C D 4 C D M Estimating CO2 Emissions Reduction by example June 19, 2003 CCIC Conference Room Manila Observatory May Antoniette Ajero Climate Change Information Center On Emissions from Power Plants: GHG X A CO2 Emissions = Power Generation (tons CO2) (MWh) X Carbon emission factor, per fuel type - IPCC Emission Factor (Tons CO2/MWh) Emission Factor= vol fuel consumed Mwh output (Tons CO2/kWh) Plant based - actual data EF X X C D 4 C D M = 1 ton C 1 kgC kgC TJ X X TJ vol unit of fuel 44g/moleCO2 12g/moleC conversion factors Net calorific value, country specific, per fuel type - IPCC On Emissions from Power Plants : CO2 Power Emissions = Generation X C D 4 C D M (tons CO2) (MWh) Emission Factor (Tons CO2/MWh) Plant Installed Power = Capacity X Capacity Generation (%) (MW) (MWh) X 8760 hours in a year On Emissions from a Power Grid : Total CO2 Emissions (tons CO2) Total electricity generation output of grid (MWh) = t Op * Pt*CEFt Percentage contribution to grid (%) Emission factor for specific technology and or fuel type(tons CO2/MWh) C D 4 C D M On Emissions from a Power Grid : Total CO2 Emissions = t Op * Pt*CEFt = Op = Op* CEFwt.ave t Pt*CEFt Module Energy CO2 Em is s ions from Total Electricity Subm odule Cons um ption per city/m unicipality C D 4 C D M 1-A Supplem entary - Works heet to com pute for CO2 Em is s ion Factor Works heet (kgCO2/kWH) Sheet 1 of 1 Year 2000 Step 1 - Calculate for Weighted CO2 Emission Factor k g CO2/ k Wh Ge ne ration Mix , % EF (k gCO2/k Wh) Oil-bas ed 0.798 Dies el 0.764 Hydro 0 Geotherm al 0 Coal 0.94 Natural Gas 0.581 Total Percentage 11.58 9.18 10.29 21.68 47.22 0.05 100 Weighted EF 0.09 0.07 0.00 0.00 0.44 0.00 Fue l Type 0.61 C D 4 C D M Module Energy CO2 Emissions from Electricity Submodule Consumption Worksheet 1-1 Sheet 1 of 1 Year 2000 Step 2 - Calculate for CO2 emissions A B C Em ission Electricity City/Municipality Factor (kg Consum ption CO2/kWh) (MWh) City A From 1-1 A 0.61 Total CO2 Emissions = D CO2 Em issions (Gg CO2) -3 D = B x C*10 164,346 99.70 Op* CEFwt.ave 1 GWh = 1000 MWh = 1,000,000 kWh C D 4 C D M 1 kiloton = 1000 tons = 1,000,000 kg 1 ton = 1000 kg = 1,000,000 g 1000 tons = 1 kiloton = 1 Gigagram Kilo = 103 Mega = 106 Giga = 109 Conversion Factors Example 1: Aquarius Hydroelectric Project Description of the project activity: C D 4 C D M • Host country: Brazil • generate electricity using hydroelectric resources to sell to the power grid. • Hydroelectric power with 4.2 MW installed capacity = 25,755 MWh/year • categorized as I-D (Renewable Energy Project renewable electricity for a grid) • baseline methodology - baseline is average of “operating margin” and “build margin” • crediting period is 7 years - renewable twice Aquarius Hydroelectric Project C D 4 C D M Aquarius Hydroelectric Project C D 4 C D M Sources Direct On-Site - CO2 emissions during project construction excluded - emissions during operation (production of electricity from hydro power) – negligible = 0 Off-Site - One-step upstream: emissions due to transport of construction materials and equipment to project site- excluded Indirect (leakage) None are expected Emissions from manufacture of parts, supplies and machinery required for building the project – excluded. emissions at the national grid that would be displaced by providing renewable power – baseline emissions Aquarius Hydroelectric Project C D 4 C D M Step 1. Determine expected annual electricity production of project Step 2. Determine expected project emissions Step 3. Determine baseline emissions i) determine baseline methodology ii) compute for emission factors iii) compute for baseline emissions Step 4. Determine annual emissions reduction Step 1. Determine expected annual electricity production of project C D 4 C D M Annual Plant Electricity Output (MWh/yr) Installed = Plant