Attachment to GEC’s Demonstration/Feasibility Study Report JFY 2012

1. Input from Monitoring after the Project
Data

Value

Total hours during the monitoring period

Parameter

56 GJ/tPHt

0.161 MWh/t

ECt

201 hours/t

HMPt

Net heat quantity supplied by the Project HOB during the monitoring period
Electricity consumption of the project HOB during the monitoring period

Unit

2. In the planning stage, enter the data to determine the reference and the project emissions
Data

Value

Unit

Parameter

CO2 Emission Factor of grid
1.103 tCO2/MWh*Needed parameters in case that Electricity consumption of the project HOB is not monitored
Required electric performance maximum of the Project HOB
800 W

EFCO2,grid

3. CO2 Emission Reduction
CO2 Emission Reduction

EMPPJ HOB

Unit
1 tCO2/t

The details of this investigation are shown on the following page.
MRV Demonstration Study using a model project
Upgrading and Installation of High-Efficiency Heat Only Boilers
year FY 2012
title

The results of real monitoring regarding the "Net Heat Quantity" are "56 (GJ/time).
The time is "201 (hours/time)".

MM 1-1 calculation sheet (Mongolia 79 school HOB)_Final_Add.xls(4)MM1-1 input

MRV Demonstration Study (DS) using a Model Project 2012
Final Report「Upgrading and Installation of High-Efficiency Heat Only Boilers(HOBs)」（implemented by SUURI-KEIKAKU CO., LTD.）
Study Partners

Climate Experts Corp.
Japan Quality Organization (JQA)
JFE Techno Research Co., Ltd.
Osumi Co., Ltd.
EEC (Demonstration Body of Project Participants of Host Country)
NREC (National Renewable Energy Centre) (Demonstration Verification Bodyof Host Country)
Mongolia

LocationofProject/Activity
Categoryof Energy Efficiency Improvement
Project/Activity
Descriptionof The Project/Activity is to upgrade inefficient boilers to the latest efficientboilers or to newly install the latest boilers. The target facility is a boiler
Project/Activity

Eligibility Criteria

Reference
Scenario
andProject/Activity
Boundary

Calculation

dedicated to heat supply (HOB) with a capacity of "0.10 to 3.15 MW" basedon the Mongolian standard (MNS5043). The improved boilers consume lesscoal for HOBs and, as a result, reduce the emissions of greenhouse gases(GHG).
Case 1: The project activity is to-switch from old type coal HOBs (of low energy efficiency) to new type ones(of high energy efficiency) in existing Heat Water Supply Systems in Districts
and/or-to introduce new type ones in association with new construction of Heat
Water Supply Systems in Districts.
(Upgrading or installation of HOBs for steam supply do not fall into the project/
activity)
Case 2: The HOB to be targeted for the Project/Activity is defined as a boiler
used for heat supply which has capacity of 0.10MW – 3.15MW.
Case 3: Objective HOBs are limited to coal-fired boilers for hot water supply.
Case 4: The HOBs to be introduced shall have the performance specifications
including the boiler efficiency higher than 75% as the manufacturer’s catalog
value.
Case 5: The HOBs to be introduced shall have a dust collector. In case of a
HOB which dust collector is not set up, dust collector shall be additionallyinstalled with the installed HOB for pollution-abatement measure.
In the reference scenario, the low-energy-efficiency old HOBs will be
continuously used even after upgrading if no foreign aid can be obtained and,in the case of the construction of new systems, the same-type boilers will be
introduced as those for the upgrading if no foreign aid can be obtained. The
same benchmark value for the boiler efficiency in the reference scenario will
be adopted for both the upgrading and the new installation.
In the reference scenario, the Project/Activity Boundary is the CO2 emissions
concerning the coal consumption at the boilers. In the Project, the Boundaryis the CO2 emissions concerning the coal consumption and electricity
consumption at the boiler. The other GHGs and their emission sources are
excluded from the items to be calculated due to simplification, to secure theconservativeness and their slight amounts.
The calculation method option is:＜1＞

Method Options

Default Values set
in Methodology

Monitoring Method

GHG emission reductions amount=(1/boiler efficiency of reference
boiler-1/boiler efficiency of project boiler) × heat amount supplied tobuildings × emission factor,
and the Monitoring Methods for the heat amount supplied to buildings areclassified as follows:
Monitoring Method 1-1: Heat meter
Directly measure the heat amount supplied to the buildings using a heatmeter.
Monitoring Method 1-2: Calculation using a flow meter and thermometer.
Obtain the heat amount supplied to the buildings by calculation using themeasurements of the temperature of the heat water supplied to the project
HOB (inlet), the temperature of the circulating water supplied by the project
HOB (outlet), and the Volume flow rate of the circulating water of the project
HOB.
Monitoring Method 2-1: Preliminary flow measurement
Estimate the heat amounts supplied to the buildings using the temperature of
the heat water supplied to the project HOB (inlet) and the temperature of thecirculating water supplied by the project HOB (outlet), which are measured on
the pipe surfaces and the flow, which is the minimal value of those measured
in advance for one week.
Monitoring Method 2-2: The rated pump capacity
Estimate the heat amount supplied to the buildings using the temperature of
the hot water entering and the temperature of the hot water exiting, which aremeasured on the pipe surfaces and the flow, which is the pump capacity.
Monitoring Method 3-1: Specific value of the building specific heat loss
coefficient.
Estimate the heat amount supplied to the buildings using the building volume,the outdoor temperature, and the indoor temperature. The building specificheat loss coefficient is a specific value for the project.
Monitoring Method 3-2: The heat loss coefficient for the building in the supply
destination is default value.
This option is almost the same as Monitoring Method 3-1 and the building
specific heat loss coefficient is the default value.
【Default Value】
Project Boiler Efficiency: 67% (set based on the study by actual
measurement)
Reference Scenario Boiler Efficiency: 50% (the result of the study by actual
measurement is 44%. Since the reference scenario should become moreconservative than BaU scenario, the boiler efficiency of the reference
scenario is set up to 50%. )CO2 emission factor: 0.096 [tCO2/GJ]: according to the averages value of 17
sampling surveys based on laboratory analysis of the consumed coal.
Heat Loss Coefficient for the Building in the supply destination: 0.20: Thisvalue is conservatively set based on the values of 79 schools with high heatinsulating effects.
Discount Rate obtained When the “Heat Loss Coefficient for the Building inthe supply destination” is used: 20%. This value was set based on the study
by actual measurement so that ore than 95% of the estimated value should
be more conservative than actual values.
【Project-Specific Values】
Heat Loss Coefficient for the Building in the supply destination: Design valueof each building
Pump Capacity: Name plate of the pump
Required electric performance maximum of the project HOB according to the
Manufacturer’s manual value
Monitoring activity was implemented. The following two options will be
described.
Monitoring Method 1-1:
Directly measure the heat amount supplied to the buildings using the heatmeter. The monitoring parameter was the heat amount supplied and it was＜2＞

