Approved baseline and monitoring methodology AM0067

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1 Approved baseline and monitoring methodolog AM0067 Methodolog for installation of energ efficient transformers in a power distribution grid I. SOURCE, DEFINITIONS AND APPLICABILITY Source This methodolog is based on the project activit "Installation of energ efficienc transformers in Shandong power grid", proposed b Hitachi Industrial Equipment Sstems Co., Ltd, whose baseline and monitoring methodolog and project design document were prepared b Hitachi, Ltd., Japan. For more information regarding the proposal and its consideration b the Executive Board please refer to case NM0243: Methodolog for installation of energ efficienc transformers in a power grid on < This baseline and monitoring methodolog refers to latest version of the following tools 1 : Combined tool to identif baseline scenario and demonstrate additionalit ; and Tool to calculate emission factor for an electrical sstem Selected approach from paragraph 48 of the CDM modalities and procedures Emissions from a technolog that represents an economicall attractive course of action, taking into account barriers to investment. Definitions For the purpose of this methodolog, the following definitions appl: Distribution grid. A distribution grid is the portion of the electric sstem that is dedicated to delivering electric energ to the end-users. It delivers power at medium voltage levels (generall less than 50 kv). Load losses. Load losses or coil losses are losses due to resistance in the electrical winding of the transformer. These losses include edd current losses in the primar and secondar conductors of the transformer. No-load losses. No-load losses or core losses are losses due to transformer core magnetizing or energizing. These losses occur whenever a transformer is energized and remain constant regardless of the amount of electricit flowing through it. Geographical region. The geographical region is defined as the concession area 2 which contains project activit areas. 1 Please refer to: < 2 Concession area is the territor where an specific utilit has the authorization to operate. 1/15

2 Project activit area. It is defined as a distinct predefined area within the geographical region where the project activit is implemented. Performance level. It is certified maximum level of load and no-load losses for transformers installed in the geographical region, which is provided either b an agenc appointed b the Government or b an independent qualified entit. Tpe of transformer. The tpe of transformer for the purpose of this methodolog is defined b its capacit (kva) and transformation ratio. Applicabilit The methodolog is applicable to the following project activities: (1) Replacement of existing lower-efficienc transformers with higher efficienc transformers in an existing distribution grid; or (2) Install new high efficienc transformers in the new areas covered b expansion of the distribution grid where in the absence of the project, lower efficienc transformers would have been installed. The following conditions appl to the methodolog: (a) Emission reductions due to reduction in no-load losses 3 alone are claimed; (b) Installation of transformers within the distribution grid is governed b performance levels established b local or national regulation, which define maximum permissible load losses and no-load losses; (c) Load losses, at rated load, of the transformers implemented under the project activit are demonstrated to be equal or lower than the load losses in transformers that would have been installed in absence of the project activit; (d) The transformers installed in the project activit compl with national / international QA/QC standards. This shall be demonstrated through certification based on test conducted using relevant national / international testing standards from an accredited entit / government recognised entit. The certification report shall include information on the measured performance levels for load losses and no-load losses in various operational conditions and in addition, the associated uncertaint; (e) Project proponent implements a sstem to ensure that the replaced transformers are not used in other parts of the distribution grid or in another distribution grid; (f) A complete list of co-ordinates uniquel identifing each transformer installed under the project activit is provided; (g) Data on total number and tpe of transformers installed over the last three ears previous the project implementation is available. In addition, the applicabilit conditions included in the tools referred above appl. 3 The methodolog does not credit reduction in emissions due to reduction in load-losses as the load-losses of the transformer var with the load and, therefore, crediting such reduction would requires continuous monitoring of the load on the project activit transformer. 2/15

