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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

UNIFORM REPORTING FORMAT:

ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE

The uniform reporting format contained below is to be used in reporting on activities implemented jointly under the pilot phase. It is noted that the reporting should be consistent with decision 5/CP.1 and 8/CP.2 (reproduced in annexes I and II to this reporting format). The SBSTA notes that the uniform reporting format could possibly require revision in the light of experience gained and methodological work conducted under the pilot phase.

A. Description of project

A. 1) Title of project: Eastern Indonesia Hybrid Energy Project

A. 2) Participants/actors:

Please fill in one table for each participant/actor. For individuals fill in as from item A Function within activity".

Item Please fill in if applicable

Name of organization(a):

Advanced Energy Systems Limited

Department:

Acronym:

AES

Function within activity:

Project Implementation

Street:

11 Brodie Hall Drive, Technology Park

City:

Bentley WA 6102

Country:

Australia

Telephone:

61-8-9470 4633

Fax:

61-8-9470 4504

E-mail:

------------

WWW-URL:

Contact person (for this activity):

------------

Surname:

Phillips

First name, middle name:

Stephen J.

Job title:

Managing Director

Direct tel:

-------------

Direct fax:

-------------

Direct E-mail:

-------------

Item Please fill in if applicable

Name of organization(a):

International Greenhouse Partnerships Office

Department:

Industry , Science and Resources

Acronym:

IGP Office/ISR

Function within activity:

Government AIJ/CDM administration

Street:

GPO Box 9839

Post code:

2601

City:

Canberra

Country:

Australia

Telephone:

61-2-6213 7891

Fax:

61-2-6213 7903

E-mail:

igp.australia@isr.gov.au

WWW-URL:

http://www.isr.gov.au/resources/energy_greenhouse/igp

Contact person (for this activity):

-------------------------------

Surname:

Stevens

First name, middle name:

Mark R.

Job title:

Assistant Manager, International Greenhouse Partnerships Office

Direct tel:

61-2-6213 7891

Direct fax:

61-2-6213 7903

Direct E-mail:

mark.stevens@isr.gov.au

Item Please fill in if applicable

Name of organization(a):

Export Finance and Insurance Corporation

Department:

Structured Trade & Project Finance

Acronym:

EFIC

Function within activity:

Project Finance

Street:

Export House, 22 Pitt Street

Post code:

2000

City:

Sydney NSW

Country:

Australia

Telephone:

61-2-9201 2111

Fax:

-----------------

E-mail:

WWW-URL:

Contact person (for this activity):

-----------------

Surname:

Howie

First name, middle name:

Nancy

Job title:

Senior Manager

Direct tel:

61-2-9201 2136

Direct fax:

61-2-9201 2295

Direct E-mail:

NHowie@efic.gov.au

Item Please fill in if applicable

Name of organization(a):

Australian Agency for International Development

Department:

Acronym:

AusAID

Function within activity:

Project Finance

Street:

GPO Box 887

Post code:

2601

City:

Canberra ACT

Country:

Australia

Telephone:

-----------------

Fax:

-----------------

E-mail:

WWW-URL:

Contact person (for this activity):

-----------------

Surname:

Fleeton

First name, middle name:

Mark

Job title:

Director, Indonesia Section

Direct tel:

61-2-6206 4750

Direct fax:

61-2-6206 4242

Direct E-mail:

mark_fleeton@ausaid.gov.au

Item Please fill in if applicable

Name of organization(a):

BPP Teknologi (Agency for the Assessment and Application of Technology)

Department:

Energy Technology Laboratory

Acronym:

BPPT/LSDE

Function within activity:

Project Implementation

Street:

--------------------

Post code:

15314

City:

PUSPIPTEK, Serpong, Tangerang

Country:

Indonesia

Telephone:

62-21-7560550

Fax:

62-21-7560904

E-mail:

lsdemail@mimo.bppt.go.id

WWW-URL:

Contact person (for this activity):

--------------------

Surname:

Mulyadi

First name, middle name:

Rachmat

Job title:

Head

Direct tel:

62-21-7560129, ext 1323, 1325

Direct fax:

62-21-7560904

Direct E-mail:

lsdemail@mimo.bppt.go.id

Item Please fill in if applicable

Name of organization(a):

Pt. Len Industri (Persero)

Department:

Acronym:

-----------------

Function within activity:

Project Implementation

Street:

Jalan Sukarno Hatta 442

Post code:

-----------------

City:

Bandung

Country:

Indonesia

Telephone:

62-22-5202682; 62-22-5202686; 62-22-5208036

Fax:

62-22-5202695; 62-22-5208036

E-mail:

WWW-URL:

Contact person (for this activity):

-----------------

Surname:

Rivai

First name, middle name:

Dodi H.

