FEASIBILITY AND FINANCIAL ANALYSIS OF USE OF CDM &DDG IN DISTRIBUTION

OBJECTIVE
PROMOTION & DEVELOPENT OF NON CONVENTIONAL AND RENEWABLE ENERGY PROGRAMMES/PROJECT. TO MAKE BSES EFFECTIVE IN QUALITY & RELIABILITYOF POWER SUPPLY. TO PROMOTE & FACILITATE PROJECT FOR AVAILING CARBON CREDIT UNDRE CDM OF UNFCC.

Intergovernmental Panel on Climate Change (IPCC)

IPCC was established in 1988 by UNEP(United Nation Environment Programme) and WMO to provide policy makers, scientific information on climate change. IPCC Report concluded that Green House Gases (GHG) will result in warming of earth by next century, unless measures were adopted to limit emissions.

The United Nations Framework Convention on Climate Change

Contd.

On the basis of Report, United Nations Framework Convention on Climate Change (UNFCCC) was formulated in May 1992 for global climate protection. India signed UNFCCC on 10th June 1992 and ratified that in 1993.

Kyoto Protocol to The UNFCCC

Kyoto Protocol to the Convention, established the Conference of Parties (COP) as its supreme body. COP3 held in Kyoto, Japan agreed to legally binding set of obligations to reduce their emissions of GHG.
Contd

Kyoto Protocol to The UNFCCC

Contd.

Commits Industrialised Countries (Annex I Parties / Countries) to reduce their Green House Gas (GHG) emissions by, on average, 5.2 % below 1990 levels in 2008-12 (Phase I). Individual, quantified emission targets for each Annex-1Country fixed.

Green House Gases

Six Green House Gases covered
Carbon Dioxide (CO2) Methane (CH4) Nitrous Oxide (N2O) Hydro fluorocarbons (HFC) Per fluorocarbons (PFC) Sulphur Hexafluoride (SF6)

Flexible Mechanisms

Clean Development Mechanism (CDM)

Joint Implementation (JI) Emission Trading (ET)

Clean Development Mechanism Contd. (CDM)

Clean Development Mechanism instituted in 2001 under Kyoto Protocol. was

Came into force on 16th February 2005 after Russia and European Community ratified it. Major non participants: USA and Australia.

WHAT IS CARBON CREDIT

(Annex I countries of Kyoto Protocol) committed to reduce their CO2 emission Developing countries (Non Annex I countries) can take up projects which projects generate reduction in Green House gases This reduction in GHG can be sold to Annex I countries to meet their commitment 1 CER (Certified emission Reduction) = 1 MT of CO2 equivalent GHG reduction. Process of transaction
NON ANEX 1 COUNTRY UNFCC ANEX 1 COUNTRY

GENERATE CER

REGESTER CER

BUY CER

CDM Opportunities in distribution network

The United Nation for Climate Change Convention (UNFCCC), the apex body for CDM projects, has developed two baseline and monitoring methodologies under which the T&D loss reduction projects can be applied for CDM. They are AMS IIA: Supply side energy efficiency improvements transmission and distribution AM0067: Methodology for installation of energy efficient transformers in a power distribution grid

 According to these methodologies, the implementation of EE measures for T&D loss reduction can include: Up-grading the voltage on a transmission or distribution system Replacing existing transformers with more efficient transformers (e.g., replacement of a silicon steel core transformer with an amorphous metal transformer)

AMS IIA: Supply side energy efficiency improvements transmission and distribution
Existing LT Distribution Network

Present LT Distribution system consists of 3 phase distribution transformer with a capacity of 100 KVA /400KA which feeds supply to all the consumers through 3 phase 4 wire LT network.

DISADVANTAGES OF EXISTING SYSTEM

Lengthy LT Lines.
Voltage drop at the consumer end. High I2R losses . Frequent motor burn-outs due to low voltage and consequent expenditure on repairs. Transformer failures-expenditure towards repairs and inconvenience to the consumers.

