Cambodian Model Case Project Ide

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					                           Training Workshop for PIN & Baseline,
                               ICS-CDM/JI program in Cambodia
                                           15th November, 2004
                                        Phnom Penh, Cambodia




Cambodian Model Case:
 Project Idea Note (PIN)

            Fumio Takahashi
   Kyoto Mechanisms Business Office
 General Environmental Technos Co., Ltd.
             (Osaka, Japan)
                 Contents

• What is PIN?

• Key concepts of PIN documents

• Marubeni Corp. Model Case in Cambodia
      What is Project Idea Note (PIN)?

• PIN is a document that provides basic
  information about a project

    Objective
    Description & technology
    Developer and sponsors
    Expected environmental & social benefits
    Finance
     What are the key concepts on PIN?
• GHG abatement
   Project is supposed to reduce CO2 emissions
• Additionality
    Project is supposed to overcome at lease one of the
  following barriers:
        a) Investment barrier
        b) Technical barrier
        c) Barrier due to prevailing practice
        d) other barriers
• Sustainable development of host country
• Viability of the project activity
               Project objectives
 • Briefly state what you hope to accomplish
 • Mention environmental challenges
 • Indicate how the project can contribute to
   sustainable development of the host country

Marubeni Model Case
 Marubeni Model Case
For Cambodia’s sustainable development and continued
 For Cambodia’s sustainable development and continued
recovery, the national power system needs to confront some
 recovery, the national power system needs to confront some
issues related to electrification rate, efficiency and
 issues related to electrification rate, efficiency and
environmental impact. Our renewable energy project using
 environmental impact. Our renewable energy project using
wind and solar power in Mondul Kiri (the Project) attempts to
 wind and solar power in Mondul Kiri (the Project) attempts to
support sustainable development of the Province by supplying
 support sustainable development of the Province by supplying
electricity from renewable energy to isolated local villages with
 electricity from renewable energy to isolated local villages with
no or poor access to electricity so far.
 no or poor access to electricity so far.
              Description & activities
 • What drives the sponsor to do the project
 • New technology/process/application & key
   equipment to be used

Marubeni Model Case
Marubeni Model Case
The Project implements 115 small-size hybrid systems of wind and solar
 The Project implements 115 small-size hybrid systems of wind and solar
power generation with a total of 1.4MW for installed capacity. These hybrid
 power generation with a total of 1.4MW for installed capacity. These hybrid
power generators are implemented in 21 communes and 90 villages in the
 power generators are implemented in 21 communes and 90 villages in the
Province to supply electricity 24 hours a day throughout the year, or 8,760
 Province to supply electricity 24 hours a day throughout the year, or 8,760
hours annually. The electricity generated from renewable energy by the
 hours annually. The electricity generated from renewable energy by the
Project may replace electricity from diesel-powered mini-grids. The
 Project may replace electricity from diesel-powered mini-grids. The
estimated amount of CO22to be reduced is 2,759 tCO22annually throughout
 estimated amount of CO to be reduced is 2,759 tCO annually throughout
the Project activity. The electricity will be supplied to the villagers at lower
 the Project activity. The electricity will be supplied to the villagers at lower
rates (US$0.10/kWh for an indicative rate) in return for their assistance in
 rates (US$0.10/kWh for an indicative rate) in return for their assistance in
observing and monitoring the project facilities.
 observing and monitoring the project facilities.
                  New technology:
           Hybrid power generator System
●Cygnus Mill

                                                              ●Example of Installation


                                                                                  Wind turbine
                                                                                  generator




●Basic System Configuration                                  Photovoltaic
                                                               module
                                Dump
                               resistor

                  DC voltage              12-DC voltage
                      →                        →
   Wind turbine
                           Controller                 Load
   generator




                         VRLA batteries
                          for cycle use


 Photovoltaic module
        Project developer/sponsor

• Developer is the main project driver/initiator
• Sponsor is the eventual owner


Marubeni Model Case
Marubeni Model Case

Name of Organization: Marubeni Corporation
Name of Organization: Marubeni Corporation

Function of Proponent in the Project: Intermediary
Function of Proponent in the Project: Intermediary

Project Sponsors: IPP to be determined
Project Sponsors: IPP to be determined
          Type of project & project location
Marubeni Model Case
Marubeni Model Case
Type of Project
Type of Project
Greenhouse Gases Targeted: CO22
 Greenhouse Gases Targeted: CO
Type of Activities: Abatement
 Type of Activities: Abatement
Field of Activities: Renewable Energy/Generation of electricity from wind
 Field of Activities: Renewable Energy/Generation of electricity from wind
and solar power
 and solar power
Location of Project
Location of Project
Region: Southeast Asia
Region: Southeast Asia
Country: Kingdom of Cambodia
Country: Kingdom of Cambodia
Cities: Sen Monorom, Mondul Kiri Province
Cities: Sen Monorom, Mondul Kiri Province
Brief Description of Location:
Brief Description of Location:
 The candidate plantation site is located in the Mondul Kiri Province (the Province),
  The candidate plantation site is located in the Mondul Kiri Province (the Province),
 Cambodia. The Province is located 390 km from Phnom Penh, along Cambodia’s
  Cambodia. The Province is located 390 km from Phnom Penh, along Cambodia’s
 eastern boarder with Vietnam. The total land area is 14,682km2, which is
  eastern boarder with Vietnam. The total land area is 14,682km2, which is
 equivalent to 8.11% of the entire land area of Cambodia (181,035km2), and 76%
  equivalent to 8.11% of the entire land area of Cambodia (181,035km2), and 76%
 of the Province is covered with forests. The population of the Province is
  of the Province is covered with forests. The population of the Province is
 approximately 40,000, having an annual growth rate of 2.49%. The Province
  approximately 40,000, having an annual growth rate of 2.49%. The Province
 comprises five districts with 21 communes and 90 villages altogether.
  comprises five districts with 21 communes and 90 villages altogether.
   Project site:
Mondul Kiri Province
           Isolated local villages
            within the project site




