MOEJ/GEC JCM Feasibility Study (FS) 2013 Final Report Solar-Diesel hybrid system to stabilize solar power generation (implemented by Mizuho Bank, Ltd.) Study partners Project site Category of project Description of project JCM Eligibility methodology criteria Hitachi Zosen Corporation PT PLN (Persero) Mogok Image Construction Myanmar (Mogok City) and Indonesia (Nias Island) Renewable Energy and Energy Efficiency 1 Type of the project 1-1 Components of the system 1-2Destination of the power supply 2 Technological 2-1 Temperature coefficient of criteria to maximize PV panel the potential of solar 2-2 Operation load of diesel energy engine 2-3 Usage of battery 3 Technological 3-1 Functions of hybrid criteria to provide system controller high-quality base load power 4 Maintenance 4-1 Maintenance contract criteria to secure the performance within the endurance period Default values - CO2 emissions factor of electricity in year y [tco2/mwh] - Net Calorific Value of the diesel oil used for diesel engine [GJ/t] - Emission Factor of the diesel oil used for diesel engine [tco2/gj] - Net Calorific Value of fossil fuel i [GJ/mass or volume unit] - Emission Factors of the fossil fuels used for power stations connected grid in year y [tco2/gj] Calculation of CO2 emissions are calculated as a result of combustion
reference emissions Monitoring method of fossil fuels in power stations connected to the grid along with the reference scenario. Quantity of electricity generation fed to the grid by the project (MWh/y) : monthly Quantity of diesel fuel consumption by the project: monthly (t/y) : monthly GHG emission reductions Environmental impacts Project plan Calculation of reference emission: by measuring of combustion of fossil fuels in power stations connected to the grid along with the reference scenario (multiplied by the emission factor (default value or national grid). Calculation of project emission: by measuring of combustion of diesel oil in the diesel engine that is a component of the hybrid system and total generation of electricity by the component of the hybrid system. Estimated emission reductions: [Indonesia] 2,112 tco2/y [Myanmar] 3,502 tco2/y No environmental impacts. [Indonesia] In the proposed project, we plan to install a PV/Diesel Engine Hybrid System that has capacity of 1 MW (PV) and 1.5 MW (Diesel Engine). It will replace an island-grid-connected power in the Nias Island, which will be generated by diesel engines. Initial cost is planned to be invested by PLN in 50% and Japanese grant 50%. [Myanmar] In the proposed project, we plan to install a PV/Diesel Engine Hybrid System that has capacity of 2 MW (PV) and 4.5 MW (1.5 x 3 Diesel Engines). It will replace a micro-grid-connected power of the Mogok City, which will be generated by diesel engines, additionally. Initial cost is planned to be invested by MIC in 25%, SSG/PWH in 25% and Japanese grant 50%. Promotion of Japanese technologies Sustainable development in host country Solar-Diesel Hybrid system is Japanese own technology that can stabilize solar power generation output. Installment of this hybrid system can cause the reduction of fuel consumption by solar electricity generation and
improvement of new diesel engine s fuel efficiency, this could contribute for the sustainable development in the host countries.
JCM Feasibility Study (FS) 2013 Introduce Hybrid System to Stabilize PV Power Generation in Myanmar and Indonesia (Host country: Myanmar and Indonesia) Study Entity: Mizuho Bank, Ltd. 1.Study Implementation Scheme By introducing the PV/Diesel Engine Hybrid System to the isolated island grid area in Indonesia and isolated micro grid area in Myanmar, we target the reduction of CO2 emissions in those countries. The PV/Diesel Engine Hybrid System is a system that combines solar power generation and diesel engine power generation. Although the solar power system can reduce CO2 emissions drastically, its power generation fluctuates in proportion to solar irradiation. On the other hand, diesel engine power generation has the advantage of continuous power output. By combining a diesel engine with solar power, utilizing IT technology (software) and inverter, the power output can be levelized and stabilized with minimum usage of expensive batteries. 2.Overview of Proposed JCM Project (1) Description of Project Contents: [Indonesia] In the proposed project, we plan to install a PV/Diesel Engine Hybrid System that has 1MW capacity PV and 1.5 MW capacity diesel in Nias Island, Indonesia. It will replace the island-grid-connected power in the Nias Island, which will be generated by diesel engines. The annual CO2 reduction will be approx. 2.1 kt-co2. [Myanmar] In the proposed project, we plan to install a PV/Diesel Engine Hybrid System that has 2MW capacity PV and 4.5 MW capacity diesel (Final target is 20MW) in Mogok City, Mandalay Region. It will replace the micro-grid-connected power (almost the same with off-grid supplied directly to the customers), which will be generated mainly by diesel engines in the future. The annual CO2 reduction will be approx. 3.5 kt-co2. (2) Situations of Host Country: Stabilized electricity is indispensable for the small-scale grid and off-grid, because fluctuation of electricity supply effects them significantly, which means that the system is suitable both for the remoted area (Myanmar) and many islands (Indonesia). In both countries, electricity supply system that does not depend on the large-scale grid is anticipated. <1>
