CLEAN DEVELOPMENT MECHANISM
SMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD) Version 01
CONTENTS
A. General description of CDM programme activity (CPA) B. Eligibility of CPA and Estimation of Emission Reductions C. Environmental Analysis
D. Stakeholder comments
Annexes
Annex 1: Contact information on entity/individual responsible for the CPA Annex 2: Information regarding public funding
Annex 3: Baseline information Annex 4: Monitoring plan
NOTE:
(i) This form is for submission of CPAs that apply a small scale approved methodology using the provision of the proposed small scale CDM PoA.
(ii) The coordinating/managing entity shall prepare a CDM Small Scale Programme Activity Design Document (CDM-SSC-CPA-DD)1,2 that is specified to the proposed PoA by using the provisions stated in the SSC PoA DD. At the time of requesting registration the SSC PoA DD must be accompanied by a CDM-SSC CPA-DD form that has been specified for the proposed SSC PoA, as well as by one completed CDM-SSC CPA-DD (using a real case). After the first CPA, every CPA that is added over time to the SSC PoA must submit a completed CDM-SSC CPA-DD.
1
The latest version of the template form CDM-CPA-DD is available on the UNFCCC CDM web site in the reference/document section.
2
At the time of requesting validation/registration, the coordinating managing entity is required to submit a completed CDM-POA-DD, the PoA specific CDM-CPA-DD, as well as one of such CDM-CPA-DD completed (using a real case).
SECTION A. General description of small scale CDM programme activity (CPA)
A.1. Title of the small-scale CPA:
Installation of Solar Home Systems in Bangladesh Version: 02
Date: 06/11/2007
A.2.
Description of the small-scale CPA:
>> The proposed project activity (CPA) is a bundle of Solar Home Systems (SHS), with capacities of 5 – 200Wp, to be installed across Bangladesh, for users that are not connected to the electricity grid. The proposed CPA is a voluntary initiative taken by the participating organization (PO) .
The participating organization has developed a strategy for providing electricity to households in off-grid, remote and rural areas through SHS. These households have no access to the grid-connected electricity and would either use kerosene or purchase diesel generators for electricity in their houses in the absence of the project activity. The PO has created a financing model, that takes into account carbon financing, in order to reach the poorer households, who cannot afford SHS. It involves:
• Soft credit through instalments to makes SHS affordable,
• Intense grassroots promotion through demonstrations, fairs, meetings at the local level etc, • Community involvement and social acceptance of SHS,
• Free operation & maintenance services for three years after installation; and after this period, service on payment of minimal charges
The proposed CPA will replace the kerosene consumption for household lighting purpose, and thus reduce greenhouse gas (GHG) emissions from burning fossil fuels. The CPA will generate an estimated annual amount of emission reduction during a certain crediting period.
The proposed CPA will facilitate the economy development in the rural areas of Bangladesh. The following points summarise how the project activity contributes to the sustainable development in rural Bangladesh:
The introduction of SHS will have a positive impact on the rural economy of Bangladesh, which will reduce its dependency on imported fossil fuels such as kerosene and diesel;
• New business and job opportunities related to operation and maintenance of SHS will be created. For example, the PO trained local technicians can provide maintenance and repairing services to the SHS users.
• The increase in reliability of electricity supply will promote the development of micro-enterprises. The improved lighting quality from SHS will enable longer working hours, and support higher income-generation. Tailoring businesses, convenience stores, cafés and restaurants can serve more clients by running longer-hour business. New income opportunities, such as mobile phone-charging services and renting time on mobile phones, will also be generated. This,
in turn, will have a positive impact on the socio-economic aspect.
• SHS users will have better home and work environments. Since SHS will replace the conventional soot-producing lamps, it will significantly reduce the indoor air pollution thus redusing the incidence of respiratory diseases and eye ailments etc; thus, health-care expenditure will also come down.
A.3. Entity/individual responsible for the small-scale CPA: The coordinating agency of the proposed CPA is Grameen Shakti.
A.4. Technical description of the small-scale CPA: Description of Technology/Measure:
The proposed SHS will comprise of: (a) Solar Module
(b) Battery
(c) Charge controller,
(d) Fluorescent tube lights with special electronic ballasts, (e) Mounting structure,
(f) Installation kits, and
(g) Cables and connecting devices.
SHSs with different capacities are available for consumers depending on the consumption purpose. SHS less than and equal to 40Wp can only be used for lighting purpose. SHS above 40Wp can be used for operating other electrical appliances like TV, motor, fan etc. Therefore, it has been assumed that households using kerosene for lighting purpose will opt for SHS with 30Wp and 40Wp capacity while others will opt for SHS with 65Wp capacity. This assumption is based on the various research papers and publications3,4.
