Automatic additionality for CDM micro-scale project activities

.DNA Help Desk’s

Step-by-step guide for DNA on“How to submit a recommendation”

Step 1: Check applicability

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Step 2: Review relevant

information[+]

Step 3: Prepare recommendation

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Step 4: Submit and wait

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Step 2: Review relevant information•Step 2.1: Terms & co

ncepts•Step 2.2.: Regulatory

documents•Step 2.3: Previous su

bmissions[-]

Step 3: Prepare recommendation •Step 3.1: Collect dat

a •Step 3.2 Analyze dat

a•Step 3.3: Complete f

orm•Step 3.4: Common

mistakes[-]

Step 4: Submit recommendation•Step 4.1.: Approval p

rocess

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Step 1: Check applicability•Step 1.1: LDC &SIDS•Step 1.2: Technologies alread

y automatically additional

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Introduction

This document guides DNAs on how to submit a recommendation for automatic additionality of specific grid-connected microscale renewable energy technologies in their country. It assist DNAs to meet, but does not replace, relevant regulatory requirements.

Why would a DNA want to submit a recommendation for automatic additionality? Read these reasons .

Please note that the guide does not apply to DNAs from least developed countries (LDCs) or small island developing States (SIDS) (Step 1.1 explains why).

The steps: Click on the four steps below to see and link to the sub-steps in this guide:

Step-by-step guide for DNAsSubmitting recommendations for automatic additionality of grid-connected microscale renewable energy technologies

First stepFeedback and Support

Reason #1

Making a submission is designed to be easy and require a minimum of data and analysis.

Proof of this is that already several DNA have successfully made submissions.

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Reason #2

If grid-connected renewable electricity generation technologies are automatically additional, then this saves CDM project participants money and time.

This is especially good for microscale project activities, where the revenue from CERs is sometimes not considered sufficient to warrant the effort to prove additionality.

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Reason #3

Encouraging the development of micro-scale project activities has these benefits:

•support sustainable development goals

•encourage transfer of technology•promote transfer of knowledge•attract new participants to the CDM because they are easier to implement and governed by simpler rules than large-scale CDM projects

Step 1: Check applicability of the guide

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Step 1: Check applicability of the guideStep 1.1: LDC/SIDS country check

LDC/SIDS do not need to apply this guide

DNAs from LDCs or SIDS do not prepare recommendations for automatic additionality of specific microscale renewable energy technologies, and therefore do not need to follow this guide. This is because these types of technologies are automatically additional for LDCs and SIDS.

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Tip - Useful links: List of LDCs and SIDS countries http://www.unohrlls.org/en/ldc/25/http://www.un.org/special-rep/ohrlls/sid/list.htm

Tip - Useful links: List of LDCs and SIDS countries http://www.unohrlls.org/en/ldc/25/http://www.un.org/special-rep/ohrlls/sid/list.htm

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Step 1: Check applicability of the guideStep 1.1: LDC/SIDS country check

LDC/SIDS do not need to apply this guide

These grid-connected and off-grid renewable energy technologies are already automatically additional (up to 15 MW of total installed capacity) and should not be included in the recommendation:•Solar technologies (photovoltaic and solar thermal electricity generation); •Off-shore wind technologies; •Marine technologies (wave, tidal); and•Building-integrated wind turbines or household rooftop wind turbines of a size up to 100 kW.Only progress with using this guide if there is at least one other technology not listed above to potentially recommend.

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Step 1: Check applicability of the guideStep 1.2: Technologies already automatically additional

Certain types of technologies are automatically additional in all countries

Step 1: Check applicability of the guideStep 1.1: LDC/SIDS country check

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Tip - Check for latest information: Automatically additional technologies are listed in paragraphs 2(b) and (c) of version 9 of the “Guidelines on the demonstration of additionality of small-scale project activities” (EB68, Annex 27). This positive list may change so it is important to check this website to look at the latest version of the guideline: http://cdm.unfccc.int/Reference/Guidclarif/index.html#meth

Tip #3: -Grid vs. off grid: Although the positive list in Step 1.2 refers to grid-connected as well as off grid renewable energy technologies, keep in mind that DNAs may only submit recommendations for grid-connected technologies.

Tip - Check for latest information: Automatically additional technologies are listed in paragraphs 2(b) and (c) of version 9 of the “Guidelines on the demonstration of additionality of small-scale project activities” (EB68, Annex 27). This positive list may change so it is important to check this website to look at the latest version of the guideline: http://cdm.unfccc.int/Reference/Guidclarif/index.html#meth

Tip #3: -Grid vs. off grid: Although the positive list in Step 1.2 refers to grid-connected as well as off grid renewable energy technologies, keep in mind that DNAs may only submit recommendations for grid-connected technologies.

