PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) VERSION 03 - IN EFFECT AS OF: 22 DECEMBER 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity: >> Project title: Xiasong Hydro Project PDD version: 01 Completion date of PDD: 28/09/2009

A.2. Description of the small-scale project activity: >> Sichuan Luding County Xiasong Hydro Project (hereafter referred to as “the project” or “the proposed project”) is a newly built grid-connected hydropower station in Luding County, Ganzi Zhou, Sichuan Province, People’s Republic of . The project is developed by Luding County Tianding Hydro Electricity Development Co., Ltd..The objective of the Project is the generation of zero carbon emission electricity from a renewable source (i.e. hydropower) and the displacement of the same amount of electricity from the Central China Power Grid (CCPG) that is mainly dominated by coal- fired power plants. The Project intends to meet the increasing demand of electricity in Sichuan Province in a sustainable way, and to contribute to the sustainability of the CCPG.

The project is a newly built run-of-river hydropower plant with no reservoir, utilising hydro resource from the Dadu. The total installed capacity of the project is 9.6MW, which includes 3 sets of 3.2MW turbine-generator. The net annual electricity delivered to the grid is 49,368.8 MWh, which is transferred to the Central China Power Grid (CCPG). The Project boundary is CCPG consisting of 6 sub-grids: Henan, Hubei, Hunan, Jiangxi, Sichuan and Chongqing. CO2 emissions from electricity generation in fossil fuel-fired power plants belonging to the CCPG are displaced due to the project 1 activity and the CO2 is the main emission source in baseline . The Project will lead to an estimated annual greenhouse gases (GHG) emission reductions of approximately 42,107tCO2e.

The baseline scenario for the proposed project activity is grid connected electricity generation in the Central China Power Grid (CCPG) and the connected electricity system, which is identical to the scenario existing prior to the start of implementation of the project activity. The proposed project activity will displace electricity generation in the baseline.

Being a renewable energy project with zeroCO2 emission, the proposed project will bring positive social, economical, and environmental benefit to the local community, as follows: • Reducing the reliance of the CCPG on exhaustible fossil fuels for power generation; • Reducing air pollution by replacing fossil fuel based electricity by clean, renewable power; • Improving the local energy generation infrastructure, bridging the gap between power supply and demand and reducing the deficiency of the local grid; • Reducing the threat posed to air pollution to human health; • Reducing the emissions of greenhouse gases, to combat global climate change; and Contributing to local economic development and improvement of quality of life through increasing employment opportunity and access to energy. Luding County, Ganzi Zhou, Sichuan Province, People’s Republic of China. It can enhance national solidarity and create harmonious society by promoting regional economic development.

1 More details are shown in Section B.3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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A.3. Project participants: >>

Kindly indicate if the Party Name of Party Private and/or public entity(ies) involved wishes to be involved(*) ((host) project participates(*)(as applicable) considered as project indicates a host Party) participant(Yes/No) Luding County Tianding Hydro P.R. China (host) No Electricity Development Co., Ltd. Switzerland Vitol S.A. No

Contact detailed of projects participants are given in Annex 1 to this PDD.

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity: >> A.4.1.1. Host Party(ies): >> People’s Republic of China

A.4.1.2. Region/State/Province etc.: >> Sichuan Province

A.4.1.3. City/Town/Community etc: >> Luding County / Ganzi Zhou

A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : >> The project is located on the in Luding County, Ganzi Zhou, Sichuan Province, P.R.China. The project’s approximate geographic coordinates are east longitude of 102°10′18.40″and north latitude of 29°51´47.05″ and the project location is shown in Figure A/1, A/2 below.

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Sichuan Province

Figure A/1 Sichuan Province Location

The Project site

Figure A/2 The Project Location

A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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>> Using the categorization of Appendix B to the Simplified Modalities and Procedures for Small-scale CDM Project Activities, the project type and category are defined as follows:

Project Type (i): Renewable energy projects; Project CategoryD: Electricity generation for a system

The project is a run-of-river hydropower project with low water head; the main buildings consist of diversion tunnel, penstock, dam gate and powerhouse. The project will install 3 set of 3.2MW turbine- generators for a total installed capacity of 9.6MW. The project will provide a net annual average power output of 39,490MWh which is transferred to the grid. The electricity will be transmitted to Shunda Substation by 110kv lines, and then connected to the CCPG. Major technological parameters of the project are as follows:

Table A-1 Technical data of the turbines and generators

Main Technical Data Value Units 3 Type CJA475-W-115/2×12.6 Capacity 3.400MW Turbine Rated rotation speed 600 r/min Rated flow 4.42m3/s Rated water head 280 m Lifetime 20 years Units 3 Type SFW3200-10/2150 Generators Capacity 3.2MW Rated voltage 6.3kV Lifetime 20 years

CO2 emissions from electricity generation in fossil fuel-fired power plants belonging to the CCPG are displaced due to the project activity, and it is the main emission source in baseline. The proposed project is designed to utilize the water source to generate electricity which will be transferred to the substation, and fed into CCPG. The electricity will be transferred to the Sichuan Power Grid, and fed into CCPG.

The electricity is connected to the main transformers to boost voltage from 6.3 kV to 110 kV and then the electricity is delivered through transmission line to substation and then to power grid. The monitoring system of the project is installed at project site. There is one bidirectional Master Meter with accuracy of 0.5s(0.2s) or above installed for the metering system. There might be another backup line (if any) used for emergency situation in the future. There will also be a meter with accuracy of 2.0 or above to measure the data of backup line (if any).

The turbines and generators used in the project activity are made in China and no technology transferring from abroad is involved in the project activity.

Carbon dioxide (CO2) is the only greenhouse gases involved in the project activity, whose source of emission are the fossil-fuel power plants belonging to the CCPG, which is inside the project boundary. The proposed project will be generating annually 49,368.8 MWh of electricity and displacing the same PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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amount of electricity from the CCPG, hence reducing annual emission by 42,107 t CO2e, which is the estimated annual emission reduction of CO2e of the Project.

A.4.3 Estimated amount of emission reductions over the chosen crediting period: >> A 7-year renewable crediting period is chosen for the proposed project activity. During the first 7-year crediting period the estimated annual and total emission reductions are 42,107 tCO2e and 294,7477tCO2e respectively. Estimation of emission reductions over the first crediting period (2010.01.01~2016.12.31) is provided in Table A-2. Table A-2 Estimation of emission reduction s during the first crediting period

Annual estimation of emission reduction in Years (tCO2e) 2010 42,107 2011 42,107 2012 42,107 2013 42,107 2014 42,107 2015 42,107 2016 42,107 Total estimated reductions 294,747 Number of years in first crediting period 7 Averaged annual emission reduction 42,107 (tonnes of CO2e)

The above is an ex-ante estimation of emission reductions, and shall be changed based on ex-post monitoring.

A.4.4. Public funding of the small-scale project activity: >> No public funding from parties included in Annex I of UNFCCC is available to the project activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: >> According to paragraph 2 of Appendix C to the Simplified Modalities and Procedures for Small-Scale CDM project activities, a small-scale project is considered a debundled component of a large project activity if there is a registered small-scale activity or an application to register another small-scale project: 1. With the same project participants; 2. In the same project category and technology; 3. Registered within the previous two years; and 4. Whose project boundary is within 1km of the project boundary of the proposed small scale activity.