A.4.1. Identification of the small-scale CPA: Installation of Solar Home Systems in Bangladesh
3
Guidebook on Promotion of Sustainable Energy Consumption, Point 1.1.4,
http://www.unescap.org/esd/energy/publications/psec/guidebook-part-one-trends.htm#114
4
Fuel switching: evidence from eight developing countries, Rasmus Heltberg, Energy Economics 26 (2004) 869– 887
A.4.1.1. Host Party: >>Bangladesh
A.4.1.2. Geographic reference or other means of identification allowing the unique identification of the small-scale CPA:
Grameen Shakti is responsible for providing the mobile CPA’s means in the CPA. A.4.2. Duration of the small-scale CPA:
A.4.2.1. Starting date of the small-scale CPA: >>01/01/2007
A.4.2.2. Expected operational lifetime of the small-scale CPA:
>>25 yearsA.4.3. Choice of the crediting period and related information:
Renewable crediting period
A.4.3.1. Starting date of the crediting period: >> Date of registration
A.4.3.2. Length of the crediting period, first crediting period if the choice is renewable CP:
>>7 years
A.4.4. Estimated amount of emission reductions over the chosen crediting period: >> Year Cumulative number of SHS installed (<= 40 Wp) Cumulative kerosene consumptio n (kilo l/year) Cumulative ER (tCO2/year) 2007 2008 2009 2010 2011 2012
2013
Total amount of ER (tCO2) number of years
average number of ER (tCO2/year) Table A.: ERs from kerosene replacement
Year SHS installed (>40 Wp) Cumulative number of SHS installed (>40 Wp) Cumulative ER (tCO2/year) 2007 2008 2009 2010 2011 2012 2013 Total ER (tCO2) years average/yr Table B.: ERs from diesel replacement
The solar home systems will either replace the use of kerosene lamps (SHS <= 40 Wp) or the use of diesel generators (SHS > 40 Wp). Depending on the capacity of the SHS implemented under the proposed CPA either table A. or table B. is going to be used and completed.
A.4.5. Public funding of the CPA:
>> There is no public funding for this project activity.
A.4.6. Information to confirm that the proposed small-scale CPA is not a de-bundled component
>>
1. For the purposes of registration of a Programme of Activities (PoA)5 a proposed small-scale CPA of a PoA shall be deemed to be a de-bundled component of a large scale activity if there is already an activity6, which:
(a) Has the same activity implementer as the proposed small scale CPA or has a coordinating or managing entity, which also manages a large scale PoA of the same sectoral scope, and;
5
Only those POAs need to be considered in determining de-bundling that are: (i) in the same geographical area; and (ii) use the same methodology; as the POA to which proposed CPA is being added
6
Which may be a (i) registered small-scale CPA of a PoA, (ii) an application to register another small-scale CPA of a PoA or (iii) another registered CDM project activity
(b) The boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point.
2.
If a proposed small-scale CPA of a PoA is deemed to be a debundled component in accordance with paragraph 2 above, but the total size of such a CPA combined with a registered small-scale CPA of a PoA or a registered CDM project activity does not exceed the limits for small-scale CDM and small-scale A/R project activities as set out in Annex II of the decision 4/CMP.1 and 5/CMP.1 respectively, the CPA of a PoA can qualify to use simplified modalities and procedures for small-scale CDM and small-scale A/R CDM project activities.A.4.7. Confirmation that small-scale CPA is neither registered as an individual CDM project activity or is part of another Registered PoA:
>>This small-scale project activity must be neither registered as an individual CDM project activity nor part of another registered PoA.
SECTION B. Eligibility of small-scale CPA and Estimation of emissions reductions
B.1. Title and reference of the Registered PoA to which small-scale CPA is added: >> Installation of Solar Home Systems in Bangladesh
B.2. Justification of why the small-scale CPA is eligible to be included in the Registered PoA : >>
- The proposed CPA should have access to financing channels of the ICDOL’s Solar Energy Program;
- The proposed CPA must be within the country of Bangladesh,
- The selected end-users of the proposed CPA must be the households in the rural areas that are not connected to the national/regional power grid
Year Number of SHS Capacity installed (Wp) total capacity
Total capacity installed (MW)
B.3. Assessment and demonstration of additionality of the small-scale CPA , as per eligibility criteria listed in the Registered PoA:
- Flexibility or innovativeness of financial mechanisms being used in order to expand the reach and implementation of the solar home system program;
- The use of CDM revenues will be used to subsidize the cost of equipment maintenance. The above two criteria shall be applied in the following way:
- An explanation of the financing mechanisms available to households and the role of the CDM, and
- Demonstration that CDM revenues (whole or in part) play a role in helping to expand the program.
