For allocation of allowances for greenhouse gas emissions trading for participation of bulgaria in the european greenhouse gas emission

4. Technical Aspects

4.1. Potential, Including the Technological Potential

4.1.1. Has Criterion 3 alone been used to determine the total quantity of allowances or has the distribution of allowances by activity covered by the Scheme been used as well? 4.1.2. Please describe the process (including significant assumptions) and each source used to assess the emissions reduction potential of the activities. In what way has it been ensured that the total quantity of allowances allocated corresponds to the potential? 4.1.3. Please explain the method or formula used to determine the quantity of allowances for allocation at the general level and/or at the level of activities, account being taken of the activities’ emissions reduction potential.

The total quantity of allowances is determined in accordance with Commission Decision from 26 October 2007 concerning the plan of BNAP for the period of 2008-2012 and adjusted by the Decision of the EC from 04/12/2008.

4.1.4. If the benchmarking method has been used as a basis for allocation to individual installations, explain the type of benchmarking and the formula used. Which benchmark has been used and why is it considered the most appropriate to achieve progress? Why has the core output projection been deemed to be the most suitable for development? Please provide an in-depth answer.

Prognosis for base production output is used as base for allocation of allowances to the new entrants.

As benchmark for emission factor is used the lower number of:

• Emission factor according the installation design.

• The lower emission factor, reported in the verified annual emissions report for operating installation of the same kind until the moment of taking decision for concrete new installation.

For installations with power capacitor production, as benchmark is used the annual operation rate of the installed capacity: for base stations 6500 h. for non base stations – 5500 h. That corresponds to the used methodology for elaboration of Least Cost Plan by the National electricity company.

For high efficient cogeneration installations, using natural gas, the benchmark is 82% of the reference value of 0.359 tCO₂/MWh for CO₂ emissions for electric power production of an integrated steam-gas cycle with 56% efficiency ratio.