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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Development of Best Grid Electricity Mix Focusing on Renewable Energy Sources in Sri Lanka
FYFY 2011
Main Implementing EntityEX Research Institute Ltd.
FS Partner[Sri Lankan Partners]
Sri Lankan Carbon Fund (SLCF)
Ministry of Environment (MOE)
Sri Lankan Sustainable Energy Authority (SLSEA)
Ceylon Electricity Board (CEB)

[Japanese Partners]
Hokkaido Electric Power Co. Inc., (HEPCO)
Fuji Engineering Consulting
Location of Project ActivitySri Lanka
Category of Project ActivityRenewable Energy
Summary of FS ReportPDF (1.4MB)
Description of Project/ ActivityThrough implementing the project activity aimed at promoting the introduction of renewable energies and realization of the best grid mix based on load equalization under the bilateral mechanism, it is intended to reduce emissions of greenhouse gases (GHG). Concerning the introduction and promotion of renewable energy, grid optimization technology will be introduced in order to accelerate and promote the introduction of renewable power derived from biomass, wind power, solar power and hydropower, etc. as well as the introduction and utilization of renewable energy technology being vigorously promoted by the Democratic Socialist Republic of Sri Lanka (Sri Lanka). Furthermore, technologies will be introduced concerning the load equalization of pumped-storage power generation and secondary batteries, etc. as storage equipment for limiting power losses at off-peak times and supplementing power supply at peak times. Also, Nationally Appropriate Mitigation Actions (NAMAs) for the power sector in the host country will be formulated and technical and financial support will be provided with a view to achieving them and thereby acquiring emission reductions as NAMA credits.
Reference Scenario and Project/ Activity BoundaryReference scenario is identified based on the "Long-term Generation Expansion Plan" which is basically annually updated. However, for the power generation plans that are clearly mentioned to be implemented utilizing carbon mechanism such as CDM or BCOM are excluded from reference scenario.
Monitoring Methods and Plan<Renewable energy utilization technologies>
1) Reference emissions:
    -Amount of electricity supplied to the national grid (MWh/y)
2) Project emissions:
    -Amount of fossil fuel or electricity used by the project activities (t/y or MWh/y)

<Load leveling technologies>
1) Reference emissions:
    -Amount of electricity supplied to the national grid (MWh/y)
2) Project emissions:
    -Amount of electricity used by applied load leveling technology (MWh/y)
    -Amount of electricity generated by the renewable energy generation units that are operated as a set of load leveling technology (MWh/y)
    -Efficiency of applied load leveling technology (%)
    -Amount of fossil fuel used by the project activities (t/y)
3) Leakage emissions:
    -Where pump-up storage power plants are installed at existing hydro power sites, the amount of electricity which would have been generated by these plants need to be counted as leakage emissions sources(MWh/y)
GHG Emissions and Reductions
Item
Unit
Hydro
Wind
Biomass
Solar
Load leveling
Remark
a) Introduction target by proposed NAMA by 2020
MW
500
750
150
50
1,000
b) Emission reduction per MW
tCO2/y
3.5
2.7
6.0
1.3
1.5
f)/a)
c) Reference emissions
ktCO2/y
1,742
1,991
995
66
1,452
d) Project emissions
ktCO2/y
0
0
100
0
0
Biomass (as assumpotion)
Reference emissions * 10%
e) Leakage emissions
ktCO2/y
0
0
0
0
0
f ) Emission reduction
ktCO2/y
1,472
1,991
895
66
1,452
c)-d)-e)
Total
ktCO2/y
6,147
MRV System for GHG ReductionsFor renewable energy utilization technologies & load leveling technologies with facilities at generation side: Modified CDM AMS- I.D
For load leveling with facilities at grid side (PSPP etc): A new MRV was developed
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)<Beneficial impacts>
    -Mitigation of air pollutants emissions due to reduction of fossil fuel consumption
<Security measures for potential negative impacts>
Potential negative impacts need to be averted by making sure the following security measures:
    -Implementation of EIA
    -Using biomass assessment guideline which was developed under this F/S to avoid competition with existing land and biomass resource uses
Financial PlanningAs fundraising sources, in addition to conventional yen loans based on the framework of the BOCM, it is envisaged that grant and loan funding mechanisms associate with climate change countermeasures will be utilized.
Introduction of Japanese TechnologyTechnology introduction sheet of Japanese technologies was developed under this F/S and it may be applicable as project activities under the proposed BOCM.
"Co-benefits"
(i.e. Improvement of Local Environmental Problems)
CO2, NOx, SOx and particulate matter were selected as the target items of assessment. Among thermal power generation types that can complement & follow power variation in wind power generation, GTCC(Gas Turbine Combined Cycle)has been selected and verified as its alternative power source as it has a large total capacity in Thailand.
Contribution to Sustainable Development in Host Country1) Contribution to reliable electricity supply (electricity supply will become more stable by load leveling technologies)

2) The following contribution through promotion of renewable energy:
    -Energy security enhancement by increasing the proportion of indigenous energy sources
    -Reduction of outflow of foreign currency due to reduction of imported fossil fuel
    -Economy vitalization and job creation
3) Income generation of rural farmers by promotion of biomass cultivation

4) Mitigation of air pollutants emission reduction due to reduction of fossil fuel combustion

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