CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD) Version 01 CONTENTS

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD) Version 01 CONTENTS A. General description of CDM programme activity (CPA) B. Eligibility of CPA and Estimation of Emission Reductions C. Environmental Analysis D. Stakeholder comments Annexes Annex 1: Contact information on entity/individual responsible for the CPA Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan NOTE: (i) This form is for submission of CPAs that apply a small scale approved methodology using the provision of the proposed small scale CDM PoA. (ii) The coordinating/managing entity shall prepare a CDM Small Scale Programme Activity Design Document (CDM-SSC-CPA-DD) 1,2 that is specified to the proposed PoA by using the provisions stated in the SSC PoA DD. At the time of requesting registration the SSC PoA DD must be accompanied by a CDM-SSC CPA-DD form that has been specified for the proposed SSC PoA, as well as by one completed CDM-SSC CPA-DD (using a real case). After the first CPA, every CPA that is added over time to the SSC PoA must submit a completed CDM-SSC CPA-DD. 1 The latest version of the template form CDM-CPA-DD is available on the UNFCCC CDM web site in the reference/document section. 2 At the time of requesting validation/registration, the coordinating managing entity is required to submit a completed CDM-POA-DD, the PoA specific CDM-CPA-DD, as well as one of such CDM-CPA-DD completed (using a real case). 1

2 CDM Executive Board page 2 SECTION A. General description of small scale CDM programme activity (CPA) A.1. Title of the small-scale CPA: Installation of Solar Home Systems in Bangladesh Version: 02 Date: 06/11/2007 A.2. Description of the small-scale CPA: >> The proposed project activity (CPA) is a bundle of Solar Home Systems (SHS), with capacities of 5 200Wp, to be installed across Bangladesh, for users that are not connected to the electricity grid. The proposed CPA is a voluntary initiative taken by the participating organization (PO). The participating organization has developed a strategy for providing electricity to households in off-grid, remote and rural areas through SHS. These households have no access to the grid-connected electricity and would either use kerosene or purchase diesel generators for electricity in their houses in the absence of the project activity. The PO has created a financing model, that takes into account carbon financing, in order to reach the poorer households, who cannot afford SHS. It involves: Soft credit through instalments to makes SHS affordable, Intense grassroots promotion through demonstrations, fairs, meetings at the local level etc, Community involvement and social acceptance of SHS, Free operation & maintenance services for three years after installation; and after this period, service on payment of minimal charges The proposed CPA will replace the kerosene consumption for household lighting purpose, and thus reduce greenhouse gas (GHG) emissions from burning fossil fuels. The CPA will generate an estimated annual amount of emission reduction during a certain crediting period. The proposed CPA will facilitate the economy development in the rural areas of Bangladesh. The following points summarise how the project activity contributes to the sustainable development in rural Bangladesh: The introduction of SHS will have a positive impact on the rural economy of Bangladesh, which will reduce its dependency on imported fossil fuels such as kerosene and diesel; New business and job opportunities related to operation and maintenance of SHS will be created. For example, the PO trained local technicians can provide maintenance and repairing services to the SHS users. The increase in reliability of electricity supply will promote the development of microenterprises. The improved lighting quality from SHS will enable longer working hours, and support higher income-generation. Tailoring businesses, convenience stores, cafés and restaurants can serve more clients by running longer-hour business. New income opportunities, such as mobile phone-charging services and renting time on mobile phones, will also be generated. This, 2

3 CDM Executive Board page 3 in turn, will have a positive impact on the socio-economic aspect. SHS users will have better home and work environments. Since SHS will replace the conventional soot-producing lamps, it will significantly reduce the indoor air pollution thus redusing the incidence of respiratory diseases and eye ailments etc; thus, health-care expenditure will also come down. A.3. Entity/individual responsible for the small-scale CPA: The coordinating agency of the proposed CPA is Grameen Shakti. A.4. Technical description of the small-scale CPA: Description of Technology/Measure: The proposed SHS will comprise of: (a) Solar Module (b) Battery (c) Charge controller, (d) Fluorescent tube lights with special electronic ballasts, (e) Mounting structure, (f) Installation kits, and (g) Cables and connecting devices. SHSs with different capacities are available for consumers depending on the consumption purpose. SHS less than and equal to 40Wp can only be used for lighting purpose. SHS above 40Wp can be used for operating other electrical appliances like TV, motor, fan etc. Therefore, it has been assumed that households using kerosene for lighting purpose will opt for SHS with 30Wp and 40Wp capacity while others will opt for SHS with 65Wp capacity. This assumption is based on the various research papers and publications 3,4. A.4.1. Identification of the small-scale CPA: Installation of Solar Home Systems in Bangladesh 3 Guidebook on Promotion of Sustainable Energy Consumption, Point 1.1.4, 4 Fuel switching: evidence from eight developing countries, Rasmus Heltberg, Energy Economics 26 (2004)

