CDM in Power Sector

And
Carbon Emission
Reduction
Calculations
Praveen Gupta
Deputy Director
Central Electricity Authority
New Delhi
17th April,2008
INDIAN POWER
SCENERIO
INSTALLED CAPACITY
(AS ON 31.03.2008)

Total: 1,43061 MW

In Addition Captive installed Capacity -14636 MW

 PLF (%)

48
53
58
63
68
73
78
1985-86 52
.4
1986-87 56
53 .5
.2
1987-88

1988-89
55
1989-90
56
.5
1990-91 53
.9
1991-92

2007-08 = 78.61%
55
1992-93 .3
57
.1
1993-94
61
1994-95
60
1995-96
63
64
1996-97 .4

YEARS
1997-98 64
.7

1998-99
64
.6
STATIO NS

1999-2000
67
.3 69
2000-01

2000-02
69 72
.9
2002-03 .2

2003-04
72
.7 74
2004-05 .8

2005-06 74
.3
COA L F IR ED THER MA L P OWE R

2006-07 77
. 03
2007-08(Jan 08) 77
.7
ALL IN DIA PLANT L OA D F ACTOR (%) OF
All India Generation
(01.04.2007 - 31.03.2008)

Total: 704450.81 MU
Power Supply Position
Peak Shortage = 16.6%
Energy Shortage = 9.6%
FUTURE PROGRAMME
CAPA CITY AD DITI ON EXPEC TED DUR ING
11 th PLA N (2007-2012)
(Con ve nti ona l) – 78 ,520 MW
HYDRO,
NUCLEAR,
15,627MW,
3,380MW, 4%
20%

THERMAL,
59513MW,
76%
Thermal – 59,513 MW
( Coal – 51,890 MW, Gas- 5343 MW, Lignite- 2280 MW)
Additional capacity expected : New Renewables – 14,000 MW
: Captive – 12,000 MW
Total capacity : 104520 MW
11 TH PLAN PRO GRAMME (2007-
2012)
(Therm al+ Hydro+ Nuclear)
Proposed : 78,577 MW
Expected : 78,520MW
- 9,263 MW capacity already commissioned
- 60,214 MW (77%) under construction
- 10,950 MW - Letter of awards yet to be placed
- Coal linkages available for 96% of coal based
plants
- 88% hydro capacity under
construction/commissioned
- All gas based projects under execution or gas tied
up from local sources
Additional 13,000 MW gas based projects identified, if
gas available for long term at reasonable price
 11TH PLAN PROGRAMME
NON-CONVENTIONAL ENERGY PLANTS

 Installed Capacity (as on 31.03.2008)- 11,125 MW

 11th Plan target- 14,000 MW consisting of
• Wind Power - 10,500 MW
• Biomass Power
Baggasse
Co-generation - 2,100 MW
• Small Hydro
(up to 25 MW) - 1,400 MW
Tot al Ins ta ll ed Cap ac ity Ex pe cted at
th e End of 11 th Plan ( Mar ch , 2012 )

Renewable,
21,760, 10%
Hydro 51,281,
Nuclear, 7,280, 23%
3%

Thermal,
144,435, 64%

Total : 224756 MW
 CA PAC IT Y A DD ITI ON
DURING
XII TH PLAN
(2012 - 2017)
PLAN TOTAL THERMAL HYDRO NUCLEAR
CAPACITY
ADDITION (MW) (MW) (MW)
PLANNED
(MW)
XIITH 82200 40200 30000 12000
 CLEAN
DEVELOPMENT
MECHANISM
 Kyoto protocol-UNFCCC
Signed in 1997, in force from 16 Feb 2005
Ratified by India
Major non-participant- USA
Commits industrialised countries to reducing their
greenhouse gas emissions by, on average, 5%
below 1990 levels.

Six Green Houses Gases covered

CO2, CH4, N2O, HFC, PFC and SF6
Clean Development Mechanism (CDM)
Clean Development Mechanism
Objective of CDM
-Help Annex-I countries to meet their GHG
emission reduction in cost effective way

-Contribute to sustainable development of

the Host country
 Why is CDM important ?

