Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories

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1 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) TYPE I - RENEWABLE ENERGY PROJECTS Proect participants shall appl the general guidance to the small-scale CDM methodologies, information on additionalit (attachment A to appendix B) and general guidance on leakage in biomass proect activities (attachment C to appendix B) provided at < mutatis mutandis.. Electricit generation b the user Technolog/measure 1. This categor comprises renewable electricit generation units that suppl individual households/users or groups of households/users included in the proect boundar. The applicabilit is limited to individual households and users that do not have a grid 1 connection except when; (a) (b) A group of households or users are supplied electricit through a standalone minigrid 2 powered b renewable energ generation unit(s) where the capacit of the generating units does not exceed 15 MW (i.e., the sum of installed capacities of all renewable energ generators connected to the mini-grid is less than 15 MW) e.g., a communit based stand-alone off-the-grid renewable electricit sstems; or The emissions reduction per renewable energ based lighting sstem is less than 5 tonnes of CO 2 e a ear and where it can be shown that fossil fuel would have been used in the absence of the proect activit b; (i) (ii) A representative sample surve (90% confidence interval, ±10% error margin) of target households; or Official statistics from the host countr government agencies. These The renewable energ generation units include technologies such as solar, hdro, wind, biomass gasification and other technologies that produce electricit all of which is used onsite/locall b the user, e.g., solar home sstems, wind batter chargers. The renewable generating units ma be new installations (Greenfield) or replace existing onsite fossil-fuel-fired generation. The capacit of these renewable energ generators shall not exceed 15 MW. To qualif as a smallscale proect, the total output of the unit(s) shall not exceed the limit of 15 MW. 2. Hdro power plants with reservoirs that satisf at least one of the following conditions are eligible to appl this methodolog: The proect activit is implemented in an existing reservoir with no change in the volume of reservoir; The proect activit is implemented in an existing reservoir, where the volume of reservoir is increased and the power densit of the proect activit, as per definitions given in the Proect Emissions section, is greater than 4 W/m2; 1 National/regional grid 2 Not connected to a national/regional grid 1/10

2 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) The proect activit results in new reservoirs and the power densit of the power plant, as per definitions given in the Proect Emissions section, is greater than 4 W/m2. 3. Combined heat and power (cogeneration) sstems are not eligible under this categor. 4. If the unit added has both renewable and non-renewable components (e.g., a wind/diesel unit), the eligibilit limit of 15 MW for a small-scale CDM proect activit applies onl to the renewable component. If the unit added co-fires fossil fuel, the capacit of the entire unit shall not exceed the limit of 15 MW. 5. Proect activities that involves retrofit or replacement modif of an existing facilit for renewable energ generation are included in this categor. To qualif as a small-scale proect, the total output of the modified or retrofitted unit shall not exceed the limit of 15 MW. 6. In the case of proect activities that involve the addition of renewable energ generation units at an existing renewable power generation facilit, the added capacit of the units added b the proect should be lower than 15 MW and should be phsicall distinct 3 from the existing units. Boundar 7. The phsical, geographical site of the renewable energ generating unit and the equipment that uses the electricit produced delineates the proect boundar. Baseline 8. The energ baseline is the fuel consumption of the technolog in use or that would have been used in the absence of the proect activit to generate the equivalent quantit of energ 4, estimated using one of the following three options: (a) Option 1: ( n EC ) ( l) EBL, = i * i, 1 (1) i E BL, i n i Annual energ baseline; kwh The sum over the group of i renewable energ technologies (e.g., renewable energ technologies for households, rural health centres, rural schools, grain milling, water pumping, irrigation, etc.) implemented as part of the proect activit Number of consumers supplied b installations of the renewable energ technolog belonging to the group of i renewable energ technologies during the ear 3 Phsicall distinct units are those that are capable of generating electricit without the operation of existing units, and that do not directl affect the mechanical, thermal, or electrical characteristics of the existing facilit. For example, the replacement of the nacelle assembl or blades of a wind batter charger would not be considered phsicall distinct. 4 Renewable energ lighting applications shall consider the equivalent level of lighting service instead of energ (See annex 1 of EB 08). 2/10