Small amount of renewables Large-scale grid Large amount of renewables Small-scale grid or Off-grid Myanmar Limited central area Remoted area where Electricity Supply is not enough Indonesia Large islands Many medium-small islands Suitable for the Hybrid System Targets for the hybrid system By the standardization of applying the hybrid system in remote areas or medium-small islands, both countries can avoid the introduction of inefficient systems regarding CO2 and energy, which will contribute to the Leapfrog development. That is, BAT (best available technology) transfer, development of electricity supply system that does not depend on the large national grids, reduction of energy consumption and reduction of CO2 emissions can be achieved for the sustainable development. National Electricity Grid Micro Grid of Remote Area (1) Sea Isolated Grid of Remote Island Power Generator Supply Remote Island Power Generator National Electricity Grid Micro Grid of Remote Area (2) Isolated Grid of Remote Island Micro Grid of Remote Area Two types of grid eligible in the methodology 3. Study Contents (1) JCM methodology development a. Eligibility criteria 1-1 Type of the project Components of the system Hybrid system is to be composed both with (1) solar power generating system and (2) diesel engine power generating system. 1-2 Destination Generated electricity is to be supplied either to <2>
2-1 Technologica l criteria to maximize the potential of the power supply 2-2 of solar Operation energy Temperature coefficient of PV panel load of diesel engine 2-3 Usage of 3-1 Technologica l criteria to provide high-quality base load power 4-1 Maintenanc e criteria to secure the performanc e within the endurance period battery Functions of hybrid system controller Maintenanc e contract JCM Feasibility Study (FS) 2013 Final Report (1) isolated grid of remote island or (2) micro grid of remote area. PV panel used in the hybrid system is suitable for the usage in tropical region, which has the temperature coefficient less than or equal to 0.35 % / degree. Low-load continuous operation is possible by the diesel engine used in the hybrid system, without any restriction against continuous operation. Battery for stabilizing the power output of the hybrid system is not used, or; Battery for stabilizing the power output of the hybrid system has the C-rate more than or equal to 60 and estimated lifetime of more than or equal to 10 years. For the purpose of generating stabilized electricity, a hybrid system controller has all of the following functions: - Calculating the required electricity to be generated by diesel engine; - Calculating the required flow rate of diesel oil charged into diesel engine; - Maintaining aperture of fuel control valve for supplying required flow rate of diesel oil. Manufacturer or vender of the hybrid system makes maintenance contract with user, which includes responses to malfunction and parts supply during useful time designated by the law in the host country. b. Data and parameters fixed ex ante Parameter Description of data Source EFy CO2 emissions factor of electricity in year y [tco2/mwh] (1-a) and (1-b): CDM-EB Approved small-scale CDM methodology AMS-I.D. (up to ver.15) (2-a), (2-b) and (2-c): <3>
Parameter Description of data Source CDM-EB Guidelines on the consideration of suppressed demand in CDM methodologies (version 02.0) NCVDO,y EFDO,y NCVi,y EFCO2,i,y Net Calorific Value of the diesel oil used for diesel engine [GJ/t] Emission Factor of the diesel oil used for diesel engine [tco2/gj] Net Calorific Value of fossil fuel i [GJ/mass or volume unit] Emission Factors of the fossil fuels used for power stations connected grid in year y [tco2/gj] IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy c. Calculation of GHG emissions (including reference and project emissions) Grid emission factor is to be decided as follows: (1) Isolated grid of remote island (Indonesia) Types of fuels used in the power generators connected to the isolated grid of remote island Only liquid fuels Includes non-liquid fuels (a) Default value (0.80) (b) Weighted average emission factor of the current generation mix. Figure 1 Decision Flowchart of Emission Factor for Isolated Grid of Remote Island (1-a) All power plants/units are using liquid fuels (fuel oil or diesel oil): The project developer can calculate CO2 emissions factor (EF) in year y for the connected grid by using constant emission factors for displaced power stations [default value: 0.8 tco2/mwh]. (1-b) Any power plants/units are using fossil fuels except for liquid fuels: The project developer can calculate CO2 emissions factor (EF) in year y for the connected grid by calculating the weighted average emission factor of the current generation mix. (2) Micro grid of remote area (Myanmar) <4>