Result
ofMonitoring Activity

GHG
Emissionsand its Reductions

Method and Resultof Verification

Environmental
Impacts
Promotion
Japanese
Technology
Sustainable
Development
Host Countryofincontinuously measured and recorded in every hour.
Monitoring Method 3-1:
Estimate the heat amount supplied to the buildings using the building volume,the outdoor temperature, and the indoor temperature.
Also, enableacquisition of the specific value of the building specific heat loss coefficient.
The outdoor temperature and the indoor temperature are monitored, andcontinuously measured and recorded in every hour.
The two options according to which the monitoring activity was implemented
will be described.
For Monitoring Method 1-1, a monitoring plan was formulated, monitoring was
implemented, and a monitoring report was produced according to themonitoring plan.
The data collection and the data analysis for making default values wererequired in the Monitoring method 3-1. Then, the Monitoring Plan wasreconstructed, and the Monitoring Report was made according to theMonitoring Plan.
Monitoring method 1-1: 1 [tCO2/t] (t=201 [hour])
Monitoring method 3-1: 2 [tCO2/t] (t=443[hour])Since the monitoring time is very short and the values are rounded up androunded down for the purpose of the conservativeness, the values of GHG
Emission Reduction are still smaller.
Based on the annual operating time of the HOB, which is 5000 to 6000 hours,
the annual emission reductions are estimated to be about 100 [tCO2/y].
For Monitoring Method 1-1, verification was implemented on the monitoring
report and a verification report was produced. As a result, the MRV activity
was practically verified in Mongolia.
Verification activities were difficult for the monitoring method 3-1. However,the default values of the discount rate were set up from the actual
measurement, and the verification activities were limited only with themonitoring data of thermometers. As a result, the verification activities were
implemented.
The coal consumption was also reduced through the Project/Activity and,
therefore, no adverse influence on the environment is especially observed.
The policies are advanced including the one to consolidate the HOBs and thepossibility of introducing Japanese technology in the future is getting higher.
The effect of reducing air pollution on human health is estimated tocorrespond to US$ 12 million. The policies are advanced including the one
to consolidate the HOBs and the Project/Activity match the development
policy and the development strategy of the host country.

＜3＞

MRV DS Report in 2012

Study Title: MRV Demonstration Study using a Model Project“Upgrading and Installation of High-Efficiency Heat Only Boilers(HOBs)”
Study Entity: SUURI-KEIKAKU CO.,LTD.
1．Study Implementation Scheme Climate Experts Ltd.: Production of MRV methodology, support for producing the monitoring

implementation guidelines, the monitoring plan, the monitoring report, the verification report, etc.,
for the verification.
JAPAN QUALITY ASSURANCE ORGANIZATION (JQA): Support for constructing the system
for MRV, check on the validity of draft verification criterion, and support for constructing thesystem for the on-site verification institutions.

 JFE Techno-Research Corporation.: On-site measurement for obtaining default values,
and development of technical capacity of the monitoring for implementing JCM/BOCM.
 OSUMI Co., Ltd.: Data analysis for obtaining default values such as the boiler efficiency,
the completeness of the environment, and research for facilitating introduction ofJapanese technology.
 Project Participants (Monitoring Implementing Institution of host country) (EEC):
Production of the monitoring plan, implementation of monitoring according to themonitoring plan, and production of the monitoring report.
 Third Party Verification Institution of host country (NREC; National Renewable Energy
Center): Implementation of the verification, production of the verification report, andresearch on the system of standards for weighing and measurement of Mongolia.
2．Overview of Project/Activity(1) Description of Project/Activity Contents:
The host country and the area for the implementation are Mongolia and Ulaanbaatar
City. The Project/Activity is to upgrade the boilers with relatively low boiler efficiency tothe latest boilers with high boiler efficiency or installation of the latest boilers. The
requirement facility is a boiler dedicated to heat supply (heat only boiler: HOB) and "HOB" isdefined as a boiler for heating with a heating capacity of "0.10 to 3.15 MW" according to the
Mongolian standard (MNS5043).
The HOBs in Ulaanbaatar City annually operate from October 1st to May 1st.
However, the HOBs may start operating in September depending on the outdoor temperature.
The owner of the Project/Activity is the managers of the boilers who are the
ULAANBAATAR CITY HEATING STOVES REGULATORY AUTHORITY and the schools
in the city.
The Project/Activity is an activity to upgrade the boilers with relatively low boiler
efficiency to the latest boilers with high boiler efficiency utilizing the two-step loan of JICA,
which aims at promoting small- and medium-sized businesses and conservation of theenvironment. The improvement of the boiler efficiency will reduce the coal consumption by
the HOBs and, as a result, will reduce the emissions of the greenhouse gas (GHG).
(2) Situations of Host Country:
On December 6, 2012, Mr. Nagahama, the Minister of Environment, Japan, and Ms.
Oyun, the Minister of Environment and Green Development, Mongolia, had a meeting in
Doha in Qatar and, during the term of the Conference of the Parties 18th (COP18) of the UN
Framework Convention on Climate Change (UNFCCC), had a meeting on the Environmental＜4＞