Job title:

Director, Commerce

Direct tel:

-----------------

Direct fax:

-----------------

Direct E-mail:

-----------------

Item Please fill in if applicable

Name of organization(a):

Indonesian Ministry of Environment

Department:

Acronym:

Function within activity:

Government AIJ/CDM administration

Street:

JL. D. I. Panjaitan Kav. 42

13410

Post code:

13410

City:

Jakarta Timur

Country:

Indonesia

Telephone:

62/21/8580111; 62/21/8518138

Fax:

62/21/8580111; 62/21/8518138

E-mail:

WWW-URL:

Contact person (for this activity):

--------------------------------------------------------------

Surname:

Sugandhy

First name, middle name:

Aca

Job title:

Assistant Minister for Environment

Direct tel:

62/21/8580111; 62/21/8518138

Direct fax:

62/21/8580111; 62/21/8518138

Direct E-mail:

sugandhy@cbn.net.id

a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc. involved in the activity, i.e. research institutes associated with the project, auditors, government agency closely following the activity.

A. 3) Activity:

Item Please fill in if applicable

General description:

The objective of this project is to design, install, monitor and evaluate the performance of solar/diesel hybrid power systems which are to provide electricity to 14 villages in eastern Indonesia. The systems will be used to provide affordable electricity for lighting and basic entertainment. In total, the hybrid energy systems will provide electricity to approximately 2,800 houses.

Rural Indonesian villages presently rely extensively on kerosene for lighting and the hybrid power supply systems will displace kerosene use for this purpose. Although there will be some reliance on diesel fuel for electricity production, the resultant greenhouse gas emissions will be far less that those avoided from the displacement of kerosene use. The reduction in emissions will arise from two factors;

. an increase in the overall energy efficiency with which lighting

services are provided; and

  • . reliance on solar energy to meet 50% of the electricity requirements.

Type of project:a)

Renewable energy/energy efficiency

Location (exact, e.g. city, region,

state):

South Sulawesi

Activity starting date:

September 1999

Expected activity ending date:

September 2000

Stage of activity:b)

in advanced planning

Lifetime of activity if different from ending date:c)

The hybrid systems are designed to remain in operation beyond the completion of formal monitoring and reporting for AIJ/CDM purposes.

Technical data:d)

The systems will comprise an 8 kW photovoltaic array, 20 kVA inverter/charger, 86 kWh battery bank, 20 kVA diesel generator, solar regulator, control system and distribution network for an average of 200 houses.

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data requirements are.

A. 4) Cost (to the extent possible):

Item Total Cost

Cost of the project in US$:

4.2 million (approx)

AIJ component in US$:

2.8 million (approx)

US$ per avoided ton of CO2 equivalent:

200 (20 year economic life)

Describe briefly how costs are determined:

The costs include the design, planning, manufacture, installation, monitoring, testing, training of installation staff, and commissioning of the 14 hybrid energy systems in rural villages in South Sulawesi. Each system will be comprised of photovoltaic arrays, batteries, power conditioning/control system, diesel generator set and electrical distribution. The figures in the table are based on a conversion rate $1Aus to $0.63 US.

The estimated saving in CO2 per year is 1046 tonnes. It has been assumed that the economic lifetime of the project is 20 years equalling a total saving of some 20,900 tonnes. Hence that cost per tonne of CO2 is therefore $200 per tonne saved. Further information on emission savings is contained in Section E of this paper.

A. 5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involved):

Under the contractual arrangements between AES and the project financiers, AES is required to provide project implementation and project completion reports and provide six monthly reports on the uptake and physical installation of the hybrid energy systems. The hybrid power supply systems also will have communication mechanisms installed which will enable remote monitoring of the systems and associated networks. Further details of the arrangements for operating, maintaining, and assessing the performance of the systems are contained in Section C of this Report.