B.4. Description of the sources and gases included in the project boundary and proof that the small-scale CPA is located within the geographical boundary of the registered PoA.
>> The project reduces CO2 emissions by replacing the diesel consumption for electricity generation and the use of kerosene lamps for lighting.
B.5. Emission reductions:
B.5.1. Data and parameters that are available at validation: >>(Copy this table for each data and parameter)
Data / Parameter: EF1
Data unit: tCO2e/kl
Description: Emission factor for kerosene fuel Source of data used: IPCC default values
Value applied: 2.41 Justification of the
choice of data or description of
measurement methods and procedures actually applied :
IPCC values have been used for kerosene since no country specific data is available.
Any comment:
Data / Parameter: EF2
Data unit: Kg CO2e/ kWh
Description: Emission factor for Diesel Generators Source of data used: AMS I A
Value applied: 0.8 Justification of the
choice of data or description of
measurement methods and procedures actually applied :
The data has been taken according to the methodology AMS I.A methodology which states that a default value 0.8 KgCO2e/kWh which is derived from diesel generation units, may be used for option 7(a) and 7(b). Considering that there would be large variation in the capacities of DG set to be used by the household in the baseline scenario, the most conservative default value of the emission factor is used for calculation as specified in the methodology
Data / Parameter: FC
Data unit: Liters/annum
Description: Annual fuel (kerosene) consumption Source of data used: Grameen Shakti
Value applied: 182.5 Justification of the
choice of data or description of
measurement methods and procedures actually applied :
The data has been taken from the historical consumption data provided by Grameen Shakti as per clause 9 of AMS I.A.
Any comment:
B.5.2. Ex-ante calculation of emission reductions:
>> Ex-ante emission reduction calculations are based on baseline scenario which is continuous usage of kerosene and diesel fuel fired generators for lighting and electricity purposes respectively.
Reduction of CO2emissions by displacement of ‘business as usual’ kerosene usage for lighting purposes and off-grid electricity generation using Diesel generators with renewable solar electricity are estimated as per CDM small scale methodology for type I “Renewable energy projects” and as per category I.A “Electricity Generation by the User” version 12.
Baseline calculation is based on the assumption that SHS under (less than and equal to) 40 Wp replace kerosene usage for lighting purposes, and SHS with a capacity of above 40 Wp replace electricity generated by the diesel generators.
Table 3: Baseline emissions calculation from kerosene
• Average household consumption of kerosene for lighting = 500 milliliters/day (Source: GS) • Emission Factor for kerosene = 2.41 tCO2e/kiloliters(kl) (Source: IPCC)
Year Cumulative number of SHS installed
Cumulative kerosene consumption (kilo l/year) Cumulative ER (tCO2/year) 2007 2008 2009 2010 2011 2012 2013 2014 2015
• EF default values for Diesel Generators (Source: AMS I.A.) = 0.8 Kg CO2e/kWh • Distribution Losses (Source: AMS I.A.) = 20%
2007 2008 2009 2010 2011 2012 2013 Average capacity
installed in that year (Wp)
Number of kits installed in that year Capacity installed in that year (Wp) Average Capacity (kWh/yr) Baseline Emission (kgCO2e/yr) Baseline Emission (tCO2e/yr) cummulative ER (tCO2)
The proposed CPA is expected to reduce greenhouse gas emissions by a certain amount of tCO2e during the crediting period.
Year Total number of SHS installed Cumulative SHS installed Cumulative SHS <= 40Wp Cumulative ER from kerosene replacement (tCO2) Cumulative SHS > 40 Wp Cumulative ER from diesel replacement (tCO2) Cumulative ER per year 2007 2008 2009 2010 2011 2012 2013 Total ER (tCO2)
B.5.3. Summary of the ex-ante estimation of emission reductions: >> Year Estimation of project activity emissions (tonnes of CO2 e) Estimation of baseline emissions (tonnes of CO2 e) Estimation of leakage (tonnes of CO2 e) Estimation of overall emission reductions (tonnes of CO2 e) 2007 2008 2009 2010 2011 2012 2013 Total (tonnes of CO2 e)
B.6.
Application of the monitoring methodology and description of the monitoring plan:
B.6.1. Description of the monitoring plan: >>
The monitoring methodology as defined in Appendix B for the category AMS I.A. “Electricity generation by the user” version 12 has been applied in this PDD. This methodology consists of:
(a) An annual check of all systems or a sample thereof to ensure that they are still operating (other evidence of continuing operation, such as on-going rental/lease payments could be a substitute). Ongoing loan repayment will be documented and provide evidence for continuing operation of the SHS. The monitoring plan and procedures will be as follows:
1. Follow up of the installation of SHS • A monthly installation program
• Database of installations on a daily basis • Monthly report on the completed installations 2. Follow up of the number of operational SHS.