SOLUTION - HVDS
To improve quality of supply and reduce losses, HVDS is recommended
High Voltage Distribution System (HVDS) In this system , 11 KV lines are extended to as nearer to the loads as possible and erection of small size single and three phase transformers of 5, 10 or 15 KVA is done Aim at LT less system starting from Less LT

Unavoidable short LT lengths to be covered by insulated wires like ABC (Aerial Bunched Cables)

ADVANTAGES OF HVDS
The registered customers will feel ownership and take responsibility and not allow others to meddle with the L.T. Network Prevention of unauthorized loads by the consumers themselves since the distribution transformer may fail if loaded beyond its capacity In the event of equipment failure only 2 or 3 customers will get affected instead of 25 to 30 customers in original system High quality of supply since there is practically no voltage drop Less burnouts of motors because of good voltage and less fluctuations Considerable reduction in line losses and consequent savings in power purchase cost Since Losses are reduced considerably , Power can be supplied to additional loads without any further investment on infrastructure Accidents due to touching of snapped conductors reduced due to the fact breaker trips at substation since the line is at 11 KV potential that the

CALCULATION OF ENERGY LOSS

E= 11x11x P x P x R x L x LLF 0.415x0.415 2 x DF x LDF

Where P Max demand in kVA L - Line Length in km R - Equivalent resistance in ohm/ km LLF- Loss load factor, for distribution systems, loss load factor is given by 0.2 LF + 0.8 (LF)2, Where LF is the load factor and is defined as the ratio of average load and maximum demand of the total group of consumers. DF - Diversity factor (DF) is defined as the ratio of sum of individual maximum demand and sum of simultaneous max demand of total group of consumers LDF: LDF represents the Load Distribution Factor and is calculated as following Load Distribution Factor = P x L Km x kva

BSES

Summation of the Energy losses at individual DTR level would give the energy losses in a feeder and summation of energy losses in a feeder would provide the total energy losses in the baseline.
Summation of the Energy losses at individual DTR level would give the energy losses in a feeder and summation of energy losses in a feeder would provide the total energy losses in the baseline. EL= ELDTR ELDTR =ELFEEDER ELFEEDER =ELBASELINE EL Energy losses given by the equation ELDTR Energy losses at the DTR level (i.e. from distribution transformer to consumers) ELfeeder Energy losses for LT sections of the feeder ELBaseline Baseline energy losses m Total number of feeders covered under the project n Total number of DTRs in a Feeder

Emission reduction calculation based on technical energy loss reduction is described below

ERy = [(EL s ) / {(1- 0.1}*BEF]- Leakage Emission Where: ERy Emission Reductions in tCO2e ELs Savings in technical loss of energy in MWh BEF Baseline Emission Factor in tCO2e/MWh Leakage Technical loss attributable to existing equipment being used outside the project boundary

Savings in technical loss of energy will be calculated as:

ELS = (ELB ELP) Where: ELs - Savings in technical energy loss of energy in MWh ELB Baseline energy loss in MWh ELP Project energy loss in MWh

Ex-ante calculation of emission reductions:

ELS = (ELB ELP) Baseline technical energy loss .. (1) ELB = Aggregate baseline energy loss in programme (MWh) = 48777.11906 MWh Project technical energy loss . (2) ELP = Aggregate project energy loss (MWh) = 4487.7711906 MWh Savings in technical loss . (3) ELs = (1) (2) =48777.11906 4487.7711906 MWh = 48289.34787MWh

Baseline Emission Factor

BEF = WOM* EF OM, Y + WBM * EF BM,y = 0.83 * 1.01+ 0.17 * 0.68= 0.9539 tCO2/MWh Emission Reduction ERy = [(EL s) / {(1- 0.1}*BEF] - Leakage emission -------(D) Leakage Emission -------- (5) As per AMS.II.A leakage emission are considered as zero = [(48289.34787)/ (1-0.1)]*0.9589 - 0 = 51181.342 tCO2e

DISRIBUTED GENERATION

SOLAR PV PLANT SYSTEM CONCEPT & PLAN

APPROVED METHODOLOGY AMS 1D GRID CONNECTED RENEWABLE ENERGY GENERATION. SOLAR PV SYSTEM CAPACITY 10MW. POWER GENERATEDBY THE SYSTEM WILL WE USED DURING PEAK LOAD. DURING OFF PEAK THE POWER GENERATED WILL BE TRADABLE.