On the contrary, a specific small-scale project activity shall not be deemed to be a debundled component of a large project activity if the project does not meet at least one of the abovementioned criteria. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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The Project participants have not registered or are not applying to register any other small-scale CDM project activity in the same project category and technology/measure, and within 1 km of the proposed project boundary at the closest point. Therefore, the proposed project is not a debundled component of a large project activity.

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: >> AMS-I.D. ver.14-“Grid connected renewable electricity generation”. For more information, refer to: http://cdm.unfccc.int/UserManagement/FileStorage/CDMWF_AM_PHPV5WESACMBTJ2YY54GAJ YSIEI3HD

“Tool to calculate the emission factor for an electricity system” (Version 01.1) For more information, please refer to: http://cdm.unfccc.int/methodologies/Tools/EB35_repan12_Tool_grid_emission.pdf

Appendix B of the simplified modalities and procedures for small scale CDM project activities For more information, please refer to: http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43

B.2 Justification of the choice of the project category: >> The project meets all applicability criteria of the methodology AMS-I.D. as follow: 1. The project is a newly build hydropower plant, plan to utilize the renewable water resources to generate electricity, the total installed capacity is 9.6MW, which is not exceed the limit of 15MW set by chosen methodology. 2. The power generated from the proposed project activity is supplied to the CCPG which is dominated by fossil fuel-fired power plants. The project displaces electricity from an electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit.

B.3. Description of the project boundary: >> According to methodology AMS-I.D version 14, the project boundary encompasses the physical and geographical site of the renewable generation source. Project electricity system is defined by the spatial extent of the power plants that are physically connected through transmission and distribution lines of the project activity (e.g. the renewable power plant location or the consumers where electricity is being saved) and that can be dispatched without significant transmission constraints.

Electricity generated from the proposed project will be connected to the Central China Power Grid (CCPG). According to the Chinese DNA guidance, CCPG is composed of Jiangxi Provincial Power Grid, Henan Provincial Power Grid, Hubei Provincial Power Grid, Hunan Provincial Power Grid, Sichuan Provincial Power Grid and Chongqing Power Grid. CCPG is then defined as the proposed project boundary.

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Xiasong Hydro Power Station Project

Turbine Generator Central China Power Grid

Note: Project Boundary Transmission Line

Figure B/1 Project Boundary

B.4. Description of baseline and its development: >> According to methodology AMS-I.D version 14,the realistic and credible baseline scenarios is Equivalent annual electricity supplied by Central China Power Grid, which is the continued operation of the existing power plants and the addition of new generation sources on the Central China Power Grid to meet the electricity demand. The proposed project is a newly built grid-connected hydropower station project. The emission reductions of the project are equal to the baseline emissions since the project emissions and leakage is zero respectively.

According to methodology AMS-I.D version 14, baseline emissions are equal to the power generated by the project that is delivered to the Central China Power Grid, multiplied by the baseline emission factor. The baseline emission factor (EFy) is calculated as a Combined Margin (CM), which consists of the weighted average of Operating Margin (OM) emission factor and Build Margin (BM) factor. An ex-ante 3 years data vintage for the Central China Power Grid is used. The key parameters used for emission reductions calculation are as follow:

Parameter Unit Value

EFOM tCO2e/MWh 1.1255

EFBM tCO2e/MWh 0.5802

EFy tCO2e/MWh 0.8529

The emission reductions calculations are specified in Section 6 and Annex 3.

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: >> According to Attachment A to Appendix B of the simplified modalities and procedures for small scale CDM project activities, project participants shall provide an explanation to show that the project activity would not have occurred anyway due to at least one of the following barriers: z Investment barriers; z Technical barriers; z Barriers due to prevailing practice; z Other barriers. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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The project faced investment barrier, the analysis are as follows:

1. Investment barrier The project is a run-of-river project located in Ganzi Zhou, Sichuan Province with inconvenient traffic and poor economic conditions. Therefore, the obstacle to the implementation of the project activities is the investment barriers.

There are three analysis methods recommended to conduct investment analysis, including simple cost analysis (Option I), investment comparison analysis (Option II) and benchmark analysis (Option III).

Option I: Simple cost analysis is not applicable to the project because the project activity generates the revenue from the sale of generated electricity. Option II: Investment comparison analysis is not appropriate because the alternative to the proposed project is equivalent annual generated electricity supplied by CCPG which is not an investment project. Option III: Benchmark analysis is appropriate. It provides the simplest method of analysis which is the least demanding in terms of data availability. This method has also been used in other PDDs of grid connected renewable energy projects in China. According to Economic Evaluation Code for Small Hydropower Projects (SL16-95) approved by Ministry of Water Resources of P.R. China, The benchmark of IRR for a hydropower project with the installed capacity of below 25MW is 10%. This benchmark IRR is used widely in China for investment analysis of small-scale hydropower projects.

Based on the feasible study report of the project, basic parameters for calculation of financial indicators are shown in Table B-1.

Table B-1 Key parameters used in the calculation of the project IRR.

Parameter Unit Data Data source Installed capacity MW 9.6 FSR Total Static Investment 104Yuan 6,001.2 FSR Estimated of annual grid-connected MWh 49,368.8 FSR electricity generation Electricity Tariff (including VAT) Yuan/kWh 0.2233 FSR Valued Added Tax % 17 FSR water resource charge Yuan/KWh 0.005 FSR Material fee Yuan/KW 5 FSR other cost Yuan/KW 12 FSR Construction Surtax % 5 FSR Education Surtax % 3 FSR Income Tax % 25 FSR Depreciation period year 20 FSR capital residual rate % 4.0 FSR depreciation rate % 4.8 FSR Employee person 30 FSR Salary RMB/year 15000 FSR Social welfare % 41 FSR PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Annual O&M Cost 104Yuan 180.88 FSR Project Operation Life Time Year 20 FSR

The IRR with and without CERs (the price of CERs considered for this analysis is EUR 8.0/tCO2e) is shown in Table B-2. It can be concluded that the project IRR is 8.28% without CERs revenue lower than the benchmark IRR 10%. Table B-2 IRR of the Project total investment IRR (total investment) Without CDM revenue 8.28% With CDM revenue 13.88%

2. Sensitivity analysis A sensitivity analysis was conducted by altering the following parameters: • Total static investment • Annual electricity connected to the grid • Electricity Tariff • Annual O&M costs The sensitivity analysis is used to show whether the conclusion regarding the financial attractiveness is robust to reasonable variations in the critical assumptions. For the project, four parameters are selected as sensitive factors to check out the financial attractiveness, the sensitivity analysis is shown in Table B-3 below:

Table B-3 Results of the Sensitivity Analysis for the project IRR

Percentage variation Variable -10% -5% 0% 5% 10% Total static investment 9.56% 8.89% 8.28% 7.71% 7.17% Annual electricity connected to the grid 7.09% 7.69% 8.28% 8.85% 9.41% Electricity Tariff 7.05% 7.67% 8.28% 8.87% 7.45% Annual O&M costs 8.61% 8.44% 8.28% 8.11% 7.94%

7.0%

6.5%

6.0%

IRR 5.5%

5.0%

4.5%

4.0% 12345 Static total investment Power delivered to the grid Electricity Tariff Annual O&M cost

Figure B/2 IRR of total investment sensitivity analysis of the proposed project

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Costs fluctuate within the range of –10% to +10% (without CERs revenue), the project IRR varies to different extent. The fluctuation of total investment and sales revenue have great impact on project IRR and the total investment is considered to be the most sensitive factor to impact the project. However, the project IRR is always lower than benchmark IRR of 10% whatever the critical assumptions vary.