3 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) EC i, L Estimate of average annual individual energ consumption observed in closest grid electricit sstems among rural grid connected consumers belonging to the same group of i renewable energ technologies. If energ consumption is metered, EC i, is the average energ consumed 5 b consumers belonging to the group of i renewable energ technologies; kwh Average technical distribution losses that would have been observed in diesel powered mini-grids installed b public programmes or distribution companies in isolated areas, expressed as a fraction 6 ; (b) Option 2: ( l) E = EG 1 BL, BL i i, E, Annual energ baseline; kwh i The sum over the group of i renewable energ technologies (e.g., renewable energ technologies for solar home sstems, solar pumps) implemented as part of the proect activit EG i, The estimated annual output of the renewable energ technologies of the group of i renewable energ technologies installed; kwh L (c) Average technical distribution losses that would have been observed in diesel powered mini-grids installed b public programmes or distribution companies in isolated areas, expressed as a fraction 6 ; Option 3: the baseline can be a trend-adusted proection of historic fuel consumption in situations where an existing technolog is replaced. For the specific case of lighting devices a dail usage of 3.5 hours shall be assumed, unless it is demonstrated that the actual usage hours adusted for seasonal variation of lighting is different based on representatives sample surve (90% confidence interval ±10% error) done for minimum of 90 das. 9. For Option 1 and Option 2 above the emissions baseline is the energ baseline calculated in accordance with paragraphs 7 8a and 7 8 b above times a default emission factor: (2) 5 Potential oversizing of the power capacit installed or energ generated b the CDM proect activit shall not be reflected in the baseline and emissions reduction calculation. For this reason, the energ value taken into account shall be the energ consumed. It cannot be the electricit output, except if the proect participant ustifies that it represent a reasonable estimate of the energ that would have been generated b a diesel generator larger than 35 kw and operating with a load factor of at least 50% to provide similar electricit services. 6 A reasonable default value for distribution losses on low voltage rural distribution grid could be 20%. Proect proponents shall demonstrate in the PDD that in the absence of the proect activit electricit suppl would have entailed distribution losses e.g. users are in distributed locations, else a value of L=0 shall be used. 3/10

4 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) BE = E EF CO2, BL, * CO2 (3) BE, E BL, CO 2 Emissions in the baseline in ear ; tco 2 Annual energ baseline in ear ; kwh EF CO CO2 2 emission factor; tco 2 /kwh For EF CO2, default value of 0.8 kg CO 2 -e/kwh, which is derived from diesel generation units, ma be used. A small-scale proect proponent ma, with adequate ustification use a higher emissions factor from table I.F.1 under categor AMS I.F. 10. In the case of Option 3, the emissions baseline is the historic fuel consumption calculated in accordance with paragraph 7 8c above times the CO 2 emission factor for the fuel displaced. IPCC default values for emission factors ma be used. BE CO2, FC, * NCV * EFCO2, CO = (4) BE 2, Emissions in the baseline in ear ; tco 2 FC, Amount of fuel consumption of fuel tpe ; mass or volume unit in ear NCV EF, CO 2 Net calorific value of fuel tpe ; gigaoule per mass or volume unit CO 2 emission factor of fuel tpe ; tco 2 /GJ Fuel tpe used for combustion 11. The baseline emissions of proect activities that involve retrofit/replacement of an existing facilit or capacit addition at an existing facilit, shall be calculated following the procedures prescribed in AMS-I.D with the exception that the applicable emission factor ( ) is calculated as described in this methodolog. EF CO2 12- In the case of proect activities adding renewable energ capacit, if the availabilit of renewable resources is limited, the impact of a decrease in electricit production from the units installed before the proect implementation must be considered. For the specific case of hdropower plants, this effect could be considered calculating the production of electricit that must be used for the emission reduction calculation with the following procedure: (1) Ever ear during the crediting period, the energ that would have been produced under the same hdrological conditions b the units installed before the proect is estimated; 4/10