Capacity (MW) = 4.2 MW Annual Plant Electricity Output Plant X Capacity X Factor (%) X = 70% Hours year X 8760Hours year 25,755 MWh/year • how much electricity the hydropower project will deliver annually • how much amount of electricity will be displaced from the grid by the hydropower Step 2. Determine expected project emissions C D 4 C D M Annual CO2 Emissions = (tons CO2) X (MWh/year) = Annual CO2 Emissions (tons CO2) Power Generation 25,755 MWh/year = Emission Factor (Tons CO2/MWh) X Zero project emissions Zero (0) Step 3. Determine baseline emissions i) determine baseline methodology C D 4 C D M “approximate operating margin” - grid mix of all generating sources serving the system, excluding hydro, geothermal, wind, low-cost biomass, nuclear and solar generation “build margin” - grid mix of recent capacity additions (newly installed plants) defined as lower of most recent 20% of plants built or the 5 most recently built plants EFbase = (EFoperating + EFbuild)/2 *Baseline and Monitoring Methods Workshop on July 17 Hydro C D 4 C D M Geothermal Diesel GRID Solar Coal Wind Nat Gas Priority Source Dispatched to Grid Sources most likely to be displaced by Project Back ii) compute for emission factors C D 4 C D M Generation with diesel Diesel consumption Specific consumption Calorific value (Diesel) Diesel EF Emission factor EF * = 199.3 GWh Actual (SIESEE) 72,236 Million liters/year Liter/kWh* Actual (SIESEE) 10,700 Kcal/liter Reference value 20.0 Tons C/TJ Reference value 1.190 KgCO2/kWH Calculated 363 Specific consumption X Calorific value X Conversion factors page 30 of Aquarius PDD (Liter/MWh) - errata calculated X Carbon EF ii) compute for emission factors C D 4 C D M operating margin mix composed of diesel-fueled (199.3 GWh) and natural gas-fueled (420.5GWh) power plants • diesel EF = 1.190 kg CO2/kWh (32.16%) • nat gas EF = 0.690 kgCO2/kWh (67.84%) • weighted EF = 0.851 kgCO2/kWh build margin mix composed of natural gas-fueled (718.32 GWh) and hydroelectric (883.008GWh) power plants • nat gas EF = 0.690 kgCO2/kWh (44.85%) • hydro EF = 0 kgCO2/kWh (55.15%) • weighted EF = 0.310 kgCO2/kWh * Aquarius PDD typographical error - 883,008GWh ii) compute for emission factors EFbase = (EFoperating + EFbuild)/2 C D 4 C D M = (0.851 + 0.310)/2 EFbase = 0.580 kgCO2/kWh iii) compute for baseline emissions (annual) Annual CO2 25,755 Emissions = MWh (tons CO2) X 0.580 X kgCO2/kWh 1000kWh 1MWh X 1tonCO2 1000kgCO2 Annual CO2 Emissions = 14,942 tons CO2 (tons CO2) Step 4. Determine annual emissions reduction C D 4 C D M Eredn = Ebase - Eproject =14, 942 tons CO2 - 0 = 14,942 tons CO2 Emissions reductions 1 year 14,942 tons CO 2 7 years 104,594 tons CO 2 21 years 313,782 tons CO 2 30 years 448,260 tons CO 2 Example 2: Burgos Wind Farm Project Description of the project activity: C D 4 C D M • Host country: Philippines (Burgos, Ilocos Norte) • generate electricity using wind energy to sell to the Luzon power grid. • First commercial wind power with approximately 120 MW total capacity* • divided into different phases - Phase 1 = 42MW installed capacity = 107GWh/year • categorized as I-D (Renewable Energy Project renewable electricity for a grid) * as per Japan External Trade Organization (JETRO) feasibility study Example 2: Burgos Wind Farm Project Assumption: C D 4 C D M • crediting period: 10 years • start of crediting period: 2004 • baseline methodology: fossil fuel mix of 2000 will be the same mix as crediting period • constant annual emissions reduction for the entire crediting period • no leakages considered, no other direct or indirect emissions covered Step 1. Determine expected annual electricity production of project C D 4 C D M Annual Plant Electricity Output (MWh/yr) Installed = Plant Capacity (MW) Plant X Capacity X Factor (%) Hours year = (42 MW) x (29%) x (8760hours/year) = 107 GWh/year Step 2. Determine expected project emissions Annual CO2 Emissions (tons CO2) Annual CO2 Emissions (tons CO2) Power Generation (MWh/year) X = 107,000 GWh/year X = Zero Project Emissions = Emission Factor (Tons CO2/MWh) Zero (0) Step 3. Determine baseline emissions i) determine baseline methodology C D 4 C D M a) operating margin and build margin average b) recent capacity additions c) power generation mix of 2000 d) projected energy mix ii) compute for emission factors - collect data on fuel consumption and power generation per fuel type to get specific consumption (volume consumed/kWh generated) Assumption: • table of emission factors on next page: ii) compute for emission factors Fuel Type C D 4 C D M kg CO2/ kWh Oil-based Diesel Hydro Geothermal Coal Natural Gas 0.798 0.764 0 0 0.94 0.581 Greenhouse Gases from Local Communities: An Inventory Manual - Page 14 Fuel Type Oil-based Diesel Hydro Geothermal Coal Natural Gas Total Source: DOE Power Generation, % Contribution to GWh Luzon Grid 4,017 3,182 3,569 7,520 16,374 17.357 34,679 11.58 9.18 10.29 21.68 47.22 0.05 100.00 C D 4 C D M Module Energy 1-A Supplementary - Worksheet to compute Worksheet for CO2 Emission Factor (kgCO2/kWH) Sheet 1 of 1 Year 2000 Step 1 - Calculate for Weighted CO2 Emission Factor kg CO2/ kWh Generation Mix , % EF (kgCO2/kWh) Oil-based 0.798 Diesel 0.764 Hydro 0 Geothermal 0 Coal 0.94 Natural Gas 0.581 Total Percentage 11.58 9.18 10.29 21.68 47.22 0.05 100 Weighted EF 0.09 0.07 0.00 0.00 0.44 0.00 Fuel Type 0.6066 Final Weighted Emission Factor = 0.6066 kgCO2/kWh iii) compute for baseline emissions (annual) C D 4 C D M Annual CO2 107,000 0.6066 Emissions = MWh X kgCO2/kWh (tons CO2) X = 1000kWh 1MWh X 1tonCO2 1000kgCO2 64,906 tonsCO2 Step 4. Determine annual emissions reduction Eredn = Ebase - Eproject =64,906 tons CO2 - 0 Eredn =64,906 tons CO2 C D 4 C D M 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Emissions reductions 64,906 tons CO 2 129,812 tons CO 2 194,718 tons CO 2 259,624 tons CO 2 324,530 tons CO 2 389,436 tons CO 2 454,342 tons CO 2 519,248 tons CO 2 584,154 tons CO 2 649,060 tons CO 2 If at $3 per ton CO2 $1, 947, 180 Exercise: Wigton Wind Farm Project Description of the project activity: C D 4 C D M • Host country: Jamaica • generate electricity using wind energy to sell to the grid. • First commercial wind power with approximately 20.7 MW capacity = 62.97Million kWh • categorized as I-D (Renewable Energy Project renewable electricity for a grid) • baseline methodology - “Recent Additions to the Grid (10 years)” • crediting period - 10 years Exercise: Wigton Wind Farm Project C D 4 C D M Exercise: Wigton Wind Farm Project C D 4 C D M Exercise: Wigton Wind Farm Project Steps in computing for the emissions reduction: C D 4 C D M 1. Compute for the project activity emission. 2. Compute for the weighted carbon emission factor for baseline scenario. 3. Compute for the baseline emission. 4. Compute for the annual emissions reduction and the cumulative emission reduction for the crediting period. 5. Estimate total sales of CERs based on US$3 per ton of CO2 for the entire crediting period. Exercise: Wigton Wind Farm Project 1. Compute for the project activity emission. C D 4 C D M Annual Plant Electricity Output (MWh/yr) Annual CO2 Emissions (tons CO2) Installed = Plant Capacity (MW) Plant X Capacity X Factor (%) Hours year = 20.7 MW X 34.7% X 8760 = 62.97GWh = 62,970MWh = = Annual CO2 Emissions (tons CO2) Power Generation (MWh/year) 62,970MWh = Emission Factor (Tons CO2/MWh) X X Zero (0) Zero Project Emissions C 2. Compute for the weighted carbon emission factor for baselin D 3. Compute for the baseline emission. 4 4. Compute for the annual emissions reduction and the c C 5. Estimate total sales of CERs based on US$3 per ton D M