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Greenhouse Gas Emission Analysis with RETScreen - Speaker's notes
SLIDE 1: Greenhouse Gas Emission Analysis with RETScreen
In this presentation, we examine how RETScreen facilitates the calculation of greenhouse gas emission reductions associated with clean energy technologies.
SLIDE 2: Objectives
This presentation has two objectives: first, to introduce a methodology for calculating reductions in greenhouse gas (GHG) emissions; and second, to introduce the RETScreen GHG Emission Reduction Analysis Model.
SLIDE 3: What needs to be calculated?
Quite simply, RETScreen needs to determine the annual greenhouse gas emission reduction for a clean energy technology compared to a conventional technology base case. Results are presented in terms of the tonnes of carbon dioxide per year that would be equivalent to the emission reduction, regardless of the actual gases that compose the emissions. To do this, methane and nitrous oxide emissions are converted to the equivalent carbon dioxide emissions in terms of their global warming potential.
SLIDE 4: How is this calculated?
The calculation at the heart of the analysis is very simple: the difference in the GHG emissions per unit of energy delivered is multiplied by the end-use annual energy delivered. RETScreen accounts for transmission and distribution losses as well as GHG credit transaction fees.
SLIDE 5: RETScreen GHG Emission Reduction Analysis Model
RETScreen employs a standardized methodology developed by Natural Resources Canada (NRCan) in collaboration with the United Nations Environment Programme (UNEP); the UNEP RISØ Centre on Energy, Climate and Sustainable Development (URC); and the World Bank's Prototype Carbon Fund (PCF). A team of experts from Government and Industry has validated this methodology.
SLIDE 6: Type of Analysis
RETScreen permits 3 types of analyses, which differ in the level of user control over emissions factors and greenhouse gas warming potential factors. The standard analysis uses values recommended by the International Panel on Climate Change (IPCC) and industry standard values; a custom analysis permits the user to specify the various factors as desired. For a user-defined analysis, the user simply enters GHG emissions factors directly, without specifying fuels, conversion factors and efficiencies.
SLIDE 7: Defining Baseline
For electricity generating technologies, RETScreen must compare the clean energy approach to a baseline, or assumption about the emissions associated with the electricity on the grid over the course of the project. The baseline may be based on historical or expected future emissions factors, may change in time or be static. It can reflect international, national, or sub-national areas. The user must be able to defend the choice of baseline and should not overestimate emission reductions.
SLIDE 8: RETScreen Facilitates Kyoto Protocol CDM and JI Projects
RETScreen has been designed to assist in the evaluation of Clean Development Mechanism (CDM) Projects and Joint Implementation (JI) Projects. In CDM projects, industrialized countries or companies that invest in GHG emission reduction projects in developing countries gain credits from these projects. Small-scale CDM projects can use simplified baseline methods. These include electricity projects of 15 MW or less and energy efficiency projects saving 15 GWh or less per year. In JI Projects, industrialized countries or companies gain GHG emission reduction credits by investing in a project in another country having emission reduction targets under the Kyoto Protocol (i.e., Annex I countries.) Such projects are typically in an economy-in-transition country. Both CDM and JI projects need to demonstrate "additionality" - emission reductions beyond those achieved in a baseline scenario.
SLIDE 9: GHG Analysis Worksheet
Here is the RETScreen GHG analysis sheet. Note the section for the base case and the proposed case, followed by the GHG emission reduction summary.
SLIDE 10: GHG Analysis Worksheet
This shows how the user can select from among the 3 types of analyses. This determines the factors appearing in the first section of the sheet, labelled "Background Information".
SLIDE 11: Conclusions
RETScreen calculates the annual GHG emission reduction for a clean energy project compared to a base case system. It is easy to use, but does demand prudence from the user when defining the base case scenario for larger projects. The model takes into account emerging rules under the Kyoto Protocol at the prefeasibility study level. To maintain credibility, the user should not overestimate the GHG emission reductions of the proposed project.
SLIDE 12: Questions?
This concludes the presentation of GHG Emission Reduction Analysis with RETScreen Software. This Introductory course continues in further modules. Please proceed to the presentation "Financial and Risk Analysis with RETScreen Software."
