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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of the AIJ project

1. Title of project: Matanzas Hydroelectric Project

2. Host country: Guatemala

3. Brief project description:

This project will construct a hydroelectric dam that will generate electricity by renewable resource (water), thereby displacing combustion of fossil fuels that would otherwise be used to generate electricity. The dam is a 14 MW medium-head hydroelectric project with two power plants. Most of the power generated by the two sites will be sold to the Guatemalan national electric utility, Instituto Nacional de Electricidat (INDE). The average annual combined production is estimated at 82.4 GWh/yr. Plant size and water flow rates indicate that the hydro facility on the Chilasco River will be operational 72% of the time; the hydro facility on the Matanzas River will be operational will be operational 64% of the time. The Matanzas project is estimated to reduce GHG emissions by a total of 315,900 mt C or 1,156,194 mt of CO2 over a 15 year project life.

4. Participants:

Name of Organization or Individual

Country

Center for Sustainable Development in the Americas

United States

Tecnoguat S.A.

Guatemala

Energia Global International (EGI)

Bermuda

Item

Please Complete If Applicable

Organization

Name of organization (original language)Or

Name of individual if unaffiliated with any organization

Center for Sustainable Development in the Americas (CSDA)

Name of organization (English)

Center for Sustainable Development in the Americas (CSDA)

Acronym (original language)

Acronym (English)

CSDA

Department

Function(s) within the AIJ project activities

Project coordination

Street

1700 Connecticut Avenue, NW

City

Washington

State

District of Columbia

Post code

20009

Country

U.S.A.

Telephone

202-588-0155

Fax

202-588-0756

E-mail

csdainfo@csdanet.org

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Figueres

First name, middle name

Cristiana

Job title

Executive Director

Direct telephone

202-588-8155

Direct fax

202-588-0756

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Please Complete If Applicable

Organization

Name of organization (original language)Or

Name of individual if unaffiliated with any organization

Tecnoguate S.A.

Name of organization (English)

Tecnoguate S.A.

Acronym (original language)

Acronym (English)

Department

Function(s) within the AIJ project activities

Project development and coordination assistance

Street

Centro Gerencial Las Margaritas

City

Zona 10 Calle Diagonal 6 10-01

State

Cuidad Guatemala

Post code

Country

Guatemala

Telephone

502-339-3171/5

Fax

502-339-3176

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Esquivel

First name, middle name

Carlos

Job title

Direct telephone

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Please Complete If Applicable

Organization

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Energia Global International

Name of organization (English)

Energia Global International

Acronym (original language)

Acronym (English)

EGI

Department

Function(s) within the AIJ project activities

Project implementation

Street

401 Edgewater Drive

City

Wakefield

State

Massachusetts

Post code

01880

Country

U.S.A.

Telephone

781-224-1125

Fax

781-224-3375

E-mail

World Wide Web-URL address

Administrative Officer Responsible for the Project

Surname

Clark

First name, middle name

Peter

Job title

Officer

Direct telephone

781-224-1125

Direct fax

Direct e-mail

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

5. Description of AIJ project activities

Item

Type of Project

Sector(s)

Energy

Primary activity(ies)

Hydroelectric dam construction

Project Location

Country

Guatemala

Exact location (city, state, region)

Central Guatemalan state of Baja Verapax approximately 125 Kilometers north of Guatemala City at the confluence of the San Isidro-Matansas and Chilasco Rivers.

Key Dates and Current Stage of Project

Project starting date (month/year)

February 2001

Project ending date (month/year)

2016

Project lifetime (years)

15 years

Current stage of project

Beginning construction.

General Project Description and Technical Data

This project will construct a hydroelectric dam which will generate electricity by renewable resource (water) thereby displacing combustion of fossil fuels used to generate electricity. The dam is a 14 MW medium-head hydroelectric project with two power plants. Most of the power generated by the two sites will be sold to the national electric utility, Instituto Nacional de Electricidat (INDE). One of the project developers (Tecnoguat) and INDE have signed a long term (15 year, renewable) power purchase agreement.

The average annual combined production is estimated at 82.4 GWh/yr. Plant size and water flow rates indicate that the hydro facility on the Chilasco River will be operational 72% of the time; the hydro facility on the Matanzas River will be operational will be operational 64% of the time.

The project will address emissions of CO2 that result from the combustion of fossil fuels used in generating electricity. Greenhouse benefits of the project will consist of displacing electricity that would otherwise have been generated by thermal plants. The Matanzas project is estimated to reduce GHG emissions by a total of 315,900 mt C or 1,156,194 mt of CO2 over a 15 year project life.