Isolated grid of remote area is connected to the National electricity grid Y Plan of future additional electricity supply from the National electricity grid to isolated grid of remote area Y (all demand) (a) Emission factor of the National electricity grid Y (part of demand) (b) Weighted average emission factor of (a) and (c) N N (c) Emission factor of the power generation mix planned in the future Figure 2 Decision Flowchart of Emission Factor for Micro Grid of Remote Area (2-a) All of additional demand of the micro grid of remote area is planned to be supplied by the National electricity grid: The project developer can calculate Combined Margin (CM) as CO2 emissions factor (EF) in year y for the National electricity grid by using Tool to calculate the emission factor for an electricity system of CDM. (2-b) Part of additional demand of the micro grid of remote area is planned to be supplied by the National electricity grid: The project developer can calculate CO2 emissions factor (EF) in year y by calculating the weighted average emission factor of (a) and (c). (2-c) None of additional demand of the micro grid of remote area is planned to be supplied by the National electricity grid: The project developer can calculate CO2 emissions factor (EF) by the power generation mix planned in the future (plausible and feasible in the short term), which is regarded as policies and measures to satisfy the suppressed demand. Reference emissions is calculated as follows: REy = EGPJ,y * EFy REy Reference CO2 emissions in year y [tco2/y] EGPJ,y Quantity of net electricity generation using the hybrid system that is produced and fed to the isolated grid of remote island or to the micro grid of remote area as a result of the implementation of the project activity in year y [MWh/y] EFy CO2 emissions factor of electricity in year y [tco2/mwh] In case of (1-b) or (2-c): FC NCV EF EF y = i i,y EG y i,y CO2,i,y <5>
EF y CO2 emissions factor of electricity in year y [tco2/mwh] FC i,y Quantity of consumed fossil fuel in year y [mass or volume unit] (1-b) Any power plants/units are using fossil fuels except for liquid fuels (isolated grid of remote island): Fossil fuel consumptions in all power generators connected to the isolated grid of remote island (2-c) None of additional demand of the micro grid of remote area is planned to be supplied by the National electricity grid (micro grid of remote area): Fossil fuel consumptions for generating additional power supplied to the micro grid of remote area NCV i,y Net Calorific Value of fossil fuel i [GJ/mass or volume unit] EF CO2,i,y Emission Factor of fossil fuel i [tco2/gj] EGy Quantity of net electricity generation that is produced and fed to the grid of remote island/area in year y [MWh/y] Project emissions is calculated as follows: PEy = PDOy * NCVDO,y * EFDO, y PEy Project CO2 emissions in year y [tco2/y] PDOy Quantity of consumed diesel oil for diesel engine in year y [t/y] (Note: bio-diesel is not incorporated) NCVDO,y Net Calorific Value of the diesel oil used for diesel engine [GJ/t] EFDO,y Emission Factor of the diesel oil used for diesel engine [tco2/gj] Emissions reductions is calculated as follows: ERy = REy PEy ERy CO2 reduction in year y [tco2/y] REy Reference CO2 emissions in year y [tco2/y] PEy Project CO2 emissions in year y [tco2/y] So as to confirm the contribution by (1) solar power generating system and (2) diesel engine power generating system, emission reductions each by (1) and (2) are calculated as follows: ERy, 1 = EGPJ,y EFy ERy, 1 EGPJ,y, 1 CO2 reduction in year y (by solar power generating system) [tco2/y] Quantity of net electricity generation using the hybrid system that is produced and fed to the isolated grid of remote island or to the micro grid of remote area as a result of the implementation of the project activity in year y (by solar power generating system) [MWh/y] <6>
EFy CO2 emissions factor of electricity in year y [tco2/mwh] (the same with reference scenario) ERy, 2 = ERy ERy, 1 ERy, 2 ERy ERy, 1 CO2 reduction in year y (by diesel engine power generating system) [tco2/y] CO2 reduction in year y [tco2/y] CO2 reduction in year y (by solar power generating system) [tco2/y] Therefore, CO2 emissions factor of electricity in year y for the power generation using diesel engine under the project (EFy, 2) can be compared with that under the reference scenario (EFy): EFy, 2 = PDOy 0.86 [t/kl] EGDJ,y[MWh] 2.71 [t-co2/kl] EFy, 2 PDOy : EGPJ,y, 2 CO2 emissions factor of electricity in year y (by diesel engine power generating system) [tco2/mwh] Quantity of consumed diesel oil for diesel engine in year y [t/y] Quantity of net electricity generation using the hybrid system that is produced and fed to the isolated grid of remote island or to the micro grid of remote area as a result of the implementation of the project activity in year y (by diesel engine power generating system) [MWh/y] Generated Electricity PV CO 2 Emissions (1) (2) Diesel Engine Reference Project Reference Project Emissions Reductions (1) solar power generating system; (2) diesel engine power generating system (2) Development of JCM Project Design Document (PDD) Development of JCM PDD for Indonesia and Myanmar projects are developed by Mizuho Bank. (3) Project development and implementation a. Project planning <7>