3 Further notes on applicabilit of the methodolog Note 1: The methodolog is not applicable if the technolog of the transformers installed in the project activit represents more than 20% of the total installed transformers in the geographic region during a period of 3 ears prior to the implementation of the project activit. For example if the project activit starts in 2009, then project proponent shall use historical data for the ears 2006, 2007 and 2008 and evaluate if 20% or more of the total transformers installed during these ears, irrespective of the tpe of transformer, are of the same technolog as that used in the project activit. If es, then this methodolog is not applicable for the project activit. Note 2: To demonstrate applicabilit condition (c), project proponents shall show, for each tpe of transformer installed, that the rated load losses for project activit transformers are lower than or equal to load losses of baseline transformer load losses. k, LL PR LL,k BL,k Where: LL BL, = Load loss of the transformer tpe k which would have been installed k (Watt) LL PR,k = Load loss of transformer k installed during project activit (Watt) k = Tpe of transformer LL BL,k should be the minimum value of the load losses defined b the performance levels as per national regulations and the performance levels provided b the manufacturers of commerciall available transformers that would be installed in the baseline scenario. Note 3: Transformers can be installed at an time during the crediting period in the project activit area, but the will onl be eligible to obtain CERs from the beginning of the subsequent monitoring period. Project participants shall provide the following information related with each of the installed transformers under the project activit: Date of installation; Exact localization of the transformer (providing serial number and co-ordinates of the location); Technical data of each transformer, for example transformation ratio, capacit, etc.; Load losses and no-load losses provided b the manufacturer. For transformers installed after registration of the project activit, the verifing DOE shall ensure that relevant applicabilit conditions are met. The DOE shall clearl identif the number of new transformers installed and present its assessment of above check. 3/15

4 II. BASELINE METHODOLOGY PROCEDURE Procedure for selection of baseline scenario and demonstration of additionalit The baseline scenario is identified using latest version of the Combined tool to identif baseline scenario and demonstrate additionalit. In appling the following list of credible and plausible alternative scenarios for the replacement of transformers, inter alia, shall be considered: (1) Replacement or installation of transformers adopting a more efficient technolog other than the technolog of the project activit; (2) Continuation of current practice. Replacement or installation of transformer with the most commonl used transformers in the geographical region where the project activit is implemented; (3) Replacement or installation of transformers as per new performance levels enforced b regulation; (4) Replacement or installation of transformers adopting the project activit technolog without CDM benefits. The list of credible and plausible alternatives will be narrowed down, b removing those, which do not compl with legal requirements. Barrier analsis Barriers ma include, among others: Technological barriers, inter alia: Manufacture of energ efficienc material is a state-of-the-art technolog and there is onl limited production in the host countr. Insufficient availabilit of the material could also lead to limited production of energ efficienc transformers. In addition, the manufacturing technolog of energ efficienc transformers is not widel disseminated in the host countr; Lack of familiarit or first-of-its-kind project significantl hinders the abilit to implement the proposed project activit; Lack of information regarding the technical performance of the tpe of transformers installed in local environmental and operational conditions in the host countr. Investment barriers, inter alia: Financing capacit of the project proponent vis-à-vis other investment opportunities; Debt funding ma not be available for innovative project activit; Lack of domestic or foreign direct investment in the countr where the CDM project activit is to be implemented; Subsidies ma exist that inhibit investments in energ efficienc projects; or, Inabilit of the management to dedicate resources for implementation of the CDM project activit. 4/15

5 Prevailing practice barriers, inter alia: Commonl used technolog (e.g., Silicon steel plate) for distribution transformers are preferred from the aspects of reliabilit and stabilit; Continue procuring transformers from a specific manufacturer, e.g. long-term contract as a common commercial practice. The methodolog is applicable onl if an of the following scenarios are identified as the most likel baseline options: Scenario 2: Continuation of current practice i.e. replacement or installation of transformer with the most commonl used transformers in the geographical region where the project activit is implemented ; or Scenario 3: Replacement or installation of transformers as per performance levels enforced b regulation. Project boundar The project boundar is the geographical region where project activit transformers are installed during the crediting period. The boundar includes the electricit sstem (or grid) within which the project activit area is located. The greenhouse gases included in or excluded from the project boundar are shown in the following table. Table 1: Emissions sources included in or excluded from the project boundar Source Gas Included? Justification / Explanation Fossil fuel power plants CO 2 Yes Emissions that would have occurred at the fossil fuel power plants if the baseline Baseline in the grid transformers would have been installed CH 4 No Excluded for simplification N 2 O No Excluded for simplification Project Activit Baseline emissions 4 Fossil fuel power plants in the grid The baseline emissions, CO 2 Yes Emissions at the fossil fuel power plants when the energ-efficient transformers introduced b the proposed project activit are used CH 4 No Excluded for simplification N 2 O No Excluded for simplification, in a ear are given b: BE BE n 6 ( NLL n ) MP (1 Br) EF = (1) BL,k k, CO2,grid, 10 k= 1 4 An example on how to estimate the baseline emissions is presented in Annex 1 of the methodolog. 5/15

