Presented by

U Htun Naing Aung

Chairman/CEO
KKS Engineering Co.,Ltd
:, a.:.o_.g:._a_.:.
Agenda
CDM . ~::~ . . CDM ~ . ., ..:.
CDM . . . . . ~~ ._.~ . ., ..:. .~ .. .
CDM Hydro Power Project ~ . .. .~:. ?
CDM - ~q. .~_.. Global Warming
Seasonal surface Seasonal surface
melt ext ent on t he melt ext ent on t he
Greenland I ce Sheet Greenland I ce Sheet
has been observed has been observed
by satellite since by satellite since
1979 and shows an 1979 and shows an
increasing trend. increasing trend.
The melt zone has The melt zone has
been expanding been expanding
inland and to record inland and to record
high elevations in high elevations in
recent years. recent years.
Source: Impacts of Arctic Warming, Cambridge Press, 2004
The Evidence of Global Warming The Evidence of Global Warming
EVIDENCE
y There is no longer any doubt that the ecosphere is warming
up due to human activity
Problem One
Gl obal War mi ng Gl obal War mi ng
yGlobal
Warming
yClimate
Change
yClimate
Change
yLives
Changing Wind Map
due to the Climate
Change
There are a lot of proven records
that
the air flow direction and pattern
are changed in many different
places due to the global warming
and climate change.
For nearest example of Nargis in
Myanmar in 2008
!!!!!
Cyclone (Nagis,2008)
Whom we have to blame?
Is Global Warming
Nature
or
Man Made?
Global warming is the greatest
threat facing the world today far
greater than the threat from terror
Source: Sir David King, chief advisor to the
British government, Dagbladet Information,
Denmark, 10. Jan. 2004
Responses from Experts: Global Warming PreventionProject
Obstruction of Global warming reduction
Project by preventing Conference Delegate
to attend the Renewable Energy Conference
is the same threat facing us like the threat
from terror
Source: Mr. Htun Naing Aung, Chairman/CEO Kaung Kyaw
Say Engineering Co.,Ltd AEBF2008 Thailand Aug.6, 2008
CDM Gr eenhouse Gases
GHG
Global
Warming
Potential
Market
Value (at
$10 per
TCO2e)
Sources
Carbon
Dioxide
1 10
Fossil fuel combustion, deforestation,
agriculture
Methane 23 230
Agriculture, land use change, biomass
burning, landfills
Nitrous Oxide 296 2,960
Fossil fuel combustion, industrial,
agriculture
HCFC 1300 13,000
Industrial, manufacturing
PFC 6500 65,000
Industrial, manufacturing
SF6 23900 239,000
Electricity transmission, manufacturing
Green House Effect
Kyoto Protocol
Global Warming
High Oil Prices
Depleting Fossil Fuel
Biofuel
Biofuel
Renewable Energy
Biofuel
Renewable Energy
Biofuel
Biofuel
Renewable Energy
Biofuel
Renewable Energy
Renewable Energy
Biofuel
Renewable Energy
Green House Effect
Kyoto Protocol
Global Warming
High Oil Prices
Depleting Fossil Fuel
The Benefits of Electricity The Benefits of Electricity
The Energy The Energy
Security & Security &
the Benefits the Benefits
of of
Electricity Electricity
ELECTRICITY
Light Bulb
Radio / TV Refrigerator
AC / Fan Stove / Oven
Pump
Reading Light
Space
Light
Video / Sound
Food
Preservation
Space
Cooling
Heat for
Cooking
Water Pumping
EDUCATION
ENTERTAINMENT /
COMMUNICATION
HEALTH
COMFORT /
CONVENIENCE
PRODUCTIVITY
APPLIANCES
INTERMEDIATE OUTPUTS
FINAL OUTPUTS
The Benefits of Electricity The Benefits of Electricity
17/09/54 19
Why Nuclear? Why Nuclear?
y Contributes significantly to world
electricity generation
y Reduces dependency on high priced
oil and gas
y Reduces greenhouse gas emission
y Provides more overall benefits than
other energy sources
y Low production cost, US$0.02/KW
produced by nuclear power
compare to US$0.12 with fossil fuel
` Nuclear power is the best option
for recent situation
17/09/54 20
Why Not Nuclear? Why Not Nuclear?