4 CDM Executive Board page 4 >>Bangladesh A Host Party: A Geographic reference or other means of identification allowing the unique identification of the small-scale CPA: Grameen Shakti is responsible for providing the mobile CPA s means in the CPA. A.4.2. Duration of the small-scale CPA: >>01/01/2007 >>25 years A Starting date of the small-scale CPA: A Expected operational lifetime of the small-scale CPA: Renewable crediting period A.4.3. Choice of the crediting period and related information: A Starting date of the crediting period: >> Date of registration renewable CP: >>7 years A Length of the crediting period, first crediting period if the choice is >> A.4.4. Estimated amount of emission reductions over the chosen crediting period: Year number of SHS installed (<= 40 Wp) kerosene consumptio n (kilo l/year) ER (tco2/year) 4

5 CDM Executive Board page Total amount of ER (tco2) number of years average number of ER (tco2/year) Table A.: ERs from kerosene replacement SHS installed (>40 Wp) Year Total ER (tco2) years average/yr Table B.: ERs from diesel replacement number of SHS installed (>40 Wp) ER (tco2/year) The solar home systems will either replace the use of kerosene lamps (SHS <= 40 Wp) or the use of diesel generators (SHS > 40 Wp). Depending on the capacity of the SHS implemented under the proposed CPA either table A. or table B. is going to be used and completed. A.4.5. Public funding of the CPA: >> There is no public funding for this project activity. A.4.6. Information to confirm that the proposed small-scale CPA is not a de-bundled component >> 1. For the purposes of registration of a Programme of Activities (PoA) 5 a proposed small-scale CPA of a PoA shall be deemed to be a de-bundled component of a large scale activity if there is already an activity 6, which: (a) Has the same activity implementer as the proposed small scale CPA or has a coordinating or managing entity, which also manages a large scale PoA of the same sectoral scope, and; 5 Only those POAs need to be considered in determining de-bundling that are: (i) in the same geographical area; and (ii) use the same methodology; as the POA to which proposed CPA is being added 6 Which may be a (i) registered small-scale CPA of a PoA, (ii) an application to register another small-scale CPA of a PoA or (iii) another registered CDM project activity 5

6 CDM Executive Board page 6 (b) The boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point. 2. If a proposed small-scale CPA of a PoA is deemed to be a debundled component in accordance with paragraph 2 above, but the total size of such a CPA combined with a registered small-scale CPA of a PoA or a registered CDM project activity does not exceed the limits for small-scale CDM and small-scale A/R project activities as set out in Annex II of the decision 4/CMP.1 and 5/CMP.1 respectively, the CPA of a PoA can qualify to use simplified modalities and procedures for small-scale CDM and small-scale A/R CDM project activities. A.4.7. Confirmation that small-scale CPA is neither registered as an individual CDM project activity or is part of another Registered PoA: >>This small-scale project activity must be neither registered as an individual CDM project activity nor part of another registered PoA. SECTION B. Eligibility of small-scale CPA and Estimation of emissions reductions B.1. Title and reference of the Registered PoA to which small-scale CPA is added: >> Installation of Solar Home Systems in Bangladesh B.2. Justification of why the small-scale CPA is eligible to be included in the Registered PoA : >> - The proposed CPA should have access to financing channels of the ICDOL s Solar Energy Program; - The proposed CPA must be within the country of Bangladesh, - The selected end-users of the proposed CPA must be the households in the rural areas that are not connected to the national/regional power grid Year Number of SHS Capacity installed (Wp) total capacity Total capacity installed (MW) B.3. Assessment and demonstration of additionality of the small-scale CPA, as per eligibility criteria listed in the Registered PoA: Future SSC CPAs should demonstrate additionality based on the following criteria: 6

