Methodological and Practical Considerations for Developing Multiproject Baselines for Electric Power and Cement Industry Projects in Central America

The Lawrence Berkeley National Laboratory (Berkeley Lab) and the Center for Sustainable Development in the Americas (CSDA) conducted technical studies and organized two training workshops to develop capacity in Central America for the evaluation of climate change projects. This paper describes the results of two baseline case studies conducted for these workshops, one for the power sector and one for the cement industry, that were devised to illustrate certain approaches to baseline setting. Multiproject baseline emission rates (BERs) for the main Guatemalan electricity grid were calculated from 2001 data. In recent years, the Guatemalan power sector has experienced rapid growth; thus, a sufficient number of new plants have been built to estimate viable BERs. We found that BERs for baseload plants offsetting additional baseload capacity ranged from 0.702 kgCO2/kWh (using a weighted average stringency) to 0.507 kgCO2/kWh (using a 10th percentile stringency), while the baseline for plants offsetting load-following capacity is lower at 0.567 kgCO2/kWh. For power displaced from existing load-following plants, the rate is higher, 0.735 kgCO2/kWh, as a result of the age of some plants used for meeting peak loads and the infrequency of their use. The approved consolidated methodology for the Clean Development Mechanism yields a single rate of 0.753 kgCO2/kWh. Due to the relatively small number of cement plants in the region and the regional nature of the cement market, all of Central America was chosen as the geographic boundary for setting cement industry BERs. Unfortunately, actual operations and output data were unobtainable for most of the plants in the region, and many data were estimated. Cement industry BERs ranged from 205 kgCO2 to 225 kgCO2 per metric ton of cement.