Renewable energy – use of hydropower to replace fossil fuels for electricity generation

This Voluntary Carbon Standard project helps to reduce greenhouse gas emissions by displacing fossil fuel generating plants on Brazil’s regional electricity grid. Displacing these generators also reduces ambient air pollution sources, namely sulphur dioxide (SO2), particulates (PM), and nitrous oxide (NOx) associated with fossil fuel combustion. Unlike traditional hydroelectric dams, this project uses only a small weir to divert a portion of the river’s flow, taking advantage of the natural drop in terrain to drive a turbine at the bottom of the hill. In this way, run-of-river projects generate considerably less social and environmental disruptions typically associated with hydropower projects.

Renewable Energy

Yunnan Province, China

Voluntary Carbon Standard

325,000 tonnes of CO2e

Established using the CDM Additionality Tool. The project faces significant financial barriers that would threaten its viability in the absence of carbon finance. Project net present value (NPV) of the project is negative without anticipated carbon credit sales, even when a conservative discount rate is used. In addition, hydropower projects are not considered common practice in Rôndonia, an isolated region of the country.

The project provided employment opportunities during the construction of the hydro plant and because the technology is ‘run-of-river’ no dams needed to be constructed, protecting local biodiversity and natural flow and function of the river. The project will help alleviate a shortage of electricity supply in the local area, supporting enterprise and improving quality of life. Money has also been spent on upgrading the local roads and on new educational facilities. A new communications tower was also built in the village by the project developers, allowing local people to use mobile phone technology.

Completed