Case study and calculation of carbon credits

Presentation by:Nalin Kanshal Director Elpro Energy Dimensions Pvt.Ltd Bangalore

CLEAN DEVELOPMENT MECHANISM PROJECT CYCLE .

2 or even 4 4.Validation •Validation is the process of independent evaluation of a project activity against the requirement of the CDM 5.Registration •Registration is the formal acceptance of a validate project as CDM project activity . •PPs may get written approval in step 1.1.Preparing PDD 3. Planning a CDM Project Activity •CDM PPs plan a CDM project activity •PPs prepare the PPD for a CDM project 2.Getting Approval •PPs shall get written approvals of voluntary participation from DNA of each party involved. including host party.

•Among issued CERs.Monitoring a CDM Project Activity •PPs collect and archive all relevant data necessary for calculating GHG emission reduction by a CDM project activity in accordance with the monitoring plan in the PDD 7.6.2% will be deducted for the share of proceed to assist developing countries to meet cost of adaptation 9.Issuance of CERs •The EB will issue CERs equal to the verified amount of GHG emission reductions. 8.Distribution of CERs •CERs will be distributed among PPs .Verification & Certification •Verification is a Periodic independent review and expost determination of the monitored GHG emission reduction. •Certification is the written assurance by a DOE that a project activity achieved the reductions in GHG emissions as verified.

lack of know-how.ADDITIONALITY TEST • Revenue from the carbon offsets must be a primary driver for project implementationavailability of a financially more viable alternative that would have led to higher emissions •Local resistance. institutional or technological barrier -existence of a less technologically advanced alternative involving lower risks in terms of performance or market share and at the same time leading to higher emissions •Employ technology that is not very commonly used-prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions CDM concept additionality Project participants have to demonstrate to a validator that the project activity would otherwise not be implemented due to the existence of one or more barriers in order to prove that it is additional to what would have occurred in the absence of the CDM A TOOL IS AVAILABLE TO HELP! .

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which would yield a risk of awarding spurious credits. . Independent third party verification is meant to ameliorate this potential problem. depends on the emissions that would have occurred without the project. The baseline may be estimated through reference to emissions from similar activities and technologies in the same country or other countries. The partners involved in the project could have an interest in establishing a baseline with high emissions.Clean Development Mechanism Baseline Establishing a baseline – The amount of emission reduction. The construction of such a hypothetical scenario is known as the baseline of the project. or to actual emissions prior to project implementation. obviously.

BM is the average emission of the 20% (by net generation) most recent capacity addition in the grid.60 0.Co2 database Table S-1: Weighted average emission factor.80 0.72 0.99 1.81 Average is the average emission of all stations in the grid.85 0. weighted by net generation. build margin (BM) and combined margin (CM) of all grids for FY 2007-08 (inter-Grid and cross-border electricity transfers included).79 1.63 0. in tCO2/MWh Grid Average OM BM CM NEWNE Southern India 0. OM is the average emission from all stations excluding the low cost/must run sources(only thermal excludes hydro and nuclear).81 0.941 tCO2/MWh for the year 2007-08 in accordance with CDM Executive Board approved methodology ACM0013.82 tCO2/MWh as of 2009 . simple operating margin (OM). The baseline emission factor which is to be used for calculating CDM Benefits by the supercritical technology based power projects has also been calculated by Central Electricity Authority as 0.00 0. The National average has hence been revised to 0.71 0.00 0. CM is a weighted average of the OM and BM (here weighted 50 : 50).

It is based on the most recent data available with the Central Electricity Authority. This baseline emission factor can be derived from the data provided in the CO2 Database. The baseline emission factor reflects the carbon intensity of the displaced amount of grid electricity. Emission reductions from CDM projects in the power sector are calculated based on the net electricity generated by the project.What is the Co2 database?? The database is an official publication of the Government of India for the purpose of CDM baselines. and the difference between the emission factors (in tCO2/MWh) of the baseline and the project activity. .