With regard to monitoring emission savings arising from the project, records of diesel fuel consumption and the number of houses provided with electricity will be retained by the organisations responsible for project implementation (AES, BPP Teknologi) and reported to the designated national authorities for AIJ/CDM purposes (Indonesian Ministry of Environment, International Greenhouse Partnerships Office) on a annual basis. The International Greenhouse Partnerships (IGP) Office will determine the extent to which greenhouse gas emissions are reduced from the use of electricity in place of kerosene for lighting. The IGP Office will also determine the extent to which emissions are increased by using diesel fuel to provide a portion of the overall electricity supply. By comparing the reductions in emissions arising from kerosene displacement and the increase in emissions from diesel fuel use, the IGP Office will determine the overall net reduction in emissions. Further information on the determination of greenhouse gas emissions is contained in Section E of this report .

a) Please ensure that detailed contact information for all organizations mentioned is reported under

section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities, which shall be shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of each and every participating Party. Information will only be compiled once reports have been received from all participating Parties.

B. 1) For the activity:

  • The joint reporting on this project has been endorsed by the Indonesian Ministry of Environment, the International Greenhouse Partnerships Office, the Export Finance and Insurance Corporation, the Australian Agency for International Development, Advanced Energy Systems, BPP Teknologi, and Pt Len Industri.

B. 2) This report is a joint report:

  • The presentation of this report and its contents are considered to be submitted as a joint report from the Indonesian Ministry of Environment, the International Greenhouse Partnerships Office, the Export Finance and Insurance Corporation, the Australian Agency for International Development, Advanced Energy Systems, BBP Teknologi, and Pt Len Industri.

B. 3) General short comment by the government(s) if applicable:

C. Compatibility with and supportiveness of national economic development and socioSeconomic and environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national economic development and socioSeconomic and environment priorities and strategies

This project has a variety of non-greenhouse benefits. Principal among these is the skill and technology transfer associated with the design, installation and operation of the hybrid energy systems to be used in this project.

The project will cover the training of operators on-site, the training of engineers at BPP Teknologi , the provision of supervision of on-site installation and maintenance. A test facility will also be established at BPP Teknologi’s Energy Technology Laboratories as part of the project to provide Indonesia with the capability to test system components. As part of the project, a social preparation stage will be undertaken which includes clarification of procedures to be adopted to ensure the project targets low-income households and details of the training program for the operation and maintenance of hardware in villages.

Within the context of the country’s sector developments, this project meets the requirements of the Indonesian Government in a number of ways. They include expansion of the electricity services in rural eastern Indonesia using environmentally sound technologies, the alleviation of rural poverty and the supply of infrastructure which will enhance the economic well being of the villages.

It is envisaged that an Integrated Electricity Plan (IEP) will be implemented at the village cooperative level (KUD) with revenue being collected through rural banks. BPP Teknologi in conjunction with appropriate planning authorities will select villages which meet the following general criteria including future access to state electricity utility (PLN) connection, availability of other power sources, income levels and ability to enter into management and training/service programs. The local village KUD or another authorised KUD will manage designated locations at which electricity will be prepaid and will also be involved in future electricity demand and supply side management options.

In Indonesia, there are some 24 million rural households without electricity. The provision of electricity to these households is a major priority for the Indonesian Government. In recent years some 800,000 households have been provided with a new electricity supply each year, primarily by being connected into a centralised electricity grid.

A recent World Bank-funded study into solar-based rural electrification concluded that such systems could be an economically viable option for up to 25-40% of non-electrified households (ie. 6-10 million houses). Renewable energy technology typically has significantly less impact on the environment, both at a local and global level, than conventional energy sources (eg. coal, oil). By increasing the use of renewable energy where it is economically viable, the project will contribute to the twin goals of sustainable development and economic growth, particularly in the less economically endowed rural regions of Indonesia.

Sensible application of renewable energy systems to meet Indonesia’s economic development objectives is important for other reasons. Indonesia’s move away from being an oil dependent economy to one based on value-added manufacture exports has set in motion an energy-dependent growth path. Estimates reveal that the growth in domestic energy demand averaged around 7% throughout the 1980s but will increase 3-fold in the 1990s and 14-fold by the year 2020. This economic growth will be fuelled by rapid industrial output producing unprecedented levels of urban and industrial pollution placing a great strain on Indonesia’s human and natural environments. The importance of renewable energy technologies is highlighted by the Indonesian Government as an important aspect of Indonesia’s sustainable development.

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of quantitative information is too large, the source could be indicated.)