In this presentation, we examine how RETScreen facilitates the calculation of greenhouse gas emission reductions associated with clean energy technologies.
SLIDE 2: Objectives
This presentation has two objectives: first, to introduce a methodology for calculating reductions in greenhouse gas (GHG) emissions; and second, to introduce the RETScreen GHG Emission Reduction Analysis Model.
SLIDE 3: What needs to be calculated?
Quite simply, RETScreen needs to determine the annual greenhouse gas emission reduction for a clean energy technology compared to a conventional technology base case. Results are presented in terms of the tonnes of carbon dioxide per year that would be equivalent to the emission reduction, regardless of the actual gases that compose the emissions. To do this, methane and nitrous oxide emissions are converted to the equivalent carbon dioxide emissions in terms of their global warming potential.
SLIDE 4: How is this calculated?
The calculation at the heart of the analysis is very simple: the difference in the GHG emissions per unit of energy delivered is multiplied by the end-use annual energy delivered. RETScreen accounts for transmission and distribution losses as well as GHG credit transaction fees.
SLIDE 5: RETScreen GHG Emission Reduction Analysis Model
RETScreen employs a standardized methodology developed by Natural Resources Canada (NRCan) in collaboration with the United Nations Environment Programme (UNEP); the UNEP RISØ Centre on Energy, Climate and Sustainable Development (URC); and the World Bank's Prototype Carbon Fund (PCF). A team of experts from Government and Industry has validated this methodology.
SLIDE 6: Type of Analysis
RETScreen permits 3 types of analyses, which differ in the level of user control over emissions factors and greenhouse gas warming potential factors. The standard analysis uses values recommended by the International Panel on Climate Change (IPCC) and industry standard values; a custom analysis permits the user to specify the various factors as desired. For a user-defined analysis, the user simply enters GHG emissions factors directly, without specifying fuels, conversion factors and efficiencies.
SLIDE 7: Defining Baseline
For electricity generating technologies, RETScreen must compare the clean energy approach to a baseline, or assumption about the emissions associated with the electricity on the grid over the course of the project. The baseline may be based on historical or expected future emissions factors, may change in time or be static. It can reflect international, national, or sub-national areas. The user must be able to defend the choice of baseline and should not overestimate emission reductions.
SLIDE 8: RETScreen Facilitates Kyoto Protocol CDM and JI Projects
RETScreen has been designed to assist in the evaluation of Clean Development Mechanism (CDM) Projects and Joint Implementation (JI) Projects. In CDM projects, industrialized countries or companies that invest in GHG emission reduction projects in developing countries gain credits from these projects. Small-scale CDM projects can use simplified baseline methods. These include electricity projects of 15 MW or less and energy efficiency projects saving 15 GWh or less per year. In JI Projects, industrialized countries or companies gain GHG emission reduction credits by investing in a project in another country having emission reduction targets under the Kyoto Protocol (i.e., Annex I countries.) Such projects are typically in an economy-in-transition country. Both CDM and JI projects need to demonstrate "additionality" - emission reductions beyond those achieved in a baseline scenario.
SLIDE 9: GHG Analysis Worksheet
Here is the RETScreen GHG analysis sheet. Note the section for the base case and the proposed case, followed by the GHG emission reduction summary.
SLIDE 10: GHG Analysis Worksheet
This shows how the user can select from among the 3 types of analyses. This determines the factors appearing in the first section of the sheet, labelled "Background Information".
SLIDE 11: Conclusions
RETScreen calculates the annual GHG emission reduction for a clean energy project compared to a base case system. It is easy to use, but does demand prudence from the user when defining the base case scenario for larger projects. The model takes into account emerging rules under the Kyoto Protocol at the prefeasibility study level. To maintain credibility, the user should not overestimate the GHG emission reductions of the proposed project.
SLIDE 12: Questions?
This concludes the presentation of GHG Emission Reduction Analysis with RETScreen Software. This Introductory course continues in further modules. Please proceed to the presentation "Financial and Risk Analysis with RETScreen Software."
