Irfan Yousuf, Director (CDM) Alternative Energy Development Board

Wind: 2,500 MW in pipeline and abundant potential for development

Solar: Extremely rich in solar resources

Hydro

Small 3,000 MW (Approx.)

Bagasse Cogeneration: 2,000 MW (Approx.)

Waste to Energy: 1,000 MW (Approx.)

Geothermal Studies underway

Alternative Fuels Potential being determined

• Initial macro level resource maps for wind and solar developed by NREL (USA).

• Resource mapping and spatial planning of solar , wind and biomass energy resources has been initiated with the support of the World Bank and ESMAP’s Renewable Energy Resource Mapping Initiative.

Generation of wastes is increasing due to: – growing urbanisation & – changes in life style

Solid Waste Production in Pakistan ~1.6 billion metric tons per year / ranges between 0.283 to 0.612 kg/capita/day; growth rate 2.4% per year.

A lot of money is used managing this waste – Asian countries spent ~US$25 billion per year in early 1990s – expected to rise to ~US$50 billion by 2025

Threat to our already degraded environment

Advances in biotechnology, genetics, chemistry & engineering – new manufacturing concepts – converting waste materials to valuable fuels & biomaterials

Large amount of waste materials produced from various sectors of Pakistan

– industrial sectors – agricultural sectors

These materials are a source of: – environmental pollution – water pollution – different diseases

These materials are: – rich in various elements including carbon & nitrogen – can be used as substrate for microbial growth – production of useful metabolic products

Thus, these waste materials can be a good source for production of bioenergy & biomaterials

– their use can address several societal needs – will lead to a new manufacturing paradigm

Three general categories of solid waste in Pakistan: – biodegradable e.g. food & animal wastes, leaves, grass & wood

– non-biodegradable e.g., plastic, rubber, textile waste, metals, stones

– recyclable material e.g., paper, card board, and bones

Figure. Physical composition of solid wastes in Pakistan (% Weight).

Waste Materials

Wood Processing Industry

Hotels & Restaurants

Beverage Industry

Food Industry

Meat Industry

Leather Industry

Sugar Mills

Household Agriculture

Units

Figure. Various sources of waste materials from Pakistan.

Generation of Municipal Solid Waste

Waste is Collected by

Municipalities

Waste disposed in unmanaged

dumpsite Creation of Public and Environmental Health Nuisance Water pollution Spread of disease Greenhouse Gas

Emission Odor Nuisance Air pollution from

burning garbage

Only 60% of the SW is collected by the Municipalities, remaining is dumped into drains, rivers and open spaces

Waste Materials

Bioethanol

Biogas

Biofertilizer

Enzymes

Antibiotics

Biologically active

compounds

Bacterial cellulose

Bacterial Polysacch

arides

Figure. Various products that can be produced from waste materials from Pakistan.

More than 50,000 metric tons of municipal solid wastes produced every day in Pakistan, which can be converted to electricity.

The local sugar industry can produce 300 MW of renewable energy by using molasses to make biogas for generation plants, and can be replaced with Refuse Derived Fuel (RDF).

In cement industry, costly imported coal can be replaced with Refuse Derived Fuel.

Thousands of tons of cow dung in major villages can produce gas or generate electricity.

Undertaking these initiatives can facilitate in mitigating GHG emissions from BM/W2E Sector

On UNFCCC Agenda since negotiations in Bali 2007 ◦ Objective: Scale up mitigation activities

Key Elements ◦ Developing countries undertake mitigation actions Country Ownership Voluntary actions Embedded in National Sustainable Development Priorities

◦ Wide Range of activities: Investments, Policies, Capacity Building

◦ Accountability – Monitoring, Reporting and Verification Copenhagen Accord pledges name different activities of

development countries as NAMAs

11

12

Nat. emission

intensity targets

Supported NAMA

National emission targets

NAMA Typologies

credited NAMA

Unilateral NAMAs

NAMA Oppurtunity Areas for Pakistan

Sectoral / national NAMA

Policies and actions

Benefits of undertaking NAMAs NAMAs: contribute to national sustainable economic & human

development goals & poverty reduction efforts can help addressing barriers in developing AREs can be used to access the Green Climate Fund and other

financial sources (domestic, bilateral, private) attract foreign direct investment into key sectors provide incentives for home-grown technology

innovation, deployment & transfer promote local economic development, contribute to

energy security, & enhance industrial efficiency

Harnessing Municipal Waste of big Cities of Pakistan to Generate Electricity

◦ Managing Efficient disposal of municipal waste thereby improving & conserving environmental and ecological conditions

