 kW.

3. Use of renewable energy sources for power supply:

  • to Kyzyl-Beyit and Kyrgultu villages of Ak-syiskiy district, Jalal-Abad region;

  • to Ken-Suu village of Jumgalskiy district, Naryn region;

  • Jaz-Kechiuu village of Bazar-Korgonskiy district, Jalal-Abad region.

Appendices are provided with 4 project proposals for development and putting into operation of: biogas plant (Appendix 1), micro-HPP (Appendix 2), photovoltaic station (Appendix 3) and small HPP (Appendix 4).

4. Recommendations for introduction of the most sustainable mechanisms of renewable power technologies use in the remote districts with autonomous and network access to power supply.

With a view of increase of efficiency of power supply to the rural and remote districts and for introduction of advanced technologies in the sphere of renewable energy sources in the republic it is necessary:



  1. To provide widespread use of the units using solar power for heating of water and for heating of buildings as simple, cheap power generation systems for remote rural areas of the republic and to adjust their manufacture as such units are not manufactured in the republic.

  2. To expand preferential and long-term crediting of renewable energy sources for the consumers of rural and remote districts.

  3. To expand educational work among the population for distribution of information about advanced technologies in the sphere of RES. To organize practical trainings with demonstration of the equipment for promotion of RES use.

  4. To organize training of local specialists capable to provide design, construction and operation of simple in design micro-HPP, solar power and biogas plants.

  5. To continue development of the international cooperation in the sphere of using RES and alternative energy sources.

Power efficient decisions for sustainable economic development assist in implementation of the Program on financing of sustainable power in Kyrgyzstan (KyrSEFF). Solemn ceremony was held on April 25, 2013, it was devoted to launching of credit line in the amount of USD 20 million provided by the European Bank for Reconstruction and Development for support of improvements in the sphere of power saving in the dwelling houses and private enterprises of Kyrgyzstan. These credits are accompanied by the grants provided by the Investment Facility of the European Union for Central Asia (IFCA). The general volume of financing allocated for rendering technical assistance and grants, offered alongside with KyrSEFF credit line, makes EUR 6.8 million.

Kyrgyz and Japanese Center for Human Development contributes to development of private sector in the Kyrgyz Republic as well. Businessmen receive up-to-date information and practical skills in conducting entrepreneurial business in the course of business trainings and during traineeship in Japan.




References

1. Medium-term program for development of the Kyrgyz Republic for 2012-2014 was approved by the Resolution of the Government of the Kyrgyz Republic № 239 dated April 12, 2012.

2. On medium-term strategy of power sector development in the Kyrgyz Republic for 2012-2017. RESOLUTION OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC N 330 dated May 28, 2012.

3. NATIONAL STRATEGY OF THE KYRGYZ REPUBLIC “Complex development of villages up to 2010” approved by the Decree of the President of the Kyrgyz Republic № 210 dated June 23, 2004.

4. Law of the Kyrgyz Republic “On power sector” was adopted by the legislative meeting of Jogorku Kenesh of the Kyrgyz Republic on January 23, 1997 (version №85 dated May 16, 2008).

5. Law of the Kyrgyz Republic “On local self-government” was adopted by Jogorku Kenesh of the Kyrgyz Republic on June 16, 2011.

6. NATIONAL STRATEGY of sustainable development of the Kyrgyz Republic for 2013-2017. It was approved by the Decree of the President of the Kyrgyz Republic № 11 on January 21, 2013.

7. Law of the Kyrgyz Republic “On power sector” was adopted by the legislative meeting of Jogorku Kenesh of the Kyrgyz Republic on October 17, 1996 (version of the KR laws № 85 dated May 16, 2008, version of the KR laws № 93 dated May 23, 2008).

8. Law of the Kyrgyz Republic “On power supply” Bishkek city, dated July 7, 1998, was adopted by the legislative meeting of Jogorku Kenesh of the Kyrgyz Republic on June 12, 1998.

9. Law of the Kyrgyz Republic “On renewable energy sources” N 283 dated December 31, 2008.

10. National power generation and supply program of the Kyrgyz Republic for 2008-2010 and the strategy of fuel and power complex development up to 2025 (Resolution of Jogorku Kenesh of the Kyrgyz Republic N 346-IV dated April 24, 2008).

11. B.M. Kasymova, B.I. Bayetov Power generation and supply strategy of Kirgizia today and tomorrow // World power sector, 2007. – №9 (45). – P. 62– 64. – №10 (46). – P. 76–72.

12. National report on development of technologies in the sphere of energy efficiency and renewable energy sources in the Kyrgyz Republic. UNECE “Analysis of development and distribution of advanced technologies in the sphere of energy efficiency and renewable energy sources within the framework of the project “Global energy efficiency 21.”

