Pamposh Bhat

1
Renewable energy and CDM in India

• by
• Pamposh Bhat
• Director, Climate Change
• GTZ CDM-India
• July 4, 2008, Potsdam, Germany

2
Road Map

• CDM Status and cycle
• Institutional framework in India
• Qualification to be a CDM Project
• Portfolio of India Projects
• Renewable Energy and CDM

3
Kyoto Protocol to the United Nations Framework
Convention on Climate Change

• Signed in 1997 in force since 16 February 2005
• Commits industrialised countries to reduce their
  greenhouse gas emissions by, on average of 5.2
  below 1990 levels in 2008-12
• Individual, quantified emission targets for each
  industrialized country
• Six greenhouse gases covered Carbon dioxide,
  Methane, Nitrous oxide, Sulfur hexafluoride,
  Hydro-fluoro carbon (HFCs), and Per-fluoro
  carbons (PFCs)
• Flexibility mechanisms for financing emission
  reductions abroad
• Clean Development Mechanism (CDM)
• Joint Implementation (JI)
• International Emissions Trading
• US have not ratified EU, China, India, Brazil
  are Parties (Total 180 Parties)

4
Global Warming Potential (GWP) of Major GHGs

• Green House Gas (GHG) Global Warming Potential
  (GWP)
• Carbon-di-oxide (CO2) 1
• Methane (CH4) 21
• Nitrous oxide (N2O) 310
• Per fluoro carbon (PFCs) 560-9200
• Hydro fluoro carbon (HFCs) 140 - 11700
• Sulphur hexa fluoride (SF6) Above 10,000

• Accrues Certified Emission Reduction (CER)
  credits (equal to 1 MT CO2 equivalent)

5
CDM in India

• India signed Kyoto Protocol in December, 1997
  ratified it in August, 2002
• Established DNA in December 2003
• India has consolidated its leadership position in
  terms of Host Country Approved CDM projects.
• Very active participation of the private sector,
  both in terms of underlying projects and
  development of CDM documentation.
• India a leading destination among non-Annex-I
  countries with regards to CDM implementation.
• The majority of registered project in India are
  renewable energy project focusing on hydropower,
  and wind energy

6
India Leading Destination in Carbon Market

• Registered projects in India 346
• Host Country Approved projects 969
• Expected CERs generation till 2012 (if 969
  registered by CDM-EB)- 492 million
• CERs Issued from Indian Projects- 42.91 million
  (as on 17 June 2008)
• CERs have already been issued for 225 Indian
  projects (as on 17 June 2008)

7
PROJECT DEVELOPMENT CYCLE
8
Host Country Approval

• About 60 days from submission to issuance of
  Approval
• Simple and straight forward documentation
• Meetings every Month or when there is project
  load
• 969 projects approved till date

Formats consistent with international Best
practices
Submission of PCN PDD To DNA
Single Window Clearance
Review and Clarifications If any
Issuance of Approval Letter
9
Facilitating CDM Implementation

• Designated National Authority
• National CDM Authority
• Inter Ministerial Committee
• Single Window clearance
• Project Concept Note (PCN)
• Project Design Document (PDD)

10
Additionality Tool

• Screening for early start projects.
• Identification of alternatives to the project
  activity.
• Investment analysis to determine that the
  proposed project activity is not the most
  economically or financially attractive
• Barriers analysis
• Common practice analysis and
• Impact of registration of the proposed project
  activity as a CDM project activity.

11
Projects Spectrum
12
Portfolio of Host Country Approved CDM Projects
13
Portfolio of Host Country Projects Approved
14
Sector-wise break-up CERs expected till 2012
from Host Country Approved Projects as of 11 June
2008.
15
Investment in CDM Projects
16
Host Country Approval of Renewable Projects-India
Sector-wise break-up of Renewable Projects
17
CERs generation of Renewable Projects upto (2012)
18
Portfolio of Host Country PSU Projects approved
19
Renewable Energy Potential and Achievements in
India (As on 31 January 2007)
20
B. Decentralized Energy Systems
21
B. Decentralized Energy Systems contd
22
Status

• States which have fixed the percentage for power
  from renewables
• Andhra Pradesh, Karnataka, Gujarat, Madhya
  Pradesh, Orissa
• States with tariff orders for purchase of power
  from renewables
• Andhra Pradesh, Karnataka, Maharashtra, Madhya
  Pradesh, Uttaranchal, Uttar Pradesh, Tamil Nadu

23
Renewable Power Obligation
24
CDM Opportunities under Present Circumstances are

• 1.
• 2.
• 3.

