Feasibility Study on Wind Power Generation CDM Project in the Galapagos Islands, Ecuador

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Feasibility Study on Wind Power Generation CDM Project in the Galapagos Islands, Ecuador
FYFY 2010
Main Implementing EntityMitsubishi UFJ Morgan Stanley Securities Co., Ltd.
FS Partner(s)Energías Renovables para Galápagos (ERGAL), Det Norske Veritas Certification AS (DNV)
Location of Project ActivityEcuador (Galapagos Islands)
Category of Project ActivityRenewable Energy (Wind Power)
Targeted GHGCO2
Duration of Project Activity/ Crediting Period2010-2030 (first crediting period: 2011-2018)
Summary of FS ReportSummary(PDF 184KB)
Description of Project ActivityThe Project reduces CO2 emissions by establishing a small scale wind power plant of 7.5MW capacity in stages and supplying the electricity to neighboring Santa Cruz Island through a mini-grid to displace diesel based electricity. This is part of the "Zero Fossil Fuel for the Galapagos Islands" initiative of the Ecuadorian government that aims at reducing dependency on oil. The Project's biggest objectives are the mitigation of environmental impact brought about by the oil spillage incident from a stranded tanker, which became a factor in initiation of the Zero Fossil Fuel Programme, as well as protecting the ecosystem of the Islands by gradually phasing out the use of diesel oil currently transported by tankers for the purpose of electricity generation.
Methodology to be appliedAMS-I.F. "Renewable electricity generation for captive use and mini-grid (Version 1)"
Baseline ScenarioIn accordance with AMS-I.F., it is possible to form a single baseline combining the Island of Santa Cruz (to which the renewable electricity produced by the Project will be supplied by way of a mini-grid) and Island of Baltra (where there are 19 facilities each with their own captive power plants). However, due to lack of data for calculating baseline emissions from electricity consumption in the Island of Baltra as the methodology prescribes, only the emissions from the mini-grid in the Island of Santa Cruz will be considered in the Project baseline. Electricity supplied to the Island of Baltra will be monitored and excluded from the baseline emission calculation.
Demonstration of AdditionalityDue to the fact that the Galapagos are remote islands and UNESCO world heritage sites, it is necessary to consider the protection of the vulnerable ecosystem when installing turbines and transmission lines. As such, there have been many unforeseen technical issues including the necessity to change project location and design. Additionally, it has proven difficult to keep initial investment cost at minimum as technology providers have not been so eager to bid for small-scale wind turbines due to limitations in design size, distance from the mainland, issues with delivery and construction, and global demand for wind turbines heating up. These circumstances have led to difficulty in securing funding for the Project, forming barriers to project implementation. With additional support from CER related income, these barriers may be overcome.
Estimation of GHG Emission Reductions8,935tCO2/year
Monitoring PlanThe only monitoring item required in AMS-I.F. is the net amount of electricity supplied to the grid. However, since electricity supplied to the Island of Baltra will be subtracted from the baseline emission calculation, the amount of electricity transmitted to the Island of Baltra will also be monitored in the project activity. Similarly, the amount of electricity generated from renewable sources outside of the project activity and supplied to the substation constructed under the Project is also added as a monitoring item. For all indices, an electricity meter will be utilized for continuous monitoring.
Environmental Impact AnalysisAn environmental impact assessment has been carried out focusing on the impacts on flora and fauna of the Galapagos. Following approvals from the authorities, the environmental license was granted in July 2009. Since then, the request of minor modification in an environmental monitoring plan (EMP) due to the change in the project location has also been approved. EMP includes measures to minimize environmental impacts, such as setting up fences to protect iguanas and designing wind turbines to protect birds.
Project FeasibilityThe project is at the stage where the equipment provider has been selected, environmental clearance has been granted and construction can start any minute. The operation start date of the wind power plant is expected in October 2011.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)Amount of air pollutants emitted into the atmosphere has been calculated using real data on concentration, flow rate and operation hours with SOx, NOx, PMs, and CO2 selected as evaluation indices. "Air quality improvement" through reducing exhaust gas emitted from the tailpipe of power plants was also selected as an evaluation parameter for co-benefits. For the level of evaluation, Tier 3 has been selected, and actual data on exhaust gas measured from the tailpipe in January 2010 have been used. It has been demonstrated through analysis that emissions of SOx, NOx and PMs will be significantly reduced due to the implementation of the Project.
Contribution to Sustainable Development in Host CountryImplementation of the wind power generation project contributes to sustainable development through the mitigation of ecosystem destruction risk by eliminating fuel delivery by ship, greenhouse gas emission reduction in fuel transport by land, and improvement of soil and water quality.