Understanding CDM Methodologies - SuSanA

Methodological Concept
Power Generation
times Difference
in Emissions
Factors
Emission reductions (ERs) by these projects are calculated as the amount of
power generated by the project (MWh) multiplied by the difference between
the emission factors of the baseline and project (tCO 2
/MWh). Leakage may
apply to some cases.
ERs = MWh project
X [(tCO2/
MWh) baseline
- (tCO2/
MWh) project
]
Emission
Reductions
Project
Power
Baseline
Emissions
per Unit
Power
Project
Emissions
per Unit
Power
- Leakage
Leakage
New Power Plants New plant construction: For project activities that seek to construct new
facility for power generation, the baseline scenario corresponds to the
power that would have been delivered to the grid by the operation of gridconnected
power plants and by the addition of new generation sources in
the absence of the project.
Retrofits
Remaining
Lifetime
Concept of
Combined Margin
Operating Margin
Build Margin
Broad Set of
Renewable Power
Technologies
covered
Retrofit in existing plant: For project activities that seek to retrofit or
modify an existing facility for power generation, the baseline is that the
existing facility would continue to provide power to the grid at the historical
average level until the time at which the generation facility would likely
be replaced or retrofitted in the absence of the project. All project power
generation above the historical average level would have otherwise been
generated by the operation of grid-connected power plants and by the
addition of new generation sources. From the baseline replacement or retrofit
date onwards, the baseline is assumed to correspond to the project activity
and the baseline power production is assumed to equal the project power
production. Consequently, no emission reductions are assumed to occur
during that period.
Baseline Emission Factor Calculation
The crux of the methodological challenge for this category resides in
determining “avoided generation”, or what would have happened in the
absence of the power generation CDM project. The emission factor of
avoided generation (or the baseline emission factor) is typically calculated
based on the combined margin (CM) approach, which is a reflection of the
following two effects caused by the project: (i) displacement of power in the
connected grid which is generated by power plants operating on margin (i.e.
operating margin, OM), and (ii) delay of future power generation capacity
additions to the grid (build margin, BM). Since most power generation
projects are likely to affect both the OM (in the short run) and the BM (in the
long run), the baseline should reflect a combination of these effects.
5.2.3 ACM0002
Project Description
ACM0002 covers a wide range of grid-connected renewable power
generation technologies (e.g. hydro, wind, geothermal, solar, wave and tidal).
Wind and hydro projects consists of a major share of the existing ACM0002
projects. Several geothermal projects and a tidal project are also observed
in this category. No solar or wave projects have been submitted based on
ACM0002 so far (status: 28/8/2007).
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