Step 1: Check applicability of the guideStep 1.2: Technologies already automatically additional

Certain types of technologies are automatically additional in all countries

Step 2: Review relevant information

Click to continue

Click term to see definition

Is a set of project activities employing specific technologies that are defined in “Guidelines on the demonstration of additionality of small scale project activities” A project activity using technology(ies) belonging to a positive list is automatically additional.

Power generating technologies that are not primarily fueled by fossil fuels. CDM recognizes the following types, however other types may also be specified in a submission for recommendation of automatic technology: Hydro; Geothermal; Wind (off-shore, on-shore); Solar-PV; Renewable Biomass (Biogas (landfill gas, sludge gas, other biogas), Wood/Wood Wastes/Other Solid Wastes, Other renewable biomass); Marine (wave, tidal, ocean)

Connected to an electricity grid

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• Automatically additional

• Non-renewable energy technologies:

• Microscale

• Positive list

• Renewable energy technologies

• Grid-connected

Definition

A project type that is automatically eligible as a CDM project activity and does not need to validate its additionality. This may be defined in a positive list or by an approved DNA recommendation for automatic additionality.

Power generating technologies that are primarily fueled by non-renewable resources. CDM recognizes the following types, however other types may also be specified in a submission for recommendation of automatic technology: Combustible Fossil fuel (coal, oil, gas, others); nuclear.

In case of grid connected renewable energy technology, the installed capacity of any technology is up to 5 MW. There are also other types of microscale projects, but these are not relevant to this guide.

While preparing a recommendation you will come across a number of terms and concepts specific to the CDM. These definitions are particularly common:

The CDM Glossary of Terms has definitions for other terms.

Step 2: Review relevant informationStep 2.1: Terms and concepts

Many important terms and concepts have specific meanings in the CDM

• Additionality Additionality - The effect of the CDM project activity to reduce anthropogenic GHG emissions below the level that would have occurred in the absence of the CDM project activity

The requirements for developing and submitting a recommendation for automatic additionality are defined in the following guidelines, procedure and form. Complying with and understanding the requirements of these documents is covered in subsequent steps of this guide.•“Guidelines for demonstrating additionality of microscale project activities” http://cdm.unfccc.int/Reference/Guidclarif/ssc/methSSC_guid22.pdf

These guidelines describe the conditions under which DNAs can recommend specific microscale renewable energy technologies for automatic additionality. Namely, the maximum capacity of the renewable energy installation (5 MW) and the extent that the renewable energy technology is already used in the host country (see paragraph 2(d), version 04.0).

•“Procedure for submission and consideration of microscale renewable energy technologies for automatic additionalityhttp://cdm.unfccc.int/Reference/Procedures/methSSC_proc04.pdf

This procedure describes the process to submit recommendations of specific renewable energy technologies.•“Proposed specific renewable technologies/measures submission form” (F-CDM-PRT) https://cdm.unfccc.int/Reference/PDDs_Forms/Methodologies/methSSC_form08.doc

This form must be completed by the DNA as part of the process to submit recommendations of specific renewable energy technologies.

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Step 2: Review relevant informationStep 2.2: Regulatory documents

Become familiar with the relevant regulatory documents

Step 2: Review relevant informationStep 2.2: Regulatory documents

Become familiar with the relevant regulatory documents

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Tip –Useful links: Links are provided in this step for the most recent versions of these documents, at the time of preparing this guide. The version of a document is tracked by either its version number or the EB meeting number where it was approved, and its annex number to the meeting report.

Check the Rules and Reference section of the CDM UNFCCC website for any updates to regulatory documents.http://cdm.unfccc.int/Reference/index.html

Tip –Useful links: Links are provided in this step for the most recent versions of these documents, at the time of preparing this guide. The version of a document is tracked by either its version number or the EB meeting number where it was approved, and its annex number to the meeting report.

Check the Rules and Reference section of the CDM UNFCCC website for any updates to regulatory documents.http://cdm.unfccc.int/Reference/index.html

Several DNAs have already successfully made a recommendation for technologies that are automatically additional! Information related to all submitted recommendations for automatic additionality can be viewed at https://cdm.unfccc.int/DNA/submissions/index.html.

On this website you will notice that for each submission there is a call for public input (this is managed by the secretariat), a recommendation by the SSC WG, an EB decision and the validity date of the recommendation. Step 4 describes the process followed once a submission is received.

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Step 2: Review relevant informationStep 2.3: Previous submissions

Reviewing previous submissions helps understand how a recommendation is presented

Step 3: Prepare recommendation

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For a selected year y, that is not older than three years from the date of submitting the proposal, identify:1. For each grid connected renewable energy technologies that could potentially be recommended

for automatic additionality (except for wind, see tip), identify the installed capacity of each grid-connected power plant in the host country that is equal to or less than 5MW.

