Additional information on calculating the emission factors of Chile for the JCM

Summary
In order to secure net emission reductions in the methodology, the following reference emission factors
will be applied depending on the grid to which a proposed project activity will connect in Chile:··

Table 1 summarises the applied reference emission factors for the PV system(s) in a proposed
project activity, which is directly connected to a regional grid, or connected to a regional grid via
an internal grid not connecting to a captive power generator (PV Case 1).
Table 1 also summarises the applied reference emission factors for the PV system(s) in a proposed
project activity, which is connected to an internal grid connecting to both a regional grid and acaptive power generator (PV Case 2).
Table 1. Reference emission factor PV Case 1 and Case 2
Regional grid nameEmission factor for PV Case 1 Emission factor for PV Case 2(tCO2/MWh)(tCO2/MWh)
SEN (National System)
0.404
0.404
Aysén System
0.176
0.176
Magallanes System
0.361
0.361·A reference emission factor of 0.533 t-CO2/MWh is applied, in the case that the PV system (s) ina proposed project activity is connected to an internal grid only connecting to a captive powergenerator (PV Case 3).

1. Current status of the electricity system in Chile
The Chilean electric power grid is organised into three independent systems 1 (Figure 1): theNational Electricity System (SEN, Sistema Eléctrico Nacional), which is the interconnecting systemof the Central System (SIC, Sistema Interconectado Central) and the Northern System (SING, Sistema
Interconectado Norte Grande) since November 2017, serving the northern and central part of thecountry; and two small systems, Aysén and Magallanes serving the south. All electric power
generation, transmission and distribution activities are implemented by the private sector under thesupervision of the National Energy Commission (CNE, Comisión Nacional de Energría).

1 National Energy Commission (2018) 2018 Energy Statistical Yearbook Chile

1

SING

SEN

SIC

Aysén

Magallanes

Figure 1. The three independent electricity systems in Chile

2

Throughout 2016-2018 (Table 2), the SIC and SING (hereafter referred to as SEN) were the mainelectricity system in Chile, covering more than 99% of the national electricity generation2. The rest ofelectricity is supplied by the Aysén and Magallanes.
Table 2. Annual Power Generation per Electricity System*
Year

Gross Power Generation (TWh)Aysén4
Magallanes5
0.32
0.16
0.33
0.16
0.34
0.17

3

SEN
73.35
74.07
75.43

2016
2017
2018

Total**
73.85
74.58
75.96

* Power generation represents the amount of electricity generated by power plants connected in each grid that istransmitted and distributed for consumer use.
** The electricity generation of Los Lagos system is not included due to its limited amount of power generation.

Seven types of primary energy sources are used for electricity generation: coal, diesel and oil, naturalgas, hydro, biomass, cogeneration, wind, and solar power. The share of electricity generated in 20162018 by each type of primary energy source is shown in Figure 2. The electricity generated from hydro,biomass, cogeneration, wind, solar power plants are deemed as low cost/must run (LCMR) powersources.
2015.520162016.5

2017

73.85

19.77
12.29
2.00

32.46

2016

CoalHydro
Solar

2017.5

2018

74.58

22.17

23.58

12.38
0.90

11.78
0.38

29.41

29.30

2017

Diesel and Fuel OilBiomass
Cogeneration

2018.575.96

2018

Natural Gas
WindTotal (TWh)Figure 2. National Total Power Generation by Type of Fuel (TWh)(Note: the figure is developed based on National Energy Commission (2020).)

2National Energy Commission (2018) 2018 Energy Statistical Yearbook Chile
National Energy Commission (2020) Gross Generation of SEN. (accessed on March 2020) https://www.cne.cl/wpcontent/uploads/2020/03/Generacion_Bruta.xlsx
4National Energy Commission (2020) Gross Generation of Aysén. (accessed on March 2020) https://www.cne.cl/wpcontent/uploads/2019/06/generacion_bruta_Aysxn.xlsx
5National Energy Commission (2020) Gross Generation of Magallanes. (accessed on March 2020) https://www.cne.cl/wpcontent/uploads/2019/06/generacion_bruta_Magallanes.xlsx
33

