Cape Verde Standardized Baseline for the Power Sector

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1 Cape Verde Standardized Baseline for the Power Sector CDM EB 88 Bonn, Germany, 7 to 11 March 2016 UNFCCC Secretariat SDM programme

2 Procedural background: Cape Verde Standardized Baseline Initial submission 28 November 2013 (PSB0007) Four updates in response to issues raised Steps undertaken: Assessment by secretariat Draft recommendation by secretariat and two members of SSC WG Further inputs by the DNA in response to recommendation Draft Standardized Baseline (DSB) by secretariat and SSC WG members submitted to the Board on 10 December 2015 An objection to automatic approval was raised by a Board member Therefore DSB is on the agenda of EB 88 2

3 Cape Verde archipelago is a small island country approximately 570 kilometres off the coast of West Africa Is a cluster of ten islands (nine inhabited) with a population of about 0.5 million inhabitants The purpose is to propose a standardized baseline applicable to the independent grids of nine inhabited islands of Cape Verde 3

4 Map source: 4

5 Power plants: Island Power plants Total installed capacity (MW) Technology Santiago DGs, 1 wind, 1 solar Vicente DGs, 2 winds Sal DG, 2 winds, 1 solar Boa Vista Antão DG, 1 wind, DGs, 1 wind Fogo DGs Nicolau DG Maio DG Brava DG 5

6 The original approach taken by the DNA Island Power plants Santiago 8 The grid tool Vicente 4 The grid tool Sal 4 The grid tool Approach Boa Vista 2 SB Guidelines Antão 3 The grid tool Fogo 2 SB Guidelines Nicolau 1 SB Guidelines Maio 1 SB Guidelines Brava 1 SB Guidelines 6

7 The original approach taken by the DNA to demonstrate additionality: Positive list Technologies Solar technologies (PV or solar thermal electricity) up to 15 MW RE technology up to 5 MW of installed capacity On-shore wind power up to 15 MW Basis of additionality (+ve list) As per Methodological tool: Demonstration of additionality of smallscale project activities Automatically additional for LDC/SIDS based on Methodological tool: Demonstration of additionality of microscale project activities Based on Barrier Analysis referring to the Methodological tool: Demonstration of additionality of small-scale project activities 7

8 Objections raised: SB guidelines may not be appropriate for power sector, even more so when only one or two power plants are connected to the power system Thresholds based on penetration, performance and cost may not work The Meth Panel notes that the outputs in power sector have unique characteristics (e.g. dispatch pattern, peak vs base load, diversification for energy security, limitations owing to natural resources such as water or wind or solar). The tools used for positive list determination for onshore wind i.e. stand alone barrier analysis not suitable for standardization Were designed for project-specific approaches 8

9 In the original submission ( 10 Dec 2015) for 4 out of 9 islands grid tool was applied due to difficulties to apply SB guidelines: Lack of 3 years historic data as required by SB guidelines; The DNA submitted an updated PSB: GEF for all nine islands determined by the grid tool +/-1% variation except one case with +3% variation Positive list is excluded Secretariat and SSC WG members reviewed and recommended it 9

10 Impacts The SB, if adopted, would facilitate development of CDM projects in Cape Verde No cost implications to third-parties/stakeholders is foreseen 10

11 Recommendations to the Board The secretariat recommends that the Board consider: the original draft standardized baseline (option 1); and the revised draft standardized baseline (option 2) It is recommended that Board approve one of them. 11