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
1 Revision history of this document
Version Date Description and reason of revision Number 01 21 January Initial adoption 2003 02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. • As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at
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SECTION A. General description of small-scale project activity
A.1 Title of the small-scale project activity:
“Energocor small-scale hydro bundled project in Armenia” 02/07/2009, Version 02
A.2. Description of the small-scale project activity:
The proposed project activity involves implementation and operation of 5 small hydroelectric grid connected renewable energy projects with total capacity 6.81 MW. The SHPPs will be located Gegharkunik and Vayots Dzor regions of Armenia. The projects are promoted by Energocor LTD - the bundling agent for the project. The purpose of bundling the nine project activities is to reduce transaction costs and documentation preparation costs for each of the small scale power plants.
The electricity generated by the small hydropower plants will be sold to the Armenian Electricity Network (AEN). The Table 1 shows the ownership, location capacity and annual generation of Small Hydropower Plants. SHPP name Location Ownership Installed Annual generation. mln capacity. MW kWh 1. Ayrk-1 SHPP Gegharkunik Lusakunk 0.361 1.212 region. irrigation LTD canal on Ayrk river 2. Ayrk-2 SHPP Gegharkunik Lusakunk 0.311 1.898 region. irrigation LTD canal on Ayrk river 3. Avazan SHPP Gegharkunik Lusakunk 0.291 1.83 region. Avazan LTD river 4. Erik SHPP Gegharkunik Erik SHPP 3.5 15 region. Getik LTD River 5. Jermuk-2 SHPP Vayots Dzor Jermuki 2.35 10.24 region. Arpa river Hydrotech LTD Total 6.81 30.180
Purpose of the project activity The main purpose of the project activity is generation of clean hydroelectric energy and contribution to climate change mitigation efforts. Contribution to sustainable development The project will generate renewable and clean electricity and thus, contributes to sustainable development which includes: 1. Social sustainability The project activity will create jobs opportunities in the area with very high unemployment level for skilled and unskilled labor during the construction and operation of the plant (about 50). 3 The implementation of the project will benefit the Armenia through development of additional sustainable generation capacity not dependant on the imported energy sources, which will add to the independence of the energy system of the Republic as well. Implementation of the project will also contribute to development of experience and intellectual capacity among the local construction workers that will go through a set of trainings, organized by the Project Host during the project implementation, which will help them to become a skilled work force in future as well. The trainings are not contractually considered. 2. Environmental sustainability The construction of the SHPPs will not affect the quality of the river water, as well as the well being of the local population. Moreover, the project activity will have a positive impact on the environment as it will displace part of electricity generated by the conventional power plants in the national grid, thus avoid environmental pollution caused by the burning of fossil fuel and lead to an increased sustainability in the power generation sector. Total expected CO2 emission reduction from the proposed project is estimated to the amount of about 94 000 tCO2 over the ten year crediting period. 3. Economic sustainability The implementation of the project will increase funds for municipality and state budget due to tax collection. The project implementation will also generate employment possibilities for the local population which lacks available workplaces in their region. During the project implementation locally produced equipment will be used which will benefit the renewable energy technology an intellectual capacity development in Armenia. The Project complies with the Energy Strategy of Republic of Armenia which promotes the development of new renewable energy technologies and capacities. In addition, implementation of the project will also contribute to the sustainable development of Armenia through reducing the dependence on imported energy carriers, such as natural gas, thereby reducing the outflow of capital from Armenia to other countries.
A.3. Project participants: Name of Party involved (*) Private and/or public Kindly indicate if the Party ((host) indicates a host Party) entity(ies) involved wishes to be project participants (*) considered as project (as applicable) participant (Yes/No)
Republic of Armenia (host) Private entity: Energocor LTD, the bundling agent Republic of Armenia (host) Private entity: Lusakunk LTD No Republic of Armenia (host) Private entity: Erik SHPP LTD No Republic of Armenia (host) Private entity: Jermuki No Hydrotech LTD Germany Private entity: EnBW Trading No GmbH (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required.
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A.4. Technical description of the small-scale project activity: 1. Ayrk-1 SHPP is planned for construction in Gegharkunik region of Armenia, on the irrigation canal on Ayrk River. The hydro-energy characteristics of “Ayrk”1 SHPP are as follows: • Gross head – 90,4 m • Designed outflow – 0,50 m3/sec. • Design capacity –0,361 MW • Average annual energy production – 1.212 million kWh • The number of units – 2
2. Ayrk-2 SHPP is planned for the construction on the irrigation channel of Ayrk river and will use the energy potential of water released from Ayrk-1 SHPP. The hydro-energy characteristics of Ayrk-2 SHPP are as follows: • Gross head –77,7 m • Designed outflow – 0,50 m3/sec. • Design capacity –0,311 MW • Average annual energy production – 1,47 million kWh • The number of units – 2 3. Avazan SHPP is planned for construction in Gegharkunik region on Avazan River. The hydro-energy characteristics of “Avazan”1-2 SHPPs are as follows: • Gross head – 72.8 m • Designed outflow – 0.5 m3/sec, • Design capacity – 0,291 MW, • Average annual energy generation – 1.83 million kWh, • The number of units – 2. 4. Erik SHPP is planned for construction in Gegharqunik region of Armenia on the Getik river. The hydro-energy characteristics of “Erik ” SHPPs are as follows: • Gross head – 102.3 m • Designed outflow – 3.0 m3/sec • Generation capacity – 3.5 MW • Average annual power generation – 15 million kWh • The number of units – 3. 5. Jermuk-2 SHPP is Small Hydropower Plant (SHPP) is planned for construction on Arpa River in Vayots Dzor region of Armenia. The main characteristics of the Jermuk-2 SHPP are: • Gross head – 81.95 m, • Design outflow – 4.8 m3/sec, • Generation capacity – 2.35 MW, • Average annual electric energy generation – 10.2 million kWh, • The number of units – 2.
A.4.1. Location of the small-scale project activity:
A.4.1.1. Host Party(ies): Republic of Armenia
A.4.1.2. Region/State/Province etc.:
Ayrk 1-2 SHPPs - Gegharkunik Marz Avazan SHPP - Gegharkunik Marz 5 Erik SHPP - Gegharkunik Marz Jermuk-2 SHPP – Vayots Dzor Marz
A.4.1.3. City/Town/Community etc:
Ayrk 1-2 SHPPs – Vardenis community Avazan SHPP - Avazan village Erik SHPP – Martuni village Jermuk-2 SHPP – Jermuk City
A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity :
Ayrk-1,2 and Avazan SHPPs
Erik SHPP
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Jermuk SHPP
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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: The project activity utilizes the hydro potential of for power generation and exports the generated power to the grid. According to small-scale CDM modalities the project activity falls under Type – I – Renewable Energy Projects and Category I-D – Grid connected renewable electricity generation. The project uses run-of-river hydropower technology which converts mechanical energy available in the water flow into electrical energy using hydro turbines and generators. This kind of technology is standard for the small scale hydropower and widely used in the world for many years The equipment used in the project will be developed and manufactured locally as well as imported from China. .
