session 3 darshak mehta...– mini grid projects • developers may be government, private companies...
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Programme of Activities (PoA) for Sustainable Renewable Energy Power Generation in Papua New
Guinea (PNG) – Journey So Far
Darshak MehtaTechnical Support FacilityCarbon Market ProgramAsian Development Bankdmehta@cmp‐adb.org
18 July 2012
The project
• ADB was processing Project 41504: Town Electrification Investment Program
• It included TA‐7113 PNG: Preparing the Town Electrification Project
• Loan‐2714/2713 PNG: Town Electrification Investment Program, Tranche 1
• Early identification of CDM opportunity before loan was approved
ADB Loan Project Elements
The investment program will improve power supply in provincial urban centres through replacement of diesel power generation with sustainable renewable energy power generation. The investment program will include:
(i) construction of about six run‐of‐river hydropower plants to supply provincial centres,
(ii) construction of transmission systems to connect provincial centres, and
(iii) capacity building within the power utility and communities. Project preparatory technical assistance (TA) was used in project preparation.
• Population 7.06 million• Urban population 12.5%
• Area 462,840 km2• GDP / Capita USD 1300• Proportion of land area covered by forest 58.1%• Population living on less than US$1.25 per day 35.8%
CDM Related• Number of registered CDM projects 5 (as on 09 July 2012)• PoA under validation 4 (as on 09 July 2012)• CDM projects under validation 12 (as on 09 July 2012)
• Population 7.06 million• Urban population 12.5%
• Area 462,840 km2• GDP / Capita USD 1300• Proportion of land area covered by forest 58.1%• Population living on less than US$1.25 per day 35.8%
CDM Related• Number of registered CDM projects 5 (as on 09 July 2012)• PoA under validation 4 (as on 09 July 2012)• CDM projects under validation 12 (as on 09 July 2012)
Papua New Guinea
Electricity Scenario in PNG
• Grid‐connected power is largely restricted to the main urban areas
• Less than 10% of the population has access to electricity• Relatively low percentage of urban residents are connected• Distributed power is rarely available outside the provincial
urban centres• The supply of power to business and industry in the
provincial urban centres is unreliable• Many large businesses in the provinces self‐generate using
diesel generators, at high cost• Lack of access to affordable, reliable power is limiting
economic growth
The Thought Process• Need for electrification • Low carbon growth possible due to existence of natural resources like Solar, hydro, geothermal, wind, wave / tidal, biomass projects
• New projects may include – user generated, – grid connected and – mini grid projects
• Developers may be government, private companies or individuals
• Similar situations are likely to exist in many more countries in the pacific / world
The Thought Process (contd.)
• PoA is ideal for a long term multiple projects scenario
• Number of individual methodologies need to be used to suite each plausible scenario (no electricity (AMS I A) / mini grid (AMS I F) / Grid connected (AMS I D))
• Type I methodologies are good for the hydro projects, and are applicable for other RE technologies as well
• AMS I F or AMS I D are not suitable for greenfield RE generation situation where baseline has no power
• There is a need to have approval from CDM EB on multiple methodology application in PoA
UNFCCC Submissions SSC_537*• Permission for use of multiple methodologies in a single
PoA –AMS I F and AMS I D together• By end of crediting period ‐ grid may expand further and
join to a national grid• Projects like biogas where combination of type I and
type III methodologies ‐ was not permitted at that time• Request to SSC WG submitted and it acknowledged this
limitation and considered further work on this aspect while making standard for multiple methodologies
• SSC WG reminded that there has to be consistency of circumstances throughout the crediting period – further flexibility in rules was necessary
*http://cdm.unfccc.int/methodologies/SSCmethodologies/clarifications/41087
UNFCCC Submission SSC_547*• AMS I F and AMS I D are not suitable for renewable
electrification in non electrified areas which was case in most of PNG (90 per cent not electrified)
• AMS I A was found to be necessary to be included in PoA in addition to AMS I F and AMS I D
• There was a clause in AMS I F which made it necessary to discard the fossil fuel based original electricity generation devise to be destroyed
• Under SSC_547 ADB requested removal of this clause on account of– Inconsistency within the methodology for PoA and Non PoA projects– Usefulness of the equipment in other non electrified areas– Back up generation device to renewable energy
*http://cdm.unfccc.int/methodologies/SSCmethodologies/clarifications/63945
UNFCCC Submission SSC_547 (Cont.)
