CC Nalin Kanshal - Elpro Energy Dimension

8/2/2019 CC Nalin Kanshal - Elpro Energy Dimension

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Case study and calculation ofcarbon credits

Presentation by:-

Nalin KanshalDirector

Elpro Energy Dimensions

Pvt.LtdBangalore


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CLEAN DEVELOPMENT

MECHANISM

PROJECT CYCLE
http://carboncreditsusa.wordpress.com/2008/12/10/2009-copenhagen-climate-conference-will-produce-last-minute-climate-change-agreement-brokered-by-powerful-world-negotiators-similar-to-kyoto-accord/


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CDM PPs plan a CDM project activity

PPs prepare the PPD for a CDM project

PPs shall get written approvals of voluntaryparticipation from DNA of each party involved,including host party.PPs may get written approval in step 1,2 or even

4

Validation is the process of independent evaluation of aproject activity against the requirement of the CDM

1. Planning a CDMProject Activity

2.Preparing PDD

3.Getting Approval

4.Validation

5.Registration

Registration is the formal acceptance of a validateproject as CDM project activity


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PPs collect and archive all relevant data necessary forcalculating GHG emission reduction by a CDM projectactivity in accordance with the monitoring plan in thePDD

Verification is a Periodic independent review and ex-post determination of the monitored GHG emission

reduction.Certification is the written assurance by a DOE that aproject activity achieved the reductions in GHGemissions as verified.

The EB will issue CERs equal to the verified amount ofGHG emission reductions.Among issued CERs,2% will be deducted for the shareof proceed to assist developing countries to meet cost of

adaptation

CERs will be distributed among PPs

6.Monitoring a CDMProject Activity

7.Verification &Certification

8.Issuance of CERs

9.Distribution of CERs


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ADDITIONALITY TESTRevenue from the carbon offsets must be a primary driver for project implementation-

availability of a financially more viable alternative that would have led to higheremissions

Local resistance, lack of know-how, institutional or technological barrier -existence of aless technologically advanced alternative involving lower risks in terms ofperformance or market share and at the same time leading to higher emissions

Employ technology that is not very commonly used-prevailing practice or existingregulatory or policy requirements would have led to implementation of a technologywith higher emissions

CDM concept additionality

Project participants have to demonstrate to a validator that the project activity wouldotherwise not be implemented due to the existence of one or more barriers in orderto prove that it is additional to what would have occurred in the absence of the CDM

A TOOL IS AVAILABLE TO HELP!


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Clean Development MechanismBaseline

Establishing a baseline

The amount of emission reduction, obviously, depends on theemissions that would have occurred without the project. Theconstruction of such a hypothetical scenario is known as the

baseline of the project. The baseline may be estimated throughreference to emissions from similar activities and technologies inthe same country or other countries, or to actual emissions prior toproject implementation. The partners involved in the project could

have an interest in establishing a baseline with high emissions,which would yield a risk of awarding spurious credits. Independentthird party verification is meant to ameliorate this potential

problem.


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Co2 database

Table S-1: Weighted average emission factor, simple operating margin (OM), build margin (BM)and combined margin (CM) of all grids for FY 2007-08 (inter-Grid and cross-border electricitytransfers included), in tCO2/MWh

Grid Average OM BM CM

NEWNE 0.81 1.00 0.60 0.80

Southern 0.72 0.99 0.71 0.85 India 0.79 1.00 0.63 0.81

Average is the average emission of all stations in the grid, weighted by net generation.

OM is the average emission from all stations excluding the low cost/must run sources(onlythermal excludes hydro and nuclear).

BM is the average emission of the 20% (by net generation) most recent capacity addition in thegrid.

CM is a weighted average of the OM and BM (here weighted 50 : 50).

The baseline emission factor which is to be used for calculating CDM Benefits by the supercriticaltechnology based power projects has also been calculated by Central Electricity Authority as0.941 tCO2/MWh for the year 2007-08 in accordance with CDM Executive Board approved

methodology ACM0013. The National average has hence been revised to 0.82 tCO2/MWh as of 2009


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What is the Co2 database??

The database is an official publication of the Government ofIndia for the purpose of CDM baselines. It is based on the mostrecent data available with the Central Electricity Authority.

Emission reductions from CDM projects in the power sector arecalculated based on the net electricity generated by the project,and the difference between the emission factors (in tCO2/MWh)of the baseline and the project activity. The baseline emission

factor reflects the carbon intensity of the displaced amount ofgrid electricity. This baseline emission factor can be derivedfrom the data provided in the CO2 Database.


