Study On Grid Connected Electricity Baselines in Malaysia PDF

Final Report
Study on Grid Connected

Electricity Baselines in Malaysia

Year: 2008

CDM Electricity Baseline
Pusat Tenaga Malaysia
1
Prepared by:
CDM Energy Secretariat

Date:
March 2010

Version 2.0

2
Table of Contents

Executive Summary 3

1. Introduction 5

2. Objectives 6

3. Methodology

3.1 ACM0002: Consolidated Baseline Methodology for 7
Grid-Connected Electricity - Version 10

3.2 AMS1.D.: Grid Connected Renewable Electricity 8
Generation Version 15

3.3 Methodological Tool to calculate the emission factor for 9
an electricity system, Version 2

3.4 Project Boundary 9

3.5 Baseline Calculation 11
3.5.1 Calculation of the Simple Operating Margin 14
3.5.2 Calculation of the Simple Adjusted Operating Margin 16
3.5.3 Calculation of Build Margin 21
3.5.4 Calculation of Combined Margin 23

4. Data collection and assumptions 23

4.1 Leakage 24

5. Baseline Emission Factor in Malaysia 25

5.1 Baseline for Peninsular Malaysia : Year 2008 25

5.2 Baseline for Sarawak: Year 2008 27

5.3 Baseline for Sabah: Year 2008 29

6. Summary of Results 31

7. Comparison between 2006, 2007 and 2008 CDM Baseline 32
Emission Factor

8. References 33

3
Executive Summary

This study examined the carbon emissions baselines of power generation for
the year 2008 in three regions of Malaysia, namely Peninsular Malaysia,
Sabah and Sarawak. It documents the principles and calculations of the
baselines for grid connected electricity sector projects for Peninsular
Malaysia, Sabah and Sarawak. The results will be applicable to grid-
connected electricity generation from renewable sources such as small-scale
projects in Malaysia, as mentioned under the applicability criteria of the
baseline methodology used.

This study used the CDM Executive Board approved methodologies of
ACM0002 Consolidated baseline methodology for grid-connected electricity
generation from renewable sources, Version 10 for large scale projects and
AMS 1.D. (Version 15) of the Grid Connected Renewable Electricity
Generation for the small scale projects. Both methodologies used the same
Methodological tool to calculate the emission factor for an electrical system,
Version 2.

This approved methodology can be applied to grid-connected electricity
generation projects that use renewable sources. The data used for the
calculations originated from official sources. Therefore, the results of this
study can be made publicly available. However, some information such as
fuel consumption and efficiency data of power plants are kept confidential.

The study determines the baseline emission factor expressed in tonne of
CO
2
/MWh. This factor is calculated by the so-called Combined Margin,
consisting of the Operating Margin and Build Margin factors. The Operating
Margin is derived using two of the four methods outlined in ACM0002, namely
the Simple OM and Simple Adjusted OM methods.

For 2008, the emission factor will be calculated using the Tool to Calculate
Emission Factor for an electricity system, Version 2 according to EB 50.

The results of the baselines based on the Tool version 2 are summarised as
follows:

Region 2008
Peninsular
Malaysia
0.672 t CO
2
/MWh
Sarawak 0.825 t CO
2
/MWh
Sabah 0.651 t CO
2
/MWh

4
In this study, the CO
2
emissions were calculated using a conservative method
where the average efficiency for specific power plants was used as the
determinant. The main sources of data were the Energy Commission (EC),
Sabah Electricity Supply Board (SESB) and the Sarawak Energy Berhad
(SEB). The main reasons for using these data sources are to reduce data
inconsistency and uncertainty, and to obtain realistic baselines results. The
data obtained has been verified and confirmed by the main data providers
which included Tenaga Nasional Berhad (TNB), from the CDM Baseline
Colloquium which was held on 30 November 2009.

5
1.0 Introduction

The Kyoto Protocol specifies three flexible mechanisms as cost-effective
instruments for mitigating global greenhouse gas (GHG) emissions. CDM, as
structured in the Kyoto Protocol, represents one of the instruments to facilitate
the participation of developing countries. Emission baselines are necessary to
determine the emission reductions resulting from a GHG mitigation project
and calculating the associated emission credits.

Emission baselines quantify the amount of greenhouse gas (GHG) emissions
in the hypothetical what would happen otherwise case against the current
status. Emission baselines are thus required for the implementation of the
Kyoto Protocols project-based mechanisms. This study has examined carbon
emissions baselines of power generation in three regions of Malaysia, namely
Peninsular Malaysia, Sabah and Sarawak.

In establishing the baselines of this study, a formalisation effort was made
with the Energy Commission (EC) and Sarawak Energy Berhad (SEB). Both
these organisations supplied the relevant data to PTM for the purpose of
calculating the Electricity Baselines. Nevertheless, supporting data were also
retrieved from the utility companies.

This study used the CDM Executive Board approved methodologies for both
large scale and small-scale projects. The ACM 0002 (Version 10) of the
Consolidated Baseline Methodology for Grid-connected Electricity
Generation from Renewable Sources was used for large scale projects and
the Simplified Baseline and Monitoring Methodologies for Selected Small-
Scale CDM Project Activity (AMS 1.D. Version 15) was used for the small
scale. This study updates the previous study in year 2006 and 2007 that used
the ACM 0002 (Version 6) and the AMS 1.D (Version 11).

