CDM EE-Lighting

There exist three main approaches to determine gross energy savings.

1. Measurement and Verification (M&V): Here do AM 0046 and AMS II.C belong to. They possess complex statistical monitoring procedures and thus require a lot of resources but are very accurate.
2. Deemed Savings: It is meant to simplify as it is based on stipulated (“deemed”) values coming from historical savings values of typical projects - only installation and operation is verified. Therefore the calculated energy savings are less complex and less resource intensive but are also less accurate.
3. Gross Billing Analysis: It conducts statistical analyses on the energy usage data for all or most of the participants and non-participants of the program. There it is mostly used for residential programs with homogenous participants.
   

Measurement and verification (M&V) approaches

Methodology AM 0046 – Large scale methodology

For distribution of CFLs to households. It took from 2004 – 2006 to be approved by UNFCCC (developed by CDM consultancy Perspectives)

Very complex and time and monitoring intensive procedure (questionable if ever applied):

• Utilization hours of each lamp in sampling groups should be metered individually
  
• Metering equipment has to be attached to lamp or cable
  
• Social lottery be introduced to provide incentives
  

Determination of emission reduction:

• Difference in absolute lighting energy use between baseline sample group and project sample group, multiplied by grid emission factor (determined by methodology ACM 0002)
• If significant differences exist between sample groups and cross-check groups adjustments take place
• Power correction factor is applied
  • Takes into account that lamp electricity use depend on actual grid voltage achieved
• Information requirements: household names, addresses, GPS coordinates, dates of return of GLS and distribution of CLS, number of installed lamps at each spot check etc.

Baseline Methodology

Step 1: Determination of the project area(s) i

Step 2: Establish project activity implementation plan

type of bulbs, number of bulbs distributed, Eligible household etc.)

Step 3: Determination of size of the household pool to establish BSG and PSG

Minimum size (for statistical representation) of 200 households for sampling

Step 4: Selection of the households to be included in the BSG and the PSG

Formula to select randomly and representative

Step 5: Installation of measurement equipment

Step 6: Allocation of households to the BSG and PSG

By coin toss allocate households to pool of BSG or PSG

Step 7: Establishment of Baseline sample buffer group (BSBG) and project sample buffer group (PSBG) (not mandatory)

To participate if households of BSG/PSG number decreases or else

Step 8: Establishment of project database

For each spot check at household: lighting appliance documentation

Step 9: Monitoring of utilization hours/electricity

Spot checks every 3-6 months at all participating BSG and PSG households (are all lighting appliances still there and/or if there are additional ones, are all measurement equipments functioning appropriately, document electricity consumption meter or the utilization hour meter into database)

Step 10: Determination of the power correction factor (PCF)

The PCF is applied in order to reflect the effect of varying grid voltage on electricity consumption

Step 11: Calculation of the mean and standard deviation of household electricity consumption for lighting

Step 12: Estimation of technical distribution losses in the electricity grid

Step 13: Cross-check of monitoring results by random sampling of households not included in the BSG, PSB, BSBG and PSBG

Step 14: Calculation of emission reductions

Monitoring Methodology
A lot of ex-post surveys and spot-checks

AMS II:C - Small scale methodology (also a registered PoA)

“Demand-side energy efficiency activities for specific technologies”

• Has a threshold of participants – compared to large scale
• Meant to make implementation and monitoring less complex (less statistics etc.) than large scale - but adapting the methodology to real-life projects conditions and requirements rose
• Still distribution and monitoring are highly sophisticated

Programs of Activities

Allows to submit an unlimited number of projects during 28 years – thus a reduction of monitoring costs occurs because only a sample of all projects has to be monitored. Still, if this is really working has to be proved. Based on AMS II.C.

For example, Bachat Lamp Yojana, India is a PoA

Calculation:

• Calculates lighting hours and number of functioning CFLs by monitoring randomly sampled households
• Calculation of lighting usage hours:
  • Technology: a monitoring equipment that transmits the lighting usage hour data to a central server (was difficult to get this costly equipment and is not clear how reliable it is)
• Calculation of number of functioning CFLs
  • Spot checks of randomly selected households at the end of each monitoring interval (every 6 months)
  • Supported by DISCOMs
• Power rating of replaced lamps and distributed CFLs together with number of lamps and usage hours determine energy savings – multiplied by relevant grid emission factor determines emission reductions
• Because of sampling: adjustment by sampling errors (but smaller sample size leads to higher margin of error

File:Icon arrow right.png Trade-off between sample size (less transaction costs) and CER volume

File:Icon arrow right.png careful contemplation of optimal sample size is necessary to maximize CER volume under transaction costs constraints

Deemed savings approach

 General

Most widely used approach to quantify energy savings from DSM programs that promote the uptake of small electrical end-use equipment.

Gross energy savings:

• estimated based on stipulated values coming from historical savings values of typical projects - only installation and operation is verified
• Only valid for fixed operating conditions and well-known, documented stipulation values
• Calculation: Multiplying number of installed measures by estimated savings per measure

Adjustment by net-to-gross (NTG) ratio taking into account:

• Free ridership: energy savings that would have taken place in absence of program
• Spillover: program-induced adoption of measure by non-participants/participants not claiming financial or technical assistance

Net energy savings: Multiplying gross energy savings by NTG ratio

AMS II.J - Small scale methodology

“Demand-side activities for efficient lighting technologies”

Approved August 2008 based on World Bank. Follows deemed savings approach.

• Reduces monitoring requirements as it supposes certain parameters to be “deemed” - still the CDM Executive Board (EB) did not approve all parameters that the World Bank wanted to be “deemed” and requests some ex-ante and follow-up surveys
• Accepted “deemed” parameters by EB: lighting usage hours (3.5 h), type of baseline technology, power rating of the baseline equipment
• But: Trade-off between accuracy in emission reduction calculation and practicability of the methodology application
• Generates significantly less CERs than other methodologies based on monitoring: If e.g. daily operation is set at 3.5 h, but in reality is at 5.1 h that leads in 10 years to a reduction in CER by over 30%

Gross billing analysis

• Conducts statistical analyses on the energy usage data for all or most of the participants and non-participants of the program
• Is mostly used for residential programs with homogenous participants

Footnotes 

Axel Michaelowa & Daisuke Hayashi & Marc Marr: Challenges for energy efficiency improvement under the CDM—the case of energy-efficient lighting; Energy Efficiency (2009) 2:353–367