High Investment Cost US$ 2million/MW
Accompany by
Major issues against nuclear power include
Safety
Radioactive Waste
and
Weapon Development
Tsunami, Fukushima Tsunami, Fukushima
In terms of Usage and Investment
No. Source of Energy Usage Investment Remarks
1 Solar Energy Only day time useable High Battery needed
2 Wind Energy Depends on wind
Speed and direction
High/
Moderate
Battery needed
3 Tidal Power Depends on wave,
flow and tide
High High cost in
transmission line.
4 Water Turbine
Hydro Power
Depends on
water head
Highest Need a good Dam
5 Biogas Difficult to collect Moderate Suitable to the bio
waste farm.
6 Bio fuel Depends on crops
need processing
High/
Moderate
Still research
stage(ethanol mix)
7 Biomass
(Gasification)
Any time,
Any where,
Any Capacity
Cheapest Environmental
Friendly.
The Comparison Among Energy Security & Risks
In terms of Risks and Investment
No. Source of Energy Risks Investment Remarks
1 Hydro Power Disaster causes by
flood.
High Need further study
on environmental
impact assessment
and a good Dam
2 Bio fuel The Weather
/Depends on crops
/Need processing
High/
Moderate
Still research
stage(ethanol mix)
3 Biomass
(Gasification)
CO & CO2 emission
for improper handling
Cheapest Environmental
Friendly.
4 Gas Turbine Depleting of Gas High Still have own
natural gas.
5 Nuclear Power High risk to the
workers and all
neighbors.
High Need a lot of time
and professioncy
Kyoto Protocol Art. 6, 12 and 17
3 Mechanisms
CDM
JI ET
Convention
(Art. 3.3, 4.2 (cooperate, jointly))
Art12KP (CDM)| Origins
The Cl ean Devel opment Mechani sm ( CDM)
Developed
Countries
Developing
Countries
Carbon Credits
exchange
Objectives:

Emission-reduction
compliance

Higher economic
growth
Objectives:

Climate-
friendly
technology

Sustainable
development
CO2
Developing countries (Non-AI)
To assist in achieving
sustainable development
Industrialized countries (AI)
To assist in meeting their
emission limitation commitments
What is the CDM| Incentives
CDM project
agreement
Project participants
(private business,
governments, NGOs)
26
Certified Emissions Reductions
a) Represents GHG mitigation contribution of a project.
b) Measured in tones of CO
2
.
CERs from a CDM project are calculated as:
CERs = Baseline Emissions Project Emissions
The baseline is the amount of GHG that would be emitted in
the absence of the CDM project.
c) CERs can be sold in exchange for hard currency.
d) Reduction before 2008 (1
st
year of Kyoto Protocol
commitment period) can be included.
CDM q.e.:ae.:.
N0 Type Description
1 Renewable energy Hydro, Wind, Solar, Biomass
2 Fuel Switching Fossil Fuel to Green Fuel
3 Energy Efficiency In Boiler, Pump, Turbines, Efficient Cooling
4 Cogeneration Both in Steam & Power Requirement
5 Power Sector Efficient (thermal) reduction in technical T&D Losses
6 In Waste Management Capturing methane emission to generate power, waste
to energy
7 In Transport Fuel switch from gasoline & diesel to natural gas, air
to train, road to train
8 In Forestry Afforestation and Reforestation Project
Potential CDMs in Myanmar
y Afforestration
y Agriculture
y Hydro
y Methane avoidance
y Biomass
y Coal bed/mine methane etc
CDM Project Development
Potential CDM Sources
y Energy, Forestry, Industries, Agriculture & Waste
y Emission Avoidance
y GHG Removal or Reduction
743 CDM project activities registered,
63.5 million CERs Issued
expected: 996.5 million CERs until 2012
More than 1,000 activities in the CDM pipeline (incl. above),
- more than 1,200 million CERs expected by end of 2012
(assumption: no extension of crediting period)
Score Board | CDM in the world
Status: July 2007
Global CDM Project Registration
CER Issued
No Country
Registered
Project
Numbers
Estimated Annual
Emission Reduction
(t/Co2 e)
1 Myanmar 0 0
2 Lao 1 3,338
3 Cambodia 4 124,356
4 Bangladesh 2 169,259
5 Thailand 49 2,749,692
6 Vietnam 59 3,167,610
7 Indonesia 67 6,600,000
Registered Project Numbers by Countries
GHG
t
What would have happened
situation (scenario)
CDM project activity
CERs
How CER calculate
How Car bon Cr edi t s ar e For med
Time
BaU
CDM
CO
2
Emissions
Time
BaU
CDM
CO
2
Emissions
How Carbon Credits are Formed
Benefits to Myanmar and
Project Owners
y By selling CER/VER, project owners can be compensated
financially by developed countries for their contribution to
emission reduction
y Brings funds and foreign investment to Myanmar through
developing energy saving and emission reduction projects
y Support from international NGOs, governments and other
organizations for capacity building in CDM development
y Technology transfer and support from developed countries
CDM Pr oj ect Ti mel i ne
2009 2008 << 2007 2010 2011
2012
2nd CP?
