Methodologies for Renewables

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Methodologies for Renewables

• Adriaan KorthuisCologne, 12 May 2005
• a.korthuis_at_climatefocus.com

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Contents

• Renewables in the CDM
• Methodologies available
• Methodologies submitted
• Characteristics of methodologies available
• Conclusions

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Climate Focus

• Support to carbon market participants
• Background World Bank and Senter
• CDM/JI, programme design, carbon asset
  development, policy support

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Pipeline at CDM-EB
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Renewables in CDM-EB pipeline (reductions)
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Renewables share of CERs
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Approved methodologies for renewables

• ACM0002 grid connected, renewable
• AM0004 grid connected, uncontrolled burning of
  biomass
• AM0005 up to 60 MW, grid connected
• AM0015 Cogeneration, bagasse
• AM0019 renewables replacing one single plant
• AMSs Small scale

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Approved methodologies for renewables
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New methodologies

• Variations on the earlier ones, grid connected
• Energy production for specific purposes
• District heating
• Liquid biofuels

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Characteristics of approved methodologies

• Determining additionality
• Determining baseline emissions, forecasting
  project emissions, emission reductions
• Additionality make a case and document it
• Emissions make conservative estimations

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Additionality additionality tool

• 0. Starting date
• Legal requirements
• Investment analysis OR 3. Barrier analysis
• Common practice
• Impact of CDM registration
• Other methodologies clear choice for way /
  restriction of applicability

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Determination of emissions

• Baseline through combined margin average of
• Operating margin plants that are operational in
  the grid
• Build margin plants that have recently been built

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Alternatives to calculate Operating Margin

• Simple OM (low cost/must run excluded)
• Adjusted for low cost/must run (if over 50 )
• Dispatch data analysis
• Average (low cost/must run included)
• Use 3yr historical data
• Determine ex-post

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Alternatives for calculating Build margin

• Ex ante five most recent power plants OR most
  recent 20 capacity addition, whichever is the
  largest
• Ex post annually five most recent power plants OR
  most recent 20 capacity addition, whichever is
  the largest

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Emission reductions

• Baseline average of OM and BM
• Project 0 (or calculated in case of geothermal)
• Emission reductions baseline - project

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Differences between the methodologies

• ACM0002 covering the whole series of choices
• AM0004 very specific for one single project
• AM0005
• additionality through stricter applicability
  criteria and barrier analysis.
• Emission reduction combined margin, where OM is
  calculated as simple OM, excluding low cost/must
  run
• AM0015 as ACM0002 local heat component
• AM0019 electricity replacing one plant
• AMSs lt 15 MW
• Additionality through barrier analysis
• Emission reduction through simplest combined
  margin

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Conclusion

• Methodologies for renewables have become pretty
  streightforward
• Consolidated methodology sets the standard
• Others are variants with limited applicability
• Available methodologies should cover the major
  part of the renewable energy projects