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Presented by
U Htun Naing AungChairman/CEO
KKS Engineering Co.,Ltd
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Agenda
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“CDM” Hydro Power Project vkyfoifhovm; ?
CDM \ t&if;tNrpf Global Warming
Seasonal surface Seasonal surface melt extent on the melt extent on the Greenland Ice Sheet Greenland Ice Sheet has been observed has been observed by satellite since by satellite since 1979 and shows an 1979 and shows an increasing trend. increasing trend. The melt zone has The melt zone has been expanding been expanding inland and to record inland and to record high elevations in high elevations in recent years.recent years.Source: Impacts of Arctic Warming, Cambridge Press, 2004
The Evidence of Global WarmingThe Evidence of Global Warming
EVIDENCE
There is no longer any doubt that the ecosphere is warming up due to human activity
Problem OneGlobal WarmingGlobal Warming
Global Warming
Climate Change
Climate Change Lives
Changing Wind Map due to the Climate ChangeThere are a lot of proven records that the air flow direction and pattern are changed in many different places due to the global warming and climate change. For nearest example of “Nargis” in Myanmar in 2008
!!!!!
Cyclone (Nagis,2008)Whom we have to blame?
Is Global Warming Nature
or Man Made?
“Global warming is the greatest threat facing the world today – far greater than the threat from terror”
Source: Sir David King, chief advisor to the British government, Dagbladet Information, Denmark, 10. Jan. 2004
Responses from Experts: Global Warming PreventionProject
“Obstruction of Global warming reduction Project by preventing Conference Delegate to attend the Renewable Energy Conference is the same threat facing us– like the threat from terror”
Source: Mr. Htun Naing Aung, Chairman/CEO Kaung Kyaw Say Engineering Co.,Ltd AEBF2008 Thailand Aug.6, 2008
CDM Greenhouse Gases
GHGGlobal
Warming Potential
Market Value (at $10 per TCO2e)
Sources
Carbon Dioxide 1 10 Fossil fuel combustion, deforestation,
agriculture
Methane 23 230Agriculture, land use change, biomass burning, landfills
Nitrous Oxide 296 2,960 Fossil fuel combustion, industrial, agriculture
HCFC 1300 13,000 Industrial, manufacturing
PFC 6500 65,000 Industrial, manufacturing
SF6 23900 239,000 Electricity transmission, manufacturing
Green House EffectKyoto Protocol
Global Warming
High Oil PricesDepleting Fossil Fuel
BiofuelBiofuel
Renewable EnergyBiofuel
Renewable EnergyBiofuelBiofuelRenewable Energy
BiofuelRenewable EnergyRenewable Energy BiofuelRenewable Energy
Green House Effect Kyoto ProtocolGlobal Warming
High Oil Prices Depleting Fossil Fuel
The Benefits of ElectricityThe Benefits of Electricity
The Energy The Energy Security & Security &
the Benefits the Benefits of of
ElectricityElectricity
ELECTRICITYLight Bulb Radio / TV Refrigerator AC / Fan Stove / Oven Pump
Reading Light SpaceLight Video / Sound FoodPreservation Space Cooling Heat for Cooking Water Pumping
EDUCATION ENTERTAINMENT /COMMUNICATION HEALTH COMFORT /CONVENIENCE PRODUCTIVITY
APPLIANCES
INTERMEDIATE OUTPUTS
FINAL OUTPUTS
The Benefits of ElectricityThe Benefits of Electricity
17/09/54 19
Why Nuclear?Why Nuclear?Contributes significantly to world electricity generationReduces dependency on high priced oil and gas
Reduces greenhouse gas emission
Provides more overall benefits than other energy sourcesLow production cost, US$0.02/KW produced by nuclear power compare to US$0.12 with fossil fuel
Nuclear power is the best optionfor recent situation
17/09/54 20
Why Not Nuclear?Why Not Nuclear?High Investment Cost US$ 2million/MW
Accompany byMajor issues against nuclear power include
Safety Radioactive Waste
and
Weapon Development
Tsunami, FukushimaTsunami, Fukushima
In terms of Usage and Investment
No. Source of Energy Usage Investment Remarks1 Solar Energy Only day time useable High Battery needed
2 Wind Energy Depends on windSpeed and direction
High/Moderate
Battery needed
3 Tidal Power Depends on wave, flow and tide
High High cost in transmission line.
