Feasible Study on Renovation of Exiting Hotel to Eco-hotel

Transcription

Feasible Study on Renovation of Exiting Hotel to Eco-hotel
Feasibility Studies with the Aim of Developing a Bilateral Offset Credit
Mechanism
FY2011
Studies for Project Exploration and Planning
Feasible Study on Renovation of Exiting Hotel to
Eco-hotel in Off-grid Area of Kenya
New Energy and Industrial Technology Development Organization (NEDO)
NTT Data Institute of Management Consulting, Inc.
Fuji Electric Co., Ltd.
Mpata International Inc.
Feasibility Studies with the Aim of Developing a Bilateral Offset
Credit Mechanism FY2011
Feasible Study on Renovation of Exiting
Hotel to Eco-hotel in Off-grid Area of
Kenya
Studies for Project Exploration and Planning
29th February, 2012
NTT Data Institute of Management Consulting, Inc.
Fuji Electric Co., Ltd.
Mpata International Inc.
CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving Technology and
Renewable Energy into MPATA SAFARI CLUB
3.Survey of Current Green Electrification at Other Hotels
4.MRV Methodology When Renewable Energy Is Introduced to
Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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1-1. Perspective (1)
¾ This feasibility study (F/S) tries to produce ecofriendly electricity for hotels in off-grid area of
Kenya.
¾ Case study = Mpata Safari Club
Mpata Safari Club
Located in The Masai Mara National Reserve
-Five-star luxurious hotel
-It stands in off-grid area and uses diesel
generators to make electricity.
NAIROBI
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1-2. Perspective (2)
¾This F/S is financed by NEDO of Japan.
(New Energy and Industrial Technology Development Organization)
an incorporated administrative agency
¾And NEDO is under the jurisdiction of METI.
(Ministry of Economy, Trade and Industry of Japan)
“But, why Japan is doing this?”
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1-3. Problems of CDM (from Japanese Side)
¾ NEDO, METI, and Japanese industrial circles, finds current
CDM* unpractical and rather problematic.
(*Clean Development Mechanism under the Kyoto Protocol)
– A project needs a long time: 2 years
– Applicable technologies unbalanced
– International partiality: 59% China (in Jan 2012*)
¾ Japan don’t deny the CDM.
But try to invent alternative mechanisms to mitigate the climate
change by introducing technologies of Japan.
COP17 in Durban: Japan will not participate in the second promise (2013-) of Kyoto
Protocol.
Copyright © 2012 NTT DATA Institute of Management Consulting, Inc.
* http://cdm.unfccc.int/Statistics/Issuance/CERsIssuedByHostPartyPieChart.html
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1-4. Call for an Alternative to CDM
¾ One of the alternatives is
Bilateral Offset Credit Mechanism (BOCM).
New International
Framework
Bilateral Treaty between Governments
Project Entity
KENYA
JAPAN
Offset Credit
(can be sold)
CO2
reduction
Project Entity
Buyer Companies
Offset Credit
(can be sold)
Project
Copyright © 2012 NTT DATA Institute of Management Consulting, Inc.
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1-5. Four Progressive Steps of Our Project
Final goal for
NEDO and METI
(Japan)
④ Application to Other Hotels /
Sale & Purchase of Offset Credit
③
Bilateral Credit Mechanism
between Kenya and Japan
② Implementation
for Mpata Safari Club:
“Mpata Model”
①
F/S of This Time
Case Study: Mpata Safari Club
Copyright © 2012 NTT DATA Institute of Management Consulting, Inc.
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1-6. Flow of the 1st and 2nd step:
Making a “Mpata model” in Kenya
Project members
Mpata Safari Club
(Kenya, Masai Mara)
NTT Data Institute of
Management Consulting
-Five-star luxury hotel
-It stands in off-grid area and uses diesel
generators to make electricity.
-Organize, Research and so on.
■Devices/Equipments to be introduced
FUJI ELECTRIC CO., LTD.
-Solution and engineering for
Renewable energy.
Arrange products and technologies
of Japanese companies.
Mpata International Inc.
-Owner of the hotel.
-Obtain data and information.
-Arrange researches in Kenya.
F/S
¾Renewable energy
•Solar power
(Photovoltaic power generation, Solar water
heating )
•Mini-hydro power generator
•Wind power generator
¾Energy storage
•Batteries (Lead-acid battery, Lithium-ion battery)
¾Energy management and Saving energy
•Heat pump unit, Lighting devices etc.
Advisers
-Specialist on Climate Change,
MRV for GHG emission reduction
and so on.
-Japanese companies.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
Government of Kenya
-Offer advice, data, information and so on.
