|Title of Study|| JCM Feasibility Study|
|Expansion of geothermal project|
|Main Implementing Entity||PricewaterhouseCoopers Co., Ltd.|
|Study Partners||West Japan Engineering Consultants, Inc. and Pricewaterhouce Coopers Kenya|
|Location of Project/Activity||Olkaria region in Kenya|
|Category of Project/Activity||Renewable Energy|
Note: JCM proposed methodology, and calculation sheet are the result of the study. They have neither been officially approved, nor are guaranteed to be officially approved under the JCM.
|Description of Project/Activity||This study targets the geothermal project in Olkaria region in Kenya. Development plans are underway to construct a total of 560 MW geothermal projects by 2018 (Hereafter referred to as "Olkaria 560 MW Project.") .This study assesses the applicability of the JCM to this geothermal project, develops a MRV methodology in the geothermal projects in Kenya, and prepare a draft PDD. The amount of GHG reduction calculated in this study can be obtained from the difference of GHG emissions between the conventional energy replaced by geothermal power generation and after the operation of the geothermal power generation plant starts.|
|JCM Methodology||Eligibility Criteria||Eligibility criteria 1: The project to be a new installation with capacity addition of geothermal power generation located in Kenya. |
Eligibility requirement 2: Electric power to be supplied to the Kenyan national grid.
|Default Values||The emission factor used in generating the reference emissions in this methodology calculates a combined margin (CM) using the operating margin (OM) and build margin (BM). |
In order to establish the reference emissions conservatively, the default value of BM of the emission factors shall be utilized
In setting the default value, the emission factor estimated in the Kenyan power development plans and the emission factor calculated by the grid emission factor tool applied in CDM shall be compared and the lower value shall be applied.
|Calculation of Reference Emissions||The reference emissions shall be calculated with GHG emitted from power plants connected to the grid. The first reason for this assumption is that, the power plants under this feasibility study must be connected to the grid and supply electricity to the grid. The second, geothermal power generation shall supply the electricity to the grid as a base load with the priority over the other power plants which are mainly thermal power plants. The calculation of the reference emissions uses the grid emission factor calculation tool of CDM.|
| Fugitive emissions of NCG contained in geothermal steam||CO2||Every three months ||Using ASTM E1675-95a or a similar technique ||At the steam field-power plant interface (Sampling at production wells basis is optional.) |
|CH4||Every three months ||Using ASTM E1675-95a or a similar technique ||At the steam field-power plant interface (Sampling at production wells basis is optional.) |
| Combustion of fossil fuels for electricity generation||CO2||Once a year ||Fuel meter ||Generator installed place |
|GHG Emission Reductions||[Assumption]|
The assumption of calculation, it was assumed that all capacities of 560 MW of the power plants under study are introduced. In addition, the default value calculated in the MRV methodology is applied and for the ex post items, the conservative values is set based on the values described in the PDD and monitoring report of the most recent geothermal power generation CDM project in Kenya.
[Estimated GHG emission reductions]
GHG emission reductions = 2,242,134 tCO2
|Environmental Impacts||According to the PDD of the Olkaria I/IV CDM project, an environmental impact assessment was conducted in accordance with the Kenyan law and the international guidelines of the World Bank and other international institutions.. In these assessments, a study was conducted from the perspective of emission of gases, noise during the construction, water circulation, waste water, and impacts on residents. It is anticipated that the environmental impacts to be temporary and low and at an acceptable level. Consequently, the same type of study is expected to be conducted on the environmental impact assessment of this project.|
|Project Plan||According to the Kenyan electric power development plan to 2016 “5000 + MW Plan” (2013), the operation in the Olkaria Well Head project will start in June 2014, and Olkaria I Unit 6 is planned to start the operation in June 2016 and Olkaria VI in December 2016.|
Steam produced from underground for geothermal power generation contains impurities, such as heavy metals and corrosive gases, and Japanese turbine manufacturers leads the world in both technology and knowhow to manufacture corrosion resistant turbines. Furthermore, the first geothermal power generator introduced to Kenya was manufactured by Mitsubishi Heavy Industries and generators from Toshiba are installed in Olkaria I and Olkaria , which are planned to start the operation in 2014. The track records of Japanese manufacturers are highly valued in the geothermal sector in Kenya and Japanese products are expected to be widely introduced in the future.
|Promotion of Japanese Technologies||In the global geothermal power market, Japanese manufacturers, Mitsubishi Heavy Industries, Toshiba, and Fuji Electric, have dominant shares in flash type. In addition, steams produced from underground for geothermal power generation contain impurities, such as heavy metals and corrosive gases, and Japanese turbine manufacturers are significantly leading the world in both technology and knowhow to manufacture turbines excellent in corrosion resistance.|
|Sustainable Development in Host Country||Kenya is expected to transform its current power supply system heavily depending on large hydropower plants, which is vulnerable to climate change, into the system resilient to the climate change. Through this transformation of the power supply system, it is expected that the power supply be reinforced and enable to reach off-grid unelectrified areas and the energy security can be strengthened without depending on foreign energy sources.|
Also the development of the geothermal industry in Kenya and the contribution to the development of the industries (such as the cultivation of flowers using the waste heat of geothermal power generation) around the Olkaria area are also anticipated.