CDM offers additional flow of

revenue
Transfer of State of the art
Technologies to host country
Safe Environment
Three global CDM Criteria
 CDM is voluntary

Real, measurable GHG emission
 Emission reduction should be

additional
Role of CDM Executive Board
Develops procedures for the CDM
Approve new methodology
Accreditation of Designated operational
Entities (DOEs)
Register CDM projects
Issue Carbon Emission Reduction (CER)
Maintain a database of CDM projects
Develops and maintain CDM Registry.
Role of Designated Operational
Entity (DOEs)
Independent Auditors of CDM Project Design
Document
Responsible for Monitoring ,Validation and
Verification and Certification of CDM project
Activity.
 Review the PDD and supporting documentation
 Conduct site visits
 Interact with stakeholders
 Source other relevant additional information from
various sources

Publish the PDD in the web for international
stakeholder comments
CDM Key terms
Baseline
•Emissions level that would have existed in the
business-as-usual situation(in the absence of the CDM
project)
Certified Emission Reductions (CERs)
•Certificatesissued for the emissions reductions
achieved by the CDM projects. They can be soldto
companies and governments in industrialized countries
( 1CER = 1 tonne of CO2 )
Additionality
•A CDM project should be motivated by the
revenuecoming from the CER sales. If it is already an
attractive business without the CER benefit, it is not
additional
 CDM Project Cycle:
Steps towards certified emission reductions (CERs)

Project CDM Executive

Project Idea Registration Board
Owner

Monitoring of Project
Project Emission Reductions* Owner
Project Design Document
Owner

Verification & Certification Operational

of Emission Reductions* Entity
DNA Host Country Approval

CER
Approval Issuance * CDM Executive
CDM Executive Baseline Methodology* * Board
Board

Operational
Validation
Entity * periodically during crediting time
** unless approved method. is used
Important Issues related to CDM
Project
Establishing a Baseline
Additionality

The project emissions are less than baseline
emission

The proposed project should not be a baseline
option
Monitoring Methodology
 Parameters can be easily monitored and
verifiable.
 Project Design Documents (PDD)
•Main document in the CDM project cycle
•Standardized format:
•General description of project activity
•Baseline methodology
•Crediting period
•Monitoring methodology and plan
•Estimation of GHG emissions
•Environmental impacts
•Stakeholders comments
 TRANSACTION COSTS
Transaction costs are those investment which the
project proponent shall invest to monetize the CDM
Benefits.
Transaction costs mainly include:
•Costs towards consultants for developing CDM
project
•Costs towards validation of the CDM projects
•Costs towards registration of the CDM project
with EB
•Costs towards monitoring of emission
reductions
•Costs towards verification of CERs and
transaction costs
 CREDITING PERIOD
• A period of maximum 10 years

• A period of maximum 7 years, with the

potential for renewal for two additional
periods at most.

•The crediting period starts after project registration

 Host Country Approval
Formal confirmation by the hosting country that the
project meets sustainable development objectives
Ministry of Environment & Forest is appointed as the
Designated National Authority (DNA) for CDM in
India having members from various Ministries
Sustainable development criteria are set by the DNA

Social well being: Employment, alleviation of poverty etc.

Economic well being: Investment consistent with needs of the people

Environmental well being: Impacts on the local and global
environment, degradation of resources human health, pollution etc.

Technological well being: Transfer of environment safe and sound
technologies
 Definition of Small Scale Projects
The three agreed small scale project types are :

(iii)Renewable energy project activities with a

maximum of 15 megawatts (MW) or less;
(iv)Energy efficiency improvement project activities
which reduce energy consumption by up to 15
Gigawatt hours (GWh) per year; and,
(v)other project activities that both reduce
anthropogenic emissions by sources and directly
emit less than 15 kilotonnes of CO2 equivalent
(CO2e) annually
They benefit from –simplified rules, especially pre-defined baseline
methodologies –lower fees
Main Sources of GHG Emissions
Energy Sector
 Transport Sector

 Agriculture Sector


Industrial Sector
Power sector is estimated to
contribute around 50% of total CO2
Emissions
 India’s Position
No commitment to reduce emissions under
kyoto protocol
Per capita Carbon di-oxide emission of
India is amongst the lowest in the world.
Country per capita CO2 emission in the
2004 (tonnes of CO2)
 India 1.2
 USA 20.6
 U.K 9.8
 China 3.8
 World 4.5
Source: UNDP Human Development report 2007/08
 Advantage India
•Government initiatives on Capacity Building through
Bilateral & Multilateral activities

•India - High potential of Carbon credits.

