PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of 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 project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan Annex 5: EIA Exemption Letter Annex 6: Contributions made to the local community Annex 7: Generation License Annex 8: Power Plants Considered for Common Practice Analysis PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 2 SECTION A. General description of project activity A.1. Title of the project activity: Title: 16.7 MW HAMZALI Hydroelectric Power Plant Version: 11 Date: 16/08/2010 A.2. Description of the project activity: The Hamzalı Project is a run-off-river type hydroelectric power plant (HEPP) which has been designed originally by General Directorate of State Hydraulic Works (DSI) in 2002 and consists of an irrigation system and a hydroelectric power plant having installed capacity of 13.8 MW. Later, project has been delivered to TURKON-MNG and the generation license has been issued in 17/11/2005. Implementation of the project has been performed by TURKON-MNG and feasibility of the project has been revised twice and installed capacity has been first increased to 14.78 MW and then 16.7 MW. Hamzalı HEPP project is implemented on the Kızılırmak River, the Project Area lies in between Ankara and Kırıkkale Provinces. BUGRA Regulator, which is one of the main structures of the Project, will be used for both electricity generation and irrigation purposes. Regulator will be built at about 15 km Northeast of Kalecik District of Ankara and about 800 m Southeast of Bugra Village. Regulator will be 14 m high and allow a maximum altitude of 615.5 m for the water collected. According to project design, powerhouse of the Hamzalı HEPP Project will be built at right bank of the River which is located at 1.75 km northwest of Çayoba village and 4 km of southwest of Hamzalı village of Sulakyurt District of Kırıkkale Province. The Project is located between Kapulukaya HEPP at the upstream and Obruk HEPP in the downstream. Both hydroelectric power plants are owned and operated by DSI. Location of the Project has been determined such that elevation difference will enable both electricity generation and irrigation of a wide area without need of energy use. Energy component of the Project will have installed capacity of 16.7 MW whereas estimated electricity generation will be about 127 GWh per annum. Specific goals of the HAMZALI HEPP Project include; Utilization of the hydroelectric potential of Turkey in order to meet booming electricity demand and guarantee the energy security. Increase share of HEPPs in electricity generation mix of Turkey and reduction of GHG emissions. Contribute to the national economic development by creating direct and indirect job opportunities during construction and operation phases. Reduce import dependency of fossil fuel dominated electricity sector and diversify generation mix through use of local resources. Enabling and promoting agricultural activity in the region through newly built irrigation channels and thus contributing to economic development both locally and nationwide. In terms of sustainable development project not only contributes to emission reduction through use of renewable resources and creating job opportunities, it also contributes to local development by enabling irrigation of about 9,600 ha of land which is not cultivated currently due to lack of water and high energy costs of irrigation water pumping. The infrastructure for irrigation component will be built by project PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 3 owner however DSI will be the only authority for irrigation project. This is also in compliance with the Government Policy and MDG goals of Turkey and contributes in reducing poverty and providing better conditions for local people. Assessment of project activities in terms of sustainable development has been carried out according to GS toolkit and effect of the project has been determined as positive for eight items with no negative score. In terms of environmental impact, project is considered to have positive impact on air quality due to avoided NOx, PM and SOx emissions whereas no negative impact on water quality other pollutants and biodiversity has been identified. In order to avoid impact on aquatic life in the river bed, 3 m3/s of minimum flow will be released from the weir1. According to the research conducted by State Planning Organization(SPO) on socio-economic level of Districts in Turkey, Sulakyurt District is ranked as 719th among 872 Districts in Turkey in terms of development level and classified in fifth(out of six) group. About 