In conclusion, the project is not financially attractive when CERs revenue is not considered.

The four parameters were also varied to reach the 10% benchmark. The results of these variations on IRR (excluding CER revenue) are summarized in Table B-4.

Table B-4 Results of the sensitivity analysis for the Project IRR (total investment) Benchmark Percentage variation to benchmark Total static investment Decrease 13.02% Annual electricity connected to the grid Increase 15.32% 10% Electricity Tariff Increase 14.86% Annual O&M cost Decrease 53.56%

The results show that when the total investment, Power delivered to the grid, power price and annual O&M cost fluctuating, there is different extent of variations for these parameters to reach the benchmark IRR 10% (excluding CERs revenue).

If 13.02% of the total investment could be saved, the IRR of the Project could reach the benchmark IRR. However, this assumption is unrealistic as the static total investment is 83.06% of the total investment, in order to save the investment, 2 options for equipments investment have been compared at length by the project owner and the proposed project option is finally determined. Therefore, it is unlikely for the static investment of the project to decrease more than 13.02%.

According to FSR, the variation of electricity generation is mainly subject to the water resources of project site, which is strictly connected to local rainfall patterns. It is impossible for the electricity generation of the project to increase more than 15.32%, because the electricity generation was speculated according to the historical hydrology data for 47 years (1952~1999)2.

The project owner signed the Power Purchase Agreement with local power company with the tariff of 0.2233RMB/kWh which is regulated by the government.

On the other hand, the result indicates that when O&M cost is decreased by 53.56%; the IRR of the project could reach the benchmark. This assumption is not realistic since the FSR has demonstrated it is almost impossible to adjust annual operating to such extent. The impact of the average annual O&M cost is the slightest, the FIRR of the proposed project will exceed the benchmark when the annual O&M cost declined53.56%. Whereas, according to the FSR, the detailed operation costs is composed of four kinds of costs - maintenance costs, annual salaries for the employees, insurance premium of fixed assets and other costs. Moreover, the price of material and salaries of the employees are gradually increasing in China, which leads annual O&M cost gradually increasing3.

2 Feasible Study Report of Xiasong Hydropower project. 3 The price for construction material and manpower inflation, reported by Economic Observation Press, June 18th, 2006, http://www.china.com.cn/chinese/EC-c/1246238.htm PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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The sensitivity analysis shows that the project is not economically and financially attractive, without the revenues from the sale of CERs. The project thus faces significant economic and financial barriers without CDM support.

As early as the Feasibility Study Report period (February of 2007), the IRR of the project was below benchmark. So the design institute concluded that the financial performance of the proposed project was not much attractive which would not decrease the investment risk. However, since the project would bring much more social benefits as well as environmental benefits, the decision to develop it as a CDM project was taken by project owner.

The project owner has considered CDM application seriously and tried their best to do CDM application work. Real and continuing actions taken to secure the CDM status for the project in parallel with its implementation are shown in the below table:

Table B-5 The implementation timeline of the proposed project

Activities date Complete the FSR (including CDM) February 2007 Shareholder meeting ratifying decision on CDM 10 March 2007 FSR approval 10 April 2008 Project owner signed with CDM consultant company 21 July 2008 Construction start 28 July 2008 ERPA discussions December 2008 ERPA signed July 2009 DNA application July 2009 Commercial operation 1 October 2009

B.6. Emission reductions: >> B.6.1. Explanation of methodological choices: >> Project Emission According to AMS-I.D., there will be no back up power using fossil fuel in the project site, therefore, the emissions due to fossil fuel consumption for the operation of the backup power equipment is not considered in the project. Therefore, the GHG emission of the project is zero, tPEy=0.

Baseline Emission According to AMS-I.D., the baseline is the kWh produced by the renewable generating unit multiplied by an emission coefficient (measured in kg CO2/kWh), so the baseline should be calculate as:

BE y = EGy ⋅ EFgrid,CM , y (B.1) Where: BEy = Baseline emissions in year y (tCO2/yr). EGy = Electricity supplied by the project activity to the grid (MWh). EF,grid,CM, = Combined margin CO2 emission factor for grid connected power generation in year y. y

Electricity supplied by the project activity to the grid EGy equals to the net go-to-grid electricity of the project EGout,y subtracting the electricity the project purchased from the grid EGin,y. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Calculate the Operating Margin emission factor (EFOM, y) Based on the “Tool to calculate the emission factor for an electricity system”, there are four methods provided to calculate the EFgrid,OM,y: a) Simple OM, or b) Simple adjusted OM, or c) Dispatched data analysis OM, or d) Average OM

The simple OM method is used for the project. The selected method is applicable to the project because low cost/ must run resources constitute less than 50% of the total grid generation in average of the five most recent years. Detailed calculation is listed as below:

Table B-6 Power generation mix of Central China Power Grid Electricity generation (GWh) Year Thermal Total Low cost/must run (%) 2003 240,839 367,287 34.43% 2004 270,846 440,665 38.37% 2005 303,976 491,720 38.59% 2006 355,453 547,859 35.10% 2007 407,026 605,996 32.83% Data Source: China Electric Power Yearbook (2004 - 2008)

For the simple OM, the emissions factor can be calculated using either of the two following data vintages: • Ex ante option: A 3-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation, without requirement to monitor and recalculate the emissions factor during the crediting period. • Ex post option: The year in which the project activity displaces grid electricity, requiring the emissions factor to be updated annually during monitoring.

The project selected the Ex ante option to calculate EFgrid,OM,y.

Calculate the operating margin emission factor according to the selected method

According to “Tool to calculate the emission factor for an electricity system” (Version 01.1), the Simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including low-cost / must-run power plants / units. It may be calculated:

Option A. Based on data on fuel consumption and net electricity generation of each power plant / unit. Option B. Based on data on net electricity generation, the average efficiency of each power unit and the fuel type(s) used in each power unit. Option C. Based on data on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system.

The project selected Option C for the following 2 reasons: PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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1. Options A and B are not applicable because fuel consumption data for each power plant are commercially confidential and not available to the public in China; 2. Nuclear and renewable power generations are considered low-cost / must-run power plants / units within the CCPG, and the quantity of electricity supplied to the CCPG is known.

