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South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency. KEY ISSUES FOR PACE Dean Cooper, Managing Director, Parallax. Key Issues for the PACE Centre. Cost. Potential barriers to small-scale CDM. South African PACE Centre
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South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency KEY ISSUES FOR PACE Dean Cooper, Managing Director, Parallax
Key Issues for the PACE Centre Cost Potential barriers to small-scale CDM
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Cost “CDMs have not really developed anything. So far they have been all costs and no benefits.” (Brian Dawson, UNDP, 11 Dec 2004)
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Transaction Costs • Project baselines • Validating procedures • Monitoring plan • Contract negotiation • Registration • Up front payment
Key Issues for the PACE Centre Cost Awareness Potential barriers to small-scale CDM
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Awareness of Small-Scale CDM Prospects • Lack of information • Bias towards “low-hanging fruit” • Short term outlook • Uncertainties –investment & returns
Key Issues for the PACE Centre Cost Awareness Potential barriers to small-scale CDM Scale
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Scale to Attract Investors • Individual projects insufficient • Project bundling • Common baselines (international experience) • Low and delayed revenue streams • High project & business risks
Key Issues for the PACE Centre Cost Awareness Potential barriers to small-scale CDM Scale Project Cycle
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Project Cycle • Understanding • Eligibility (DNA relations) • Timing (approval & validation) • Monitoring
Key Issues for the PACE Centre Cost Awareness Potential barriers to small-scale CDM Scale Capacity Project Cycle
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Limited Capacity • Technology knowledge base • Access to financial & technical resources • Institutional capacity (including bureaucracy) • Clarity of policy • Investment capacity
Key Issues for the PACE Centre Cost Awareness Time Potential barriers to small-scale CDM Scale Capacity Project Cycle
South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Time Demands • Understanding processes • Completing PINs / PDDs • Finding project partners (public/private) • Establishing links to scale-up • Investor agreements
Key Issues for the PACE Centre Cost Awareness Time Potential barriers to small-scale CDM Scale Capacity Project Cycle