2. Calculation of reference emission factor of electricity systems
Since the four electricity (grid) systems are independent from each other, reference emission factors arecalculated for each system. In order to identify the reference emission factor of each grid in aconservative and simple manner to secure net emission reductions, the emission factors in thismethodology are established by an operating margin that is calculated using emission factors of power
plants including LCMR resources.
Conservative emission factor of LCMR power plant is set as zero, and conservative emission factors offossil fuel power plants are calculated using the following equation:
Emission factor of fossil fuel power plant [tCO2/MWh]=(Emission factor of fuel source [kgCO2/TJ]*10-3*0.0036[TJ/MWh] /(Heat efficiency (LHV) [%]/100)

Emission factors of coal, gas and diesel combustion are derived from the “IPCC guideline 2006, Volume2, Chapter 2, stationary combustion” as 89,500 kgCO2/TJ, 54,300 kgCO2/TJ and 72,600 kgCO2/TJ(Table 3). The heat efficiencies of coal-fired power plants and gas-fired power plants are applied as 39%
and 53.7% respectively, taking into consideration the technologies being used in currently operational
power plants in Chile (Table 3). With regard to diesel-fired power plants, a heat efficiency of 49%, an
efficiency level which has not yet been achieved by the world’s leading diesel generator, is applied.
Table 3. Constants for calculation of reference emission factorItemValues

Referenceo Colbún S.A. website6,
o General Electric catalogue7

Best heat efficiency of natural gas
power plant (Candelaria, 2005)

53.7%(combined cycle)

Best heat efficiency of coal power
plant (Cochrane and Angamos, 2015)39%(sub-critical)o Environmental Evaluation
Services (SEA) Chile8o UNFCCC, 2015

Best heat efficiency of diesel power
plant

49%

JCM Approved Methodologies:
PW_AM001, MN_AM003, etc.

CO2 emission factor of otherbituminous coal
CO2 emission factor of natural gas
CO2 emission factor of diesel

89,500 kgCO2/TJ54,300 kgCO2/TJ
72,600 kgCO2/TJ

6

IPCC guideline for National
Greenhouse Gas Inventories 2006,
Volume 2, Chapter 2, stationary
combustion9

Colbún S.A. website. (accessed on March 2020) https://www.colbun.cl/centrales/candelaria/
General Electric website.
https://www.ge.com/content/dam/gepower-pgdp/global/en_US/documents/product/gas%20turbines/Fact%20Sheet/2017-prodspecs/GEA32931A%209E-GT13E2_Power_Plants_R2.pdf
8
According to Environmental Impact Assessment of Cochrane Thermoelectric Plant reported to the SEA Chile (accessed March2020) https://seia.sea.gob.cl/archivos/RCA_COCHRANE.pdf, the steam generated is 160 bar and 565°C and is expanded in asteam turbine of the condensation type. According to IEA (2011) Power Generation from Coal, this specification can beclassified as sub-critical. The default efficiency factor for sub-critical technology is 39% according to UNFCCC CDM EB (2015)
Tool to calculate the emission factor for an electricity system.
9IPCC default values at the lower limit of the uncertainty at a 95 per cent confidence interval.
74

Applying the emission factors and plant efficiencies (Table 3), the conservative emission factors arecalculated to be 0.826 tCO2/MWh for coal-fired power plants, 0.364 tCO2/MWh for gas-fired power
plants and 0.533 tCO2/MWh for diesel-fired power plants. The conservative emission factors are applied
for calculating the reference emission factor of each grid in Chile.
Using the conservative emission factors for each power source data and electricity generation including
LCMR resources, operating margins of each grid are obtained using the following equation:

Where:EFRE,j =∑i EGi,j×EFi∑i EGi,j… Equation 1

EFRE,j = The reference emission factor of regional grid j [tCO2/MWh]EFi= Conservative emission factor of power plant type i [tCO2/MWh]EGi,j= Average electricity generated and delivered to each grid from power plant type i
including LCMR resources in grid j during 2016-2018 [MWh]There are three possible cases of solar PV installation in a project activity in terms of its connectivity to
the grid and captive power generator:···a.

PV case 1: the PV system(s) is directly connected to a regional grid, or connected to aregional grid via an internal grid not connecting to a captive power generator.
PV Case 2: the PV system(s) is connected to an internal grid connecting to both a regional
grid and a captive power generator.
PV Case 3: the PV system(s) is only connected to an internal grid connecting to a captivepower generator.

Reference emission factor of National System (SEN, Sistema Eléctrico Nacional)

The SEN system is mainly powered by coal (41%), followed by hydro (29%), then natural gas (16%).
Biomass, diesel and fuel oil, wind, solar, and cogeneration power supply the rest of the power generation.

