PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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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

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SECTION A. General description of project activity

A.1 Title of the project activity:

Title: InfraVest Changbin and bundled Wind Farms Project - 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

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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

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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

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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.

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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.)

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Picture A.3.: Location in Taichung

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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

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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, variable pitch control Wind class (IEC): IEC/NVN I Hub height: 64 m Rotor diameter: 71 m Type: Upwind rotor with active pitch control Direction of rotation: Clockwise Number of blades: 3 Swept area: 3,959 m2 Blade material: Fibreglass (epoxy resin); integrated lightning protection Rotational speed: Variable, 6 - 21.5 rpm Pitch control: ENERCON blade pitch system, one independent pitching system per rotor blade with allocated emergency supply Generator: ENERCON direct-drive synchronous annular generator Grid feeding: ENERCON converter Cut-out wind speed: 28 - 34 m/s (with ENERCON storm control) Yaw control: Active via adjustment gears, load-dependent damping

Description of Changbin’s windfarm Considering the size of the Changbin wind farm, 2 substations are needed, one located in Changbin with 24 turbines and one in Lugang for the other 21.

The project was built in two steps. 33 turbines have been implemented in the first phase. These turbines are connected to the grid and have been producing energy since the 1st November 2007. The installation of the 12 turbines of the second phase, has started in March 2008 and is expected to be fully operational by December 2008.

Description of Taichung’s windfarm The installation of the 20 turbines started in December 2007 and are expected to be fully operational in January 2009.

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Figure 1: photo of the Changbin windfarm Phase 1

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD Technology transfer

The development of the proposed project will contribute to promoting the application of wind technology, accelerating the accumulation of experiences and absorption of this kind of technology and advancement of domestic wind power technology.

As the first wind power IPP in Taiwan, InfraVest has contributed significantly to the development of wind power sector in Taiwan. Since its set up in 2000, InfraVest has been making efforts in analyzing market feasibility, searching for wind farm sites and drafting out its wind project pipelines in Taiwan. Know how transfer is a significant factor for the sustainable development of wind farms. Since the wind energy market is underdeveloped in Taiwan, the procurement of specific services and equipment at a desired level of quality in Taiwan is difficult, thus a large portion of the required technology and know-how must be imported.

A.4.4 Estimated amount of emission reductions over the chosen crediting period:

Year Annual estimation of emission reduction [tCO2] PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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2007 (1/11/2007 to 31/12/2007) 41,850 2008 (1/01/2008 to 31/12/2008) 203,615 2009 (1/01/2009 to 31/12/2009) 405,621 2010 (1/01/2010 to 31/12/2010) 405,621 2011 (1/01/2011 to 31/12/2011) 405,621 2012 (1/01/2012 to 31/12/2012) 405,621 2013 (1/01/2013 to 31/12/2013) 405,621 2014 (1/01/2014 to 31/10/2014) 338,017

Total emission reductions [tCO2] 2,611,586 Total length of crediting period (years) 7 Annual average of estimated reductions over the 373,084 crediting period [tCO2]

A.4.5. Public funding of the project activity:

There is no public funding from Annex I countries involved in the project activity1.

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD ODA Additionality Screen

In order to meet the requirements of the Gold Standard, the project participants here claim that the project activity do not use Official Development Assistance (ODA) funding, directly or indirectly

A clear and transparent finance plan will be provided on request of DOE so the validator can assess whether the project financing includes ODA. This will be presented as a separate document, and remains in commercial confidence.

1 A clear and transparent financial plan will be disclosed to the DOE during validation upon request. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity:

The approved consolidated baseline and monitoring methodology ACM0002 (version 07, 14 Dec 2007) “Consolidated baseline methodology for grid-connected electricity generation from renewable sources --- Version 7” has been used.

