case study: gemina rice husk project nicaragua (scenario analysis and small-scale simplified...
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Case Study: Gemina Rice Husk Project Nicaragua (Scenario Analysis and Small-Scale Simplified Methodologies) Carbon Finance Unit The World Bank 22 October 2002 www.CarbonFinance.org (Revised by CCIC, 17 July 2003). Contents. Introduction to the Gemina Rice Husk Project - PowerPoint PPT PresentationTRANSCRIPT
Case Study: Gemina Rice Husk
Project Nicaragua
(Scenario Analysis and Small-Scale Simplified Methodologies)
Carbon Finance UnitThe World Bank22 October 2002
www.CarbonFinance.org
(Revised by CCIC, 17 July 2003)
Contents
• Introduction to the Gemina Rice Husk Project
• Elements of the baseline
• Applicability of the Meth Panel’s recommendations for simplified methodologies for Small-Scale CDM projects
Introduction to the Project • Current practice
– Gemina produces 18,000 tons of rice husk yearly, increasing to 25,000 tons after expansion in 2003
– Rice husks are dumped in open piles– Periodic burning of piles to reduce
volume
• Rice husk to electricity project– Construction of ~1.6 MW power plant– Plant consumes 2.75 t rice husk per hour– Ash used to substitute for cement
Introduction to the Project • Technology: Conventional
boiler/steam turbine– Rice husks are fed to the combustor and
burned to produced to produce heat– Steam generated is passed to steam
turbine which drives an electrical generator
• Rice Husk Power Plant– To cover electricity demand for rice and
flourmill complex– And sell the excess electricity to third
parties
Introduction to the Project • Main sources of emission reductions
– Displacement of electricity from fossil fuel
– Methane reduction from avoided rice husk decomposition
– CO2 reduction from substitution of cement
0 / 2,712 t CO2eCO2 cement2,338 / 2,338 t CO2eMethane from husks
7,418 / 11,144 t CO2eCO2 energy
•Projected reduction 21 years: 212,395 t CO2e (low)
•Yearly reductions 2003-2012 (low/optimal)
Elements of the Baseline
• Baseline– Electricity would otherwise be produced using
fossil fuels– Dumping of waste husks from Gemina rice
mill in open piles
• Gemina project is small-scale– Renewable energy component less than 15MW– Rice husk power plant directly emits less than
15,000 t CO2e
If biomass is counted as renewable energy direct emissions from the project are zero
Elements of the Baseline• Approach for calculating baseline
emissions selected by Gemina– Marrakech Accord 48 a): Existing or
historical emissions, as applicable• Justification of selected approach
– 48 a) defines Business-as-usual as baseline scenario
– PCF interpretation: BAU can be justified by(a) using historic or current information
(control group) or (b) showing that barriers impede other options.
- especially relevant for small scale investments
Elements of the Baseline
Barriers to investment identified for Geminaa) Regulatory barriers to access the market for
electricity- Smallest block of electricity that can be
offered on the Nicaragua wholesale market is 5 MW (Gemina 1.6 MW)
b) Competitive disadvantage of non-traditional projects- Lack of precedents regarding integration of
small generators of renewable energy created problems with concessionaire
c) Limited access to credit- Gemina could not attract financing due to
inter alia absence of long-term PPA, high country risk for Nicaragua
Elements of the Baseline
• Indicator for restrictive nature of identified barriers:– Gemina rice husk generator is first-of-a-
kind technology in all Central America
• PCF assistance to overcome the barriers– Carbon purchase agreement is secure
revenue stream– World Bank involvement may trigger the
interest of other financial institutions
Applicability of Meth Panel’s recommendation for simplified methodologies
• Gemina project falls under category I. D. “Renewable Electricity Generation for a Grid”
• Recommended simplified methodology:– Technology/Measure:
25. Biomass combined heat and power (co-generation) systems that supply electricity to a grid
– Boundary:26. Physical, geographical site of the
renewable generation source
Applicability of Meth Panel’s recommendation for simplified methodologies
• Recommended simplified methodology:– Baseline:
28. For a system where all fossil fuel fired generating units use fuel oil or diesel oil, the baseline is the annual kWh generated by the renewable unit times an emission coefficient for a modern diesel generating unit of the relevant capacity operating at optimal load
– Leakage:30. If the renewable energy technology is
new equipment being installed for the first time, no leakage calculation is required.
Applicability of Meth Panel’s recommendation for simplified methodologies
• Recommended simplified methodology:– Monitoring:
31. Shall consist of metering the electricity generated by the renewable technology. In the case of co-fired plants, the amount of biomass input and its energy content shall be monitored.
Thank you !
Department of Environment and Natural Resources
CDM Training WorkshopNovember 4-6, 2003
Climate Change Information Center Conference Room