MRV DS Report in 2012
Cooperation and Climate Change Bilateral Off-Set Credit Mechanism and signed a "Joint
Statement by Minister for the Environment of Japan and Minister for Environment and Green
Development of Mongolia on Environmental Cooperation, Climate Change and the Joint
Crediting Mechanism”. On January 8, 2013, in Ulaanbaatar in Mongolia, Mr. Takenori
Shimizu, Japanese Ambassador Extraordinary and plenipotentiary in Mongolia, and Ms. Oyun
Sanjaasuren, the Mongolian Minister of Environment and Green Develop, signed a Japan andMongolia bilateral document concerning a Joint Crediting Mechanism (hereinafter referred toas the JCM/BOCM). Thereby, the JCM/BOCM was officially started.
The relevant authority of HOBs was unclear at the start of this MRV-DS. However,when a visiting survey was made to the Heat Technology Section of the Energy Ministry, acomment was obtained stating that the section had started to supervise HOBs. Therefore,various policies and countermeasures are likely to be advanced from now on.
In the Nationally Appropriate Mitigation Actions (NAMA) of Mongolia, thefollowing action is planned.
Energy Supply: Improvement of Efficiency of Heating Boilers:
Improvement of the efficiency of the existing heating boilers and installation of new highly
energy-efficient boilers
Therefore, this Project/Activity is in line with the climate change policy for this field.
The high-efficiency boilers are introduced through the two-step loan, etc., and the
Project/Activity is in line with Mongolian policy.
The HOBs at each aimag capital city in Mongolia have been consolidated and thecapacities of these HOBs have been increased. A plan has been formulated according towhich a large-scale heat station of a 300-MW class will be constructed in the eastern part of
Ulaanbaatar City. As above, the project is advanced to upgrade small-scale HOBs, which
adversely influence the air environment to the new large-scale HOBs, which have highenvironmental performance.
(3) Complementarity of the CDM:
The coal consumption of HOBs in Ulaanbaatar City in Mongolia is not generally
measured. Measurement is not easy to conduct and even the fuel expense slip issued when thecoal is purchased is unlikely to be useful as evidence. There are no actual measurements ofthe temperature of the heat water supplied to the project HOB (inlet), the temperature of thecirculating water supplied by the project HOB (outlet), and the Volume flow rate of thecirculating water of the project HOB. Also, no actual measurements of the heat supplied by
the HOBs are implemented.
AM0044 is one methodology of the CDM in which the HOBs in Mongolia are
assumed. However, according to this methodology, not only the monitoring of the coalconsumptions and the amounts of heat supplied after the implementation of the project but
also the past data for these items are required. Therefore, this methodology cannot
substantially be applied to Mongolia and is not a methodology that reflects the actual status.
The Project/Activity is for saving energy and its additionality is highly likely to berequired in CDM. Basically, the coal is inexpensive and, therefore, the economic merit due
to the saving of coal is poor and the initial cost of the high-efficiency boiler is high. For
these reasons, some additionality can be assumed. However, proving the additionality is
considered to be difficult because sufficient evidences cannot be obtained for the purchase of
the coal as above and due to other reasons.
According to the Project Participants (EEC), and the third party verification
institution (NREC), in CDM, the transaction fee is the bottleneck and it is getting difficult to＜5＞

MRV DS Report in 2012
implement feasible projects in Mongolia for this reason. For this reason, it is necessary for
JCM/BOCM to construct a scheme that is in line with the status of Mongolia. For CDM, thescheme was determined under the UN and it was difficult to match the scheme with the status
of Mongolia. Therefore, Mongolia needs to match itself to the scheme of CDM. This is also
one of the causes of the stagnation of the implementation of the CDM in Mongolia.
From the above, this Project/Activity should be implemented under JCM/BOCM
expected to have a scheme in line with the status of Mongolia. As a result, it is judged that
this Project/Activity has the complementary for CDM.

3. Contents of the Study(1) Issues to be Addressed in the Study:
The following items were not grasped before the start of the demonstration study andneed to be clarified in the demonstration study.
 For the HOBs in Mongolia, the coal consumptions and the amounts of heat supplied are
not monitored in general. Therefore, it is necessary to implement the monitoring
activity of some items to grasp the amounts of their operation to calculate the GHG
emission reductions.
 From the viewpoint of energy management in the heat supply project, grasping the boiler
efficiency is the basis for evaluating a boiler. However, no approach has been
established that is authorized in Mongolia for calculating the boiler efficiency of HOBs.
 In Mongolia, except hydroelectric power generation for which monitoring and evidence
acquisition are easy, even a project registered with the UN has no actual CERs and only
slight CERs of CDM has actually been issued. Therefore, the host country has poor
experience in monitoring based on verification for creation of emission credits.
Therefore, implementation of capacity building is necessary for the monitoring plan andthe monitoring report.
 For the MRV demonstration study, verification conducted by a third party verification
institution is indispensable. However, Mongolia has no verification institution for DOE
of CDM and ISO and, therefore, it is necessary to implement the demonstration study
implementing capacity building for local organizations that have no experience ofverification.
The following problems were clarified at and after the start of the demonstration study.
 At some of the HOBs, the boilers were upgraded. Therefore, the reference boilers whichwere assumed to be the actual measurement target needed to have been reselected.
 The Mongolian administration was renewed after the national election and it wasdetermined that the governmental agencies were to be reorganized. At the same time,revision was expected to be facilitated for the laws concerning the air pollution related to
HOBs and the legislative bills concerning energy saving.
 The business agent of the heat meter did not know anything about the data collection
system of the data logger of the heat meter and, therefore, EEC had to create the datacollection system from scratch.
 There are some heat meters which are produced by factory approval in Mongolia, while
the business agency, etc., of the heat meter do not grasp the information on the official
verification of each heat meter and, therefore, collection of evidence was difficult for thedemonstration study.
 It is difficult in Mongolia to obtain the thermometers with the official verification andwith a data-logger function and, therefore, it is difficult to select monitoring devices forthe outdoor temperature and indoor temperature.