According to Option C, the calculation follows the following formula:

FC⋅⋅ NCV EF ∑ iy,,,, iy coiy2 i (B.2) EFgrid,, OMsimple y = EGy Where: EFgrid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh) = Amount of fossil fuel type i consumed in the project electricity system in year y (mass FC i,y or volume unit) = Net calorific value (energy content) of fossil fuel type i in year y (GJ / mass or NCV i,y volume unit) EFCO2,i,y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ) = Net electricity generated and delivered to the grid by all power sources serving the EG y system, not including low-cost / must-run power plants / units, in year y (MWh) = All fossil fuel types combusted in power sources in the project electricity system in i year y = Either the three most recent years for which data is available at the time of submission y of the CDM-PDD to the DOE for validation (ex ante option) or the applicable year during monitoring (ex post option), following the guidance on data vintage in step 2

The proposed project adopts the latest of OM emission factor calculation of Central China Power Grid announced by China DNA. The detailed calculation process is shown in Annex 3. EFgird,OMsimple,y =1.1255 tCO2/MWh.

Identify the cohort of power units to be included in the build margin To the purpose of the project, the sample group of power units m used to calculate the build margin is the set of the power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently.

In terms of the vintage data, the “Tool to calculate the emission factor for an electricity system” (Version 01.1) indicate two options for the calculation of EFgrid,BM,y. Option 1: For the first crediting period, calculate the build margin emission factor ex-ante based on the most recent information available. For the second crediting period, the build margin emission factor should be updated based on the most recent information available. Option 2: For the first crediting period, the build margin emission factor shall be updated annually. For the second crediting period, the build margin emission factor shall be calculated ex-ante. For the third crediting period, the build margin emission factor calculated for the second crediting period should be used.

According to 2009 Baseline Emission Factor for Regional Power Grid in China, the build margin emission factor is calculated as Option 1.

Calculate the build margin emission factor PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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The Build Margin Emission Factor is calculated as the generation-weighted average emission factor (tCO2e/MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows;

∑ EGmy,,,× EF ELmy m (B.3) EFgird,, BM y =

∑ EGmy, m Where: EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh) = Net quantity of electricity generated and delivered to the grid by power unit m in year y EG m,y (MWh) EFEL,m,y = CO2 emission factor of power unit m in year y (tCO2/MWh) m = Power units included in the build margin y = Most recent historical year for which power generation data is available

Considering of data availability; CDM EB accepts the following deviation in application of methodology. Due to the difficulty of separating the coal-fired, gas-fired or oil-fired installed capacities from the whole fossil fuel-fired installed capacity, the following method is used in the calculation:

(1) Calculate the proportions of CO2 emissions from the coal-fired, gas-fired and oil-fired power plants in the total fuel-fired CO2 emissions: F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y i∈COAL, j λCoal,y = (B.4) F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y i, j F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y λ = i∈OIL, j (B.5) Oil,y F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y i, j F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y i∈Gas, j λGas,y = (B.6) F × NCV × EF ∑ i, j,y i,y CO2 ,i, j,y i, j

Where: Fi,j,y = the amount of fuel i (in a mass or volume unit) consumed by province j in year(s) y = Net calorific value (energy content) of fossil fuel type i in year y (GJ/mass or NCV i,y volume unit) EFCO2,i,j,y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)

Coal, Oil and Gas are footnote group for solid fuels, liquid fuels and gas fuels.

(2) Calculate the fuel-fired power plants emission factor (EFThermal):

EFThermal=λCoal×EFCoal,Adv+λOil×EFOil,Adv+λGas×EFGas,Adv (B.7) Where: EFTherma = the fuel-fired power plants emission factor l EFCoal, Adv, EFOil, Adv, EFGas, Adv are respectively corresponding emission factors of coal-fired, oil-fired PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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and gas-fired generation technologies with the best efficiency level commercially available.

(3) Calculate the Build Margin (BM) Emission Factor

CAPThermal EFBM , y = × EFThermal (B.8) CAPTotal

Where: EFBM,y = the Build Margin (BM) emission factor of the grid in year y = the total amount of incremental installed capacity which does not exceed 20% of the CAP Total existed installed capacity. CAPTherma = the amount of the installed capacity of newly-added fuel-fired power plants l

Referring to the 2009 Baseline Emission Factors for Regional Power Grids, the build margin emission factor (EFBM,y) of the Central China Power Grid is 0.5802tCO2/MWh (see Annex 3 for details).

Calculate the combined margin emissions factor

The combined margin emissions factor is calculated as follows:

EFgrid ,CM , y = wOM × EFgrid ,OM , y + wBM × EFgrid ,BM , y (B.9) Where:

EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh) EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh) wOM = Weighting of operating margin emissions factor (%) wBM = Weighting of build margin emissions factor (%) Since the proposed project is a hydropower project, the default value of the weights is 0.5. The EFgrid,,CM,y=0.8529tCO2/MWh Leakage According to AMS-I.D, the energy generating equipment is not transferred from another activity or transferred to another activity, so leakage(Ly) of the project is not to be considered.

Emission Reductions The project activity will generate GHG emission reductions by avoiding CO2 emissions from electricity generation by fossil fuel power plants. The emission reduction (ERy) during a given year y is calculated as follows:

ERy = BE y − PE y − Ly (B.10)

B.6.2. Data and parameters that are available at validation: >> Data / Parameter: Fi,j,y Data unit: 104t , 108m3 Description: Amount of fossil fuel i consumed by relevant source j in year y Source of data used: China Electric Power Yearbooks (2006-2008) Value applied: See Annex 3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Justification of the Official released statistic; publicly accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: EFCO2,i,y Data unit: tCO2/GJ Description: CO2 emission factor of fossil fuel type i in year y Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories Value applied: See Annex 3 Justification of the IPCC default values choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: NCVi Data unit: MJ/t, or MJ/Km3 Description: Net calorific value of fossil fuel type i in year y Source of data used: China Energy Statistical Yearbook Value applied: See Annex 3 T Justification of the Official released statistic; publicly accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: Electricity generation in CCPG Data unit: MWh Description: Net electricity generated and delivered to the grid in year y Source of data used: China Electric Power Yearbook (2006-2008) Value applied: See Annex 3 Justification of the Official released statistic; public accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

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Data unit: Description: The internal use rate of power source in each province connected to CCPG Source of data used: China Electric Power Yearbook (2006-2008) Value applied: See Annex 3 Justification of the Official released statistic; public accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: Efficiency of advanced thermal power plant additions Data unit: Description: Data are based on the best technologies available in china Source of data used: See the downloadable files mentioned above for the full data set. http://cdm.ccchina.gov.cn/website/CDM/Upfile/file1051.pdf Value applied: Coal 38.10%; Gas 49.99%; Oil 49.99% Justification of the Official released statistic; publicly accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: Installed capacity of CCPG Data unit: MW Description: The installed capacity of power source j in year y Source of data used: China Electric Power Yearbook (2006-2008) Value applied: See Annex 3 Justification of the Official released statistic; public accessible and reliable data source choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: OXIDi Data unit: Description: The oxidation rate of fuel i Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Value applied: 100% Justification of the IPCC default values choice of data or description of measurement methods PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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and procedures actually applied : Any comment:

B.6.3 Ex-ante calculation of emission reductions: >> Project emission There will be no back up power using fossil fuel in the project site, therefore, the emissions due to fossil fuel consumption for the operation of the backup power equipment is not considered in the project. Therefore, the GHG emission of the project is zero, as PE y =0 tCO2e.