5 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) (2) The electricit generation i.e. EG PJ, hdro, add, to be considered to calculate emission reductions is calculated with the following formula: EG = EG, (5) PJ, hdro, add, EGhdro, hdro, old EG Net increase in electricit generation b hdropower plants in ear that should PJ, hdro, add, be considered as the energ baseline (E BL ) in ear ; kwh EG, Total actual electricit produced in ear in the plant (all units); kwh hdro EG Estimated electricit that would have been produced b the units installed before hdro, old, the proect under the hdrological conditions of ear ; kwh 13. In the case of proect activities that involves the addition of renewable energ generation units at an existing renewable power generation facilit, where the existing and new units share the use of common and limited renewable resources (e.g. streamflow, reservoir capacit, biomass residues), the potential for the proect activit to reduce the amount of renewable resource available to, and thus electricit generation b, existing units must be considered in the determination of baseline emissions, proect emissions, and/or leakage, as relevant. For proect activities that involve the addition of new generation units (e.g. turbines) at an existing facilit, electricit generation (MWh/) should be calculated as follows: EG = EG, (6) electrical, add, EGelectrical, PJ, electrical, old EG Net increase in electricit generation b renewable energ plant in ear that electrical, add, should be considered as energ baseline (E BL ); kwh EG Total actual electricit produced in ear b all units, existing and new proect electrical, PJ, units; kwh EG Estimated electricit that would have been produced b existing units (installed electrical, old, before the proect activit) in ear in the absence of the proect activit; kwh The value EG,, is given b electrical old electrical, old, MAX electrcial, actual,, ( EG EG ) EG =, (7) electrical, estimated EG Actual, measured electrical energ production of the existing units in ear ; electrical, actual, kwh EG Estimated electrical energ that would have been produced b the existing electrical, estimated, units under the observed availabilit of the renewable resource (e.g. hdrological conditions) for ear ; kwh 5/10

6 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) If the existing units shut down are derated or otherwise become limited in production, the proect activit should not get credit for generating electricit from the same renewable resources that would have otherwise been used b the existing units (or their replacements). Therefore, the equation for EG electrical, old, still holds, and the value for EG electrical, estimated, should continue to be estimated assuming the capacit and operating parameters are the same as those at the time of the start of the proect activit. If the existing units are subect to modifications or retrofits that increase production, then EG,, can be estimated using the procedures described for EG BL,electrical,retrofit below. electrical old 14. For proect activities that seek to retrofit or modif an existing facilit for renewable energ generation the baseline scenario is the following: In the absence of the CDM proect activit, the existing facilit would continue to provide electricit (EG BL,electrical,retrofit, ) at historical average levels (EG historical,electrcial, ) until the time at which the generation facilit would be likel to be replaced or retrofitted in the absence of the CDM proect activit (DATE BaselineRetrofit ). From that point of time onwards, the baseline scenario is assumed to correspond to the proect activit, and baseline electricit production is assumed to equal proect electricit production and no emission reductions are assumed to occur. EG BL electrical, retrofit, ( EGhistorical, electrical, EGestimated, electrical, ) until DATEBaselineRr etrofit, = MAX (8) EG Electrical energ production b an existing facilit in the absence of the BL, electrical, retrofit, proect activit; kwh EG Average of historical annual electricit levels delivered b the existing historical, electrical facilit, spanning all data from the most recent available ear (or month, week or other time period) to the time at which the facilit was constructed, retrofit, or modified in a manner that significantl affected output (i.e. b 5% or more); kwh EG estimated,electrical, DATE BaselineRetrofit Estimated electrical energ that would have been produced b the existing units under the observed availabilit of renewable resource (e.g. hdrological conditions) in ear ; kwh Date at which the existing generation facilit is likel to be replaced or retrofitted in the absence of the CDM proect activit The energ baseline E BL is then, the electricit supplied b the proect activit (EG PJ,electrical,retrofit, ) minus the baseline electricit supplied in the case of modified or retrofit facilities (EG BL,electrical,retrofit, ), as follows: ( EG EG ) E BL, PJ, retrofit, BL, retrofit, BL = (9) E, Annual energ baseline in ear ; kwh 6/10