A.4.3 Estimated amount of emission reductions over the chosen crediting period:
Table A4. Ayrk-1 SHPP Year Estimation of emission reductions (tones of CO2)
01/09/2009-30/09/2010 377,33 8 01/09/2010-30/09/2011 377,33 01/09/2011-30/09/2012 377,33 01/09/2012-30/09/2013 377,33 01/09/2013-30/09/2014 377,33 01/09/2014-30/09/2015 377,33 01/09/2015-30/09/2016 377,33 01/09/2016-30/09/2017 377,33 01/09/2017-30/09/2018 377,33 01/09/2017-30/09/2019 377,33 Total estimated reductions (tonnes of CO2) 3773,3 Total number of crediting years 10 Annual average over the crediting period 377,33 of estimated reductions (tonnes of CO2)
Table A5. Ayrk-2 SHPP Year Estimation of emission reductions (tones of CO2)
01/09/2009-30/09/2010 591 01/09/2010-30/09/2011 591 01/09/2011-30/09/2012 591 01/09/2012-30/09/2013 591 01/09/2013-30/09/2014 591 01/09/2014-30/09/2015 591 01/09/2015-30/09/2016 591 01/09/2016-30/09/2017 591 01/09/2017-30/09/2018 591 01/09/2017-30/09/2019 591 Total estimated reductions (tonnes of CO2) 5 910 Total number of crediting years 10 Annual average over the crediting period 591 of estimated reductions (tonnes of CO2)
Table A6. Avazan SHPP Year Estimation of emission reductions (tones of CO2)
01/09/2009-30/09/2010 569 01/09/2010-30/09/2011 569 01/09/2011-30/09/2012 569 01/09/2012-30/09/2013 569 01/09/2013-30/09/2014 569 01/09/2014-30/09/2015 569 01/09/2015-30/09/2016 569 01/09/2016-30/09/2017 569 01/09/2017-30/09/2018 569 01/09/2017-30/09/2019 569 Total estimated reductions (tonnes of CO2) 5 690 Total number of crediting years 10 Annual average over the crediting period 569 of estimated reductions (tonnes of CO2)
Table A7. Erik SHPP Year Estimation of emission reductions (tones of CO2)
9 01/09/2009-30/09/2010 4669,95 01/09/2010-30/09/2011 4669,95 01/09/2011-30/09/2012 4669,95 01/09/2012-30/09/2013 4669,95 01/09/2013-30/09/2014 4669,95 01/09/2014-30/09/2015 4669,95 01/09/2015-30/09/2016 4669,95 01/09/2016-30/09/2017 4669,95 01/09/2017-30/09/2018 4669,95 01/09/2017-30/09/2019 4669,95 Total estimated reductions (tonnes of CO2) 46699,5 Total number of crediting years 10 Annual average over the crediting period 4669,95 of estimated reductions (tonnes of CO2)
Table A8. Jermuk-2 SHPP Year Estimation of emission reductions (tones of CO2)
01/09/2009-30/09/2010 3188,02 01/09/2010-30/09/2011 3188,02 01/09/2011-30/09/2012 3188,02 01/09/2012-30/09/2013 3188,02 01/09/2013-30/09/2014 3188,02 01/09/2014-30/09/2015 3188,02 01/09/2015-30/09/2016 3188,02 01/09/2016-30/09/2017 3188,02 01/09/2017-30/09/2018 3188,02 01/09/2017-30/09/2019 3188,02 Total estimated reductions (tonnes of CO2) 31880.2 Total number of crediting years 10 Annual average over the crediting period 3188.02 of estimated reductions (tonnes of CO2)
A.4.4. Public funding of the small-scale project activity: Total funding required for the project does not include any public funding from Annex I countries. Hence, the project proponents hereby confirm that public funding from parties included in Annex -I is not involved in 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 the Appendix C of the Simplified Methodologies and Procedures for the small-scale CDM, this Project activity is not a debundled component of a larger project activity because there is not a registered small- scale CDM project activity or an application to register another small-scale CDM project: • With the same project participants • In the same project category and technology/measure; • Registered within the previous 2 years; • Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. Hence, the project is eligible as a small-scale CDM project and can use the simplified modalities and procedures for small-scale CDM project activities.
10 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:
Type I: Renewable Energy Projects AMS-I.D. ver.13 ‘Grid connected renewable electricity generation’
B.2 Justification of the choice of the project category:
As per the provisions of simplified modalities and procedures for small scale CDM project activities (version 13), Type I. D “comprises renewable energy generation units, such as photovoltaics, hydro, tidal/wave, wind, geothermal, and renewable biomass, that supply electricity to and/or displace electricity from an electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit. If the unit added has both renewable and non-renewable components (e.g. a wind/diesel unit), the eligibility limit of 15 MW for a small-scale CDM project activity applies only to the renewable component. If the unit added co-fires fossil fuel, the capacity of the entire unit shall not exceed the limit of 15 MW. Project activity meets the applicability conditions of the methodology in following manner: 1. The project activity consists of 5 small-hydro power plants. Thus, the project activity does not consist of a combined heat and power (co-generation) system. The project will export the generated power to the grid with domination of fossil fuel generating units. 2. The installed capacity of the proposed project is only 6.81 MW, which is less than the qualifying capacity of 15 MW. The capacity of the project will not increase beyond 15 MW.
B.3. Description of the project boundary:
According to methodology AMS-ID/(ver.13), the project boundary encompasses the physical, geographical site of the renewable electricity generation source. Hence, the project boundary is the 10.5 hectare area where the powerhouse and transmission line is placed including the connection point with AEN – Substation.