13. A.G. Vedenev Manual on biogas technologies. – B. Publishing house: DEMI, 2011.



14. A.G. Vedenev, T.A. Vedeneva, Fluid Publc Fund Biogas technologies in the Kyrgyz Republic. — B. Printing house “Evro”, 2006. — 90p.

15. A.G. Vedenev, A.N. Maslov Construction of biogas plants Brief manual. Bishkek: “Evro”, 2006, 28 p.



Appendix 1

Project proposal “Biogas plant” for the farm located near Kant town, Chui region


Biogas plant shall be mounted on the territory of commercial dairy farm.

There are 500 cows in the farm. Dung is washed out from the cowsheds to the dung pit, where it rots through, thereafter by means of wheel transport it is taken out to the fields.

Milk processing plant operates on the territory of the farm; it is serviced by the boiler running on diesel fuel. The settlement is located near the farm.

Only 7-8% of sown areas of all croplands are fertilized during the last 10 years with due to lack of funds for purchase of mineral fertilizers, crop yields therefore systematically decrease and the poverty rate of rural population can only increase. The situation is not expected to improve in the short-run perspective, unless the inhabitants of villages organize production of liquid organic fertilizers in biogas plants from their own resources by their own efforts.

In the republic, more than 50% of farmland is occupied by pastures, so the livestock farming is the main sector in agriculture. Meanwhile, within a year, 2.5 -3.5 million tons of wastes are accumulated in the republic, which decompose in the open air and emit up to one billion cubic meters of methane and carbon dioxide, which are officially listed as gases polluting the atmosphere.

Animal wastes runoff into creeks and ditches, contaminate surface and ground waters.

100 thousand cubic meters of ozone-depleting gases are emitted out of dung and 30 thousand cubic meters of gases as a result of oil combustion in a boiler room at the farm every year. 2.5-3 thousand tons of dung are transported from the farm every year and they are used as fertilizers in the fields.

Scattering it through the fields contributes to spreading of weed seeds and spread of zone for possible human and animal infection.

Biogas plants, processing fresh cow dung, allow eliminate storage it in the dung pits. Thus the effectiveness of the dung as fertilizer increases ten times, thereby providing all fields with organic fertilizers. The methane gas produced in bioreactors, is used as ecologically clean fuel in the boiler room.

Project manager - A. Dzh. Obozov


Appendix 2

Project proposal: Micro-HPPs for rural population of Kyrgyzstan



Duration of the project: 18 months

Total budget of the project: EUR 140,000

Project rationale:

Living conditions in Kyrgyzstan, which is primarily covered by mountains, have worsened since its independence, especially in rural areas. Today households must pay for energy use, and these costs are a significant part of their budgets, but insufficient supply and lack of money has transformed all this into a continuous ongoing struggle. In many mountainous regions population density is less than 1 person per square kilometer. Here power supply systems are weak. There are a large number of small scattered consumers of electricity in the mountainous part of the country. For most of them it is vitally important to use alternative sources of energy to provide their homes and farms with electricity and heating. Often, these consumers are located beyond the central power supply zone and at a considerable distance from the power grid. Application of micro-HPPs is an effective and profitable solution to provide power to small and dispersed consumers. Efficient use of local energy resources and reduction of harmful effects on the environment is one of the important tasks of power supply to remote rural areas and mountain regions.



Objective of the project:

Support of pilot villages in Kyrgyzstan by creating a framework for promotion, training, distribution and exchange of experiences in use of micro-HPPs to improve the living conditions of the people and conservation of the natural resources of the people living in the mountain regions of Kyrgyzstan.



Types of activities:

  1. Basic study of micro-HPPs for rural areas.

  2. Design and creation of the experimental groups.

  3. Elaboration of manuals, booklets and posters describing the use of micro-HPPs.

  4. Development of training and promotion program.

  5. Training of local specialists, students, engineers, members of NGOs, etc.

  6. Implementation of the program of practical training in the villages.

  7. Shooting educational films “Micro-HPPs for rural areas”.

  8. Informative campaign - a dialogue and exchange of experience.

  9. Monitoring of project implementation and evaluation of project impact.

  10. Presentation of the project results to the partners, stakeholders, organizations and the public.

Beneficiaries:

Villagers, craftsmen, experts in the field of using renewable energy sources, representatives and/or responsible experts from the administrations of districts and regions, relevant ministries and other governmental and non-governmental organizations.


Project initiator A. Dzh. Obozov

Appendix 3

3. Name of the project: Autonomous photovoltaic stations for rural districts of Kyrgyzstan.


Duration of the project: 18 months.