◦ Converting waste to energy to generate large capacity of electricity

◦ Contributing towards improving electricity supply – demand situation

◦ Strengthening grid by generating electricity near load centers

◦ Making cities self sufficient in meeting electricity needs of their residents

◦ Reducing emission of greenhouse gases of approximately 2 million tCO2 annually

◦ Contribution towards improved and sustainable economy by providing relatively cheaper electricity

Economic/financial barriers: ◦ Relative Expensive ARE equipment. ◦ Financing ARE equipment/projects ◦ Large investment for planning and designing power evacuation

system. ◦ Cost of extending / strengthening National Grid for power off-take

Hidden costs: ◦ Import of required Expertise and Skills for developing AREs ◦ Lack of technology know-how. ◦ Lack of Industrial Manufacturing Support

Market failures: ◦ Nascent ARE market ◦ Best Practices are Evolving ◦ Market Research & Development is Meagre

Behavioural and organizational barriers: ◦ Lack of Expertise and Knowledge of the technology in electricity

transmission & distribution companies. ◦ Slow Planning, Development and Processing ◦ Undue Risk Perceptions ◦ Lesser human resource capacity and strength

Information barriers: ◦ Lack of Awareness regarding latest technologies, techniques

and trends ◦ No or less Access to Literature related to Best Industrial

Solutions and Practices

Political and structural barriers: ◦ Lesser support from government departments

Insufficient Grid Capacity and Coverage

Absence of Long Term Planning

Lack of Experience amongst decision makers

Insufficient Grid Capacity and Coverage

The policy and regulatory regime currently exist in the country includes: ◦ Section 11 of the Pakistan Environmental Project action prohibits discharge of

waste in an amount or concentration that violates National Environmental Quality Standards.

◦ Draft Hazardous Substance Rules of 1999.

◦ Islamabad Capital Territory Bye Laws, 1968 by Capital Development Authority

◦ Section 132 of the Cantonment Act 1924 deals with Deposits and disposal of rubbish etc.

◦ Provisions contained in the Local Government Ordinance.

◦ Waste Management Strategy 2005.

There is a dire need to develop and established a comprehensive regulatory and legislative regime to regulate municipal solid waste disposal systems.

The overarching objectives of the NAMA proposal are: ◦ Developing policy and regulatory regime for development and promotion of WTE projects in

the country

◦ Managing Efficient disposal of municipal waste thereby improving & conserving environmental and ecological conditions

◦ Converting waste to energy to generate large capacity of electricity to the tune of 2,000 MW.

◦ Contributing towards improving electricity supply – demand situation

◦ Strengthening grid by generating electricity near load centers

◦ Making cities self-sufficient in meeting electricity needs of their residents

◦ Reducing emission of greenhouse gases of approximately 2 million tCO2 annually

◦ Contribution towards improved and sustainable economy by providing relatively cheaper electricity

◦ Awareness raising among general masses to adopt best practices for disposal of household waste

◦ Capacity Building of stakeholders in the public and private sector regarding WTE concepts.

The NAMA for Waste to Energy Can Deliver any or all of the following: ◦ Basic Recycling Rules ◦ Waste Management Rules ◦ E-Waste management Rules ◦ Development of Environmental Performance Indicators ◦ Eco-Labeling Guidelines and its promotion ◦ Adoption of Life Cycle Assessment Approaches ◦ Guidelines for Environmentally Sound Collection and Disposal ◦ Guidelines for Model Landfill Sites ◦ Regulations & Guidelines for Establishing Waste to Energy Power

Plants

Proposed NAMA Partners ◦ CDM Cell, Climate Change Division, Coordinating body during the

NAMA development and implementation

◦ AEDB, Ministry of Water & Power, Executing and implementing department of NAMA activities

◦ CDA, Cabinet Division, Implementing partner, managing waste disposal in Islamabad

◦ LWMC, Government of Punjab, Implementing partner, managing waste disposal in Lahore

Other Partnering Institutes ◦ Centre for Clean Air Policy, USA – support in NAMA development

◦ UN-ESCAP – support in NAMA development, marketing and financing

Activity Expected outputs Time frame

for completion

Outcomes

Develop NAMA Implementation Plan

A detailed implementation plan for NAMA will be developed

2014-15

The Implementing Agency would be able to have a NAMA detailed implementation plan that would be marketed.