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1-7. Develop “Mpata model” in off-grid area
¾“Mpata Model” ⇒ Other hotels in the Masai Mara National Reserve.
¾Then to other national parks (There are 2,500 hotels in off-grid area in Kenya).
¾We need to establish a suitable methodology of MRV and how to bundle small
credits from various types of hotels.
Organizer in Kenya
(to bundle small credits and sell)
CO2
Credits
Masai Mara N.R.
(200 hotels / lodges)
Mpata Safari Club
National park A
CO2
Credits
National park B
CO2
Credits
CO2
Credits
CO2
Credits
CO2
Credits
CO2
Credits
CO2
Credits
・・・
CO2
Credits
CO2
Credits
CO2
Credits
Copyright © 2012 NTT DATA Institute of Management Consulting, Inc.
2500 off-grid hotels
(5000 licensed hotels in Kenya)
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1-8. Project Entities
¾Three companies take part in this project at this stage.
The owner of Mpata Safari Club
To Arrange Interview and Field Survey
Technical Support
Strong in renewable energies, energy saving,
and energy management system
Project Organizer
Methodology of MRV
To Research Market Trends in Kenya
Copyright © 2012 NTT DATA Institute of Management Consulting, Inc.
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CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving
Technology and Renewable Energy into MPATA
SAFARI CLUB
3.Survey of Current Green Electrification at Other Hotels
4.MRV Methodology When Renewable Energy Is Introduced to
Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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2-1. Conclusions
¾The appropriate plan is to replace portion of the present
electricity supply with a PV generation system at Club.
¾This survey found no items to improve for energy saving in
Club. However, there could be still room for improvement in
equipment operation.
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2-2. Ideal plan: 200 kW-size PV generation
¾After calculating the power consumption in the Club, we found that a 200 kWsize PV generation system was an ideal plan.
¾This plan can supply almost all of the electric power needed for the Club
during off seasons. It can supply 80% of the total power consumption.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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2-3. Ideal plan: CO2 reduction and the cost
¾The 200 kW PV generation system could reduce;
63,700 litter of Diesel consumption
and
170 ton/year of CO2 emission
¾But, an an initial investment required to install 200 kW plan would be
Over 200 million KSh
KSh 1 = ¥1 = $1.25
¾Practical plan would be introducing a PV generation system of 5kW to 10
kW .
¾5kW to 10 kW model could be applicable to other hotels/lodges in offgrid are of Kenya (also see next chapter).
¾After depreciation, the system can be expanded and optimized when
necessary to achieve ideal amount of PV generation system.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving Technology and
Renewable Energy into MPATA SAFARI CLUB
3.Survey of Current Green Electrification at Other
Hotels
4.MRV Methodology When Renewable Energy Is Introduced to
Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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3-1. Conclusions
¾In Kenya, some tented-camps have already
introduced PV generation systems (3.5 to 10 kW)
that recoup the initial investment within three to five
years.
¾The model plan would be the 5kW to 10 kW PV
generation systems.
¾The obstacle to introducing these models lies in
finance. Offering financial support for low interest
rates is essential to the introduction of models.
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3-2. Cases of introducing renewable energy
¾The size of the hotels in the lists is are largest in number in the National
Reserves and National Parks of Kenya
¾PV generating systems are around 10kW and the pay back period are
around 3 to 5 years.
PV generation system
Facility name
Room type
KAREN BLIXEN
CAMP
Tent lodge
(22 guest rooms)
SANCTUARY
OLONANA
Tent lodge
(14 guest rooms)
ELEPHANT
PEPPER CAMP
Tent lodge
(9 guest rooms)
Campi ya Kanzi
Tent lodge
(8 guest rooms)
Olarro
Lodge
(8 guest rooms)
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
Output
9 kW
Initial
installation
cost (KES)
10MM
Payback
period
3 years
8kW
3.5 kW
2.4MM
10MM
2 hours/day
Other
Installed 5 years
ago
9 hours/day
5 years
(planned)
13.6kW
(Substitute 12kVA Diesel generator)
10kW
Hours of power
generation by
diesel generat
2.5 years
(planned)
6 to 8
hours/month
(equivalent to 15
minutes/day)
Small power
consumption
no use of
generator
Information from
website
Information from
a constructor
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3-3. Barriers of installing PV systems; Finance
¾In general, these hotels have accepted foreign investment and/or finance
when installing their PV generation systems.
¾ According to one contracting company in Nairobi, the interest on a loan is
about 20% in Kenya, indicating that raising funds is very difficult in the
country.
¾It is essential not only promoting
Japanese PV generating system, but
also offering financial support.
¾Practically, the loan at low interest
rates would meet local needs.