Project planning is made by Hitachi Zosen Corporation through the hearing of PLN (Indonesia) and Mogok Image Construction (Myanmar). b. MRV structure Counterpart in the host countries (Indonesia: PLN, Myanmar: Mogok Image Construction) are planned to operate the installed hybrid system and also take roll of monitoring. Emissions sources of the reference scenario are - Diesel engine generators connected to the island-grid of the Nias Island Emission sources of the project activity are: - Diesel engine generators as the component of the hybrid system Monitoring points are: - Quantity of consumed diesel oil for diesel engine - Quantity of net electricity generation using the hybrid system that is produced and fed to the grid (A) - Quantity of electricity generation using the PV system (B, D and E) - Quantity of electricity generation using the diesel engine (C) Quantity of electricity in the point of A, B, C, D and E are monitored continuously using the system SCADA (Supervisory Control And Data Acquisition). c. Permission and authorization for the project implementation [Indonesia] Since PLN will be the project operating entity, obtaining of electricity producer license, conclusion of PPA or other such permissions are not required. [Myanmar] Mogok Image Construction, the project operating entity in Myanmar, had obtaining the right to promote the contribution business in the Mogok area by conclusion of contract with National Electricity Council. <8>
d. Japan s contribution - The Japanese side provides the technology of the hybrid system and its related facilities (PV panel and operating software). - Concerning electricity generation on isolated islands, both the amount of diesel fuel can be reduced and solar power can be introduced as much as possible. - Currently voltage and frequency are already unstable, making the integration of solar into the island grid challenging. By combining a diesel engine, short-term storage and solar power in a power plant, utilizing an inverter and a hybrid system controller, the total power output can be stabilized and supplied to the island grid. e. Environmental integrity [Indonesia] Since its reference scenario is based on electricity generation by combustion of fossil fuel (diesel oil or coal), installment of this hybrid system can cause the reduction of fuel consumption by solar electricity generation and improvement of new diesel engine s fuel efficiency without environmental impacts. [Myanmar] Under suppressed demand, assumed additional electricity generators in the project area are diesel system. Installment of this hybrid system can cause the reduction of fuel consumption by solar electricity generation. f. Sustainable development in host country This technology can contribute to the sustainable development in the host countries in the fields as below; - Enhancement of supply capacity of electricity; Both Nias Island in Indonesia and Mogok City in Myanmar, the project sites are low electrified area currently so this project will contribute to enhancement of electrification with high efficiency in those countries. - Promotion of other industries; Mining of gemstone is the main industry of Mogok City in Myanmar and this enhancement of electricity supply capacity will increase the capacity of primary processing such as cutting. - Employment creation; By the constructions and operation of generation equipment, economic benefit will be g. Toward project realisation (planned schedule and possible obstacles to be overcome) (1)Planned schedule Both in Indonesia and Myanmar, Japan side is contacting with the counterparts in the host country under the planned schedule as below. <9>
July 2013- April 2014 June 2014 - September 2014 April 2016 JCM feasibility study 2013, Ministry of Environment of Japan Apply to JCM subsidiary program 2014, Ministry of Environment of Japan Commencement of construction Commencement of commercial operation (2)Possible obstacles to be overcome [Myanmar] If sales price of electricity is low as current tariff level in this project area, this project cannot be economically feasible. According to the host company, they could decide the sales price, it s probability had to be confirmed. [Indonesia] Since PLN s company decision for implementation is not made yet, we are making continuous negotiation with PLN to participate in this project with DNPI s support. <10>