A.K.Perumal ,

CDM – Methodology Panel ,SSC-WG, RIT and AT member

25th March 2012

Extension of simplified modalities for demonstration of additionality to EE and RE projects .

Experiences with the simplified modalities for demonstration of additionality from a RIT member perspective

Contents

Statistics of micro scale projects in CDM and impact of new additionality guidelines Clarification in current guidelines – RIT perspective Simplification / Revision possible? Exclusive Additionality Tool for DSM-EE project Possibility of extending to EE and RE projects

Statistics of Micro Scale projects in CDM

Number of projects submitted for validation with a capacity less than 5 MW

239

Total number of project applying this specific guidance (28 May 2010 to June 2011)

25

Among 25 project apply classic additionality along with micro scale.

11

Number of projects in LDC 5

Statistics of micro scale projects rejected by CDM-EB (since beginning of CDM until June 2011)

29 / 239

Source : CDM Reform 2011,IGES

Further clarity needed on definitions-RIT Perspective

Definition in terminology SUZ: Lack of consistency 6 different sources used for projects in country X , one source in country Y and

country Z has been defined on sub-regional or local level. Some countries define this terms as “a National Level poverty in country” , some

define as “difficult socio-economic conditions” , and other define as “a backward district of the state”.

SME , Uniform criteria required globally / locally

Interpretation of “Para 2 (d,i) grid connected renewable energy technologies“ and its relevance to WEG projects.

Possible improvement-Simplication/Revision

• Increase the current limits of micro scale additionality to PoA projects?

• What is the purpose of micro scale additionality – dissemination of RE/EE sources / Reduced transaction cost / regional distribution ?

• Can a methodology (project type) which consider suppressed demand while estimating the emission factors be excluded from applying micro scale additionality ? (Double benefits)

• Can direct registration of RE project activities be allowed after an LoA is provided?

• Secretariat to review the completeness and compliance of the monitoring plan and the monitoring methodology (eg: parameters and GEF) ?

Exclusive additionality tool for DSM –EE projects Barriers at the Consumer Level

High consumer discount rate Tight cash situation plus limited ability to borrow High Investment priorities Lack of information Split Incentives

Barriers at the Market Level Unavailability of energy-efficient products. Insufficient capability to manufacture energy-efficient products High import tariffs on energy-efficient products

Barriers at the Financial Institution Level Potentially high credit risks Small investment size Lack of financing history and expertise

Barriers at the Government Level Subsidized energy prices Lack of capability and budgetary resources Inability to enforce codes and standards

Possible Criteria for off-grid RE generation projects.

These technology could be qualified under positive list according to the

classification below if they supply more than [XX]% to domestic household

consumers:

Micro/Pico-hydro ( with power plant size up to XX kW) Micro/Pico-Wind turbine (up to XX kW) PV-Wind Hybrid (up to XX kW) Geothermal (up to XXX kW) Biomass Gasification / Biogas (up to XX kW)

Possible Criteria for Rural electrification projects

These category of energy distribution projects for areas where the consumers do

have access to electricity could be classified under: Average national rural electrification rate in the host country is less than XX%; The project activity is implemented in an underdeveloped rural zone of the host

country identified by the government with one of the following criteria satisfied: The nearest distance to a grid from the project area is greater than XX km The proportion of population is below $XX per day, based on PPP in the zone is

greater than [XX] % .This should be based on the most recent XX years data.• The ratio of:

Total installed capacity of RE technology in off-grid generation

Total installed capacity of grid + Off-grid generation in the host countryXX %

Thank You