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CDM Considerations and Opportunities in Cambodia: Energy Efficiency, Transport & Renewable Energy


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Title: CDM Considerations and Opportunities in Cambodia: Energy Efficiency, Transport & Renewable Energy

CDM Considerations and Opportunities in Cambodia
Energy Efficiency, Transport Renewable Energy
National Workshop on Capacity Development for the
Clean Development Mechanism 26-27 March 2003
  • Andrew Williamson
  • Advisor to Department of Energy Technique
    (Ministry of Industry, Mines and Energy

Structure of Presentation
Energy Efficiency
  • CDM considerations
  • International Case Study
  • Opportunities in Cambodia

Renewable Energy
  • Key questions
  • How can CDM help projects in Cambodia?
  • How do CDM projects work?
  • What opportunities exist in Cambodia?

CDM Project Requirements
  • A CDM project must be
  • REAL (it will actually reduce emissions)
  • Measurable (the emission savings can be
  • Additional (the savings would not have happened
    without the project)
  • Sustainable (defined by host country to include
    environmental community benefits, technology
    transfer etc)

Energy Efficiency CDM Considerations (1)
  • The main types of EE projects are

Demand Side Example Retrofit new efficient
lighting, reduce energy losses in process,
introduce new efficient appliances
Supply Side Example Improve efficiency of
generator, upgrade transmission line and
transformers to reduce losses, upgrade steam
boiler for greater efficiency
Fuel Switching Example Replace coal boilers with
gas-fired units, use biofuels instead of diesel.
( NOT nuclear!)
Energy Efficiency CDM Considerations (2)
  • Energy Efficiency (EE) projects usually reduce
    the energy demand per unit of output and thus
    offer other benefits of cost saving and
    production efficiency
  • EE projects for CDM can involve either upgraded
    or new equipment
  • CDM Transaction costs are high so often need to
    group many projects under one CDM project to make
  • EE projects are difficult to baseline, monitor
    verify, and special guidelines have been produced
    to assist calculation
  • Must first establish Emissions Baseline the
    greenhouse emissions which would have occurred in
    business as usual, ie if the CDM project was
    not done.
  • Small projects (up to 15MW generation capacity or
    15GWh/yr of equivalent energy savings) have
    special simplified rules and calculations

Energy Efficiency CDM Considerations (3)
  • Monitoring and Verification need to prove that
    savings are real throughout the project
  • This can be difficult and costly, especially when
    many emission sources are involved (easier on
    single large projects where performance can be
    measured directly)
  • THUS vital for effective training and management
    of operators (includes ensuring that operation
    manuals for new equipment are provided in Khmer
  • Emissions Leakage refers to situation where old
    replaced equipment is sold to someone who uses it
    elsewhere resulting increased emissions elsewhere
    (so it reduces the overall effectiveness of

Energy Efficiency - International Case
StudyBangladeshi Brick Kilns
  • Project
  • 20 new Brick Kilns
  • Higher efficiency than standard kilns (new
    Hoffman design)
  • Uses natural gas rather than coal
  • Baseline assumes most likely scenario for brick
    production over next 10 yrs in Bangladesh
  • Monitoring will involve metering of actual gas
    consumption calculation of brick production

Project Partners

CDM Operator (organise CDM financing deliver
CERs to Investor)

CDM Investor
  • Could be
  • Owners Association
  • NGO
  • Private Business

Kiln Owners 20 various companies
(in Developed Country)
Energy Efficiency - International Case
StudyBrick Kilns in Bangladesh
Energy Efficiency - Cambodian Opportunities (1)
Industrial Sector types of operators
Breweries and Bottling Distillery
(cassava?) Water Purification Laundries Brick
Kiln Garment Factories Rice Mills Sugar
Refinery Food Processing
Animal Feed Factory Plywood Manufacturing Cement
Works (?) Paper Mill Sewerage Pumping Cigarette
Factories Plastics manufacturer Galvanized Iron
Roofing Paint Factory
Energy Efficiency - Cambodian Opportunities (2)
  • Opportunities Industrial Sector
  • Lighting improve design (new fittings
    reflectors), new technology (tri-phosphor
    fluorescents, high pressure sodium), control
    (timers, sensors), skylights light
  • Boilers improved design, insulate ducting,
    steam traps, heat recovery to pre-heat feed water
  • Refrigeration new refrigerants lubricants,
    optimise settings, controls (timers, sensors),
    duct layout zoning, new technology
  • Compressed Air leak stop program (must be
    ongoing), efficient nozzles, unit sizing,
    optimise control (staging, timers, variable
    speeds etc), position intake for cool air
  • Electric Motors replace with high efficiency
    motors, variable speed drives, optimise control
    (timers, sensors, idle shut-off)