4 Water TurbineHydro Power
Depends on water head
Highest Need a good Dam
5 Biogas Difficult to collect Moderate Suitable to the bio waste farm.
6 Bio fuel Depends on crops need processing
High/Moderate
Still researchstage(ethanol mix)
7 Biomass(Gasification)
Any time, Any where, Any Capacity
Cheapest EnvironmentalFriendly.
The Comparison Among Energy Security & RisksIn terms of Risks and Investment
No. Source of Energy Risks Investment Remarks1 Hydro Power Disaster causes by
flood.High Need further study
on environmental impact assessment and a good Dam
2 Bio fuel The Weather /Depends on crops /Need processing
High/Moderate
Still researchstage(ethanol mix)
3 Biomass(Gasification)
CO & CO2 emission for improper handling
Cheapest EnvironmentalFriendly.
4 Gas Turbine Depleting of Gas High Still have own natural gas.
5 Nuclear Power High risk to the workers and all neighbors.
High Need a lot of time and professioncy
Kyoto Protocol Art. 6, 12 and 17
3 Mechanisms
CDM JI ET
Convention(Art. 3.3, 4.2 (cooperate, jointly))
Art12KP (CDM)| Origins
The Clean Development Mechanism (CDM)
DevelopedCountries
DevelopingCountries
Carbon Credits exchange
Objectives:
• Emission-reduction compliance
• Higher economic growth
Objectives:
• Climate-friendly technology
• Sustainable development
CO2
Developing countries (Non-AI)→To assist in achieving sustainable development
Industrialized countries (AI)
→To assist in meeting their emission limitation commitments
What is the CDM| Incentives
CDM project agreement
Project participants(private business, governments, NGOs)
26
Certified Emissions Reductions
a) Represents GHG mitigation contribution of a project.
b) Measured in tones of CO2. CERs from a CDM project are calculated as:
CERs = Baseline Emissions – Project EmissionsThe baseline is the amount of GHG that would be emitted in the absence of the CDM project.
c) CERs can be sold in exchange for hard currency.
d) Reduction before 2008 (1st year of Kyoto Protocol commitment period) can be included.
CDM &Edkifaomvkyfief;rsm;
N0 Type Description
1 Renewable energy Hydro, Wind, Solar, Biomass
2 Fuel Switching Fossil Fuel to Green Fuel
3 Energy Efficiency In Boiler, Pump, Turbines, Efficient Cooling
4 Cogeneration Both in Steam & Power Requirement
5 Power Sector Efficient (thermal) reduction in technical T&D Losses
6 In Waste Management Capturing methane emission to generate power, waste to energy
7 In Transport Fuel switch from gasoline & diesel to natural gas, air to train, road to train
8 In Forestry Afforestation and Reforestation Project
Potential CDMs in MyanmarAfforestrationAgricultureHydroMethane avoidanceBiomassCoal bed/mine methane etc
CDM Project Development
Potential CDM Sources Energy, Forestry, Industries, Agriculture & Waste
Emission AvoidanceGHG Removal or Reduction
743 CDM project activities registered, • 63.5 million CERs Issued• expected: 996.5 million CERs until 2012
More than 1,000 activities in the CDM pipeline (incl. above),- more than 1,200 million CERs expected by end of 2012(assumption: no extension of crediting period)
Score Board | CDM in the world
Status: July 2007
Global CDM Project Registration
CER Issued
No CountryRegistered
Project Numbers
Estimated AnnualEmission Reduction (t/Co2 e)
1 Myanmar 0 02 Lao 1 3,3383 Cambodia 4 124,3564 Bangladesh 2 169,2595 Thailand 49 2,749,6926 Vietnam 59 3,167,6107 Indonesia 67 6,600,000
Registered Project Numbers by Countries
GHG
t
“What would have happened” situation (scenario)
CDM project activity
CERs
How CER calculate
How Carbon Credits are Formed
Time
BaUCDM
CO2Emissions
Time
BaUCDM
CO2Emissions
How Carbon Credits are Formed
Benefits to Myanmar and Project Owners
By selling CER/VER, project owners can be compensated financially by developed countries for their contribution to emission reduction
Brings funds and foreign investment to Myanmar through developing energy saving and emission reduction projects
Support from international NGOs, governments and other organizations for capacity building in CDM development
Technology transfer and support from developed countries
CDM Project Timeline
20092008<< 2007 2010 2011 20122nd CP?
