CLEAN DEVELOPMENT MECHANISM PROPOSED NEW METHODOLOGY: MONITORING (CDM-NMM) Version 01 - in effect as of: 1 July 2004 CONTENTS

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CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROPOSED NEW METHODOLOGY: MONITORING (CDM-NMM) Version 01 - in effect as of: 1 July 2004 A. Identification of methodology B. Proposed new monitoring methodology CONTENTS

CDM Executive Board page 2 SECTION A. Identification of methodology A.1. Title of the proposed methodology: Monitoring methodology for bundling energy efficiency improvements to air conditioning systems in multiple commercial buildings A.2. List of category(ies) of project activity to which the methodology may apply: Improvements to energy efficiency of air conditioning systems in commercial buildings A.3. Conditions under which the methodology is applicable to CDM project activities: Methodology is applicable to CDM project activities in which energy efficiency improvements to air conditioning systems are accompanied with installation of electricity meters to monitor individual chiller electricity usage. A.4. What are the potential strengths and weaknesses of this proposed new methodology? The methodology allows explicit observation of electricity consumption by air conditioning systems under project activity, allowing for accurate calculation of project activity emissions. SECTION B. Proposed new monitoring methodology B.1. Brief description of the new methodology: Electricity consumed by chiller units in commercial air conditioning systems is monitored. B.2. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario: B.2.1. to be collected or used in order to monitor emissions from the project activity, and how this data will be archived: ID number (Please use numbers to ease cross-referencing to table B.7) variable Source of data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment 1-1 PEC y Electricity kwh Measured Monthly 100% Paper or electronic Meters must be installed where not

CDM Executive Board page 3 Meter already extant B.2.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): Project emissionsy = [PECchiller y / (1-L)] * EFy (1) In which: PECchiller y = the metered kwh consumption of all chillers in the project population in year y L = average technical distribution losses for the grid serving the locations where the devices are installed, expressed as a fraction EFy = Carbon emission factor for the electricity grid in year y (kgco2/kwh) EFy is calculated using the approach outlined in the consolidated methodology - ACM002 for the applicable electricity grid. B.2.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of greenhouse gases (GHG) within the project boundary and how such data will be collected and archived: ID number (Please use numbers to ease crossreferencing to table B.7) variable Source of data 2-1 EFy tco2eq/mwh and kgco2eq/kwh unit Measured (m), calculated (c), estimated (e), Recording Frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) C Yearly 100% Paper 2-2 OH BCP Hours M Quarterly 100% Paper Comment B.2.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): The baseline calculation procedure calculates baseline emissions by multiplying surveyed baseline electricity consumption under best common practice for pre-project chiller performance and operation, the post-project grid emission factor, and the total capacity of air conditioning systems included in the project: Baseline emissionsy = BEEBCP * TRPPtotal * EFy (2)

CDM Executive Board page 4 In which: Baseline emissionsy = Emissions under baseline scenario during crediting period BEEBCP = Baseline energy efficiency (kwh/tonne of refrigerant) under best common practice EFy = Grid emission factor during crediting period TRPPtotal = Total pre-project A/C capacity in project (tonnes of refrigerant) Where: TRPPtotal = ΣTRPPi,b (TRPPi,b is A/C capacity at project site i in year b) BEEBCP = CPBCP * OHBCP * davg(mbcp) (3) In which: CPBCP = chiller performance (in kw/tr) under best common practice as determined by survey procedure described below OHBCP = operating hours (in hours/year) under best common practice as determined by survey procedure described below davg(x) = weighted average of manufacturer-provided deterioration functions for chiller models present in highest-performing quintile MBCP = chiller age/manufacturing year under best common practice as determined by survey procedure described below The grid emission factor (EFy) should be established according to the procedure in consolidated methodology ACM0002, Consolidated methodology for grid-connected electricity generation from renewable sources Version 4, also outlined in AM0020 Baseline methodology for water pumping efficiency improvements. Chiller performance value should be obtained from the given chiller capacity in the equipment nameplate and chiller performance curve supplied by the manufacturer. When possible, more accurate chiller performance value could be calculated through online measurement where actual power consumption during chiller operation is recorded. The equipment nameplate should also supply the details specification of the chiller and most importantly these must include the brand, model, chiller capacity (amount of refrigerant), year of manufacturing and year of installation. Operating hours of chiller in a year should be available through written record of operation. If a detail record does not exist, the hotel building engineers must be questioned of their daily normal practice in running the chiller to allow estimation of yearly operating hours by interpolating to weekly and monthly average operating hours. Chiller performance curve would also give more specific information on ideal electricity consumption based on the chiller operating condition, and a good manufacturer would include estimation of performance deterioration over years. The reading of this curve would be assisted if data on operating temperature and ambient temperature which are also collected simulteaneously during online measurement over specific period are also available, thus the chiller performance is calculated more precisely.