B.4. Description of baseline and its development:
According to “Energy Sector Development Strategies in the Context of Economic Development in Armenia”1 adopted by the Government of Armenia in August 2005, modernizing and replacing the generating capacity is essential since: • 38% of Armenian installed capacity has been in operation for more than 30 years; • The primary equipment at TPPs has reached 200 thousand hours level and does not correspond to international standards in terms of technical, economic and ecologic criteria;
1 http://minenergy.am/files/politic/Razmavarutyun%20eng.doc 11 • 70 % of the installed equipment at HPPs has been in operation for more than 30 years, and 50% for more than 40 years. The same document indicates that the capacity additions planned for 2005-2010 will include a mix of thermal power plants (capacity additions to the two existing Yerevan and Hrazdan plants) and new hydro and wind plants. The following additions to the grid are currently planned: • gas fired addition to the Yerevan power plant 208 MW • gas fired addition to the Hrazdan power plant 440 MW • small hydro plants 70 MW • Meghri hydro plant 140 MW • wind plants 100 MW For the period 2010-16 the planned capacity additions are: • Loriberd hydro plant 60 MW • small hydro plants 65 MW • wind plants 200 MW In total the plan expects the addition of 1,256 MW of thermal power plants and 635 MW of renewable energy, of which the planned addition of 300 MW wind power plants by 2016 appears to be quite optimistic, given the fact that currently no private wind farms are installed in Armenia. If the plans are implemented and the Armenian nuclear power planned is phased out as envisaged, then the Armenian energy mix would look as follows in 2016: thermal power plants would contribute to 65.05% of total capacity while carbon- free generation would contribute to 34.95%. The construction of Hrazdan-5 TPP and New Unit in Yerevan TPP has been started in 20082 and it is expected that these power plants will be operational in 2010. Identification of Baseline scenario There are only a few baseline scenarios in addition to the proposed project activity that realistic and credible in the context of the Armenian Grid. Scenario 1. The continuation of current activities This scenario represents the continuation of current practices, which includes generation of electric energy with significant domination of fossil fuel – natural gas, which currently accounts to around 30% of the total energy generation mix (detailed information about generation and installed capacity in Armenian grid is presented in the table below B1). Besides, there are significant generation capacity additions through one unit of Hrazdan TPP and also on additional unit of Yerevan TPP. This scenario option is in compliance with Armenian relevant laws and regulations3, and without financial and other barriers. Table B1.4
2 http://www.minenergy.am/show_category.php?language=2&id=13&c= http://www.armrusgasprom.am/page.php?al=razdan5 3 Energy Law of Armenia, http://www.parliament.am/law_docs/210301HO148eng.pdf?lang=eng 4 http://www.psrc.am/en/?nid=297 (I-III quarters), http://www.psrc.am/am/?nid=297 (IV quarter) 12 Name Fuel Capacity, Generation Delivery (2007), MWh (2007),GWh GWh
ANPP Hydro 880 2,553.4 2347.8
Hrazdan TPP Gas 1.110 1,131.6 1048.9 Yerevan TPP Gas 556 357.1 304.9 International Hydro 400 521.3 512.4 Energy Corporation Vorotan Cascade Hydro 400 1030 1021.3 Dzora SHPP Hydro 25 85.5 83.8 Small SHPPs Hydro 51 215.8 210.7 Lori-1 Wind Power Wind 2.64 2.9 2.7 Plant Imports 418.7
Future capacity additions for are presented in the table B2. Table B2.5 Name Fuel Capacity, Projected Commission date MWh generation
36 Small hydro Hydro 85 313 2009-2011 power plants
Hrazdan-5 TPP Gas 400 720 2010 New Unit in Gas 242 195 2010 Yerevan TPP
Scenario 2. The proposed project activity undertaken without being registered as a CDM project activity This scenario is realistic and credible and is available for project participant. This scenario is in compliance with all applicable legal and regulatory requirements and may be a part of the baseline scenario. However the barriers discussed below in the section B.5 would restrict the implementation of the scenario. Scenario 3. Other renewable energy power plant with equivalent annual power generation. There is neither potential for wave or tidal energy in Armenia. No biomass, solar or geothermal power plants with a similar scale to the project has previously been built in Armenia. There is only one state-owned wind power plant Lori-1 with the capacity 2.64 Mw. The wind farm was built with support from a 3.5 mln US$ grant from the government of the Islamic Republic of Iran. It is state owned and operated under supervision of "High Voltage
5 Source PSRC, Ministry of Energy of RA, http://www.minenergy.am/files/politic/Razmavarutyun%20eng.doc 13 Network" CJSC, Thus there are no favorable conditions for the construction of power plants based on other renewable sources. Therefore, this scenario is not a feasible scenario. Determination of Baseline emission factor: The baseline to be used in calculating the emission reductions from this project is outlined in the relevant paragraphs of AMS I.D version 13. According to AMS I.D version 13, the baseline of this project is the kWh produced by the small hydroelectric power plant multiplied by an emission coefficient (measured in kg CO2e/kwh) calculated in a transparent and conservative manner. Emission factor is calculated as a combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the ‘Tool to calculate the emission factor for an electricity system’ Version 01.1. The emission factor is calculated ex-ante for estimative purposes. Nevertheless, the emission factor will be monitored ex-post. The Operating margin is calculated based on the Simple Adjusted OM method, since low-cost/must-run resources (hydro and nuclear) constitute more than 50% of total grid generation (in 2007 – about 75). The Build margin emission factor is calculated based on the power generation data of most recently built power plants which comprise 20%of the system generation data. The details of baseline will be explained at 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: Justification for application of simplified methodologies to the project activity. The installed capacity of the project is 6.81 MW, which is less than the limiting capacity of 15 MW and is thus eligible to use small-scale simplified methodologies. The project activity is generation of electricity for a grid system using hydro potential. Hence, the type and category of the project activity matches with I.D. Version 13 as specified in Appendix B of the indicative simplified baseline and monitoring methodologies for small-scale CDM project activities. Justification for additionality of the project under the UNFCCC simplified modalities is to establish the additionality of the project activity according to the Attachment A of Appendix B, which lists various barriers, out of which, at least one barrier shall be identified due to which the project can not occurred any way. The analysis of existing barriers is presented below. The following barriers are identified for the project activity. 1. Investment barriers: The project faces the following perceived investment risks and barriers.
a. Lack of capital for small scale power plants
The lack of capital is seen as the main barrier, as the following problems exist for small hydro projects that want to raise funds:
14 - The interest rates applied to loans in drams by Armenian twenty commercial banks to corporate clients are too high averaging at about 16-18% (the reference rate of the banking interest is 15% to which a commercial bank margin of 1-3% needs to be added) - The loan terms are too short for a long term investment such as a power plant - The loan amounts are too small for international capital markets - Due to the history of payment and credit problems, it will take a long time to cover the sector image for investors - Lack of collateral acceptable for the local bank>local banks require to provide at least 120% of collateral before funds disbursement, which is difficult for the project developers.
