Small Hydro Power Projects and CDM Benefits A Case Study Ubharah Mini Hydel Power Project 2.

4 MW Small Hydro project, Chamba district, Himachal Pradesh, India

1. Mohit Kumar Gupta 2. Dr. Namita Tiwari 3. Mrs. Sheetal Jamwal

1. 2. 3.

Associate Consultant, C.T.G. Advisory Services India Pvt. Ltd. Email: mohitguptactg@gmail.com Associate Professor, Department of Environmental Sciences Doon University, Dehradun Email: namita0320@gmail.com Department of Environmental Sciences, Uttranchal College of Science & Technology, Dehradun Email : sheetal_jamwal@ymail.com

ABSTRACT
The aim of this paper is to set forth certain salient points on Small Hydro Power (SHP) development and Clean Development Mechanism (CDM) and how the project developer can reap the benefits in the future in terms of environment and carbon credit revenue. Ubharah Mini Hydel Power Project 2.4 MW Small Hydro Project developed by Shakti Hydro Electric Company Pvt. Ltd. with the Clean trade group of this paper as a case study is a 2.4 MW run-of-river hydroelectric project located on Ubharah and Khari Stream of Ravi River at Ubharah and Khari villages in Tehsil Chowari of Chamba district, Himachal Pradesh, India. The paper briefly deals on the principle and concept of CDM and how it can help a project to be viable by the additional income generated from the CDM component.

1 INTRODUCTION
The proposed Hydropower project was planned on Ubharah and Khari Stream of Ravi River at Ubharah and Khari villages in Tehsil Chowari of Chamba district, Himachal Pradesh, India. The power generation project is a run of river hydro project without storage of water. The total installed capacity of the project 2.4 MW (1.2 2) with estimation of annual power generation of 14256 MW. The project relates to establishment of two turbine generators of 1.2 MW to generate the electricity to export to Himachal Pradesh State Electricity Board (HPSEB). Shakti Hydro Electric Company Pvt. Ltd. (project proponent of the project) already signed a power purchase agreement PPA with HPSEB for the sale of total power generated for partial fulfillment of HPSEBs power requirements.

2. SMALL HYDRO POWER

Small Hydro Power is generally define as hydropower below 15MW and utilizes low head ranging from 3m to 20 m. It is further classified into mini hydro; micro hydro and Pico hydro. Mini hydro ranges from 10MW to 500MW Micro ranges from 500KW Pico hydro is below 10KW 2.1 Benefits of Small Hydro

The decentralize nature of this form of power makes it suitable for the rural population that are disperse in nature. It offers employment opportunities to the rural populace who are engage in labour and material supply. The SHP is environmentally friendly for the following reasons: Does not generate air pollution No waste disposal and No fuel cost involves. Unlike the large dams, it does not result to significant environmental impacts such as loss of habitat, change in water quality and salination.

3. Clean Development Mechanism (CDM) & Its Benefits

The Clean Development Mechanism (CDM) is to Assist parties not included in Annex 1 to the convention in achieving sustainable development and in contributing to the ultimate objective of the convention and to assist parties included in Annex 1 in achieving compliance with their quantified emission limitation and reduction commitment.

3.1 CDM Life Cycle

According to the UNFCCC & Kyoto Protocol, the CDM project has five stages: 1. Identification and formulation 2. National approval 3. Validation and Registration 4. Monitoring 5. Verification/Certification The first three stages occur during pre implementation of project while the last two are during the lifetime of the project.

3.2 Carbon Finance

Carbons funds available include the prototype carbon fund (PCF), the Community Development Carbon Fund (CDCF). Of note are Eco-Securities that specialize in developing carbon credits from CDM projects.

3.3 Barriers Impeding Development of Renewable Energy CDM Projects

Certain factors are militating against the development of small-scale renewable energy projects. These includes 1. High transaction cost of documentation, validation, on going monitoring and verification of emission reductions. 2. Renewable energy pay most of the their cost upfront 3. Cumbersome carbon accounting and the test of whether the project would have happened without the carbon credit. 4. Transaction cost of some micro hydro projects would be several hundred Euros per ton of carbon di oxide (CO2) equivalent against average price of CDM credits of less than 10Euros/tonne. 5. CDM is dominated by big Non Renewable projects that generate more credit such as capturing and destroying HFC-23 and NO2 . 6. Renewable Energy make up a mere 2 percent of CDM credits

4. Ubharah Mini Hydel Power Project 2.4 Mw Small Hydro Project Summary

A.

