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Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA As a federally owned enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Published by Deutsche Gesellschaft für Internationale Zusammenarbeit GIZ GmbH Registered offices Bonn and Eschborn, Germany Authors Irene Papst Johanna Gloel Editors Denise Andres Design Jettanat Tripetch GIZ is responsible for the content of this publication. Printing and distribution Bangkok, July 2021 0. Background 7 1. Project MRV System 8 2. Methodology and Application 10 2.1. Implementation of Calculation in the Tool 12 2.2. Baseline Considerations 15 3. User’s Guide 17 3.1. Monitoring Tool Files 18 3.2. Master Mitigation File 21 4. Technical Parameters 23 4.1. Carbon Intensity of Electricity Generation 23 4.2. Global Warming Potential of Refrigerants 23 4.3. Subsector-specific Parameters 24 4.3.1. Domestic Refrigerators 24 4.3.2. Commercial Refrigeration Stand-alone Systems 26 4.3.3. Split ACs 27 4.3.4. Chillers 28 4.3.5. Other Unitary AC Equipment 29 5. References 30 6. Annex I 30 CONTENT 4 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA Abbreviations AC Air Conditioning or Air Conditioner AR Assessment Report BL Baseline BTR Biennial Transparency Report BUR Biennial Update Report CO2 Carbon Dioxide COP Coefficient of Performance CSPF Cooling Season Performance Factor DEDE Department of Alternative Energy Development and Efficiency DIW Department of Industrial Works EER Energy Efficiency Ratio EGAT Electricity Generating Authority of Thailand GHG Greenhouse Gas GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GIZ GmbH 5 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA GWP Global Warming Potential HEPS High Energy Performance Standard IPCC Intergovernmental Panel on Climate Change IPPU Industrial Processes and Product Use MA Market Average MEPS Minimum Energy Performance Standard MRV Monitoring, Reporting and Verification NAMA Nationally Appropriate Mitigation Action NDCs Nationally Determined Contributions ONEP Office of Natural Resources and Environmental Policy and Planning RAC Refrigeration and Air Conditioning SEER Seasonal Energy Efficiency Ratio UNFCCC United Nations Framework Convention on Climate Change 6 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA About the Project MRV Tool These guidelines explain the use of the Project MRV Tool Package for the project Thailand Refrigeration and Air Con- ditioning Nationally Appropriate Mitigation Action RAC NAMA. It contains a theoretical guide for the parameters, baselines, and calculations used in the tool as well as a practical guide for its application. 7 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA The project Thailand “RAC NAMA” or Refrigeration and Air Conditioning – Nationally Appropriate Mitigation Action aims to support Thailand in initiating a sustainable transformation in the cooling sector by promoting climate-friendly and energy-efficient cooling technologies. The project is funded by the NAMA Facility 1 and is implemented by GIZ together with the Office of Natural Resources and Environmental Policy and Planning ONEP, the Department of Alternative Energy Development and Efficiency DEDE and the Electricity Generating Authority of Thailand EGAT. Aiming to promote the market introduction of green cooling technologies, the RAC NAMA Fund was established in 2018 together with EGAT as the host and project fund manager. With EUR 8.3 million, the fund launched financing mechanisms for targeted beneficiaries, especially local producers, consumers, trainings and testing facilities. Spe- cifically with the support provided to local producers and consumers, greenhouse gas GHG emission reductions are achieved. As a project, RAC NAMA has reporting obligations to the donors regarding its results incl. targeted and achieved emission reductions. And as part of Thailand’s Nationally Determined Contributions NDCs, RAC NAMA’s mitigation results can be included in the country’s reporting to the UNFCCC – for example, in the context of the Biennial Update Report BUR/Biennial Transparency Report BTR. 0 Background More information on the RAC NAMA project, visit www.racnama.org 1 NAMA Facility is a multi-donor facility that provides tailor-made support for the implementation of highly ambitious and transformational NAMAs in developing countries. The Facility conducts competitive calls and selects the most ambitious and promising NAMA Support Projects for funding. For more information, visit https//www.nama-facility.org/ 8 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA A monitoring, reporting and verification MRV scheme of greenhouse gas GHG emissions can be designed