＜6＞

MRV DS Report in 2012
 Although the measurement law is being improved in Mongolia, the connection tointernational traceability is not satisfactory. Therefore, it is not easy to get somemonitoring equipment for which traceability is ensured.
(2) Process to Solve the Issues in the Study:
In JCM/BOCM, the local project participants (PPs) who play the main role in
implementing the emission reductions should independently implement the monitoring andthe verification institution should concentrate on playing its own role in giving official
endorsement to the monitoring results as a third party. Based on the issues of CDM, thedevelopment of "the Monitoring Plan based on the Verification" is most important and thiswas demonstrated in this "MRV-DS”.
In the first field survey, the following items were implemented: selection of themonitoring implementing institution (EEC) and the verification implementation institution(National Renewable Energy Centre: NREC); arrangement of the HOBs to be studied; etc.
In the second field survey, the following items were implemented: introduction of
JCM/BOCM to the monitoring implementing institution and the verification implementing
institution; support for the production of the overview of the MRV activity and the monitoring
plan; etc. As a result, a monitoring plan was formulated whose level was higher than that of
the monitoring plan formulated by CDM.
In the third field study, the following items were implemented: responses to thecommittee of the host country; preparation for installing the heat meter; etc.
In the fourth field survey, the following items were implemented: support for
implementation of validation of the monitoring plan; support for implementation of themonitoring; the study by actual measurement of the boiler efficiency in autumn; etc. The
validation did not need so much time because a precise monitoring plan had been formulated.
In the fifth field study, visiting researches were made on the boiler manufacturers andthe boiler owners and, thereby, efforts were made to collect information and to clarify theactual status of the operation of the HOBs in order to set the reference scenario.
In the sixth field survey, the following items were implemented: support for themonitoring activity, support for production of the monitoring report in line with themonitoring plan, support for the implementation of the verification on the monitoring report,
support for the production of the verification report, and the research of the boiler efficiency
by actual measurement. It demonstrated that the verification should be performed quickly,
within several days, because the monitoring report and the verification report in line with theprecise monitoring plan had to be produced.
In the seventh field survey, about the indirect measurement method, after setting the
fixing default values, such as a discount rate, the verification activities of NREC to theMonitoring Reports of the indirect measurement method were supported.
In order to issue high quality credit of JCM/BOCM, it is necessary to monitor the
Project/Activity. It turned out for the HOBs in Mongolia that monitoring the amount of heat
supplied using the heat meter was the most precise calculation approach. For the boiler
efficiency: a spring scale calibrated in Japan was brought to the site; the entering heat amountand the exiting heat amount of the boiler were measured using "the heat meter" or "thethermocouple and the ultrasonic flow meter"; and, thereby, the boiler efficiency was
researched by actual measurement. Capacity building was implemented for EEC and NREC
for two weeks in the second demonstration study, for about one week in the fourthdemonstration study, and for a little longer than two weeks in the sixth demonstration study
and support was implemented for formulating the monitoring plan and producing themonitoring report and the verification report.
In the summer of 2012, the upgrading of the HOBs by foreign donors was mostly＜7＞

MRV DS Report in 2012
implemented.
Therefore, Ulaanbaatar City was scanned and the arrangement was
implemented for the HOBs for which the research by actual measurement was to be
implemented. For the issuance of high quality credit based on the heat meter, it isindispensable to construct a data collection system for the data logger, to qualify the heatmeter and, to collect the evidence for it. Japanese Team supported these activities. As aresult, the following outcomes were obtained: construction of the every minute value datacollection system, which was the first one in Mongolia; construction of the data collection
system using the portable telephone system (remote data collection system), which was thefirst one in Mongolia; implementation of the full-scale verification activity by NREC, which
was the first one in Mongolia; organization of the conference about ISO14065 in the national
government, which was the first one in Mongolia; close investigation on the metrologicalsystem; and construction of the approach for obtaining evidence on metrology.
4. Results of MRV Demonstration Study(1) GHG Emission Reduction Effects by the Implementation of Project/Activity:
The Project/Activity as the target of the MRV demonstration study is to upgrade
boilers whose boiler efficiency is relatively low to boilers whose boiler efficiency is relatively
high. The improvement of the boiler efficiency will result in the emission reductions ofgreen house gas (GHG) because coal consumption will be reduced.
The MRV methodology is constructed based on the following background.
 The HOBs in Mongolia are relatively small coal-fired boilers that supply hot water.
 The fuel consumption is monitored in general for boilers that use liquid fuel or gas fuel.
On the other hand, for boilers that use solid fuel such as coal, the characteristics of thefuel such as coal significantly variability and it is difficult to accurately grasp its amounts.
Therefore, it is difficult to monitor the fuel consumption. The consumption can often be
more accurately grasped using the amount of heat supplied.
 For the HOBs in Mongolia, measurements of coal consumption are not easy and even thefuel expense slip for purchasing the coal is unlikely to be useful as evidence. Therefore,
a calculation option is necessary to calculate the emission reductions of GHG bymeasuring only the amounts of heat supplied from the project boiler.
 For the HOBs in Mongolia, the flow of hot water is not measured in general and the hotwater temperature and the supplied water temperature are only measured by analog water
thermometers for the operation but are also not monitored. A method will be consideredthat can calculate the emission reductions of GHG even in this situation.
 For the HOBs in Mongolia, the coal consumption and the amounts of heat supplied are
not monitored in general and, therefore, the development of default values should be
implemented not only for the project boilers but also for the reference boilers.
 To avoid individual differences in interpreting the monitoring approach, a monitoring
implementation guideline, a general monitoring guideline, and a monitoring plan for eachproject case, should be developed and these guidelines and plans should be reflected in
the MRV methodology.
(2) Eligibility Criteria for MRV Methodology Application:
Based on the field surveys, such as the visiting survey for the Ministry of Energy, thevisiting survey of HOB makers, the understanding of actual HOB operation conditions, theEligibility Criteria are as follows;
Case 1The project activity is to-switch from old type coal HOBs (of low energy efficiency) to new type ones (ofhigh energy efficiency) in existing Heat Water Supply Systems in Districts and/or-to introduce new type ones in association with new construction of Heat Water＜8＞

MRV DS Report in 2012

Case 2
Case 3
Case 4
Case 5

Supply Systems in Districts.
(Upgrading or installation of HOBs for steam supply do not fall into the project/
activity)
The HOB to be targeted for the Project/Activity is defined as a boiler used for heat
supply which has capacity of 0.10MW – 3.15MW.
Objective HOBs are limited to coal-fired boilers for hot water supply.
The HOBs to be introduced shall have the performance specifications including
the boiler efficiency higher than 75% as the manufacturer’s catalog value.
The HOBs to be introduced shall have a dust collector. In case of a HOB which
dust collector is not set up, dust collector shall be additionally installed with the
installed HOB for pollution-abatement measure.