Baseline Emissions According to section B.6.1, the baseline emission factor of the proposed project is 0.8529tCO2e/MWh and the annual power supply to the grid by the project is 49,368.8 MWh/ year. Therefore, project emission reduction (ERy) in the first crediting period is to be calculated as follows:

BEy = 42,107 tCO2e/yr

Leakage According to the baseline and monitoring methodology AMS-I.D, Ly=0tCO2e

Emission Reductions The annual emission reduction (ERy) is calculated as follow: ERy= BEy–PEy–LEy=42,107 tCO2e/yr

B.6.4 Summary of the ex-ante estimation of emission reductions: >> The estimated project emission reductions in the first crediting period are listed in Table B-7

Table B-7 The ex-ante estimation of emission reductions

Estimation of Estimation of Estimation of Estimation of project activity baseline emissions overall emission Year leakage emissions (tonnes of CO2e) reductions (tonnes of CO2e) (tonnes of CO2e) (tonnes of CO2e) 2010 0 42,107 0 42,107 2011 0 42,107 0 42,107 2012 0 42,107 0 42,107 2013 0 42,107 0 42,107 2014 0 42,107 0 42,107 2015 0 42,107 0 42,107 2016 0 42,107 0 42,107

Total(tCO2e) 0 294,747 0 294,747

B.7 Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored: PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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>>

Data / Parameter: EGout,y Data unit: MWh Description: Annual electricity supplied to the grid by the proposed project Source of data to be used: Measured by the meter Value of data 49,368.8 Description of The supply of power to the grid by the project is measured through measurement methods national standard electricity metering instruments. The readings of and procedures to be electricity meter will be continuously measured and monthly recorded. applied: Double checking by the invoice issued by the project owner. Electricity data will be archived within the crediting period and kept for 2 years afterwards. QA/QC procedures to be According to the Technical Adiministrative Code of Electric Energy applied: Metering (DL/T448-2000), meters will be calibrated periodically. Data measured by meters will be double checked by receipt of sales. Any comment:

Data / Parameter: EGin,y Data unit: MWh Description: Electricity purchased by the project from the grid Source of data to be used: Measured by the meter Value of data 0 Description of The data will be continuously and recorded monthly. Electricity data will measurement methods be archived in crediting period and kept for 2 years afterwards. and procedures to be applied: QA/QC procedures to be According to the Technical Administrative Code of Electric Energy applied: Metering (DL/T448-2000), meters will be calibrated periodically. Any comment:

B.7.2 Description of the monitoring plan: >> The Monitoring Plan for the project is to ensure the monitoring and calculation of the project emission reductions is accurate, consistent, clear and complete during the crediting period. The details of monitoring plan are summarized as follows:

1. Monitoring Organization Prior to the start of the crediting period, a monitoring team will be organized and established by the project owner. Clear roles and responsibilities will be assigned to the team members. A CDM Manager will be appointed by the project owner, who will be in charge of issues related to CDM project. The operation and management structure is shown in Figure B/3. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Technical Department Provide technical support to the monitoring plan executors.

CDM Teams Operation Department Record the data and make a regular summary according to the requirement of CDM manager. 1. Generally organize and execute the monitoring plan. 2. Supervise the project operation related to data monitoring. Data Verifier Department 3. Keep communication with DOE Collect the receipts of electricity sales and and CDM consultant. preserve it.

Figure B/3 Monitoring organization of the Project 2. Monitoring Equipment and installation All meters installed in the project have accuracy 0.2s or 0.5s. Distribution and calibration of electric meter should be implemented according to the technical requirements of Technical administrative code of electric energy metering (DL/T448-2000).

3. Data collection and QA/QC Since the data required to be monitored is consist with the data required during project operation by the project owner and the grid company, the Parallel Operation Agreement and the Power Purchase Agreement between these two parties can be used as guidance on data collection and documentation.

Staffs in charge of data collection will be trained before operation, the qualified staff from the project owner and Grid Company will be responsible for data collecting and recording on site monthly.

The monitoring data can be double-checked by the electricity sales and purchase invoice which kept by project owner.

If the monitoring data is identified as unreasonable or erroneous measurements have been implemented, or any accidental situation occurred, the monitoring process can be taken as below: a) Referring to the Parallel Operation Agreement and the Power Purchase Agreement for implementing the monitoring plan. b) If item a is unavailable, the project owner and grid company should design a reasonable and conservation measuring method and justify this method in a manner that can be validated by DOE. c) If the project owner and grid company cannot achieve agreement in measuring method and then the electricity supplied in this month would be assumed as zero.

4. Calibration The periodical calibration and maintenance of the meters should comply with “Technical Administrative Code of Electric Energy Metering (DL/T448-2000)”, so as to ensure the precision of the meters. PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Ten days after the occurrence of the conditions below, the meters shall be tested by the designated institute commissioned by the project owner and the power grid company together: A. the error of the meter is out of the permissible limits; B. repair the malfunctioning meter.

The processes of maintenance and calibration of the meters could also follow the power purchase agreement between project owner and power grid.

5. Data management

At the end of each month, the monitoring data should be archived electronically, back up in disk and to be printed out. The project owner should keep the copy of electricity sale receipts. Other documents such as maps, diagrams and environmental assessments should be archived collectively. In order to facilitate the auditor’s reference, monitoring data should be indexed. All paper-based information and data shall have copies for backup and all data will be kept for 2 years after the end of the crediting period.

6. Monitoring At the end of every year, a monitoring report including power delivered monitoring and auditing report, emission reduction calculation report, meters maintenance and calibration records should be archived by CDM team. This monitoring report is the reliable reference for the verification of DOE. All paper- based information will be stored by the project owner.

B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion: 28/09/2009

Responsible for the application of the baseline and monitoring methodology to the project activity is: Sichuan Prade Energy Technology Co., Ltd

Ruijin Plaza, Tower 2-15, No.2 Gaoshengqiao Rd,, 610043,P.R. China Tel: +86-28-8507 6881 Fax: +86-28-8509 9725

Persons in charge:

Zhaoying [email protected] Deng Haijun [email protected] Cai Jiangjun [email protected] Tian Linan [email protected]

Above individuals determined the baseline are not as project participants.

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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity: >> 28 July 2008 , the civil works starting-up time.

C.1.2. Expected operational lifetime of the project activity: >> 20 years

C.2 Choice of the crediting period and related information:

C.2.1. Renewable crediting period

C.2.1.1. Starting date of the first crediting period: >> 01 January 2010 or the date of registration by the UNFCCC, whichever is later

C.2.1.2. Length of the first crediting period: >> 7 years, 0 month

C.2.2. Fixed crediting period:

C.2.2.1. Starting date: >> Not applicable

C.2.2.2. Length: >> Not applicable

SECTION D. Environmental impacts >> D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> The Environmental Impact Assessment was approved by the Environment Protection Bureau of Sichuan Province in December 26th, 2007.

According to the Environmental Impact Assessment Report, environmental impacts possibly caused by the proposed project and measurements adopted by the project owner are analyzed as follows:

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The surrounding air quality will be affected to some extent by the dust and particulate produced by such construction activities as dredging up, loading and unloading of the freight near warehouses, vehicle transporting, etc. But the impacts are temporary and intermittent, which will disappear after the project construction.