25
Rejected Projects Case Study -1

• The UN CDM EB in its latest meeting, has rejected
  the following projects from India which were
  seeking registration as carbon credits projects
• The Dhampur Sugar Mills-Asmoli Bagasse
  Cogeneration Project (1148) submitted for
  registration by the DOE (BVC) because the DOE and
  project participant failed to substantiate that
  the biomass residues would in the absence of the
  project activity be used for heat generation in
  boilers at the project site and therefore
  scenario 12 of the approved methodology has not
  been demonstrated to be applicable

26
Case Study 2

• Dhampur Sugar Mills-Dhampur Bagasse Cogeneration
  Project (1215) submitted for registration by the
  DOE (BVC) because the DOE and project participant
  failed to substantiate that the biomass residues
  would in the absence of the project activity be
  used for heat generation in boilers at the
  project site, and therefore it has not been
  demonstrated that scenario 12 of the applied
  methodology is applicable to the project
  activity

27
Case Study 3

• 19.27 MW Grid connected wind electricity
  generation project by KPR Mills in Tamil Nadu
  (1042) submitted for registration by the DOE
  (BVC), because the corrections submitted by the
  DOE and project participant have failed to
  demonstrate that additionality of the project
  activity, in particular as the corrections
  submitted do not confirm the appropriate
  benchmark for the first investment decision and
  do not assess the likelihood of an increase of
  generation output and its impact on the financial
  viability of the project activity

28
Case Study 4

• 10 MW Somasila Hydro Power Project for a grid
  system by Balaji Energy Pvt.Ltd (1201) submitted
  for registration by the DOE (DNV Certification
  AS), because the corrections submitted by the DOE
  and project participant have failed to
  demonstrate the additionality of the project
  activity, in particular as the period of
  assessment in the investment analysis does not
  give adequate consideration to the costs and
  benefits attributable to the project activity.

29
International Statistics
30
Expected Average Annual CERS from Registered
Projects till 2012
31
CERS Issued by Host Party
32
Indian Projects Registered by CDM-EB
33
Indian Renewable Projects Registered by CDM-EB .
No. of Renewable Projects Registered by
CDM-Executive Board
34
Scale of Registered CDM-EB Projects
35
Top Five Countries-CERs Issued
36
Top Seven Consultants in CDM and their Approved
Projects by NCDMA
37
CERS Generation upto (2012)- Top seven
Consultancy-wise
38
Project Type and its Additional Information
39
(No Transcript)
40
Clean Development Mechanism REFORMS
41
Improving CDM

• Immediate top down guidance by the CDM-EB on
  Programmatics CDM.
• Automatic approval of projects below the sectoral
  baseline
• Simplified procedures for determining
  Additionality for Small Scale-Solar, Wind and
  Hydro projects
• Transparent, consistent and non-discretionary
  decision making by the Executive Board especially
  with regard to registration of projects.
• With above in place Venture capital would flow to
  areas where CDM projects are scarce.

42
PoA - Programme of Activities
PoA
Voluntary Coordinated Action by a Private or
Public Entity

• which coordinates and implements any
  policy/measure or stated goal ...
• which leads to GHG emission reductions or
  increase net GHG removals by sinks
• that are additional to any that would occur in
  the absence of the PoA
• via an unlimited number of CDM programme
  activities (CPAs).

CPA
CPA
CPA
CPA
43
POA offers New Opportunities

• Programmatic CDM offers new opportunities in
  Small and Medium size industries ,Municipalities
  ,renewable energy
• Decentralized Biomass Power plants Methodology
  submitted
• GTZ partnering with Haryana Renewable Energy
  Development Agency -A CDM Cell in Panipat Textile
  Cluster manned by Zenith Consultancy Services
• Shortly ASEM will be opening CDM office in Steel
  ReRolling sector Jodhpur

44
CDM Post 2012

• Strong signal from Annex-I Parties for
  continuation of CDM beyond 2012
• Deeper emission reduction targets and longer
  commitment period
• Allow non state Parties, MNCs into Kyoto
  Mechanisms
• One Universally acknowledged Carbon Unit i.e CER

45
Visible Changes

• Investment pattern
• Financing sustainable technologies
• Shift in project categories
• Increase in small scale projects
• Renewable energy/electricity based
• Biomass (gtcommunity based projects)
• Afforestation/Reforestation
• Carbon friendly investment choices
• Increased interest from financial institution in
  identifying projects with CDM opportunity

46
Summary

• Many opportunities
• Demand could be substantial
• Market based instruments has greater role to play
• Increased evidence of building cost of mitigation
  reflecting in national plans and policies
• Mitigation funds to support adaptation options

47
Some Relevant Links on UNFCCC

• http//cdm.unfccc.int/Reference/Documents
• http//cdm.unfccc.int/Reference/Guidclarif
• www. cdmindia.nic.in
• www.cdmindia.com
• www.bee.nic.in

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Thanks for your Attention Ms. Pamposh Bhat,
Director, Climate Change S-35, First Floor,
Panchsheel Park New Delhi - 110017.
India Tel/Fax [phone] E-mail
Pamposh.Bhat_at_gtz.de, pbhat_at_cdmindia.com   website
www.gtz.de, www.cdmindia.com Also visit
http//cdmindia.nic.in