(3) Calculation Method Options:
There is only one calculation option and its approach for monitoring the amount ofheat supplied to buildings is different.
Employedtechnology oftheproject
HOB

How to identify net
heat
quantity
supplied by the
project HOB?

Installed
HOBs shallmeet thetechnical
standard its
boilerefficiency ishigher than
75% in the
maker’scatalog value,with dust
collector.

Actuallymeasuredaccording toexhaustive
measuring
methodMeasuring
method /Estimation
method of net
heat quantity

Monitoring
MethodActually measured
by heat meter(Package system)

Monitoring
Method1-1

Actually measured
by temperature
sensors and a flow
meter
(Non-package
system)Monitoring
Method1-2

Identification methodof volume flow rate of
circulating water
Estimatedby simple
methodDirectly estimatedby non- exhaustive
simple measuringmethod of net heat
quantity

Indirectly
estimated fromheat loss for thebuilding in the
supply destination

By previous
measurement
Based on the rating
capacity of theemployed pomp

Monitoring
Method2-1

Monitoring
Method2-2

Identification method ofheat loss co-efficient forthe building
By characteristic
value

Monitoring
Method3-1

By default value

Monitoring
Method3-2

Exhaustive measuring method of net heat quantity: Method which measures directly net
heat quantities of circulating water at inlet and outlet points of the water piping of the HOB,
inserting temperature sensors into inside of the water piping. For measuring of water flow rate,
the exclusive use water pipe which inside cross section area/or caliber is stereotyped in＜9＞MRV DS Report in 2012
advance is applied. Pipe laying work is required for setting the measuring equipment.
Non-exhaustive simple measuring method of net heat quantity: Method which measurescirculating water temperatures at inlet and outlet points of the water piping of the HOB fromoutside of the water piping of the HOB, lagging the water piping with heat insulation material
to help minimize measuring error. Pipe laying work is not required for setting the measuring
equipment.
(4) Necessary Data for Calculation:
The information and data necessary for calculating the GHG emission reductions can
be classified into default values, project-specific values, and items to be monitored, and can
be clarified as follows. The default values are determined in the methodology and thesevalues are determined at the responsibility of the scheme owner. The project-specific values
are the information and data having been set (ex-ante setting) after measuring and checking
these values once prior to the implementation of the Project/Activity. The items to bemonitored will be monitored after the project has been implemented.
Information and
Data
Net
heat
quantity
supplied by the
Project HOB
Temperature of
the circulatingwater by the
project
HOB(outlet)Monitoring (M)/Project-Specific Value
Setting (S)/Default Value Setting (D)M (Measurement Op.1-1)

M (Measurement Op.1-2)
M (Measurement Op.2-1)
M (Measurement Op.2-2)

Temperature of
heat
water
supplied to theproject
HOB(inlet)M (Measurement Op.1-2)
M (Measurement Op.2-1)
M (Measurement Op.2-2)

Volumeflow
rateof
circulating waterof the project
HOB

M (Measurement Op.1-2)
S (Measurement Op.2-1)
S (Measurement Op.2-2)

BoilerEfficiency

Required

D (Measurement Op.1-1)
D (Measurement Op.1-2)
D (Measurement Op.2-1)
D (Measurement Op.2-2)
D (Measurement Op.3-1)
D (Measurement Op.3-2)

S (Measurement Op.1-1)

Status of Improvement in
the Project and Activity

Remarks

No heat meter is introduced
into most of the HOBs.

Introduction of heat meters thatcomply with the Mongolian
standard.

Many of the HOBs areoperated checking the hotwater temperature (analog
value) while no data isstored,
etc.,
and
no
monitoring is implemented.

The monitoring frequency is
continuous measurement and therecording frequency is assumed
to be hourly recording.
The amount of heat is calculated
from the hot water temperature,
the supplied water temperature,and the water flow.
The monitoring frequency is
continuous measurement and therecording frequency is assumed
to be hourly recording.
The amount of heat is calculated
from the hot water temperature,
the supplied water temperature,and the water flow.
The monitoring frequency is
continuous measurement and therecording frequency is assumed
to be hourly recording.
The amount of heat is calculated
from the hot water temperature,
the supplied water temperature,and the water flow.
The ratio of the amount of heatgenerated to the amount of heatof the coal put in.

Not monitored at most of
the HOBs.

Not monitored at most of
the HOBs.
When the pump capacity istaken as the water flow, thecapacity is grasped ex-antefrom the name plate, etc., of
the pump
Althoughthemanufacturer’s
manualvalues are available, theresults of actual researches
are scarce and, therefore,
researchbyactualmeasurementwasimplemented
in
this
MRV-DS.
This value is grasped＜10＞

The maker’s catalog values

MRV DS Report in 2012
electric
performancemaximum of the
project HOB

S (Measurement Op.1-2)
S (Measurement Op.2-1)
S (Measurement Op.2-2)
S (Measurement Op.3-1)
S (Measurement Op.3-2)

Total
hours
duringthemonitoring
period t

M (Measurement Op.1-1)
M (Measurement Op.1-2)
M (Measurement Op.2-1)
M (Measurement Op.2-2)
M (Measurement Op.3-1)
M (Measurement Op.3-2)

Building
Volume for the
supplydestination

S (Measurement Op.3-1)
S (Measurement Op.3-2)

Average Indoor
Air Temperature

M (Measurement Op.3-1)
M (Measurement Op.3-2)

OutdoorAir
Temperature

M (Measurement Op.3-1)
M (Measurement Op.3-2)

Heat
loss
co-efficient forthe building

S (Measurement Op.3-1)
D (Measurement Op.3-2)

CO2
Emission Factor

D (Measurement Op.1-1)
D (Measurement Op.1-2)
D (Measurement Op.2-1)
D (Measurement Op.2-2)
D (Measurement Op.3-1)
D (Measurement Op.3-2)

ex-antefromthemanufacturer’s
manualvalue.
The status of
improvement is checked bya visiting researcher to theboiler manufacturers in thisMRV-DS.
In 79th school (Project site),the boiler man has beenreporting the operation
status of the boiler using ahandwritten note.
In an ordinary manner, thebuilding volume of the heat
supplydestinationisgrasped ex-ante using thebuilding passport.
In general, the building
volume is often not grasped.
The indoor temperature is
not grasped for each of themany buildings.
The HOBs are operated
based on the hot watertemperature and no outdoor
temperature is monitored.