6 Where: BE = Baseline emissions in ear (tco 2 /ear) k = Index k represents tpe of transformers, installed in the project activit NLL BL,k = No-load loss rate of the transformer tpe k that would have been installed b the end of the ear -1 in the baseline scenario. No-load loss rate for each baseline transformer tpe k is determined individuall, as given in equation 2 below. MP = Duration of each monitoring period (hours). Br = Black out rate of each monitoring period (%). EF = CO CO2, grid, 2 emission factor of the grid for ear where the project activit is implemented (tco 2 /MWh). EF is calculated adopting the combined margin and as described in the tool to calculate the emission factor of an electricit sstem. n k, = Cumulative number of tpe k transformers installed b the project activit at the end of ear -1 Procedure to estimate Baseline no-load Loss ( NLL, ) (1) Baseline scenario 2: NLL, is calculated as per the procedure defined as follows: BL k { NLL NLL } NLL =, (2) BL, k min reg, k, AVG k Where: NLL, = No-load loss rate defined b the national regulations for k tpe of transformers (W) reg k NLL = Average of no-load loss rate provided b the manufacturers of all k tpe of AVG, k transformers whose performance is among the top 20 % (W) 5 6. Procedure to calculate NLL AVG,k : BL k (i) (ii) (iii) List all transformer tpe k installed in geographical area during the most recent five ears before the implementation of the project activit (N); Order the transformers from least to highest No-Load Losses, the No-Load Losses as defined b the manufacturer s performance level specification; Take the first 20% (0.2N) of all transformers from the order arrived at in (ii) and average them. (2) Baseline scenario 3: NLL BL,k is defined b the performance levels enforced through regulation. 5 This means averaging out the no-load losses of selected top 20% of manufacturers who have lowest no-load losses. 6 If a specific tpe of transformer installed in the project activit in last five ears, was not installed before in the distribution grid / or was not manufactured in the geographic region then the baseline NLL for such transformer cannot be estimated using this procedure. In such cases, a revision to this methodolog should be proposed. 6/15

7 Project Emissions The project emissions PE = PE in a ear is given b: n 6 [ 1+ UNC) NLLPR, k, nk MP (1 Br ) EFCO2, grid, 10 ] k = 1 ( (3) Where: PE = Project emissions in ear (tco 2 /ear) k = Index k, tpe of transformer, in the geographical region of the project activit area installed b the project activit at the end of ear -1 NLL = No-load loss rate of the energ efficienc transformer i which will have been installed b PR, k, the end of the ear -1 in the project activit (Watts) MP = Duration of each monitoring period (hours) Br = Black out rate of each monitoring period (%) EF CO CO2, grid, 2 emission factor of the grid for ear where the project activit is implemented (tco 2 /MWh). EF is calculated adopting the combined margin and as described in the tool to calculate the emission factor of an electricit sstem. UNC = Maximum allowable uncertaint for the no-load losses stated in the certification report provided b an accredited entit n = Total cumulative number of tpe k transformers installed b the project activit at the k end of ear -1 Leakage No significant leakage is anticipated from the project activit, provided that the sstem is place to ensure that the replaced transformers are not used elsewhere. To demonstrate that the replaced transformers are not used, the project proponents shall provide documentar evidence that the transformers were scrapped. Verification b the DOE determining that replaced transformers have not been distributed at other places is required. Emission reductions Emission reductions are calculated as follows: ER = BE PE (4) Where: ER = Emission reductions during the ear (tco 2 ) BE = Baseline emissions during the ear (tco 2 ) PE = Project emissions during the ear (tco 2 ) 7/15