The methodology was applied with the following tools :

• Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 01) (EB 32, annex 09) • Additionality tool (version 4, 30 November 2007) “Tool for the demonstration and assessment of additionality”

For more information about the methodology, the emission factor tool and the additionality tool please refer to the website: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

B.2 Justification of the choice of the methodology and why it is applicable to the project activity:

The methodology referenced above is applicable to this project activity because it fulfils the required criteria: • The project consists of a wind power electricity capacity addition and is a grid- connected electricity generation project; • The project does not involve switching from fossil fuel use to renewable energy at the site of the project activity; and • The geographic and system boundaries for the relevant electricity grid can be clearly identified and information on the characteristics of the grid is available (see section B6).

B.3. Description of the sources and gases included in the project boundary

According to the methodology ACM0002, since the proposed project is a grid connected wind power project, only CO2 emission from fossil fuels fired power plants in baseline scenario need to be considered.

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Source Gas Included/ Justification/Explanation Excluded Fossil fuels fired power CO2 Included Main emission source

Excluded for simplification. CH Excluded 4 This is conservative.

Baseline Excluded for simplification. N O Excluded 2 This is conservative.

Excluded. It is a clean CO Excluded On-site fuel combustion to 2 energy project. the project Excluded. It is a clean Activity CH Excluded 4 energy project. Excluded. It is a clean

Project Activity N O Excluded 2 energy project.

Spatial extent of the grid is as defined in the “Tool to calculate the emission factor for an electricity system”. The PDD will discuss the spatial extent of the grid in B.6 below in details.

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:

According to the description in the approved baseline methodology ACM0002, for the project activities that consists in the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the following:

“Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system”.

The definition and description of the combined margin that supports the baseline scenario is shown above in section B.6.

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 CDM project activity (assessment and demonstration of additionality):

ADDITIONAL REQUIREMENTS FOR THE GOLD STANDARD Early Consideration

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There was no public announcement of the project going ahead without the VER for the proposed project. VERs were also considered and discussed seriously and comprehensively in an early stage of the feasibility study. The following elements will be disclosed to the DOE upon request during the Validation process:

• InfraVest is familiar with carbon credits and emission reduction projects since the beginning of the CDM. In 2003, they registered one of the first VER projects in China2. The Qingdao Huawei Windpower project is a grid connected renewable energy project consisting of 12 wind turbine generators with capacity of 1300 kW and 3 turbines with 250 kW capacity. The total installed capacity is 16.35 MW and the annual amount of VER generated is close to 22,0003 per year. • Since its implementation in Taiwan, InfraVest has always considered the potential of carbon credits for financing its wind power projects. InfraVest has thus sought actively for carbon consultants. Copies of mail exchange between InfraVest and carbon consultants (which shall reamin in private confidentiality) dealing about the VER in Taiwan will be provided to the DOE at validation. • The income of VER has also been considered since the early stage of the project development of the two windfarms. Copy of board decisions from InfraVest to undertake Changbin and Taiching windfarm as VER projects are presented in Annex 5

The following table shows the different steps of the project development of the Changbin’s and Taichung’s windfarms, showing all milestones and when and how InfraVest considered the VER.

Table 3 : Changbin and Taichung project timeline. All emails mentioned in this table shall remain confidential and will only be disclosed to DOE during validation. Date Event Proof

2000 InfraVest opens a new office in Taiwan Business License December 2001 First consideration of carbon credits for financing email renewable energy projects September 2002 First contact with a CER broker email 2003 Quingdao Huawei Windpower is registered as a VER project 1st May 2006 Board decision to undertake the Changbin wind Board decision farm with carbon credits September 2006 Infravest approaches a carbon consultant to email4 present its new projects in Taiwan. 21st Sep. 2006 Loan form bank, IKB Deutsche and KfW for Contract

