An online clean technology database

Financing Cogeneration and Small Hydro Projects in the Sugar and Tea Industry in East and Southern A

Biofuels from algae

An open pond for growing algae in Israel. (source: Seambiotic)

Producing biofuels from algae is still in a pre-commercial state of technology development. But algae-based biofuels are considered to be a promising upcoming alternative to fossil fuels as they could reduce GHG emissions when compared to fossil fuels, and because algal biofuels may have additional advantages over traditional biofuels such as higher per acre yields and less competition for arable land. The main obstacle to a wide spread use of algae-based biofuels are the high production costs.




Small hydropower

Small Hydro in Indonesia

Small hydropower here refers to hydroelectric power plants below 10MW installed capacity. Hydroelectric power plants are power plants that produce electrical energy by driving turbines and generators thanks to the gravitational force of falling or flowing water. Through the natural water cycle mainly evaporation, wind and rain, the water is then brought back to its original height. It is thus a renewable form of energy.

Clean Development Mechanism market status: 

[This information is kindly provided by the UNEP Risoe Centre Carbon Markets Group]

Project developers of hydro projects (excluding run of river projects) in the CDM pipeline mainly apply the following CDM methdologies: ACM2 “Consolidated baseline methodology for grid-connected electricity generation from renewable sources” for large-scale projects and AMS-I.D. “Grid connected renewable electricity generation” for small-scale projects

CDM projects based on hydro represent 27.4% of all CDM projects in the pipeline and, as such, are the most common project type in the pipeline. The geographical distribution of hydro projects is concentrated around Asia and in particular China [media:image:6] Excluding run of the river projects, the CDM pipeline contains 522 hydropower projects as of March 2011. Out of these 261 projects are registered and for a 101 projects CERs have been issued. 

Example CDM project:

Title: “Santa Cruz I Hydro Power Plant” (CDM Ref. No. 2405)
The CDM project is a run-of-the-river hydropower plant, located north east of Peru’s capital city of Lima at 1,985 metres above sea level, in the basin of the Blanco River (Santa Cruz) in the district of Colcas. The plant will have an installed capacity of 5.9 megawatts and a projected yearly average generation of 35,827 megawatt hours. The objective of the Santa Cruz I Hydroelectric Power Plant is renewable electricity generation to be supplied to the Peruvian National Inter-connected Electric Grid.
Project investment: USD 7,500,000
Project CO2 reduction over a crediting period of 7 years: 118,490 tCO2e
Expected CER revenue (CER/USD 10): USD 1,184,900
Hydropower plants represent 27% of all CDM projects requesting validation (UNEP Risoe). In absolute numbers this would mean 1351 projects and an installed capacity of 44995MW (UNEP Risoe). Currently 553 projects are registered.



To analyse, understand and build capacity for addressing the challenges associated with lending to the tea and sugar industry for sustainable energy investments and enhance networking among financial institutions interested in financing these sectors.

Locations

Zambia
15° 25' 0.12" S, 28° 16' 59.88" E
Uganda
0° 18' 56.0016" N, 32° 33' 56.16" E
Tanzania
6° 47' 60" S, 39° 16' 59.88" E
Mozambique
25° 57' 55.08" S, 32° 35' 21.12" E
Ethiopia
9° 1' 59.988" N, 38° 42' 0" E
Main activity and output: 
  • Consult sugar and tea industry representatives on financing barriers to energy development;
  • Assess the challenges and risks facing domestic and regional financial institutions associated with financing energy projects in the tea/sugar industry;
  • Review the constraints to the development of mechanisms for reducing financial risks;
  • Develop mechanisms for overcoming financial barriers to developing renewable energy and energy efficiency service (REES) units;
  • Train financial institutions and sugar and tea industry representatives on financing REES projects, risk assessment and mitigation measures;
  • Enhance networking and dialogue between domestic, regional and international financial institutions and investors.
Expected impact: 
  • Increased capacity of financial institutions in understanding the risks of financing REES in agro-industries, mitigating risks and undertaking REES investments in the cogen and tea industries;
  • Development of set of financial and risk mitigation instruments (including reports and short articles on financial barriers) accessible to the regions financial and sugar/tea community in order to facilitate REES investment;
  • Laying the groundwork for the development of a network of domestic, regional and international financial institutions and investors interested in financing REES in target countries;
  • Production of a website with information on the cogen and small hydro financing opportunities.