Greenhouse Gas Emission Analysis
with RETScreen® Software
Clean Energy Project Analysis Course
Photo Credit: Environment Canada
© Minister of Natural Resources Canada 2001 – 2004.
Objectives
• Introduce a methodology for
calculating reductions in
greenhouse gas (GHG) emissions
• Demonstrate the RETScreen®
GHG Emission Reduction
Analysis Model
© Minister of Natural Resources Canada 2001 – 2004.
What needs to be calculated?
• Annual greenhouse gas emission reduction
Base case (typically conventional technology) vs.
Proposed case (clean energy technology)
Units: tonnes of CO2 per year
CH4 and N2O emissions converted to equivalent CO2
emissions in terms of their global warming potential
© Minister of Natural Resources Canada 2001 – 2004.
How is this calculated?
Annual GHG emission reduction
=
(t CO )
2
Base case Proposed case End-use
GHG emission GHG emission annual energy
factor - factor
x
delivered
(t CO /MWh) (t CO /MWh) (MWh)
2 2
• RETScreen® adjusts the annual reduction to account for
transmission & distribution losses and GHG credits
transaction fees (Version 3.0 or higher)
© Minister of Natural Resources Canada 2001 – 2004.
RETScreen® GHG Emission
Reduction Analysis Model
• Standardised methodology
developed by NRCan with
the United Nations
Environment Programme
(UNEP), the UNEP RISØ
Centre on Energy, Climate
and Sustainable
Development (URC), and
the World Bank’s Prototype
Carbon Fund (PCF)
• Validated by a team of
experts from Government
and Industry
© Minister of Natural Resources Canada 2001 – 2004.
Type of Analysis
• Standard analysis: RETScreen® automatically uses
IPCC and industry standard values for:
CO2 equivalence factors for CH4 and N2O
CO2, CH4, and N2O emissions for common fuels
Efficiency for conversion of fuel to heat or electricity
• Custom analysis: the user specifies these values
• User-defined analysis: user enters GHG emission
factors directly (Version 3.0 or higher)
Does not specify fuels and conversion efficiencies
© Minister of Natural Resources Canada 2001 – 2004.
Defining Baseline
• Different baselines for GHG emission calculations:
Historic static baseline (all existing generating capacity)
Historic static baseline based on recent trends
Future static baseline based on expansion plans
Future marginal dynamic baseline
Others
• RETScreen® permits one baseline change during course of project
(Version 3.0 or higher)
• Can be based on international, national, or sub-national areas
• Still under negotiation via the Kyoto Protocol
• User must be able to defend choice of baseline and should not
overestimate emission reductions
© Minister of Natural Resources Canada 2001 – 2004.
®
RETScreen Facilitates Kyoto Protocol
CDM and JI Projects
• Clean Development Mechanism (CDM) Projects:
Industrialised countries or companies that invest in GHG emission reduction
projects in developing countries gain credits from these projects
• Small-scale CDM projects can use simplified baseline methods
Electricity projects ≤ 15 MW
Energy efficiency projects saving ≤ 15 GWh per year
• Joint Implementation (JI) Projects:
Industrialised countries or companies gain GHG emission reduction credits by
investing in a project in another country that has emission reduction targets
under the Kyoto Protocol (i.e. Annex I countries)
Project typically in an economy-in-transition country
• CDM and JI projects need to demonstrate “additionality”
– emission reductions beyond those achieved in baseline scenario
© Minister of Natural Resources Canada 2001 – 2004.
Conclusions
• RETScreen® calculates the annual GHG emission
reduction for a clean energy project compared
to a base case system
• Easy to use, but does require the user to define the
base case scenario carefully for larger projects
• Model takes into account emerging rules under the
Kyoto Protocol at the pre-feasibility study level
• To maintain credibility, user should not overestimate
GHG emission reductions of the proposed project
© Minister of Natural Resources Canada 2001 – 2004.
Questions?
Greenhouse Gas Emission Analysis with RETScreen® Software Module
RETScreen® International Clean Energy Project Analysis Course
Photo Credit:
Environment Canada
For further information please visit the RETScreen Website at
www.retscreen.net
© Minister of Natural Resources Canada 2001 – 2004.