The ACM 0002 Version 10 as well as AMS 1.D. Version 15 methodology has
some modifications on the applicability, baseline scenario and monitoring
methodology for hydro facilities. The details are described in Table 1 below.
6

Table 1: New Features in the new Version of ACM 0002 (Version 10) and
AMS I.D. (Version 15)

ACM 0002 (Version 10) AMS I.D (Version 15)

The revision expands the
applicability of the methodology to
project activities that retrofit or
replace renewable energy power
generation units, to restore the
installed power generation capacity
to or above its original level. This
revision includes the required
provisions in the following:
(i) definitions,
(ii) baseline identification, and
(iii) baseline emissions sections, in
order to allow these types of project
activities, as well as
(iv) editorial changes in order to
improve the overall clarity of the
approved methodology.

To include the procedures to
calculate project emissions for
hydropower with reservoirs as
specified in Annex 5 of EB 23.

The details of each methodology will be discussed in the subsequent section.

2.0 Objectives

The purpose of this study is to update the current available electricity baseline
for Malaysia, taking into account changes made by the CDM Executive
Board. The existing electricity baseline has been updated by using the
approved baseline methodologies and the most recent data available (2008)
for the electricity sector. This report documents the principles and calculations
of the baselines for grid connected electricity sector projects for Peninsular
Malaysia, Sabah and Sarawak. The baselines for the electricity sector in
these 3 regions will be presented. The results will be applicable to grid-
connected electricity generation from renewable sources such as small-scale
projects in Malaysia, as mentioned under the applicability criteria of the
baseline methodology used.

Note that the results in this report can also be used for projects that meet the
applicability criteria. In order to use the results, each project proponent will
have to justify its choice of baseline and its applicability for the specific project
activities. This involves describing step-by-step how the methodology for
determining the baselines is applied. This specific process will also be
described in the sections below. These sections can be used by project
proponents in developing their specific Project Design Documents (PDDs).

7

3.0 Methodology

In the submission for a proposed CDM project activity, the choice of
methodology must be justified, and a detailed description of the methodology
must be given. The methodology used is ACM0002, Version 10 for the large
scale and AMS 1.D, Version 15 for the small scale.

The methodology described and used in this report is typical, and is given as
a guide to the use of actual steps to be taken in specific project activities.

3.1 ACM0002, Version 10 for Large Scale Project

The ACM0002 is only applicable to grid-connected renewable power
generation project activities as following:-

a. Install a new power plant at a site where no renewable power
plant was operated prior to the implementation of the project
activity (greenfield plant);
b. Involve a capacity addition;
c. Involve a retrofit of (an) existing plant(s); or
d. Involve a replacement of (an) existing plant(s).

The methodology is applicable under the following conditions:

The project activity is the installation, capacity addition, retrofit or
replacement of a power plant/unit of one of the following types: hydro
power plant/unit (either with a run-of-river reservoir or an accumulation
reservoir), wind power plant/unit, geothermal power plant/unit, solar
power plant/unit, wave power plant/unit or tidal power plant/unit;
In the case of capacity additions, retrofits or replacements: the existing
plant started commercial operation prior to the start of a minimum
historical reference period of five years, used for the calculation of
baseline emissions and defined in the baseline emission section, and
no capacity expansion or retrofit of the plant has been undertaken
between the start of this minimum historical reference period and the
implementation of the project activity;
In case of hydro power plants, one of the following conditions must
apply:
o The project activity is implemented in an existing reservoir,
with no change in the volume of reservoir; or
o The project activity is implemented in an existing reservoir,
where the volume of reservoir is increased and the power
density of the project activity, as per definitions given in the
Project Emissions section, is greater than 4 W/m
2
; or
o The project activity results in new reservoirs and the power
density of the power plant, as per definitions given in the
Project Emissions section, is greater than 4 W/m
2
.

8
The methodology is not applicable to the following:

Project activities that involve switching from fossil fuels to renewable
energy sources at the site of the project activity, since in this case the
baseline may be the continued use of fossil fuels at the site;
Biomass fired power plants;
Hydro power plants
1
that result in new reservoirs or in the increase in
existing reservoirs where the power density of the power plant is less
than 4 W/m
2
. In the case of retrofits, replacements, or capacity
additions, this methodology is only applicable if the most plausible
baseline scenario, as a result of the identification of baseline scenario,
is the continuation of the current situation, i.e. to use the power
generation equipment that was already in use prior to the
implementation of the project activity and undertaking business as
usual maintenance.

In addition, the applicability conditions included in the tools referred to above
apply.
2

3.2 AMS 1.D, Version 13 for Small Scale Project

The small scale projects are defined in line with the CDM Executive Board
criteria for small-scale projects, which include the following:
1. Renewable energy project activities with a maximum output capacity
equivalent of up to 15 MW;
2. Energy efficiency improvement project activities which reduce energy
consumption by up to the equivalent of 60 GWh per year;
3. Other project activities that both reduce anthropogenic emissions by
sources and directly emit less than 60 kilotonnes CO
2
equivalent per
year.
Both methodologies adopted the latest methodological Tool to calculate the
emission factor for an electricity system in calculating the baseline. The
details of the methodologies will be discussed in the following section.

1
Project participants wishing to undertake a hydroelectric project activity that result in a new reservoir or
an increase in the existing reservoir, in particular where reservoirs have no significant vegetative biomass
in the catchments area, may request a revision to the approved consolidated methodology.
2
The condition in the Combined tool to identify the baseline scenario and demonstrate additionality that
all potential alternative scenarios to the proposed project activity must be available options to project
participants does not apply to this methodology, as this methodology only refers to some steps of this tool.
9
3.3 Methodological Tool to calculate the emission factor for an
electricity system, Version 2

Both methodologies (ACM0002 and AMS1.D) are refers to the
Methodological tool to calculate the emission factor for an electricity
system, Version 2. This methodological tool determines the CO
2
emission
factor for the displacement of electricity generated by power plants in an
electricity system, by calculating the .combined margin emission factor (CM)
of the electricity system.

