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Reports of CDM/JI Feasibility Studies: FY2008

Title of Feasibility Study (FS)Investigation of Programmatic CDM on Renewable Energy Generation Utilizing Irrigation Canals in the Philippines
FYFY 2008
Main Implementing EntityThe Chugoku Electric Power Co., Ltd.
FS Partner(s)Ex Corporation; and Chuden Engineering Consultants Co., Ltd.
Location of Project ActivityPhilippines
Summary of FS ReportPDF (888KB)
Description of Project ActivityThe purpose of this project is to effectively utilize unexploited drops at agricultural dams and along irrigation canals in various parts of the Philippines and conduct small hydropower generation at irrigation canals (referred to as "irrigation small hydropower" hereinafter), while applying programmatic CDM methodology to implement additional mini-hydropower development and replace thermal power, reducing greenhouse gas (CO2) emissions and environmental pollutants (NOX and SOX), as well as contributing to sustainable development of the Philippines, including its agricultural sector.
Targeted GHGCO2
Category of Project ActivityRenewable Energy (Hydropower)
CDM/JICDM
Duration of Project Activity/ Crediting Period2010 - / 2010 – 2031 (7 years x 3 times)
Baseline Scenario (including Methodology to be applied)Small-scale methodology I.D. was employed as a baseline methodology, because this project expects development of irrigation small hydropower with average output of several hundred kW and sales of generated electric power to power companies (connection to grid).
Demonstration of AdditionalityAdditionality of the following three types of barriers in the case of small-scale CDM project is proved based on Annex B of "the simplified modalities and procedures for CDM small-scale program activity".
Technological barrier
    Technologies that are expected to be applied to typical CPA in this project are Japan's unique technologies and involve submersible turbine generators that have not been implemented in the Philippines and South East Asian countries. Thus, there is a technological barrier in implementing these technologies.
Proof of barrier due to prevailing practice
    Despite many hydropower facilities in the Philippines, there are few hydropower generations that use existing irrigation canals, which is not a common practice in the Philippines. Thus, there is a barrier due to prevailing practice.
Barrier due to financial resources
    Special loans of banks that target CDM projects will not applicable if this CPA does not assume application of CDM for small hydropower generation that will be implemented in irrigation facilities. Thus, there is a barrier due to financial resources.
Estimation of GHG Emission ReductionsAverage of 1,000tCO2 per point per year
Monitoring Plan (including Methodology to be applied)Monitoring subject of this project is the amount of electric power that irrigation small hydropower generates. Since this project is expected to be implemented as programmatic CDM, it is extremely important to smoothly issue CER for individual CPA. Thus, we employ the method in which REC collects and manages monitored power data and transmits them to project implementation agencies as a method to guarantee proper recording and management of power generation data of individual hydropower facilities.
Environmental Impact AnalysisEnvironmental impact of implementing this project is expected to occur during construction period. The table below shows direct and indirect impacts caused by implementation of this project and measures to mitigate them.

Item
Activity
Expected environmental impact
Measures to mitigate environmental impact
Construction periodDirect impactTransportation of materials and equipmentsConstruction materials are transported by trucks. Expected impacts include exhaust emissions, noise, and vibration of driving trucks.Practice efficient transportation of materials to reduce impacts associated with transportation of materials.
Operation of civil engineering and construction machineryImpacts on workers and neghboring areas such as noise and vibration are expected due to operation of machinery that installs facilities.Create construction plans that efficiently utilize construction machinery. At the same time, no construction iwll be carried out on weekends, holidays, and late at night. Use low-noise and low-vibration construction machinery to reduce noise and vibration to the surrounding areas.
Indirect impactRaw materials of civil engineering and construction materials and processing themObtaining and processing raw materials for construcion cause GHG emissions.Create optimal plans and designs to avoid using more than enough construction materials.
Issues and Tasks for Project MaterialisationThere is no major obstacle for implementing the project in a large frame, but it is necessary to ascertain the following issues to put the project into effect in the future.
Establish project implementation system
    In the meetings in this investigation, we confirmed willingness of NEA (National Electrification Administration) that organize REC (Regional Electric Cooperatives), the candidates for electric power generation company, and NIA (National Irrigation Administration), the owner of irrigation facilities, to provide active involvement in this project, but we were unable to finalize a developer in the end. We need to determine participants, operation systems, and assignment of roles in the process of industrialization in the future.
Set up proper fees for using facilities (water)
    The Philippines National Irrigation Authority (NIA) that will loan irrigation facilities to power companies is expecting revenues from fees for using waters and facilities that power companies will be paying. The fee setting must be reasonable to both NIA and power companies while maintaining its economics.
Capacity building of managing entities involved in programmatic CDM
    CDM that involves hydropower is not very common in the Philippines, and no project has been registered as programmatic CDM project. Thus, it is necessary for the Japan-side to nurture managing entities.
Examine details of the application of programmatic CDM
    Implementation of programmatic CDM seems to be the best option in this project, because it consists of individual small-scale hydropower companies and not all possible areas for the project in the Philippines are covered at this point. Nonetheless, certification procedures and setting up the period to start the project are expected to cause delays if programmatic CDM is employed. Thus, we must carefully compare advantages and disadvantages of "programmatic CDM" and "CDM that combines multiple points of project feasibility" upon industrialization.
Implementation of F/S at other points with high development potentials
    In order to determine whether this project can be materialized as a programmatic CDM project, it is vital to at least conduct detailed feasibility studies at multiple points where the economics is expected to be similar to points selected in the secondary screening of this investigation.
Co-benefits EffectsThis project can replace emission of air pollutants from fossil-fuel-based power generation in the grid that irrigation small hydropower stations will be connected to. Emissions of air pollutants such as NOx and SOx can be reduced depending on the type of fossil-fuel-based power generation that this project will replace.

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