Application Page

A.1

Party

A.2

Title of Mitigation Action

A.3

Description of mitigation action

The Agriculture sector in Iran dominated for more than 16.2% of electricity consumption, while its share on national GDP is about 11.2%. Also the electricity demand growth in agriculture sector is 2.5 times is more than average demand growth in recent years. On the other hand, the electricity price in agriculture is lowest among energy carriers, therefore the government pays huge amount of subsidy to electricity consumption in agriculture. Also with respect climate modeling and change study, the result reveals that in future, country will be suffered from drought and annual rainfall will be decreased by 9% in period 2010-2039 in comparison to 1971-2005 period 1. It evident that as result of drought, the demand for electricity in agricultural irrigation will be rapidly increased in future, which caused that government suffer from extra investment in power sector for providing secure electricity in national level, so energy efficiency improvement in agriculture is crucial .

The EEIIA programme is a sector wide programme to improved energy efficiency of Agricultural irrigation infrastructure with objective to reduce the specific energy consumption per unit of exploited water targeting pumping facilities in well fields and booster stations within the country. The EEIIA programmes is directly aiming energy saving and GHGs emission reduction in different provinces. Also other local pollutants will be reduced as result of saved electricity .

The project activity including replacement of existing (retrofit) and future (Greenfield) inefficient pumps with submersible efficient ones and also re-sizing of the existing pumps .

For this purpose the population of different pump types, its power consumption and other specifications in baseline scenario with respect to historical data has been evaluated and therefore electricity demand for agricultural irrigation systems for 2014-2030 has projected. Then the project scenario was developed with following activities :

Activity 1: Retrofitting the 60% of existing inefficient pumps population in 2015 by efficient ones during 2018-2030 and selecting optimal size for them .

Activity 2: Promoting the utilization of efficient pumps by farmers (60% of population of yearly installed pumps) in new constructions (green fields )

Activity 3: Transfer of Technology for improvement the technology of the domestic pump manufactures to produce efficient pumps .

The incremental cost for retrofitting the existing pumps and new constructions is estimated about 106.2 Million USD. Also cost of technology transfer for improvement of the pumps manufacturing facilities and capacity building activities are 10 and 0.2 Million USD, respectively. It is to be noted that the project just covers the incremental cost of pumps replacement and the farmers are responsible for base cost.

A.4

Sector

Energy supply

Residential and Commercial buildings

Agriculture

Waste management

Transport and its Infrastructure

Industry

Forestry

Other

A.5

Technology

Bioenergy

Energy Efficiency

Hydropower

Wind energy

Carbon Capture and Storage

Land fill gas collection

Cleaner Fuels

Geothermal energy

Solar energy

Ocean energy

Low till / No till

Other

A.6

Type of action

National/ Sectoral goal

Strategy

National/Sectoral policy or program

Project: Investment in machinery

Project: Investment in infrastructure

Project: Other

Other

A.7

Greenhouse gases covered by the action

CO2

N2O

PFCs

CH4

HFCs

SF6

Other

B National Implementing Entity

B.1.0

Name

Power Generation Management, Transmission and Distribution Company of Iran (Tavanir), Ministry of Energy, Islamic Republic of IRAN.

B.1.1

Contact Person 1

B.1.2

Address

B.1.3

Phone

B.1.4

Email

B.1.5

Contact Person 2

B.1.6

Address

B.1.7

Phone

B.1.8

Email

B.1.9

Contact Person 3

B.1.10

Address

B.1.11

Phone

B.1.12

Email

B.1.13

Comments

Add Additional Entity

C Expected timeframe for the implementation of the mitigation action

C.1 Number of years for completion This field has incorrect value!
C.2 Expected start year of implementation This field has incorrect value!

D Currency

D.1

Used Currency

Conversion to USD: 1

E Cost

E.1.1

Estimated full cost of implementation

Conversion to USD: 2,960,300,000

E.1.2

Comments on full cost of implementation

E.2.1

Estimated incremental cost of implementation

Conversion to USD: 116,400,000

E.2.2

Comments on estimated incremental cost of implementation

F Support required for the implementation the mitigation action

G Estimated emission reductions

G.1	Amount
G.2	Unit
G.3	Additional imformation (e.g. if available, information on the methodological approach followed)	A methodological approach for monitoring the project and estimating GHGs emission reduction is prepared based on CDM approved methodologies AM0020 and AMS II.P. Grid emission factor is calculated and published by Ministry of Energy in yearly bases. Currently the national grid emission factor for CO₂ is about 0.715 Kg/KWh[1] [1] The Combined Margin (CM) grid CO₂ emission factor is 0.715 Kg/KWh, while the average grid CO₂ emission factor in 2013 is about 0.767 Kg/KWh ( 2013 Energy Balance Yearbook, MOE, 2015).

