Gansu Nanyangshan Micro Hydro Power Project Project Profile

Gansu Nanyangshan Micro Hydro Power Project Gold02/02/2011 Standard – Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 Contents

1.0 Project Summary 1.1 Project Snapshot

2.0 Project Benefits 2.1 Key Achievements

3.0 Background

4.0 Technical Details

5.0 How the project meets Climate Friendly’s principles

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 1.0 Project Summary

The project involves the construction and operation of a run- of-the-river hydropower station at the location of Hezheng County, Linxia Hui , Gansu Province.

Annual electricity generation is 5,944 MWh in 2008 and 6,073 MWh in 2009 respectively. Electricity generated by the project is transmitted to Northwest China Power Grid.

The project activity contributes to sustainable development through the reduction of GHG emissions and other pollutants associated with the standard practice of fossil fuel-fired power plants in the region. It also contributes to the alleviation of power shortage by contributing to a more stable power supply, promotes the local economy and improves the livelihood of the locals by creating 15 permanent local jobs.

The project displaces 5,000 tonnes of CO2 emissions per year.

1.1 Project Snapshot

Gansu Nanyangshan 1.26MW Name: Hydropower Project

Hezheng County, Linxia Hui Location: Autonomous Prefecture, Gansu Province, China

Coordinates: E 103°17’48” / N 35°26’32”

Type: Hydro

Standard: Gold Standard (GS)

Volume: 650 VERs

Vintage: 2009

Status: Validated, Verified and Issued

Nanyang Water Conservancy and Project Operator: Hydropower Development Co., Ltd

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 2.0 Project Benefits

Environmental – The generation of hydroelectric power reduces the dependence on fossil fuel based electricity, leading to a reduction in greenhouse gas emissions. Importantly, hydroelectric power is clean energy and does not produce any greenhouse gases or other local air pollutants. In addition, local vegetation will be recovered after construction period to reduce soil and water loss.

Social – The project improves access to electricity for local households and businesses, and facilitates the transition to the use of electric appliances instead of fuel wood for cooking and heating. This delivers benefits for local women by substantially reducing health problems associated with the physically demanding chore of collecting and chopping wood, as well as living and working in a smoky environment.

Economic – Through improved energy supply and infrastructure development, the project encourages new investments in the rural region and also provides direct and indirect employment opportunities. This project provided 50 jobs during the construction phase and 15 permanent jobs during the operation period.

2.1 Key Achievements

R Reduces GHG emissions

R Technology and know-how transfer

R Reduces local air pollution of SO2 and NO2

R Promotes alternative energy in China

R Supports local economic development

R Secures electricity supply

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 3.0 Background

The project is located on the Nangyang Canal within the administrative boundary of Hezheng County, 22 km from of Linxia Hui Autonomous Prefecture, Gansu Province.

The Nanyang Canal was built mainly for irrigation by taking water from the Yatang Reservoir. Both the Nanyang Canal and Yatang Reservoir are projects sponsored by the government.

The area is one of the poorest in China with residents earning an average annual income of 2000 RMB (approximately 292 USD).

The project activity contributes to sustainable development in the ethnic minority area based on indicators of local environmental sustainability, social sustainability & development, and economic & technological development.

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 4.0 Technical Details

The main structure consists of a forebay tank, a set of pressure pipelines, a power house, a tailrace, and an on-site booster station.

The project takes water from the Nanyang Canal where a 55m water head is formed to take advantage of the natural slope of the Nanyang Mountain.

It then uses a forebay tank (5mx 9.27m) to direct the river flow into the pipeline. The pressure pipeline adds up to 273m to the total length.

Finally the water passes through two hydroturbine generator units where the electricity is generated. The water is discharged into the Nanyang Canal through a tailrace.

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0 5.0 How the project meets Climate Friendly’s principles

Climate Friendly only invests in projects that: Principles How this project meets these criteria Address the root cause of climate change P Hydro power doesn’t emit greenhouse gases and replaces fossil-fuel based electricity Are permanent P Emissions reductions can’t be reversed

Are additional P Carbon finance required to overcome financial barriers Are verifiable P Verified by the Gold Standard Foundation Are project based P Not allowance-based under compliance requirements Contribute to sustainable development P Reduces pollution and creates employment Are synchronous P Emissions reductions have already occurred Are exclusive P Robust assurance process ensures no double counting

02/02/2011 Gansu Nanyangshan Micro Hydro Power Project - Project Profile version1.0