pace centre south african pace centre cdm for small-scale renewable energy & energy efficiency...

PACE Centre

South African PACE CentreCDM for Small-Scale Renewable Energy & Energy Efficiency

ParallaxSustainable Development Solutions


KEY ISSUES FOR PACE

Dean Cooper, Managing Director, Parallax

PACE CentreParallaxSustainable Development Solutions


Cost

Potential barriers to small-scale

CDM

Key Issues for the PACE Centre

PACE Centre

“CDMs have not really developed anything.So far they have been all costs and no benefits.”

(Brian Dawson, UNDP, 11 Dec 2004)




Cost

PACE Centre

• Project baselines

• Validating procedures

• Monitoring plan

• Contract negotiation

• Registration

• Up front payment




Transaction Costs



Awareness

Cost


CDM


PACE Centre

Awareness of Small-Scale CDM Prospects


• Lack of information

• Bias towards “low-hanging fruit”

• Short term outlook

• Uncertainties – investment & returns





Awareness

Scale

Cost


CDM


PACE Centre

Scale to Attract Investors


• Individual projects insufficient

• Project bundling

• Common baselines (international experience)

• Low and delayed revenue streams

• High project & business risks





Awareness

Scale

Project Cycle

Cost


CDM


PACE Centre

Project Cycle


• Understanding

• Eligibility (DNA relations)

• Timing (approval & validation)

• Monitoring





Awareness

Scale

Project Cycle

Capacity

Cost


CDM


PACE Centre

Limited Capacity


• Technology knowledge base

• Access to financial & technical resources

• Institutional capacity (including bureaucracy)

• Clarity of policy

• Investment capacity





TimeAwareness

Scale

Project Cycle

Capacity

Cost


CDM


PACE Centre

Time Demands


• Understanding processes

• Completing PINs / PDDs

• Finding project partners (public/private)

• Establishing links to scale-up

• Investor agreements





TimeAwareness

Scale

Project Cycle

Capacity

Cost


CDM


pace centre south african pace centre cdm for small-scale renewable energy & energy efficiency...

Documents