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Joint Crediting Mechanism Approved Methodology VN_AM003“Improving the energy efficiency of commercial buildings by utilization of high efficiency
equipment”
A. Title of the methodology
Improving the energy efficiency of commercial buildings by utilization of high efficiency
equipment, Version 01.0

B. Terms and definitions
Terms

Definitions

High efficiency equipment

Building facility equipment listed in Table 1 of the eligibility
criterion 1.

Reference equipment

Equipment whose output is replaced/substituted by theproject.

Coefficient of PerformanceFor the purpose of this methodology, COP is defined as a(COP)

ratio of heat supplied to the amount of energy consumed by achiller or heat pump, and it is defined by using following
formula:
COP = Q/W
Where:
Q: Amount of heat supplied by a chiller or a heat pump
W: Electric power consumed by a chiller or a heat pump

C. Summary of the methodology
Items

Summary

GHG emission reduction

Reduction of electricity and fossil fuel consumed by existingmeasuresfacilities is achieved by replacing or substituting these facilities
with high efficiency equipment defined in Table 1 of theeligibility criterion 1.

Calculation of reference

Reference emissions are calculated by multiplying electricity

emissionsand fossil fuel consumption of the project by the ratio of1

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efficiency of reference and project equipment, and emission
factors of electricity and fossil fuel.
For the installation of high efficiency lighting, reference
emissions are calculated using rated electricity consumption of
the lighting multiplied by operation hours.
Calculation of project

Project emissions are calculated based on monitored electricityemissions

and fossil fuel consumption in the project.

Monitoring parameters

Electricity and fossil fuel consumption of the high efficiency
equipment
Operating hours of the high efficiency equipment and auxiliary
equipment, where applicable2

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Sectoral scope: 03D. Eligibility criteria
This methodology is applicable to projects that satisfy all of the following criteria.
Criterion 1

The project involves implementation of one or more energy efficiency measures
categorized in Table 1 by using high efficiency equipment at an existing facility.
Projects involving installation of high efficiency lighting need to be coupled withanother energy saving measure(s) in order to be eligible under this methodology.
High efficiency equipment introduced by the project replaces the existing
equipment or substitutes the output of the existing equipment, and it is includedin the applicable technologies as shown in Table 1:

Criterion 2

Table 1 Applicable Technologies
No Energy efficiency
Applicable technologies and their criteria
measures
1
Energy efficiency
High efficiency boiler with the following features:
improvement by- Energy efficiency is greater or equal to 93%
reducing fossil fuel (e.g. small once -through boiler);
consumption- Equipped with automatic unit number control
device; and- Individual performance test report is provided.
2
Fuel switch toHeat recovery heat pump using electricity, whichelectricity and/or
generates both cooling and heating energy
efficiency(temperature of hot water ≥80°C) and uses
improvement
non-HFC refrigerant with zero Ozone Depletion
Potential (ODP)
3
Installation of high LED lighting
efficiency lighting
If the existing equipment is a chiller containing CFCs, HFCs, or HCFCs and isremoved due to the project, a plan to prevent release of refrigerant used for theexisting chiller into the atmosphere is prepared. Execution of the prevention planis checked at the time of verification, in order to confirm that the refrigerant used
for the existing chiller is not released to the air.

Criterion 3

High efficiency equipment in the project guarantees a better performance than
the reference equipment for a minimum of one year.
The performance level can be confirmed by comparing the efficiency or rated
electricity consumption between the high efficiency equipment and the reference
equipment, with an evidence of either a manufacturer’s performance guarantee
or energy saving company’s (ESCO) energy saving guarantee of high efficiency
equipment. Where such evidence is not available for the reference equipment,high efficiency equipment in the project guarantees a better performance than thedefault efficiency values provided in the methodology.
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Sectoral scope: 03E. Emission Sources and GHG types
Reference emissions
Emission sources

GHG types

Fossil fuel consumption by the reference equipment

CO2

Electricity consumption by the reference equipment

CO2

Project emissions
Emission sources

GHG types

Fossil fuel consumption by the high efficiency equipment

CO2Electricity consumption by the high efficiency equipment

CO2Electricity consumption by the auxiliary equipment for the highCO2efficiency equipment

F. Establishment and calculation of reference emissions
F.1. Establishment of reference emissions
Reference emissions are calculated by multiplying electricity and fossil fuel consumption of theproject by the ratio of efficiency of reference and project equipment, and emission factors ofelectricity and fossil fuel. Individual electricity and fossil fuel consumption are derived frommonitored fuel and electricity consumption by the high efficiency equipment. Below are typicalexamples of reference equipment replaced or substituted by high efficiency equipment.