It must be noted that all the projects have in fact faced large problems in attracting capital. The company had to extend or renew their construction permits, because construction works were delayed due to lack of funds. b. Table 2: Summary of Barriers Analysis
The continuation of current Project activity Barriers evaluated activities Financial/Economic NO YES
From the conducted analysis it is evident that the project can not succeed without the extra cash flow from Certified Emission Reductions (CERs) in hard currency as well as without additional funds that can be provided as a prepayment for the CERs by the EnBW.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
The project category is renewable electricity generation for a grid system, which is also fed by both fossil fuel fired generating plants and non-fossil fuel based generating plants. Hence, the applicable baseline, indicative simplified baseline and monitoring methodologies is the kWh produced by the SHPPs multiplied by an emission coefficient (measured in kg CO2e/kWh). This project baseline emissions are calculated like the below.
BEy = EGy * EFgrid EGy = the amount of electricity generation by the SHPPs
EFy = the project baseline emission factor The project baseline emission factor is calculated in a transparent and conservative manner as a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the ‘Tool to calculate the emission factor for an electricity system’; or b) The weighted average emissions (kg CO2e/kWh) of current generation mix. The project proponent has chosen the option (a) i.e. the weighted average of the OM and the BM for the purpose of calculation of baseline according the ‘Tool to calculate the emission factor for an electricity system ver. 01.1’ following six steps: Step 1. Identify the relevant electric power system. Step 2. Select an operating margin (OM) method. Step 3. Calculate the operating margin emission factor according to the selected method. 15 Step 4. Identify the cohort of power units to be included in the build margin (BM). Step 5. Calculate the build margin emission factor. Step 6. Calculate the combined margin (CM) emissions factor.
Step 1. Identify the relevant electric power system. The hydropower power plants will be connected to the national electricity grid of Armenia, which is operated and monopolized by the Electric Networks of Armenia” CJSC (ENA). This national electricity grid is the unique transmission and distribution line, to which all power plants in Armenia are physically connected. Hence the national electricity grid is the project electricity system. There are electricity imports to the national electricity grid from Iran - another host country, thus the Iranian Power
Grid is the connected electricity system and the emission factor for the imported electricity is zero tons CO2 per MWh by default. Step 2. Select an operating margin (OM) method. The Operating Margin is calculated on the basis of the option (b) Simple Adjusted OM, because as it is evident from the table 3 below, generation by low-cost/must-run power sources exceeds 50%, requiring the calculation of a lambda factor to modify the results of the Simple OM Method. Table 3 Year 2007 2006 2005 2004 2003 Percentage of low-cost/must run resources in 74.71% 75.16% 70.75% 72.91% 72% total electricity generation Average of five years 73.106%
Source: PSRC
For the simple adjusted 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, or • Ex post option: The year in which the project activity displaces grid electricity, requiring the emissions factor to be updated annually during monitoring. For the calculation of the Operating Margin (OM) Option 2 is chosen, by which the OM emission factor will be updated annually ex-post for the year in which actual project generation and associated emissions reductions occur. Justification of the ex-post calculation. According to the EB09 Annex 3 par. 8 the ex-post calculation of baseline emission rates may only be used if proper justification is provided. The project proponents have decided to choose ex-post calculations, because: 1) Two new thermal power (new units in Yerevan and Hrazdan TPPs) plants will be operational in 2009- 2010
16 2) About 40 small HPPs has obtained the license for the construction and will be operational in 2009-2010 3) Starting from 2009 Armenia will start export electricity to Turkey (around 3 500 mln kWh/pa.). According to the Law of Energy of Armenia, this electricity will be generated in Hrazdan TPP and therefore the percentage of thermal power plants in total generation mix will increase. However, the ax-ante approach was used for the calculation of indicative operating margin.
Step 3: Calculate the Operating Margin emission factor (EFOM,y) according to the selected method For the calculation of the OM official data on energy generation per power plant and energy consumption was used. The OM was calculated using the method described in the applied methodological tool, using the following equation:
Where:
λy = the number of hours for which low-cost/must-run sources are on the margin in year y 8760 hours per year year
FCi,j,y = Amount of fossil fuel type i consumed in power units j in the project electricity system in year y (tonne)
FCi,k,y = Amount of fossil fuel type i consumed in power units k in the project electricity system in year y (tonne) k = Refers to units which are either low-cost or are must-run. j = Refers to the units that are not either low-cost or are must-run.
NCVi,y = Net calorific value (energy content) of fossil fuel type i in year y (GJ /tonne)
EFCO2,i,y= CO2 emission factor of fossil fuel type i in year y (tonne CO2/GJ)
EGk,y = Net electricity generated and delivered to the grid by power units k serving the system in year y (MWh)
EGj,y = Net electricity generated and delivered to the grid by power units j serving the system, in year y (MWh) i = All fossil fuel types combusted in power sources in the project electricity system in year y
λy is defined as stated in the “Tool to calculate the emission factor for an electricity system” v.01.1 STEP 4 - Identify the cohort of power units to be included in the build margin The sample group of power units m used to calculate the build margin consists of power units that comprises the larger annual generation, between the next options: (a) The set of five power units that have been built most recently, or (b) The set of power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently.
17 Following the guidance of the tool, alternative chosen was (b) considering that it comprises larger annual generation. STEP 5 – Calculate the build margin emission factor
The build margin emissions factor is the generation-weighted average emission factor (tonne CO2/MWh) of all power units m during the most recent year y for which power generation data is available. This emission factor will be calculated in an ex ante basis. The formula used is:
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Where:
EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh)
EGm,y = Net quantity of electricity generated and delivered to the grid by power unit m in year 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 STEP 6 – Calculate the Combined Margin (CM) emission factor The CM emission factor is calculated using the following equation:
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 ( %)
Following the guidance of the methodological tool, the values for the weighting factors are 0.5 each, considering the proposed project activity is a hydro project. wOM=0.5 wBM=0.5.