8 Changes required for methodolog implementation in 2 nd and 3 rd crediting periods It is required to address the validit of the baseline scenario at the start of the second and third crediting period for a project activit. Common practice analsis shall be carried out for the 2 nd and 3 rd crediting periods to demonstrate the validit of the baseline scenario. It has to be demonstrated that the ratio of transformers technolog tpe used in the project activit should be lower than 20%, when compared with the total operational transformers in the same geographical region. Baseline emissions have to be reassessed before start a new crediting period Data and parameters not monitored In addition to the parameters listed in the tables below, the provisions on data and parameters not monitored in the tools referred to in this methodolog appl. The following items are demanded to confirm applicabilit conditions: ID Number: 1. Parameter: LL BL, k W Load loss rate of the transformer tpe k that would have been installed in the baseline scenario There are two sources of information: 1. Local, national legislation for transformer performance levels; 2. Information provided b the manufacturer. The parameter should be the minimum value for load losses between the procedures (if an): performance levels defined b national regulations and the performance levels provided b the manufacturers of commerciall available transformers that might be installed in the baseline scenario. An comment: ID Number: 3. Parameter: NLL reg, k W No-load losses defined b the national regulations for k tpe of transformers (W) Local, national legislation for transformer performance levels procedures (if an): An comment: Use the latest regulations onl 8/15

9 ID Number: 4. Parameter: NLL AVG, k W Average of no-load loss rate provided b the manufacturers of all k tpe of transformers installed in the geographical region whose performance is among the top 20 % of their tpe in last five ears prior to the implementation of the project activit Specifications supplied b manufacturers at the time of installation procedures (if an): An comment: III. MONITORING METHODOLOGY Monitoring procedures This monitoring methodolog requires the monitoring of the following items to confirm applicabilit conditions: The actual installed tpe, capacit, transformation ratio and load loss rate (W) of each highefficienc transformer installed b the project activit; Historical installation data of the transformer tpes for the past five (5) ears. This monitoring methodolog requires the monitoring of the following items to complete project emission calculations: Load and No-load loss rate (W) of energ efficienc transformers installed b the project activit; Specifications of each high-efficienc transformer installed b the project activit (date of installation, localization, technical data); CO 2 emission factor (tco 2 /MWh) of the grid; Yearl blackout rate of the grid during the ear (%); The number of transformers which are installed in the project activit and are in operation. (i.e. consider the number of high-efficienc transformers removed since installed). All data collected as part of monitoring should be archived electronicall and be kept at least for 2 ears after the end of the last crediting period. 100% of the data should be monitored if not indicated otherwise in the tables below. All measurements should be conducted with calibrated measurement equipment according to relevant industr standards. In addition, the monitoring provisions in the tools referred to in this methodolog appl. 9/15

10 Data and parameters monitored Data / Parameter: procedures (if an): Monitoring frequenc; An comment: EF CO2, grid, t CO 2 /MWh v Official statistics or data obtained from local power compan Calculated b the combined margin method described in specified in Tool to calculate emission factor of an electricit sstem Yearl Data / Parameter: procedures (if an): Monitoring frequenc: An comment: MP Hours Duration of each monitoring period Official statistics or data obtained from local power compan To be specified in the CDM-PDD document Project participant shall define the period (i.e. if monitoring period is a ear, then MP=8760) Data / Parameter: Br % Black out rate in the corresponding monitoring period. Official statistics or data obtained from local power compan procedures (if an): Monitoring frequenc: Yearl The blackout data will be collected as part of normal business operations. The data shall be cross-checked with other internal compan reports. An comment: Data / Parameter: procedures (if an): Monitoring frequenc: An comment: k tpe of transformer (tpe based on capacit and transformation ratio) Index k represents tpe of transformers, installed b the project activit Record of installation of high efficienc transformers provided b installation entities Reported At each transformer installation or replacement in the project boundar The installation data will be collected as part of normal business operations. The data shall be cross-checked with other internal compan reports. 10/15