• No. of operational SHS reported by 0&M team in the unit offices and stored in central database at the GS head office. The number of total SHS consists of house hold that did 100 % down payment and house holds that received a loan.
• Monthly report on operational SHS
C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken:
This information is provided at the PoA level.
C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts:
N/A. Please refer to section C.2. in the PoA-DD.
C.3. Please state whether an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA), in accordance with the host Party laws/regulations:
N/A. Please refer to section C.3. in the PoA-DD. SECTION D. Stakeholders’ comments >>
D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice:
This information is provided at the PoA level.
D.2. Brief description how comments by local stakeholders have been invited and compiled: N/A
D.3. Summary of the comments received: N/A
D.4. Report on how due account was taken of any comments received: N/A
Annex 1
CONTACT INFORMATION ON ENTITY/INDIVIDUAL RESPONSIBLE FOR THE SMALL-SCALE CPA
Organization: Grameen Shakti
Street/P.O.Box: Mirpur-2
Building: Grameen Bank Bhaban
City: Dhaka State/Region: Dhaka Postfix/ZIP: 1216 Country: Bangladesh Telephone: +880 - 29004081 FAX: +880 - 29004314 E-Mail: [email protected] URL: http://www.gshakti.org/
Represented by: Represented by:
Title: Managing Director
Salutation: Mr.
Last Name: Barua
Middle Name: C
First Name: Dipal
Department: Mobile: Direct FAX: Direct tel: Personal E-Mail:
Organization: The International Bank for Reconstruction and Development (IBRD) as trustee of Community Development Carbon Fund
Street/P.O.Box: 1818H St
City: Washington, DC
State/Region: District of Columbia Postfix/ZIP: 20433 Country: USA Telephone: 202-458-1873 FAX: 202-522-7432 E-Mail: [email protected] URL: www.carbonfinance.org Represented by: Ms. Joelle Chassard
Title: Manager Salutation: Ms.
Last Name: Joelle Middle Name:
First Name: Chassard
Department: Environment Department Mobile:
Direct FAX: 202-522-7432 Direct tel: 202-458-1873 Personal E-Mail:
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
Annex 3
BASELINE INFORMATION
Baseline is assumed as replacement of electricity generation from Diesel generators for. Assumptions on which the calculations are made:
duration of sunlight: 7 hours per day time of operation: 340 hours per year
Annex 4
MONITORING INFORMATION
Please refer to the monitoring plan in the specific CPA-DD
Annex 5 Abbreviation:
CDM Clean Development Mechanism
CDCF Community Development Carbon Fund CER Certified Emission Reduction
CO2 Carbon dioxide
EIA Environmental Impact Assessment GHG Green House Gases
GDP Gross Domestic Product GM General Manager DGM Deputy General Manager GS Grameen Shakti
GTC Grameen Technology Centers IMF International Monetary Fund
IDCOL Infrastructure Development Company Limited IEE Initial Environmental Examination
IPCC Inter Governmental Panel on Climate Change kWh Kilo watt hour
MWh Mega watt hour
NGO Non Government Organization PDD Project Design Document PV Photovoltaic
SHS Solar Home System SSC Small-scale CDM
UNFCCC United Nations Framework Convention on Climate Change Wp Peak watt
Annex 6
Reference
1) http://cdm.unfccc.int/EB/Meetings/007/eb7ra07.pdf , Annex 7 : Appendix C1 of the Simplified Modalities and Procedures for Small-Scale CDM project activities
2) http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html, Approved Small Scale CDM Methodologies
3) Guidebook on Promotion of Sustainable Energy Consumption, Point 1.1.4,
http://www.unescap.org/esd/energy/publications/psec/guidebook-part-one-trends.htm#114
4) Fuel switching: evidence from eight developing countries, Rasmus Heltberg, Energy Economics 26 (2004) 869– 887
5) http://www.nationsencyclopedia.com/Asia-and-Oceania/Bangladesh-INCOME.html, Bangladesh Stats Database
6) “Grameen Shakti: An Integrated Approach to Rural Energy Service”, Dipal C. Barua
7) GNI per capita, Atlas method (current US$): 470.00 in 2006,
http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=BGD 8) Country Analysis Brief by Energy Information Administration,
http://www.eia.doe.gov/emeu/cabs/Bangladesh/Full.html,