The amount of heat requiredfor buildings is grasped as adesign value in Mongolia.
This is a value calculated
from the building volume,thedesignoutdoortemperature, and the designindoor temperature.
The coal analysis was
implemented on the coalused for the HOBs in the
MRV-DS and the emission
factor was obtained.

Aggregated daily, weekly, and/or
monthly report during monitoring
periodIn the MRV-DS, the building
volume was measured using thelaser height indicator for each of
the buildings whose volumes are
unknown.

In general, modal operation isconducted based on the outdoor
temperature.
However, thefeeling of the boiler operators or
the value from the weather
forecast is actually used as theoutdoor temperature and nomonitoring is implemented.
It is often difficult to grasp theamount of heat required for old
buildings.

The emission factor was that ofaverage of 17 sample of thisMRV-DS.

(5) Default Value(s) Set in MRV Methodology:
In the demonstration study, the items for which default values were set, and theirvalues are as follows:
Item
Boiler Efficiency ofProject Boiler

Value
67%
(Average values)

Boiler Efficiency ofReference Boiler

50%(Setting value)

Content of Demonstration study
Research by actual measurement was implemented at fiveproject boilers and three reference boilers.
Heat Input (the total supply heating value): The amount of coal
put in was measured using a spring scale. The amount ofheat generated was measured in the coal analysis.
Heat Output (the total absorption heating value of outlet hot
water): The amount of heat supplied was measured by the heatmeter, or the thermocouple and the ultrasonic flow meter.
From the above, the boiler efficiency was evaluated using the＜11＞

MRV DS Report in 2012

CO2 emission factor

0. 096 (tCO2/GJ)

equation: "the Boiler Efficiency=Heat Output / Heat Input.”
Although the average value of Reference Boiler is 44%, thesetting value is 50% because Reference Scenario is not equal
to the BaU (Business as Usual) (because of conservativenessand Global net emission reduction).
From the results of the coal analysis on 17 coal samples thatwere used for the HOBs, the average value of the emission
factor was 0.0957[tCO2/GJ].

The items for which the project-specific values are set in the demonstration study,
and their values are as follows:Item
q0 Value

Value
0.20

Discount Rate

20%

Project Boiler
Electric
Consumption
Building
VolumePump
Capacity

The manufacturer’s
manual value is
used.
Value Specific to
Each Building
Value Specific to
Each HOB

Content of Demonstration study
Each building has a design value. When the design value
was not available, 0.20 (cal/hour m3 degree C) was used.
Because the actual heat amount was not measured but wasestimated, it was necessary to adopt a conservative value.
The manufacturer’s manual of each boiler model wascollected. The research was implemented by interviewing
the boiler business agents and the boiler manufacturers.
This value was grasped using the building passport or the
research by measurement.
This value was grasped from the name plate.

(6) Setting of Reference Scenario and Project/Activity Boundary:
In Mongolia, the old HOBs (with low energy efficiency) are continuously used
except the case where the HOBs are upgraded by the aid from foreign donors. These HOBs
are very inexpensive and are easy to handle for the boiler operators. Therefore, the current
status and the current performance will continue. Therefore, during the project term, theboiler efficiency of the HOBs before implementing the improvement of the performance ofthe existing HOBs will continuously maintain the same level. The boiler efficiency in thereference scenario obtained after the new HOBs are installed will be the same as the boiler
efficiency obtained after the upgrading of the HOBs.
Therefore, the same benchmark value is set for the boiler efficiency in the reference
scenario for both the upgrading and the new installation.
The following is the boundary (the kind of GHG to be calculated and its emission
sources) of the Project/Activity.
 The CO2 emissions due to the coal consumption for supply heat The CO2 emissions due to the electric power consumption by the project HOB
Items other than the above will be excluded from the calculation for simplification tosecure conservativeness or due to their extremely small amount.
(7) Monitoring Methods:
In JCM/BOCM, it is necessary based on the issues of CDM to achieve the issuanceof credit through one path without going back and forth among the verification process steps
in order to shorten the term necessary for the third party verification institution. To do so, it
is necessary: to regard the MRV not as independent processes such as M (measurement) alone,
R (reporting) alone, and V (verification) alone but as one integrated process involving
measurement, reporting, and verification; and to formulate the M (monitoring plan), which isthe first process taking into consideration the V (verification), which is the final process. To
do this, it is essential to formulate a detailed monitoring plan as shown in the attachedreference.

＜12＞

MRV DS Report in 2012
The following is the Monitoring Method 1-1.

Around the boiler outlet of thewater supply pipe
Around the boiler inlet of thewater supply pipe
Around the boiler inlet oroutlet of the water supply pipe

Measurement
Frequency
Continuous
measurement
Continuous
measurement
Continuous
measurement
Continuous
measurement---

Every hour check

Monitored Item
Net heat quantity supplied by the
Project HOB
Temperature of the circulatingwater by the project HOB (outlet)
Temperature of the heat water tothe project HOB (inlet)
Volume flow rate of circulatingwater of the project HOB
Total hours during the monitoring
periodMeasurement Position---

RecordingFrequency
One hourOne hourOne hourOne hourdailyThis monitoring method employs a heat meter that complies with the Mongolian
standard and, therefore, this approach can be implemented.
In the MRV-model
demonstration study, the method could be implemented.
The EEC constructed the data collection system, which was the first one in Mongolia,
for every minute values from the heat meter. Additionally, the EEC constructed the datacollection system, which also the first one in Mongolia with using the portable telephonesystem (remote data collection system). As in the above, the monitoring method ensureshigh quality in "Upgrading and Installation of High-Efficient Heat Only Boilers for Heat
Water Supply Systems in Districts" in Mongolia and which is most suitable for the issuance ofcredit for the emission reductions of GHG.
On the other hand, the Monitoring Method 3-1 is as follows:
Monitored Item