Budget of the project: EUR 140,000


Project rationale:



The major part of the population of Kyrgyzstan lives in valleys and foothills of the middle and high mountain regions. More than 70% of the total population of the republic live in the valleys and mountain hollows (up to 1,500 m above the sea level), which cover not more than 15% of the territory of the republic. Valley part of the territory is provided with developed power supply system of Kyrgyzstan. The density of population in mountain areas is not less than 1 inhabitant/km2. Here power supply systems are poorly developed. In the mountainous part of the country there are a lot of small scattered consumers of electrical energy, most of them have a vital need for alternative sources of energy for power supply to their households and heating thereof. Often, these customers are located beyond the zones of central power supply systems, and far removed from them. Weak energy base in rural areas of Kyrgyzstan with multiple dispersed small energy consumers, slows down development and improvement of living conditions of the local population. Methods of centralized power supply, which are currently widely used, are not capable to provide power to the majority of private facilities in rural areas. The effective and feasible solution for supply of power to such small dispersed consumers is the use of photovoltaic converters (PVC). Use PVC gives a considerable economic effect. The need is great, and the conditions of use are extremely diverse. Therefore, the extensive use of technological and easy-to-use PVC will settle both power supply, and social issues, the results is creation of more comfortable conditions of work and life for thousands of breeders, geologists, meteorologists and people of other professions, living in isolated and remote areas.

Use of PVC in the current socio-economic situation is the most attractive. The following issues will be settled for remote consumers: independence from centralized power supply; creation of new jobs; primary energy sources saving; formation of sedentary lifestyles in the mountain regions; reducing migration of rural population to the cities; environmental protection.

Objective of the project:



Support of pilot villages in Kyrgyzstan through creation of a platform for the promotion, dissemination and exchange of experiences in use of PVC to improve the living conditions of the local population and conserve natural resources in the mountainous rural areas of Kyrgyzstan.
Major events:

  1. Basic research;

  2. Creation of an experimental samples of PVC;

  3. Design and issue of manuals, leaflets, posters and other information materials;

  4. Development of training and informative modules and programs;

  5. Training of professionals, students, engineers on design, installation and maintenance of PVC on site;

  6. Carrying out of practical trainings in pilot villages;

  7. Shooting of training and informative films about PVC;

  8. Informative campaign - a dialogue and exchange of experience;

  9. Monitoring of activities and evaluation of the project impact;

  10. Presentation of the project results to the partners and stakeholders;

Target group, beneficiaries:



Villagers, masters, experts in RES, representatives of aiyl-okmotu (village council) and district administrations, representatives of ministries and departments, representatives of NGOs and the public sector.
Project manager - A. Dzh. Obozov

Appendix 4

4. Proposal on construction of small HPP “Kurkureu” in Karabuurinskiy district, Talas region of the Kyrgyz Republic



Objectives of the project: improving the system of power supply to the consumers of Karabuurinskiy district through construction of small HPP “Kurkureu” with installed capacity of 4.8 MW on the Kurkureu-Suu river upstream from Kok-Sai village.
Technical-economic indices of the object:

а) construction of HPP - design and survey works, waterworks, diversion channel, integration and procurement of equipment and materials, installation and commissioning of 6 units with the total capacity of 4.8 MW (with installed capacity of 6 × 800 kW), annual average generation of electricity is 35 million kWh; expenses for these works make USD 4.0 million (amount is approximate);

б) construction duration is 16 months;

в) payback period of expenses for HPP with capacity of 4.8 MW with average tariff for electric energy for the whole period of operation - 2.5 US cents for 1 kWh is 8 years, if the price for electricity is 3.5 US cents per 1 kWh, payback period is 5 years.


Financial plan:

А) payback period of expenses for HPP with capacity of 4.8 MW and average annual electricity generation of 35 million kWh (electricity production calculation:



  • duration of station operation during the year – 24 hours x 360 days = 8,640 hours;

  • electricity generation – 4,800 kW x 8,640 hours × 0.85 = 35,000,000 kWh) with average price for electricity - 2.5 US cents per 1 kWh (taking into account payment for consumed capacity) will be 8 years:

1) use of electricity for a year-35,000,000 kWh x USD 0.025 per 1 kWh = USD 750,000 for 1 year;

2) sale of electricity for 8 years - USD 750,000 x 8 years = USD 6,000,000.

Calculation of invested funds repayment is fulfilled provided that investments in the amount of USD 4 million are attracted for the period of not less than 8 years.

Б) payback period of expenses for HPP with capacity of 4.8 MW and average annual electricity generation of 35 million kWh (calculation of electricity generation: duration of station operation during the year – 24 hours x 360 days = 8,640 hours; electricity generation – 4,800 kW x 8,640 hours × 0.85 = 35,000,000 kWh) with average price for electricity - 3.5 US cents per 1 kWh (taking into account payment for consumed capacity) will be 5 years:


1) use of electricity for a year-35,000,000 kWh x USD 0.035 per 1 kWh = USD 1,225,000 for 1 year;

2) use of electricity for 5 years - USD 1,225,000 x 5 years = USD 6,125,000.



Calculation of invested funds repayment is fulfilled provided that investments in the amount of USD 4 million are attracted for the period of not less than 5 years.
Project manager Sh. Mavlianbekov


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