The CM is the result of a weighted average of two emission factors pertaining
to the electricity system: the operating margin (OM) and the build margin
(BM). The operating margin is the emission factor that refers to the group of
existing power plants whose current electricity generation would be affected
by the proposed CDM project activity. The build margin is the emission factor
that refers to the group of prospective power plants whose construction and
future operation would be affected by the proposed CDM project activity. This
tool may be applied to estimate the OM, BM and/or CM when calculating
baseline emissions for a project activity that substitutes grid electricity, i.e.
where a project activity supplies electricity to a grid or a project activity that
results in savings of electricity that would have been provided by the grid (e.g.
demand-side energy efficiency projects).

Under this Tool, the baseline methodology procedures apply the following
steps:

Step 1: Identify the relevant electricity systems.
Step 2: Choose whether to include off-grid power plants in the project
electricity system (optional).
Step 3: Select a method to determine the operating margin (OM).
Step 4: Calculate the operating margin emission factor according to the
selected method.
Step 5: Identify the group of power units to be included in the build margin
(BM).
Step 6: Calculate the build margin emission factor.
Step 7: Calculate the combined margin (CM) emissions factor.

All the steps involved are discussed in the subsequent section.

3.4 Project Boundary

In order to calculate the emission reductions from a proposed project activity
it is necessary to define from which activities emissions have to be measured
and included in the calculations. This is also referred to as defining the project
boundary. The emissions from all activities included in this project boundary
have to be measured and calculated. The methodology indicates that the
project shall account for CO
2
emissions from electricity generation in fossil
fuel fired power plants that is displaced due to the project activity. This implies
that for example emissions related to the construction of the power plant or
10
emissions related to the distribution and transportation losses are excluded
from the project boundary and do not have to be accounted for.

For determining the electricity emission factors, a project electricity system is
defined by the spatial extent of the power plants that are physically connected
through transmission and distribution lines to the project activity (e.g. the
renewable power plant location or the consumers where electricity is being
saved) and that can be dispatched without significant transmission
constraints.

Similarly, a connected electricity system, e.g. national or international, is
defined as an electricity system that is connected by transmission lines to the
project electricity system. Power plants within the connected electricity
system can be dispatched without significant transmission constraints but
transmission to the project electricity system has significant transmission
constraint. The significant transmission constraint exists when the
transmission line is operated at 90% or more of its rated capacity during 90%
percent or more of the hours of the year.

For imports from connected electricity systems located in another host
country(ies), the emission factor is 0 tons CO
2
per MWh.

Electricity exports should not be subtracted from electricity generation data
used for calculating and monitoring the electricity emission factors

As for Malaysia, the main electrical grid systems can be divided into 3 main
electrical systems based on regions namely Peninsular Malaysia, Sabah and
Sarawak. Each of these main grids is not interconnected with one other.
Therefore the baseline calculations will be calculated based on individual
regions and their electricity system.

The project boundary has to be assessed in terms of the emission sources
and spatial extent.

Project Boundary for Peninsular Malaysia

Emission sources: the emissions sources of the project activity
have to be taken into account. The use of renewable energy in
renewable energy projects are not taken into account in the
calculation as their CO
2
emissions are considered zero.

Spatial extent: The Peninsular Malaysia grid is an interconnected
grid system. Therefore, all power plants that can be dispatched to
the grid without transmission constraints have to be included in the
project boundary. The grid operator in Peninsular Malaysia
(Tenaga Nasional Berhad) is a net exporter of electricity to
Thailand and Singapore, with a total export of 583 GWh in 2008.
The export electricity is included in the electricity generation data
for the calculation of the baseline emission rate for Peninsular
Malaysia.
11

Project Boundary for Sarawak

have to be taken into account. Again, the use of renewable energy
in renewable energy projects is not taken into account in the
calculation.

Spatial extent: The Sarawak main grid lies along the coastal area
or western region of Sarawak and is an interconnected grid system
connecting Kuching to Miri. The rest of the state consists of
isolated mini-grid systems which are not connected to the other
grids. The main grid in Sarawak is not interconnected with Sabah
or Peninsular Malaysia. Therefore, all power plants that can be
dispatched to the grid without transmission constraints have to be
included in the project boundary.

Project Boundary for Sabah

have to be taken into account. For the applicable renewable
energy projects, the CO
2
emission are zero and are not taken into
account in the calculation.

Spatial extent: The Sabah Grid is an interconnected grid system.
Therefore, all power plants that can be dispatched to the grid
without transmission constraints have to be included in the project
boundary.

3.4 Baseline Calculation

The baseline methodology ACM0002 refers to the latest approved versions of
the Tool to calculate the emission factor for an electricity system in
calculating the baseline emission factor. The baseline emission factor (EF
y
) is
calculated as a Combined Margin (CM) consists of Operating Margin (OM)
and the Build Margin (BM) factors, according to the following three steps.

The methodological tool provides four options to calculate the Operating
Margin, namely
(a) Simple OM, or
(b) Simple adjusted OM, or
(c) Dispatch Data Analysis OM, or
(d) Average OM.

This study uses both the Simple OM and Simple adjusted OM method to
determine the baselines for Malaysia. Undertaking a dispatch data analysis
was considered as well. However, based on earlier discussion on this issue
with TNB Transmission and System Planning, it was deemed not possible to
use this option as the data are not readily available from the relevant utilities.
Moreover, it is time consuming to obtain and analyse the data.
12

Option d) Average OM is not applicable to Malaysia; this method can only be
used if the information on the total net electricity generation of all power
plants serving the system and the fuel types and total fuel consumption of the
project electricity system are not available.

