Pilot cases on standardized Baseline Pil t t d di d B li - PDF document

Pilot cases on standardized Baseline Pil t t d di d B li Biomass Gasification in Cambodia Akiko Fukui Market Mechanism Group Institute for Global Environmental Strategies i f l b l i l i

Low electricity access rate High carbon intensity energy source Electrification rate in Cambodia: 24% (IEA) 80.5% of population live in rural area, 80.5% of population live in rural area, Most of industrial plants Most of industrial plants where electrification rate is much lower including rice millers Coal Hydropower have an in ‐ house have an in house 2% 4% Wood, generation system using other bio mass mass diesel diesel 1% Diesel/HFO 93% Electricity source in grid system Source: Electricity Authority of Cambodia Potential of rice husk utilization as biomass fuel bi f l  Gasification with rice husk reduces 60-75% of diesel consumption  6 kg of rice husk is equivalent to 1L of diesel  6 k f i h k i i l 1L f di l  Some portion of rice husk is used as fuel for heating, other is decayed.  Government promotes to increase milled rice for export. 9 Component of rice consumption Rice production Million tone 8 Million tone Seed and Post ‐ harvest loss harvest loss 7 0.95 13% 6 Surplus Official ( (expecting for p g 5 5 exported rice Domestic export) consumption 3.32 4 0.02Mt 3.14 45% 3 42% 20002001200220032004200520062007200820092010 Source: Ministry of Agriculture, Floristries and Fishery Source: The Supreme National Economic Council

Steps for establishing standardized baseline Step 1: Identify host countries, sectors, outputs and measures Host Country: Cambodia (Potential level of aggregation: countries in same conditions) (Potential level of aggregation: countries in same conditions) Sector: Rice milling factory (garment factory, and ice factory, etc.) Measure: Switch of technology with change of energy source Measure: Switch of technology with change of energy source Technology : Generating power by gasification of biomass Technology : Generating power by gasification of biomass (e.g. rice husk) replaced with diesel 5 Step 2 Establish additionality criteria for the identified measures Step 3: Identify the baseline for the measures Power source in rice milling factory (Assumption) Power source in rice milling factory (Assumption) Rice millers in Cambodia : about 27,000 Rice millers applying gasification with rice husk: 48 Ri ill l i ifi ti ith i h k 48 Sauce: Ministry of Environment of Cambodia, NEDO and SME renewable energy Ltd. T5 T1 T2 T3 T4 Other Other Source of Power Supply from Captive plant with Supply from Gasification renewable mini-grid diesel Phnom penh grid with biomass energy CO 2 emission factors f t 0.8 x 0.66 y 0 (t-CO2/MWh) % of rice milled A % B% C% D% E% 0% 100% Baseline Level Additional Level

Additionality demonstration No regulation mandating use of the activities mandating use of the activities Technology barrier Financial barrier Lack of experts & Lack of experts & Large initial equipment cost i i i l i service providers Common practice Low prevailing rate of the technology Exemption from demonstrating additionality  Projects up to 5 MW that employ renewable energy technology  Projects up to 5 MW that employ renewable energy technology  the geographic location of the project in one of LDCs/SIDs Step 4: Determine the baseline emission factor Emission Baseline Project Leakage - = - Reductions Emissions Emissions 0 t-CO2 0 t-CO2 EF EG,y EF EG y EG BL EG BL, y X X BE y BE = O ti Option 1. 1 Quantity of net electricity displaced EF FC,y FC BL, y X BE y = Option 2. Quantity of diesel consumption for diplaced electricity generation EF mr,y X MR y BE y = Option 3. Q Quantity of milled rice production i f ill d i d i

Benefit  Standardized baseline can be applied for other type of small scale factories (e.g. garment, ice making, etc) as well as in other country having similar conditions Issues  How much accurate data is required? q • Survey is based on hearing plant owners who are SME and don’t have their record are SME and don t have their record. • How many sample is required to determine baseline / additional level baseline / additional level 9