Energy Efficiency - Cambodian Opportunities (3)
  • Opportunities
  • Building Design orientation exterior awnings
    facades landscaping to reduce solar gain,
    insulation, natural lighting, natural
    ventilation, building materials to reduce air-con
    load, interior colours to reduce lighting load,
    double-glazed windows, air-locks air curtains
    revolving doors to minimise air leaks
  • Lighting improve design, new technology
    (fittings reflectors, low-energy ballasts,
    dimmable fluorescents), automate control (timers,
    sensors), zoning
  • Water Heating centralised units, solar and gas
    rather than electric, heat pumps, insulate
    ducting, heat recovery from air-con, reduce water
    use (efficient nozzles, taps, showers), optimise
    settings (reduce temp)
  • Air Conditioning new refrigerants lubricants,
    optimise settings, controls (timers, sensors),
    duct layout zoning, new technology, avoid
    individual control-setting, ceiling fans where

Commercial Buildings
Hospitals Hotels Banks Office Buildings Government
Offices Warehouses Restaurants Markets and
Shops Schools
Energy Efficiency - Cambodian Opportunities (4)
Cogeneration (or Combined Heat and Power(CHP)
  • Anywhere with both electrical and heating or
    cooling needs
  • Especially industrial plants and commercial
  • Service can be offered by existing IPP (delivers
    electricity AND steam / cool air!)
  • Scenario 1 Garment Factory
  • Electricity generated by on-site diesel
  • Modified so hot water recovered directly from
    water jacket or heat exchangers to pre-heat
    the factory boilers
  • Big saving in energy costs and emissions from
    coal-fired boilers
  • Scenario 2 Commercial Building
  • Electricity generated by on-site diesel generator
  • Air conditioning compressors driven directly by
    second shaft on diesel engine
  • OR absorption chillers use the recovered heat
    from engines (as above) to generate cool air

Energy Efficiency - Cambodian Opportunities (5)
  • Opportunities
  • Building Design orientation exterior awnings
    facades landscaping to reduce solar gain,
    natural lighting, natural ventilation
    (flow-through, heat exhausts), building materials
    to reduce cooling load
  • Cooking gas cooking if possible, efficient wood
    coal stove designs, area with good ventilation
    separate from living areas (to avoid heating
  • Lighting use compact fluorescents, interior
    colours to reduce lighting load, task lighting
    rather than whole space (eg over cooking bench,
    kitchen table etc)
  • Space Cooling ceiling fans, sealable bedrooms
    for aircon
  • Appliances awareness programs energy
    efficiency labeling stand-by loads,
    refrigerator settings maintenance
  • Street Lighting design placement, high
    efficiency bulbs fittings, optimise timers or

Houses Apartment Blocks Rural cottages
Transport - CDM Considerations
  • Transport Efficiency Projects can be difficult to
    measure verify as emission sources are
    generally privately owned mobile! CDM validity
    should be checked.
  • Vehicle Efficiency
  • Improve existing vehicles (better maintenance,
    testing, regulations)
  • New technology (introduce encourage its use
    through incentives regulation)
  • Fuel Substitution
  • Biofuels (biodiesel, ethanol etc) to reduce use
    of diesel and petrol
  • Encourage natural gas CNG use
  • Electric hybrid vehicles (and soon fuel cells)
  • Transport System Efficiency
  • Public transport systems (which are effective)
  • Trains for bulk cargo to/from sea/air ports
  • Encourage and simplify non-motorised transport
  • Plan towns, buildings and events to improve
    traffic flow reduce need for motorised transport

Transport - International Case StudyUrban Busses
in Yogyakarta, Indonesia
  • Project
  • Improve the energy efficiency of public bus
  • Replace engines on 200 of the fleet of 500 busses
  • Switch from diesel to either clean diesel,
    natural gas or other (still in design)

Transport Opportunities for Cambodia (1)
  • Biofuels
  • Sustainable, renewable fuel source (for transport
    generator sets)
  • Biodiesel, Ethanol, raw vegetable oils (eg palm
    oil in Marine diesel engines)
  • Local production from energy crops
  • Increase energy independence
  • Project Options
  • Establish local manufacturing plants plus energy
    crops (technology transfer training)
  • Demonstration project with free/cheap samples to
    promote gain credibility
  • Public transport trial running on biofuels
  • Incentives (subsidies, tax concessions) to
    transport companies to use (eg trucks, taxis,
    ferries, trains)
  • Promote raise awareness of benefits for
    environment Cambodia

Transport Opportunities for Cambodia (2)
  • Private Vehicles
  • Establish emissions regulations registration
  • Periodic vehicle inspections phase-in fines OR
    free tune-ups?
  • Tune-up program establish training program for
    service centres, and mobile testing stations
  • Efficiency labeling on vehicles sold
  • Public Transport
  • Efficient bus system around the major towns with
    services devoted to schools, universities
  • As major highways are improved, establish cheap,
    reliable and safe bus system between major towns
    tourist destinations
  • Upgrade train services (passenger cargo) from
    sea port to Phnom Penh (plus Pursat, Battambang
    Siam Reap?)