The analysis of the baselines was then carried out using a) Simple OM and b)
Simple Adjusted OM because the low-cost/must run resources in Peninsular,
Sarawak as well as Sabah constitute less than 50% as shown in Figures 1, 2
and 3.

Figure 1: Electricity Generation from Fossil Fuel Vs Hydro for Peninsular
Malaysia

L|ectr|c|ty Generat|on from Ioss|| Iue| vs nydro for en|nsu|ar Ma|ays|a
63442
62834
67311
77366
82603
83421
89241
90213
4992
4444 4032
4983
4188
3329 3888
6839
0
20000
40000
60000
80000
100000
2001 2002 2003 2004 2003 2006 2007 2008
ear
G
W
h
luel Pydro

Source: Energy Commission & National Energy Balance (NEB) (2008)

Year Generation (GWh)
Fossil Fuel 90,215 2008
Low cost/must run resources (Hydro) 6,839
13

Figure 2: Electricity Generation from Fossil Fuel Vs Hydro for Sarawak

L|ectr|c|ty Generat|on from Ioss|| Iue| vs nydro for Sarawak
2820
3271
3442
3794
4027
4281
4693
4790
303
372
434
333
327
333
420
314
0
1000
2000
3000
4000
3000
6000
2001 2002 2003 2004 2003 2006 2007 2008
ear
G
W
h
luel Pydro

Source: Sarawak Energy Berhad & NEB (2008)

Year Generation
(GWh)
Low cost/must run resources (Hydro) 514

14

Figure 3: Electricity Generation from Fossil Fuel Vs Hydro for Sabah

L|ectr|c|ty Generat|on from Ioss|| Iue| vs nydro for Sabah
1239
1339
1490
1316
2103
2303
3328
3786
461
437 433 430
472
347 337
433
0
300
1000
1300
2000
2300
3000
3300
4000
2001 2002 2003 2004 2003 2006 2007 2008
Year
G
W
h
luel Pydro

Source: Energy Commission, Sabah Electricity Sdn. Bhd. & NEB (2008)

Year Generation
(GWh)
Low cost/must run resources (Hydro) 455

3.4.1 Calculation of the Simple Operating Margin (OM)

The Simple OM is calculated as the generation-weighted emissions per
electricity unit of all generating units serving the system, excluding low-
operating cost and must-run power plants
3
. It may be calculated:

Option A: Based on the net electricity generation and a CO
2
emission factor
of each power unit or

3
Low-cost/must-run resources are defined as power plants with low marginal generation costs or power
plants that are dispatched independently of the daily or seasonal load of the grid. They typically include
hydro, geothermal, wind, low-cost biomass, nuclear and solar generation. If coal is obviously used as must-
run, it should also be included in this list, i.e. excluded from the set of plants.
15
Option B: Based on the total net electricity generation of all power plants
serving the system and the fuel types and total fuel consumption of the
project electricity system.

Option B can only be used if:
a) The necessary data for Option A is not available; and
b) Only nuclear and renewable power generation are considered as low-
cost/must-run power sources and the quantity of electricity supplied to
the grid by these sources is known; and
c) Off-grid power plants are not included in the calculation

Option A - Calculation based on average efficiency and electricity generation
of each plant

Under this option, the simple OM emission factor is calculated based on the
net electricity generation of each power unit and an emission factor for each
power unit, as follows:

Where:
EF
grid,OMsimple,y
= Simple operating margin CO
2
emission factor in year y
(tCO
2
/MWh)
EG
m,y
= Net quantity of electricity generated and delivered to the
grid by power unit m in year y (MWh)
EF
EL,m,y
= CO
2
emission factor of power unit m in year y (tCO
2
/MWh)
m = All power units serving the grid in year y except low-cost /
must-run power units
y = The relevant year as per the data vintage (Either the three
most recent years for which data is available at the time of
submission of the CDM-PDD to the DOE for validation (ex
ante option) or the applicable year during monitoring (ex
post option).

The emission factors of each power unit m are determined using the following
option:

Option A2. If for a power unit m only data on electricity generation
and the fuel types used is available, the emission factor should be
determined based on the CO
2
emission factor of the fuel type used
and the efficiency of the power unit, as follows:

16

Where
EF
EL,m,y
= CO
2
emission factor of power unit m in year y (tCO2/MWh)
EF
CO2,m,i,y
= Average CO
2
emission factor of fuel type i used in power unit
m in year y (tCO
2
/GJ)
m,y
= Average net energy conversion efficiency of power unit m in
year y (ratio)
m = All power units serving the grid in year y except low-
cost/must-run power units
y = The relevant year as per the data vintage chosen

Where several fuel types are used in the power unit, use the fuel type with the
lowest CO
2
emission factor for EFCO
2
,m,i,y.

The Simple OM is calculated using the data of all operational fossil fuel fired
power plants generating electricity to the grid for the years 2006, 2007 and
2008.

The calculations of OM were based on specific individual plant specific data
as provided by the Energy Commission, SESB and SEB. Based on data
availability and reliability, the conservative method was adopted to estimate
the fuel consumption of electricity generating plants. Table 2 indicates the
Operating Margins for the three regions.

