Regional Cooperation under Article 6 Approaches for the Allocation of ERs and CA Setting the Scene 1: Electricity System in Southern Africa Southern African Development Community (SADC): 15 countries Southern African Power Pool (SAPP) 9
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Presentation Transcript
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Regional Cooperation under Article 6 Approaches for the Allocation of ERs and CA<br>
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Setting the Scene 1: Electricity System in Southern Africa Southern African Development Community (SADC): 15 countries
Southern African Power Pool (SAPP)
9 countries highly interconnected (Botswana, DRC, Eswatini, Lesotho, Namibia, Mozambique, RSA, Zambia, Zimbabwe) / 3 countries member to SAPP but not connected yet (Angola, Malawi, Tanzania)
Joint SAPP expansion plan, approved by all utilities and all Ministries of Energy of all SAPP member states
Three scenarios: i) national expansion, ii) high regional integration (approved) and iii) high RE
Take away:
Regional integration is economically cost effective (savings of USD 34.3 billion up to 2040)!
Regional power system is a reality! How about regional climate planning? No 2<br>
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Setting the Scene 2: Joint Emission Factor for the Power System Joint Grid Emission Factor (specific emission factor in tCO2/MWh) for the SAPP power system
signed by all nine countries
approved by UNFCCC as Standardized Baseline / but not reflected in national GHGIs
CDM world: Possible to generate CERs in a country where the national GHG inventory reports no emissions for ‘stationary power generation’ under IPCC Sector ‘energy’
True for imports and exports:
Eswatini (net importer, clean national power system), additional national generation from PV plant would reduce imports of GHG emission intensive electricity from the PES;
DRC (net exporter, clean national power system), additional national hydropower generation / hydro-electricity export replaces GHG emission intensive electricity generation in the joint PES
Paris world: How to do corresponding adjustments? No 3<br>
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Solar PV Hydro Biomass Wind Step 1: Carry out a regional tender for RE covering all SAPP countries Step 2: Selection of RE projects and determination of FIP payments Step 3: Calculation of transferrable mitigation units Step 4: Make payment based on wheeled power units Feed-in premium (FIP) process Clean Energy Fund for SAPP (CEF4SAPP)<br>
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Regional Carbon Finance / Corresponding Adjustment Take away CEF4SAPP:
Regional carbon finance mechanism is i) feasible and ii) most cost efficient and iii) is in line with the regional energy planning and policies
Problem statement:
Example:
PV plant in Eswatini, no national GHG emissions from the electricity sector, LCOE above benchmarks for firm and volatile power generation, replaces GHG intensive electricity imports from RSA
Project located in Eswatini, emission reductions take place in South Africa
Who owns the ERs? How to do the corresponding adjustment? No 5<br>
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Options for Corresponding Adjustments 1 Option 1: Subtract the ITMOs from unconditional GHG emissions in Eswatini
Eswatini has GHG emissions in all four IPCC sectors including the energy sector
Electricity is only a sub-sector of the IPCC sector ‘energy’
Subtract generated ITMOs (i.e. GEF x electricity generation) from the GHG emissions of the IPCC sector ‘energy ‘
Option 2: GHG emission reduction takes place in RSA, ITMO transfer from RSA to financing party
Probably only possible, if RSA is offtaker of electricity produced in Eswatini
Otherwise no interest to give up ITMOs/NDC performance No 6<br>
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Options for Corresponding Adjustments 2 Option 3: Regional GHG accounting
Common (regional) NDC baseline and target setting for the SAPP member countries
Each country accounts for the regional emission factor x national demand
Subtracts ITMOs from national GHG emissions (which consider emissions from power production in all SAPP member states) No 7<br>
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Options for Corresponding Adjustments 3 Option 3: Regional GHG accounting
Regional energy planning must transcend into regional climate planning !
Article 4, §16 of the PA: No 8<br>
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No 9 Thank you for your attention Martin Burian & Joachim Schnurr
GFA Consulting Group
Climate Competence Center<br>
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6/24/20 Footer (Edit via Einfügen | Kopf- und Fußzeile) No 10<br>
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6/24/20 Footer (Edit via Einfügen | Kopf- und Fußzeile) No 11<br>