Item Please fill in

Describe environmental benefits in detail:

The adoption of this program is aimed at reducing electricity consumption, consequently avoiding the consumption of diesel fuel which is used to generate the electricity. The resultant reduction in diesel fuel consumption will have positive global environmental benefit through a reduction in emissions of greenhouse gases. There will also be local environmental benefits from a reduction in the use of diesel including a reduction in local air pollution and a reduced risk of spillage of diesel fuel, which could potentially have a major adverse impact in an environmentally sensitive environment (eg. coral reefs).

Do quantitative data exist for evaluation of environmental benefits?

Yes

Describe social/cultural benefits in detail:

The project will have positive social benefits through the increase in local employment to service hybrid energy systems. The project will also have a positive impact on the balance of payments of Indonesia by reducing the domestic demand for petroleum products (diesel) and enabling Indonesia to remain an exporter of crude oil. There are good prospects for attaining a high local content from the use of hybrid energy systems. Even in this initial project, Indonesian content will be in excess of 45%.

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

The hybrid energy project will reduce costs of providing a 24-hour/day electricity supply to rural areas of Indonesia. The provision of a 24-hour/day electricity supply at relatively low marginal cost opens up the prospects for village-based industry.

Do quantitative data exist for evaluation of economic benefits?

Information gathered from this project will enable an assessment to be made of the costs and benefits of hybrid energy systems.

E. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable and long-term environmental benefits related to the mitigation of climate change that would not have occurred in the absence of such activities

E. 1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

In rural villages in Indonesia, there is extensive use of kerosene for lighting. World Bank reports indicate that daily kerosene use for lighting averages approximately 0.5 litre/household. This assumption is adopted in the AIJ rural electrification project in Indonesia being funded by electricity utilities from G-7 countries.

Based on this assumption, the total amount of kerosene which will be saved annually by each household is 182.5 litres. The combined savings of all the 2,800 houses will be approximately 511,000 litres each year.

Based on the IPCC report entitled "Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories", there are some 2.63 kilograms of carbon dioxide produced through the combustion of 1 litre of kerosene. On this basis, it is estimated that savings in kerosene will reduce annual carbon dioxide emissions by approximately 1,344 tonnes.

E. 2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

The hybrid energy systems will partially rely on diesel fuel to generate electricity for the villages, particularly during days when there is little sunshine. Based on simulations using the RAPSIM computer model developed by the Murdoch University Energy Research Institute (MUERI), Advanced Energy Systems estimates that the systems will each consume approximately 7,856 litres of diesel annually. On this basis, the total amount of diesel consumed by the 14 hybrid systems annually will be approximately 110,000 litres.

Based on the above IPCC report, the combustion of 1 litre of diesel produces approximately 2.71 kilograms of carbon dioxide. On these figures, the diesel fuel related emissions from the 14 hybrid systems will be approximately 298 tonnes per year.

In summary, the net annual savings in carbon dioxide emissions are estimated to be approximately 1046 tonnes. To validate and/or refine these estimates, the diesel fuel consumption of the hybrid energy systems will be monitored. Further information on the monitoring procedure is contained in Section A5 of this report.

E.2.1) Summary table: Projected emission reductions:

GHG

Over Project Year

A) Project baseline scenario

CO2

1344 tonnes

B) Project activity scenarioa)

CO2

298 tonnes

C) Effect ( B-A )

CO2

1046 tonnes

D) Cumulative effect

CO2

a) Includes indirect GHG leakages.

F. Bearing in mind that the financing of activities implemented jointly shall be additional to financial obligations of Parties included in Annex II to the Convention within the framework of the financial mechanism as well as to current official development assistance flows, please indicate

Source of project funding

(For each source one line)

Amount

(US dollars)

Export Finance and Insurance Corporation $2.8 million
Australian Agency for International Development $1.4 million

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties

As noted under Sections C and D of this report, the project will contribute significantly to capacity building and in the transfer of environmentally sound technologies and know-how to the developing country Parties involved in the project.

H. Additional comments, if any, including any practical experience gained or technical difficulties, effects, impacts or other obstacles encountered

Annex I

EXTRACT FROM:

FCCC/CP/1995/7/Add.1:

REPORT OF THE CONFERENCE OF THE PARTIES

ON ITS FIRST SESSION, HELD AT BERLIN FROM 28 MARCH TO 7 APRIL 1995

Addendum

PART TWO: ACTION TAKEN BY THE CONFERENCE OF THE PARTIES

AT ITS FIRST SESSION

Decision 5/CP.1

Activities implemented jointly under the pilot phase

The Conference of the Parties,

Recalling that, in accordance with Article 4.2(d) of the United Nations Framework Convention on Climate Change, the Conference is required to take decisions regarding criteria for joint implementation as indicated in Article 4.2(a),