2 the project was registered as a VER project and not as a CDM because the Chinese DNA does not allow foreign companies to develop CDM project in China. 3 http://www.cdmbazaar.net/documents/CN_WPP_CDM_PDD_22_11_2006.pdf 4 The first email making reference to carbon credits is dated from the 5th September and first explicit mention of Changbin is from the 19th September. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Changbin phaese 1 and 2. This date is considered at the „financial closure of the Project Activity“. 22nd Sep. 2006 Turbines for Changbin phaes 1 and 2 are contracted December 2006 Construction start of Changbin phase I February 2007 Infravest askes KfW to help them to find a carbon email consultants April 2007 South Pole starts its activities in Taiwan June 2007 First contact between South Pole and Infravest email 10th July 2007 First draft of the cooperation agreement between contract SP and InfraVest 1st Nov. 2007 Production start of Changbin phase I December 2007 Construction start of Changbin phase II 7th Dec. 2007 Cooperation agreement between SP and contract InfraVest is signed December 2007 Construction start of Taichung July 2008 ERPA is signed between SP and InfraVest contract November 2008 Production start of Taichung

As it can be seen in the table above, Infravest was aware since 2001 of carbon credits and of its financial impact on wind projects. The VER has always therefore been seriously considered by InfraVest as a mean to compensate low grid tariff in Taiwan.

In the beginning September 2006, Infravest started to look actively for some carbon consultant that would be able to handle VER projects in Taiwan, but the discussions failed after a few month due to the difficulty for the carbon consultant to find a VER buyer and their rel. In February 2007, InfraVest even asked KfW to help them to find a carbon consultant able to work in Taiwan.

South Pole is the first carbon consultant present on the island; it started its activities in April 2007, and two months after, in June 2007, South Pole established the first contact with InfraVest. The first cooperation agreement was drafted in July and was signed in December 2007. The ERPA between SP and InfraVest is signed in July 2008.

As discussed above, it is clear that : - Infravest has always considered the carbon credits as a mean to finance its windfarms, and this before the financial closure of ChangBin (21st Sep. 2006) - Infravest has always sought actively for a carbon credits consultants, before and during the construction of Taichung and Changbin’s windfarms.

As prescribed by the Gold Standard the projects’ additionality is demonstrated through use of the Tool for the demonstration and assessment of additionality (version 5).

STEP 1. Identification of alternatives to the project activity consistent with current laws and regulations

This step involves the definition of realistic and credible alternatives to the project activity PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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that can be part of the baseline scenario.

Sub-step 1a. Define alternatives to the project activity:

In the situation where the proposed project activity would not be implemented, the shareholders of InfraVest Wind Power Group do not have alternative investment options which generate a similar amount of electricity production as the proposed VER project activity. An alternative to the project activity therefore would be “no action” from the project participants.

Considering the above, the following alternatives have been identified, for the generation of the amount of electricity generated by the project activity:

Alternative A Changbin and Taichung wind farms without VER credits Alternative B Same amount of electricity produced by other facilities not under the control of project participant (No action from the investors)

Sub-step 1b. Enforcement of applicable laws and regulations

The mandatory preliminary permits have been obtained for the project activity, showing that it is in compliance with the current laws and regulations.

 Tai-power renewable energy premium purchase program 5  Electricity law6  Electricity registration law7

All the alternatives to the project outlined in Step 1a above are in compliance with applicable laws and regulations.

For the demonstration of additionality, both UNFCCC and Gold Standard guidelines allow to conduct a barrier analysis or a financial analysis. Taking into account the fluctuation of EURO and rising cost of construction material between the moment when decision to build the windfarms and the operation start, a financial analysis conducted with the data available in 2006 would be irrelevant, we therefore choose to conduct a barrier analysis.

Step 3. Barrier analysis

Sub-step 3a. Identify barriers that would prevent the implementation of type of the proposed project activity:

The following barriers would have prevented the implementation of the project if it was not developed as a VER project.