7 CDM Executive Board page 7 - Flexibility or innovativeness of financial mechanisms being used in order to expand the reach and implementation of the solar home system program; - The use of CDM revenues will be used to subsidize the cost of equipment maintenance. The above two criteria shall be applied in the following way: - An explanation of the financing mechanisms available to households and the role of the CDM, and - Demonstration that CDM revenues (whole or in part) play a role in helping to expand the program. B.4. Description of the sources and gases included in the project boundary and proof that the small-scale CPA is located within the geographical boundary of the registered PoA. >> The project reduces CO2 emissions by replacing the diesel consumption for electricity generation and the use of kerosene lamps for lighting. B.5. Emission reductions: B.5.1. Data and parameters that are available at validation: >>(Copy this table for each data and parameter) Data / Parameter: EF 1 Data unit: tco 2 e/kl Description: Emission factor for kerosene fuel Source of data used: IPCC default values Value applied: 2.41 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: IPCC values have been used for kerosene since no country specific data is available. Data / Parameter: EF 2 Data unit: Kg CO 2 e/ kwh Description: Emission factor for Diesel Generators Source of data used: AMS I A Value applied: 0.8 Justification of the The data has been taken according to the methodology AMS I.A methodology choice of data or which states that a default value 0.8 KgCO2e/kWh which is derived from diesel description of generation units, may be used for option 7(a) and 7(b). Considering that there measurement methods would be large variation in the capacities of DG set to be used by the household and procedures actually in the baseline scenario, the most conservative default value of the emission applied : factor is used for calculation as specified in the methodology Any comment: 7

8 CDM Executive Board page 8 Data / Parameter: FC Data unit: Liters/annum Description: Annual fuel (kerosene) consumption Source of data used: Grameen Shakti Value applied: Justification of the The data has been taken from the historical consumption data provided by choice of data or Grameen Shakti as per clause 9 of AMS I.A. description of measurement methods and procedures actually applied : Any comment: B.5.2. Ex-ante calculation of emission reductions: >> Ex-ante emission reduction calculations are based on baseline scenario which is continuous usage of kerosene and diesel fuel fired generators for lighting and electricity purposes respectively. Reduction of CO 2 emissions by displacement of business as usual kerosene usage for lighting purposes and off-grid electricity generation using Diesel generators with renewable solar electricity are estimated as per CDM small scale methodology for type I Renewable energy projects and as per category I.A Electricity Generation by the User version 12. Baseline calculation is based on the assumption that SHS under (less than and equal to) 40 Wp replace kerosene usage for lighting purposes, and SHS with a capacity of above 40 Wp replace electricity generated by the diesel generators. Table 3: Baseline emissions calculation from kerosene Average household consumption of kerosene for lighting = 500 milliliters/day (Source: GS) Emission Factor for kerosene = 2.41 tco2e/kiloliters(kl) (Source: IPCC) Year number of SHS installed kerosene consumption (kilo l/year) ER (tco2/year) Table 4: Baseline emission calculation from diesel generators 8

9 CDM Executive Board page 9 EF default values for Diesel Generators (Source: AMS I.A.) = 0.8 Kg CO2e/kWh Distribution Losses (Source: AMS I.A.) = 20% Average capacity installed in that year (Wp) Number of kits installed in that year Capacity installed in that year (Wp) Average Capacity (kwh/yr) Baseline Emission (kgco2e/yr) Baseline Emission (tco2e/yr) cummulative ER (tco2) The proposed CPA is expected to reduce greenhouse gas emissions by a certain amount of tco 2 e during the crediting period. Year Total number of SHS installed SHS installed SHS <= 40Wp Total ER (tco2) ER from kerosene replacement (tco2) SHS > 40 Wp ER from diesel replacement (tco2) ER per year 9

10 CDM Executive Board page 10 B.5.3. Summary of the ex-ante estimation of emission reductions: >> Year Total (tonnes of CO 2 e) Estimation of project activity emissions (tonnes of CO 2 e) Estimation of baseline emissions (tonnes of CO 2 e) Estimation of leakage (tonnes of CO 2 e) Estimation of overall emission reductions (tonnes of CO 2 e) B.6. Application of the monitoring methodology and description of the monitoring plan: B.6.1. Description of the monitoring plan: >> The monitoring methodology as defined in Appendix B for the category AMS I.A. Electricity generation by the user version 12 has been applied in this PDD. This methodology consists of: (a) An annual check of all systems or a sample thereof to ensure that they are still operating (other evidence of continuing operation, such as on-going rental/lease payments could be a substitute). Ongoing loan repayment will be documented and provide evidence for continuing operation of the SHS. The monitoring plan and procedures will be as follows: 1. Follow up of the installation of SHS A monthly installation program Database of installations on a daily basis Monthly report on the completed installations 2. Follow up of the number of operational SHS. No. of operational SHS reported by 0&M team in the unit offices and stored in central database at the GS head office. The number of total SHS consists of house hold that did 100 % down payment and house holds that received a loan. Loan repayment details and status of recovery of loan from individual households 10

