SN Power started to develop its greenfield projects to qualify for CDM in 2005. Since then, we have aimed to obtain CDM registration for all new projects.
In 2011, the Ambuklao and Binga hydropower plants achieved CDM registration. Both plants are located in the Philippines and are CDM registered as rehabilitation projects. Ambuklao had been mothballed, and the rehabilitation project brought it back into operation, whereas Binga was upgraded, giving a right to CERs based on the incremental production brought about by the increased capacity.
In 2012, the Bajo Frio Hydro Power Project in Panama, with its 58 MW installed capacity, obtained the UN approval and was added to our CDM portfolio.
Issuance of Carbon Credits (CERs)
With the exception of Bajo Frio, all of our CDM projects are in operation, and therefore eligible for periodic issuance of CERs.
The issuance volumes are based on the actual power generation during a period of our choosing and the Emission Factor of the grid in which they are located. 2012 was the first year of CER issuances for the SN Power CDM portfolio.
The role of hydropower
Hydropower is a clean and renewable source of energy and is thus eligible for the UN Clean Development Mechanism (CDM).
Hydropower plays a major role in reducing greenhouse gas emissions. Developing half of the world’s economically feasible hydropower potential could reduce greenhouse gases emissions by about 13%, according to International Hydropower Association.
In developing countries, much of the new hydropower capacity coming in has been partly financed through the CDM; as much as almost 40 000 MW since 2005, and over 13 000 MW in 2012. Hydropower represents almost 1/3 of the yearly added CDM projects, as measured by the planned emissions reductions, with over 80% of that in the form of “large hydro” (above 20MW).