Table 2: Operating Margin Result Based on Grids System for 2008

Grid System Operating Margin
( tCO
2
/MWh)
Peninsular Malaysia Grid 0.603
Sarawak Grid 0.813
Sabah Grid 0.705

3.4.2 Calculation of the Simple Adjusted Operating Margin

The Simple Adjusted OM. emission factor (EF
OM,simple adjusted,y
) is a variation on
the previous method, where the power sources (including imports) are
separated in low-cost/must-run power sources (k) and other power sources
(m). As with the simple OM, it can be calculated as follows:

Based on data on net electricity generation, the average efficiency of
each power unit and the fuel type(s) used in each power unit, as
follows:

17

Where

Where:
EF
grid,OM-adj,y
= Simple adjusted operating margin CO
2
emission factor in year y
(tCO
2
/MWh)
y
= Factor expressing the percentage of time when low-cost/must-
run power units are on the margin in year y
EG
m,y
= Net quantity of electricity generated and delivered to the grid by
power unit m in year y (MWh)
EG
k,y
= Net quantity of electricity generated and delivered to the grid by
power unit k in year y (MWh)
EF
EL,m,y
= CO
2
2
/MWh)
EF
EL,k,y
= CO
2
emission factor of power unit k in year y (tCO
2
/MWh)
m = All grid power units serving the grid in year y except low-
cost/must-run power units
k = All low-cost/must run grid power units serving the grid in year
y
y = The relevant year as per the data vintage chosen

y
were calculated as follows:-

where lambda ( y ) should be calculated as follows (see figure below):

Step i) Plot a Load Duration Curve. Collect chronological load data (typically
in MW) for each hour of a year, and sort load data from highest to
lowest MW level. Plot MW against 8760 hours in the year, in
descending order.

Step ii) Organize Data by Generating Sources. Collect data for, and calculate
total annual generation (in MWh) from low-cost/must-run resources
(i.e. k GENk,y).

Step iii) Fill Load Duration Curve. Plot a horizontal line across load duration
curve such that the area under the curve (MW times hours) equals the
total generation (in MWh) from lowcost/must-run resources (i.e. k
GENk,y).

Step iv) Determine the Number of hours per year for which low-cost/must-run
sources are on the margin. First, locate the intersection of the
horizontal line plotted in step (iii) and the load duration curve plotted in
step (i). The number of hours (out of the total of 8760 hours) to the
18
right of the intersection is the number of hours for which low-
cost/must-run resources are on the margin. If the lines do not
intersect, then one may conclude that low-cost/must-run sources do
not appear on the margin and y is equal to zero. Lambda ( y) is the
calculated number of hours divided by 8760.

Figure 4: Illustration of Lambda Calculation for Simple Adjusted OM Method

The Lambda (y) calculation for the Simple Adjusted OM is to determine
whether the low-cost/must-run resources (Hydro) are operating at margin.
The lambda calculation shows that there is no intersection of the horizontal
line plotted (low-cost/must-run resources) in step (iii) and the load duration
curve plotted in step (i) for all main grids in Malaysia namely Peninsular
Malaysia, West Sabah and Sarawak as illustrated in Figures 5, 6 and 7.

These results indicate that the low-cost/must-run resources are not operating
at margin at any hours in a year for all 3 of the main grids. Hence the values
of lambda are zero for all 3 main grids. When calculating the Simple Adjusted
OM, it was found that the results were similar to those for the Simple OM.
This is due to the fact that low-cost/must-run sources constitute less than
50% of the total grid generation, and it can be demonstrated by the Simple
OM that the low-cost/must-run sources do not operate on margin. The rest of
this study and the calculations of the baseline will therefore only focus and be
based on the Simple Operating Margin.

19
Figure 5: Load Duration Curve and Low-Cost/Must-Run Resources (Hydro)
Peninsular Malaysia for 2008

Peninsular Malaysia : Load Duration Curve- Yr 2008
0
2000
4000
6000
8000
10000
12000
14000
16000
1 299 597 895 1193 1491 1789 2087 2385 2683 2981 3279 3577 3875 4173 4471 4769 5067 5365 5663 5961 6259 6557 6855 7153 7451 7749 8047 8345 8643
Hours
M
W

Source: Energy Commission (2008)

Low Cost/Must Run Resources (Hydro) 781 MW
20

Sabah for 2008
Sabah : Load Duration Curve- Yr 2008
0
100
200
300
400
500
600
700
800
1 422 843 1264 1685 2106 2527 2948 3369 3790 4211 4632 5053 5474 5895 6316 6737 7158 7579 8000 8421
Hours
M
W

Source: Energy Commission (2008)

Sarawak for 2008

Sarawak: Load Duration Curve Year 2008
0
100
200
300
400
500
600
700
800
900
0
3
6
5
7
3
0
1
0
9
5
1
4
6
0
1
8
2
5
2
1
9
0
2
5
5
5
2
9
2
0
3
2
8
5
3
6
5
0
4
0
1
5
4
3
8
0
4
7
4
5
5
1
1
0
5
4
7
5
5
8
4
0
6
2
0
5
6
5
7
0
6
9
3
5
7
3
0
0
7
6
6
5
8
0
3
0
8
3
9
5
8
7
6
0
Hour
M
W

Source: Sarawak Energy Berhad (2008)

21
3.4.3 Calculation of Build Margin (BM)

According to the tool, the sample group of power units m used to calculate
the build margin consists of either:
4

a) The set of five power units that have been built most recently;or
b) The set of power capacity additions in the electricity system that
comprise 20% of the system generation (in MWh) and that have been
built most recently.
5

Project participants should use the set of power units that comprises the
larger annual generation.

As a general guidance, a power unit is considered to have been built at the
date when it started to supply electricity to the grid.

