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Understanding CDM Methodologies - SuSanA

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Baseline Scenario and Additionality<br />

Current Grid is<br />

Baseline Scenario<br />

Diesel-fired Grid:<br />

Emission Factor of<br />

Diesel Generator<br />

Choice among<br />

CM Calculation<br />

Methods, or Grid<br />

Average<br />

Project Emissions<br />

are Zero<br />

For a system where all generators exclusively use fuel oil and/or diesel fuel,<br />

the baseline scenario is diesel generation. Otherwise, the scenario is grid<br />

electricity generation<br />

In both cases, additionality of the project shall be demonstrated by<br />

application of the barrier analysis, e.g. investment barrier, technological<br />

barrier, barrier due to prevailing practice, or other barrier 242 . If project<br />

participants wish, other additionality demonstration methods, e.g. the<br />

investment analysis stipulated in the additionality tool, can also be applied in<br />

addition to the barrier analysis. This is not a mandatory requirement, but has<br />

been applied to many small-scale projects of this category to strengthen their<br />

additionality argument.<br />

Baseline Emissions<br />

As compared to ACM0002, AMS-I.D provides methodological simplifications.<br />

The main simplification is that AMS-I.D allows for the discretional choice of<br />

the weighted average emissions factor of all plants serving the grid, which<br />

is much simpler than the CM approach. This factor is calculated ex-post; the<br />

data of the year in which project generation occurs must be used. Even if the<br />

CM approach is chosen, projects participants are allowed to use any of the<br />

four procedures to calculate the OM emission factor, as long as the criteria<br />

to use the simple OM and average OM methods are met. The application<br />

of default emission factors is also a key advantage for projects connected<br />

to diesel generator systems. Here, the annual power generated by the<br />

renewable unit is multiplied by an emission coefficient of a modern diesel<br />

generating unit of the same capacity operating at the optimal load. AMS-I.D<br />

provides default emission factors for three different diesel generator system<br />

categories operating at the optimal load. 243<br />

Project Emissions<br />

With the exception of hydropower projects with power density less than or<br />

equal to 10 W/m 2 (see the project emissions section of ACM0002 above), the<br />

project emissions of this project category are assumed to be zero. It is not<br />

clear at this stage whether small-scale geothermal power projects have to<br />

consider the two project emission sources that need to be accounted for in<br />

the context of large-scale geothermal power projects.<br />

242<br />

See Attachment A to Appendix B of the simplified modalities and procedures for small-scale <strong>CDM</strong> project<br />

activities.<br />

243<br />

Category 1: Mini-grid with 24 hour service – 25% load factor; Category 2: (i) Mini-grid with temporary service<br />

(four-six hours/day), (ii) productive applications, and (iii) water pumps – 50% load factor; and Category 3: Minigrid<br />

with storage – 100% load factor.<br />

56

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