H Other indicators

H.1

Other indicators of implementation

Cumulative project emission reduction up to 2030 is estimated between 53.8 to 192 Million ton CO2. It is depending to the progress of power sector efficiency improvements and grid loss reduction which are under implementation by power authority, which will be affecting the grid emission factor. With respect to the gradual improvement in grid emission factor, the cost of conserved carbon for the project is varied between 0.61 to 2.16 USD/ton CO2. The lowest value will be occurred when the power efficiency improvement and grid loss reduction projects objectives is fulfill completely.

Currently the national grid emission factor for CO2 is about 0.715 Kg/KWh[1].

1. Increasing the power supply security: The electricity demand is growing with 8-10% every year in Iran and government have to install 8000 MW new capacity every year with cost of about 8 Billion USD. So with respect to the lack of financial resource, Power Authority suffers from secured supply of electricity, especially in hot seasons.

2. Increasing the gas supply security: 65% of the power plant in Iran runs by natural gas, any efficiency improvement in irrigation system may cause less demand for electricity and therefore, less natural gas consumption by power sector. This is increasing the supply of natural gas to other consumers. It is to be noted that in winter time government is suffer from secure supply of natural gas to consumers in industry.

3. Eliminating the adverse impact of climate change on power supply: The hydro-power contributes about 7% of total power generation in Iran. Recent drought had a negative impact on hydro power generations. Also the result of Climate modeling and Change Study (Iran’s Second National Communication to UNFCCC, 2010) reveals that in next decade's country will be suffer from drought and decreasing in rainfall by 9%. So the power sector will be suffered from secure supply of electricity as result of decline in contribution of hydro power. Efficiency improvement in irrigation systems minimizes the adverse impact of climate change on secure power supply.

4. Improvement the welfare in local and national level: at local level, any improvement in irrigation systems efficiency may reduce the electricity bill of the local farmers and have a positive impact on their income level and welfare. At national level, based on recent study by Iranian Fuel Conservation Organization (IFCO,2014), the investment in energy efficiency is 3 times cheaper than investment in installation of new facilities in Iran, so the government may utilizes the saved amount in other development projects. Also the energy carriers is highly subsidized in Iran and agricultural electricity have the lowest price among other energy carriers, therefore government pays a lot of subsidy for providing electricity to farmers. Any improvement in efficiency of irrigation systems may increase the financial resource of the government, and then they can to invest more in infrastructure development.

5. Improvement local and global environment: As are mentioned before, the CO2 emission factor of grid and grid loss are about 0.715 Kg/KWh and 18%, respectively 1 MWh electricity saving in end-use may reduce about 872 Kg Carbon dioxide. Also the grid emission factor for NOx, SOx and CO is 2.894, 3.915 and 0.694 gr/KWh. So any improvement in energy efficiency of end-use may improve local and global environment. From local environment point of view, some of power plants are located close to the mega-cities which suffered from air pollution, any improvement in end-use electricity consumption, will improve the air quality and health conditions in the mega-cities.

[1] The Comiend Margien (CM) grid CO₂ emission factor is 0.715 Kg/Kwh, while the average gride CO₂ emission factor in 2013 is about 0.767 Kg/KWh ( 2013 Energy Balance Yearbook, MOE, 2015).

I Other relevant information

I.1 Other relevant information including co-benefits for local sustainable development

J Relevant National Policies strategies, plans and programmes and/or other mitigation action

J.1	Relevant National Policies	National Energy Efficiency Improvement Act No. 1770 1. Iran’s Intended Nationally Determined Contribution (INDCs), Submitted to UNFCCC on November 2015. 2. Low Carbon Development Strategies and Action Plan under 6^th Five Years Development Plan 3. Strategic Action Plan on Climate Change, under Approval by National Climate Change Committee.
J.2	Link to other NAMAs