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Combined legislative and financial mechanisms for solar water heater mass rollout

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Solar thermal for hot water for domestic and industrial use

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Solar thermal technology can be used to provide hot water for domestic or industrial uses. Recently, ‘combi’ systems have been introduced which can provide both space and water heating. Advances in the technology have provided so-called solar assisted air conditioning. The systems can be tailored to different needs and circumstances, such as industrial applications and domestic use.

Clean Development Mechanism market status: 

[this information is kindly provided by the UNEP Risoe Centre Carbon Markets Group]

Project developers of solar thermal energy projects in the CDM pipeline mainly apply the following methodologies:

ACM2 “Consolidated baseline methodology for grid-connected electricity generation from renewable sources”
AMS- I.C. “Thermal energy production with or without electricity”
Further information on these metholodogies can be found here.

As of 1 February 2010, there are 10 solar thermal projects in the CDM pipeline - 5 are registered and 5 are at the validation stage. [media:image:3]

Example CDM project:
Title: Federal Intertrade Pengyang Solar Cooker Project (CDM Ref. No. 2307)
The Federal Intertrade Pengyang Solar Cooker Project is located on the dry land of southern Ningxia in northwestern China. Implemented by Ningxia Federal Intertrade Co., the proposed project will install 17,000 solar cookers for the poor rural residents in mountainous areas with a rural population of 92,331 (or 20,341 households). The project will cover 83.6% of the households in the project region. The rating power of each solar cooker is 773.5 W and the total capacity of the proposed project is 13.1 MW. The proposed project will enable the rural residents to efficiently substitute solar energy for the fossil fuel (coal) used in daily cooking and water boiling - avoiding CO2 emission that would be generated by fossil fuel consumption.
Project investment: USD 900,000 million
Project CO2 reduction over a crediting period of 10 years: 357,230 tCO2e
Expected CER revenue (USD 10/CER): USD 3,572,300

To support South African provincial and local governments in moving SWH legislation forward, and to continue the development of a combined framework of legislation, sound business models and additional government support to promote the large-scale rollout of SWHs in South Africa.

Location

25° 42' 24.84" S, 28° 13' 45.84" E
Main activity and output: 
  • Support the City of Cape Town in its implementation of the SWH bylaw, and support Ekurhuleni to move its own SWH bylaw process forward.
  • Conduct capacity building activities and support the spread of SWH legislation to other municipalities.
  • Continue to work with government to support the development of SWH implementation businesses, including  
  • Work with the Development Bank of  South Africa's Renewable Energy Market Transformation unit to create financing structures for the RE industry
  • Assist Ekurhuleni Metropolitan Municipality (EMM) in establishing mass rollout businesses
  • Disseminate the business case developed for SWH mass implement-ation through these structures and in workshops with business
Expected impact: 
  • In Cape Town, installation of an additional 10,000 SWH units each year, thus saving 6.25MW and 20,000 tonnes of CO2 per year
  • Significant progress towards the establishment of SWH bylaw legislation around the country, using the City of Cape Town as a model for other cities
  • Risk reduction for business and the upscaling of the SWH industry in areas where legislation is passed.
  • Momentum for a national RE financing facility which will offer favourable loans to cities, businesses and private users.
  • Increased employment, energy security and sustained growth of SWH industry