7 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) EG Electricit supplied b the proect activit in ear (after retrofit); kwh,, PJ electrical, retrofit EG BL,retrofit, Electricit supplied b an existing facilit in the absence of the proect activit in ear (before retrofit); kwh EG historical,electrical is the average of historical electricit levels delivered b the existing facilit, spanning all data from the most recent available ear (or month, week or other time period) to the time at which the facilit was constructed, retrofit, or modified in a manner that significantl affected output (i.e. b 5% or more), expressed in kilowatt-hour per ear. A minimum of 5 ears (60 months) (excluding abnormal ears) of historical generation data is required in the case of hdro facilities. For other facilities, a minimum of 3 ears of data is required. In the case that 5 ears of historical data (or three ears in the case of non-hdro proect activities) are not available e.g. due to recent retrofits or exceptional circumstances as described in footnote 7 a new methodolog or methodolog revision must be proposed. All proect electricit generation above baseline levels (EG BL,electrical,retrofit, ) would have otherwise been generated b the operation of power plants and b the addition of new generation sources. In order to estimate the point in time when the existing equipment would need to be replaced in the absence of the proect activit (DATE BaselineRetrofit ), proect participants ma take the following approaches into account: (a) (b) The tpical average technical lifetime of the equipment tpe ma be determined and documented, taking into account common practices in the sector and countr, e.g. on the basis of industr surves, statistics, technical literature, etc. The common practices of the responsible compan regarding replacement schedules ma be evaluated and documented, e.g. on the basis of historical replacement records for similar equipment. The point in time when the existing equipment would need to be replaced in the absence of the proect activit should be chosen in a conservative manner: that is, if a range is identified, the earliest date should be chosen. Proect emissions 12. For most renewable energ proect activities, PE = 0. However, for the following categories of proect activities, proect emissions have to be considered following the procedure described in the most recent version of ACM0002. Emissions related to the operation of geothermal power plants (e.g., non-condensable gases, electricit/fossil fuel consumption) Emissions from water reservoirs of hdro power plants 7 Data for periods affected b unusual circumstances such as natural disasters, conflicts, and transmission constraints shall be excluded. 7/10

8 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) Leakage 13. If the energ generating equipment is transferred from another activit or if the existing equipment is transferred to another activit, leakage is to be considered. Monitoring 14. Monitoring shall consist of: (a) An annual check of all sstems or a sample thereof to ensure that the are still operating (other evidence of continuing operation, such as on-going rental/lease paments could be a substitute). (b) Metering the electricit generated b all sstems in a sample thereof. 15. For proects where onl biomass or biomass and fossil fuel are used the amount of biomass and fossil fuel input shall be monitored. 16. For proects consuming biomass, a specific fuel consumption of each tpe of fuel (biomass or fossil) to be used should be specified ex ante. The consumption of each tpe of fuel shall be monitored. 17. If fossil fuel is used, the electricit generation metered should be adusted b deducting the electricit generation from fossil fuels using the specific fuel consumption and the quantit of fossil fuel consumed. 18. If more than one tpe of biomass fuel is consumed, each shall be monitored separatel. 19. The amount of electricit generated using biomass fuels calculated as per paragraph 17 shall be compared with the amount of electricit generated calculated using specific fuel consumption and amount of each tpe of biomass fuel used. The lower of the two values should used to calculate emission reductions. Proect activit under a programme of activities The following conditions appl for use of this methodolog in a proect activit under a programme of activities: 21. In the specific case of biomass proect activities the applicabilit of the methodolog is limited to either proect activities that use biomass residues onl or biomass from dedicated plantations compling with the applicabilit conditions of AM In the specific case of biomass proect activities the determination of leakage shall be done following the general guidance for leakage in small-scale biomass proect activities (attachment C of appendix B 9 of simplified modalities and procedures for small-scale clean development OR 8 be 8 Specific fuel consumption is the fuel consumption per unit of electricit generated (e.g., tonnes of bagasse per megawatt-hour). 9 Available on < 8/10