Power plant registered as CDM project activities should be excluded from the
sample group m. However, If the group of power units, not registered as CDM
project activity, identified for estimating the build margin emission factor
includes power unit(s) that is(are) built more than 10 years ago then:

i. Exclude power unit(s) that is (are) built more than 10 years ago from
the group; and
ii. Include grid connected power projects registered as CDM project
activities, which are dispatched by dispatching authority to the
electricity system.
6

Capacity additions from retrofits of power plants should not be included in the
calculation of the build margin emission factor

In terms of vintage of data, project participants can choose between one of
the following two options: These include:

Option 1, for the 1
st
crediting period, takes an ex ante approach, based on
the most recent information available on plants already built, at the time of
CDM-PDD submission to the DOE for validation. Ex-ante refers to the
period before the proposed project activity is starting. For the second
crediting period, the build margin emission factor should be updated
based on the most recent information available on units already built at
the time of submission of the request for renewal of the crediting period to
the DOE. For the third crediting period, the build margin emission factor
calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting
period.

4
If this approach does not reasonably reflect the power plants that would likely be built in the absence of
the project activity, project participants are encouraged to submit alternative proposals for consideration by
the CDM Executive Board.
5
If 20% falls on part capacity of a unit, that unit is fully included in the calculation.
6
This information shall be provided by the host country.
22
Option 2, in the 1
st
crediting period, the Build Margin shall be updated
anually is calculated ex post including those units built up to the year of
registration of the project activity or, if information up to the year of
registration is not yet available, including those units built up to the latest
year for which information is available. For the second crediting period,
the build margin emissions factor shall be calculated ex ante, as
described in Option 1 above. For the third crediting period, the build
margin emission factor calculated for the second crediting period should
be used.

In this study, Option 1 is selected and the Build Margin emissions factor (BM)
is calculated as the generation-weighted average emission factor of the 5
most recently built plants, using the following formula:

Where:
EF
grid,BM,y
= Build margin CO
2
emission factor in year y (tCO
2
/MWh)
EG
m,y
= Net quantity of electricity generated and delivered to the grid
by power unit m in year y (MWh)
EF
EL,m,y
= CO
2
2
/MWh)
m = Power units included in the build margin
y = Most recent historical year for which power generation data is
available

The final results of Build Margin are shown in Table 3 below.

Table 3: Build Margin Results Based on Grid System for 2008

Grid System Build Margin
( tCO
2
/MWh)
Sarawak Grid 0.837
Sabah Grid 0.597

23
3.4.4 Calculation of Combined Margin (CM)

The combined margin emission factor is calculated as the weighted average
of the emissions factor of the OM and the BM. The formula that is used to
calculate this weighted average emission factor is as follows:

Where:
EF
grid,BM,y
= Build margin CO
2
2
/MWh)
EF
grid,OM,y
= Operating margin CO
2
2
/MWh)
w
OM
= Weighting of operating margin emissions factor (%)
w
BM
= Weighting of build margin emissions factor (%)

The emissions factors of the OM and BM are weighted equally, each 50%, by
default, although different weightage may be used with appropriate
justification. The final results of Combined Margin are follows:-

Table 4: Combined Margin Results Based on Grid System for 2008

Grid System Combined Margin
(tCO
2
/MWh)
Sarawak Grid 0.825
Sabah Grid 0.651

4.0 Data collection and assumptions

The baseline has been calculated using data on the overall plant efficiency for
each power plant to determine the fuel consumption as obtained from the
Energy Commission, SESB and SEB for the year 2006, 2007 and 2008. In
addition, as shown in Table 5, carbon content and oxidation factor were also
used to derive the CO
2
emission coefficient which was also accounted for the
baselines calculation. The emission coefficient chosen was based on the
lower value of the 95% confidence interval for conservativeness.

24

Table 5: Emission Factors Based on Fuel Types

Fuel Default
Carbon
Content
(kg/GJ)
Default
carbon
oxidation
factor
Effective CO
2

Emission
Factor
(kg/TJ)
CO
2

Emission
Coefficient
(t CO
2
/t
Fuel)
95%
Confidence
Interval
A B C =
A*B*44/12
D
1
= B*C Lower
LIQUID FOSSIL
Secondary
Fuels/Products

Gas/Diesel Oil 20.2 1 74.1 74.1 72.6
Residual Fuel Oil 21.1 1 77.4 77.4 75.5
SOLID FOSSIL
Primary Fuels
Other Bituminous
Coal
25.8 1 94.60 94.6 89.5
GASEOUS
FOSSIL

Natural Gas (Dry) 15.3 1 56.10 56.1 54.3

Source: 2006 IPCC Guidelines for National Greenhouse Gas Inventories

4.1 Leakage

No leakage emissions are considered. The main emissions potentially giving rise
to leakage in the context of electric sector projects are emissions arising due to
activities such as power plant construction and upstream emissions from fossil
fuel use (e.g. extraction, processing, transport). These emissions sources are
neglected.

For most renewable energy projects, including hydro and biogas, conversion
to electricity results no potential sources of leakage except for hydro project
that have the power density between 4W/m
2
to 10W/m
2
. However, for projects
involving the use of biomass, leakage may be identified due to the fact that
the biomass used may result in extra emissions related to the transporting of
the biomass. A good example is when using the Empty Fruit Bunches (EFB)
from more than one mill that have to be transported to the site where the
power will be generated. Such emissions may have to be quantified. It will
depend on each individual project whether such leakage is applicable or not.
As this issue is project specific, it is not considered further in this study.

25
5.0 BASELINE EMISSION FACTOR IN MALAYSIA

The CO
2
emissions were calculated using a conservative method where the
plant efficiency for specific power plants was used as the determinants. The
plant efficiency was provided by the Energy Commission (EC), SEB and
SESB. The data on plant efficiency is originated from the specific plant
operator (data as per original design of the power plant).