5 http://www.moeaboe.gov.tw/opengovinfo/Laws/secondaryenergy/LSecondaryMain.aspx?PageId=l_secondary_list 6 http://law.moj.gov.tw/Scripts/Query4B.asp?FullDoc=%A9%D2%A6%B3%B1%F8%A4%E5&Lcode=J0030011 7 http://law.moj.gov.tw/Scripts/Query4B.asp?FullDoc=%A9%D2%A6%B3%B1%F8%A4%E5&Lcode=J0030012 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Barrier 1 : Financial Barrier The main barriers for the development of the project are linked to finance. Infravest is a non-listed and recent company in Taiwan developing a new type of business requiring a lot of finance. InfraVest had difficulties securing a loan for development of the project, for the following reasons:

 Lack of Project Finance: When developing Changbin and Taichung project, Infravest had already started construction of the Miaoli windfarm (first Infravest’s wind project in Taiwan), for which the German IKB Deutsche Industriebank and KfW granted a loan in Euro. In hope to reduce the risk of currency fluctuation for the Changbin and Taichung project, InfraVest began talks in 2005 for a syndication loan8 led by local China Trust Bank. Unfortunately, despite Miaoli was already under construction, the Taiwanese banks were reluctant to grant a loan for a newly type of business for which InfraVest had no local evidence to demonstrate its wind farm building capability.

Table 4 : the history of InfraVest to fund the wind projects Date Event

Beginning 2005 Initial talks on financing Changbin and Taichung wind farms with banks led by China Trust Bank (CTCB). July 2005 A term sheet is signed between Infravest and CTCB. The CTCB start its Due Diligence of the projects. September Infravest organizes a visit of Miaoli windfarm (in construction at that 2005 time) to the banks involved in the syndication loan. July 2006 Miaoli wind farm completed 21st Sep. 2006 Signed financing contract for Changbin phases 1 and 2 with German Banks, IKB Deutsche Industriebank and KfW

In July 2006, Miaoli wind farm started the operation and proved a successful implementation of wind power generation, so InfraVest tried to resume the talks with the group of banks led by local China Trust Bank for the Changbin and Taichung wind farm which would begin its construction in late 2006. However, a country wide crediting risk happened because of the over usage of credit cards and cash cards but lack of debt paying ability which severely corroded the banks’ profitability. China Trust bank is the bank that owns the most credit card users in Taiwan. Hence, the group of banks was reluctant to continue the talk with InfraVest. In addition, local banks didn’t feel comfortable with the newly emerging business that requires a large amount of capital in the beginning of the project and a long duration of payback period. Therefore local banks led by local China Trust Bank refused to grant a loan to InfraVest.

Without other options, InfraVest therefore signed the financing contract with IKB

8 A syndication loan involves more than one bank for financing, usually due to the large size of the loan and the high possibility of default risks. After the negotiation between the project owner and the leading bank, discussion among the other banks are usually necessary to decide whether the group of the banks grant the loan. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Deutsche Industriebank and KfW in September 2006 (the same group of banks that already financed the Miaoli windfarm). As for Miaoli the loan granted is in Euro, Infravest has therefore to carry all risk of currency fluctuation.

 Low Internal Rate of Return: The national electricity utility guarantees to purchase the electricity at 2 TWD /kWh (EURO 0.043/kWh9) for 15 years10 which is circa half of the tariff a wind developer would get in Europe11. This low feed-in-tariffs affects the project IRR. According to project owner’s projections, Changbin project’s IRR for 20 years is expected to be 5.2%12.

 Unexpected cost increase in construction materials Due to the high oil price increase, the prices for raw materials (mainly cement and steel) also soared well in 2 digits (15% to 20%) in the past 2 years. Such out of original planning costs increase has significantly worsen the Project’s profitability.

