Understanding CDM Methodologies - SuSanA

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preconditions stipulated in ACM0002. As dispatch is usually done according to fuel costs, the top 10% dispatched will usually have a higher emission factor than the average fossil fuel power plant. Therefore, unless the system is dominated by renewable energy, the emission factor derived from the dispatch analysis will be higher than the emission factor generated through the other methods explained below. Average of all fossil Fuel Plants, if those generate more than 50% of Grid Power If renewable Plants generate more than 50% of Grid Power, average of Fossil Fuel Plants only for Time where they are on Margin Grid Average only as last Resort Simple OM: The simple OM method can be used if low-operating cost/mustrun resources 227 constitute less than 50% of the total grid generation (i) in the average of the five most recent years, or (ii) based on long-term norms for hydropower production. The simple OM emission factor is calculated as the generation-weighted average emissions per power unit (tCO 2 /MWh) of all generating sources serving the system, not including low-operating cost/ must -run power plants. This essentially means that the average emissions factor of all fossil fuel power plants is calculated. Simple adjusted OM: If low-operating cost/must-run resources constitute more than 50% of the total grid generation and chronological load data for each hour of a year is available, the simple adjusted OM method should be applied. It is a variation of the simple OM method, where the power sources are separated into low-operating cost/must-run resources and other resources. The weighted average of these two sub-components are calculated where the weights are given by the part of the year when lowoperating cost/must-run resources are on the margin and by the part when other resources are on the margin. This means that in a grid dominated by hydro, for the share of the time where hydro is on the margin, an emission factor of zero is applied. Thus the simple adjusted OM will always be lower than the simple OM. Average OM: The average OM method is the option to choose only when all the others cannot be applied. The average OM emission factor is calculated as the generation-weighted average emission rate (tCO 2 /MWh) of all generating sources serving the system, including low-operating cost/mustrun power plants. In a grid which is partially served by renewable sources, the average OM will be lower than the simple OM Box 14: Impacts of different OM calculation methods Strong Differences in Results of OM Calculation Ex ante or ex-post Calculation of OM allowed A grid is served by 10 power plants, all producing the same quantity of electricity per year. One plant is an old coal plant generating 1100 g CO 2 /kWh, two plants are modern coal plants generating 900 g CO 2 /kWh, three are gas plants generating 400 g CO 2 /kWh, and four are hydropower plants. If the old coal plant runs as baseload, the dispatch data analysis would give an emissions factor of 1100 g CO 2 /kWh. The simple OM would yield 683 CO 2 /kWh and the average OM 410 g CO 2 /kWh. Ex-ante vs. ex-post OM calculation: The simple OM, simple adjusted OM, and average OM emission factors can be calculated either ex-ante based on the most recent three year data for which data is available at the time of PDD submission, or ex-post and updated annually. The choice between ex-ante and ex-post vintage should be specified in the PDD and cannot be changed during the crediting period. 227 Low-operating cost/must-run resources typically include hydro, geothermal, wind, low-cost biomass, nuclear and solar generation. If coal is obviously used as must-run, it should also be included in this list, i.e. excluded from the set of plants. 48
Build Margin Build Margin: newest Plants providing 20% of Grid Electricity or last 5 Plants if generating more than 20% Ex ante or ex-post Calculation of OM allowed Weighting OM and BM: Default 50-50, for Wind and Solar 75-25 The BM emission factor is to be calculated as the generation-weighted average emission rate (tCO 2 /MWh) of recent capacity additions to the system. These capacity additions consist of either the five power plants that have been built most recently, or the power plant capacity additions to the system that comprise 20% of the system generation and that have been built most recently. The sample group that comprises the larger annual power generation shall be used. Ex-ante vs. ex-post BM calculation: The BM emission factor can be calculated either ex-ante based on the most recent information available at the time of PDD submission, or ex-post and updated annually. The ex-post calculation is allowed only during the