This section will present the results of applying ACM0002. Towards verifying
the data, the efficiency of the plant is separately reviewed by EC, SEB for
Sarawak and TNB for Peninsular Malaysia.

5.1 BASELINE FOR PENINSULAR MALAYSIA

The calculation of Operating Margin is based on the generation-weighted
emissions per electricity unit of all power plants generating units serving the
grid system in Peninsular Malaysia. This excludes the generation from
Hydro as a must-run/ low-cost fuel source. The data available for the most
recent 3 years are the years 2006, 2007 and 2008 for calculating of operating
margin for 2008. These 3 years of historical data are illustrated in Table 6
below:

Table 6: Simple Operating Margin for Peninsular Malaysia for 2008

Years Generation
(GWh)
CO
2
Emission
(tonnes)
Baselines
(t CO
2
/MWh)
2008
90,215 56,322,476 0.624
2007
89,241 53,938,845 0.604
2006
84,906 49,333,299 0.581
Average Operating Margin for 3 years 0.603

a) Simple Operating Margin 2008

0.624+ 0.604+0.581
or 0.603 tonnes CO
2
/MWh
3

The calculation of Build Margin is based on the weighted average emissions
of the 5 most recently installed power plants in Peninsular Malaysia as
tabulated in Table 7. This sample group of power plant capacity must
comprise more than 20% of the total system generation, as stipulated in the
methodology. In year 2008, the total system generation is 97,053,880 MWh,
inclusive of hydro generating plants. The total output generated by these 5
plants is 36,119,630 MWh resulting in 37.2% of the total system generation in
Peninsular Malaysia, thus justifying the use of this method.

26
Table 7: Build Margin for Peninsular Malaysia for 2008

Name of Power
Plants/ Fuel Types
Year of
Operation
Capacity
(MW)
Total
Generation
(MWh)
CO
2

Emission
(tCO
2
)
1. SKS Prai Power
Station/Gas &
Distillate 2002 350 2,472,020 1,015,403
2. Panglima Power
Station/Gas &
Distillate 2003 720 5,077,840 2,018,341
3. Janamanjung
Power Station/Coal 2003 2100 11,890,810 11,331,615
4. Tuanku Jaafar
Power Station/Gas
& Distillate 2005 715 5,747,640 2,312,158
5. Tanjung Bin
Power Station/Coal 2006/2007 2100 10,931,320 10,103,475
Total

36,119,630 26,780,992
Source: Energy Commission, 2008

The Build Margin for Peninsular Malaysia in 2008 is calculated as follows

CO
2
Emissions divided by the total generation i.e.

26,780,992 tonne CO
2

or 0.741 tonnes of CO
2
/MWh
36,119,630 MWh

Finally the Combined Margin is calculated by averaging the Simple
Operating Margin with the Build Margin. Therefore the Combined Margin
is

0.603 + 0.741
2
/MWh
2

27
5.2 BASELINE FOR SARAWAK

The backbone of the Sarawak grid is the 275 kV transmission connecting
Kuching to Miri with a distance of 765 km. This main grid lies along the
coastal area or western region of Sarawak.

Plants outside the grid provide less than 5% of the states energy and these
are either small diesel generating sets or mini-hydro plants. These plants
have been excluded from the calculation as they are considered to be outside
the project boundary since they are not interconnected.

The data available for the most recent 3 years are the years 2006, 2007 and
2008 for calculating of operating margin for 2008.These 3 years of historical
data are illustrated in Table 8 below:

Table 8: Simple Operating Margin for Sarawak for 2008

Years Generation
(MWh)
CO
2
Emission
(tonnes)
Baselines
(t CO
2
/MWh)
2008 4,790,240 3,871,357
0.808
2007 4,694,610 3,782,930 0.806
2006 4,280,757 3,533,976 0.826
Source: Sarawak Electricity Supply Corporation, 2008

The Simple Operating Margin has been calculated based on the average of
3 years of historical data and is

0.808+0.806+0.826
2
/MWh
3

of the 5 most recently installed power plants in Sarawak as tabulated in Table
9. This sample group of power plant capacity must comprise more than 20%
of the total system generation, as stipulated in the methodology. In year 2008,
the total system generation is 5,304,240 MWh, inclusive of hydro generating
plants. The total output generated by these 5 plants is 3,784,610 MWh,
resulting in 71.4% of the total system generation in Sarawak, thus justifying
the use of this method.
28

Table 9: Build Margin for Sarawak for 2008

Name of Power
Plants/ Fuel
Types
Year of
Operation
Capacity
(MW)
Total
Generation
(MWh)
CO
2

Emission
(tCO
2
)
1. Miri Power
Station/Gas &
Diesel 1994 79 448,790 383,208
2. Bintulu Power
Station
(SESCO)/Gas &
Distillate 1997 66 383,310 262,683
3.Sejingkat
Power Station
(SPC 1) / Coal 1998 100

731,860 786,018
4. Bintulu Gas
Power Station
(IPP) / Gas &
Distillate 1999 210 1,471,270 958,731
5.Sejingkat
Power Station
(SPC 2)/Coal 2004 110 749,380 778,872
Total 3,784,610

3,169,511
Source : Sarawak Electricity Supply Corporation, 2008

The Build Margin for Sarawak for 2008 is calculated as follows

CO
2

3,784,610 tonnes CO
2

or 0.837 tonnes CO
2
/MWh
3,169,511 MWh

The Combined Margin is calculated by averaging the Simple Operating
Margin with the Build Margin. Therefore the Combined Margin for
Sarawak is