for and implemented on different levels project, sectoral, and national. The Project MRV Scheme illustrated below Fig.1 focuses on the direct and indirect emission reductions achieved through the RAC NAMA project, more specifically through the different financing mechanisms launched by the RAC NAMA Fund 2 for different target groups. . Annex I provides more information on the financing schemes launched by the RAC NAMA Fund. 1 Project MRV System F i g u r e 1 - Current Project MRV Scheme for RAC NAMA Emission Reductions There are four targeted subsectors for which the RAC NAMA Fund made financing mechanisms available – each subsector is shortly described in Table 1 below. The fund supported banks in operating a credit card scheme for consumers of domestic refrigerators that natural refrigerants, and are highly energy efficient. Further, the fund sup- ported producers of commercial refrigerators, ACs split-type and portable, and chillers through sub-grants and credit lines for the production line conversion, market introduction and sales promotion of green cooling technologies. 2 The RAC NAMA Fund was established in 2018 together with EGAT as the host and project fund manager. With EUR 8.3 million, the fund launched financing mechanisms for targeted beneficiaries, especially local producers, consumers, trainings and testing facilities. Funding was awarded based on competitive bidding; RAC NAMA Fund beneficiaries have contractual obligations to report to EGAT including but not limited to data essential for estimating emissions reductions. Chaired by ONEP Verification Reporting Measurement Banks Producers Production Line Conversion Market Intro and Sales Promotion Credit card scheme Technical experts GIZ and international conlultants EGAT Pr R134 R600a Dom Ref. R404A R600a Com Ref. R134A R600a Chiller ACs R410A R290a Split ACs Banks Credit card scheme 9 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA F i g u r e 2 - Reporting Timeline of Producers Table 1 - Targeted RAC Subsectors Subsector Domestic refrigeration Refrigerator/freezer Commercial refrigeration Stand-alone units Unitary air conditioning Split air-conditioners duct- less Chillers, air-conditioning Unitary air conditioning Monoblock and Mini Chiller Description Household refrigerators and freezers as well as refrigerator-freezer combinations. Plug-in units with an integrated condensing unit self-contained refrigeration systems, such as vending machines, ice cream freezers and beverage coolers Single split systems one indoor unit is connected to one condensing unit. The systems consist of two elements 1 the condenser unit containing the com- pressor mounted outside the room, and 2 the indoor unit evaporator supplying cooled air to the room. Air-conditioning chillers to cool a liquid usually water, which is then distributed to air-handling units within the building AC chillers are mainly applied for commer- cial and light industrial purposes. This refers to proposed equipment types that do not match standard parameters attributed to the 4 subsectors. Monoblock units combine condenser and evaporator in one housing, which is located outside of the cooled space. An air-duct is used to transport the cooled air into the room. Mini Chillers also combine condenser and evaporator in one housing, that is located outdoors. Instead of cooled air, a mini chiller supplies cooled water. Parameter Considerations Leakage rates during operation are usu- ally low because systems are built under factory conditions, hermetically sealed and tested. Product lifetimes are long. Leakage rates during operation are usually low, because systems are built under factory conditions, hermetically sealed and tested. Product lifetimes are long. Leakage rates during operation are usually high because systems are built on site and this depends on the skill of the individual installer. Product lifetimes are shorter. Leakage rates during operation are usually high because systems are built on site, which depends on the skill of the individual installer. Product lifetimes are long due to high investment costs. Leakage rates during operation vary depending whether the systems can be factory sealed or piping is completed on site. For the MRV, we expect similar emission factors as for Split ACs. Product lifetimes are medium between refrigerators and split ACs. The beneficiaries i.e., banks and producers have a contractual obligation to report to EGAT based on the agreed terms, which include necessary figures and technical data for the Project MRV System / Tool. While the credit card scheme already finished in 2018, participating producers still have reporting obligations to EGAT. 10 