2013 >>CDMProjectDevt.
Production & Delivery of CERs
1st Kyoto Commitment Period (CP)
Offset Sale Beyond Kyoto Or Ex-Kyotomarkets
Agenda
How Can Carbon Credits Enhance Project Viability?
Applications of Carbon Revenues to Traditional Energy Projects
• Enhancing revenues or yields• Securing interest or principal payments • Shortening the loan term • Source of equity requirement
Using Carbon Revenues as a Source of Equity Requirement
Upfront Payment forForward Sale of
CERs
CERs as Equity for Loan
Loan Approval subject to
Equity Requirement
Project Proponent
CER Buyer
Investor
Using Carbon Revenues as a Source of Loan Prepayments
Loan Prepayment
SinkingFund
Loan Interest and Principal Payments
CER Revenues
Project Proponent
CER Buyer
Investor
CERs
42
Wind Power ProjectWind Power Project
Plant Configuration- 15 x 1.65 MW
Plant Capacity - 24.75 MW
Annual Generation - 74,482 MWh
43
Phase IPhase I
CO2 - 48,780 tons/year SO2 - 802 tons/year
which would have otherwise been emitted from a typical fossil-fueled generating plant
Environmental Benefits:Environmental Benefits:
CO2 Cost/tonCost/ton Cost/yearCost/year
((2525MW) MW) 48,780 x 10US$ =487,800 US$Micro-hydro power generating plant can be installed at
10 villages
Financial Benefits:Financial Benefits:
CDM Project in Myanmar - A Case StudyDapein(1) Hydropower Project in Union of Myanmar
Project Title Dapein(1) Hydropower Project Grid Supplied South China Power GridProject Owner Dapein(1) Hydropower Co., LtdLocation Bhamo county, Kachin state, Union of MyanmarInstalled Capacity 240MW (60MW×4)Annual electricity generation 950,289.6MWhConstruction starting date 26/06/2008Project commission dateAnnual emission reductions 677,937CO2ePrice of CERs (expected) 7 EUR/tCO2e or 10US$/tCO2eAnnual Income from CDM(expected) 4,745,559 Euros 0r US$ 7.779,370
Potential Revenue from CERsNo Name Location Capacity
(MW)
Annual ElectricityGWh
Expected FB(US$)Based on 10$/tonCO2
1 Mone Sidoktaya MagweDivision
75 330
2 Paunglaung N-E of Pyinmana 280 911
3 Yenwe Pago Division 25 123
4 Ye New Pago Division 25 123
5 Kha Paung Pago Division 30 120
6 Ka Paung Oaktwin, Pago Division 30 120
7 Kengtawng Moenw, Shan (S) State 54 377.6
8 Shweli 1 Shan (N) State 600 4,022
9 Ye Ywa Mandalay 790 3,550
10 Shwe Kyin Pago Divison 75 330
11 Kun Chaung
Pago Division 60 402
TOTAL 2,044 10,408.6 74,214,000
Agenda
How Does KKS Work With You?