•Baseline Carbon di-oxide emissions from power sector

already in place- First CDM country

•Wide spectrum of projects with different sizes

•Dynamic, Transparent & Speedy processing by Indian

DNA (NCDMA) for Host Country Approval

•Vast Technical Human Resource

•Strong Industrial Base

Status of Clean Development Mechanism
(CDM) in India
1. National CDM Authority already given Host
country Approvals to more than 850 Projects
2. 322 Indian CDM projects already registered with
CDM Executive Board out of Total 1016 (32%),
Next is china
3. Main Projects: Waste heat recovery, Small
Hydro, Biomass based Power Generation,
Energy Efficiency improvement in Industries like
cement etc, Wind Power etc
4. 39105730 CER already issued to India
BASELINE
 Baseline and Additionality
of CDM Projects
Validation of project design, 
baseline and monitoring plan 
Emissions baseline
GHG emissions [t CO2-eq]

Additional emission Verification/ 

Certification of
reductions
emission reductions

Emissions with project

Project Year
implementation
Criteria for Establishing Baselines

Transparency
Conservative
Approved Methodology (ACM0002)
and Tool to calculate the emission
factors for an electricity System
Basis of CEA’s CO2 Baseline Database
Methodology for grid connected power
stations from renewable energy sources
Run of river hydro plants, wind plants

Emission factors defined

Weighted Average Emission Rate
Operating margin
Build Margin
Combined Margin
Weighted Average Emission Rate
The weighted average emission factor
describes the average CO2 emitted per unit
of electricity generated in the grid

Absolute CO2 emissions of all power stations

total net generation
Simple operating margin (SM)

It represents the weighted average

emissions rate of all thermal stations in the
regional grid.
Total CO2 emissions
Net generation of all thermal stations
 Build margin (BM)
Five power plant that has been build
recently or most recent capacity addition
comprising 20% of generation in grid-
which ever gives higher generation (In India
second option considered)
CO2 Emission by 20% plants
Net Generation by these 20% plant
 Calculation approach for Build
Margin
Capacity addition analysed at unit level
Commission date and Net Generation and
CO2 emissions required for each unit
Arrange units in Descending order with
respect to commission date
Select units in Build Margins
Calculate Total Emissions from these units
and their Net generation
 Combined margin (CM)
Weighted average of the simple operating
margin and the build margin.

CM = 50% of SM + 50% of BM
Weigh the operating margin and build
margin at 75% and 25% for intermittent
sources like Wind Energy etc.
 Objective of the
CEA’S CO2 Baseline Database
Facilitate prospective CDM project
Developers by accurate quantification of
Carbon di-oxide emission by their projects
Reduction the project development cost
Enhance acceptability of Indian CDM
projects -Would help expedite the clearance
/approval process of Host Country and CDM
Executive Board
 Generation Capacities
(Considered in the database)

Total 358 stations and about 1358 generating

units
Thermal power stations including
 Coal
 Lignite
 Gas
 Diesel
Hydro power projects
Nuclear Power projects
Exclusion
Stations in Islands
Captive Power stations
Non-conventional Energy Sources
 Necessary Data
Gross Generation
Net Generation
Fuel consumptions – ( Primary and
Secondary fuel)

Gross Calorific Values (GCV)

Unburnt carbon in ash – Oxidation factor
 Verified from coal samples collected from various
power stations/mines
 Data Quality
Accurate –
 Extensive plausibility testing and interaction with the
station operators
 Large Population – The data is true representative
sample.
Conservative
 Values assumed for missing data are very
conservative.

Oxidation factor also considered ( Unburnt
Carbon in fly and bottom ash)
 Content of the Database

Database is in Microsoft Excel ( 5 sheets)

Data Sheet
 Station Name
 No of units
 Unit Sizes

Date of commissioning

System

Location
 Net Generation
 Absolute and Specific CO2 Emission

Data is given year wise ( 2000-01 to 2006-07)

 Method1:Calculation of CO2
Emissions
CO2 Emission kg/kwh =
44/12 * fuel consumption
(kg/kwh)* % of Total Carbon in
fuel
Total Carbon in fuel generally not available in case of Coal
- Therefore Method 2 is adopted.
 Method 2:Calculation of CO2
Emissions
2
AbsCO2 ( station ) y = ∑ FuelConi , y × GCVi , y × EFi × Oxid i
i =1

Where:
AbsCO2,y Absolute CO2 emission of the station in the given fiscal
year ‘y’
FuelConi,y Amount of fuel of type i consumed in the fiscal year ‘y’
GCVi,y Gross calorific value of the fuel i in the fiscal year ‘y’
EFi CO2 emission factor of the fuel i based on GCV
Oxidi Oxidation factor of the fuel I
Specific CO2 emissions of stations