PV Panels in KAREN BLIXEN CAMP, 9kW
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3-4. CO2 Recuction of Model plan
¾From the survey, we come to the
conclusion that the model plan would be
the 5kW to 10 kW PV generation
systems.
¾The amount of CO2 reduction are;
– 4.25 tons/year (5kW)
to 8.5 tons/year (10 kW)
¾If these models were introduced into 2,500
hotels in off-grid areas in Kenya,
CO2 reduction would reach;
– 10,625 tons/year to 21,250 tons/year.
PV Panels in ELEPHANT PEPPER CAMP,
3.5kW
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving Technology and
Renewable Energy into MPATA SAFARI CLUB
3.Survey of Current Green Electrification at Other Hotels
4.MRV Methodology When Renewable Energy Is
Introduced to Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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4-1. Conclusions
¾A methodology for BOCM can be referred to for
small-scale CDM and/or PoA and methodologies
being deliberated at the UNFCCC.
¾Concerning monitoring methodologies, since
hotels in off-grid areas have no electricity meters,
their exact power consumption "before
introduction" cannot be measured.
¾The appropriate methodology is measuring the
"after introduction“ or exact power supplied by
renewable energy.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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4-2. Baseline
¾When setting a baseline per hotel, Paragraph 8 (b) Option 2 is applied, among
the baseline calculation formulas for renewable energy conversion in 1-A of
CDM small-scale methodologies.
E BL,Ren,y = Σi EGi,y/(1-l)
Where:
E BL,Ren,y : Annual energy baseline of renewable energy consumption (kWh)
Σi
: The sum over the group of i renewable energy technologies
: The estimated annual output of the renewable energy technologies of the group of i
EGi,y
renewable energy technologies installed (kWh)
l
: Average technical distribution losses (20%)
¾Based on the above formula, the baseline emissions per Club are calculated.
Paragraph 9 of the baseline CO2 emissions calculation formula in 1-A of the
methodologies is applied.
BECO2,y = EBL,Ren,y × EF CO2
Where:
BECO2,y
EF
: CO2 emissions (kg-co2) in the baseline in year y
: CO2 emissions factor of diesel fuel (0.8 kg CO2-e/kWh)
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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4-3. Additionality
¾NM073 under deliberation proposes new additionality tests for rural
electrification projects. According to the proposal, since Kenya is classified as
a Low Income Country (LIC) and its rural electrification rate is below 12%, the
country has additionality.
¾In addition, in case of introducing a 10 kW system into other Hotels within the
range of 500 hotels, 10 kW systems will amount to less than 5 MW. Then, the
project is eligible for the exemption of additionality tests of micro scale CDM.
¾If a project of this size were first installed, it would be able to win international
understanding without demonstrating additionality in detail.
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4-3. Monitoring
¾Monitoring methodologies will be examined in terms of measurement,
reporting, verification, and methodology validation measurement.
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CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving Technology and
Renewable Energy into MPATA SAFARI CLUB
3.Survey of Current Green Electrification at Other Hotels
4.MRV Methodology When Renewable Energy Is Introduced to
Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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5-1. Conclusions
¾Kenya has been promoting NAMA to make up
CDM.
¾Thus, BOCM should be built up along the
Kenyan NAMA policy.
¾Although Kenya is not an LDC, its rural
electrification rate is similar to that of an LDC.
¾Present CDM is unable to grasp the needs of
such countries.
¾Partners of BOCM should be countries which are
non-LDC but LIC or LMIC.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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5-2. Recognition of the present CDM
¾The 3 problems of CDM are recognized not only by Kenya but also by the
international community.
1. it takes too long to obtain approval
2. paper work is complicated, including data collection;
3. application is expensive.
¾One of the problems specific to Kenya is;
–
targets of EU-ETS offset are, in principle, limited to LDC from 2013.
Since Kenya is not an LDC, the momentum to generate CDM projects in
Kenya is expected to decline.
¾In addition, infrastructure problems are common to African countries.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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5-3. NAMA; the climate change policy of Kenya
¾Kenya is determined to promote
NAMA as a mitigation policy for
climate change in the future.
¾In the chart (right), shows 9 elements
of Kenya National Climate Change
Action Plan.
¾(4) Mitigation planning and actions
includes NAMA and REDD+.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
http://www.environment.go.ke/wp-content/uploads/2011/12/KENYACLIMATE-CHANGE-AP-NATIONAL-ADAPTATION.pdf
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5-4. NAMA; the mitigation policy of Kenya
¾The Government of Kenya puts special emphasis on the following
considerations in the identification of NAMAs:
• Priority mitigation actions in key economic sectors with demonstrated
deviation from business as usual emission levels
• Policy measures and tools aimed at implementing NAMAs and in
meeting the objectives of the country’s sustainable development
strategy
• The co-benefits of implementing mitigation actions
• Support needed for the implementation of NAMAs (costed NAMAs)
• Putting in place a national system for measurement, reporting and
verification.
http://www.environment.go.ke/wp-content/uploads/2011/12/KENYA-CLIMATE-CHANGE-AP-NAMAS-and-REDD+.pdf
¾We should propose the BOCM as it complements NAMA policy of Kenya.