B.6.2. Data and parameters that are available at validation:
Data / Parameter: FCi,m,y Data unit: 1000 m3/year Description: Amount of fossil fuel type i consumed by power plant / unit m in year y Source of data used: ArmRosGazprom Value applied: All data are available to the DOE for validation (See Annex3) Justification of the Dispatch data is not available in Armenia. PSRC provides the most actually updated choice of data or data relevant to the power generation in Armenia that could be accessed by public. description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: NCVi,y Data unit: GJ /1000 m3 Description: Net calorific value (energy content) of fossil fuel type i in year y Source of data used: Default value of the IPCC 2006 Guidelines Value applied: All data are available to the DOE for validation (See Annex 3)
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Justification of the With reference to Version 01.1 of “Tool to calculate the emission factor for an choice of data or electricity system” description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: EFCO2,i,y and EFCO2,m,i,y
Data unit: tCO2/GJ
Description: CO2 emission factor of fossil fuel type i in year y Source of data used: Default value of the IPCC 2006 Guidelines Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to Version 01.1 of “Tool to calculate the emission factor for an choice of data or electricity system” description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: EGm,y Data unit: MWh Description: Net electricity generated and delivered to the grid by power plant/unit m in year y Source of data used: Public Service Regulatory Commission of Armenia Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the Dispatch data is not available in Armenia. PSRC provides the most actually updated choice of data or data relevant to the power generation in Armenia that could be accessed by public. description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: EFgrid,CM,y Data unit: tCO2/MWh Description: Combined Margin (CM) emission factor Source of data used: Public Service Regulatory Commission of Armenia, Armrosgazprom Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to the approved methodology AMS I.D ver.13. and Version 01.1 of choice of data or “Tool to calculate the emission factor for an description of electricity system” measurement methods and procedures actually
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applied : Any comment:
Data / Parameter: Identification of power source plants for the OM Data unit: Name of plant Description: The operating margin includes all generating power plants serving the system, not including low-cost / must-run power plants / units and imports Source of data used: PSRC Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to the approved methodology AMS I.D ver.13. and Version 01.1 of choice of data or “Tool to calculate the emission factor for an description of electricity system” measurement methods and procedures actually applied : Any comment:
Data / Parameter: Identification of power source plants for the BM Data unit: Name of plant Description: The build margin includes either the newest five power plants or newest power plants that have been built more recently and contributed to 20% of electricity generation of a certain year, whichever definition includes the largest generation. Source of data used: PSRC Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to the approved methodology AMS I.D ver.13. and Version 01.1 of choice of data or “Tool to calculate the emission factor for an description of electricity system” measurement methods and procedures actually applied : Any comment:
Data / Parameter: EFgrid,OM,y Data unit: tCO2/MWh Description: Operating Margin (CM) emission factor Source of data used: Public Service Regulatory Commission of Armenia, Armrosgazprom Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to Version 01.1 of “Tool to calculate the emission factor for an choice of data or electricity system” description of measurement methods and procedures actually
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applied : Any comment:
Data / Parameter: EFgrid,BM,y Data unit: tCO2/MWh Description: Build Margin (CM) emission factor Source of data used: Public Service Regulatory Commission of Armenia, Armrosgazprom Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to the approved methodology AMS I.D ver.13. and Version 01.1 choice of data or of “Tool to calculate the emission factor for an description of electricity system” measurement methods and procedures actually applied : Any comment:
Electricity imports
Data unit: MWh Description: Electricity transfers from connected electricity systems Source of data used: Public Service Regulatory Commission of Armenia Value applied: All data are available to the DOE for validation (See Annex 3) Justification of the With reference to the approved methodology AMS I.D ver.13. and Version 01.1 of choice of data or “Tool to calculate the emission factor for an electricity system” description of measurement methods and procedures actually applied : Any comment:
Data / Parameter: Lambda factor of the grid Data unit: Description: Fraction of time during which low-cost / must run sources are on the Margin. Source of data to be PSRC, Electric Networks of Armenia used: Value of data All data are available to the DOE for validation (See Annex 3) Description of With reference to the Version 01.1 of “Tool to calculate the emission factor for measurement methods an and procedures to be electricity system” applied: Any comment:
B.6.3 Ex-ante calculation of emission reductions: This project is generating electricity by small hydroelectric power plant and connecting to grid instead of
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using fossil fuel for abating greenhouse gas (GHG) emissions. The amount of GHG emissions are calculated according to the methodology AMS I.D ver.13. Baseline emissions Baseline emissions of this project are calculated by multiplying the amount of this project electricity generation by the electricity Carbon Emission Factor which is calculated through the methodology
BEelectricity,y=EGy x EFelectrcity,y
BEelectricity,y – the amount of baseline emissions in in year y (tCO2)
EGy - the amount of Total net electricity generation in year y (MWh)
EFelectrcity,y - the Baseline Electricity CO2 Emissions Factor in year y (tCO2/MWh) The Electricity Emissions Factor will be updated annually. In the current version of the PDD the emission factor is calculated ex-ante for 2007 for estimative purposes. The detail about Baseline Electricity CO2 Emissions Factor will be described in Annex 3 The amount of total net electricity generation by small hydroelectric power project. Ayrk-1 SHPP – 1.212 MWh Ayrk-2 SHPP – 1.898 MWh Avazan SHPP – 1.830 MWh Erik SHPP – 15 MWh Jermuk-2 SHPP – 10.24 MWh Baseline emissions Annual electricity generation * Emission Factor = 30 180 MWh * 0.31133 tCO2/MWh = 9 396 tCO2
Total baseline emissions 9 396 tCO2. Project emissions Because of there is no emission through small hydroelectric power project activity, amount of the emission is 0. Leakage This is not applicable as the renewable energy technology used is not equipment transferred from another activity. There for, as per the Simplified Procedures for SSC Project Activities no leakage calculation is required. The amount of Leakage is 0. Emission Reductions Baseline emissions – Project emissions – Leakage = 9 396 - 0 - 0 = 9 396 tCO2
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B.6.4 Summary of the ex-ante estimation of emission reductions:
Bundled project Year Estimation of Estimation of project Estimation of Estimation of baseline emissions activity emission Leakage (tonnes emission (tonnes of CO2e) reductions (tonnes of of CO2e) reductions (tonnes CO2e) of CO2e)
01/04/2009- 0 0 31/03/2010 9396,01 9396,01 01/04/2010- 0 0 31/03/2011 9396,01 9396,01 01/04/2011- 0 0 31/01/2012 9396,01 9396,01 01/04/2012- 0 0 31/01/2013 9396,01 9396,01 01/04/2013- 0 0 31/01/2014 9396,01 9396,01 01/04/2014- 0 0 31/01/2015 9396,01 9396,01 01/04/2015- 0 0 31/01/2016 9396,01 9396,01 01/04/2016- 0 0 31/01/2017 9396,01 9396,01 01/04/2017- 0 0 31/01/2018 9396,01 9396,01 01/04/2017- 0 0 31/01/2019 9396,01 9396,01 Total (tonnes 0 0 of CO2) 93960,1 93960,1
B.7 Application of a monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: EGy Data unit: MWh Description: Net electricity supplied to the grid by the bundled project Source of data to be The electric meter installed SHPPs will measure the electricity supplied to the used: grid. Value of data The projected electricity generation by the bundled project SHPPs is presented in the section A.4 Description of For the monitoring of electricity generation inspected and certified (according to measurement methods national regulations) monitoring equipment (electric meter) will be installed in
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and procedures to be place. The data will be monitored and recorded by qualified engineers according applied: to the monitoring plan. Electric meter readings will be double-checked with the records of the AEN. QA/QC procedures to The Energocor LTD will appoint a designated engineer on site who will be be applied: responsible for collecting and compiling the necessary data for the monitoring plan. The data will be collected in a transparent way and provided to the third party audit entity for the DOE validation and certification. Any comment:
Data / Parameter: FCi,m,y Data unit: 1000 m3/year Description: Amount of fossil fuel type i consumed by power plant / unit m in year y Source of data to be ArmRosGazprom used: Value of data All data are available to the DOE for validation (See Annex 3) Description of The data on fossil fuel consumption is available in Armenia and can be provided measurement methods by Armrosgazprom upon request. and procedures to be applied: QA/QC procedures to The Energocor LTD will appoint a designated engineer on site who will be be applied: responsible for collecting and compiling the necessary data for the monitoring plan. The data will be collected in a transparent way and provided to the third party audit entity for the DOE validation and certification. Any comment:
Data / Parameter: NCVi,y Data unit: GJ /1000 m3 Description: Net calorific value (energy content) of fossil fuel type i in year y Source of data to be Default value of the IPCC 2006 Guidelines used: Value of data All data are available to the DOE for validation (See Annex 3) Description of IPCC default values at the lower limit of the uncertainty at a 95% confidence measurement methods interval as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energy) of the 2006 and procedures to be IPCC Guidelines on National GHG Inventories will be used as it is prescribed applied: in the ‘Tool to calculate the emission factor for an electricity system’ Version 01.1.
