cdm implementation experiences from bhutan n.
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CDM Implementation Experiences from Bhutan

CDM Implementation Experiences from Bhutan

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CDM Implementation Experiences from Bhutan

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  1. CDM Implementation Experiences from Bhutan National Environment Commission (NEC) (Designated National Authority for CDM)

  2. Background Bhutan’s significant step to address Climate Change issues • Signed UNFCCC at Rio de Janeiro in 1992 • Ratified UNFCCC during the 73rd Session of National Assembly in 1995 • Party to the Convention on 25th August 1995 and to the Kyoto Protocol on 26th August 2002 to participate in CDM Projects • NEC designated as the National Authority for CDM and DOE as the implementing agency for RGoB • NECS - focal institution for the UNFCCC

  3. Background on CC … cont. • Submitted the Initial National Communication at the 6th Conference of Parties in November, 2000 • Completed first National Inventory on Greenhouse Gas Emission • Commissioned first CDM Project (pilot) in Bhutan • Completed National Adaptation Programme of Action (NAPA) • Currently working with UNDP/GEF for preparation of Second National Communication

  4. Pilot Projects • Micro Hydro Project in Chendebji • 70 kW ( Kilowatts) • E7 financing • 500 tons CO2 sequestration • Feasibility study for Dagachhu Hydropower CDM Project Run-of-the-river hydropower with installed capacity 107 MW with annual energy generation of 420 GWh 3. Pilot forestry CDM project • Enviro-trade (UK), Edinburgh Center for Carbon Mgmt, Namsay Consulting (Bhutan) • Only “concept note”. Proposal to be prepared only after approval by RGOB.

  5. Pilot CDM Project in Chendebji village (Micro Hydel) Funded by: E7 Fund for sustainable energy development Implementing Agency: Department of Energy, Royal Government of Bhutan

  6. Project Location Important Towns Major Rivers Roads International Boundary Gasa Lhuentse Punakha TrashiYangtse Trongsa Jakar Thimphu WangduePhodrang Autsho Paro Ha Trashigang Zhemgang Mongar N Chhukha Pemagatshel Dagana Tsirrang Samtse Sarpang Gelephu SamdrupJongkhar Panbang Phuntsholing Chendebji Thimphu 150km

  7. Objectives of the Project • To demonstrate the “Clean Development Mechanism (CDM)” under the Kyoto Protocol of the UNFCCC on the model of a micro hydro power plant • To construct a micro hydro power plant for Rural Electrification of Chendebji village • To present constraints encountered and corrective measures undertaken at various international discussion forums in order to contribute to the CDM rule making process • To pilot CDM project that has direct benefit to the local community for poverty reduction

  8. History of the Project The project was funded by e7 (group of leading 9 electric utility companies (now 10) from G8 countries) 2001/11: Pre-feasibility study conducted 2002/11: Feasibility study was conducted. The e7 Fund and the RGoB concluded with a MoU. 2003/6: Government of Japan approved the project as CDM project on behalf of Annex I country. 2004/2 : RGoB approved the project as host (non Annex I country) for the CDM project. 2005/5 : The project was registered as a CDM project under the UNFCCC. 2005/8 : The project started generating electricity.

  9. Outlined Map of Project Site Power House Output: 70 kW Effective head: 52m Transmission Line 11kV

  10. Power Plant • Installed capacity: 70 kW • Designed annual electricity generation: 582,540kWh • Expected Annual CERs generation: 500t-CO2/year, 21 years • 50 households

  11. Present Status • Commissioned the CDM Chendebji hydropower plant on 18th August 2005 • Inaugurated by Dasho Nado Rinchhen, Deputy Minister of Environment, NECS along with the E-7 delegation on 16th August 2005 • Estimated cost US$ 280,000 • Total reduction in CO2 emission by the project estimated at 593 tons CO2 (~ valued at US$ 5,931 – 17,793) replacing kerosene, firewood and diesel.

  12. Experiences from Chendebji CDM project • Demonstration as the first CDM project in Bhutan. • Long duration from the concept stage to implementation stage • CDM Administrative cost are expensive and modalities complex • Electrification of 50 households, 5 institutional buildings and 1 tourist resort at Chendebji village. • Improvement in education and living standards by utilizing electricity. • Providing a clean form of renewable energy resulting in better health and reduction of firewood use. • Reduced deforestation and soil erosion. • Contribute to socio-economic development of the community.

  13. Recommendations 1. NEC to continue as focal agency and coordinate with stakeholders. 2. To fully benefit from carbon trading, human resources and capacity development is required along with public awareness. 3. Pilot projects should be implemented (learning by doing) to provide guidance in evaluating cost/benefits of carbon projects. 4. National strategy for CDM to be developed 5. Bundling of CDM projects to reduce transaction cost

  14. Support requested from UNDP • Capacity development of DNA • Awareness and education on CDM for relevant stakeholders • Formulation of national CDM strategy • National capacity building for bundling of CDM projects • Assessment of market opportunities for CDM projects

  15. Tashi Delek