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Sustainable Rural Biomass Energy Project Document.Pdf TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................III LIST OF TABLES ...................................................................................................................... V LIST OF FIGURES ................................................................................................................... VI LIST OF ANNEXES ................................................................................................................. VII ABBREVIATIONS AND ACRONYMS .................................................................................... VIII EXECUTIVE SUMMARY ........................................................................................................... 1 I. SITUATION ANALYSIS ....................................................................................................... 7 1.1 Energy Situation in Bhutan ......................................................................................... 7 1.1.1 Energy supply situation .................................................................................................. 7 1.1.2 Energy consumption situation ........................................................................................ 8 1.1.3 Energy demand projections ............................................................................................ 9 1.1.4 Biomass supply potential ................................................................................................ 9 1.2 Situation Analysis of the Use of Cooking Stoves in Bhutan .......................................11 1.3 Survey of Industries Producing and Using Fuel Wood ...............................................14 1.3.1 Sawmilling industry ....................................................................................................... 15 1.3.2 Cardamom industry ...................................................................................................... 16 1.3.3 Lemon grass oil industry............................................................................................... 16 1.4 Problem Analysis .......................................................................................................17 1.5 Baseline Scenario .....................................................................................................20 1.6 Alternative Scenario ..................................................................................................22 1.7 Rationale for GEF Financing .....................................................................................24 1.8 Stakeholder Analysis .................................................................................................25 II. STRATEGY .......................................................................................................................30 2.1 Project Rationale and Policy Conformity ....................................................................30 2.2 Country Ownership: Country Eligibility and Country Drivenness ...............................30 2.3 Design Principles and Strategic Considerations ........................................................30 2.3.1 Description of components ........................................................................................... 33 2.3.2 Promoting transition to market mechanisms ................................................................ 34 2.4 Project Objective, Outcomes, Outputs and Activities .................................................46 2.4.1 Objective, outcomes and outputs ................................................................................. 46 2.4.2 Project activities ............................................................................................................ 47 2.5 Key indicators, risks and assumptions .......................................................................60 2.6 Financial modality ......................................................................................................63 2.7 Cost Effectiveness .....................................................................................................71 2.8 Sustainability .............................................................................................................72 2.9 Replicability ...............................................................................................................73 2.10 Global environmental benefits .................................................................................73 2.10.1 GHG emission mitigation from stoves ........................................................................ 74 2.10.2 GHG emission mitigation from gasifier and briquetting plants ................................... 77 2.10.3 GHG emission mitigation from other sources ............................................................ 79 2.11 Cross-cutting issues ................................................................................................79 2.11.1 Gender issues ............................................................................................................ 79 2.11.2 Poverty ....................................................................................................................... 81 2.11.3 Other socio-economic benefits ................................................................................... 81 III. PROJECT RESULTS FRAMEWORK ...............................................................................82 Bhutan Sustainable Rural Biomass Energy (SRBE) Project Page iii Total Budget and Work Plan ..............................................................................................92 Project Implementation Schedule .......................................................................................96 IV. MANAGEMENT ARRANGEMENTS ................................................................................99 V. MONITORING FRAMEWORK AND EVALUATION ........................................................ 103 Bhutan Sustainable Rural Biomass Energy (SRBE) Project Page iv LIST OF TABLES Table 1.1: Energy demand projections by fuel in BAU scenario (2005-2020) ............................. 9 Table 1.2: Biomass energy potential in Bhutan (2005) ............................................................... 9 Table 1.3: Number and percentage of respondents using cook stoves by type and region .......12 Table 1.4: Number and percentage of respondents using heating stoves by type and electrification status ...........................................................................................................13 Table 1.5: Number and percentage of respondents’ owning cooking stoves by type and electrification status ...........................................................................................................14 Table 1.6: Number of sawmills by region and district.................................................................15 Table 1.7: Biomass consumption in the residential sector (2005) ..............................................20 Table 1.8: Biomass consumption in the industrial sector (2005) ................................................21 Table 1.9: Biomass consumption in the commercial & institutional sector (2005) ......................21 Table 1.10: Description of present and proposed stove design by category ..............................23 Table 1.11: Stakeholders and their roles ...................................................................................27 Table 2.1: Targets and prioritization for the dissemination of stoves .........................................35 Table 2.2: Major relevant community-based organizations in Bhutan ........................................37 Table 2.3: Indicative cost of stoves ...........................................................................................39 Table 2.4: Smart subsidy scheme for stoves .............................................................................40 Table 2.5: Target distribution according to phases of implementation .......................................40 Table 2.6: Amount of subsidy according to year and type of stove ............................................41 Table 2.7: Project risks and their mitigation ...............................................................................61 Table 2.8: Incremental cost matrix ............................................................................................64 Table 2.9: Summary of the baseline, incremental and alternative costs ....................................70 Table 2.10: Co-funding/leveraged funding according to Project outcomes ................................70 Table 2.11: Assumptions used in GHG emission mitigation calculation .....................................74 Table 2.12: Summary of fuel wood savings and GHG emission mitigation of stoves .................75 Table 2.13: Project direct GHG emission mitigation of stoves ...................................................75 Table 2.14: Post-Project direct GHG emission mitigation of stoves ...........................................75 Table 2.15: Post-Project indirect GHG emission mitigation of stoves ........................................76 Table 2.16: Assumptions used in GHG emission mitigation calculation of gasifier and briquetting plants ................................................................................................................................77 Table 2.17: Project direct GHG
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