QA/QC procedures to See Annex 4, be 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 to be Default value of the IPCC 2006 Guidelines
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used: Value of data All data are available to the DOE for validation (See Annex 3) Description of IPCC default values at the lower limit of the uncertainty at a 95% confidence measurement methods interval as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energy) of the 2006 and procedures to be IPCC Guidelines on National GHG Inventories will be used as it is prescribed applied: in the ‘Tool to calculate the emission factor for an electricity system’ Version 01.1. QA/QC procedures to See Annex 4, be applied: Any comment:
Data / Parameter: Identification of power source plants for the OM Data unit: Name Description: The operating margin includes all generating power plants serving the system, not including low-cost / must-run power plants / units and imports Source of data to be PSRC used: Value of data See Annex 3 Description of For the identification of power plants for the OM official publications of PSRC measurement methods on energy sector in the relevant year will be used. and procedures to be applied: QA/QC procedures to See Annex 4. be applied: Any comment:
Data / Parameter: EGm,y Data unit: MWh Description: Net electricity generated and delivered to the grid by power plant/unit m in year y Source of data to be PSRC used: Value of data See Annex 3 Description of For the identification of power plants for the OM official publications of PSRC measurement methods on energy sector in the relevant year will be used. and procedures to be applied: QA/QC procedures to See Annex 4. be applied: Any comment:
Data / Parameter: Lambda factor of the grid Data unit: Description: Fraction of time during which low-cost / must run sources are on the Margin. Source of data to be PSRC, Electric Networks of Armenia used: Value of data
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Description of For the calculation of the lambda factor of the grid Energocor LTD will use the measurement methods data from PSRC on electricity generation and delivery and will request and procedures to be chronological load data for each hour of the year from the Electric Networks of applied: Armenia. QA/QC procedures to See Annex 4. be applied: Any comment:
Data / Parameter: EFgrid,CM,y Data unit: tCO2/MWh Description: Combined Margin (CM) emission factor Source of data to be Public Service Regulatory Commission of Armenia, Armrosgazprom, Electric used: Networks of Armenia Value of data See Annex 3 Description of Combined margin will be calculated as With reference to the approved methodology measurement methods AMS I.D ver.13. and Version 01.1 of “Tool to calculate the emission factor for an and procedures to be electricity system” applied: QA/QC procedures to See Annex 4. be applied: Any comment:
Data / Parameter: EFgrid,OM,y Data unit: tCO2/MWh Description: Operating margin (OM) emission factor Source of data to be Public Service Regulatory Commission of Armenia, Armrosgazprom used: Value of data See Annex 3 Description of Operating margin will be calculated with the to “Tool to calculate the emission factor measurement methods for an and procedures to be electricity system” applied: QA/QC procedures to See Annex 4. be applied: Any comment:
Data / Parameter: EFgrid,BM,y Data unit: tCO2/MWh Description: Operating margin (OM) emission factor Source of data to be Public Service Regulatory Commission of Armenia, Armrosgazprom used: Value of data See Annex 3 Description of Build margin will be calculated with the to “Tool to calculate the emission factor for measurement methods an and procedures to be electricity system” applied: QA/QC procedures to See Annex 4. be applied:
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Any comment:
B.7.2 Description of the monitoring plan: Name: Monitoring methodology for Project activity I.D “Grid connected renewable electricity generation” Reference: Article 9 Type I.D. Appendix B of the simplified modalities and procedures for small- scale CDM project activities., ver. 13 The project activity is generation of electricity for a grid system using water potential. Hence, the type and category of the project activity matches with I.D. ver. 13 as specified in Appendix B of the indicative simplified baseline and monitoring methodologies for small-scale CDM project activities. All power plants will appoint a designated engineer on site who will be responsible for collecting and compiling the necessary data for the monitoring plan. The data will be collected in a transparent way and provided to the third party audit entity for the DOE validation and certification. No leakage is expected. The electronic system calculates the amount of generated electricity by each plant each 30 minutes. The generated amounts are then recorded at the end of each month. For the monitoring of electricity generation inspected and certified (according to national regulations6) monitoring equipment (electric meter) with accuracy of 0.2% will be installed in place. The meters will be calibrated yearly. The measurement interval is 30 minutes. The data will be monitored and recorded by qualified engineers according to the monitoring plan. Electric meter readings will be double-checked with the records of the AEN. The data will be electronically archived. Receipts of electricity sales will be obtained. The data necessary for the calculation of the emission factor of the grid is available in Armenia and can be provided by PSRC, ArmrosGazprom and Electric Networks of Armenia upon request. The current data on Armenian power plants will be used prior to the point at which the first new plant will be added to the grid and start producing electricity. Each year before verification the project proponent will update the information on and recalculate emission factor. The Managing Director of Energocor LTD will be responsible for the full implementation of the monitoring methodology outlined in the PDD for their respective.