19.70

22.05

23.46

12.06
0.84

11.46
0.31

32.46

29.41

29.30

2016
CoalHydroSolar

2017
Diesel and Fuel Oil
Biomass
Cogeneration

11.99
1.89

2018
Natural Gas
Wind

Figure 3. Electric power generated by power plants in SEN grid by fuel type (TWh, 2016-2018)(Note: the figure is developed based on National Energy Commission (2020).)5

Applying the conservative emission factors and power generation (Figure 3) to Equation 1, the reference
emission factor to be applied for solar PV in a proposed project activity which is directly connected, orconnected via an internal grid not connecting to a captive power generator (PV Case 1), to the SEN gridis 0.404 tCO2/MWh, as shown in Table 1.
b.

Reference emission factor of Aysén system

The Aysén system is mainly powered by hydropower (62%). Diesel and fuel (33%) and wind power(5%) supply the rest of the power generation.

0.07
0.12

0.12

0.03

0.05

2017

2018

0.08

2016

Diesel and Fuel Oil

HydroWind

Figure 5. Electric power generated by power plants in Aysén grid by fuel type (TWh, 2016-2018)(Note: the figure is developed based on National Energy Commission (2020).)
Applying the conservative emission factors and power generation (Figure 5) to Equation 1, the reference
emission factor to be applied for solar PV in a proposed project activity which is directly connected, orconnected via an internal grid not connecting to a captive power generator (PV Case 1), to the Aysén
grid is 0.176tCO2/MWh, as shown in Table 1.

6c.

Reference emission factor of Magallanes system

The Magallanes system is powered by natural gas (94%), diesel and fuel oil (3%), and wind power (2%).

0.30

0.31

0.32

2016

20172018

Diesel and Fuel Oil

Natural Gas

WindFigure 6. Electric power generated by power plants in Magallanes grid by fuel type (TWh, 2016-2018)(Note: the figure is developed based on National Energy Commission (2020).)

Applying the conservative emission factors and power generation (Figure 6) to Equation 1, the reference
emission factor to be applied for solar PV in a proposed project activity which is directly connected, orconnected via an internal grid not connecting to a captive power generator (PV Case 1), to theMagallanes grid is 0.361 tCO2/MWh, as shown in Table 1.

3. Calculation of reference emission factor of a captive power generator (PV Case 3)
To determine the emission factor of a captive power generator which normally uses a diesel generator ina conservative and simple manner, a heat efficiency of 49%, an efficiency level which has not yet beenachieved by the world’s leading diesel generator, is applied.
The emission factor of diesel power generation is calculated from the heat efficiency using the following
equation:
Emission factor of diesel power plant [tCO2/MWh]= (CO2 emission factor of diesel oil [kgCO2/TJ]*10-3*0.0036[TJ/MWh] / (Heat efficiency(LHV) [%]/100)
Applying the default value of the emission factor of diesel combustion which is 72,600 kgCO2/TJ derived
from “IPCC guideline 2006, Volume 2, Chapter 2, stationary combustion”, together with the heatefficiency of 49%, the emission factor of a captive power generator and the reference emission factor tobe applied for solar PV system(s) which is directly connected, or connected via an internal gridconnecting to only a captive power generator (PV Case 3), is calculated to be 0.533 tCO2/MWh.

7

4. Selection of the reference emission factors in the case a solar PV system is connected to bothgrid and captive power generator (PV Case 2)
In the case the PV system(s) in a proposed project activity is connected to an internal grid connecting toboth a regional grid and a captive power generator (PV Case 2), a comparison was made for eachregional grid, between the emission factor for PV Case 1 (as shown in Table 1) and the emission factorfor PV Case 3 (conservative emission factor of diesel-fired power plants of 0.533 tCO2/MWh). The
lower value resulting from this comparison was then applied as PV Case 2, as shown in Table 1.

8Annexa. Share of fuel source for electric power generated in SEN grid (2016-2018)
Wind
4%

Solar
5%

Biomass
3%
Coal
41%

Hydro
29%

Natural Gas
16%

Diesel andFuel Oil
2%b. Share of fuel source for electric power generated in Aysén grid (2016-2018)
Wind
5%

Diesel andFuel Oil
33%
Hydro
62%

c. Share of fuel source for electric power generated in Magallanes grid (2016-2018)
Wind
3%

Diesel andFuel Oil3%

Natural Gas
94%9