Barrier 2 : Lack of prevailing practice Changbin and Taichung are the first wind projects over the 50MW threshold in Taiwan. Environment Protect Administration states that wind farms over 50MW built in “Non Planned City District” are required to conduct an environmental impact assessment13. The EIA takes time for both government and environmental NGOs to conclude whether the impact of a wind farm meets the requirement. As the first IPP to undertake a windfarm of that scale, InfraVest bears the financial risks when waiting for the administrative process. The longer the process, the more money on administration and other wind farm building backups, thus elongates the payback period.

Barrier 3 : Absence of a clear regulatory framework Taiwan is a country highly dependent on imported primary energy for power generation, viewing the trend for pricier crude oil; Taiwanese government initiated a National Energy Conference in hope to restructure the country energy mix and to come out an intergovernmental plan to realize CO2 reduction. In 2005 during the National Energy Conference, an Energy Policy Whitebook14 was elaborated. The

9 2 TWD /kWh at the exchange rate of €/TWD=47 from Taiwan First Bank on 20th Feb (http://nb1.firstbank.com.tw/bbs/index.asp) 10 Taipower purchase electricity operation details, (http://www.taipower.com.tw/TaipowerWeb//upload/files/14/main_3_1_9_2.pdf) 11 An overview of european wind feed-in-tariffs is available on the following EU document : eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2005:0627:FIN:DE:PDF - 12 IRR calculation table of Changbin’s windfarm is confidential and will be disclosed to the DOE during validation. 13 Standards for determining specific items and scope of environmental impact assessments for development activities, Article 29, IV,5 (http://law.epa.gov.tw/en/laws/571925793.html) 14 Energy Policy Whitebook (http://web2.moeaboe.gov.tw/ECW/Policy/EnergyWhitePaper/94/main/main.html) PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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project of Renewable Energy Act 15 is derived from this Whitebook. Because of the political stalemate in the past 8 years, the government hasn't enacted the whole package of Renewable Energy Act yet. According to the draft:  There would be soft loans, with an interest rate depending on the post bank's 2-year deposit rate plus 2.45% with a loan period of maximum 10 years.

 Tax incentives: Parts of the turbine not produced in Taiwan are tax free.

 Feed in Tariff is NT$2, the electricity from IPP will be purchased by Taipower, the state run utility. But the calculation of the feed in tariff is still controversial.

The entire Renewable Energy Act has not been enacted. At this moment, the tax incentives are limited to waiver on certain imported equipments for renewable energy power generation and the green tariff remains low at 2TWD/KWh.Without successful legislation of Renewable Energy Act has stopped many international prudent investors from Japan and Europe to the market. This is confirmed by Dr.Wen16 from ITRI, a well known specialist of wind power in Taiwan; the absence of a clear regulatory framework and the low grid tariff proposed are the main barriers that prevent wind developers to invest in Taiwan and is therefore the reason why only one IPP is active now on this market.

Barrier 4 : Monetary risk The project participants have obtained a loan fixed to Euro. Despite a 15 year purchase guarantee on the electricity generated, the wholesale price for the electricity is fixed at Taiwan Dollar (TWD). The high fluctuation in the exchange rates between Euro and TWD17 brings significant financial risks for the cash flows of the project. Table 4 shows the trend of currency exchange rates between New Taiwan Dollar and Euro.

15 Draft of Renewable Energy Act (www.ey.gov.tw/public/Attachment/20050615160058780.doc) 16 Please consult ITRI (Contact: Yan, Wen-Jyh [email protected]) 17 http://finance.yahoo.com/currency/convert?from=EUR&to=TWD&amt=1400&t=5y PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Figure 1 : Currency fluctuation since 2004 to 2008

The EURO is now more than 20% expensive than it was in 2006, when the loan from IKB Deutsche and KfW banks was granted. This raise of the Euro increases the loan repayment and thus drastically reduces the profitability of the project. As VERs are indexed to Euro, the income of VER will thus not fluctuate and represent a more secured and reliable source of revenues for InfraVest. The revenue from carbon credits here clearly allow to reduce the monetary risk linked to the loan.