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA 2 Methodology and Application Emissions from the RAC sector arise from direct and indirect emissions, from refrigerant use and electricity consumption respectively, which are attributed to the IPPU and energy sectors under the IPCC 2006 Guidelines IPCC 2006. The project MRV adheres to the Tier 2 Methodology under the IPCC 2006 guidelines 3 , following the subsector 4 categories provided and collecting data at equipment level. The product specific data needed to be collected are specified below Direct emissions / refrigerant use - refrigerant type - refrigerant charge - manufacturing emissions - in-use / operating emissions - disposal emissions - estimated lifetime Indirect emissions / energy consumption - cooling capacity - COP / SEER 5 - average runtime hours - compressor type fixed speed or inverter - energy consumption based on standard testing method if available Non-product specific parameters are the global warming potential of the refrigerants and the Thai grid emission factor. Direct emissions over the lifetime of the equipment unit are calculated based on the following formula EM dir,LT IC GWP EF manu EF serv LT EF disp 1000 EM dir,LT Direct Emission over Lifetime of Equipment [t CO 2 eq] IC Initial Refrigerant Charge of Equipment [kg] GWP Global Warming Potential of Refrigerant EF manu Emission Factor during Manufacture [ of initial charge] EF serv Emission Factor during Operation/Servicing [ of initial charge], applied annually EF disp Emission Factor during Disposal [ of initial charge] LT Lifetime of Equipment [years] Emission factors are dependent on circumstances and can be different for two units of the same model. For example, the refrigerant leakage during the operation of a split AC unit is directly dependent on the skill of the installing technician. As this is impossible to monitor, averages are applied. Manufacture and disposal emissions calculated at the time they occur. Manufacture emissions in the first year, disposal emission after the last year of operation. 3 https//www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/3_Volume3/V3_7_Ch7_ODS_Substitutes.pdf 4 RAC subsectors are unitary air-conditioners self-contained, split, split ducted, rooftop and multi-split/VRV units, chillers AC and process, mobile air-conditioners passenger cars and large vehicles, domestic refrigeration, commercial refrigeration stand-alone systems, condensing units, centralised systems, industrial refrigeration integral systems, condensing units, centralised systems and transport refrigeration. 5 Seasonal energy efficiency ratio/ Energy efficiency ratio 11 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA Direct emission in the first year Direct emission during operation annually between 2nd year of operation and year of disposal Direct emission at disposal The emissions during disposal occur in the year of disposal. For our above example LT8 years, the disposal emissions of units sold in 2020 occur in 2028. - EM baseline EM project ER 1000 EM ind,annual EM annual EF grid Annual indirect emissions are calculated by multiplying the annual energy consumption with the national grid emission factor. EM ind,annual Indirect Emission of Equipment during one year [t CO2eq] EC annual Annual Electricity Consumption of Equipment for one year [kWh/year] EF grid Emission Factor of Electricity Grid [kg CO2/kWh] The energy consumption is determined based on available data, favorably using measured data under standard testing conditions. Details will be described on a subsector basis below. The emission reduction is calculated by subtracting the emissions originating from the unit positively affected by the RAC NAMA project from the emissions originating from a baseline unit. ER Emission Reduction [t CO 2 eq] EM baseline Emission from the Use of Baseline Equipment [t CO 2 eq] EM project Emission from the Use of Project Equipment [t CO 2 eq] In case the reported baseline refrigerant is an HCFC, i.e. R22, which is not classified as a GHG that is to be reduced under the UNFCCC and thus not part of a GHG inventory or accountable mitigation, the baseline refrigerant for calculation is the most likely HFC refrigerant, which would have been used in absence of the project activity. 1000 EM dir,fy IC * GW * EF manu EF serv EM dir,fy Direct Emission of Equipment in the first year [tCO2eq] 1000 EM dir,operation IC * GWP * EF serv EM dir,operation Direct Emission of Equipment during each year of operation [tCO2eq] 1000 EM dir,disposal IC * GWP * EF disp EM dir,disposal Direct Emission of Equipment during disposal [tCO2eq] 12 Project MRV Tool Guidelines Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action RAC NAMA