1. PACE Centre South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency KEY ISSUES FOR PACE Dean Cooper, Managing Director, Parallax

2. PACE Centre Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

3. PACE Centre CDMs have not really developed anything. So far they have been all costs and no benefits. (Brian Dawson, UNDP, 11 Dec 2004) South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Cost

4. PACE Centre Project baselines Validating procedures Monitoring plan Contract negotiation Registration Up front payment South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Transaction Costs

5. PACE Centre Awareness Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

6. PACE Centre Awareness of Small-Scale CDM Prospects South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Lack of information Bias towards low-hanging fruit Short term outlook Uncertainties – investment & returns

7. PACE Centre Awareness Scale Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

8. PACE Centre Scale to Attract Investors South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Individual projects insufficient Project bundling Common baselines (international experience) Low and delayed revenue streams High project & business risks

9. PACE Centre Awareness Scale Project Cycle Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

10. PACE Centre Project Cycle South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Understanding Eligibility (DNA relations) Timing (approval & validation) Monitoring

11. PACE Centre Awareness Scale Project Cycle Capacity Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

12. PACE Centre Limited Capacity South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Technology knowledge base Access to financial & technical resources Institutional capacity (including bureaucracy) Clarity of policy Investment capacity

13. PACE Centre Time Awareness Scale Project Cycle Capacity Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre

14. PACE Centre Time Demands South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency Understanding processes Completing PINs / PDDs Finding project partners (public/private) Establishing links to scale-up Investor agreements

15. PACE Centre Time Awareness Scale Project Cycle Capacity Cost Potential barriers to small-scale CDM Key Issues for the PACE Centre