Noting that the largest share of historical and current global emissions of greenhouse gases has originated in developed countries, that per capita emissions in developing countries are still relatively low and that the share of global emissions originating in developing countries will grow to meet their social and development needs,

Acknowledging that the global nature of climate change calls for the widest possible co-operation by all countries and their participation in an effective and appropriate international response, in accordance with their common but differentiated responsibilities and respective capabilities and their social and economic conditions,

Recognizing that,

(a) According to the provisions of the Convention, the commitments under

Article 4.2(a) to adopt national policies and to take corresponding measures on the mitigation of climate change apply only to Parties included in Annex I to the Convention (Annex I Parties), and that Parties not included in Annex I to the Convention (non-Annex I Parties) have no such commitments,

(b) Activities implemented jointly between Annex I Parties and non-Annex I Parties will not be seen as fulfilment of current commitments of Annex I Parties under Article 4.2(b) of the Convention; but they could contribute to the achievement of the objective of the Convention and to the fulfilment of commitments of Annex II Parties under Article 4.5 of the Convention,

(c) Activities implemented jointly under the Convention are supplemental, and should only be treated as a subsidiary means of achieving the objective of the Convention,

(d) Activities implemented jointly in no way modify the commitments of each Party under the Convention,

1. Decides:

(a) To establish a pilot phase for activities implemented jointly among Annex I Parties and, on a voluntary basis, with non-Annex I Parties that so request;

(b) That activities implemented jointly should be compatible with and supportive

of national environment and development priorities and strategies, contribute to

cost-effectiveness in achieving global benefits and could be conducted in a comprehensive manner covering all relevant sources, sinks and reservoirs of greenhouse gases;

(c) That all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities;

(d) That activities implemented jointly should bring about real, measurable and long-term environmental benefits related to the mitigation of climate change that would not have occurred in the absence of such activities;

(e) That the financing of activities implemented jointly shall be additional to the financial obligations of Parties included in Annex II to the Convention within the framework of the financial mechanism as well as to current official development assistance (ODA) flows;

(f) That no credits shall accrue to any Party as a result of greenhouse gas emissions reduced or sequestered during the pilot phase from activities implemented jointly;

2. Further decides that during the pilot phase:

(a) The Subsidiary Body for Scientific and Technological Advice will, in coordination with the Subsidiary Body for Implementation, establish a framework for reporting, in a transparent, well-defined and credible fashion, on the possible global benefits and the national economic, social and environmental impacts as well as any practical experience gained or technical difficulties encountered in activities implemented jointly under the pilot phase;

(b) The Parties involved are encouraged to report to the Conference of the Parties through the secretariat using the framework thus established. This reporting shall be distinct from the national communications of Parties;

(c) The Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation, with the assistance of the secretariat are requested to prepare a synthesis report for consideration by the Conference of the Parties,

3. Further decides:

(a) That the Conference of the Parties shall, at its annual session, review the progress of the pilot phase on the basis of the synthesis report with a view to taking appropriate decisions on the continuation of the pilot phase;

(b) In so doing, the Conference of the Parties shall take into consideration the need for a comprehensive review of the pilot phase in order to take a conclusive decision on the pilot phase and the progression beyond that, no later than the end of the present decade.

10th plenary meeting

7 April 1995

Annex II

EXTRACT FROM:

FCCC/CP/1996/15/Add.1:

Report of the Conference of the Parties on its second session, held at Geneva from 8 to 19 July 1996, Part two: Action taken by the Conference of the Parties at its second session

Decision 8/CP.2

Activities implemented jointly under the pilot phase

The Conference of the Parties,

Reaffirming its decision 5/CP.1 on activities implemented jointly, whereby the Conference of the Parties is to review the progress of the pilot phase with a view to taking appropriate decisions on its continuation,

1. Takes note of the progress report on activities implemented jointly (FCCC/CP/1996/14 and Add.1);

2. Decides to continue the pilot phase;

3. Invites Parties to report in accordance with the initial reporting framework adopted by the Subsidiary Body for Scientific and Technological Advice at its second session (FCCC/SBSTA/1996/8, annex IV);

4. Requests the secretariat to support the work on issues relating to activities implemented jointly as agreed by the Subsidiary Body for Implementation and the Subsidiary Body for Scientific and Technological Advice.

8th plenary meeting

19 July 1996