47
Project development
Project implementation
Certified Emissions Reductions (CERs) issuance (Carbon Trading)
CDM Process
ProjectDesign
DocumentValidation Registra
tionMonitori
ngVerificat
ionCertifica
tion
CER issuance
and registrat
ion
HostCountry
Confirmation
DesignatedOperational
Entity
•Conducted by project participants
•Provides basis for verification
•Assurance by a DOE
•Certifies the amount of verified reduction
• Issuance of Certified Emission Reductions (CERs)
•To be recorded at EB registry
• Conducted bya DOE (Different DOEexcept forsmall projects.)
• Determines that the monitoredemissionreduction hasin fact occurred
Project Development Project Implementation
Meth PanelSubmission Executive BoardRecommends for:-approval/consolidate-re-consideration-non-approval Agrees to:-Approve/consolidate (A)-Re-consideration (B)-Non-approval (C)
Made by PPs (through DOEs)
Methodologies| Process the basics
Public input / desk review of submission and public input
Types of CDM projects Number Percentage (%) kCERs 2012
kCERs
Hydro 970 30.21 95182 299275Wind 667 20.77 67198 214958Methane avoidance 380 11.83 14270 69692Biomass energy 368 11.46 23372 111626Landfill gas 199 6.20 32941 163502EE own generation 173 5.39 29177 125173N2O 65 2.02 48265 247404Fossil fuel switch 63 1.96 32169 125572EE industry 62 1.93 1806 9828Coal bed/mine methane 47 1.46 21788 79984Solar 37 1.15 969 1860
Types of CDM projects Number Percentage (%) kCERs 2012 kCERs
EE supply side 25 0.78 7480 11772EE households 24 0.75 1104 2605HFCs 22 0.69 81712 476479Reforestation 22 0.69 959 10174Fugitive 20 0.62 12902 52653Cement 19 0.59 3214 21502PFCs and SF6 13 0.40 4774 11279Geothermal 12 0.37 3182 12886Transport 6 0.19 563 2493Afforestation 5 0.16 122 585EE service 5 0.16 59 330Energy distribution 4 0.12 2268 3182CO2 usage 2 0.06 24 139Tidal 1 0.03 315 1104Agriculture 0.00
Total 3211 100.00 485814 2056055
CDMs in Myanmar
Potential CDM projects includes:
Afforestration
Biomass power generation
Small-scale hydropower <20MW
Biogas plant
Waste to Energy
Energy efficiency
Your ChoiceOR
Agenda
“CDM” Hydro Power Project vkyfoifhovm; ?
CDMs in Myanmar
“CDM” Hydro Power Project vkyfoifhovm; ?
Energy – Development – Poverty Alleviation
“CDM” Hydro Power Project vkyfoifhovm; ?
Green Energy – CDM – CER – Finance
Green Energy – Improve Climate Change
Improve Climate Change – Save Lives
Correct Vision
“Global warming is the greatest threat facing the world today – far greater than the threat from terror”Source: Sir David King, chief advisor to the British government, Dagbladet Information, Denmark, 10. Jan. 2004
Responses from Experts: Global Warming PreventionProject
“Obstruction CDM Project for reduction of Global warming or even preventing Conference Delegate to attend the Renewable Energy Conference is the same threat facing us– like the threat from terror”
Source: Mr. Htun Naing Aung, Chairman/CEO Kaung Kyaw Say Group of Companies, Naypyidaw Sep.17, 2011
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KKS CDM TeamU HTUN NAING AUNGOffice: +95-1-571284
Mobile: +95 (095183517)[email protected]
No.31 Pinlone Yeikmon 5th Street, Pinlone Yeikmon, Thingungyun Tsp, Yangon, MYANMAR 11071
Thank you for your kind attention