Contribution project

Hydropower supports independent energy supply

Laos, Louang Namtha

ClimatePartner ID: 1439

Project details

HydropowerGet to know the project

The regional power grid in the Louang Namtha region in northern Laos is mainly supplied with energy from fossil fuels. In addition, there is a significant gap between the demand and the supply, so the energy had to be partly imported from China.

The energy that this climate project generates through hydropower is not only renewable, but also cheaper than the energy purchased from China. Therefore, this hydropower project contributes to a stable, sustainable and independent energy supply in the region.

The hydropower plant on the Nam Long with a total capacity of five megawatts generates approximately 37 gigawatt hours per year. By feeding electricity into the regional grid, less fossil energy is needed, so the project saves about 20,860 tonnes of CO₂ annually.

20,864 t CO₂Estimated annual emissions reductions

Project Standard

The project contributes to the the United Nations' Sustainable Development Goals

How hydropower contributes to climate action

Hydropower plants use the energy of water to generate electricity. The energy is harnessed by passing water through a turbine. Under the pressure of the water, the turbine turns and transfers this energy to a generator, which converts kinetic energy into electricity. This principle applies to all types of hydroelectric power plants: from small run-of-river power plants to pumped-storage power plants on bodies of water like lakes. In many parts of the world, electricity is still primarily generated from fossil fuels. Clean hydropower can replace some of this emission-intensive energy and thus verifiably save carbon emissions. In most hydropower projects, the electricity is fed into a regional power grid, diversifying the energy supply and improving energy security in areas affected by power shortages and blackouts. Often, these projects also create jobs for the local population. Hydropower projects thus make an important contribution to clean energy supply as well as contributing to the UN Sustainable Development Goals (SDGs). Hydopower projects in the ClimatePartner portfolio are registered with international standards.

The project aims to contribute to these United Nations’ Sustainable Development Goals (SDGs).

Project facts

Type
Reduction

Climate projects generally fall into one of three groups: carbon reduction, carbon removal, or carbon avoidance. Carbon reduction projects reduce the amount of greenhouse gas emissions produced by a specific activity (e.g., improved cookstoves). Carbon removal projects remove carbon from the atmosphere by sequestering it in carbon sinks (e.g., reforestation). Carbon avoidance projects avoid greenhouse gas emissions entering the atmosphere (e.g., protecting forests from deforestation with REDD+ projects).

Location
Laos, Louang Namtha

Standard
Gold Standard

All climate projects are based on international standards. They set processes and requirements which carbon projects must fulfill to be recognised as a proven method of reducing carbon emissions.

Technology
Hydropower

Climate projects demonstrably reduce, remove, or avoid greenhouse gas emissions. This is achieved with various technologies, ranging from nature-based solutions to social impact projects and renewable energies.

Registry ID
2707

Most standards on the voluntary carbon market list their projects in public registries. The registries are used to store project data and track issuances and retirements of verified emission reductions. The registry ID can be used to identify projects in the standard registry.

Check out this project

Verified by
LGAI Technological Center, S.A.

Climate projects go through third-party validation and verification. Verification happens regularly after each monitoring period. A validation and verification body checks and assesses whether the values and project activities stated in the monitoring report are correct and verifies them. As with validation, visits to the project site are often part of the process.

Validated by
Shenzhen CTI International Certification Co., Ltd (CTI)

Climate projects go through third-party validation and verification. Validation happens early in the project life cycle and ensures that the project design is in line with current processes and requirements. This phase often also involves field visits with on-site interviews and analyses. Auditors are accredited, impartial assessors who have to be approved as a validation and verification body (VVB) by the standards body.

Estimated annual emission reductions
20,864 t CO₂

This figure shows the estimated annual emission reductions calculated before the project started. The actual number of emissions saved in each monitoring period may differ. The background to this process is that in order to be registered as a climate project, the project operator must submit the calculation of the estimated emissions savings using the ex-ante methodology in a Project Design Document (PDD), which is similar to a business plan. This calculation is validated by an independent auditor. The values determined in the PDD are recalculated during regular monitoring periods based on actual project performance, documented in a monitoring report, and verified again by independent auditors at the end of the monitoring period to ensure a robust process. Independent verification thus provides ex-post verification of actual emission reductions. Verified emission reductions are not distributed until the savings have actually been made.

Four criteria for projects to meet quality thresholds

01. AdditionalityA project must lead to lower carbon emissions than would have occured without the project. Additionality also means that a project relies on financing from the sale of emission reductions, as the project would otherwise not be feasible and the upfront investment would be too high for project developers.

02. Exclusion of double countingThe carbon reduction may only be counted once and may not be counted again elsewhere, so a Verified Emission Reduction is retired once it has been used. This process is recorded in official registries.

03. PermanenceThe criterion of permanence ensures that carbon reductions or removals are ongoing and do not occur just once. This guarantees a long-term benefit for the climate. The minimum duration of a project depends on the underlying project technology.

04. Audit by independent third-partiesClimate projects must be audited regularly by independent auditors such as TÜV Nord. These auditors verify that the project is in compliance with the relevant standards. They also determine the volume of carbon emissions that have actually been avoided or removed.

The life cycle of a climate project

A climate project has a set life cycle consisting of various phases, from the feasibility assessment to the retirement of Verified Emission Reductions (VERs).

Project planning phase

The project developer reviews the general feasibility of the project, the project design, and the financing. Then, the Project Design Document (PDD) is prepared, which contains all the basic information about the project, such as the objective, location, timeline, and duration.

Validation

In this phase, independent auditors examine the PDD and the information it contains. This phase often also involves field visits with on-side interviews and analyses. Auditors are accredited, impartial assessors who have to be approved by the relevant standard as a validation and verification body (VVB). TÜV Nord/Süd, S&A Carbon LLC., and SCS Global Services are examples of VVBs."

Registration

Once validated, the project can be registered with a standard such as the Verified Carbon Standard or the Gold Standard. All high-quality climate projects are based on international standards. They provide the framework for project design, construction, carbon accounting, and monitoring. Recognised standards make the climate project system and the projects themselves resilient, traceable, and credible.

Monitoring

After the climate project has been registered, the monitoring begins. Here, the project developers monitor and document the data of the project activities and progress. The duration of the monitoring phase varies from project to project: it can cover two years, but documentation over five or seven years is also possible.

Verification

At the end of each monitoring phase, a VVB checks and assesses whether the values and project activities stated in the monitoring report are correct. As with validation, visits to the project site are often part of the verification process.

Issuance of Verified Emission Reductions

Once verified, the emission reductions that were confirmed in the verification phase can be issued as VERs. The steps of monitoring, verification, and issuance of VERs are repeated regularly and are therefore considered as a cycle.

Retirement of Verified Emission Reductions

Once a VER has been used, it must be retired. This process is also reflected in the registry. If the financing of a climate project is done through ClimatePartner, the VERs are bundled in a system certified by TÜV Austria and then retired on a regular basis. This ensures that each VER can no longer be sold and is only used once, preventing double counting.

* The information on this page was last updated 15 April 2024.* For certified projects only: the project-related information on this page is based on the documents in the register.

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