December1, 2005

Expert Workshop on CDM Methodologies and Technical Issues Associated with Power Generation and Power Saving Project Activities

Holiday Inn Hotel, CentreVille, Montreal

99 avenue Viger Ouest

December 3, 2005

Objectives

Developing countries are projected to see a dramatic increase in their electricity demand over the next decades (more than 100% increase between 2002 and 2020), and with it a corresponding increase in their GHG emissions. It is not surprising that increased power generation capacity and greater energy efficiency feature, among the sustainable development priorities of many non-Annex I countries. Many hope the CDM could help attract investments in GHG-friendly project activities in those areas. However, the share of power generation projects is decreasing in the overall CDM project pipeline, and energy efficiency projects are much under-represented relative to their potential.

There are many factors at play, but the objective of this workshop is to examine experience thus far with baseline methodologies for power generation and energy efficiency projects, identify key issues and explore options that could improve the applicability of methodologies (and hence facilitate the implementation of projects). Since the creation of the CDM Executive Board at the end of 2001, much progress has been made on the understanding and development of baseline methodologies for EE and power generation. The development of consolidated methodologies is particularly important to enhance consistency and predictability in the development of baselines for similar types of project activities. Nonetheless, it is clear that methodological issues and challenges remain.

Through short presentations and an informal exchange of views with technical experts from a variety of backgrounds, the aim of this workshop is to contribute to a greater understanding of the particular methodological issues and to identify possible methodological options to address them. Insights from the workshop would be shared with the broader CDM community as a contribution to the further development of good and practical baseline methodologies for CDM project activities.

Timing: 1 full day (half day for power generation and half day for energy efficiency)

Participants: Technical experts with expertise relevant to the development of good and practical baseline methodologies for power generation and energy efficiency projects, e.g. project developers, power generation and energy efficiency experts, Meth Panel members, desk reviewers, writers of PDDs.

Organisers: The workshop is organized by the World Bank. For more information, please contact Mahua Acharya () and/or Martina Bosi ().


AGENDA

Session I: CDM Baseline Methodologies for Power Generation projects

Balancing the need for greater standardisation to enhance consistency and predictability with the need to reflect particular circumstances

CHAIR: Johannes Heister, World Bank Carbon Finance Business

1 / 8:45-9:15 /

General Introduction

§  Aim of workshop session - Odin Knudsen, World Bank Carbon Finance Business

§  Update on methodological work within UNFCCC and future outlook - Sudhir Sharma, UNFCCC Secretariat

2 / 9:15 – 9:30 /

Baseline methodologies for grid-connected electricity – Introduction to the Combined Margin baseline calculation - Martina Bosi, World Bank

3. / 9h30-10h30 /

Baseline methodologies for grid-connected electricity generation from renewable sources (ACM 0002): issues emerging when applying it to different projects Michael Lazarus, Stockholm Environment Institute:

Discussants:
§  Kenji Takahashi, Synapse Energy;
§  Sumie Nakayama, J Power
Open discussion on issues and possible ways forward
10h30-10h45 / Coffee Break
4 / 10:45-11:30 / Methodologies for other grid-connected electricity generation projects: Issues/challenges and possible ways forward - Einar Telnes, DNV:
Discussants:
§  Fabian Gaioli, MGM Internacional
§  Marcos Castro (Cordelim)
Open discussion on key issues and possible ways forward
5 / 11:30-12:15 / Additionality – Issues and options for grid-connected electricity projects - Derik Broekhoff, World Resources Institute
Discussants:
§  Rob Fowler (NSW GHG Abatement Scheme)
§  Steve Thorne (South South North, tbc)
Open discussion on issues and possible ways forward
6 / 12:15-12:45 / Wrap-up - CHAIR
Open discussion on CDM methodologies for power generation projects: remaining gaps and issues that need to be addressed, and options/recommendations

LUNCH (12:45-14:15)


Session II: CDM Baseline Methodologies for Energy Efficiency (EE) projects

Assessing Experience to date and exploring methodological issues and barriers to EE projects and possible solutions.

CHAIR: Brian Dawson, UNDP
7 / 14:15-14:40 / Setting the Scene: The energy efficiency potential for cost-effective GHG reductions worldwide and issues and barriers
- Paul Waide, International Energy Agency
8 / 14:40-15:00 /

Review of approved and proposed energy efficiency projects and methodologies and identification of gaps - Pedro Maldonado, Universidad de Chile

9 / 15:00-15:50 / Methodological issues arising across different types of energy efficiency projects
- Kevin James, Quality Tonnes
Discussants
§  Benoit Lebot (UNDP-GEF)
§  Thomas Kleiser, TueV
§  Steven Schiller
Open discussion on issues and possible ways forward
15:50 – 16:15 /

Coffee Break

8 / 16:15-17:15 / Focusing on specific types of EE projects: Methodological issues/challenges and possible ways forward:
·  Energy efficiency in household applications
- A. Ofuso-Ahenkorah, Ghana Energy Foundation
·  Energy Efficiency in industrial applications
- Anne Arquit Niederberger, PolicySolutions
·  Transport
-  John Rogers
·  District heating
-  Lambert Schneider, Oeke Institut
9 / 17:15 – 18:00 / Moving Forward on Energy Efficiency Projects in the CDM - Chair
Discussants
§  Judith Hull (Environment Canada)
§  Johannes Heister (World Bank)
§  Juan Pedro Searle (Chile) (tbc)
Open discussion on key methodological challenges and potential cross-cutting solutions
18:00 / End of Workshop