Development Alternatives 1 CDM PROJECT ON ENERGY EFFICIENCY INITIATIVES AT LOTUS SUITES AND THE ORCHID HOTEL, MUMBAI BY MALLIKA ROY DEVELOPMENT ALTERNATIVES

Development Alternatives 2 Features of a CDM Project A project activity to reduce the GHG emission, additional to any that would occur in the absence of the project, compared to the business as usual scenario (BAU) is called a Clean Development Mechanism (CDM) Project. In such a project, the following are the main criteria that should be taken care of :  Additionality Criteria  Sustainable Development  Baseline Calculation

Development Alternatives 3 Validation Monitoring Design, structure, finance Verification & certification Executive Board National approval National Authority CDM Project Cycle Operational entities Registration Issue CERs Project participants

Development Alternatives 4 Foundation: Mr. V.K. Kamat started the group in 1972, which now runs almost 50 hotels and restaurants around the world. Hotels in the Project The Orchid, Mumbai  Asia’s first 5 star certified as an Ecotel Hotel  Awarded the Green Globe Award by World Travel Mart, London  Was honoured with “Green Hotelier & Restaurateur Award” by IH&RA Kamat Hotels India Ltd. The Lotus Suites, Mumbai  Is a 196 room 4 star hotel designed as an Environmentally Sensitive Hotel  Will be fully operational from the year

Development Alternatives 5  Replacement of Condenser, STL Pumps and Production Pumps by low consumption and high efficiency pumps Energy Saving:4,22,039 KWh/year (27%)  Replacement of incandescent lamps by PL & CFLs Energy Saving: 33,73,016 KWh/year (64%)  Replacement of feet electronic chokes by electronic chokes Energy Saving: 46,814 KWh/year (26%)  Variable Frequency Drive Energy Saving: KWh/year (24%) Technologies Installed

Development Alternatives 6  Installation of Auto Power Factor Control Panel Energy Saving: 2,10,240 KWh/year (8%)  Ozonized Fresh Air: Maintains air quality, thus reducing the fresh air requirement and hence the A/C load Energy Saving: 55,582 KWh/year (11%) Technologies Installed

Development Alternatives 7 Eco Button : Reduces load on A/C plant by automatically increasing temperature by 2OC for each room where the eco-button is switched on. Energy Saving: 3,11,856 KWh/year (1%) Desuperheater: Heat generated during condensation on chiller plant is recovered to preheat the water flowing through Hot Water Generator Energy Saving: KWh/year Total Energy Saving: KWh/Year Technologies Installed

Development Alternatives 8 Savings in both the hotel Orchid & Lotus suites Equipments Installed Savings (kWh/year) Savings (in Rs.) Rs / unit Low consumption & high efficiency pumps 2,89,08012,28,590 Electronic chokes1,06,7924,53,866 Installation of CFL16,22,95768,97,567 Eco-Button3,11,85613,25,388 De-super heater15,23,08764,73,119 APFC Panel2,10,2408,93,520 Ozonised fresh air55,5822,36,223 Installation of VFDs1,25,7065,34,250

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10 Baselines Any project proposal must clearly & transparently describe methodology of determination of baseline. Emission baseline is the agreed methodology to quantify “what would have happened ” in the absence of the project. It is established by using data, simulations & assumptions specific to a particular project.

Development Alternatives 11 Baseline   Emissions before CDM activity Emissions from energy use = Energy Use before equipments installed * Emission Coefficient for the Western Grid = kWh/yr * kg CO2/kWh = kg CO2/ yr Emissions from boiler use = kg CO 2 / yr Total emissions before CDM project activity = = kg CO 2 / yr

Development Alternatives 12   Emissions After CDM project activity Emissions from energy use =Energy use after equipments installed * Emission Coefficient for the Western Grid = kWh/yr * kg CO 2 /kWh = kg CO 2 / yr Emission Reduction = 3959 tonnes CO 2 /yr Baseline

Development Alternatives 13 Additionality Criteria Additionality under the CDM refers to the goal of only awarding CERS for reductions that are beyond what would happen under a BAU scenario. Emission/Environmental Additionality: It has been coined to refer to the requirement that a CDM project must generate emission reductions additional to any BAU scenario. Financial Additionality: The funding for CDM project activity should not lead to diversion of overseas development assistance. The project participants may demonstrate how this is being achieved. Technological Additionality: The CDM project activities should lead to transfer of environmentally safe and sound technologies and know how.

Development Alternatives 14 Project participants shall provide an explanation to show that the project activity would not have occurred anyway due to at least one of the following barriers: Investment barrier: A financially more viable alternative to the project activity would have led to higher emissions; Technological barrier: A less technologically advanced alternative to the project activity involves lower risks and so would have led to higher emissions; Barrier due to prevailing practice: Prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions; Other barriers:  Institutional barriers  Limited information  Competition for capital etc. Additionality Criteria

Development Alternatives 15 Additionality in the Project   Environmental Additionality  Emission Reduction = 3959 tonnes CO2eq/yr   Barriers Overcome  Institutional Barriers   Lack of experience with energy efficiency investments   Low priority towards data collection   Uncertain energy savings  Financial Barriers   Cash constraints   Competition for capital

Development Alternatives 16 Additionality Proposed Activity, Technology or Equipment HotelBusiness as Usual scenario in India Barriers Present Air-conditioning plant with de–super heater The Orchid and Lotus Suites Existing old and inefficient AC Plants are in operation; most new hotels do not install de- super heater Investment Barrier Institutional Barrier Injection of ozone (O3) to space air circulation Lotus Suites Not presentTechnological Barrier Provision of ozone treatment to condenser water Lotus Suites Not presentTechnological Barrier Heat Recovery WheelLotus Suites Prevalent in a few metro 5-star category hotels Institutional Barrier Investment Barrier Variable Frequency Drives Lotus Suites Present in very few hotels. Price Barrier

Development Alternatives 17 Additionality Additionality (Contd….) Proposed Activity, Technology or Equipment HotelPresent state-of-the- art in India Barriers Present Solar PV LightingLotus SuitesSolar PV lighting is present in a few top- range metro hotels; Price Barrier APFC PanelLotus SuitesNot presentTechnology Barrier Price Barrier Replacement of lights by CFLs Lotus SuitesPresent in most hotelsPrice Barrier Double Speed MotorsOrchid HotelNot very common in Indian hotels Price barrier Condenser, STL and Production pumps (with higher efficiency) Orchid Hotel and Lotus Suites Hotels in India do not replace their existing pumps with these Price Barrier Eco-button Orchid Hotel and Lotus Suites Totally new concept. Not present in any other hotels in India Technological Barrier Barrier due to prevailing practice Limited information barrier

Development Alternatives 18 Sustainable Development It is the prerogative of the host Party to confirm whether a clean development mechanism project activity assists it in achieving sustainable development. The CDM should also be oriented towards improving the quality of life of the very poor from the environmental standpoint. Following aspects should be considered while designing CDM project Activity:   Social well being   Economic well being   Environmental well being   Technological well being

Development Alternatives 19 Sustainable Development S.D. FactorsIndicatorsImpacts/Results Economic Well-BeingEmployment Generation30 more jobs created Environmental Soundness CO 2 reduction3959 tonnes per year SO 2 reduction380 tonnes per year NO X reduction11 tonnes per year Ash reduction5.06 tonnes per year SPM reduction111µg/nm 3 RPM reduction86µg/nm 3 Water Management70,000 litres of water recycled everyday. Social wellbeingCommunity Development Contribution to children’s welfare organisation Technological Adaptation ReplicationReplicated in 2 more hotels

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