9 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) mechanism proect activities) or following the procedures included in the leakage section of AM0042. In case the proect activit involves the replacement of equipment and the leakage from the use of the replaced equipment in another activit is neglected, because the replaced equipment is scrapped, an independent monitoring of scrapping of replaced equipment needs to be implemented. The monitoring should include a check if the number of proect activit equipment distributed b the proect and the number of scrapped equipment correspond with each other. For this purpose scrapped equipment should be stored until such correspondence has been checked. The scrapping of replaced equipment should be documented and independentl verified /10

10 CDM Executive Board./Version 14 for selected small-scale CDM proect activit categories Electricit generation b the user (cont) Histor of the document* Version Date Nature of revision 13 EB 42, Annex September 2008 Include proect activities for renewable energ based lighting (e.g., solar-lamps) to displace fossil fuel usage in lighting in rural households that are not grid connected or connected to a weak grid prone to 12 EB 33, Annex June EB 32, Annex June EB 31, Annex Ma EB 28, Annex December EB 23, Annex Februar 2006 blackouts/brownouts. Clarif the applicabilit of the methodolog and maintain consistenc with the revision AMS-I.B, which provides guidance for situations where electricit is a co-product of the proect activit, providing mechanical energ for the user. Clarif the monitoring of biomass in proect activities that appl this methodolog which is consistent with monitoring of biomass in the approved methodolog AMS I.D. Clarif that all cogeneration proect activities should appl AMS I.C. Maintain consistenc across categories particularl in relation to AMS I.D; Revised guidance on capacit addition activities and a default emission coefficient of 0.8 kg CO2 /kwh for diesel generation, as opposed to 0.9 kg CO2 /kwh. Include provisions for retrofit and renewable energ capacit additions as eligible activities; Provide clarification for baseline calculations under categor I.D; Provide clarification on the applicabilit of Categor as against Categor I.D. * This document, together with the General Guidance and all other approved SSC methodologies, was part of a single document entitled: Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM proect activities until version 07. Histor of the document: Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM proect activities Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM proect activities contained both the General Guidance and Approved Methodologies until version 07. After version 07 the document was divided into separate documents: General Guidance and separate approved small-scale methodologies (AMS). Version Date Nature of revision 07 EB 22, Para. 59 References to non-renewable biomass in Appendix B deleted. 25 November EB 21, Annex September 2005 Guidance on consideration of non-renewable biomass in Tpe I methodologies, thermal equivalence of Tpe II GWhe limits included. 05 EB 18, Annex 6 25 Februar 2005 Guidance on capacit addition and cofiring in Tpe I methodologies and monitoring of methane in AMS III.D included. 04 EB 16, Annex 2 22 October 2004 AMS II.F was adopted, leakage due to equipment transfer was included in all Tpe I and Tpe II methodologies. 03 EB 14, Annex 2 New methodolog AMS III.E was adopted. 30 June EB 12, Annex 2 Definition of build margin included in AMS I.D, minor revisions to 28 November EB 7, Annex 6 21 Januar 2003 AMS, AMS III.D, AMS II.E. Initial adoption. The Board at its seventh meeting noted the adoption b the Conference of the Parties (COP), b its decision 21/CP.8, of simplified modalities and procedures for small-scale CDM proect activities (SSC M&P). 10/10