Renewable Energy - CDM Considerations
  • Must be sustainable
  • Measuring Verification usually just involves
    measuring actual generation output, then
    calculating baseline fossil fuel emissions as
  • Need to be close to suitable transmission lines
    or consumers
  • Need someone to buy energy
  • Need licences from EAC as generator
  • Need to secure long-term supply of fuel if
    biomass (possibly hydro)

International Case Study - Renewable Energy
Waste Palm Oil Electricity Generation, Indonesia
  • Project
  • 10.3MW capacity from special high-pressure boiler
    with steam-turbo generator
  • Combustion of 220kT/yr of empty fruit bunches
    from processing plant
  • Palm Oil mill is 1.5km from 20kV substation
    close to river
  • Host Country Partner
  • Joint venture of 3 Indonesian companies (Catra
    Nusantara Bersama, Bronzeoak Limited, and PT
    Indonesian Power)
  • 2 of the companies will also purchase the power
    from the JV
  • CDM Investor Partner
  • now looking - from an Annex 1 country
  • probably use a local Indonesian company to
    co-ordinate CDM investment

International Case Study - Renewable Energy (2)
Waste Palm Oil Electricity Generation, Indonesia
Renewable Energy Opportunities for Cambodia (1)
  • Hydropower
  • Excellent potential, proven ability in-country
  • Pico/micro suitable in many small villages on
  • Mini projects identified and investigated in
    Meritech study
  • CDM gather small projects into one proposal
  • Wind
  • Large utility scale (gt500kw) 8 areas identified
    by modelling as good potential, now need
    monitoring and investigation
  • Small domestic scale (lt500kW) demonstration
    projects by NEDO in Takeo, but one turbine
    damaged and monitoring unsuitable
  • Further investigation needed
  • Solar PV
  • Excellent potential
  • Extensive demonstrations by NEDO and others
  • Opportunities for Grid-Interactive inverters in
    towns and small grids

Renewable Energy Opportunities for Cambodia (2)
  • Biomass
  • Various fuels available (rice husks, straw,
    bagasse, palm oil, forestry residue, plantation
    timber/crops (eg rubber))
  • Many technologies now mature and in use elsewhere
  • Need thorough resource assessment feasibility
  • current fuel uses must be investigated
  • Biofuels
  • Biodiesel, ethanol and direct vegetable oils
  • (Discussed in Transport section)
  • Requires resource and feasibility assessments
  • Landfill and Urban Waste
  • Many technologies mature and available
  • Cheap and widely used elsewhere
  • Can be retrofitted, but better if designed at
    start of landfill life
  • Geothermal
  • Small, low-quality resource in Kompong Spue
  • Worth basic investigation
  • 50MW plant planned for central Vietnam

Next Steps
  • Raise Stakeholder Awareness of Benefits
  • Government, Project Developers, Private Industry,
    Investors, International Developers and CDM
  • Project Identification Pipeline
  • Resource assessments industry studies/surveys
    energy audits
  • Project Design
  • Feasibility Studies
  • Consultation with communities, authorities
  • Project Promotion Financing
  • Seek partners for finance investment
  • Will CDM help this project?
  • Yes Start CDM Cycle
  • No Find alternative funding

CDM Projects in Cambodia - information and
assistance -
  • CDM Operation, Cambodia Status etc
  • Climate Change Unit MoE Mr Tin Ponlok or Mr Sum
  • Renewable Energy and Energy Efficiency
  • Department of Energy Technique Dr Sat Samy,
  • Hydropower Department Dr Bun Narith, Director
  • Fossil Fuel Generation, Transmission and
  • Energy du Cambodge Dr Praing Chulasa, Deputy
    Director, Corporate Planning and Projects
  • Electricity Authority of Cambodia Dr Ty Norin,
  • Department of Energy Development (MIME) Mr Tun
    Lean, Director

  • A Users guide to the CDM, Pembina Institute,
    June 2002
  • CDM Opportunities in Asia, TERI New Delhi et.
    al., October 2002
  • Cambodias Initial Communication under the
    UNFCCC, Ministry of Environment Cambodia, August
  • Introduction to the CDM, UNEP Collaborating
    Centre on Energy and Environment, RISO National
    Lab, (not dated)
  • Simplified modalities and procedures for CDM
    small-scale project activities, UNFCCC
  • DRAFT Renewable Energy Action Plan, World Bank
    and MIME (DET), November 2002
  • Useful Websites
  • International Energy Agency (baseline
  • Monitoring and Verification guidelineswww.ipmvp.o
  • Asian CDM
  • Renewable Energy Feasibility Software Examples
    (FREE download)
  • Prototype Carbon Fund World Bank
  • or www.carbonfinance.o