CDM Executive Board page 5 B.3. Option 2: Direct monitoring of emission reductions from the project activity: B.3.1. to be collected or used in order to monitor emissions from the project activity, and how this data will be archived: ID number (Please use numbers to ease crossreferencing to table B.7) variable Source of data unit Measured (m), calculated (c), estimated (e), Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment B.3.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): B.4. Treatment of leakage in the monitoring plan: A primary leakage concern in energy efficiency projects is the rebound effect, in which consumption of a product or service increases because of lower energy costs. Under this methodology, increased A/C usage due to the rebound effect would only increase project activity emissions, but it would not change the baseline at all. Therefore the rebound effect is addressed internally in the methodology and leakage is not a concern.

CDM Executive Board page 6 B.4.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project activity: ID number (Please use numbers to ease crossreferencing to table B.7) variable Source of data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment B.4.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): B.5. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): Annual emission reductions arising from the project activity (ERy) are calculated as: ERy = Baseline emissionsy Project emissionsy = [(BECy PECy)/(1-L)] *EFy (4) = [((CPBCP * OHBCP * davg(mbcp)) * TRPPtotal) PECchiller y)/(1-l)]*efy (5) In which: BECy = bundled baseline electricity consumption for all chillers in year y (kwh) CPBCP = chiller performance (in kw/tr) under best common practice as determined by survey procedure described below OHBCP = operating hours (in hours/year) under best common practice as determined by survey procedure described below davg(x) = weighted average of manufacturer-provided deterioration functions for chiller models present in highest-performing quintile MBCP = chiller age/manufacturing year under best common practice as determined by survey procedure described below TRPPtotal = Total pre-project A/C capacity in project (tonnes of refrigerant) PECchiller y = metered kwh consumption of all chillers in the project population in year y L = average technical distribution losses for the grid serving the locations where the devices are installed, expressed as a fraction

CDM Executive Board page 7 EFy = carbon emission factor for the electricity grid in year y (kgco2/kwh) EFy is calculated using the approach outlined in the consolidated methodology - ACM002 for the applicable electricity grid. Chiller performance value should be obtained from the given chiller capacity in the equipment nameplate and chiller performance curve supplied by the manufacturer. When possible, more accurate chiller performance value could be calculated through online measurement where actual power consumption during chiller operation is recorded. The equipment nameplate should also supply the details specification of the chiller and most importantly these must include the brand, model, chiller capacity (amount of refrigerant), year of manufacturing and year of installation. Operating hours of chiller in a year should be available through written record of operation. If a detail record does not exist, the hotel building engineers must be questioned of their daily normal practice in running the chiller to allow estimation of yearly operating hours by interpolating to weekly and monthly average operating hours. Chiller performance curve would also give more specific information on ideal electricity consumption based on the chiller operating condition, and a good manufacturer would include estimation of performance deterioration over years. The reading of this curve would be assisted if data on operating temperature and ambient temperature which are also collected simulteaneously during online measurement over specific period are also available, thus the chiller performance is calculated more precisely. B.6. Assumptions used in elaborating the new methodology: B.7. Please indicate whether quality control (QC) and quality assurance (QA) procedures are being undertaken for the items monitored: (Indicate table and ID number e.g. 3.-1.; Uncertainty level of data (High/Medium/Low) Explain QA/QC procedures planned for these data, or why such procedures are not necessary. 3.2.) 1-1 Low Electricity meter on chiller will be properly calibrated and checked periodically for accuracy. B.8. Has the methodology been applied successfully elsewhere and, if so, in which circumstances?

CDM Executive Board page 8 - - - - -