Classwork Project Profile Calculation of Carbon Credits from a typical energy efficiency project in a fertilizer unit in Karnataka state .

reducing the consumption of fossil fuel in the power generation in grid. Title of the small-scale project activity: Energy efficiency measures at Fertilizer unit of XYZ factory in Karnataka A. Hence.2. thus. at all possible consumption points in the chemical process units at XYZ faxtory.Project Profile SECTION A. Reduced consumption of energy will lead to displacing equivalent amount of energy. The projects can be broadly categorized as: 1. Efficient Motor related Initiatives 4. General description of the small-scale project activity A. A Total of seven initiatives have been considered under the scope of this CDM project.1. Lighting related initiatives 2. Other energy efficiency related initiatives . Description of the small-scale project activity: Purpose of the project activity: The main purpose of the project is to carryout energy efficiency measures. reducing the GHG emissions due to the burning of fossil fuel. so as to reduce electricity consumption. Variable Frequency Drives 3.

72 tco2/mwh Baseline Ener gy Cons umpti on Projected energ y Cons umpti on Hours of Oper ation Per year Ref No Project Measure Difference in Energ y Savings Savings Emission factor Emission (Kwh) P (Kwh) Q (kwh) R=P-Q hrs S (kwh)/year T=R*S (mwh)/yr U=T/1000 tCO2/Mwhr V tCO2/year W=U*V CDM1A Replacement of 125 watt HPMV lamps by 70 watt metal halide lamps 125 70 4380 CDM1B Replacement 250 watt HPMV lamps by 150 watt metal halide lamps: 250 150 4380 CDM2 Replacement of 40 watt T10/T8 tube lights by 28 watt T5 tube lights: 40 28 4380 CDM3 Installation of power saving device for centralized lighting DB at different units: 100 75 4380 .Class Work Assume emission factor 0.

Weighted Emission Fact or : C. Emissions tCO 2/ye ar (C=A*B) : .CDM4 Installation of variable frequency drive: Replacement of EFF 3 motors with EFF 1: Replacement of higher capacity (150 kw) motors by optimum capacity motor (100 Kw): 500 430 7200 CDM5 1000 700 6700 CDM6 150 100 6200 CDM7 Reduction in power consumption by replacing the existing aluminium blades in cooling tower fan by FRP blades 100 95 5600 Total A. Savi ngs (Mwh/Year ) : B.

8432 CDM3 Installation of power saving device for centralized lighting DB at different units: 100 75 25 4380 109500 109.72 37.Solution Baseline Ene rgy Con sum ptio n Projected ener gy Con sum ptio n Difference in Ener gy Hours of Ope ratio n Per year Emission fact or Ref No Project Measure Savings Savings Emission (Kwh) P (Kwh) Q (kwh) R=P-Q hrs S (kwh)/year T=R*S (mwh)/yr U=T/1000 tCO2/Mwhr V tCO2/year W=U*V CDM1A Replacement of 125 watt HPMV lamps by 70 watt metal halide lamps 125 70 55 4380 240900 240.9 0.448 CDM1B Replacement 250 watt HPMV lamps by 150 watt metal halide lamps: 250 150 100 4380 438000 438 0.72 173.72 78.5 0.84 .56 0.36 CDM2 Replacement of 40 watt T10/T8 tube lights by 28 watt T5 tube lights: 40 28 12 4380 52560 52.72 315.

Emissions tCO 2/ye ar (C=A*B) : 2658.2 CDM6 150 100 50 6200 310000 310 0.72 20.16 Total A.9312 .88 CDM5 1000 700 300 6700 2010000 2010 0.72 1447.72 362.2 CDM7 100 95 5 5600 28000 28 0. Savi ngs (Mwh/Year ) : 3692.72 C.CDM4 Installation of variable frequency drive: Replacement of EFF 3 motors with EFF 1: Replacement of higher capacity (150 kw) motors by optimum capacity motor (100 Kw): Reduction in power consumption by replacing the existing aluminium blades in cooling tower fan by FRP blades 500 430 70 7200 504000 504 0.96 B. Weighted Emission Fact or : 0.72 223.

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