Measurement Position

Building Volume

Items to be examined

Outdoor Air Temperature

Position in the breezy shade

Average Indoor Air Temperature

Plural positions in the building

Total hours during the monitoring
period---＜13＞

Measurement
Frequency
Annually
Continuous
measurement
Continuous
measurement

RecordingFrequency
Annually

Every hour checkdaily

One hourOne hourMRV DS Report in 2012

T2: Ambient
temperature

V: Building
volumeT1: Indoor
temperature

Dustcollector

SupplyDestination

This monitoring method does not comply with the Mongolian standard and only
gives the estimated values. A calculation approach feasible in Mongolia was constructed
and this approach was also feasible in the MRV-model demonstration study. A thermometer
was used that has a data logger attached thereto and, therefore, "Ondo-tori" was used (which
is a product of T&D Corporation whose URL is: http://www.tandd.co.jp/). From now on, it
is necessary in Mongolia to construct a similar temperature data collection system that
employs a thermometer that is qualified in Mongolia.
(8) Amounts of GHG Emissions and GHG its Reductions:
The amounts of GHG emission at the time when the Project/Activity was
implemented was obtained using the "project coal consumptions × emission factor". The
project coal consumptions can be obtained using the "amounts of heat supplied to the building/ boiler efficiency of the project boiler". The amounts of emissions of reference scenario are
obtained using the "reference coal consumption × emission factor ". "The amounts of heat
supplied to the building" are common (equal) to the project and the reference scenario.
Therefore, the reference coal consumptions can be obtained using "the amount of heat
supplied to the building / the boiler efficiency of the reference boiler" from the boiler
efficiency of the reference boiler and the amounts of heat supplied to the building of the
project.
From the above, calculation of the GHG emission reductions can be formulated as:
GHG Emission Reductions= (reference coal consumption - project coal consumption) × emission factor= (1 / “the boiler efficiency of the reference boiler” – 1 / “the boiler efficiency of the
project boiler”) × the amounts of heat supplied to the building × emission factor
The data collection system of every minute data of heat meter was first built up in
Mongolia through this MRV Activity. And, the remote data collection system using the mobile
phone system was first built up in Mongolia through this MRV Activity.
Since the start of monitoring activities was late for the assumed plan, the monitoring activitiesof this MRV Demonstration Study were implemented from 26th November (Monday) to 4th
December (Tuesday). Since the monitoring time is very short and the values are rounded up
and rounded down for the purpose of the conservativeness, the quantities of GHG Emission
Reduction are 1 (tCO2/201hour）. Based on the annual operating time of the HOB, which is5000 to 6000 hours, the annual emission reductions are estimated to be about 100 [tCO2/y].
When the Project/Activity is disseminated, the potential for emission reductions in
the whole host country is estimated as follows. The number of HOBs and the actual status＜14＞

MRV DS Report in 2012of their use in the whole of Mongolia are unknown and, therefore, only the potential of
Ulaanbaatar City is evaluated. The estimated value of the annual coal consumption of the
HOBs in Ulaanbaatar City is about 0.2 million [t/year]. Assuming that the boiler efficiencyof the HOBs in Ulaanbaatar City is improved by 10% on average, the reduced amount of coalconsumption is estimated as 0.02 million [t/year]. Assuming that the CO2 emission factor is
1.3 [tCO2/t-coal], the potential for GHG emission reductions can be estimated as about 26,000[t/year].

(9) Verification of GHG Emission Reductions:
As described in "(7) Monitoring Method,” it is indispensable to regard the MRV(measurement, reporting, and verification) as one integrated process and to formulate the M(monitoring plan), which is the first process based on the V (verification), which is the final
process. In this Demonstration Study, the monitoring plan was exhaustively formulated inadvance. Therefore, the Verification on the Monitoring Report in line with the Monitoring
Plan was able to be completed through one path without going back and forth among theprocesses, by implementing the Verification according to the Monitoring Plan.
The monitored items to be verified in Monitoring Method 1-1 are the amounts of heat
supplied, the hot water temperature, the supplied water temperature, the supplied water (hotwater) flow and total hours during the monitoring period. In the Verification activity
according to Monitoring Method 1-1, the formulation of the Monitoring Plan based on the
Verification was first emphasized and the Monitoring Plan was formulated, which took a longtime. The actual Verification activity was implemented according to the Monitoring Plan
and through desk reviews and on-site reviews. More specifically, the monitoring equipment
is variously checked from its serial numbers for item such as its verification statuses, and theverification activity was implemented checking the documents (the evidence) of the data used
for making the Monitoring Report. These activities were implemented with EEC, which is
the PPs (Project Participants), and it was confirmed that a document that was able to pass theverification of the emission reductions was able to be prepared.
The items to be verified of Monitoring Method 3-1 are the supply destinationbuilding volume, the indoor temperature, the outdoor temperature and total hours during themonitoring period. For the verification activity of Monitoring Method 3-1, the building
volume was grasped from the building passport and the outdoor temperature and the indoor
temperature were checked for their raw data and were checked in the spread sheet (Excel) for
input mistakes and calculation mistakes. The indirect measurement method only gave theestimated values and, therefore, it was simultaneously confirmed that the estimation needed tobe conducted very conservatively.
The "National Renewable Energy Centre" was selected as the local third party
verification institution to implement the verification in this demonstration study for thefollowing reasons: There was no DOEs of CDM in Mongolia.
 There was also no ISO certification body in Mongolia.
 The third party verification institution was required to ensure fairness (an institution witha system that was able to monitor the direct concerns to the Project/Activity and that cancope with the concerns) and, therefore, it was considered that a private company wasdifficult to satisfy such a requirement.
 The institution understood well about the status of Mongolia and the HOBs.
 The institution was a Mongolian domestic institution that was listed as the candidates by
Ms. Tsendsuren, DNA of Mongolia, based on the assumptions of the above requirements.
Monitoring Method 1-1 complies with the Mongolian standard. In addition, the＜15＞

