Small Hydro CDM Project S-J-3 for SaleA Kyoto Protocol “Clean Deveolpement Mechanism” Sample Project “Jabusnica

3” in Gacko, BiH - Presentation

What is CDM

• CDM stands for UNFCCC Kyoto Protocol “Clean Development Mechanism”

• http://unfccc.int/resource/docs/publications/08_cdm_in_brief.pdf

• When verified and confirmed for additionality CER’s or Certified Emission Reductions are issued. CER’s are recognized in EU ETS and have a price. The most relevant source for checking spot emission allowances price is

• http://bluenext.eu/

CPM Energetika

• CPM Energetika is a part of CPM group of companies registered in Slovenia, EU

• http://cpm-en.com/• CPM d.d. built 50 MW Hydro in Slovenia• http://www.cpm.si/ • CPMBH is a specialist in building tunnels• http://www.cpmbh.ba/

We Own Concessions in BiH

• In the territory of Republika Srpska in BiH we have access to many (50+) small hydro power plant concessions (20 year / 5% / up to 10MW, renewable). All locations and capacities are verified. We own three.

• We only offer a location for sale when it receives building permit and we get confirmation from grid operator that there is enough grid capacity to accept entire plant’s production .

From Concession to Building Permit

1. Study for the Issue of Concession

2. Concession Contract3. Feasibility Study4. General Design5. Zoning Requirements6. Plots&Pipeline Study7. Hydrological Study8. Preliminary Ecological

Analysis

9. Grid Connectivity Consent

10. Zoning Approval11. Ecological Permit12. Main Design13. Land Use Rights14. Revision of Main

Design15. Fire Prevention Permit

16.Building Permit

The Importance of Thorough Planning

• It is of utmost importance to know local legislation concernig: – Zoning and Building code– Energy– Ecology– National Parks– Labour– Security and Fire Prevention– Administrative Procedures

• It is also vise (necessary) to speak local language

Characteristics of Jabušnica 3 (S-J-3)

• Water Flow Q = 1.0 m3 /s• Fall H = 270.6m• Power installed P = 2,124 MW• Anticipated Production E = 10.350 MWh/Year

• Preliminary calculations show that in BiH small hydro power plant saves 1,091 T CO2 /MWh

Approximate Price Without CER’s

• ~ 2.000€/kW installed pays for:– The plant on “turnkey” basis

Calculations for S-J-3 without CER

• Price for 2.124 MW installed = ~€ 4.248.000• Revenue from electricity production→

10.350MWh/Y * 50€/MWh =~ 517.500• Net Revenue -(5% maintenance, 5%

concession fee) =~ 465.750• IRR (30Y) = 10,33%• Return in 9.1 years

Approximate Price

• ~ 2.300€/kW installed pays for:– The plant on “turnkey” basis– 100% of issued Certified Emission Reductions– Certificate of Origin

Calculations for S-J-3 with CER

• Price for 2.124 MW installed = ~€ 4.885.200• Revenue from electricity production→ 10.350MWh/Y *

50€/MWh =~ €517.500• Net Revenue -(5% maintenance, 5% concession fee)

=~ €465.750• Revenue from CER’s 15€/T =~ €169.378• Total yearly revenue =~ €635.128• IRR (30Y) = ~12,58%• Return in 7.7 years• Certificate of Origin no price as yet but expected

+ 386 2 33 21 281CPM Energetika, Tržaška 39, Si-2000 Maribor, SloveniaE-mail: info@cpm-en.com Web : http://cpm-en.com

CDM – a global tool for global warming problems