Title of the small-scale project activity

Ubharah Mini Hydel Power Project 2.4 MW Small Hydro Project The proposed Hydro power project is planned on Ubharah and Khari Stream of Ravi River at Ubharah and Khari villages in Tehsil Chowari of Chamba district, Himachal Pradesh, India. The power generation project is a run of river hydro project without storage of water. The total installed capacity of the project 2.4 MW (1.2 2) with estimation of annual power generation of 14,256 MW. The project relates to establishment of two turbine generators of 1.2 MW to generate the electricity to export to Himachal Pradesh State Electricity Board (HPSEB). Development in the Host Country New economic activities that deliver or make use of energy services are expected to emerge It is estimate that the project would result in an annual emissions reductions of 11,975 tonnes of CO2. AMS-D.1 Grid connected renewable electricity generation Version 15, EB 50 (Valid from 31 Oct 09) The baseline for the project activity in accordance with Appendix B of the simplified modalities and procedures for small-scale CDM project activities tonnes CO2/yr. Date of completion of the baseline study: 01 Jan 2010 Crediting period Expected operational period of the project is 30 years. Crediting period is 10 years starting from 01 Jan 2010 The project will apply a monitoring methodology Type AMS-1D, and as outlined in Appendix B of the simplified modalities and procedures for small-scale CDM project activities, monitoring shall consist of metering Baseline emissions = Annual electricity production by hydro facility (MW) emissions factor for current mini-grid system. Annual emissions = 11,975 tonnes CO2eq/yr BEy = EGy EFy BEy = 14256 MWh 0.84 kg CO2 e/MWh BEy = 11975.04 tCO2 e /year

Description of the small-scale project activity

Contribution to Sustainable

Environmental component B. Baseline methodology

C.

Duration of the project activity

D.

Monitoring methodology and plan

E.

Calculation of GHG emission

F.

Environmental impacts Assessment

Environmental Impact Assessment is not required for the small-scale renewable energy project activity.

G.

Stakeholders comments

The stakeholders were engaged in various meetings and consultations.

5. CONCLUSION AND RECOMMENDATIONS

The issues raised in this paper borders on the need for Small Hydro Power (SHP )project developers to take advantage of accessing funds that currently is being overlooked. This will result to the improvement of socio economic activities where these projects are hosted. In view of the above scenario, we Recommend the following: The should be a public (Designated National Authority), private and civil society partnership in information dissemination on CDM projects and its inherent benefits. Designated National Authoritys should put forth simplified documentation on CDM project development. Tertiary institutions should include CDM development in their curriculum Designated National Authoritys should put forth an action plan for the dissemination of information on CDM project development. The transaction cost of documentation on developing renewable energy CDM projects should be reduce by the CDM Authority. Carbon credit generated by CDM projects should be of high value so as to attract more investment in renewable energy projects

6. REFERENCES
Carbon Market Europe, 24 June 2005, http//www.pointcarbon.com Carbon Trading; A Critical Conversion on Climatic Change, Privatization and Power.Developemnt Dialogue no.48 September 2006 Establishing National Authorities for the CDM: A Guide for the Developing Nations (2002) Jiandong, T (2004) Small hydro Power: Chinas Practice Hangzhou. China Water Press Karekezi, S etal(1997):Renewable Energy Technology Technologies in Africa London: Zed Books Kyoto protocol UNFCC/CP/1997/L.7/ac 10,1997 Kyoto, Japan Malcolm, D (2005). Wind of Change in Development Magazine. Issue No.32 New Internationalist-N391, July 2006] Small Hydro Power for Productive Use in Rural Areas-UNIDO Regional Center for Small Hydro Power in Africa, Abuja Nigeria: A Commemorative Publication 2006 UNFCCC, Marrakech Accords UNIDO Regional Industrial Center Renewable Energy for Rural Industrialization and Development in Nigeria (2003)