• SSC WG accepted use of AMS I F, AMS I D and AMS I A in same PoA
• SSC WG removed clause of discarding replaced fossil fuel generating equipment from type I methodologies AMS I A, AMS I B, AMS I C, AMS I D and AMS I F in PoAs
Additionality Approach
This is in addition to automatic additionality for projects of less than 15 MW projects– Offshore wind– Solar Photovoltaic, solar thermal – Tidal / Wave energy– Check Agenda of EB 68 for proposed amendment to this list
A small beginning…..
To reach….
and their combinations……
Combination of RE technologies / Situations covered under PNG PoA
EB 65..Annex 3*
23. If the boundary of the PoA is amended post‐registration to expand the geographic coverage or to include one or more additional host Parties, the CME shall update the eligibility criteria to reflect the consequent changes…….
* STANDARD FOR DEMONSTRATION OF ADDITIONALITY, DEVELOPMENT
OF ELIGIBILITY CRITERIA AND APPLICATION OF MULTIPLE METHODOLOGIES FOR PROGRAMME OF ACTIVITIES http://cdm.unfccc.int/Reference/Standards/meth/meth_stan04.pdf
Extension………to Pacific
Extension to……… Asia
Extension to………LDC of the World
PoAs – Building Partnerships
Banglades China India Mongolia Nepal Pakistan PhilippinesSrilanka Thailand Viet Nam
Air Methane Oxidation
Biogas
Biomass Heat
Biomass Electricity
Building EE
CFL
Coal Mine Methane
Composting
Energy Efficient Chillier
Green Brick
High Voltage Distribution System
Hydrauluic Ram
ICS
Improved water mills
Small Hydro
Solar PV
Solar Water Heating
Street Lighting
Landfill gas
LED
Vapour Absorption Referigeration
Newer Developments in CDM
• New methodologies
– AMS‐I.L.: Electrification of rural communities using renewable energy
– AMS‐III.AW.: Electrification of rural communities by grid extension
– AMS‐III.BB: Electrification of communities through grid extension or construction of new mini‐grids
– Concept of suppressed demand
Suppressed Demand
Suppressed demand concept has considered in new methodologies and emission factors are
– 6.8 tCO2e / MWh for first 0.0550 MWh
– 1.3 tCO2e / MWh for 0.055 to 0.250 MWh
– 1.0 tCO2e / MWh for 0.250 to 0.500 MWh
For all values above project having greater than 0.5 MWh, a default value of 1.00 will be used.
Thus, project design and presentation can help in optimizing the CDM benefits
Way Forward and Lesson Learnt • Asia alone has 675 million people without electricity.
Highest electrification requirement is in Myanmar, East Timor, Bangladesh, India, Cambodia, Lao PDR, Solomon Islands…
• Expansion project boundaries in case of advanced PoAs –LED, water purification, biogas and other RE technologies
• Newer methodologies may give better emission reduction • Blending of existing rules can help in simplification of the
CDM process • Appropriate logical explanations of difficulties in CDM
projects may be resolved by CDM EB by presentations
Support and guidance provided by..
Jiwan Acharya, Anthony Maxwell, VinayDeodhar, Susan Supa, Damien Sonny, Birgit Haberl, Kate Hughes, Alma Canarejo, Anna Cinco
……..
Srikanth Subbarao
And the journey begins…………
From Divune…….
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