2013 >>
CDM
Project
Devt.
Production & Delivery of CERs
1st Kyoto Commitment Period (CP)
Offset Sale
Beyond Kyoto
Or Ex-Kyoto
markets
Agenda
How Can Carbon Credits
Enhance Project Viability?
Applications of Carbon Revenues to
Traditional Energy Projects
Enhancing revenues or yields
Securing interest or principal payments
Shortening the loan term
Source of equity requirement
Using Carbon Revenues as a Source of
Equity Requirement
Upfront Payment for
Forward Sale of
CERs
CERs as Equity for Loan
Loan Approval
subject to
Equity Requirement
Project
Proponent
CER
Buyer
Investor
Using Carbon Revenues as a Source of
Loan Prepayments
Loan
Prepayment
Sinking
Fund
Loan Interest and Principal
Payments
CER Revenues
Project
Proponent
CER
Buyer
Investor
CERs
42
Wind Power Project Wind Power Project
Plant Configuration- 15 x 1.65 MW
Plant Capacity - 24.75 MW
Annual Generation - 74,482 MWh
43
Phase I Phase I
y CO2 - 48,780 tons/year
y SO2 - 802 tons/year
which would have otherwise been emitted from a typical
fossil-fueled generating plant
Environmental Benefits: Environmental Benefits:
CO2 Cost/ton Cost/ton Cost/year Cost/year
((25 25MW) MW) 48,780 x 10US$ =487,800 US$
Micro-hydro power generating plant can be installed at
10 villages
Financial Benefits: Financial Benefits:
CDM Project in Myanmar - A Case Study
Dapein(1) Hydropower Project in Union of Myanmar
Project Title Dapein(1) Hydropower Project
Grid Supplied South China Power Grid
Project Owner Dapein(1) Hydropower Co., Ltd
Location Bhamo county, Kachin state, Union of Myanmar
Installed Capacity 240MW (60MW4)
Annual electricity generation 950,289.6MWh
Construction starting date 26/06/2008
Project commission date
Annual emission reductions 677,937CO2e
Price of CERs (expected) 7 EUR/tCO2e or 10US$/tCO2e
Annual Income from
CDM(expected)
4,745,559 Euros 0r US$ 7.779,370
Potential Revenue from CERs
No Name Location
Capacity
(MW)
Annual
Electricity
GWh
Expected FB
(US$)
Based on 10$/tonCO2
1 Mone Sidoktaya Magwe
Division
75 330
2 Paunglaung N-E of Pyinmana 280 911
3 Yenwe Pago Division 25 123
4 Ye New Pago Division 25 123
5 Kha Paung Pago Division 30 120
6 Ka Paung Oaktwin, Pago Division 30 120
7 Kengtawng Moenw, Shan (S) State 54 377.6
8 Shweli 1 Shan (N) State 600 4,022
9 Ye Ywa Mandalay 790 3,550
10 Shwe Kyin Pago Divison 75 330
11 Kun
Chaung
Pago Division 60 402
TOTAL 2,044 10,408.6 74,214,000
Agenda
How Does KKS Work With You?