Noise Noise will be generated during the construction activities, such as transportation and concrete mixture. The impacts to the local residents can be neglected for the reason that the residential area, interspaced by the forest land, is far away from the transportation line, Furthermore, the impact will disappear when the construction activities ended.

Waste water Production waste water discharged by construction, mechanic cleaning &maintenance, alkaline concrete conserving; together with residential waste water, will be generated during the construction and operation of the Project.

The river, which will intake the production waste water after sedimentation treatment, will purify itself in its slow flowage part by the natural sedimentation.

The mechanic cleaning &maintenance waste water will be discharged after sedimentation and oil separation treatment which will meet the regional standard.

The alkaline concrete conserving will be discharged after neutralization. The residential waste water after being treated will not have negative impacts on the water quality.

Solid waste The solid waste includes discarded soil generated during the construction and residential garbage. Discarded soil will be piled up to the designated area, and make measure to protect the natural environment. Residential garbage generated during the construction and operation will be collected by specific staff and regularly sent to garbage disposal station, which will not have obvious impact on the environment.

Ecological impact At the project site, there is no national key protection rare endangered species. Thus the project activities will not result in the extinct or disappear of some certain species.

In summary, the Project will not have significant impacts on the environment.

D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> SECTION E. Stakeholders’ comments >> No negative and significant environmental impacts have been identified by the project participants and host country.

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E.1. Brief description how comments by local stakeholders have been invited and compiled: >> The stakeholder consultation for the project activity took place in March 3nd, 2008. The local stakeholders were invited to submit comments on the project activity by filling a questionnaire sent out by the project developer.

Table E-1 The detailed respondents’ information Total Gender Vocation Numbers Male female Cadre Government officer Farmer 30 17 13 1 2 27

The stakeholders identified for the project are the residents near the project and local government. In the investigation, 30 questionnaires are distributed and returned with 100% response rate. Content of the questionnaire mainly include:

1. How much do you know about the hydro project? 2. What’s the positive effect impact of the project to the local area? 3. What is the negative effect impact of the project to the local area? 4. Do you think the project will bring environmental impacts during construction period? 5. Do you think the project will bring economical impacts? 6. Do you support the hydro project construction? 7. Do you have any comments or suggestions?

E.2. Summary of the comments received: >> The survey received 100% participation and the investigation results are as follows:

Table E-2 Summary of stakeholder comments

No Question Option Number Ratio (%) A lot 28 93.33 How much do you know about the 1 A little 2 6.67 hydro project? Nothing 0 0 More stable electricity 30 100 What’s the positive effect impact of More job opportunity 30 100 2 the project to the local area? Improvement living 30 100 standard Waste water 0 0 What is the negative effect impact Noise 0 0 3 of the project to the local area? Land use 2 6.67 No effect 28 93.33 Do you think the project will bring A lot 0 0 4 environmental impacts during A little 4 13.33 construction period? No effect 26 86.67 A lot 0 0 Do you think the project will bring 5 A little 5 16.67 economical impacts? No effect 25 83.33 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03.2

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Do you support the hydro project Yes 30 100 6 construction? No 0 0 Do you have any comments or 7 suggestions?

E.3. Report on how due account was taken of any comments received: >> The project owner takes account the problems provided in the questionnaire as following: 1. The project owner takes measurements to avoid construction during rest-time and night-time. 2. Water and soil protection perform according to the Environmental Impact Assessment Report. 3. The project constructs strictly according to Construction Design and insures construction safety.

In conclusion, the project obtained support from residents and local government and modify on design, construction and operation of the project is not needed.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Project Owner:

Organization: Luding County Tianding Hydro Electricity Development Co. Ltd..

Street/P.O.Box: Xiasong Village, Town, Luding County,

Building: City: Ganzi zhou State/Region: Sichuan Province Postfix/ZIP: 627850 Country: People’s Republic of China Telephone: 0836-3124688 FAX: 0836-3124688 E-Mail: URL: Represented by: Liu zhongsheng Title: Manager Salutation: Mr. Last Name: Liu Middle Name: First Name: zhongsheng Department: Mobile: +86 13990483059 Direct FAX: 0836-3124688 Direct tel: 0836-3124688 Personal E-Mail: [email protected]

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Project Buyer:

Organization: Vitol S.A. Street/P.O.Box: Arve 28, P.O. Box 384, 1211 Building: Boulevard Du Pont-D City: Geneva State/Region: Postfix/ZIP: 3841211 Country: Switzerland Telephone: +41(0)22 322 11 11 FAX: +41(0)22 781 66 11 E-Mail: [email protected] URL: Represented by: David Fransen Title: Marketing Director Salutation: Mr. Last Name: Fransen Middle Name: First Name: David Department: Mobile: Direct FAX: +41(0)22 781 66 11 Direct tel: +41(0)22 322 11 11 Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

This project will not receive any public funding. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.2

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Annex 3

BASELINE INFORMATION

1. Calculation of Operating Margin (OM) Emission Factor

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CDM – Executive Board Page31 Table A3-1 Operating Margin Emission Factor of CCPG in 2005 Emission Average Low CO Emission Chong EF Oxidation 2 Fuel Unit Jiangxi Henan HubeiHunan Sichuan Total Factor Calorific Value (tCO2e) qing (tC/TJ) (%) (kgCO2/TJ) (MJ/t,km3) L=G*J*K/100000 G=A+B+C+D+E A B C D E F H I J K L=G*J*K/10000 +F 4 Raw Coal 10 t 1869.29 7638.87 2732.15 1712.27 875.4 2999.77 17827.75 25.8 100 87300 20908 325404287.18 4 Cleaned Coal 10 t 0.02 0.02 25.8 100 87300 26344 459.97 Other Washed 104 t 138.12 89.99 228.11 8363 1665408.07 Coal 25.8 100 87300 4 Coke 10 t 25.95 105 130.95 29.2 100 95700 28435 3563450.03 8 3 Coke Oven Gas 10 m 1.15 0.36 1.51 12.1 100 37300 16726 94205.85 8 3 Other Gas 10 m 10.2 3.12 13.32 12.1 100 37300 5227 259696.18 4 Crude Oil 10 t 0.82 0.36 1.18 20 100 71100 41816 35082.79 4 Gasoline 10 t 0.02 0.02 0.04 18.9 100 67500 43070 1162.89 4 Diesel Oil 10 t 1.3 3.03 2.39 1.39 1.38 9.49 20.2 100 72600 42652 293861.19 4 Fuel Oil 10 t 0.64 0.29 3.15 1.68 0.89 2.22 8.87 21.1 100 75500 41816 280035.48 4 LPG 10 t 0 17.2 100 61600 50179 0.00 4 Refinery Gas 10 t 0.71 3.41 1.76 0.78 6.66 15.7 100 48200 46055 147842.08 8 3 Natural Gas 10 m 3 3 15.3 100 54300 38931 634185.99 Other oil 104 t 0 41816 0.00 products 20 100 75500 Other coke 104 t 1.5 1.5 28435 40818.44 products 25.8 100 95700 Other energy 104 t 2.88 1.74 32.8 37.42 0 0 0 0 0.00 Total 332420496.13 Data Source: China Energy Statistics Yearbook 2006