6. Cost

(a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

Cost estimates are based on preliminary data from contractors and equipment suppliers. ??

(b) Cost data–Project development

Financing is being negotiated with Overseas Corporation (OPIC).

(c) Cost data–Project implementation.

The hydroelectric facility will cost $25,000,000 with an energy production of 82.4 GWh/yr. at a value of about $0.065/kWh. EGI will provide $5,000,000; additional funding is being sought.

7. Monitoring and verification of AIJ project activities and results

Item

Party(ies) that will be monitoring project activities

Tecnoguat, S.A. and CSDA have agreed to third party external verification by a Secretariat designee.

Party(ies) that will be externally verifying project results

The Guatemalan JI Office will conduct verification activities.

Date when the monitoring plan became (or will become) operational (month/year)

February 2001

Types of data that will be collected

The types of data to be collected will include water flow volume, electricity generated and electricity sold.

Description of Monitoring and Verification Activities and Schedule for Implementation

The Matanzas project developers plan to monitor the emissions reductions by using continuous water level metering at the hydrometric station upstream from the dam. Flow rates will then be converted to kilowatt hours. Flow data will be collected by the monitors every fifteen minutes. Additional information states that the electricity sold will be tracked in order to determine their annual return (100% of generated electricity will be sold). Electricity will be monitored every 15 seconds by meters on the busbar, on the high voltage side of the transformer. Meter data is the net electricity going into the line after losses in the turbine, generator, transformer and parasitic use by plant (lights, etc). Information on actual electricity sold will be included in the annual report submitted to the USIJI. The generation and sales of electricity will be tracked annually so if an unexpected weather event occurs, actual GHG emissions will be accounted for accurately.

B. Governmental approval

Item

Please check one of the following.

This report is a first report.or

This report is an intermediate report.or

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.or

This report is a separate report.

Additional comments (if any):

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities

Government electricity expansion plans call for an increase of 640 MW of installed capacity during the period 1996-2004. The planned mix is fossil fuel – 72%, geothermal – 3% and hydro – 25%. The current mix is fossil fuel - 60% and hydro-electricity – 40%. In November 1996, the Guatemalan legislature approved Law 93-96, the General Law of Electricity to restructure the industry and reshape the way electricity is marketed to Guatemalan customers. The Guatemalan government is actively promoting private investment by enacting laws that support the needs of an open market. The electricity sector is open to both local and foreign investment and ownership. This project fits within the goals and laws of Guatemalan government for increased power generation capacity.

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project

Positive impacts: Soil erosion along the riverbed will be reduced through the project. Local air pollution benefits include avoided SO2 emissions.

Negative impacts: Environmental impacts of the dams are mitigated by three factors: 1) all the activity of the project will concentrate on areas of land that have already been intervened, 2) size: both hydroelectric plants are small (full coverage is 0.022 sq km, and 3) localized impacts: adverse impacts on flora and fauna will be localized to the immediate dam area and can be reclaimed after the construction phase.

A detailed environmental management plan based on norms and standards has been established to prevent, control and mitigate the negative impacts.

Social/Cultural Impacts of the Project

Tecnoguat is prepared to contribute to the local community through improving the schools and health clinics in the area.

Economic Impacts of the Project

Socioeconomic development of the area is attractive. Construction will require about 250 workers, most of whom will come from surrounding areas. Post construction operation will provide about 30 jobs. Improved road access and the capital inflow can help jumpstart other economic activities in the area. An example is the small dam on the Matanzas river which can be seeded with local fish and serve as a source of income and protein to the villages.

E. Greenhouse gas impacts of the AIJ project

1. Scenario description

Item

Site Designation

Site number (order of presentation in this report)

1 of 1

Site name/designation

Project sector

Energy

Reference Scenario

Primary activity(ies)

Traditional housing

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The project will be implemented in phases. ????

Predicted Project Scenario

Primary activity(ies)

Energy efficient housing: Greenhouse gas emissions reduction

Description:

The hydroelectric dam will displace combustion of fossil fuels to meet demand equivalent to the dam power output.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 1

Project sector

Energy

Description of Calculation Methodology for the Reference Scenario

The calculation of the emissions baseline and total avoided emissions of CO2 from burning bunker fuel (80%) and diesel (20%) for the Matanzas project is made using the ProForm method developed by the Lawrence Berkeley Laboratory and the International Institute for Energy Conservation.

