M-DEV0325: Deviation request to allow the use of the “Tool for the demonstration and assessment of additionality” to assess the additionality of a project activity, under methodology ACM0006

ACM0006 ver. 7: Consolidated methodology for electricity generation from biomass residues

The reason for request for the deviation is as listed below:
According to the methodology ACM0006, version 7 and also versions 9 and 10, project participants shall identify the most plausible baseline scenario and demonstrate additionality using the latest approved version of the “Combined tool to identify the baseline scenario and demonstrate additionality”. For the present project activity, the project participants are not using the “Combined tool”, but the “Tool for the demonstration and assessment of additionality”
Explanation for the use of the “Tool for the demonstration and assessment of additionality”.

The alternatives to the project activity are:
• A new plant operating with low energy efficiency and not exporting electricity to the grid;
• The project activity implemented without being registered as a CDM project; and
• The country providing the same amount of energy using the current generation system, which is electricity supplied by large hydro and thermal power stations.

The use of the “Tool for the demonstration and assessment of additionality” is justified under the consideration that methodologies using the combined tool are only applicable if all potential alternative scenarios to the proposed project activity are available options to project participants. For grid-connected power projects one of the alternatives would be the electricity production by other facilities. This alternative is not under the control of project participants. In those cases, according to the “Combined tool to identify the baseline scenario and demonstrate additionality” footnote 1, participants could continue to use the “Tool for the demonstration and assessment of additionality”.

A request for clarification AM_CLA_0120 was submitted to the Meth Panel and based on the clarifications received, project proponents request a deviation with the purpose of:
(i) Allowing that the baseline for incremental electricity, as defined in ACM0006, produced as a consequence of the project activity and exported to the grid is defined by default as being the grid; and
(ii)Allowing the use of the additionality tool to assess the additionality of the project activity.

As recommended by the Meth Panel, project proponents will select in step 1 the baseline scenario for biomass residues and heat supply using the combined tool, as currently described in ACM0006.

According to the Meth Panel´s answer in AM_CLA_0120, project proponents may wish to wait until the revision of the methodology is ready or may submit a Request for Deviation. The procedure described above, namely the submission of a Request for Deviation, follows the guideline of the Meth Panel. No amendment to the approved methodology used by the proposed project activity is necessary.

The estimates of the emissions reductions for the proposed project activity are not altered as a consequence of this request for deviation.