Barrier 5: Technological barriers Equipment selection: Due to the loan contract with the German bank, German made turbines are to be chosen. Under such conditions, Enercon is the brand of turbine used for the wind farm, which compares with others, is justified by higher quality, reliability, extensive technical support, grid friendliness, lower maintenance requirements and noises. However, it amplifies the investment volume, thus posing another barrier.

Technology Transfer: InfraVest set up its office in Taiwan in 2000. Since then, InfraVest has been making efforts in analyzing market feasibility, searching for wind farm sites and drafting out its wind project pipelines in Taiwan. Right after the completion of Miaoli wind farm in July 2006 began the construction for Changbin and Taichung in late 2006. During Changbin’s and Taichung’s approval stage, there is still no existing commercialized wind farm in the market, while the technology and know how transfer is a significant factor for the sustainable development of wind farms. Since the wind energy market is underdeveloped in Taiwan, the procurement of specific services and equipment at a desired level of quality in Taiwan is difficult, thus a large portion of the PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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required technology must be imported.

Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity):

Alternative B, no action by the project participants is not hindered by the identified barriers. Alternative A faces several barriers, the Project is thus the only alternative that faces several barriers, and the project is thus additional.

Step 4 : common practice analysis

Sub-step 4a. Analyze other activities similar to the proposed project activity:

As far as similar activities to the Project are concerned, wind power plants under IPP18 model with comparable installed capacities can be identified.

Table 5. Wind Farms in Taiwan, till 200719, plus IPP projects under development. Total Completion Benefits Location Capacity Date Project Owner from VER (MW) Taipower 1st Nuclear Power Plant 3.96 Dec-04 Taipower No Taipower 3rd Nuclear Power Plant 4.5 Jan-05 Taipower No Datan Power Plant 4.5 Jun-05 Taipower No Sinjhu Project 12 Feb-06 Taipower No Guanying Project 30 Dec-05 Taipower No Taichung Power Plant 8 Feb-06 Taipower No Taichung Harbour Project 36 Aug-06 Taipower No Jhangbin Project 46 Dec-06 Taipower No ZhuNan InfraVest IPP No Houlong 4.98 2006 InfraVest IPP No Chengloong Paper autoproducer Chungfen Project 3.5 2003 Company No Mailiao 2.64 2000 Formosa Heavy autoproducer No Zhunan and Dapeng IPP (Miaoli) Project 49.8 July 2006 InfraVest Yes Changbin (Phase I) 75.9 Nov 2007 InfraVest IPP Yes

18 Independent Power Producer 19 Statistics from ITRI (Contact: Yen, Wen-jih [email protected]) PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Changbin (Phase II) 27.6 Aug 2007 InfraVest IPP Yes Taichung 46 Nov 2008 InfraVest IPP Yes

As shown in the table above, InfraVest is the only wind power IPP active in Taiwan. Two other private projects can also be identified (Mailiao and Chungfen), but they are not comparable in size with Taichung and Changbin and where subsidized at 50% circa and therefore cannot be considered as a similar option.

Sub-step 4b. Discuss any similar options that are occurring: Among current players in wind farm development, Taipower is the first and owns the most wind farms in Taiwan. Taipower is already operating 145MW and is planning to install several hundred MW20.

With politically suppressed low electricity prices to end users, wind farms developed by TaiPower are economically feasible only because they are cross-subsidized by profits from its fossil-fueled power plants. This makes TaiPower’s wind farm economically viable, while Combared to that, IPPs such as InfraVest have to struggle for profitability with low green tariff. As it is state utility, Taipower didn’t consider carbon money to finance its wind farm projects because developing renewable energy is mandated by the government. This is in compliance with the Energy Policy Whitebook from 200521 and Taipower’s finance and profitability is secured to a great extent. As the national utility, Taipower has no choice but invest in renewable energy in accordance to the government policy.