¾ Efforts are needed to develop additional climate change measures for the
tourism business, the major industry in Kenya, to NAMA in order for Hotels to
seek generation of bilateral offset credit.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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5-5. Sugestion; how we develop BOCM
Complement Nama
¾We should propose the BOCM as it complements NAMA policy of Kenya.
¾ Efforts are needed to develop additional climate change measures for the
tourism business, the major industry in Kenya, to NAMA in order for Hotels to
seek generation of bilateral offset credit.
Non-LDC, but LIC or LMIC as a partner of BOCM
¾Non-LDC, but still considered as Low Income Countries (LIC) or Lower
Middle Income Countries (LMIC) in Africa and other parts of the world have
the problem. Finding purchasers of credits after 2013 will not be easy.
¾Thus, non-LDC but LIC or LMIC are considered ideal partners to
promote negotiations over BOCM.
¾In Africa, the list below shows the 12 non-LDC but LIC or LMIC
Cameroon, Cape Verde, Congo, Rep., Cote d'Ivoire, Egypt, Arab Rep.,
Ghana, Kenya, Morocco, Nigeria, Swaziland, Zimbabwe
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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CONTENTS
1.Overview of the Survey
2.Feasibility of Introducing Energy saving Technology and
Renewable Energy into MPATA SAFARI CLUB
3.Survey of Current Green Electrification at Other Hotels
4.MRV Methodology When Renewable Energy Is Introduced to
Hotels
5.Feasibility of Bilateral Offset Credit Mechanism
6.Future Issues and Project Plan
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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6-1. Future Issues
¾These are future issues of this project;
1. Continuous survey at the Club
2. Further Study of other Hotels
3. Setting up an organizing body
4. Approach to the Government
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6-2. Future Issues
Continuous survey at the Club
¾We would like to introduce a PV generation model system to the Club on
an experimental basis and conduct additional surveys at the facilities.
– a 5 to 10 kW-size PV generation model system primarily made in Japan will be
installed.
– This model system will collect data covering actual costs (initial investment cost,
running cost), electricity generated, amount of solar radiation and meteorological
data.
¾Concerning wind power generation, we will survey patterns of wind
throughout the year while bearing in mind the installation of small wind
generators in future.
¾Concerning surveying the possibilities for energy saving, electricity meters
will be installed on the generators, major electric equipment and guest
rooms of the Club.
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6-3. Future Issues
Further Study of other Hotels
¾A local survey of hotels that may introduce renewable energy, etc. in the
future shall be continued.
¾First, a feasibility study for introducing renewable energy into hotels
and other accommodations located in the Masai Mara National Reserve
will be promoted.
¾We would like to survey the present conditions of hotels and lodges that
are located in other national reserves and parks and conduct a feasibility
study in anticipation of introducing renewable energy into those hotels and
lodges.
¾We also would like to formulate a model plan targeting tent lodges, the
largest segment of the market.
Copyright © 2011 NTT DATA Institute of Management Consulting, Inc.
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6-4. Future Issues
Setting up an organizing body
¾As discussed earlier, if a 5- to 10-KW renewable energy system is introduced
into 2,500 Hotels, the amount of credits generated will reach from 10,625 to
21,250 tons.
¾Under the current market price, if the credits per ton can be sold at 10 euros
(=1,200 yen), the total credits obtained would be from 12,900,000 yen to
25,800,000 yen (1 yen = 1 KSh).
¾Concerning wind power generation, we will survey patterns of wind
¾Thus,
an agreement
of the
Hotels
be concluded
prior to
throughout
the year with
whileeach
bearing
in mind
theshall
installation
of small wind
payment ofinafuture.
portion of the amount to each of the Hotels.
generators
¾A body shall be set up (or entrusted) that promotes some other method
(offering low-interest finance or appropriating such portion to premiums on
the insurance for quality assurance of panels).
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6-5. Future Issues
Approach to the Government
¾We would like to share information on NAMA with the Kenyan
Government to utilize BOCM as early as possible.
¾We would like to approach the Ministry of Tourism and the Kenya Tourist
Board (KTB) in the coming survey and continue to survey the actual
situations of other hotels in Kenya.
¾We also seek the possibility to develop climate change measures in the
tourism. If such measures would be added in the list of NAMA, this project
could create credits under the BOCM.
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