The reference scenario consists of fossil fuel combustion to produce a power output identical to that for the proposed project output.

Description of Calculation Methodology for the Project Scenario

The Matanzas project is estimated to reduce GHG emissions by a total of 315,900 mt C or 1,156,194 mt of CO2 over a 15 year project life.

Description of Calculation Methodology for the Actual Project

This information is not yet available.

3. GHG emission/sequestration data

  1. Reporting of GHG emissions/sequestration

Projected Net Greenhouse Gas Benefits: All Project Sites
(Tonnes, Full Molecular Weight Basis)

Sector(s):

Energy

Project Activity(ies):

Alternative energy generation (hydroelectric)

Year 1 =

To be determined; project life is 15 years after commercial operations start


Reference Scenario Emissions

Project Scenario Emissions

Net GHG Benefits
(Reference Scenario - Project Scenario)

Cumulative GHG Benefits
(Reference Scenario - Project Scenario)

Year

CO2

CH4

N2O

CO2

CH4

N2O

CO2

CH4

N2O

CO2-
Equivalent

CO2

CH4

N2O

CO2-
Equivalent

1

21,062

0

21,062

21,062

21,062

21,062

2

21,062

0

21,062

21,062

42,124

42,124

3

21,062

0

21,062

21,062

63,186

63,186

4

21,062

0

21,062

21,062

84,248

84,248

5

21,062

0

21,062

21,062

105,310

105,310

6

21,062

0

21,062

21,062

126,372

126,372

7

21,062

0

21,062

21,062

147,434

147,434

8

21,062

0

21,062

21,062

168,496

168,496

9

21,062

0

21,062

21,062

189,558

189,558

10

21,062

0

21,062

21,062

210,620

210,620

11

21,062

0

21,062

21,062

231,682

231,682

12

21,062

0

21,062

21,062

252,744

252,744

13

21,062

0

21,062

21,062

273,806

273,806

14

21,062

0

21,062

21,062

294,868

294,868

15

21,062

0

21,062

21,062

315,930

315,930

Total

315,930

0

315,930

315,930

315,930

210,566

(b) Additional information on GHG emissions/sequestration

Indirect or Secondary GHG Impacts (Positive and Negative)

Factors That Could Cause the Future Loss or Reversal of GHG Benefits

Factors that could cause loss of anticipated GHG emission reductions are associated with failure of the project. These include loss or depletion of the hydrologic resource due to drought, equipment failure, bad market conditions for renewable energy (e.g. increased competition from cheaper, dirtier energy sources) or failure by participating investors.

Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits

The project developers are fully insured for project failure due to equipment failure, natural disaster or financial failure.

F. Funding of the AIJ project

1. Identification of funding sources

(a) Funding sources for project development

Information is not available at this time.

(b) Funding sources for project implementation

The capital structure of the San Isidro-matanzas project consists of a total cost of $ 25,000,000. With $5,000,000 in Class A equity provided by the Grupo EGI (65%) and another investor (35%) and 20,000,000 being sought in senior long term financing from institutional investors. Based on an equity investment of US $ 5,000,000 and the underlying assumption, the 15 year internal rate of return (IRR) without carbon is estimated at 26.6 % and net present value of that investment is approximately $2.5 million with discount rate of 18%.

2. Assessment of additional funding needs

Current or Planned Activities to Obtain Additional Funding

In addition, the project is certified under Law 20-86, which grants income tax credits to Guatemalan companies developing renewable energy projects. Tecnoguat is seeking capital participation from Guatemalan investors through a "Participation Contract" in exchange for tax credit.

G. Contribution to capacity building and technology transfer

Contribution to Capacity Building and Technology Transfer

None.

H. Recent developments, technical difficulties, and obstacles encountered

Recent Project Developments

This information is not yet available.

Technical Difficulties and Other Obstacles Encountered

This information is not yet available.

I. Additional information

Additional Information

None.

J. Annex

1. Host country acceptance of the AIJ project

Country/Project Title

Name, Title, and Government Agency of the Designated National Authority

Date of Approval (day/month/year)

Guatemala/Mantazas Hydroelectric Project

Guatemalan Joint Implementation Office (OGIC)

25/2/98

  1. Letters of approval of this AIJ project report

A letter of approval from the Guatemalan Joint Implementation Office (OGIC), Ing. Eduardo Dopazo, Executive Director appears in the project proposal. The project was also approved by the Director of Energy, Ministry of Energy and Mines, Ing Henry L Thomas, Director General.


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