NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

The chosen methodology AMS-I-A has already been approved for applications relating to both wind and solar energy and to biomass applications for electricity generation including but not limited to palm oil and manures using stand-alone mini-grids with installed capacity less than 15MW or individual structures each with emissions reductions less than 5 tonnes of CO2e per year.

As a type I small-scale methodology, methodology AMS-I-A applies where the total installed capacity is less than 15 MW (or equivalent).

Replacement of kerosene lamps by LED lamps has been covered under application 09-11. Replacement of kerosene lamps, incandescent light bulbs, and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass).

This application can be selectively used for the following, and other, purposes, according to the requirements of each project area :

a) Solar-powered street lighting in (mostly urban) areas where some form of street lighting already exists.

b) A mini-grid or equivalent to support existing non-renewable lighting for local commercial activities.

c) A mini-grid or equivalent to support existing cooling facilities for local commercial activities.

d) Renewable energy operation of existing non-renewable diesel-driven equipment such as water pumps and mills.

It is not clear how solar-powered battery chargers for rechargeable radio and torch batteries could be included in this application as the CDM system applies only to CO2 savings, and not to non-rechargeable batteries and the environmental aspects relating to their loss in the environment.

The text of the methodology reads:

“This category comprises renewable electricity generation units that supply individual households/users or groups of households/users included in the project boundary. The applicability is limited to individual households and users that do not have a grid connection except when;

<“(a) A group of households or users are supplied electricity through a standalone mini-grid powered by renewable energy generation unit(s) where the capacity of the generating units does not exceed 15 MW (i.e., the sum of installed capacities of all renewable energy generators connected to the mini-grid is less than 15 MW) e.g., a community based stand-alone off-the-grid renewable electricity systems; or>“(b) The emissions reduction per renewable energy based lighting system is less than 5 tonnes of CO2e a year and where it can be shown that fossil fuel would have been used in the absence of the project activity by;

(i) A representative sample survey (90% confidence interval, ±10% error margin) of target households; or

(ii) Official statistics from the host country government agencies.”

Integrated development projects in urban areas are likely to have a greater use for this application than rural ones, which are usually so poorly served that there are few existing structures using non-renewable energy. It is assumed here that project areas are poorly equipped with commercial and industrial equipment. The following hypothetical examples are therefore conservative.

Integrated development project areas contain about 45 intermediate level administrative units each serving about 1.500 people, and about 250 local administrative units each typically serving about 250 people.

Taking each of the listed categories in turn :

a) Street lighting. Suppose each local administrative unit has, on an average, 2 street lights and that each light burns 0.5 litres of kerosene equivalent per day. That means that each community burns 1 litre of kerosene or equivalent per day, or 365 litres of kerosene per year. 1 litre of kerosene produces roughly 2.5 kg of CO2, so each community burns 912,5 kg of CO2 equivalent per year, which is much lower than the 5 tonnes of CO2 per system foreseen in methodology AMS-I-A. There are about 250 local administrative units. 250 local administrative units would use 250 x 912,5 CO2 kg equivalent per year, being 228.125 kg of CO2, or 228,13 tonnes. 228,13 tonnes of CO2 at about € 14 per tonne (as at 14 November 2009) = € 3.193,75.

Two installations each with an average installed capacity of 100W (or thermal equivalent) for each lighting system for each local administrative unit are assumed. That would produce 500 systems x 100 W installed, being 50000 W, or 50 KW installed capacity..

b) Lighting appliances for commercial activities. Suppose each local administrative unit has, on an average, five families out of 50 each using 2 lights for commercial purposes and that each light burns 0.5 litres of kerosene equivalent per day. That means that each of the five families burns 1 litre of kerosene or equivalent per day, or 365 litres of kerosene per year. So each local development unit area has 5 families each burning 365 litres per year, or 1.825 litres of kerosene per local administrative unit. Each litre of kerosene produces 2.5 kg of CO2. Therefore each development unit about 4.562 kg of CO2, which is lower than the 5 tonnes of CO2 per system foreseen in methodology AMS-I-A.

