| Title of Feasibility Study (FS) | CDM Feasibility Study for Installation of Solar Water Heating Systems in Viet Nam |
| FY | FY 2008 |
| Main Implementing Entity | Mitsubishi UFJ Securities Co., Ltd. |
| FS Partner(s) | Energy Conservation Center of Ho Chi Minh City |
| Location of Project Activity | Viet Nam |
| Summary of FS Report | Summary (PDF190KB) |
| Description of Project Activity | In the project activity, Energy Conservation Center of Ho Chi Minh City（ECC) will promote the installation of solar water heating (SWH) systems by providing subsidies to the consumers. Electricity demand has rapidly grown with economic development in Viet Nam and stable supply of electricity is positioned as one of the most important issues to be tackled. The ECC aims to install SWH systems in South of Viet Nam and reduce electricity consumption. In this Study, the feasibility of implementing the Project as programmatic CDM is investigated. |
| Targeted GHG | CO2 |
| Category of Project Activity | Renewable Energy |
| CDM/JI | CDM |
| Duration of Project Activity/ Crediting Period | Crediting period of PoA (28 years): 2009-2036 The first CPA (7 years × 1 renewal): 2009-2022 |
| Baseline Scenario (including Methodology to be applied) | The baseline and monitoring methodologies of approved small-scales methodology (AMS) I..C, "Thermal energy for the user with or without electricity" is applicable to the Project. In the absence of the project activity, people would utilize electric water heater to supply heated water. Therefore, the baseline emissions of the Project are the amount of greenhouse gases emitted when the energy displaced by solar energy is supplied from grid electricity. |
| Demonstration of Additionality | SWH system installation project will not take place in the absence of the project activity. This is justified by 1) investment barrier, 2) technological barrier and 3) barrier due to prevailing practice. |
| Estimation of GHG Emission Reductions | The annual average GHG emissions reduction from the first CPA of the Project is 15,716 tCO2. |
| Monitoring Plan (including Methodology to be applied) | In accordance with AMS I..C, the following two items are required to be monitored for projects where emissions reduction per unit of system is less than 5tCO2.
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| Environmental Impact Analysis | Environmental impact assessment is not required for the Project in Viet Nam. The Project will not impose any negative impact on the environment. |
| Issues and Tasks for Project Materialisation | The budget for implementing the Project is limited to installing 22,000 units in 5 years. This budget is not a stable source of funding as it will be distributed upon ECC's application to Ho Chi Minh City People's Committee and Ministry of Industry and Trade every year. It is important to generate CER sales revenue by implementing the Project as CDM and create a new source of subsidy so the Project can be continuously operated. As the emissions reduction depends on accumulative number of installed SWH systems, therefore, it is important to install as many units as possible in the early stage of the crediting period to secure maximum amount of CERs. By implementing the Project as CDM, investment from private businesses is expected to be facilitated. By doing so, it will be possible to install more units in the early stage which will, in turn enable sustainable and continuous operation of the Project through use of CER sales revenue. |
| Co-benefits Effects | It is expected that the Project will contribute to stable supply of electricity and prevention of blackouts by reducing electricity consumption. It is also hoped that through supplying safe and stable heated water, the Project will contribute to improvement of life quality of Vietnamese people. Also, ECC's advertisement campaign to disseminate SWH systems will not only inform the public of their economic benefits, but will also raise awareness of environmental impact of renewable energy use as well as energy and environmental problems. It is believed that these co-benefits of the Project can be evaluated through resident survey. |
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