47
Project development
Project implementation
Certified Emissions Reductions (CERs)
issuance (Carbon Trading)
CDM Process
Project
Design
Document
Validation
Registra
tion
Monitori
ng
Verificat
ion
Certifica
tion
CER
issuance
and
registrat
ion
Host
Country
Confirmation
Designated
Operational
Entity
Conducted
by project
participants
Provides
basis for
verification
Assurance
by a DOE
Certifies
the
amount of
verified
reduction
Issuance of
Certified
Emission
Reductions
(CERs)
To be
recorded at
EB registry
Conducted by
a DOE
(Different DOE
except for
small projects.)
Determines that
the monitored
emission
reduction has
in fact occurred
Project Development Project Implementation
Meth Panel Submission Executive Board
Recommends for:
-approval/consolidate
-re-consideration
-non-approval
Agrees to:
-Approve/consolidate (A)
-Re-consideration (B)
-Non-approval (C)
Made by PPs
(through DOEs)
Methodologies| Process the basics
Public input / desk
review of
submission and
public input
Types of CDM projects Number
Percentage
(%)
kCERs
2012
kCERs
Hydro 970 30.21 95182 299275
Wind 667 20.77 67198 214958
Methane avoidance 380 11.83 14270 69692
Biomass energy 368 11.46 23372 111626
Landfill gas 199 6.20 32941 163502
EE own generation 173 5.39 29177 125173
N2O 65 2.02 48265 247404
Fossil fuel switch 63 1.96 32169 125572
EE industry 62 1.93 1806 9828
Coal bed/mine methane 47 1.46 21788 79984
Solar 37 1.15 969 1860
Types of CDM projects Number
Percentage
(%)
kCERs 2012 kCERs
EE supply side 25 0.78 7480 11772
EE households 24 0.75 1104 2605
HFCs 22 0.69 81712 476479
Reforestation 22 0.69 959 10174
Fugitive 20 0.62 12902 52653
Cement 19 0.59 3214 21502
PFCs and SF6 13 0.40 4774 11279
Geothermal 12 0.37 3182 12886
Transport 6 0.19 563 2493
Afforestation 5 0.16 122 585
EE service 5 0.16 59 330
Energy distribution 4 0.12 2268 3182
CO2 usage 2 0.06 24 139
Tidal 1 0.03 315 1104
Agriculture 0.00
Total 3211 100.00 485814 2056055
CDMs in Myanmar
Pot ent i al CDM pr oj ect s
i ncl udes:
y Afforest rat ion
y Biomass power generat ion
y Small- scale hydropower < 20MW
y Biogas plant
y Wast e t o Energy
y Energy efficiency
Your
Choice
OR
Agenda
CDM Hydro Power Project ~ . .. .~:. ?
CDMs in Myanmar
CDM Hydro Power Project ~ . .. .~:. ?
Energy Development Poverty Alleviation
CDM Hydro Power Project ~ . .. .~:. ?
Green Energy CDM CER Finance
Green Energy Improve Climate Change
Improve Climate Change Save Lives
Correct Vision
Global warming is the greatest threat
facing the world today far greater than
the threat from terror
Source: Sir David King, chief advisor to the British government,
Dagbladet Information, Denmark, 10. Jan. 2004
Responses from Experts: Global Warming PreventionProject
Obstruction CDM Project for reduction
of Global warming or even preventing
Conference Delegate to attend the
Renewable Energy Conference is the
same threat facing us like the threat
from terror
Source: Mr. Htun Naing Aung, Chairman/CEO Kaung Kyaw Say Group
of Companies, NaypyidawSep.17, 2011
CDM _ae
:_~......~
.:s_a|
CDM _ae
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a _a..q.ae.:._ae
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KKS CDM Team
U HTUN NAI NG AUNG
Offi ce: + 95- 1- 571284
Mobi l e: + 95 ( 095183517)
mgy @my anmar .com. mm
No.31 Pinlone Yeikmon 5
t h
St r eet , Pinlone Yeikmon, Thingungyun Tsp,
Yangon, MYANMAR 11071
Thank you for your kind attention