11 Data / Parameter: procedures (if an): Monitoring frequenc: An comment: Parameter: procedures (if an): Monitoring frequenc: An comment: Data / Parameter: procedures (if an): Monitoring frequenc: An comment: n k, Number Cumulative number of transformers of tpe k installed in the project activit b the end of ear -1 Record of installation of high efficienc transformers provided b installation entities Reported Yearl The installation data will be collected as part of normal business operations. The data shall be cross-checked with other internal compan reports. NLL PR, k, W No-load loss rate of the high energ efficienc transformers tpe k installed b end of ear -1 b the project activit Manufacturer s performance test report which measured at the time of predeliver inspection According with local, national or international standards Ever time a transformer is installed Manufacturer s performance test report submitted b the manufacturer validated b certification entit. A certification report shall be provided b an accredited entit LL PR, i W Load-loss rate of energ efficienc transformers installed b the project activit Manufacturer s performance test report which measured at the time of predeliver inspection Load-losses values at a rated current which measured at the time of predeliver inspection Ever time the transformers are installed Manufacturer s performance test report submitted b the manufacturer validated b certification entit A certification report shall be provided b an accredited entit 11/15

12 Data / Parameter: procedures (if an): Monitoring frequenc: An comment: Data / Parameter: procedures (if an): Monitoring frequenc: An comment: Number of transformers installed under the project activit No unit Historical record of installed transformers under the project activit The record shall include following information: Date of installation; Exact localization of the transformer (providing serial number and co-ordinates of the location); Technical data of each transformer (ratio, capacit, etc.); Rated load losses; Nominal no-load losses. After ever new installation Number of replaced transformers No unit Historical record of replaced transformers under the project activit. The record shall include information on how the transformers are not going to be use in other parts of the grid or in another grid Record of removal / installation of transformers provided b installation entities Records of disposition of transformers provided b utilit Yearl References and an other information 12/15

13 Transfo rmer tpe No-load losses as per regulati on Annex 1: Example to estimate baseline emissions: Number of transformers installed in the last five ears previous implementation of the project activit (=0) Existing transformers in the host countr Manufactur Manufactur Manufacture No load losses rate (NLL k ) (Watts) Existing transformers in the host countr Manufactur Manufactur Manufacture er A er B r C er A er B r C Estimation of NLL BL, k { NLL NLL } NLL BL, k = min reg, k, AVG, k a) Estimation of no-load losses rate (NLL) for transformer tpe 1: NLL reg,1 =55 b) Estimation of no load losses for the top 20% transformers The following table sorts the transformers (of tpe 1) installed ordering them in an ascending order starting from least no load losses. Manufacturer Number transformers installed No load losses Transformer tpe 1 A % (10/60) B % (30/60) C % (20/60) Percentage of transformers in the total In above table, the least no load loss transformers onl comprises 17% of the total. This means that the remaining 3% of number of transformers (as the losses of top 20% are to be averaged out) of the next least no-load loss transformer manufacturer (manufacturer B) have to be included in above number representing 17% of total. Therefore final table gives the top 20% of the total number, which is 12, of transformers of tpe-i. Manufacturer No load losses Transformer tpe 1 Number of transformers Percentage of transformers in the total A % B % 13/15

14 NLL AVG,1 will be calculated as the average of the no load losses of the top 20% transformers tpe 1 (12 units): NLL AVG,1 = = 51.67W (Average of top 20%) 12 Therefore, NLLBL,1 = Min {top 20%, regulation}= Min{51.67, 55} = W Summar of NLL for each tpe of transformer in the baseline scenario No load losses for different tpes Value Reference NLL = W From the top 20% BL,1 NLL = 75 W From the top 20% BL,2 NLL = 95 W From the regulation. Top 20% value is 110. Transformers BL,3 with no load losses of 90W and 100W were not installed NLL = 98 W From the regulation. Top 20% no load losses value is 120. BL,4 Transformer tpe Total transformers installed b ear Baseline Emissions are estimated as follows: BE n k= 1 6 ( NLL n ) MP (1 Br) EF = BL, k k, 1 CO2, grid, 10 = ( ) MP (1 Br ) EF = MP (1 Br ) EF CO2, grid, 10 6 CO2, grid, /15

15 Histor of the document Version Date Nature of revision(s) 01, Annex 2 14 March 2008 Initial adoption 15/15