UNFCCC secretariat, programmeFirstname Lastname, Job Title

Session II: Methodological requirements for projects activities in the renewable energy sector

Methodology ACM0002�Consolidated baseline methodology for grid-connected electricity generation

from renewable sources�DNA TRAINING Venue:

Gaj Hegde, Team Lead, Small Scale CDM Methodologies

Standards Setting Unit, Sustainable Development Mechanism Programme

OUTLINE

Overview

Applicability

Baseline identification

Additionality demonstration

Emissions Calculation

Monitoring requirements

Other energy methodologies

Overview

APPLICABILITY

Conditions (p3) and Technology types

(c) Retrofit of an existing plant

(d) Replacement of an existing plant

For hydro and geothermal: Historical operational reference, min 5 years data, prior the PAOnly first capacity addition/retrofit during the historical reference.

(b) Capacity addition

Hydro, wind, geothermal, solar, wave/tidal

(a) Greenfield sites, new power plant located where no renewable power plant was operated before;

Applicability (p2)

ACM0002 (p3) does not apply to:

1. PAs that involve switching from fossil fuels to renewable sources at the site of the PA;

2. Biomass fired power plants; and3. Hydro plants that increased existing reservoirs with power density less

than 4 W/m2.

APPLICABILITY

Baseline identification

New plants� The methodology prescribes that the baseline is the operation of grid-connected power

plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the �Tool to calculate the emission factor for an electricity system�.�

Capacity addition� For the added capacity: similarly to new plants;� For existing capacity: the methodology establishes that the existing facility would

continue to supply electricity to the grid at historical levels, until the time at which the generation facility would likely be replaced or retrofitted. From that point of time onwards, the baseline scenario is assumed to correspond to the project activity, and no emission reductions are assumed to occur.

Retrofit or replacement� The methodology provides a stepwise procedure based on the �Combined

tool to identify the baseline scenario and demonstrate additionality�.! Step 1: Identify realistic and credible alternative baseline scenarios for power

generation;! Step 2: Barrier analysis; and! Step 3: Investment analysis.

Baseline identification

Additionality demonstration

Additionality Tool

Emissions calculation

Baseline emissions� CO2 emissions from electricity generation in fossil fuel fired power plants

connected to the grid that are displaced due to the project activity,! Results from the multiplication of the electricity generated by the project activity

and the emission factor from the electric power grid

Project emissions� Project emissions from fossil fuel consumption; � Project emissions from the operation of geothermal power plants due to the

release of non-condensable gases;� Project emissions from water reservoirs of hydro power plants.

Emission reductions� Baseline emissions � Project emissions.

Monitoring requirements

Key parameters� At validation

" Grid emission factor (can also be monitored ex post)� Monitored

" Electricity supplied to the grid by the project" If applicable:

� Fossil fuels combusted attributable to the project activity� Methane emissions of the project

AMS- I.D � Grid connected renewable electricity generation

� Counter part ACM0002, but covers biomass PAs� Involves renewable electricity generation units, such as photovoltaic,

hydro, tidal/wave, wind, geothermal and renewable biomass: a) Supplying electricity to a national or a regional grid; orb) Supplying electricity to an identified consumer facility via

national/regional grid through a contractual arrangement such aswheeling.

AMS- I.F - Renewable electricity generation for captive use and mini-grid

� Involves renewable electricity generation units, such as photovoltaic, hydro, tidal/wave, wind, geothermal and renewable biomass that supply electricity to user(s).

� The project activity will displace electricity that is or would have been supplied by on one or more sources : a) national/regional grid; b) fossil fuel fired captive power plant; and c) a carbon intensive mini-grid.

Features of AMS- I.D and AMS-I.F

Case1: exclusively diesel electricity, default EF depending on load factor

Case 2: mix of energy sources including grid, weighted average EF ( captive electricity EF as per the �Tool to calculate baseline, project and/or leakage emissions from electricity consumption�)

Case 3: EF of grid as per AMS-I.D

Combined margin or weighted average of current generation for Emission Factor (EF)

RE substitutes fossil fuel intensive grid/mini-grid and/or captive electricity

RE supply to a national or regional grid

AMS-I.FAMS-I.D

AMS-I.A Electricity generation by the users

� Project: Electricity is produced by users using renewable energy technologies (e.g. solar home systems for lighting, wind-battery chargers for powering domestic appliances)

� Baseline: Services (e.g. lighting and electric appliances) are provided using fossil-fuel-based technologies (e.g., kerosene lamps and diesel generators).

AMS-I.C �Thermal energy production with or without electricity�

Involves renewable energy technologies that supply users with thermal energy to displace fossil fuel use. Examples include solar thermal water heaters and dryers, solar cookers, steam/heat generatorsCogeneration technology that simultaneously produces heat and electricity is also covered

AMS-I.C �Thermal energy production with or without electricity�

Cogeneration technology displaces inefficient and carbon intensive way of producing heat and electricity in a separate process ( example heat is produced using boiler and electricity is produced in captive plant and/or in a grid.

Cogeneration

Heat

Electricity

Key Approaches: AMS-I.D, I.F and I.A

XProject supplies electricity to household users (included in the project boundary) located in off grid areas.

5

XProject supplies electricity to a mini grid system where in the baseline all generators use exclusively fuel oil and/or diesel fuel

4

XProject supplies electricity to an identified consumer facility via national/regional grid (through a contractual arrangement such as wheeling)

3

XProject displaces grid electricity consumption (e.g. grid import) and/or captive fossil fuel electricity generation at the user end (excess electricity may be supplied to a grid)

2

XProject supplies electricity to a national/regional grid1

AMS-I.FAMS-I.DAMS-I.AProject type