CDM Considerations and Opportunities in Cambodia: Energy Efficiency, Transport & Renewable Energy

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CDM Considerations and Opportunities in Cambodia
Energy Efficiency, Transport Renewable Energy
National Workshop on Capacity Development for the
Clean Development Mechanism 26-27 March 2003

• Andrew Williamson
• Advisor to Department of Energy Technique
  (Ministry of Industry, Mines and Energy

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Structure of Presentation
Energy Efficiency

• CDM considerations
• International Case Study
• Opportunities in Cambodia

Transport
Renewable Energy

• Key questions
• How can CDM help projects in Cambodia?
• How do CDM projects work?
• What opportunities exist in Cambodia?

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CDM Project Requirements

• A CDM project must be
• REAL (it will actually reduce emissions)
• Measurable (the emission savings can be
  quantified)
• Additional (the savings would not have happened
  without the project)
• Sustainable (defined by host country to include
  environmental community benefits, technology
  transfer etc)

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Energy Efficiency CDM Considerations (1)

• The main types of EE projects are

Demand Side Example Retrofit new efficient
lighting, reduce energy losses in process,
introduce new efficient appliances
Supply Side Example Improve efficiency of
generator, upgrade transmission line and
transformers to reduce losses, upgrade steam
boiler for greater efficiency
Fuel Switching Example Replace coal boilers with
gas-fired units, use biofuels instead of diesel.
( NOT nuclear!)
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Energy Efficiency CDM Considerations (2)

• Energy Efficiency (EE) projects usually reduce
  the energy demand per unit of output and thus
  offer other benefits of cost saving and
  production efficiency
• EE projects for CDM can involve either upgraded
  or new equipment
• CDM Transaction costs are high so often need to
  group many projects under one CDM project to make
  viable
• EE projects are difficult to baseline, monitor
  verify, and special guidelines have been produced
  to assist calculation
• Must first establish Emissions Baseline the
  greenhouse emissions which would have occurred in
  business as usual, ie if the CDM project was
  not done.
• Small projects (up to 15MW generation capacity or
  15GWh/yr of equivalent energy savings) have
  special simplified rules and calculations

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Energy Efficiency CDM Considerations (3)

• Monitoring and Verification need to prove that
  savings are real throughout the project
• This can be difficult and costly, especially when
  many emission sources are involved (easier on
  single large projects where performance can be
  measured directly)
• THUS vital for effective training and management
  of operators (includes ensuring that operation
  manuals for new equipment are provided in Khmer
  language)
• Emissions Leakage refers to situation where old
  replaced equipment is sold to someone who uses it
  elsewhere resulting increased emissions elsewhere
  (so it reduces the overall effectiveness of
  project).

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Energy Efficiency - International Case
StudyBangladeshi Brick Kilns

• Project
• 20 new Brick Kilns
• Higher efficiency than standard kilns (new
  Hoffman design)
• Uses natural gas rather than coal

• Baseline assumes most likely scenario for brick
  production over next 10 yrs in Bangladesh
• Monitoring will involve metering of actual gas
  consumption calculation of brick production

Project Partners

CDM Operator (organise CDM financing deliver
CERs to Investor)

CDM Investor
CERs
CERs

• Could be
• Owners Association
• NGO
• Private Business

Kiln Owners 20 various companies
(in Developed Country)
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Energy Efficiency - International Case
StudyBrick Kilns in Bangladesh
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Energy Efficiency - Cambodian Opportunities (1)
Industrial Sector types of operators
Breweries and Bottling Distillery
(cassava?) Water Purification Laundries Brick
Kiln Garment Factories Rice Mills Sugar
Refinery Food Processing
Animal Feed Factory Plywood Manufacturing Cement
Works (?) Paper Mill Sewerage Pumping Cigarette
Factories Plastics manufacturer Galvanized Iron
Roofing Paint Factory
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Energy Efficiency - Cambodian Opportunities (2)

• Opportunities Industrial Sector
• Lighting improve design (new fittings
  reflectors), new technology (tri-phosphor
  fluorescents, high pressure sodium), control
  (timers, sensors), skylights light
  wells/shelves
• Boilers improved design, insulate ducting,
  steam traps, heat recovery to pre-heat feed water
• Refrigeration new refrigerants lubricants,
  optimise settings, controls (timers, sensors),
  duct layout zoning, new technology
• Compressed Air leak stop program (must be
  ongoing), efficient nozzles, unit sizing,
  optimise control (staging, timers, variable
  speeds etc), position intake for cool air
• Electric Motors replace with high efficiency
  motors, variable speed drives, optimise control
  (timers, sensors, idle shut-off)

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Energy Efficiency - Cambodian Opportunities (3)

