Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues Lessons learned f from experience of i f supporting DNAs supporting DNAs with GEFs calculation Addis Ababa, 20 th April 2012 , p Africa Carbon Forum Akiko Fukui Market Mechanism Group Market Mechanism Group, Institute for Global Environmental Strategies IGES Capacity Building Activities CDM Capacity Building p y g Objective: To facilitate implementation of, and to further improve the CDM Proposal for CDM reform Proposal for CDM reform Started in 2003 and covers 9 countries Publications: “CDM in charts”, “Towards CDM Reform 2011” Database: CDM project, Reviewed/rejected, PoA, Monitoring etc Monitoring, etc Emission reduction calculation sheets Training workshop: Calculation of GEFs, PoA, Standardized baseline, DOE, etc New Market Mechanism (NMM) Capacity Building MRV Capacity Building running in parallel 2
Supporting GEF calculation Country Counterpart Activity Ministry of Environment •Training workshop Cambodia Cambodia •Publication of the Publication of the report Ministry of Natural •Training workshop Vietnam Vi t Resources and •Review of the Environment calculation Department of p •Training workshop g p Philippine Environment and •Review of the Natural Resources calculation ・ Research for data Ministry of Natural Ministry of Natural Research for data Lao PDR Resources and availability Environment Tool and database Tool and database http://www.iges.or.jp/en/cdm/report_grid.html •List of Grid Emission Factor Published GEFs in 9 countries, GEFs in each CDM projects P bli h d GEF i 9 t i GEF i h CDM j t •CDM Grid Emission Factor Calculation Sheet 3 IGES CDM Grid Emission Factor Calculation Sheet (Simple /Average OM Option A grid power plants version) (Simple /Average OM, Option A, grid power plants version) Automation •Identification of low cost /must run resources Identification of low cost /must run resources •Calculation with IPCC’s default values 4 • BM sample group selection
When grid emission factor (GEF) is needed? To determine CO 2 emission factor for the displacement of electricity generated by power plants in an electricity system where a project activity supplies electricity to a grid h j i i li l i i id or a project activity that results in savings of electricity that would have been provided by the grid th t ld h b id d b th id The share of the registered projects with GEF By project type Without 99% Wind Power GEF 98% Hydro Power 22% 22% Waste gas/heat utilization Waste gas/heat utilization 82% 82% 79% Other renewable energies Biomass 73% 70% Methane recovery & … 45% Cement With 45% Fuel switch GEF 44% Biogas 78% 78% SF6 replacement SF6 replacement 40% 40% 0% 25% 50% 75% 100% 5 IGES project database (IGES 2012 Apr) Data collection is hurdle for PPs Required data Simple OM, Weighted average CM Simple OM, Weighted average CM Data from each of power units connected the grid* d h id* •Net Electricity Generation •Type of Fuel •Type of Fuel Diffi Difficult to collect detail data lt t ll t d t il d t •Date of commission If the data of the export •Fuel consumption (if available) p ( ) country is not available, t i t il bl Data vintage: Ex-ante (3years) 0 CO 2 -t/MWh is selected. Electricity imported by country *Unit base data is not required in LDC or a country with less than 10 registered CDM projects (Simplified CM) GEF GEFs are expected to be published by DNA d b bli h d b DNA 6
CERs from RE & EE depends on GEFs Concept of emission reduction in RE project (ACM0002, AMS I.D.) Baseline scenario Baseline scenario GEF GEF CO 2 Electricity CO 2 Emission CO 2 Baseline Emissions = Generation X Factor Emissions ( x MWh) (y t-CO 2 /MWh) CO 2 Thermal Power Thermal Power Thermal Power Thermal Power Thermal Power Thermal Power Thermal Power Thermal Power Electricity Electricity supply to the supply to the Project scenario grid grid CO 2 Emission Electricity Project Factor Generation X Generation = X Emissions E i i ( 0 t-CO 2 /MWh*) ( x MWh) Hydro Power Hydro Power Hydro Power Hydro Power *small volume of GHG is considered depending on a situation CO 2 Emission Reductions = Baseline emissions- Project emissions = xy t-CO 2 /year ⇒ CERs 7 Low GEFs in LDCs Mozambique Lesotho 100% Nepal Paraguay Low Zambia DR Congo Angola Lao PDR Non Costa Rica The share LDC Ethiopia p Colombia Colombia LDC LDC of Malawi Congo Brazil Having project Cameroon using GEF renewable Uganda Having no project Namibia energy using GEF g Madagascar Madagascar Kenya Tanzania Togo Zimbabwe Supposed 50% GEF Gabon Gabon Viet Nam Source: IGES (CDM project database), IEA Sudan (The Electricity Access (The Electricity Access India Database), EIA China (International Energy Indonesia Statistics) Cambodia Saudi Arabia Eritrea Eritrea Hi h High Timor-Leste 0% Yemen Benin South Africa 0% 50% 100% Electrification rate With GEF With GEF calculated under the present tool, renewable l l t d d th t t l bl energy projects for CDM may not promote electrification. 8
Why is the exist power source component of the grid the baseline in low electrification rate areas? grid the baseline in low electrification rate areas? Definition of BM emission factor : Project power plants might be “an emission factor refers to the an emission factor refers to the expected to add the capacity of expected to add the capacity of group of prospective power electricity supply and expand plants whose construction and electrification coverage area, g future operation” not substitute to exiting power But it refers existing power plants plants connected to the grid. in the calculation tool. in the calculation tool. Recommendation Use a default emission Include prospective power plants in GEF(BM) calculation factor under the concept of ・ Government approved Government approved “suppressed demand” “suppressed demand”. ・ Commences in 5 years Use of plant/unit capacity additions instead of Qt. electricity dditi i t d f Qt l t i it generated for BM emission factor 9 Conclusions • GEFs is the most utilized parameter in emission reduction calculation especially in renewable reduction calculation, especially in renewable energy projects. • Data related to electricity generation import is not D t l t d t l t i it ti i t i t easy be collected. =>Need to build a platform to publish GEFs • There are many countries which may have a low y y GEF due to their power sources (high hydro share) =>Revision of the GEF tool is needed for the >Revision of the GEF tool is needed for the countries with high share of renewable energy power generation and low electrification rate power generation and low electrification rate. 10
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