6 GOST 30206-94 and GOST 30207-94
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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 completing the final draft of the baseline and monitoring methodology: 12/01/2009 Name of person/entity determining the baseline and monitoring methodology: Mr. Karen Arabyan Energocor Ltd [email protected] Energocor LTD is not a project participant.
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:
As per the guidance of EB41 meeting report, the project activity is deemed to have started on September 2008 as this is when the project proponent committed to expenditures related to the implementation of the project activity (equipment purchase).
Prior consideration of the CDM The project developer has seriously considered the benefits from CDM prior to the starting date. In particular, in February 2008 the Board of Directors of the company has decided to develop the project as CDM project and signed the contract with Energocor LLC (the company engaged in the development of CDM project in Armenia) for the development of the PDD. Energocor LLC has presented the project to the potential CER’s buyers during CDM conference in Georgia in March, 2007. In November 2008 the project proponent has signed Letter of Intent with EnBW. 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 N/A C.2.1.1. Starting date of the first crediting period: N/A
C.2.1.2. Length of the first crediting period: N/A
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C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
01/09/2009 or date of registration
C.2.2.2. Length: 10 years
SECTION D. Environmental impacts
D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity:
All power generation projects carried out in Armenia are required to conduct an environmental impact assessment in conformity with Order on Environmental Protection. According to the Environmental Impact Assessments conducted for these projects the construction of the hydro power plants will not affect the quality of the river water, as well as the well being of the local population. The followings are main restrictions and requirements set by the ministry of environment protection: 1. Maintaining sanitary water flow in the rivers: Ayrk 1, 2 SHPP – 0.6 m3/sec Avazan SHPP – 0.6 m3/sec Erik SHPP – 0.7 m3/sec Jermuk-2 SHPP – 0.7 m3/sec 2. Construct fishpasses 3. Improve surrounding environment of the HPP (plants, green lawns, bushes, trees, etc) as well as remove construction wastes from the project sites.. The minimum water flow in the river will be regularly monitored by the local environmental authorities and the data will be submitted to Ministry of Nature Protection. The construction of the fish pass, as well as improvement of surrounding environment of the SHPPs are included in design solutions of the SHPPs. The construction report and expertise are required for commission of hydro plant.
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:
N/A
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SECTION E. Stakeholders’ comments
Local stakeholders’ comments were received during the licensing process and conducting the environmental impact assessment. The procedure for obtaining a license for construction of HPP in Armenia requires conducting a public hearing7. Prior to issuance of the license the PSRC publishes a request for comments from all the stakeholders in local newspapers. Besides, it is required to submit project documentation to local communities for the comments. During the Environmental Impact Assessment the Ministry of Nature Protection submits the project documentation to NGO’s The companies have received positive comments and decisions from local and state government bodies, communities and NGOs.
E.1. Brief description how comments by local stakeholders have been invited and compiled:
No major concern was raised during the public hearing.
E.2. Summary of the comments received:
No major concern was raised during the public hearing.
E.3. Report on how due account was taken of any comments received:
7 The law of the Republic of Armenia on licensing
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Bundling agent Organization: Energocor LTD Street/P.O.Box: Microdistrict Building: 68/10 City: Hrazdan State/Region: Postfix/ZIP: 0028 Country: Armenia Telephone: +37410231700 FAX: +37410 44 44 48 E-Mail: [email protected] URL: www.energocor.am Represented by: Project expert Title: Mr. Salutation: Last Name: Arabyan Middle Name: First Name: Karen Department: Mobile: +374 91 20 17 96 Direct FAX: Direct tel: Personal E-Mail: [email protected]
Organization: EnBW Trading GmbH Street/P.O.Box: Durlacher Allee Building: 93 City: Karlsruhe State/Region: Postfix/ZIP: 76131 Country: Germany Telephone: +49 (0) 721 63-15375 FAX: 49 (0) 721 63-15499 E-Mail: [email protected] URL: www.enbw.com Represented by: CDM/JI Contract Manager Title: Dr. Salutation: Last Name: Schaller Middle Name:
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First Name: Markus Department: Mobile: + 49 (0) 160 58 70 008 Direct FAX: Direct tel: Personal E-Mail: [email protected]
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
Total funding required for the project does not include any public funding from Annex I countries. Hence, the project proponents hereby confirm that public funding from parties included in Annex - I is not involved in the project activity
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Annex 3 BASELINE INFORMATION
Calculation of OM.
Table 1 Data on net electricity generated in 2007
No Name Fuel Capacity, Delivery Generation MW (2007), (2007), MWh MWh 1 ANPP nuclear 880 2347800 2553400 2 Hrazdan TPP** natural gas 1110 1048900 1131600 3 Yerevan TPP natural gas 550 304900 357100 4 International Energy Corporation hydro 556 512400 521300 5 Vorotan cascade hydro 400 1021300 1030000 6 Dzora HPP hydro 25 83800 85500 7 Lori-1 WPP wind 2,64 2700 2900 8 Small HPPs hydro 51 210700 215800 9 Imports - - 418700 418700 TOTAL 5951200 6316300 ** Highlighted power plants are included in the OM
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Table 2 Calculation of OM for 2007
No Name Fuel Capacity, Generation (2007), Fuel Consumption, NCV, EFCO2, t CO2 emissions MW MWh 1000 NM3 GJ/1000NM3 CO2/Gj (tCO2) natural 1 Hrazdan TPP gas 1110 1048900 375 000 46,5 54,3 946856,25 natural 2 Yerevan TPP gas 550 304900 153 000 46,5 54,3 386317,35 3 Imports - 418700 0 0 0 TOTAL 1772500 1333173,6 OM 0,7521431
Fuel consumption data are from ArmRosGazprom, Net calorific values and fuel emission factors are IPCC default values, see 2006 Data Source: IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy).
OM (2007)=0.699 t CO2e/MWh
Calculation of lambda. The number of hours for which low-cost/must-run sources are on the margin for 2007 =1486 (See figure below).
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1400
1200 intersetion point 1000
800
600
400
200
0 1 8760
Lambda for 2007 = 1508/8760= 0,172146
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Selection of cohort power plants to be included in the Build Margin Option 1. The set of five power units that have been built most recently
No Name of power plant First year in service Energy generated, 2007, Accumulated, % MWh 1 Ler-Ex-6 2007 2.6 0.04 2 Qurkik Jalal 2007 1.6 0.07 3. Hnevank-2 2007 2.0 0.10 4. Bovadzor 2007 1.2 0.12 5. Shaghat 2007 0.28 0.13
Option 2. The set of power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently.