Develop Policy framework and instruments, implementing rules and regulations, financial instruments and guidelines

The Policy Framework, rules, regulations and instruments will be in place for the promotion and development of waste to energy sector

2014-17

A strong footing will be established for waste management and deploying waste to generate electricity to the tune of 2,000 MW all over Pakistan

Capacity building of the Stakeholders

The manpower of the stakeholders at national and provincial level will be trained.

2014-17

The national and provincial level stakeholders will have a trained manpower to operate and maintain the system as per international standards and practices.

Create a Revolving Fund to Promote Solid Waste management Projects

Funding options will be available to undertake solid waste management projects and adopt effective SWM techniques.

2016-18

State-of-the-art waste management techniques will be promoted all over the country.

Potential for transformational change

Disposal

Other Recovery

Recycling

Preparing for re-use

Prevention

Benefits of Proposed NAMA ◦ Regulatory Regime will be established that will facilitate in harnessing

W2E for power generation

◦ Capacity Building of the Stakeholders will be carried out

◦ Awareness raising among general public will be done

◦ A fund will be established to finance the W2E initiatives

Related Long Term Benefits ◦ Effective Waste Management – Productive Use

◦ Mitigating GHGs and conserving Environment

◦ Improving Environmental and health Conditions

◦ Reducing Social Costs and social uplift

◦ Economic Development

Activity Total cost Million Euros

3rd party financing

Million Euros

Requested NAMA financing

Million Euros Develop NAMA Implementation Plan 2.00 - 2.00 Develop Policy framework and instruments, implementing rules and regulations, financial instruments and guidelines

6.00 - 6.00

Capacity building of the Stakeholders 2.00 - 2.00

Create a Revolving Loan Fund to Promote Solid Waste management Projects

10.00 - 10.00

Total 20.00 0.00 20.00

Proposed Financing Structure

2014 € 1,600,000/- 2015 € 2,400,000/- 2016 € 3,300,000/- 2017 € 7,700,000/- 2018 € 5,000,000/-

Subtotal € 20,000,000/- * The NAMA proposal cost could vary based upon the conditions prevailing in the waste-to-energy sector at the time of approval of NAMA. Detailed financial cost of the proposal components would be finalized during development of the detailed NAMA proposal later.

NAMA Funding Release Time Schedule

Supporting Mechanisms for Promoting Distributed Generation (Net Metering, Wheeling, Banking etc.) in Pakistan to put 3 GW Alternative and Renewable Energy (ARE) Projects in next 10 years.

◦ Development of Legislative document, SoPs, Policy Guidelines for Distributed Generation options.

◦ Taking step towards establishing financing mechanism for Distributed Generation options.

◦ Relevant quarters will be attracted through workshops, seminars and B2B meetings in this regard.

◦ Reducing emissions app. 2.4 million tCO2 annually in the longer run.

◦ Contribution towards improved and sustainable economy by providing relatively cheaper electricity

Strategizing for Grid Strengthening / Improvement for evacuation of power from Wind Power Projects ◦ Develop a strategy document for evacuation of 3200 MW wind

power in 5-8 years

◦ Establish strong industrial footage for wind power development

◦ Build infrastructure to reduce emission of app. 5.2 million tCO2 annually

◦ Contribution towards improved and sustainable economy by providing relatively cheaper electricity

Strategizing for Grid Strengthening / Improvement for evacuation of power from Solar Power Projects in Cholistan ◦ Develop a strategy document for evacuation of 1500 MW solar

power in 5-8 years

◦ Establish strong industrial footage for wind power development

◦ Build infrastructure to reduce emission of app. 1.26 million tCO2 annually

◦ Contribution towards improved and sustainable economy by providing relatively cheaper electricity

Irfan Yousuf, Director (CDM) irfanyousuf@aedb.org

+92-51-9241288, 9222360 2nd Floor, OPF Building, G-5/2, Islamabad, www.aedb.org