11 CDM Executive Board page 11 Monthly report on operational SHS C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken: This information is provided at the PoA level. C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts: N/A. Please refer to section C.2. in the PoA-DD. C.3. Please state whether an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA), in accordance with the host Party laws/regulations: N/A. Please refer to section C.3. in the PoA-DD. SECTION D. Stakeholders comments >> D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice: This information is provided at the PoA level. D.2. Brief description how comments by local stakeholders have been invited and compiled: N/A D.3. N/A D.4. N/A Summary of the comments received: Report on how due account was taken of any comments received: 11

12 CDM Executive Board page 12 Annex 1 CONTACT INFORMATION ON ENTITY/INDIVIDUAL RESPONSIBLE FOR THE SMALL- SCALE CPA Organization: Grameen Shakti Street/P.O.Box: Mirpur-2 Building: Grameen Bank Bhaban City: Dhaka State/Region: Dhaka Postfix/ZIP: 1216 Country: Bangladesh Telephone: FAX: g_shakti@grameen.net URL: Represented by: Represented by: Title: Managing Director Salutation: Mr. Last Name: Barua Middle Name: C First Name: Dipal Department: Mobile: Direct FAX: Direct tel: Personal Organization: The International Bank for Reconstruction and Development (IBRD) as trustee of Community Development Carbon Fund Street/P.O.Box: 1818H St City: Washington, DC State/Region: District of Columbia Postfix/ZIP: Country: USA Telephone: FAX: IBRD-carbonfinance@worldbank.org URL: Represented by: Ms. Joelle Chassard Title: Manager Salutation: Ms. Last Name: Joelle Middle Name: 12

13 CDM Executive Board page 13 First Name: Chassard Department: Environment Department Mobile: Direct FAX: Direct tel: Personal Annex 2 INFORMATION REGARDING PUBLIC FUNDING Not applicable 13

14 CDM Executive Board page 14 Annex 3 BASELINE INFORMATION Baseline is assumed as replacement of electricity generation from Diesel generators for. Assumptions on which the calculations are made: duration of sunlight: time of operation: 7 hours per day 340 hours per year This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

15 CDM Executive Board page 15 Annex 4 MONITORING INFORMATION Please refer to the monitoring plan in the specific CPA-DD Abbreviation: Annex 5 CDM CDCF CER CO2 EIA GHG GDP GM DGM GS GTC IMF IDCOL IEE IPCC kwh MWh NGO PDD PV SHS SSC UNFCCC Wp Clean Development Mechanism Community Development Carbon Fund Certified Emission Reduction Carbon dioxide Environmental Impact Assessment Green House Gases Gross Domestic Product General Manager Deputy General Manager Grameen Shakti Grameen Technology Centers International Monetary Fund Infrastructure Development Company Limited Initial Environmental Examination Inter Governmental Panel on Climate Change Kilo watt hour Mega watt hour Non Government Organization Project Design Document Photovoltaic Solar Home System Small-scale CDM United Nations Framework Convention on Climate Change Peak watt This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

16 CDM Executive Board page 16 Annex 6 Reference 1) Annex 7 : Appendix C1 of the Simplified Modalities and Procedures for Small-Scale CDM project activities 2) Approved Small Scale CDM Methodologies 3) Guidebook on Promotion of Sustainable Energy Consumption, Point 1.1.4, 4) Fuel switching: evidence from eight developing countries, Rasmus Heltberg, Energy Economics 26 (2004) ) Bangladesh Stats Database 6) Grameen Shakti: An Integrated Approach to Rural Energy Service, Dipal C. Barua 7) GNI per capita, Atlas method (current US$): in 2006, 8) Country Analysis Brief by Energy Information Administration, This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.