Pu Tru village in Mondul Kiri, one of the isolated local
  villages with no electricity within the project site
                Project schedule

Marubeni Model Case
Marubeni Model Case

Earliest Project Start Date: April 2005
Earliest Project Start Date: April 2005

Current Status: Planning
Current Status: Planning

Time Required Before Becoming Operational:
Time Required Before Becoming Operational:
  Earliest date of commissioning hybrid facilities of wind and
   Earliest date of commissioning hybrid facilities of wind and
  solar power generation is expected to be January 2006.
   solar power generation is expected to be January 2006.

Project Lifetime: 30 years (2006-2035)
Project Lifetime: 30 years (2006-2035)
          GHG abatement/scenarios
• Indicative annual CO2 abatement
• Description of baseline and project scenarios


Marubeni Model Case
Marubeni Model Case
Estimate of Greenhouse Gases Abated/CO22Sequestered:
Estimate of Greenhouse Gases Abated/CO Sequestered:
2,759 tCO /y
2,759 tCO22/y
Before 2008: 5,518 tCO22(for 2 years)
Before 2008: 5,518 tCO (for 2 years)
During 2008-2012: 13,795 tCO22(for 5 years)
During 2008-2012: 13,795 tCO (for 5 years)
During entire Project Lifetime: 82,770 tCO22(for 30 years)
During entire Project Lifetime: 82,770 tCO (for 30 years)
Baseline Scenario: Type I.A. (UNFCCC, 2003b)
Baseline Scenario: Type I.A. (UNFCCC, 2003b)
        Global and local environmental benefits

 • Global benefits
 • Site-specific local benefits

Marubeni Model Case
Marubeni Model Case
The Project is expected to reduce anthropogenic GHG emissions by
 The Project is expected to reduce anthropogenic GHG emissions by
displacing diesel-fuelled electricity generation with clean energy (zero GHG
 displacing diesel-fuelled electricity generation with clean energy (zero GHG
emission) generated by wind power. As stated above, the proposed project
 emission) generated by wind power. As stated above, the proposed project
activity is estimated to reduce 2,759 tCO2 annually, totaling approximately
 activity is estimated to reduce 2,759 tCO2 annually, totaling approximately
82,770 tCO2 for the entire project lifetime (30 years).
 82,770 tCO2 for the entire project lifetime (30 years).
Sen Monorom is gaining population in recent years. The expansion of
 Sen Monorom is gaining population in recent years. The expansion of
designees diesel-fuelled electricity generation in accordance with this
 designees diesel-fuelled electricity generation in accordance with this
situation could have unfavorable effects on their valuable natural environment.
 situation could have unfavorable effects on their valuable natural environment.
By replacing electricity by existing diesel powered stations as well as those
 By replacing electricity by existing diesel powered stations as well as those
that would have been introduced in future with electricity from renewable
 that would have been introduced in future with electricity from renewable
energy, the local environment will be preserved or improved.
 energy, the local environment will be preserved or improved.
              Socio-economic aspects
 • Contribution to sustainable development
 • Possible direct effects (e.g., employment creation,
    capital required, foreign exchange effects)
 • Possible other effects
Marubeni Model Case
Marubeni Model Case
The government of Cambodia formulated “Power Sector Strategy” in
 The government of Cambodia formulated “Power Sector Strategy” in
1999 to develop an adequate and reliable source of electric power
 1999 to develop an adequate and reliable source of electric power
over the next 20 years. Under the strategy, the government
 over the next 20 years. Under the strategy, the government
established policies and action plans for power generation and
 established policies and action plans for power generation and
transmission including provincial/rural electrification and renewable
 transmission including provincial/rural electrification and renewable
energy development plans. Providing electricity for rural areas is a
 energy development plans. Providing electricity for rural areas is a
key factor in the rehabilitation and sustainable development of
 key factor in the rehabilitation and sustainable development of
Cambodia, as electricity is indispensable for the improvement of living
 Cambodia, as electricity is indispensable for the improvement of living
standards and agricultural/small-scale industrial development in rural
 standards and agricultural/small-scale industrial development in rural
areas.
 areas.
                               Finance
 •   CER price, crediting period
 •   Details of capital costs, maintenance costs
 •   Financing plan
 •   IRR (project Internal Rate of Return)
Marubeni Model Case
Marubeni Model Case
Estimated Initial Cost: about US$ 2.73 M on the gross estimate basis for
 Estimated Initial Cost: about US$ 2.73 M on the gross estimate basis for
115 hybrid systems
 115 hybrid systems
Estimated Maintenance Cost: US$ 52,273 for 115 hybrid systems
 Estimated Maintenance Cost: US$ 52,273 for 115 hybrid systems
Revenue from Selling Electricity: total US$ 245,280 from selling 2,452,800
 Revenue from Selling Electricity: total US$ 245,280 from selling 2,452,800
kWh at the indicative rate of US$ 0.10/kWh
 kWh at the indicative rate of US$ 0.10/kWh
Internal Rate of Return: 0.13% without a revenue from CERs
 Internal Rate of Return: 0.13% without a revenue from CERs
                         1.78% with CERs (at the rate of US$ 10/tCO22)
                          1.78% with CERs (at the rate of US$ 10/tCO )
                         for the Project over the first 15 years, or the durable
                          for the Project over the first 15 years, or the durable
                         years for the hybrid system
                          years for the hybrid system

				
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