Conclusion of the common practice analysis

Similar activities to the proposed project activity can be observed in Taiwan, but essential distinctions between the Infravest wind farm and Taipower wind farms can be reasonably explained, thus the proposed project activity is not a common practice.

Conclusion of the additionality demonstration

The proposed project activity faces several barriers and cannot be considered as a common practice. VER revenues help the project activity to overcome these barriers by reducing the overall risk profile of the project through an improved financial feasibility and a reduced currency change risk. The emissions reductions from the proposed Project are therefore additional to what would have occurred in absence of the project activity

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

20 ITRI 21 Energy Policy Whitebook (http://web2.moeaboe.gov.tw/ECW/Policy/EnergyWhitePaper/94/main/main.html) PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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According to the methodology ACM0002 version 07, if the project activity is the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the following:

Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system”.

Therefore :

(equation 1) ERy = EFgrid,CM,y * Ely

Where :

EFgrid,CM,y Combined Margin Emission Factor in year 2007

Ely Net electricity delivered to grid by the Project

ERy Emission reduction in year 2007

STEP 1. Identify the relevant electric power system A project electricity system is defined by the spatial extent of the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. Taiwan is an island with no cable connection with the continent; the spatial extent of the Project Boundary is defined as the insular electricity grid of Taiwan operated by Taipower.

Two main source of data are publicly available in Taiwan : - Taipower provides power plant level data net generation of all the power plant dispatched by itself (which mainly include all power plants except circa 200 cogeneration plants operated by independent producers but representing only a small fraction of the total generation). - National electric statistics (from the Bureau of Energy22 or from the Ministry of Economic Affairs23), which give access to electricity production and fossil fuel consumption in Taiwan by sector. As it will be explained below, the second set of data will be used for calculating the operating margin and the first one for calculating the build margin.

22 23 http://www.moeaec.gov.tw/opengovinfo/Plan/all/files/EnergyStatisticalDataBook.pdf PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Figure 2 : Taiwan power grid map in 200524

Taiwan is an island, and it doesn’t have any transmission line with its neighbouring countries, therefore electricity imports or exports will not be considered in the following calculations

24 http://www.taipower.com.tw/TaipowerWeb//upload/images/3/e_main_14.gif PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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STEP 2. Calculation of the Operating Margin (EFOM,y) There are 3 nuclear power plants in Taiwan, but there is no indication that is obviously used as must-run. Thus only nuclear, hydro and wind power plants are included as low-cost/must-run resources, hereafter referred as lc-mr, which turns out to be between 23.1% and 20.4% of the total electricity generation on average during years 2002 and 2006:

Table 6. Gross and Net Electricity Generation (EGy) in Taiwan. Type Unit 2002 2003 2004 2005 2006 Hydro GWh 6,348.6 6,871.5 6,529.6 7,866.1 7,938.8 Coal fired GWh 59,615.6 61,274.3 61,979.1 65,769.9 68,794.0 Oil fired GWh 16,029.1 14,016.3 11,383.4 10,919.6 14,465.0 LNG fired GWh 20,129.8 21,495.2 20,977.6 22,862.1 24,930.2 Wind GWh 7.9 9.8 12.8 76.9 174.1 Nuclear GWh 39,552.9 38,889.6 39,490.1 39,972.0 39,870.5 IPP GWh 22,485.4 28,530.5 35,417.2 37,523.8 36,972.5 Cogeneration GWh 34,659.7 37,983.2 42,606.9 42,458.8 42,225.4 Energy sector own use GWh 18,070.5 18,123.4 19,245.4 18,560.5 18,746.3 Total gross electricity generation GWh 198,829.0 209,070.4 218,396.7 227,449.2 235,370.5 Net Generation excl. lc-mr (EGy) GWh 125,803.3 134,796.2 144,054.1 153,803.7 160,787.9 Share of lc-mr % 23.1% 21.9% 21.1% 21.1% 20.4%