first crediting period. For subsequent crediting periods, it should be calculated ex-ante. The choice between exante and ex-post vintage should be specified in the PDD and cannot be changed during the crediting period. Combined Margin The CM emission factor is to be calculated as the weighted average of the OM and BM emission factors. The OM/BM weights are set 50% by default. But for wind and solar projects, the default weights are 75% for the OM and 25% for the BM due to their intermittent and non-dispatchable nature (see Box 15). Alternative weights can also be chosen upon justification 228 . Box 15: OM/BM weights for different project classes Weighting for different Types of Renewables Use average Plant Efficiency ACM0002 has set default OM/BM weights as 50% since its original version, with possible alternative weights upon justification. Over time, several arguments and proposals have been made for the use of alternative weights. The salient example is the exclusive use of OM for small power generation projects arguing that small capacity additions would only have negligible impacts on future capacity additions to the grid. The issue was clarified by the guidance given by EB 22 229 . As per the guidance, project size is not a legitimate basis for changing the OM/BM weights. the other hand, timing of project output, predictability of project output, and suppressed demand can be important factors in determining alternative weights. The OM weight can be increased for highly off-peak projects (e.g. solar PV projects in evening peak regions, seasonal biomass generation during off-peak seasons) or projects with output of an intermittent nature (e.g. wind or solar projects). The BM weight can be increased for highly on-peak projects (e.g. air conditioning efficiency projects) or project under suppressed demand that are expected to persist through over half of the first crediting period. However, neither weight can exceed 75% during the first crediting period given that it is unlikely that a project will impact either the OM or BM exclusively during the period. 228 See ACM0002 (version 06) for further guidance. 229 See EB 22, Annex 2. 49
Page 1 and 2: Understanding CDM Methodologies A g
Page 3: Introduction The success of the Cle
Page 7 and 8: 1. Introduction Climate Change is a
Page 9 and 10: Aim of Guidebook This guidebook wil
Page 11 and 12: Special Status of the Marrakech Acc
Page 13 and 14: Small Scale Thresholds over Time Cr
Page 15 and 16: Transparency, Conservativeness, Con
Page 17 and 18: Role of DOEs - Absence of Accredita
Page 19 and 20: Figure 2: The CDM project cycle CER
Page 21 and 22: EB Decision Making and the Role of
Page 23 and 24: While COP/MOP has provided that Lar
Page 25 and 26: Verification Regarding verification
Page 27 and 28: 3. Barrier analysis, with the aim t
Page 29 and 30: Rejections due to Lack of Additiona
Page 31 and 32: 4. Methodologies Methodology Case L
Page 33 and 34: Figure 9: Fuel switch family tree M
Page 35 and 36: Interpretation of top 20% in Approa
Page 37 and 38: 4.1.4 Leakage Unclear Definition of
Page 39 and 40: Top-down Methodology Development fo
Page 41 and 42: Table 4: Methodology revisions 2005
Page 43 and 44: 5. Key elements and application of
Page 45 and 46: Two Methodologies added Nitric Acid
Page 47 and 48: Methodological Concept Power Genera
Page 49: Box 13: Exclusion of immaterial par
Page 53 and 54: Box 16: OM/ BM calculation where th
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Page 59 and 60: Leakage Leakage: Transfer of Equipm
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Page 81 and 82: 5.4.4 AMS-II.D Project Description
Page 83 and 84: 5.4.5 AM0046 This methodology warra
Page 85 and 86: • Information on any changes made
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Project boundary Transport of Waste
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Biomass Leakage: Proving that there
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5.6 .3 ACM0008 Description of the c
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• Methane used for electricity an
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Applicability conditions Definition
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or retrofit. This baseline holds fo
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• For biomass-fired projects, a s
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A handful of projects have submitte
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Submission of further Baseline Scen
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Heat only Projects Baseline Scenari
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• Quantity of steam diverted from
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