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PROJECT DESIGN DOCUMENT FORM (CDM- SSC- 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 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 2 SECTION A. General description of project activity A.1 Title of the project activity: Title: InfraVest Changbin and Taichung bundled Wind Farms Project - Taiwan Version: 01 Date: July 25, 2008 Revision history of the PDD Version Date Comments Version July 25, 2008 First version of PDD prepared for GS assessment. 1.0 A.2. Description of the project activity: Summary The project involves the development of two wind farms in Taiwan: • a 103.5MW onshore wind farm located in Lugang, Siansi and Shengang townships, Changhua County (called hereafter : Changbin’s windfarm) • a 46 MW onshore wind farm in Tachia and Taan, Taichung County (called hereafter : Taichung’s windfarm) The two wind farms are constructed and operated by InfraVest Wind Power Group (hereafter InfraVest) a subsidiary of the german group InnoVent. The project consists in 45 (for Changbin) plus 20 (Taichung) wind turbines, each with a capacity of 2.3MW. The 68 turbines of type Enercon E70 are installed at an altitude of 64 m hub height and have a 71m diameter. At full capacity, the aggregated production of the project is expected to be of 507 MWh/year, which is delivered to the national grid. The electricity produced will be exported to the regional state electricity authority Taipower. Therefore the emission reductions from the project activity will come from the avoidance of carbon dioxide emissions from fossil fuel use at the national electricity grid. The annual emission reductions are estimated as 405,470 tCO2e/year. Contribution to sustainable development: The project contributes significantly to the region’s sustainable development. The specific goals for the project are to: • Reduce the greenhouse gas emissions in Taiwan by replacing fossil fuel power generation. • Contribute to the development of the wind energy sector in Taiwan • Provide electricity to the equivalent of 110,000 households. • Create local employment both during the construction and operational phase. • Technology and know-how transfer as the employees are trained by German wind turbine manufacturer Enercon on maintenance, safety and operational issues. • Contribute to the reduction of pollutants such as sulphur dioxide, nitrogen oxides PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 3 and particles resulting from the electricity generation from fossil fuels in Taiwan. • Reduce the dependency on energy imports. ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD Results from the sustainable development matrix: Table 1. Sustainable Development Indicators Matrix for the Gold Standard Component Score Rational • Indicators (-2 to +2) Local / Regional / Global Environment • Water quality and quantity +1 Taiwan is subject to acid rains. By reducing the use of fossil fuel to produce electricity, the windfarm mitigates sulfur emission in the atmosphere and thus acid rain. This is the only possible effect of the windfarm on water resource, this indicator scores thus a “+1”. • Air quality (emissions other +2 As the proposed project replaces the than GHG) fossil fuel electricity generation dominating the national grid, it reduces the emissions other than GHG such as NOx and SOx. Considering the high installed capacity of the national grid this has an improvement to the air quality and this sustainable indicator scores a “+2”. • Other pollutants 0 Not significant (including, where relevant, toxicity, radioactivity, POPs, stratospheric ozone layer depleting gases) • Soil condition (quality and 0 There will be no considerable quantity) difference regarding the soil characteristics between the baseline scenario and project activity. • Biodiversity (species and 0 Taiwan is considered a sensitive place habitat conservation)* for bird migration. The impact of the windfarm on bird populations is unknown until now, but it is expected to be negligible. This indicator scores thus a “0”, but this parameter will be monitored. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 4 Sub Total +3 Social Sustainability and Development • Employment (including job +2 The project will create jobs in Taiwan quality, fulfilment of labour during both construction and operation standards)* phases. • Livelihood of the poor 0 Although the project is expected to (including poverty alleviation, lead to both economic and distributional equity, and infrastructural development of the access to essential services) region this would be very difficult to monitor. Therefore this indicator scores a zero. • Access to energy services 0 The number of connections of local households to the grid will not be influenced due to the project activity. • Human and institutional 0 No changes are expected regarding capacity human and institutional capacity in the (including empowerment, region. education, involvement, gender) Sub Total +2 Economic and Technological Development • Employment (numbers)* +2 The project activity generates employment opportunities during the project’s construction and operation period. • Balance of payments +2 The wind farms will reduce fossil fuel (sustainability) imports in Taiwan. • Technological self reliance +1 The staff will be trained regarding (including project replicability, technical issues. This sustainable hard currency liability, indicator scores a “+1”. institutional capacity, technology transfer) Sub Total +5 Total +10 * = added to the monitoring plan (Section D.3) The project meets the requirements of the Gold Standard, as each of the above three components has a positive sub-total score, a total positive score (+10), and none of the indicators scores –2. As required by the Gold Standard, indicators that are critical for a positive contribution of the project to sustainable development, or that are particularly sensitive must be clearly PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 5 identified. The indicators that are particularly sensitive are marked with an asterisk (*) in the matrix and added to the monitoring plan. See also section D of this Project Design Document. A.3. Project participants: Name of Party involved Private and/or public entity(ies) project Kindly indicate if (*) participants (*) the Party involved (host) indicates a host (as applicable) wishes to be Party) considered as project participant (Yes/No) Taiwan (host) InfraVest Wind Power Group (private No entity) Switzerland South Pole Carbon Asset Management No Ltd. (private entity) A.4. Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party(ies): Taiwan A.4.1.2. Region/State/Province etc.: Changhua County and Taichung County A.4.1.3. City/Town/Community etc: Lugang, Siansi, and Shengang Townships; Tachia and Tean Townships A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The two wind farms are located in Taiwan. The first one is the Changbin Industrial Park that consists of three zones Siansi, Lugang and Lun-Wei, located in Changhua County in west Taiwan and close to the Taiwan Strait. The second one is situated in Tachia and Taan Townships. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 6 The proposed project activities are distributed in these zones which are at the geographical position of 24°05’55”N, 120°25’34”E for the first wind farm and 24°22’38”N, 120°38’49”E for the second one. The locations are depicted in the pictures shown below. Picture A.1.: Location in Taiwan Picture A.2.: Location of the three zones where the Changhua plant is located (A stands for Lugang, B for Siansi and C for Lun-Wei Zone.) PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 7 Picture A.3.: Location in Taichung PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 8 A.4.2. Category(ies) of project activity: Sectoral Scope 1: Energy industries (renewable - / non-renewable sources) Type I : Renewable energy projects. ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD Gold Standard Eligibility The proposed project falls under the following category of the Gold Standard: • Renewable electricity – Wind A.4.3. Technology to be employed by the project activity: The project consists of 45 (Changbin) plus 23 (Taichung) wind turbines each with a capacity of 2.3MW. The 68 turbines of type Enercon E70 are installed at an altitude of 64 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03 CDM – Executive Board page 9 m hub height, with a diameter of 71m. The project is expected to generate 459,300 MWh/year which is delivered to the national grid. The main characteristics of the wind turbines employed are described in the table below. Table 2. Key Parameters of the wind turbines Parameter Value Rated power: 2,300 kW Turbine concept: Gearless, variable speed,