AbsCO2 ( station) y
SpecCO2 ( station) y =
NetGen ( station) y
Result Sheet

Different Emission factors ( Wt Average, Operating
Margin, Build Margin, Combined Margin
 Yearly Total CO2 Emissions Region wise
 Emission Factor including Imports
 Total Gross and Net Generation considered
 Year-wise Absolute Carbon Di-oxide Emissions
(in Million tones)

2002-03 2003-04 2004-05 2005-06 2006-07

North 106.8 109.,9 112.2 120.1 129.5

East 66.5 75.5 83.9 92.5 96.3
South 105.3 108.2 105.6 101.1 109.2
West 148.5 144.1 157.7 153.9 157.7

North-East 2.2 2.4 2.4 2,.5 2.6

India 429.4 440.2 462.02 470.8 495.53
Weighted Average Emission
Rate-
as calculated by CEA

2002-03 2003-04 2004-05 2005-06 2006-07

North 0.74 0.71 0.71 0.71 0.72
East 1.11 1.10 1.08 1.08 1.03
South 0.82 0.84 0.78 0.74 0.72
West 0.90 0.90 0.92 0.87 0.85
North-East 0.40 0.43 0.32 0.33 0.39
India 0.85 0.85 0.84 0.82 0.80
Weighted average emission factor, simple operating margin (OM), build
margin (BM) and combined margin (CM) of all Indian regional grids

FY 2006-07 in tCO2/MWh

Average OM BM CM
North 0.74 1.00 0.63 0.81
East 1.00 1.09 0.93 1.01
South 0.72 1.00 0.71 0.85
West 0.86 0.99 0.59 0.79
North-East 0.40 0.70 0.23 0.46
India 0.80 1.01 0.68 0.84

Average is the average emissions of all stations in the grid

OM is the average emission from all the stations excluding the low cost/must run sources.
BM is the average emission of the 20% (by net generation) most recent capacity addition in the
grid.
CM is a weighted average of the OM and BM (here weighted 50 : 50).
Average Emissions from Power
sector
Weighted average emissions rate (tCO2/MWh)
2005-06 --- 0.82
2004-05 --- 0.84
2002-03 --- 0.85
With continuous Effort of Government
average emission rate is reducing
indicating larger commitment
Many CDM projects registered using CEA
Baseline Emission factors.
Potential CDM projects
(1) Renovation & Modernization of old plants,
Hydro Stations in particular

(2) Alternate Fuel use

(3) Waste Heat recovery
(4) Energy Efficiency Improvement
(5) Demand Side Management eg
*Replacement of Bulbs with CFLs
*Load management schemes
Cont.
(6) Reduction in Transmission and Distribution
losses- approx 30% T & D losses
around 7-9% Transmission and Sub transmission losses
around 20% in Distribution sector

Scope of improvement by way of

-Energy Accounting
-Optimization of Transformer load
-Replacement of low load Transformers with
New Efficient Transformers
- IT improvements

(7) Municipal Solid Waste Management.

(8) Cogeneration in sectors like cement etc
(9) Renewable Energy like wind, Biomass etc.
CDM projects under Consideration
in Power Sector
North Karanpura – 3 X 660MW coal based TPPs with
on Super critical technology of NTPC
Renovation & Modernisation of Badarpur Thermal
Power Station 2 X 210 MW of NTPC
Loheri Nagpala Hydro Electric Projects 600 MW of
NTPC
Nimoo Bazgo HEP 45 MW and Chutak HEP 44MW.of
NHPC
R M & U of hydro units of BBMB’s Ganguwal, kotla
and Bhakra LB.
Tapovan Vishnughad HEP 520MW of NTPC
Rampur HEP of SJVNL
 Super critical technology
Approved Methodology ACM0013
Applies to fossil fuel projects that use
more efficient power generation
technology
Not for cogeneration power plant
The fossil fuel is used in more than 50% of
total generation
Calculating Emission Factor for
Supercritical plants
Consider Projects constructed in last 5
years
The capacity of projects must be in the
range of 50% to 150% of the rated
capacity of the CDM project
At least operated for last 1 year
Group must comprises of atleast 10 plants
Identifies top 15 % performer and
calculate Emission factor
METHODOLOGY FOR WASTE
HEAT RECOVERY PROJECTS
ACM0012 :
Consolidated baseline methodology for GHG
emission reductions for waste gas or waste heat
or waste pressure based energy system” -
Version 1 (earlier ACM0004)

CEA Baseline applicable where ever project

activity displaces the usage of Grid electricity.

