Abstract
One of the most important parameters for developing Clean Development Mechanism (CDM) project proposals in the electricity sector (both supply and efficiency) is the standard electricity ‘grid emission factor’, which represents the carbon dioxide related to a megawatt hour of electricity supplied or saved on the grid. While there are detailed guidelines from the CDM Executive Board on how to calculate this emission factor, the values used in registered CDM projects in South Africa vary widely, both due to changes in the rules over time and also to misapplication of the rules. This paper shows how the application of the latest guidelines gives a ‘combined margin emission factor’ for South Africa of 0.957 tCO2/MWh in 2009/2010. The variation in emission factors in the literature, as well as the importance of reducing the transaction costs for South African project developers, points to the need for an official published grid emission factor from the CDM host country authority in South Africa, the Designated National Authority (DNA), within the Department of Energy.
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