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Classwork Project Profile

Calculation of Carbon Credits from a typicalenergy efficiency project in a fertilizer unit in

Karnataka state


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Project Profile

SECTION A. General description of the small-scale project activity A.1. Title of the small-scale project activity:

Energy efficiency measures at Fertilizer unit of XYZ factory in Karnataka

A.2. Description of the small-scale project activity:

Purpose of the project activity:

The main purpose of the project is to carryout energy efficiency measures, at allpossible consumption points in the chemical process units at XYZ faxtory, so asto reduce electricity consumption. Reduced consumption of energy will lead todisplacing equivalent amount of energy, thus, reducing the consumption offossil fuel in the power generation in grid. Hence, reducing the GHG emissionsdue to the burning of fossil fuel.

A Total of seven initiatives have been considered under the scope of this CDMproject. The projects can be broadly categorized as:

1. Lighting related initiatives 2. Variable Frequency Drives 3. Efficient Motor related Initiatives

4. Other energy efficiency related initiatives


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Class Work Assume emission factor 0.72 tco2/mwh

Ref No Project Measure

BaselineEnergyConsumption

ProjectedenergyConsumption

Difference inEnergy

Hours ofOperationPeryear Savings Savings

Emissionfactor Emission

(Kwh) (Kwh) (kwh) hrs (kwh)/year (mwh)/yr tCO2/Mwhr tCO2/year

P Q R=P-Q S T=R*S U=T/1000 V W=U*V

CDM1A

Replacement of 125 wattHPMV lamps by 70

watt metal halide lamps 125 70 4380

CDM1B

Replacement 250 watt

HPMV lamps by 150

watt metal halide

lamps: 250 150 4380

CDM2

Replacement of 40 watt

T10/T8 tube lights by

28 watt T5 tube lights: 40 28 4380

CDM3

Installation of power saving

device for centralized

lighting DB at

different units: 100 75 4380

Installation of variable


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CDM4Installation of variable

frequency drive: 500 430 7200

CDM5

Replacement of EFF 3

motors with EFF

1: 1000 700 6700

CDM6

Replacement of highercapacity (150 kw)

motors by

optimum capacity

motor (100 Kw): 150 100 6200

CDM7

Reduction in power

consumption by

replacing the

existing aluminium

blades in cooling

tower fan by FRP

blades 100 95 5600

A.

TotalSavings

(Mwh/Year) :

B. Weighted

EmissionFactor :

C.

EmissionstCO2/year (C=A*B) :


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Solution

Ref No Project Measure

BaselineEnergyConsumption

ProjectedenergyConsumption

DifferenceinEnergy

Hours ofOperationPeryear Savings Savings

Emissionfactor Emission

(Kwh) (Kwh) (kwh) hrs (kwh)/year (mwh)/yr tCO2/Mwhr tCO2/year

P Q R=P-Q S T=R*S U=T/1000 V W=U*V

CDM1A


HPMV lamps by 70

watt metal halide

lamps 125 70 55 4380 240900 240.9 0.72 173.448

CDM1B

Replacement 250 watt

HPMV lamps by

150 watt metal

halide lamps: 250 150 100 4380 438000 438 0.72 315.36

CDM2


T10/T8 tube lights

by 28 watt T5 tube

lights: 40 28 12 4380 52560 52.56 0.72 37.8432

CDM3

Installation of power

saving device for

centralized lighting

DB at different

units: 100 75 25 4380 109500 109.5 0.72 78.84

Installation of variable


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CDM4Installation of variable

frequency drive: 500 430 70 7200 504000 504 0.72 362.88

CDM5

Replacement of EFF 3

motors with EFF

1: 1000 700 300 6700 2010000 2010 0.72 1447.2

CDM6

Replacement of higher

capacity (150 kw)motors by

optimum capacity

motor (100 Kw): 150 100 50 6200 310000 310 0.72 223.2

CDM7

Reduction in power

consumption by

replacing the

existing aluminium

blades in coolingtower fan by FRP

blades 100 95 5 5600 28000 28 0.72 20.16

A.

TotalSavi

ngs

(Mwh/Year

) : 3692.96

B. Weighted

EmissionFactor : 0.72

C.

EmissionstCO2/year (C=A*B) : 2658.9312


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THANK YOU

CC Nalin Kanshal - Elpro Energy Dimension

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