About 29 Projects from India registered under

Waste heat recovery activity.
 Example
Project Activity: Waste Heat to Power Project by
Installing 10MW turbine with WHRB
Business as Usual – Drawing Electricity from
Southern Grid
Projected Generation = 45360 MWh/annum
CEA Baseline Factor of SR is 0.86 tCO2/MWh.
CDM Project Emissions (PE) = 0 (Project
Emission is applicable only if auxiliary fuel is
burnt along with Waste Heat)
 Cont..
Project Emission = Q * GCV * EF*OF * 44/12
Q – Quantity of Fuel used
GCV – Gross Calorific Value
OF – Oxidation Factor
EF – Emission Factor for the fuel ( Given by IPCC)
Baseline Emissions = EG * EF

EG – Net quantity of Electricity supplied by the project

EF – CO2 baseline emission factor of Grid
Baseline Emission = 45360*0.86 = 39010 tCO/annum
Total Estimated Reduction = BE – PE
39010 – 0 = 39010 tones of CO2
Amount = 39010 * 8 = 312080 Euros/Annum
 Example of Wind Project
Project Activity: Wind Park 100MW (large Scale)
Projected Generation = 312,500MWh/annum
Region = South
Operating Margin = 1.00
Build Margin = 0.71
Combined Margin = (0.75*1.00+0.25*0.71)/2
= 0.93
CDM Project Emissions (PE) = 0
 Cont..

Avoided CO2 Emission = 312,500*0.93 =

290625 tCO2/annum
Total Estimated Reduction = BE – PE
290625 – 0 = 290625 tones of CO2
Amount = 290625 * 8 = 2325000
Euros/Annum
 Example of Hydro Project
Project Activity: Hydro Project 5MW (Small
Scale)
Projected Generation = 17,500MWh/annum
Region = North East
Weighted Average Emission = 0.40
CDM Project Emissions (PE) = 0
 Cont..

Avoided CO2 Emission = 17,500*0.40 = 7000

tCO2/annum
Total Estimated Reduction = BE – PE
7000 – 0 = 7000 tones of CO2
Amount = 7000 * 8 = 56000
Euros/Annum
 Example of Transmission and
Distribution
Improving Energy Efficiency of T&D System
Measured loss in distribution system = 10%
Estimated distribution loss in system after
renovation = 7 %
Total amount of Electricity Saved = 100 MU
Weighted Average Emission = 0.80
CDM Project Emissions (PE) = 0
 Cont..

Avoided CO2 Emission = 100MU * 0.80 kg/kwh

= 8000 tCO2/annum
Total Estimated Reduction = BE – PE
8000– 0 = 8000 tones of CO2
Amount = 8000 * 8 = 64000
Euros/Annum
 Case Study
Project Activity : Replacement of 1000 Nos incandescent
Bulbs (60W) with CFLs of 12 Watt
No of working hours = 8 hrs X 365 days = 2920 hrs
Emission Factor : 0.80 tCO2/MWh
 Calculation
Electricity consumption by Bulbs
= 1000 * 0.060 kW * 2920 hrs
= 175 MWh
Electricity consumption by CFLs
= 1000 * 0.012 kW * 2920 hrs
= 35 MWh
Electricity Saving = 175 – 35 = 140 Mwh
Emission factor = 0.80 tCO2/MWh
CO2 Saved/CER = 140 * 0.80
= 112 t CO2
Assuming Euro 8 /CER
Amount generated = 112 * 8 * Rs 60/Euro = RS 53760
Procedure for Submission of New
Methodology
New Baseline Methodology in prescribed
format + with Draft Project Design
Document
Desk Review by experts
Public Comments
Meth Panel Review and Recommendation
Approval by the CDM-Executive Board
Major Pitfalls for Project Failure
Defining Large Scale or Small Scale Projects
Letter of approval from DNA
Insufficient description of the technology
Insufficient explanation of baseline scenario
Insufficient explanation of Project Additionality
Insufficient information on the stakeholder
consultation process.
Relevant legal requirement not defined.
Important Web Links
www.unfccc.int/cdm
www.cd4cdm.org