• Opportunities
• Building Design orientation exterior awnings
  facades landscaping to reduce solar gain,
  insulation, natural lighting, natural
  ventilation, building materials to reduce air-con
  load, interior colours to reduce lighting load,
  double-glazed windows, air-locks air curtains
  revolving doors to minimise air leaks
• Lighting improve design, new technology
  (fittings reflectors, low-energy ballasts,
  dimmable fluorescents), automate control (timers,
  sensors), zoning
• Water Heating centralised units, solar and gas
  rather than electric, heat pumps, insulate
  ducting, heat recovery from air-con, reduce water
  use (efficient nozzles, taps, showers), optimise
  settings (reduce temp)
• Air Conditioning new refrigerants lubricants,
  optimise settings, controls (timers, sensors),
  duct layout zoning, new technology, avoid
  individual control-setting, ceiling fans where
  possible

Commercial Buildings
Hospitals Hotels Banks Office Buildings Government
Offices Warehouses Restaurants Markets and
Shops Schools
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Energy Efficiency - Cambodian Opportunities (4)
Cogeneration (or Combined Heat and Power(CHP)

• Anywhere with both electrical and heating or
  cooling needs
• Especially industrial plants and commercial
  buildings
• Service can be offered by existing IPP (delivers
  electricity AND steam / cool air!)
• Scenario 1 Garment Factory
• Electricity generated by on-site diesel
  generators
• Modified so hot water recovered directly from
  water jacket or heat exchangers to pre-heat
  the factory boilers
• Big saving in energy costs and emissions from
  coal-fired boilers
• Scenario 2 Commercial Building
• Electricity generated by on-site diesel generator
• Air conditioning compressors driven directly by
  second shaft on diesel engine
• OR absorption chillers use the recovered heat
  from engines (as above) to generate cool air

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Energy Efficiency - Cambodian Opportunities (5)

• Opportunities
• Building Design orientation exterior awnings
  facades landscaping to reduce solar gain,
  natural lighting, natural ventilation
  (flow-through, heat exhausts), building materials
  to reduce cooling load
• Cooking gas cooking if possible, efficient wood
  coal stove designs, area with good ventilation
  separate from living areas (to avoid heating
  them)
• Lighting use compact fluorescents, interior
  colours to reduce lighting load, task lighting
  rather than whole space (eg over cooking bench,
  kitchen table etc)
• Space Cooling ceiling fans, sealable bedrooms
  for aircon
• Appliances awareness programs energy
  efficiency labeling stand-by loads,
  refrigerator settings maintenance
• Street Lighting design placement, high
  efficiency bulbs fittings, optimise timers or
  sensors

Residential
Houses Apartment Blocks Rural cottages
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Transport - CDM Considerations

• Transport Efficiency Projects can be difficult to
  measure verify as emission sources are
  generally privately owned mobile! CDM validity
  should be checked.

• Vehicle Efficiency
• Improve existing vehicles (better maintenance,
  testing, regulations)
• New technology (introduce encourage its use
  through incentives regulation)

• Fuel Substitution
• Biofuels (biodiesel, ethanol etc) to reduce use
  of diesel and petrol
• Encourage natural gas CNG use
• Electric hybrid vehicles (and soon fuel cells)

• Transport System Efficiency
• Public transport systems (which are effective)
• Trains for bulk cargo to/from sea/air ports
• Encourage and simplify non-motorised transport
• Plan towns, buildings and events to improve
  traffic flow reduce need for motorised transport

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Transport - International Case StudyUrban Busses
in Yogyakarta, Indonesia

• Project
• Improve the energy efficiency of public bus
  system
• Replace engines on 200 of the fleet of 500 busses
• Switch from diesel to either clean diesel,
  natural gas or other (still in design)

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Transport Opportunities for Cambodia (1)

• Biofuels
• Sustainable, renewable fuel source (for transport
  generator sets)
• Biodiesel, Ethanol, raw vegetable oils (eg palm
  oil in Marine diesel engines)
• Local production from energy crops
• Increase energy independence

• Project Options
• Establish local manufacturing plants plus energy
  crops (technology transfer training)
• Demonstration project with free/cheap samples to
  promote gain credibility
• Public transport trial running on biofuels
• Incentives (subsidies, tax concessions) to
  transport companies to use (eg trucks, taxis,
  ferries, trains)
• Promote raise awareness of benefits for
  environment Cambodia

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Transport Opportunities for Cambodia (2)

• Private Vehicles
• Establish emissions regulations registration
  requirements
• Periodic vehicle inspections phase-in fines OR
  free tune-ups?
• Tune-up program establish training program for
  service centres, and mobile testing stations
• Efficiency labeling on vehicles sold
• Public Transport
• Efficient bus system around the major towns with
  services devoted to schools, universities
  factories
• As major highways are improved, establish cheap,
  reliable and safe bus system between major towns
  tourist destinations
• Upgrade train services (passenger cargo) from
  sea port to Phnom Penh (plus Pursat, Battambang
  Siam Reap?)

