Feasibility study of capturing carbon credit benefits in an academic institution: A case study

The CDM potential in an academic institution hosting 2500 students is analyzed through the introduction of renewable energy technologies (Solar Water Heater, Solar Steam Cooking) and adoption of energy efficient technologies (Compact Fluorescent Lighting, Energy Efficient Air Conditioners). The baseline emission has been calculated for each technology. A detail investment analysis has been carried out for each of these measures. The impact of revenue generated by selling carbon credits through the clean development mechanism (CDM), on the economic viability of the project activity is analyzed along with sensitivity analysis. Out of the four cases analyzed, energy efficient lighting and energy efficient air conditioners do not require CDM benefits for their viability hence they fail to prove the additionality. Solar steam cooking having negative value of IRR does not pass the additionality criterion for CDM. The solar water heater generating 48.13 tCO(2)/year is identified as the candidate CDM project. The total amount of CO2 that call be saved from emitting to the atmosphere by employing the renewable and energy efficient technologies is 311.34 tCO(2)/year. The CERs generated by this project are insufficient to cover the validation/verification and registration expenses. For converting the CDM potential into reality, bundling of the similar activities with nearby academic institutes can be considered. (C) 2008 Elsevier B.V. All rights reserved.