MRV DS Report in 2012
monitoring devices used comply with EN1434 and are qualified according to the official
verification of the host country (Mongolia). Therefore, the validity was also ensured for theequipment and the Monitoring Plan was also easy to make. As a result, the verification
institution was able to easily verify the Monitoring Report, which was in line with theMonitoring Plan and also able to facilitate reduction of the verification time. Actually, thesubstantial verification was completed in several days.
On the other hand, Monitoring Method 3-1 does not comply with the Mongolian
standard and is an estimation method. In addition, though the monitoring equipment used
was calibrated in Japan, no equipment complying with the Mongolian standard was able to beprepared. As a result, the development of the monitoring plan was difficult and theverification had to be variously interpreted. Therefore, the verification activity implemented
in December was difficult to actually implement (not verified).
Then, it was determined that the difference was evaluated between the data actually
measured using a heat meter that complied with the standard and the data obtained using"Ondo-tori" that did not comply with the standard and, thereby, a discount rate was set thatwas used in a measurement method not complying with the standard. In addition,"Ondo-tori" was calibrated and its uncertainty was also evaluated. These items were
employed as the default values set in the methodology and were excluded from the items to beverified by the verification institution. Thereby, the highly troublesome verification of thesimplified approach was enabled. In other words, the verification is enabled by
implementing only the verification on the thermometers.
However, it was difficult to judge which point is the appropriate monitoring point of
the indoor temperature. Monitoring points are provided in the Monitoring Plan, and thevalidation of the Monitoring Plan was implemented. The Monitoring Report was made fromthe result of the Monitoring Activity which was implemented according to the Monitoring
Plan. Although the verification of the monitoring data itself was finished satisfactorily, theissue about monitoring point of thermometers remained. More specifically, the monitoringplan has to provide where to measure the indoor temperature and it is assumed that this isdifficult to determine.

(10) Ensuring Environmental Integrity:
The Project/Activity will achieve favorable effects such as improving the efficiencyof the HOBs and reducing the influence of the (tarnsboundary) air pollution concerning theuse of coal, and will not have particularly adverse effects on the environment during theiroperation. According to the Environmental Impact Assessment Law of Mongolia, which
was revised in May 2012, " Applications for a license for the use of natural resources,
extraction of petroleum and minerals, and possession and use of land for business purposes
and an approval for any other projects are subject to a prior general environmental impact
assessment." and, therefore, the law is not applicable to the Project/Activity.
(11) How to Promote the Dissemination of Japanese Technologies:
No Japanese technology is employed in the HOBs in Mongolia. Then, a measurecan be considered according to which Japanese technology will be employed by ensuring thesuperiority of Japanese technology by: introducing the Japanese policy on the combustion
technique (control of the number of units); implementing the improvement measure for theboiler efficiency by collecting the waste heat (the economizer and the recuperator); employing
large-scale boilers due to consolidation; etc.
According to Mr. Batdondog of the Heat Technology Section of the Energy Ministry,an activity has started to consolidate the HOBs of the 0.7-to-1-MW class installed at the＜16＞

MRV DS Report in 2012
capital city of each aimag and to newly install the HOBs of the 30-MW class. In addition, alarge-scale heat supply facility of the 300-MW class (a heat station) is also planned to beconstructed in the eastern part of Ulaanbaatar City and a feasibility study will soon be
implemented. As above, for the HOBs in Mongolia, it is becoming more likely thatJapanese technology will be introduced.
(12) Prospects and Challenges for Similar Project/Activity Implementation:
The following tasks need to be undertaken to implement under JCM/BOCM a
Project/Activity similar to the Project/Activity that is the target of this demonstration study.
① The Integration and Unification of the Monitoring Manual and Verification
Manual should be promoted.
② The Form of the Verification Report by which the integrated MRV Activity can be
operated was proposed and implemented in this MRV-DS. By making the Form of
the Verification Report, also contributes to the efficiency of the check of verification
report by the administrator of JCM/BOCM.
③ For the Project/Activity, PPs are independently implementing continuously themonitoring activity using the heat meters also in 2013. To also support this activity,
the flexibility in JCM/BOCM is desired such as retrospective recognition of the GHG
emission reductions. Thereby, the activity of JCM/BOCM will be activated in
Mongolia.
④ Fund for implementing the project. Currently, it is difficult to introduce
high-efficiency boilers without funds from foreign donors.
⑤ Development of the third party verification institution. Currently, there is noorganization such as DOE of CDM or ISO certification institution in Mongolia. In
this demonstration study, capacity building as the Third Party Verification Institution
was implemented for NREC. Therefore, it is desirable that NREC will obtain
ISO14065 and will act as a third party verification institution.
⑥ As demonstrated in this MRV-DS, it is important to produce the monitoring plan
based on the verification in order to tackle the tasks of the verification process to
reduce the load on the project participants. To do this, it is necessary to clarify in thescheme of JCM/BOCM the processes of formulating and approving the MonitoringPlan.
⑦ JCM/BOCM is the scheme of Japan and the host country. However, the monitoring
equipment used in the scheme is from other countries. JCM/BOCM has to be
developed so that the Japanese monitoring equipment is actively used in it.
⑧ It is necessary to check the certificate for each serial number for the measuring
equipment. In Mongolia, it was easy to check the type approval of equipment while it
was difficult to check its certification. Therefore, care should be taken for this point
when the system of JCM/BOCM is designed, including checks on the measurement
system.
⑨ JCM/BOCM should clearly define "calibration" and "verification,” and should
clearly distinguish them from each other.
⑩ It is necessary to make clear the scope of responsibilities, in the case that the intent or
negligence by the Third Party Verification Institution is led to the excess issuance ofcredits/offsets. There are assumed to be the responsibilities for Project Participants, theresponsibilities for Joint Committee which accepts the MRV methodology and the
responsibilities for the Third Party Verification Institution. It is necessary to prepare theprocedure which the verification institution can appeal the authorization result which
Joint Committee makes the determination of. This trial organization should become
independent from Joint Committee.
＜17＞

MRV DS Report in 2012

5. Contribution to Sustainable Development in Host Country
Improving the air environment is beneficial to human health, assuming that the old
HOBs are upgraded to the new HOBs and the coal consumption by the HOBs is reduced by
20%. As a result, the evaluation shows that a benefit of about 12 million [US$] was
obtained. As above, the effect of improving the air environment is very significant.
Currently, activity has started to consolidate the HOBs of the 0.7-to-1.0-MW classand to install HOBs of the 30-MW class instead. If these activities can be supported by thescheme of JCM/BOCM, the outcome of the Project/Activity can be utilized for thisconsolidation activity.

＜18＞