There are about 250 local administrative units in each integrated development project area. Each integrated development project area would therefore use 250 x 1.825 kg of kerosene of equivalent per year, being 456.250 kg of kerosene per project area. 1 litre of kerosene produces roughly 2.5 kg of CO2, so each project areas burns the equivalent of 456.250 x 2.5 kg or 1.140.625 kg of CO2 or 1.141 tonnes of CO2 equivalent per year. 1.141 tonnes of CO2 at about € 14 per tonne (as at 14^th November 2009) = € 15.974 per year.

Assuming 5 families each with two lamps, each lamp with an average installed capacity of 100W (or thermal equivalent) in each of 250 local administrative units, total installed capacity would be 1 KW for each local development area. 1 KW installed in each of 250 local development areas gives a total installed capacity of 250 KW.

c) Cooling appliances for commercial activities. Suppose each intermediate administrative unit has, on an average, one commercial activity using a refrigerator-cooler-freezer with a consumption of 0.25 kw/hour or 6 kWh/day. There are about 45 intermediate administrative units in each integrated development project area. Each integrated development project area would therefore use 6 x 45 kWh or 270 kWh per day. 270 kWh per day x 365 = 98.550 kWh per year.

1 terajoule = about 277.778 kWh.

So 98.550 kWh = about 0.35 TJ.

The default factor for diesel is about 74 tonnes of CO2 per terajoule.

Diesel equivalent consumed by refrigerators/freezers is 74 x 0.35 = about 26 tonnes of CO2.

26 tonnes of CO2 @ about € 14 (14th November 2009) = € 364 per year.

Assuming installation of and installed capacity of 2 KW (or equivalent) for each of the 45 intermediate development units, 2 KW by 45 gives a total installed capacity of 90 KW.

d) Replacement of diesel-driven milling and pumping equipment.

Suppose each intermediate administrative unit has, on an average, one commercial activity using a diesel-driven motor with a rated power of 10 hp (about 7.5 kW) operating over 10 hours per day. 10 hours at 7.5 kW = 75 kWh.

There are about 45 intermediate administrative units in each integrated development project area. Each integrated development project area would therefore use 45 x 75 kWh or 3.375 kWh per day. 3.375 kWh per day x 365 = 1.231.875 kWh per year.

1 terajoule = about 277.778 kWh.

So 1.231.875 kWh = about 4.43 TJ.

The default factor for diesel is about 74 tonnes of CO2 per terajoule.

Diesel equivalent consumed by refrigerators/freezers is 74 x 4.43 = about 327.82 tonnes of CO2.

327.82 tonnes of CO2 @ about € 14 (14th November 2009) = about € 4.590 per year.

Assuming the presence of just one commercial activity in each of the 45 intermediate development unit areas, and installed capacity of 15 KW (or equivalent), the total installed capacity would be 45 x 15 KW for a total of 675 KW.

The total installed capacity under points a) + b) + c) + d) amounts to just 1.065 KW, or 1,065 MW (or equivalent) part of the 15 MW (or equivalent) foreseen for applications under methodology AMS-I-A.

Large margins therefore exist to extend the reach application 12 where local circumstances permit.

The typical accumulative CO2 savings in each integrated development project area under application 12 might therefore be to the order of € 24.000 per year (totals a) +b)+c)+d)) , or € 506.557 over 21 years. This amount is, however, subject to the deduction of DOE (designated operational entity ) verification costs. It is assumed these can be reduced to a nominal figure within the framework of a widely applicable general convention of the type foreseen.

Although the total is low and the expected verification costs relatively high, the amount can still cover up to 10% of the formal money costs of an integrated development project.

CO2 savings would be higher where projects are carried out in poor urban areas.

Supposing 2.500 applications under a sub-regional project, the amount in question is 2.500 x 506.557, or € 1.266.392.500.

Menu for : 09. CDM funding indications for the selected applications and methodologies.

09-01. CO2 savings through the reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves.

09-02. Demonstration project for the recovery of forest lands and natural parks and reserves using traditional species.

09.03. Afforestation activities in settlements as defined for the distributed planting of fruit and nut trees and similar.

09-04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands.

09-05. Small-scale agro-forestry activities – distributed demonstration plantations for practical purposes for local use, including but not limited to Moringa plantations on marginal lands.

09-06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species.

09-07. Demonstration afforestation and/or reforestation projects on lands having low inherent potential to support living biomass.

09-08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves.

09-09. Recycling of human waste to avoid the use of industrial fertilisers.