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Renewable Energy - CDM Considerations

• Must be sustainable
• Measuring Verification usually just involves
  measuring actual generation output, then
  calculating baseline fossil fuel emissions as
  savings
• Need to be close to suitable transmission lines
  or consumers
• Need someone to buy energy
• Need licences from EAC as generator
• Need to secure long-term supply of fuel if
  biomass (possibly hydro)

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International Case Study - Renewable Energy
Waste Palm Oil Electricity Generation, Indonesia
(1)

• Project
• 10.3MW capacity from special high-pressure boiler
  with steam-turbo generator
• Combustion of 220kT/yr of empty fruit bunches
  from processing plant
• Palm Oil mill is 1.5km from 20kV substation
  close to river
• Host Country Partner
• Joint venture of 3 Indonesian companies (Catra
  Nusantara Bersama, Bronzeoak Limited, and PT
  Indonesian Power)
• 2 of the companies will also purchase the power
  from the JV
• CDM Investor Partner
• now looking - from an Annex 1 country
• probably use a local Indonesian company to
  co-ordinate CDM investment

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International Case Study - Renewable Energy (2)
Waste Palm Oil Electricity Generation, Indonesia
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Renewable Energy Opportunities for Cambodia (1)

• Hydropower
• Excellent potential, proven ability in-country
• Pico/micro suitable in many small villages on
  rivers
• Mini projects identified and investigated in
  Meritech study
• CDM gather small projects into one proposal
• Wind
• Large utility scale (gt500kw) 8 areas identified
  by modelling as good potential, now need
  monitoring and investigation
• Small domestic scale (lt500kW) demonstration
  projects by NEDO in Takeo, but one turbine
  damaged and monitoring unsuitable
• Further investigation needed
• Solar PV
• Excellent potential
• Extensive demonstrations by NEDO and others
• Opportunities for Grid-Interactive inverters in
  towns and small grids

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Renewable Energy Opportunities for Cambodia (2)

• Biomass
• Various fuels available (rice husks, straw,
  bagasse, palm oil, forestry residue, plantation
  timber/crops (eg rubber))
• Many technologies now mature and in use elsewhere
• Need thorough resource assessment feasibility
  studies
• current fuel uses must be investigated
• Biofuels
• Biodiesel, ethanol and direct vegetable oils
• (Discussed in Transport section)
• Requires resource and feasibility assessments
• Landfill and Urban Waste
• Many technologies mature and available
• Cheap and widely used elsewhere
• Can be retrofitted, but better if designed at
  start of landfill life
• Geothermal
• Small, low-quality resource in Kompong Spue
• Worth basic investigation
• 50MW plant planned for central Vietnam

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Next Steps

• Raise Stakeholder Awareness of Benefits
• Government, Project Developers, Private Industry,
  Investors, International Developers and CDM
  Investors
• Project Identification Pipeline
• Resource assessments industry studies/surveys
  energy audits
• Project Design
• Feasibility Studies
• Consultation with communities, authorities
• Project Promotion Financing
• Seek partners for finance investment
  co-ordination
• Will CDM help this project?
• Yes Start CDM Cycle
• No Find alternative funding

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CDM Projects in Cambodia - information and
assistance -

• CDM Operation, Cambodia Status etc
• Climate Change Unit MoE Mr Tin Ponlok or Mr Sum
  Thy
• Renewable Energy and Energy Efficiency
• Department of Energy Technique Dr Sat Samy,
  Director
• Hydropower Department Dr Bun Narith, Director
• Fossil Fuel Generation, Transmission and
  Distribution
• Energy du Cambodge Dr Praing Chulasa, Deputy
  Director, Corporate Planning and Projects
• Electricity Authority of Cambodia Dr Ty Norin,
  Chairman
• Department of Energy Development (MIME) Mr Tun
  Lean, Director

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References

• A Users guide to the CDM, Pembina Institute,
  June 2002 info_at_pembina.org www.pembina.org
• CDM Opportunities in Asia, TERI New Delhi et.
  al., October 2002
• Cambodias Initial Communication under the
  UNFCCC, Ministry of Environment Cambodia, August
  2002
• Introduction to the CDM, UNEP Collaborating
  Centre on Energy and Environment, RISO National
  Lab, (not dated)
• Simplified modalities and procedures for CDM
  small-scale project activities, UNFCCC
  (www.unfccc.int/cdm/ssc.htm)
• DRAFT Renewable Energy Action Plan, World Bank
  and MIME (DET), November 2002
• Useful Websites
• International Energy Agency (baseline
  calculations)www.iea.org/books/studies/2000/em.ba
  se.pdf
• Monitoring and Verification guidelineswww.ipmvp.o
  rg/info/info.html
• Asian CDM Opportunitieswww.pembina.org/publicatio
  ns www.teriin.org/climate/cdm.asia
• Renewable Energy Feasibility Software Examples
  (FREE download)www.retscreen.ca
• Prototype Carbon Fund World Bank
• www.prototypecarbonfund.org or www.carbonfinance.o
  rg