 POWER GENERATED FROM THE PV SYSTEM SHALL BE USED BY THE HOUSE IN CASE LOAD EXCEEDS GENERATION POWER SHALL BE EXPORTED TO GRID DURING NO LOAD/LESS LOAD CONDITIONS POWER GENERATED SHALL ALSO PROVIDE BACK-UP POWER TO EMERGENCY LOADS DURING GRID FAILURE FOR WHICH A BATTERY BANK IS ALSO THERE.

ROOF TOP SPV SYSTEM-SYSTEM BENEFITS

COMPLETE SYSTEM OF 5 MWp SHALL OPERATE AS A SMALL DISTRIBUTED UTILITY HAVING MAJOR BENEFITS: SYSTEM SHALL USE EXISTING ROOF TOP SPACE SHALL PROVIDE MAJOR VOLTAGE SUPPORT TO THE DISCOM. SHALL PROVIDE IMMEDIATE RELIEF TO THE DISCOM BY EXCESS GENERATION DURING DAY TIME. SHALL PROVIDE EMERGENCY POWER RELIEF DURING POWER SHUTDOWN SITUATIONS. SHALL LOWER THE LOAD ON THE L.T. SYSTEM.

ROOF TOP SPV SYSTEM-SYSTEM COMMERCIALS

EACH 1 KWp SYSTEM TO COST 2.5 LACS APPROX.
PROPOSAL -1 EACH BENEFICIARY TO PAY 50% OF THE COST, BALANCE COST BY MNRE, GOI. UTILITY TO GIVE CREDIT FOR GENERATION EXPORTED TO THE GRID AT CERC TARIFF. CONSUMER TO BE BILLED FOR NET ENERGY AT REGULAR UTILITY TARIFF. UTILITY TO GET COMPENSATION THROUGH GBI UNDER SOLAR MISSION.

PROPOSAL-2 EACH BENEFICIARY TO PAY 100% OFPROPOSALTHE COST, ENTIRE GENERATION TO BE ALLOWED FOR BILLING AT CERC TARIFF.

The combined margin emissions factor is calculated as follows:

EFgrid , CM , y = EFgrid , OM , y x WOM + EFgrid , BM , y x WBM Where: EFgrid , BM , y = Build margin CO2 emission factor in year y (tCO2 /MWh) EFgrid , OM , y = Operating margin CO2 emission factor in year y (tCO2/MWh) WOM = Weighting of operating margin emissions factor (%) WBM = Weighting of build margin emissions factor (%)

Baseline emissions:
The baseline emissions for the project activity will be multiplication of the net electricity exported to grid and the combined margin grid emission factor. BE y = EG y EFgrid , CM ,y Where: BEy= Baseline emissions in year y (tCO2/yr). EGy= Electricity supplied by the project activity to the grid (MWh).

Ex-ante calculation of emission reductions:

EFgrid , CM , y = 1.4027 tco2 /mwh EG y = 16644 mwh BE y = EG y x EFgrid , CM , y = 1.4027 x 16644 = 233466 tco2 per annum

ABOUT BSES DELHI

Particular Area Customer density Total registered consumer Peak demand Consumption per year Unit Sq. km Consumer/sq.km Lack MW MU BYPL 200 4230 10.4 900 500 BRPL 750 1360 12.2 1420 8000 BSES 950 1964 22.6 2320 13000

Jawaharlal Nehru Stadium, Delhi

The 53,800 sq m Teflon-coated roof. It covers an area of 100 acres. 1.076 MW can be generated

10 MW PLANT DESCRIPTION
Project cost Project cost per MW TARIFF SUMMARY Levelised tariff Rs/ kwh Generation based incentives GBI period 15.56 RS RS11.81/ kwh 10 year 174.2 cr 17.42 cr /MW