2. For all grid-connected technologies (e.g. renewable, non-renewable and wind technologies), identify the total installed capacity in the host country. Unlike the data collected for point 1, the installed capacities for individual power plants is not required, only the total grid-connected installed capacity of the technology.

•The data collected should include all grid-connected power plants in operation, including those registered or under validation as CDM project activities.•Record all sources of information, so that the person assessing the submission is able to double check the source of the data. As part of assessing a submission, the secretariat will check each of the data sources.

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Step 3: Prepare submissionStep 3.1: Collect data

Data on the grid-connected power generation sector is the basis for the recommendation

Step 3: Prepare submissionStep 3.1: Collect data

Data on the grid-connected power generation sector is the basis for the recommendation

Tip – wind technologies: The reason why it is not necessary to identify the installed capacity of wind power plants less or equal to 5MW, but this information is needed for every other technology potentially to be recommended for automatic additionality, is because of the design of wind power plants. Wind power plants, may consist of a number of wind turbines, sometimes spread over a large geographic area. It can be difficult to define and prove a situation that a number of small adjacent wind power plants are not in fact one large wind power plant. Because of this problem with defining installed capacities of wind farms, and the potential for different interpretations to change the results of analysis using the data, this information is not collected.

Tip - Data sources: The secretariat frequently has problems checking the data sources of submissions. Common problems are that there is not enough information to confirm the data source, information is difficult to understand because it is not in English and weblinks do not work. Seeking more information from DNAs on data sources can delay the assessment process. To avoid this issue, look at previous submission (see Step 2.3) to see the data sources that other DNAs used.

Tip – wind technologies: The reason why it is not necessary to identify the installed capacity of wind power plants less or equal to 5MW, but this information is needed for every other technology potentially to be recommended for automatic additionality, is because of the design of wind power plants. Wind power plants, may consist of a number of wind turbines, sometimes spread over a large geographic area. It can be difficult to define and prove a situation that a number of small adjacent wind power plants are not in fact one large wind power plant. Because of this problem with defining installed capacities of wind farms, and the potential for different interpretations to change the results of analysis using the data, this information is not collected.

Tip - Data sources: The secretariat frequently has problems checking the data sources of submissions. Common problems are that there is not enough information to confirm the data source, information is difficult to understand because it is not in English and weblinks do not work. Seeking more information from DNAs on data sources can delay the assessment process. To avoid this issue, look at previous submission (see Step 2.3) to see the data sources that other DNAs used.

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Using the data collected, calculate the following two parameters. •A. Sum of installed capacities of only microscale power plants (meaning plants with installed capacity less than or equal to 5 MW in year y in the host country), of each grid-connected renewable energy technology that is potentially to be recommended, excluding wind technologies (see column A of Example 1).•B. Total installed capacity of each grid-connected technology (including both power plants that are less than and more than 5 MW installed capacity in year y in the host country) (see column B of Example 1).Then calculate the percentage that the microscale technology to be recommended constitute of the total installed capacity of the grid-connected power sector, as follows•Divide each result for A above, by the sum of all results for B. If wind is potentially to be recommended in the submission, then use the corresponding value for B, in place of A for this calculation (see column C of Example 1).•Times these results by 100 to present this ratio as a percentage. If the percentage is equal to or less than 3%, then the renewable energy technology may be recommended for automatic additonality.A calculation spreadsheet for this analysis is available based on Example 1.

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Step 3: Prepare submissionStep 3.2: Analyze data

Calculate % microscale technologies constitute of the total installed capacity of the grid-connected power sector

Total installed capacity of RET <=

5MW in year y (MW)

Total Installed capacity of

technology in year y (MW)

(A) / (B) in year y (%)

(A) (B) (C)

Hydro 548 625 3.04%

Geothermal 0 0 0.00%

Wind: Off-shore -already on positive list- 10 -na-

Wind= On-shore -value equals B- 12 0.07%

Solar-PV -already on positive list- 1.45 -na-

Renewable Biomass 8 19 0.04%

Biogas 0 0 0.00%

Wood/Wood Wastes/Other Solid Wastes 0 0 0.00%

Marine -already on positive list- 0 -na-

Combustible Fossil fuel -na- -na- -na-

Coal -na- 17,350 -na-

Oil -na- 1,400 -na-

Gas -na- 620 -na-

Nuclear -na- 2,800 -na-

Total -na- 18006 -na-

Renewable energy technology  

Grid connected non-renewable electricity generation technologies

Grid connected electricity generation technology

Data sources/references

Example 1 is available as a spreadsheet:

Microsoft Excel 97-2003 Worksheet

For renewable energy technology types that could potentially be recommended, but there are no plants installed in the host country, the total installed capacity of the technology is 0

For renewable energy technology types that could potentially be recommended, but there are no plants installed in the host country, the total installed capacity of the technology is 0

Next stepStep 3.2

Step 3: Prepare submissionStep 3.2: Analyze data (Example 1)

Calculate % microscale technologies constitute of the total installed capacity of the grid-connected power sector

Step 3.3 continues

Download and complete the latest version of the form (see Step 2.2) and submit it to secretariat@unfccc.int together with the data that was used in preparing the submission.