Table 3
Percentage of Name First year in service Fuel Energy Generated, 2007 total generation (%) Energy delivered, 2007 Emissions, t CO2e Small 2007 3,7 SHPPs hydro 215800 210700 0 Vorotan 1997 hydro 1030000 17,5 cascade 1021300 0 Sum 21,1 Total 5897600,0 generation
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The table below calculated the emission factor of the grid
Adjusted Operating Build Emission factor Operating margin Lambda Margin Margin of the grid 0,752143075 0,172146119 0,622664564 0 0,311332282
Calculating emission reductions: The table below calculates the baseline
Bundled Emissions reduction project Year Annual Estimation of generation emission reductions (tonnes of CO2) 01/09/2009-30/09/2010 30 180 9396,01 01/09/2010-30/09/2011 30 180 9396,01 01/09/2011-30/09/2012 30 180 9396,01 01/09/2012-30/09/2013 30 180 9396,01 01/09/2013-30/09/2014 30 180 9396,01 01/09/2014-30/09/2015 30 180 9396,01 01/09/2015-30/09/2016 30 180 9396,01 01/09/2016-30/09/2017 30 180 9396,01 01/09/2017-30/09/2018 30 180 9396,01 01/09/2017-30/09/2019 30 180 9396,01 Total (tones of CO2)
93960,1
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Annex 4
MONITORING INFORMATION
The objective of the monitoring plan is to insure the complete, consistent, clear, and accurate monitoring and calculation of the emissions reductions during the whole crediting period. The project owner will be responsible for the implementation of the monitoring plan, and the Grid operator will cooperate with the project entity. 1. Monitoring Objective The main monitoring data is the net power supplied to the grid ( EG y ). 2. Monitoring Organization A chief monitoring officer will be appointed by the project owner who supervises and verifies metering and recording, collects data (meter’s data reading, sales/billing invoices), calculates emission reductions and prepares a monitoring report. The monitoring officer will be responsible for carrying out the following tasks: • Supervise and verify metering and recording: The monitoring officer will coordinate with the plant manager to ensure and verify adequate metering and recording of data, including power delivered to the grid. • Collection of additional data, sales / purchasing invoices: The monitoring officer will collect sale invoices for power delivered to the grid, billing invoices for power delivered by the grid to the hydropower station and additional data such as the daily operational reports of the hydropower station. • Calibration: The monitoring officer will coordinate with staff of the project entity to ensure that calibration of the metering instruments is carried out periodically in accordance with regulations of the grid company. • Calculation of emission reductions: The monitoring officer will calculate the annual emission reductions on the basis of net power supply to the grid, as per meter reading and invoices from the grid company. The monitoring officer will be provided with a calculation template in electronic form by the project’s CDM advisors. • Preparation of monitoring report: The monitoring officer will annually prepare a monitoring report, which will include among others a summary of daily and/or monthly operations, metering values of power supplied to and received from the grid, copies of sales/billing invoices, a report on calibration and a calculation of emission reductions. In order to ensure accuracy of the monitored data, the monitoring officer will receive training on monitoring methodologies, procedures and archiving by Energocor LLC. Then, the monitoring officer will train the project staff in charge for CDM monitoring. The training course covers: • Initial training on CDM, monitoring methodology, monitoring procedures and requirements and archiving, using among others a detailed Monitoring manual that will be made available to the validator for review. • Provide the monitoring officer with a calculation template in electronic form for calculation of annual emission reductions. • Continuous advice to the monitoring officer on a need basis. • Review of monitoring reports. 3. Monitoring Equipment and program
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The electric energy metering equipment will be properly configured and the metering equipment will be checked according to relevant regulation by both the project owner and the grid company before the project is in operation. 4. Data Collection: 4.1 The electric data collection The project owner and the Grid Operator responsible for operation monitoring of the backup meters and the main meters respectively, and guarantee the measuring equipments are in good operation and completely sealed. The electricity recorded by the main meter alone will suffice for the purpose of billing and emission reduction verification as long as main meter fault is within the permissible tolerance. The main monitoring process is as follows: i The project owner and Grid Company read and check the backup meters and the main meters and record the data on the last day of every month; ii The grid company supplies its readings of the main meters to the project owner. In case there are no significant discrepancies, the steps described below will be followed. iii The project owner provides electricity sales invoices to the Grid Operator. Copies of the invoices are stored by the project owner, together with a record of the payment by the grid company. iv About the electricity from the grid, the grid operator provides electricity sales invoices to the project owner and the invoices are stored by the project owner. v The project owner records the net electricity supplied to the grid; vi The project owner keeps and safes the records of the main meters’ data readings for verification by the DOE. If inaccuracy of the reading data from the main meters exceeds the allowable tolerance or otherwise the meter mal functioned will operate in one month, the grid-connected electricity generated by the proposed project shall be followed by: i Reading the backup meters (after taking the line losses into consideration) to ensure electricity is supplied to the grid, unless a test by either party reveals it is inaccurate; ii If the backup system is not within acceptable limits of accuracy or performed improperly, the proposed project owner and the grid company shall jointly prepare an new agreement of the correct readings; and iii If the proposed project owner and the grid company fail to reach an agreement concerning the correct reading, then the matter will be submitted for arbitration according to agreed procedures. 5. Calibration The meters will be equipped before operation. The verification of electric energy meter should be carried out once a year or periodically according to national standard and regulation. After verification, meters should be sealed. Both meters shall be jointly inspected and sealed on behalf of the project owner and the grid company and shall not be accessible by either party except in the presence of the other party or its accredited representatives. All the meters installed shall be tested by the qualified metrical organization co-authorized by the project owner and the Grid Operator any within 10 days after: i The detection of a difference larger than the allowable tolerance in the readings of the main meter and the backup meter; ii Repair to the faulty meter caused by improper operation. 6. Data Management Data will be archived at the end of each month using electronic spreadsheets. The electronic files will be stored on hard disk and CD-ROM. In addition, a hard copy printout will be archived. In addition, the project owner will collect sales invoices for the power delivered to the grid as a cross-check. At the end of each crediting year, a monitoring report will be compiled detailing the metering results and evidence (i.e. sales invoices).
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Physical documentation such as, paper-based maps, diagrams and environmental assessment, will be collected in a central place, together with the monitoring plan. In order to facilitate the auditor’s reference, monitoring results will be indexed. All paper-based information will be stored by the project owner. All data records will be kept for a period of 2 years following the end of the crediting period. 7. Monitoring Plan The project owner will keep sale and purchasing invoices, and will prepare a monitoring plan at the end of the year, audit report, calculation report of emission reduction and repair and calibration record of the monitoring equipments.
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