Promotion of Energy Saving through Application of Programmatic CDM at Tianjin Economic-Technological Development Area (TEDA), Tianjin City, China

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Promotion of Energy Saving through Application of Programmatic CDM at Tianjin Economic-Technological Development Area (TEDA), Tianjin City, China
FYFY 2007
Main Implementing EntityE & E Solutions Inc.
FS Partner(s)TEDA Administrative Commission
Location of Project ActivityTianjin Economic-Technological Development Area (TEDA), Tianjin City, China
Summary of FS ReportSummary (PDF182KB)
Description of Project ActivityIn TEDA, steam required for industrial plants is generated and distributed by a few district heating plants. Condensate generated at industrial plants through steam consumption is not recovered and utilized and results in huge energy loss. The project aims to promote effective utilization of sensible heat of such condensate through application of the scheme of programmatic CDM, which compose a part of a comprehensive energy efficiency promotion program at TEDA. The project will reduce consumption of coal required for steam generation and thus CO2 emission will also be reduced.
Targeted GHGCO2
Category of Project ActivityOthers (Energy Efficiency)
Duration of Project Activity/ Crediting PeriodPoA: 2008-2036
CPA: 10 years (fixed renewable period) or 7 years (renewable crediting period; renewed at most 2 times)
Baseline Methodology/ AdditionalityThe approved methodology applied to the proposed project activity is “AMS II. B. Supply side energy efficiency improvements – generation (Version 09)”. According to the methodology, the energy baseline is calculated as the monitored performance of the existing boilers of the district heating plant. The additionality is demonstrated by barrier analysis. As the project faces the following prohibiting barriers and registration of the project as a CDM will remove such barriers, it is concluded that the proposed project is additional.
(1) Investment barrier
  • To actualize a condensate recovery system, investment on new equipment to collect and utilize condensate is required.
  • Profit expected by energy saving (condensate recovery) will solely belongs to a steam generator as condensate is used as boiler feed water of the district heating plants. Therefore, there is no incentive for steam consumers to install facilities for condensate recovery.
(2) Technical barrier
  • Lack of technical know-how and experiences in condensate recovery prevailed in TEDA.
  • Contaminants in boiler feed water may cause problems such as scaling, carry-over and corrosion in boilers which leads to lower boiler efficiency and can even lead to boiler burst. Therefore, reuse of condensate as boiler feed water has higher technical risks.
Estimation of GHG Emission ReductionsThe amount of emission reduction of “A” plant, which is potential CPA under the PoA, is estimated to be 23 thousand tCO2 per year and 230 thousand tCO2 for the crediting period of 10 years. The GHG emissions reductions will raise according to the increase of number of CPAs included in the PoA.
Monitoring MethodologyMonitoring parameters for calculation of emission reductions includes specific enthalpy of recovered condensate and boiler feed water, and mass of recovered condensate. The specific enthalpy of condensate is determined by water temperature measured continuously or periodically as frequently as once a month or more. The specific enthalpy of boiler feed water is determined by water temperature measured periodically as frequently as once a month or more. The mass of recovered condensate is measured continuously by a stationary flow meter installed in condensate pipe. Monitoring of these parameters is implemented by the district heating plants. Meters satisfying national accuracy standards are used for the monitoring. Method and frequency of calibration follows national standards.
Environmental Impact AnalysisTypical facilities and equipment installed in each CPA includes condensate filter, water pump, condensate storage tank, condensate pipe and dissolved oxygen remover. Those have possibility to generate noise, but they will be installed inside the premises of plants, and appropriate abatement measures will be taken to comply with the applicable noise standards. Thus, it is very unlikely that the proposed project causes serious environmental impacts both inside and outside of TEDA.
Issues and Tasks for Project RealisationThe following issues and tasks are recognized about the project. We will continue discussion with the relevant organizations to realize the project as soon as possible.
  1. Necessity for the creation of incentive and the redistribution of revenue: It is necessary to create incentive for industrial plants in order to increase number of CPAs under the PoA as revenue through energy saving will solely belongs to a steam generator. Agreement on redistribution of revenue is vital element for realization of the project.
  2. Necessity for capacity building about condensate recovery technology and programmatic CDM: non-availability of human capacity to operate and maintain the condensate recovery and utilization technology prohibits the project. In addition to that, capacity building to the coordinating/managing entity is also required.