CDM PROGRAM OF ACTIVITIES FOR GREENFIELD HYDROPOWER PROJECTS IN GEORGIA

Energy Efficiency Centre Georgia with Norsk Energi and Gauldal Consult has been awarded for the grant from Norwegian Ministry of Foreign Affairs to conduct a project stimulating small scale hydropower development in Georgia. The project “CDM program of activities for Greenfield hydropower projects in Georgia” was started in the end of October 2009 and will have duration of 3 years.
The activities are as follows:

• Prepare manual covering all aspects of developing small hydro projects in Georgia, including overview of financing options and support mechanisms available.
  The Manual will be prepared in close cooperation with authorities, universities, local experts, EBRD, local banks, UNDP, USAID and other organization promoting hydropower development in Georgia.

• Set up the framework for a CDM program of activities ( PoA) for enabling carbon financing of SHPs, prepare documentation for first SHP project taking part in the PoA ( the pilot project).

• Provide technical assistance to 1 pilot project in planning, obtaining financing, implementation and registration together with the CDM PoA.

The successful implementation of the project depends on close cooperation with authorities, financial institutes and other stakeholders.

After receiving the application on pilot project from the SHP’s developers, Gauldal Consult with EEC has visited the future plants sites and prepared the report, in which they sum up the impressions after site visits in Georgia in May 2010 in order to recommend a pilot plant for the project. The recommendation is based on the local conditions with regard to location of SHPP main components and existing technical documentation of 4 actual pilot projects.

Two Day Donor Coordination Workshop regarding CDM Programme of Activities, aimed at providing long-term support for rural development in Georgia was organized in Tbilisi in the premises of Kfw-Tblisi Office in no. 4 Elene Akhvlediani agmarti on 25th and 26th August.

Funded by the Norwegian Government and supported by the Ministry of Environmental Protection and Natural Resources in Georgia, Norsk Energi in collaboration with Energy Efficiency Center in Georgia and Gauldal Consult is implementing a 3 year programme ”CDM Program of Activities for Greenfield Hydropower Project in Georgia” supporting sustainable development in rural areas in Georgia by building capacity for small scale hydropower and facilitate carbon financing.

A CDM PoA is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programmes), which leads to anthropogenic GHG emission reductions. The potential in CDM PoA lies in setting up coordinating body that can combine large numbers of small and homogeneous low-cost greenhouse gas abatement activities, over a period of up to 28 year. An established and functioning PoA Coordinator could handle several types of CDM PoAs, small hydro, biogas, solar etc. Currently finding the right PoA coordinator is both a hurdle and an opportunity.

Wide stakeholder involvement is necessary to determine the best structure for PoA coordination, and donor coordination is required to find the best way of jointly supporting the establishment functioning of a CDM PoA in Georgia. Further, coordination between governmental stakeholders is needed to prepare the ground for renewable energy market development.

The first day was focusing on CDM PoA as instrument for sustainable development, opportunities and barriers, as well as determining the criteria for a PoA Coordinator. The second day focused on synergies of development of small hydro in terms of economic development.

Royal Norwegian Embassy First Secretary Lars Ragnar Aalerud Hansen

The following speeches and presentations were made during the workshop:

1. Giorgi Zedginidze, Deputy Minister of Environment MOE Georgia, Small Scale Hydropower and Climate Change Mitigation from the Government/Ministry perspective

2. Mariam Valishvili, Deputy Ministry of Energy of Georgia, Promotion of the Small Scale Hydropower Investment Scheme for Georgia

3. Eun Joo Yi, Consultant, Norsk Energi, Introduction of purpose and expected outcome from the workshop by Norsk Energi

4. Michael Andres, Director Sector Coordination South Caucasus Energy/Transport, KfW, Presentation on CDM in Georgia

5. Grigol Lazriev , Acting Head ,Hydrometeorology and Climate Change Administration, DNA-UNFCCC Georgia, Current Kyoto Protocol and negotiations , positive message for CDM PoA

6. Juan Carlos Mejia Pinto, Advisor Integrated Expert CIM, CDM-PoA as a “Co-Finance Instrument” for Small Hydropower Projects - Chances and Barriers for Georgia

7. Manana Dadiani, Renewable energy expert, EEC on SS-HP Potential and existing Incentives and Programs

8. Paata Janelidze , UNDP Chances and Opportunities of CDM-PoA on Small Hydro Programs

9. South Pole CDM PoA coordinator concept introduction Case Study on CDM PoA design and Model of participants

10. Mariam Bakhtadze, Environmental Specialist USAID Contractor.

Workshop agenda (PDF, 110 KB)

List of participants (PDF, 93 KB)

Presentations:

South Pole’s PoA experience - South Pole Carbon Asset Management Ltd;

Activities in Renewable Energy and CDM / PoA  - Michael Andres, KfW;

CDM-PoA as a “Co-Finance Instrument” for Small Hydropower Projects - Chances and Barriers for Georgia - Dipl.-Ing. Juan Carlos Mejia Pinto, GTZ/CIM/MOE Expert;

Hydropower Investment Promotion Project (HIPP) - Mariam Bakhtadze, USAID;

Current Kyoto Protocol and negotiations, positive message for CDM PoA - Grigol Lazrievi, Minsitry of Environment Protection and Natural Resources of Georgia;

EEC on SS-HP Potential and existing Incentives and Programs - Manana Dadiani, EEC Georgia, Renewable Energy Expert;

CDM Program of Activities for Hydropower Projects in Georgia - Ann Iren Glimsdal, Eun Joo Yi, Norsk Energy.