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Reports of CDM Feasibility Studies: FY2012

Title of Feasibility Study (FS)Rural Electrification through Expansion of Electric Grid mainly composed of Hydropower
FYFY 2012
Main Implementing EntityMitsubishi UFJ Morgan Stanley Securities, Co., Ltd.
FS Partner(s)Bhutan Power Corporation (BPC), Department of Renewable Energy (DRE), Ministry of Economic Affairs of Bhutan, Karma Namkhai Consultants
Location of Project ActivityBhutan
Category of Project ActivityRenewable Energy
Targeted GHGCarbon Dioxide (CO2)
CDM/JICDM
Report
Description of Project ActivityThe Project involves the electrification of approximately 30,000 households in non-electrified areas by grid extension, implemented by the Royal Government of Bhutan utilizing the funding from through ODA. The Project aims to reduce consumption of fossil fuels such as kerosene and achieve GHG emissions by supplying electricity from hydropower plants within Bhutan to non-electrified areas of the country.
Methodology to be appliedAMS-III.AW, ver. 01.0. "Electrification of rural communities by grid extension"
Baseline ScenarioUnder AMS-III.AW, ver. 01.0., the baseline scenario is that the rural households targeted by the Project will use fossil fuels such as diesel or kerosene to generate the equivalent quantity of electricity required before project.
Monitoring PlanUnder AMS-III.AW, ver. 01.0., amount of electricity distributed by the Project will be monitored. Also, to confirm the project applicability to the methodology, amount of electricity export and import from Bhutan to other countries will be monitored.
Estimation of GHG Emission ReductionsFor ex-ante estimation, amount of electricity distribution was based on the assumption in the master plan. It is assumed that 33,436 households targeted in the Project each consume 60kWh/month electricity. Approximately, 19,260tCO2/yr of emission reduction is expected from the Project.
Duration of Project Activity/ Crediting PeriodThe starting date of project activity is July 25, 2008 with 30 years duration. Renewal crediting has been chosen for 21 years.
Environmental Impact AnalysisThe "Environmental Assessment (EA) Act 2000", together with the "Regulation for the Environmental Clearance of Projects" and "Regulation in Strategic Environmental Assessment" comprises the legislation relating to environmental impact assessment (EIA) in Bhutan. Project has obtained Environment Clearance and Forestry Clearance to comply with local regulation.
Demonstration of AdditionalityAdditionality of the project is demonstrated following the "Guidelines for demonstrating additionality of microscale project activities (ver. 04)".
  • Estimated annual emission reduction is below 20 kt/yr.
  • The geographic location of the project activity is an LDC/SIDS.
Project FeasibilityThe project construction has started in September 2009 and scheduled to be completed by June 2013. Although there is a slight delay in some project component, final completion is expected by the end of 2013.

Contribution to Sustainable Development in Host CountryThe Project is expected to contribute to the sustainable development of Bhutan and improving the level Gross National Happiness (GNH)
as defined in the four strategic areas; Sustainable and equitable socio-economic development, Environmental conservation, Preservation and promotion of culture, and Good governance.

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