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Table A3-2 Fuel-fired Electricity Generation of CCPG for Year 2005 Electricity Generation Electricity Generation Internal Power Consumption Rate Supplied Electricity Province (108 kWh) (MWh) (%) (MWh) Jiangxi 300 30000000 6.48 28056000 Henan 1315.9 131590000 7.32 121957612 Hubei 477 47700000 2.51 46502730 Hunan 399 39900000 5.00 37905000 Chongqing 175.84 17584000 8.05 16168488 Sichuan 372.02 37202000 4.27 35613475 Total 286203305 Data Source: China Electric Power Yearbook 2006

Table A3-3 Calculation on Simple OM Emission Factor of CCPG in 2005 In year 2005

Total CO2 emissions of CCPG (tCO2e) 332420496.1 Total supplied electricity to CCPG (MWh) 286203304.6

EFOM, Simple, 2005 1.16148378

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CDM – Executive Board Page33 Table A3-4 Operating Margin Emission Factor of CCPG in 2006

Oxidati Emission Average Low CO2 Emission Chong Sichua EF Fuel Unit Jiangxi HenanHubei Hunan Total on Factor Calorific Value (tCO2e) qing n (tC/TJ) (%) (kgCO2/TJ) (MJ/t,km3) L=G*J*K/100000

A B C D E F G=A+B+C+D+E H I J K L=G*J*K/10000

4 Raw Coal 10 t 1926.02 8098.01 3179.79 2454.48 1184.3 3285.22 20127.82 25.8 100 87300 20908 367386738.07 4 Cleaned Coal 10 t 5.79 5.79 25.8 100 87300 26344 133160.23 4 Other Washed Coal 10 t 4.51 104.12 8.59 79.21 196.43 25.8 100 87300 8363 1434115.59 5 Briquette 10 t 0.01 0.01 26.6 100 87300 20980 183.16 4 Coke 10 t 17.23 0.32 17.55 29.2 100 95700 28435 477575.78 8 3 Coke Oven Gas 10 m 0.52 1.07 4.24 0.38 0.01 6.22 12.1 100 37300 16726 388053.24 8 3 Other Gas 10 m 12.69 3.95 1.7 4.36 0.01 22.71 12.1 100 37300 5227 442770.28 4 Crude Oil 10 t 0.49 0.49 20 100 71100 41816 14568.28 4 Gasoline 10 t 0.01 0.01 18.9 100 67500 43070 290.72 4 Diesel Oil 10 t 0.91 2.23 1.41 1.78 0.96 7.29 20.2 100 72600 42652 225737.42 4 Fuel Oil 10 t 0.51 1.26 1.31 0.8 0.57 3.49 7.94 21.1 100 75500 41816 250674.38 4 LPG 10 t 0 17.2 100 61600 50179 0.00 4 Refinery Gas 10 t 0.86 8.1 1 0.97 10.93 15.7 100 48200 46055 242629.71 8 3 Natural Gas 10 m 0.28 0.16 18.63 19.07 15.3 100 54300 38931 4031308.94 4 Other oil products 10 t 0 20 100 75500 41816 0.00 4 Other coke products 10 t 0.01 0.01 25.8 100 95700 28435 272.12 4 Other energy 10 t 17.45 37.36 31.55 18.29 29.35 134 0 0 0 0 0.00 Total 375028077.9 Data Source: China Energy Statistical Yearbook 2007

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Table A3-5 Fuel-fired Electricity Generation of CCPG for Year 2006 Electricity Generation Electricity Generation Internal Power Consumption Rate Supplied Electricity Province (108 kWh) (MWh) (%) (MWh) Jiangxi 344.49 34449000 6.17 32323497 Henan 1512.35 151235000 7.06 140557809 Hubei 548.41 54841000 2.75 53332873 Hunan 464.08 46408000 4.95 44110804 Chongqing 234.87 23487000 8.45 21502349 Sichuan 441.93 44193000 4.51 42199896 Total 334027226

Data Source: China Electric Power Yearbook 2007

Central China Power Grid has electricity import from Northwest Power Grid(MWh) 3028950

Northwest Power Grid 2006 EFOM, Simple, 2006 0.99148

Table A3-6 Calculation on Simple OM Emission Factor of CCPG in 2006

In year 2006

Total CO2 emissions of CCPG (tCO2e) 378031221.3

Total supplied electricity to CCPG (MWh) 337056176.4

EFOM, Simple, 2006 1.121567405

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CDM – Executive Board Page35 Table A3-7 Operating Margin Emission Factor of CCPG in 2007 Average Low Emission CO Emission EF Oxidation Calorific 2 Chong Factor (tCO e) Fuel Unit Jiangxi HenanHubei Hunan Sichuan Total Value 2 qing (kgCO (tC/TJ) (%) 2 (MJ/t,km3) L=G*J*K/100000 /TJ) G=A+B+C A B C D E F H I J K L=G*J*K/10000 +D+E+F 4 Raw Coal 10 t 2200.57 9357 3479.81 2683.81 1547.7 3239 22507.89 25.8 100 87300 20908 410829403.68 4 Cleaned Coal 10 t 3.07 3.8 6.87 25.8 100 87300 26344 157998.40 4 Other Washed Coal 10 t 0.04 87.16 2.06 96.42 185.68 25.8 100 87300 8363 1355630.93 Briquette 104 t 0.01 0.01 26.6 100 87300 20980 183.16 4 Coke 10 t 0 29.2 100 95700 28435 0.00 8 3 Coke Oven Gas 10 m 0.08 2.61 0.25 0.31 0.91 4.16 12.1 100 37300 16726 259534.00 8 3 Other Gas 10 m 29.17 25.79 24.69 23.98 103.63 12.1 100 37300 5227 2020444.06 4 Crude Oil 10 t 0.43 0.43 20 100 71100 41816 12784.41 4 Gasoline 10 t 0.04 0.01 0.05 18.9 100 67500 43070 1453.61 4 Diesel Oil 10 t 0.98 3.21 2.51 2.83 1.93 11.46 20.2 100 72600 42652 354862.93 4 Fuel Oil 10 t 0.42 1.25 1.33 0.63 0.64 1.74 6.01 21.1 100 75500 41816 189742.19 4 LPG 10 t 0 17.2 100 61600 50179 0.00 4 Refinery Gas 10 t 1.43 10.01 0.97 0.7 13.11 15.7 100 48200 46055 291022.47 8 3 Natural Gas 10 m 0.12 0.18 0.2 1.87 2.37 15.3 100 54300 38931 501006.93 4 Other oil products 10 t 0 20 100 75500 41816 0.00 4 Other coke products 10 t 0 25.8 100 95700 28435 0.00 4 Other energy 10 t 23.43 63.65 35.95 29.46 23.21 175.7 0 0 0 0 0.00 Total 415974066.76 Data Source: China Energy Statistical Yearbook 2008

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CDM – Executive Board Page36 Table A3-8 Fuel-fired Electricity Generation of CCPG for Year 2007 Province Electricity Generation Electricity Generation Auxiliary Power Ratio Supplied Electricity

