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Investigating the feasibility of using CDM for Solar Home Systems in Ugandan Healthcare: – Exploring the potential for the ICT4MPOWER project and beyond
Uppsala University, Disciplinary Domain of Science and Technology, Technology, Department of Engineering Sciences, Industrial Engineering & Management.
2011 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The Kyoto related mechanism – clean development mechanism (CDM) – can be used to generate certified emission reductions (CERs) for climate mitigating projects indeveloping countries. These credits provide an opportunity for additional project financing. This thesis has investigated the feasibility of using the CDM for off-grid solar home systems in order to electrify health centers in Uganda. The investigated scope includes two scenarios; one related to a particular project, ICT4MPOWER, and another one related to a national scenario of health center electrification. Two dimensions of feasibility have been targeted; legal prerequisites – various regulations that govern CDM projects – and value creating potential. The latter dimension has primarily focused on whether sufficient CDM-specific profit can be generated, but also looked at broader perspectives of value creation.

Calculated break-even scenarios show that the expected scope of the ICT4MPOWER project is far too small to benefit from CDM. A national scenario improves the chances of generating a sufficient profit but would most likely still be too small. A project with broader national coverage would likely need to be arranged as a CDM program of activites (PoA). Such an arrangement has organizational benefits but does further worsen the financial outlook. Apart from the unfortunate value creating prospects, there are also obstacles related to legal prerequisites. To establish a baseline – the business as usual scenario which reflect the emission reduction potential of a project – may be difficult and somewhat ad-hoc. To demonstrate additionality – that the project would not have been carried out anyway – is another potential obstacle which applies to the PoA scenario. All in all, there are clear doubts that CDM would be a feasible solution for the investigated scenarios.

Place, publisher, year, edition, pages
2011. , 81 p.
UPTEC STS, ISSN 1650-8319 ; 11020
Keyword [en]
CDM, Solar Home Systems, Healthcare, Uganda, Least Developed Country, value creation, transaction costs
URN: urn:nbn:se:uu:diva-150765OAI: diva2:408687
2011-01-28, 16:00
Available from: 2011-05-05 Created: 2011-04-05 Last updated: 2011-05-05Bibliographically approved

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