85.3% of the population works on agriculture and 13% works on service sector whereas only 1% works on industry which has caused about 12% decrease in population2 mainly due to lack of employment opportunities in the region. In that respect, direct and indirect contribution of project activities to local economy through employment and supply of needs from the region will have a significant effect on development in the region. In addition to contribution to local economy, project will also contribute use of local and renewable resources to meet the increasing energy demand of Turkey and reduce dependency on fossil fuels. According to Turkish Electricity Transmission Company (TEIAS) statistic, in 2007 about 50% of the electricity has been generated by natural gas (NG) power plants which is fully imported and 20bn m3 NG has been consumed. In terms of fuel dependency, Hamzalı HEPP is expected to replace about 27.5 million m3 NG and contribute to balance of payments which will, in addition, increase air quality and access to affordable energy services in national level3. TURKON-MNG has also made significant contributions to physical infrastructure of the community around the project boundaries and intending to continue this contribution in the future. Details of the contributions made during the construction phase and those planned to be done during operational phase are given in Annex 6. Main milestones of the project is given in table below. Milestone Date License Issuance 17/11/2005 Board Decision for Carbon Certification 28/11/2005 1st Equipment Purchase Contract (Investment 20/06/2006 Decision) Loan Agreement 19/10/2006 License Amendment 09/11/2006 Construction Agreement and Start of Construction 05/01/2007 2nd Equipment Contract Date 05/02/2007 LSC Meeting 08/11/2008 Commissioning Date 01/12/2008 Uploading Project Documents to GS Registry 08/01/2009 1 Hamzali Hepp feasibility report, section 4.4 2 http://ekutup.dpt.gov.tr/bolgesel/gosterge/2004/ilce.pdf (page 217) 3 http://www.teias.gov.tr/ist2007/43.xls PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 4 Start of Prefeasibility Assessment by GS 17/02/2009 Completion of PFA by GS 21/06/2009 SFR Meeting 19/08/2009 Table 1. Hamzali HEPP Project Milestones Figure 1. Hamzali Run-Off-River HEPP Project Layout A.3. Project participants: Name of Party involved Private and/or public entity(ies) project Kindly indicate if the (*) ((host) indicates a host participants (*) (as applicable) Party involved Party) wishes to be considered as project participant (Yes/No) Turkey (Host) TURKON-MNG Elektrik Üretimi Ve Ticaret A.Ş. No Global Tan Energy Ltd. A.4. Technical description of the project activity: A.4.1. Location of the project activity: Project covers lands from both Ankara and Kırıkkale Provinces. BUGRA regulator, which will serve both for electricity generation and irrigation purposes, is built near BUGRA village of Kalecik district of Ankara. Power generation facilities of the Hamzalı HEPP Project will be located near Çayoba village of Sulakyurt District in Kırıkkale Province. A.4.1.1. Host Party(ies): PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 5 Although Turkey, the Host Country, passed legislation in Parliament on February 5th 2009 to ratify the Kyoto Protocol - Turkey does not have yet a quantitative emission reduction limit and it is likely that it will not have a quantitative emission reduction limit until post 2012. As such, Turkey will in the interim period continues to be eligible for voluntary emission reduction projects. A.4.1.2. Region/State/Province etc.: Central Anatolia Region/between Ankara and Kırıkkale Provinces. A.4.1.3. City/Town/Community etc.: Çayoba Village of Sulakyurt District of Kırıkkale. A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): Geographical coordinates of Bugra Weir and the Hamzali Powerhouse are; Longitude Latitude Bugra Weir E 33° 33′ 44″ N 40° 09′ 45″ Powerhouse E 33° 38′ 07″ N 40° 16′ 39″ Figure 2. Hamzalı HEPP Project Location PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 6 Figure 3. Layout of the Hamzalı HEPP Project A.4.2. Category(ies) of project activity: Project activity includes installation of a new HEPP on Kızılırmak River of Turkey. Project category is included in the sectoral scope 1 “Energy Industry – Renewable Sources”, generation of electricity from renewable resources for the grid according to the UNFCCC definition. A.4.3. Technology to be employed by the project activity: Hamzalı project is a run-off-river type hydro electric power plant. Run-off-river type HEPPs do not have much storage capacity on the contrary to plants with dam and storage facility.