Project equipment

Typical examples ofreference equipment

1 Energy efficiency improvement by
reducing fossil fuel consumption

High efficiency boiler

Boiler2

Fuel switch to electricity and/orefficiency improvement

Heat recovery heatpump

BoilerChiller

3

Installation of high efficiency
lighting

LED lighting

HalogenFluorescent

Energy efficiency measures

The methodology ensures net emission reductions by the followings:
1) Adopting conservative default efficiency values for calculation of reference emissions-Boilers: applying CDM default efficiency for new boilers;4

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Sectoral scope: 03-Chillers: design efficiency of models sold by dominant manufacturers in the chiller market
in Vietnam2) Implementation of multiple measures
Among the three measures introduced in this methodology, one measure (installation of highefficiency lighting) may have a possibility where the calculation result will not demonstrate netemission reductions due to the way the equation is formulated. In order to ensure the net
emission reductions, the methodology requires to implement together with other energy
efficiency measure(s) stated in table 1 under the eligibility criteria.

F.2. Calculation of reference emissions
Reference emissions are calculated by the following equation:

RE p =å EC

REF , i , pi

1,000

´ EFCO 2, ELEC + å (FC REF , i , p ´ EFCO 2 )(1)iWhereREp

Reference emissions during the period p [tCO2/p]

ECREF,i,pElectricity consumed during the period p by reference equipment
corresponding to measure i introduced in the project [kWh/p]

EFCO2,ELEC

CO2 emission factor of electricity consumed [tCO2/MWh]

FCREF,i,pFossil fuel consumed during the period p by reference equipment,corresponding to measure i introduced in the project [L/p].

EFCO2

CO2 emission factor of fossil fuel [tCO2/L]

i

Type of measure

Measure 1: High efficiency boiler

FC REF ,1, p = å FC PJ 1,i , p ´
ih PJ 1,ih REF1,i(2)WhereFCREF,1,pTotal fossil fuel that would have been consumed during the period p by thereference equipment, replaced/substituted by the high efficiency equipment
introduced in the project categorized as measure 1 [L/p]

FCPJ1,i,pFossil fuel consumed during the period p by the high efficiency equipment i5

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introduced in the project categorized as measure 1 [L/p]ηPJ1,i

Energy efficiency of the equipment i introduced in the project [dimensionless]ηREF1,iEnergy efficiency of the reference equipment, replaced/substituted by theequipment i introduced in the project [dimensionless]

Measure 2: Heat recovery heat pump

FC REF , 2, p = å

ECPJ 2,i , p

EC REF ,2 , p = å

EC PJ 2 ,i , piiECRi

ECRi´ H i ´ DCi

(3)

CH i
COPi

(4)

´

WhereFCREF,2,p

Total fossil fuel that would have been consumed during the period p by thereference equipment, replaced/substituted by the high efficiency equipment in theproject categorized as measure 2 [L/p]

ECPJ2,i,pElectricity consumed during the period p by the high efficiency equipment i in
the project categorized as measure 2 [kWh/p]

ECRiRated electricity consumption of the high efficiency equipment i introduced in theproject [kW]Hi

Rated heating capacity of the high efficiency equipment i in the project [kW]DCi

Unit fuel consumption rate of the reference equipment that are replaced/substitutedby the equipment i in the project [L/kWh]

ECREF,2,pTotal electricity that would have been consumed during the period p by thereference equipment, replaced/substituted by the high efficiency equipment
introduced in the project categorized as measure 2 [kWh/p]CHi

Rated cooling capacity of the high efficiency equipment i introduced in theproject [kW]COPi

Efficiency of reference cooling equipment replaced/substituted by the equipmenti introduced in the project [dimensionless]

Measure 3: LED lighting

EC REF ,3 , p = å ECR REF 3 ,i ´ t i , p(5)iWhereECREF,3,p

Total electricity that would have been consumed during the period p by thereference equipment, replaced/substituted by the high efficiency equipment

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introduced in the project categorized as measure 3 [kWh/p]
ECRREF3,i Rated electricity consumption of the reference equipment i, replaced by the highefficiency equipment i in the project categorized as measure 3 [kW]ti,pOperating hours of the high efficiency equipment i during the period p in theproject categorized as measure 3 [hr/p]

G. Calculation of project emissions
Project emissions are calculated as a sum of emissions from electricity and fossil fuelconsumption in the project. The emission from electricity consumption is calculated bymultiplying electricity consumed by the project (ECPJ,i,p) by the CO2 emission factor ofelectricity (EFCO2,ELEC). The emission from fuel consumption is calculated by multiplying fuelconsumed by the project (FCPJ,i,p) by the emission factor of the fuel (EFCO2).