Tariff for PPA

CER Benefits

3.75/ kwh @1.5annual escalation

Total CER generated

CER selling price 1 EURO

13281.91
9 EURO =68.5

CER IN LAKH

81.8829875

MUNICIPAL SOLID WASTE

Approved Methodology AM0025 Avoided emissions from organic waste through alternative waste treatment processes Type I - Renewable Energy Projects (Small Scale) Sub Category: D, Grid connected Renewable Electricity Generation (Renewable Biomass based Power Project) Hence the project activity falls on Type III.E and Type I.D categories of small scale project activities.

HAZARDS OF DUMPING GARBAGE

NITROUS OXIDE (N2O) is produced by the burning of Garbage in Dumping yards under uncontrolled conditions. It has 179 times more Global warming potential than CO2 Methane is formed by the decomposition of Organic matter. Main Sources are Landfills. It has 24 times more Global Warming Potential than that of CO2

Technology Choices available for the Scientific Disposal of Garbage ( MSW )

Pelletisation Combustion / Incineration Land filling Pyrolysis Bio-methanation Composting

Pelletisation & Incineration

The ONLY PROVEN AND TIME TESTED TECHNOLOGY for Heterogeneous Indian Garbage. Widely implemented in EUROPE for the Disposal of MSW. Suitable for the Indian cities generating more than 50Tpd MSW The Combustibles are separated for the production of RDF, the fine sand that comes out is a good soil en richer. The left out inert materials like big stones can be used for filling intothe low lying areas. RDF is a good coal substitute.

 Emissions of RDF burning are superior to that of coal burning with less NOX and SO2. RDF as a Coal substitute has a good track record Instant MSW volume reduction is possible only through incineration Energy recovery from Garbage can be through RDF/electricity RDF incineration is economical than Garbage incineration. No Dioxines or Furons emissions.

PELLETISATION - PROCESS FLOW CHART

GARBAGE DRYING IN GREENHOUSE SEPARATION SIZE REDUCTION DENSIFICATION/PELLETISATION

REFUSE DERIVED FUEL - PELLETS

RDF (Refuse Derived Fuel) Characteristics

Calorific Value: 2500 3000 Kcal/Kg High Volatile Matter ( 60% ) Emission characteristics of RDF are superior compared to coal with less NOX, SOX, CO & CO2 Bio fertilizer and the Fly ash are the useful by products

Proximate Analysis Moisture : Volatile Matter : Ash Content : Fixed Carbon : Ultimate Analysis Carbon : Hydrogen : Nitrogen : Sulphur :

in % 7.2 64.6 21.9 6.3 in % 36.70 5.30 1.21 0.32

Emission Reductions
To calculate the emission reductions the project participant shall apply the following equation: ERy = BEy PEy Ly Where: ERy is the emissions reductions in year y (t CO2e) BEy is the emissions in the baseline scenario in year y (t CO2e) PEy is the emissions in the project scenario in year y (t CO2e) Ly is the leakage in year y (t CO2e)

Ex-ante estimation of emission reduction:

Parameter
BE y PE y Ly ER y

Value
1,466,149 346,125 531 1119493

Unit
Ton CO2 Ton CO2 Ton CO2 Ton CO2

Remarks

Description

Cost(In Million INR)

Total Project Cost Equity Debt Equity debt ratio Levelized cost of Tariff without MNRE grant (25 year)

1358.92 30 70 30:70 INR 6.37 / kWh

Description Total Project Cost Equity Debt Equity debt ratio

Cost(In Million INR) 1358.92 30 70 30:40

Levelized cost of Tariff without MNRE grant INR 5.44 / kWh (25year) and expected CDM revenue (25 year) (assuming 1CER=15 EURO and 1 EURO = INR 65)

Conclusion
Discom will able to meet peak power demand Self generated renewable energy. Reduce AT&C losses Reduce generation cost & can get tariff margin Benefit of CER Quality & reliable power

Thank You