CDM has published a new methodology: AM0123 - Renewable energy generation for captive use


In the face of climate change and increasing energy demands, the world is progressively shifting towards sustainable and renewable energy sources. Among the various initiatives, the AM0123 methodology stands out as a beacon of hope, focusing on renewable energy generation for captive use. This innovative approach addresses the pressing need to reduce greenhouse gas emissions and promote energy self-sufficiency. This article delves into the essence of AM0123, exploring its methodology and implications for a greener future.

The methodology applies to new renewable energy power generation projects supplying electricity to a captive consumer, including integration with battery energy storage systems (BESS). Here are the key points:


1. Scope and Applicability:

  • The methodology applies to greenfield renewable energy power generation projects.
  • Applicable to projects supplying electricity to a captive consumer through a grid interface or a dedicated transmission line.
  • Integration with BESS is allowed under specific conditions.
  • Paragraph 5b provides a precise definition of captive usage, stating that "the renewable energy producer and the facility consuming the energy must be owned by the same project participant.
  • This methodology cannot be employed for third-party sales.


2. Baseline Methodology:


  • Project emissions are calculated, considering emissions from fossil fuel combustion, water reservoirs of hydro power plants, and charging of BESS using grid or fossil fuel electricity generators.
  • Baseline emissions include CO2 emissions from displaced fossil fuel-fired power plants.
  • Leakage emissions are not considered.


3. Monitoring Methodology:

  • Data on total electricity produced, installed capacity, area of reservoirs, and surplus electricity supplied to the grid are monitored.
  • All data are archived electronically for at least two years after the crediting period.
  • Calibration of measurement equipment and adherence to industry standards are required.


4. Entry into Force:

The methodology was adopted on 27 September 2023, as per the decision by Executive Board.

The methodology addresses various scenarios, including different sources of electricity generation, integration with BESS, and specific calculations for emissions from hydro power plants. It provides detailed guidelines for determining project emissions, baseline emissions, and emission reductions, along with specific parameters and formulas for calculations.

For further details on the methodology: https://cdm.unfccc.int/methodologies/DB/F0UCO5LLYB1LDTVD8GCTJZKACTGUTQ


Climate Balanced is a carbon conulting company which gives carbon certification consulting services to renewable energy projects. To utilize this metholody for your captive renewable energy projects’ carbon certification services, you may reach out to Climate Balanced.