PE p =å EC

PJ , i , pi

1,000

´ EFCO 2, ELEC + å (FCPJ ,i , p ´ EFCO 2 )(6)iWherePEp

Project emissions during the period p [tCO2/p]

ECPJ,i,pTotal electricity consumed by the high efficiency equipment by measure iintroduced in the project during the period p [kWh/p]

EFCO2,ELEC

CO2 emission factor of the electricity consumed [tCO2/MWh]

FCPJ,i, p

Total fossil fuel consumed by the high efficiency equipment by measure iintroduced in the project during the period p [L/p]

EFCO2

CO2 emission factor of fossil fuel[tCO2/L]

i

Type of measure

Measure 1: High efficiency boiler

FC PJ ,1, p = å FC PJ 1,i , p

(7)

i

Where
FCPJ,1,pTotal fossil fuel consumed during the period p by the high efficiency
equipment introduced in the project categorized as measure 1 [L/p]

FCPJ1,i,pFossil fuel consumed during the period p by the high efficiency equipmenti introduced in the project categorized as measure 1 [L/p]7

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Measure 2: Heat recovery heat pump

EC PJ , 2, p = å (EC PJ 2,i , p + ECAi ´ t p )

(8)

i

Where
ECPJ,2,pTotal electricity consumed during the period p by the high efficiency
equipment introduced in the project categorized as measure 2 [kWh/p]

ECPJ2,i,pElectricity consumed during the period p by the high efficiency equipmenti introduced in the project categorized as measure 2 [kWh/p]ECAi

Capacity of auxiliary electric equipment that is installed due to theimplementation of the high efficiency equipment i [kW]tp

Operating hours of auxiliary electric equipment during the period p [hr/p]

Measure 3: LED lighting

EC PJ ,3, p = å (EC PJ 3,i ´ t i , p )

(9)

i

Where
ECPJ,3,pTotal electricity consumed during the period p by the high efficiency
equipment introduced in the project categorized as measure 3 [kWh/p]

ECPJ3,iRated electricity consumption of the high efficiency equipment i in theproject categorized as measure 3 [kW]ti,pOperating hours of the high efficiency equipment i introduced in theproject during the period p categorized as measure 3 [hr/p]

H. Calculation of emissions reductions
Emission reduction is calculated by the following equation.

ER p = RE p - PE p

(10)

Where
ERp

Emission reduction during the period p [tCO2/p]

REp

Reference emission during the period p [tCO2/p]

PEp

Project emission during the period p [tCO2/p]

I. Data and parameters fixed ex ante8

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The source of each data and parameter fixed ex ante is listed as below.
Parameter
ηPJ1,i

Description of data

SourceEnergy efficiency of the equipment i introduced in the Rated/provided by theprojectηREF1,iEnergytechnology supplierefficiencyofthereference

equipment Default values in thereplaced/substituted by the equipment i introduced in methodology
the project
ECRi

Rated electricity consumption of the high efficiency Rated/provided by theequipment i introduced in the projectHi

technology supplier

Rated heating capacity of the high efficiency Rated/provided by theequipment i introduced in the projectDCi

technology supplier

Unit fuel consumption rate of the reference equipment Rated/provided by the
replaced/ substituted by the equipment i introduced in technology supplier
the project

CHi

Rated cooling capacity of the high efficiency Rated/provided by theequipment i introduced in the project

COPi

Efficiencyof

thetechnology supplierreferenceequipment Default values in thereplaced/substituted by the equipment i introduced in methodology
the project
ECRREF3,iRated

electricity

consumptionofthereference Rated/provided by theequipment i replaced by the high efficiency equipment i technology supplier orin the project categorized as measure 3

checkedbytheindication

onthelighting i
ECAi

Capacity of auxiliary electric equipment that is Rated/provided by theinstalled due to the implementation of the high technology supplierefficiency equipment i

ECPJ3,iEFCO2,ELEC

Rated electricity consumption of the high efficiency Rated/provided by theequipment i in the project categorized as measure 3technology supplierCO2 emission factor of the electricity consumed[EFgrid]
Ministry

When captive power generation is not available at theofResources

Naturalandproject site, then the most recent Vietnamese national Environment
grid emission factor [EFgrid] available at the time of (MONRE), Vietnamese
validation is applied as [EFCO2,ELEC] and fixed for the DNA for CDM unlessmonitoring period thereafter.

otherwise instructed by9

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the Joint Committee.
When captive power generation is available at theproject site, then [EFCO2,ELEC] is conservatively selected [EFcaptive]
as below and fixed for the monitoring period thereafter:

CDMapproved

scale

EFCO2,ELEC = min (EFgrid, EFcaptive)

smallmethodology:AMS-I.A

EFcaptive = 0.8 tCO2/MWh**The most recent emission factor available from CDM
approved small scale methodology AMS-I.A at the time ofvalidation is applied.

EFCO2

CO2 emission factor of fossil fuelCountry specific data or
IPCC default value from“2006 IPCC Guidelines
for National Greenhouse
Gas Inventories”.
Lower limit values ofthe default net calorificvalue and CO2 emission
factor are applied.

History of the document
Version01.0Date
14 January 2015

Contents revised
JC3, Annex 4Initial approval.

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