Scribd
Upload
78 views11 pages

CDM Type Micro-Hydro Projects: A Case Study

This document summarizes a presentation on CDM Type Micro-hydro Projects. It discusses the technical requirements for CDM projects including baseline studies, mitigation analysis, validation/verification, and certification. It provides examples of micro-hydro projects in the Philippines and examples of other CDM projects undergoing evaluation. It outlines challenges such as government approval processes and capacity building needs. Recommendations include establishing an entity to develop baselines for small projects and providing access to financing.

Uploaded by

Raman Deep
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
78 views11 pages

CDM Type Micro-Hydro Projects: A Case Study

This document summarizes a presentation on CDM Type Micro-hydro Projects. It discusses the technical requirements for CDM projects including baseline studies, mitigation analysis, validation/verification, and certification. It provides examples of micro-hydro projects in the Philippines and examples of other CDM projects undergoing evaluation. It outlines challenges such as government approval processes and capacity building needs. Recommendations include establishing an entity to develop baselines for small projects and providing access to financing.

Uploaded by

Raman Deep
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 11

CDM Type Micro-hydro Projects:

A Case Study

National Workshop on Capacity Development for the


Clean Development Mechanism (CDM)
Eugenio Lopez Conference Center
December 9, 2002

Grace S. Yeneza
Preferred Energy Inc.
Clean Development
Mechanism
 Will be driven by the availability of
developing country projects operating
below the “baselines”
 Will be a “competitive” process
 Offers an excellent opportunity for
Philippines to fund projects for
sustainable development
Technical Requirements for CDM

 Baseline Study  Company to commission and


pay for a baseline study, in
accordance with Kyoto Protocol
requirements

 Company to prepare Project


 Mitigation Concept Note showing “with
Analysis Project scenario” and estimated
emissions reduction benefits
 Review of proposals by an
investment banker for the
buyers (fee range-10 to 15% of
CER value).
Technical Requirements for CDM

 Validation/verification  Preparation of Monitoring


Plan by qualified
consultants,
 Operational Entity ("OE") to
validate the Emission
Reduction component of the
Project
 Buyer commissions an
appraisal and due diligence
at a level determined by the
CDM.
Technical Requirements for CDM
 Certification  Prepare and submit a
Project Design
Document ("PDD")
(with "Letter of
Approval" from GOP
 Project Company
requests the GOP to
submit to the CDM
Executive Board a
request for registration
of the Project
Micro-hydro Projects
 Basically Small (up to 100kW)
 Villa Escudero – 98 kW
 Tulgao, Kalinga - 30 kW
 Balbalasang MHP – 25 kW
 Lon-Oy MHP – 20 kW
 Caguyen, Licuan Baay, Abra - 7kW
 Buneg, Nabuanagan, Apayao- 5 kW
A 100-kW micro-hydro = 800-900 tCO2 e/yr
 Most are community-owned and operated, for
community use
 Dispersed & implemented in remote areas
Examples of CDM Projects
Undergoing Evaluation
 Caribbean wind farm project:
-20 MW electricity output
-50,000 t CO2 emission reductions per year (for 10 years)
-Project costs: US$20m (+)
-Carbon value
-@$3 US/tonne CO2e = $1.72m US
-@$5 US/tonne CO2e = $2.87m US
 SE Asia waste to energy project:
-2 MW electricity output
-50,000 t CO2e (+) emissions reductions per year(for 10 years)
-Project costs: US$3.5m
-Carbon value
-@$3 US/tonne CO2e = $1.72m US
-@$5 US/tonne CO2e = $2.87m US
It will take about 50-60 units 100-kW microhydros
to attain significant CER to attract CDM
Challenges/Hurdles to
Overcome
 GOP approval process
 Current Technical Requirements
 Capacity building
 What CDM is all about
 How to do baselines
 How to capture value of benefits
 How to prepare required documentation
 Financing
 Project Aggregation; identify organizations to do
aggregation
Recommendations
 Pro-active government that is project
development-oriented
 Systems and approval procedures must be
clear & easy to comply with
 Lobby for “ Fast-track” mechanism for
approval/certification of small scale projects
 Small scale projects must be viewed from the
developmental perspective and not only from
its carbon mitigation potential
Recommendations

 Establish an entity to develop top down


baselines for small scale projects
 Even now, start a quasi-CDM program within
DENR
 Provide access to financing by small projects
 Focus capacity building and support on
developing real project developers

You might also like