0.813 + 0.837
or 0.825 tonnes CO
2
/MWh
2

29
5.3 BASELINE FOR SABAH

Power transmission in Sabah for this year will be interconnected as one main
grid. A fully integrated grid connecting the West Coast Grid to the East Coast
Grid was completed on 28 July 2007, and about 90% of the customers are
now connected to this integrated grid.
The data available for the most recent 3 years are the years 2006, 2007 and
2008 for calculating of operating margin for 2008.These 3 years of historical
data are illustrated in Table 10 below:

Table 10: Simple Operating Margin for Sabah for 2008

Years Generation
(MWh)
CO
2
Emission
(tonnes)
Baselines
(t CO
2
/MWh)
2008
3785,951 2,423,097 0.640
2007 3455,506 2,567,930 0.743
2006 2,900,420 2,122,073 0.732
Source: Sabah Electricity Sdn. Bhd. and Energy Commission, 2008

The average baseline of Simple Operating Margin for 3-year vintages for the
Sabah grid is

0.640+ 0.743+ 0.732
or 0.705 tonnes CO
2
/MWh
3

of the 5 most recently installed power plants in Sabah as tabulated in Table
11. This sample group of power plant capacity must comprise more than 20%
of the total system generation, as stipulated in the methodology. In year 2008,
the total system generation is 4,240,951 MWh, inclusive of hydro generating
plants. The total output generated by these 5 plants is 2,426,840 MWh,
resulting in 57.2% of the total system generation in Sabah, thus justifying the
use of this method.

30
Table 11: Build Margin for Sabah

Name of Power
Plants / Fuel
Types
Year of
Operation
Capacity
(MW)
Total
Generation
(MWh)
CO
2

Emission
(tCO
2
)
1.Powertron
Resources /Gas &
Diesel 1998 190 1,176,740 671,334
2. Sepanggar Bay
Power Corporation
(SBPC)/Gas 2006 100 641,410 376,063
3. Sutera Harbour
/Diesel 2006 36 134,290 87,745
4. Stratavest Sdn.
Bhd. 1998 60 291,630 190,267
5. Sandakan Power
Corporation (SPC) 1999 32 182,770 123,452
Total

2,426,840

1,448,861

Source: Sabah Electricity Sdn. Bhd. and Energy Commission (2008)

The Build Margin for Sabah is calculated as follows

CO
2

1,448,861 tonnes CO
2

or 0.597 tonnes CO
2
/MWh
2,426,840 MWh

The Combined Margin is calculated by averaging the Simple Operating
Margin with the Build Margin. Therefore the Combined Margin for Sabah
is

0. 705+ 0.597
or 0.651 tonnes CO
2
/MWh
2

31
6.0 SUMMARY OF RESULTS

In summary, the following 2008 emission figures are used as the baseline for
the three regions in Malaysia:

Grid Systems
Simple OM
(tCO
2
/MWh)

Build Margin
(tCO
2
/MWh)

Combined Margin
(tCO
2
/MWh)

Peninsular
Malaysia
0.603 0.741 0.672
Sarawak 0.813 0.837 0.825
Sabah 0.705 0.597 0.651

32

7.0 COMPARISON BETWEEN 2006, 2007 AND 2008 CDM BASELINE
EMISSION FACTORS

Tables 12 - 14 below show the comparisons of CDM Baseline Emission
Factors for 2006, 2007 and 2008. The results for some regions were either
slightly lower or higher compared to 2007 data due mainly to the generation
mix and plants efficiency.

In 2008, the slight decrease in the baselines for all of the grid was anticipated
whereby the lower emission factor was used for a conservativeness approach
in producing the emission factors. For Sabah and Sarawak, the fuel
consumption and plant efficiency varied from year 2008. The slight decrease
in 2008 could be attributed to less amount of gas used in some power plants
due to full major inspection for about 5 weeks in the case of Sarawak. For
Sabah, for year 2008, the emission factor is considered as 1 grid as the grid
has interconnected. On the other hand, the reduction on fuel consumption as
well as the electricity generation was also observed in East Sabah.

Table 12: Simple OM

Grid System

2006
(tCO
2
/MWh)

2007
(tCO
2
/MWh)

2008
(tCO
2
/MWh)
Peninsular
Malaysia
0.613 0.611 0.603
Sarawak 0.959 0.863 0.813
Sabah 0.818 0.828 0.705

Table 13: Build Margin

Grid System

2006
(tCO
2
/MWh)

2007
(tCO
2
/MWh)

2008
(tCO
2
/MWh)

Peninsular
Malaysia
0.710 0.757 0.741
Sarawak 0.897 0.882 0.837
Sabah 0.783 0.787 0.597

Table 14: Combined Margin

Grid System

2006
(tCO
2
/MWh)

2007
(tCO
2
/MWh)

2008
(tCO
2
/MWh)

Peninsular
Malaysia
0.661 0.684 0.672
Sarawak 0.928 0.873 0.825
Sabah 0.801 0.807 0.651
33

8.0 REFERENCES

CDM Executive Board : Approved Consolidated Baseline Methodology
ACM0002, Version 10

CDM Executive Board: AMS I.D. Grid Connected Renewable
Electricity Generation, Version 15

CDM Executive Board: Tool to calculate the Emission factor, Version
2

2006 IPCC Guidelines for National Greenhouse Gas Inventories

Study on Grid Connected Electricity Baselines in Malaysia, 2006 &
2007, Pusat Tenaga Malaysia

National Energy Balance 2008, Ministry of Energy, Green Technology
and Water, Malaysia.
34

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