(108 kWh) (MWh) (%) (MWh) Jiangxi 421 42100000 7.72 38849880 Henan 1773 177300000 7.55 163913850 Hubei 609 60900000 6.69 56825790 Hunan 542 54200000 7.18 50308440 Chongqing 288 28800000 9.2 26150400 Sichuan 451 45100000 8.68 41185320 Total 377233680 Data Source: China Electric Power Yearbook 2008

Central China Power Grid has electricity import from Northwest Power Grid(MWh) 3005400

Northwest Power Grid 2007 EFOM, Simple, 2006 1.01129

Table A3-9 Calculation on Simple OM Emission Factor of CCPG in 2007

In year 2007

Total CO2 emissions of CCPG (tCO2e) 419013397.7 Total supplied electricity to CCPG (MWh) 380239080

EFOM, Simple, 2006 1.101974

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Table A3-10 Operating Margin Emission Factor of CCPG (Weighted Average) Item Unit 2005 2006 2007 Weighted Average

Total CO2 emission tCO2e 346035810 360323575 408776270

Electricity delivered to the grid MWh 249074186 286203305 337056176

Operation margin(OM) tCO2e/MWh 1.38929 1.25898 1.212784 1.1255

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CDM – Executive Board Page38 2. Calculation of Build Margin (BM) Emission Factor

Step 1. Calculating the share of CO2 emissions of different fuel-fired power plants in the total CO2 emissions

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CDM – Executive Board Page39 Table A3-11 Share of emission from coal, oil and gas fuel in electricity generation in CCPG Emission Chong Average Low Oxidation CO Emission Jiangxi Henan Hubei Hunan Sichuan Total Factor 2 qing Calorific Value (%) (tC/TJ) (tCO2e) Fuel Unit A B C D E F G=A+…+F H I J K=G*H*I*J/100000 Raw Coal 104 t 2200.57 9357 3479.81 2683.81 1547.7 3239 22507.89 20908 kJ/kg 87300 100% 410829404 Cleaned Coal 104 t 0 3.07 0 0 3.8 0 6.87 26344 kJ/kg 87300 100% 157998 Other Washed Coal 104 t 0.04 87.16 0 2.06 96.42 0 185.68 8363 kJ/kg 87300 100% 1355631 Briquette 105 t 0.01 0.01 20908 kJ/kg 87300 100% 183 Coke 104 t 0 0 0 0 0 0 0 28435 kJ/kg 95700 100% 0 Other coke products 104 t 0 28435 kJ/kg 95700 100% 0 Subtotal 412343216 Crude Oil 104 t 0 0.43 0 0 0 0 0.43 41816 kJ/kg 71100.0 100% 12784 Gasoline 104 t 0 0 0 0.04 0.01 0 0.05 43070 kJ/kg 67500 100% 1454 Diesel Oil 104 t 0.98 3.21 2.51 2.83 1.93 0 11.46 42652 kJ/kg 72600 100% 354863 Fuel Oil 104 t 0.42 1.25 1.33 0.63 0.64 1.74 6.01 41816 kJ/kg 75500 100% 189742 Other oil products 104 t 0 0 0 0 0 0 0 41816 kJ/kg 75500 100% 0 Subtotal 558843 Natural Gas 107 m3 0 1.2 1.8 0 2 18.7 23.7 38931 kJ/m3 54300 100% 501007 Coke Oven Gas 107 m3 0.8 26.1 2.5 3.1 9.1 0 41.6 16726 kJ/m3 37300 100% 259534 Other Gas 107 m3 291.7 257.9 0 246.9 0 239.8 1036.3 5227 kJ/m3 37300 100% 2020444 LPG 107 m3 0 0 0 0 0 0 0 50179 kJ/kg 61600 100% 0 Refinery Gas 107 m3 1.43 10.01 0.97 0.7 0 0 13.11 46055 kJ/kg 48200 100% 291022 Subtotal 3072007

Total 415974066 Data Source: λ =99.13%, λ =0.13%, λ =0.74%。 Coal,y Oil,y Gas,y

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Step 2. Calculating the emission factor of fuel-fired power technology

Table A3-12 Parameters used for calculating fuel-fired emission factor Emission Factor Efficiency of Emission Factor of Fuel Oxidatio Parameter Power Supply (tCO2e/MWh) (kgtCO2e/TJ) A B C D=3.6/A/1000000*B*C Coal-fired EF 38.10% 87300 1 0.8249 Power Plant Coal,Adv Gas-fired EF 49.99% 75500 1 0.5437 Power Plant Gas,Adv Oil-fired EF 49.99% 54300 1 0.3910 Power Plant Oil,Adv

EF Thermal =λCoal*EF Coal,Adv +λOil* EF Oil, Adv +λGas* EF Gas,Adv = 0.8213 tCO2/MWh

Table A3-13 Installed Capacity of CCPG in 2007

Installed capacity Unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Total Fuel-fired MW 9,270 38,540 13,040 13,360 6,370 12,000 92,580 Hydro MW 3,570 2,740 24,020 9,220 2,240 19,860 61,650 Nuclear MW 0 0 0 0 0 0 0 Wind & Others MW 0 0 10 17 24 0 51 Total MW 12,840 41,28037,070 22,597 8,634 31,860 154,281 Data Source: China Electric Power Yearbook 2008

Table A3-14 Installed Capacity of CCPG in 2006 Installed capacity Unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Total

Fuel-fired MW 6,568 32,603 11,623 10,715 5,594 9,555 76,658

Hydro MW 3,288 2,553 18,320 8,648 1,979 17,730 52,518

Nuclear MW 0 0 0 0 0 0 0

Wind & Others MW 0 0 0 17 24 0 41

Total MW 9,856 35,156 29,943 19,380 7,597 27,285 129,217 Data Source: China Electric Power Yearbook 2007

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Table A3-15 Installed Capacity of CCPG in 2005 Installed capacity Unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Total Fuel-fired MW 5,906 26,267.89,526.3 7,211.6 3,759.5 7,496 60,167.2 Hydro MW 3,019 2,539.917,888.9 7,905.1 1,892.7 14,959.6 48,205.2 Nuclear MW 0 0 0 0 0 0 0 Wind & Others MW 0 0 0 0 24 0 24

Total MW 8,925 28,807.727,415.2 15,116.7 5,676.2 22,455.6 108,396.4 Data Source: China Electric Power Yearbook 2006

Step 3. Calculating the EFBM,y of CCPG

Table A3-16 Newly Added Installed Capacity from Year 2005-2007 2005 2006 2007 Percentage of newly added D=C-A A B C fuel-fired plants Fuel-fired (MW) 60,167.2 76,658 92,580 32,412.8 70.64% Hydro (MW) 48,205.2 52,518 61,650 13,444.8 29.30% Nuclear(MW) 0 0 0 0 0.00% Wind & Others(MW) 24 41 51 27 0.06% Total(MW) 108,396.4 129,217 154,281 458,84.6 100.00%

Percentage of installed 70.26% 83.75% 100% capacity to 2007

EFgrid,BM,y = 0.8213 *70.64% = 0.5802 tCO2/MW

Table A3-17 Baseline emission factor of CCPG (tCO2/MWh)

Operating margin emission factor A 1.1255

Build margin emission factor B 0.5802

Combined emission factor C=0.5*A+0.5*B 0.8529

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Annex 4

MONITORING INFORMATION

There is no more information.

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