The main part of the form contains non-technical information. Page 1 (version 2) is shown below:

List here the renewable energy technology types that are being recommended for automatic additionality.

List here the renewable energy technology types that are being recommended for automatic additionality.

Read carefully and then check these boxes to confirm these conditions have been met. The steps in this guide have taken these conditions into account.

Read carefully and then check these boxes to confirm these conditions have been met. The steps in this guide have taken these conditions into account.

Record here the title and version number of the documents listed in Step 2.2. When preparing the submission, use the most current versions of these documents.

Record here the title and version number of the documents listed in Step 2.2. When preparing the submission, use the most current versions of these documents.

Step 3: Prepare submissionStep 3.3: Complete form

Complete the submission form and submit with supporting information

The technical information is recorded in Tables 1 and 2 of the annex to the form. The result of Step 3.2 are recorded in Table 1 of the form. Table 2 of the form lists the grid connected renewable energy technologies that are being recommended for automatic additionality (e.g. those that have ratio in the grid-electricity equal to or less than 3%). The annex is shown below:

List here the specific technologies being proposed for automatic additionality. List here the specific technologies being proposed for automatic additionality.

The format of this table matches the example given in Step 3.2 The format of this table matches the example given in Step 3.2

Step 3: Prepare submissionStep 3.3: Complete form

Complete the submission form and submit with supporting information

Next stepStep 3.3

Below are some descriptions of issues the secretariat has observed in previous submission:•Technologies are recommended in submissions that are already on a positive list (see Step 1.2).•Data is missing or difficult to understand because it is not in English (For instance if is data table in a report is a source of information, then the entire report does not need to be translated, but the column headings, row headings and title of the table may need to be translated so that the data can be understood).•Weblinks provided for sources for data are invalid (check weblinks before submitting)•Data collected on power plants has excluded power plants that were either registered or in validation CDM project activities (include all power plants in operation, irrespective if they are CDM project activities or in validation). •Thermal units such as MWthermal shall be derived from electrical units such as GWh by applying a multiplication factor of 3.

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Step 3: Prepare submissionStep 3.4: Avoid common mistakes

Knowing about common mistakes can help to avoid them

Step 4: Submit recommendation

Click to continue

Follow the instructions given on the form for how to submit it.

The recommendations will be assessed as per the “Procedure for submission and consideration of microscale renewable energy technologies for automatic additionality” by the UNFCCC secretariat. One of the first parts of procedure is for the secretariat to seek public comments on the submission.

Next comes the assessment phases, during which the DNA may be approached by email or telephone for clarifications. Based on the assessment, the SSC WG members will recommend the Executive Board of CDM to approve or not approve the submission. The Board then decides to approve or not approve the submission during its next Board meeting. The decision will be recorded in the corresponding meeting report and on the website listing all submissions.

The validity or period of time during which the list of technologies being automatically additional starts when the Board makes that decision (usually last day of the meeting).

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Step 4: Submit submissionStep 4.1: Approval process

What happens after a DNA submission is received follows a documented procedure

Step 4: Submit submissionStep 4.1: Approval process

What happens after a DNA submission is received, follows a documented procedure

Tip– Useful links: The submissions website records in which CDM Executive Board meeting the submissions were approved: https://cdm.unfccc.int/DNA/submissions/index.html.List of CDM EB meetings and meeting reports available herehttp://cdm.unfccc.int/EB/index.html

Tip– Useful links: The submissions website records in which CDM Executive Board meeting the submissions were approved: https://cdm.unfccc.int/DNA/submissions/index.html.List of CDM EB meetings and meeting reports available herehttp://cdm.unfccc.int/EB/index.html

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Congratulations!

• You have completed the steps• The secretariat looks forward to receiving

your submission!

Please send us feedback on using the guide:

• Feedback on using this guide and suggestions for improvement are welcome and can be sent to DNA_helpdesk@unfccc.int.

• If a DNA had less than 10 registered projects at 31 December 2010, then the DNA Help Desk is very willing to give them case specific assistance applying the guide. Details on using the DNA Help Desk are available here: http://cdm.unfccc.int/DNA/helpdesk.

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