The baseline methodology allows a choice among four methods for the calculation of OM emission factor; (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch Data Analysis OM, or (d) Average OM Since the average share of electricity generation by lc-mr plants for five most recent years is found to be less than 50% (see Table 6), option (a) is chosen. The simple OM emission factor can be calculated using either of the two data vintages: • Ex-ante option, where a 3-year generation-weighted average based on the most recent data is used. Monitoring and recalculation of the emission factor is not required, or • Ex-post option, where the data of the year is used, in which the project activity displaces grid electricity. Yearly update of the emission factor is required. The ex-ante option is selected to carry out the baseline methodology for the Project. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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STEP 3. Calculate the operating margin emission factor according to the selected method

The Simple OM emission factor is calculated as the generation weighted average CO2 emissions per unit net electricity generation of all generating power plants serving the system, excluding lc-mr sources using one of the following approaches; • Option A: Based on data on fuel consumption and net electricity generation of each power plant/unit, or • Option B: Based on data on net electricity generation and the average efficiency of each power unit and the fuel types used in each power unit, or • 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.

Complete plant-specific data required by Options A and B are unavailable, Taipower can furnish some plant specific data but only for the power plants they operate, these numbers do not comprise all IPP for which plant specific statistics are not available. Option A can be used, as only renewable sources and nuclear are considered as lc-mr power sources and the quantity of electricity supplied to the grid by these sources is known. According to the “Tool to calculate the emission factor for an electricity system”;

"FCi,y * NCVi,y * EFCO2,i,y i (equation 2) EFgrid ,OMsimple,y = EGy where :

! EFgrid,OMsimple,y Simple operating margin CO2 emission factor in year y(tCO2/MWh)

FCi,y Amount of fossil fuel type i consumed in the project electricity system in year y (mass or volume unit) NCVi,y Net calorific value (energy content) of fossil fuel type i in year y (energy unit / mass or volume unit) EFCO2,i,y CO2 emission factor of fossil fuel type i in year y (tCO2 /energy unit)

EGy Net electricity generated and delivered to the grid by all power sources serving the system, not including low-cost / must-run power plants / units, in year y (MWh) i All fossil fuel types combusted in power sources in the project electricity system in year y y the three most recent years for which data is available at the time of submission of the CDM-PDD to the DOE for validation

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The data regarding the electricity production sector in Taiwan can be found in the “Taiwan Energy Statistical Handbook 2006”25. The handbook contains total generation data for each type of power plants, i.e. hydro, coal, nuclear, oil, wind, LNG (liquefied natural gas), natural gas, IPP and cogeneration for year 1986 to 2006. It also contains the total consumption in tones (for coal), in m3 (for LNG) and in KLOE (kilo liters equivalent oil) of all the electricity generation industry. Typical NCV of fossil fuel produced or imported in Taiwan are also provided but there are not any official emission factors for the Taiwanese fossil fuels, we thus have to use the IPCC default values26. In order to be conservative, we thus assume that the emission factor of “Petroleum products” was the one of “crude oil” and the emission factor of “steam coal” was the one of the bituminous coal.

The tables below summarize all parameters used for the operating margin calculation:

Table 7. Net Calorific Values (NCVi,y) and emission factors (EFCO2,i,y) of fossil fuel used for this calculation

Fuel type Parameter unit value source Coal IPCC 2006. Emission factor EFcoal tCO2/t fuel 2.441 for “other bituminous”

NCVcoal ------LNG EFLNG tCO2/MWh 0.231 IPCC 2006 “Taiwan Energy Statistical 3 NCVLNG kCal/m 9,900 Handbook 2006” Natural gas EF natural gas tCO2/MWh 0.202 IPCC 2006 “Taiwan Energy Statistical 3 NCVnatural gas kCal/m 9,000 Handbook 2006” Petroleum IPCC 2006. Emission factor products EFpetroleum products tCO2/MWh 0.264 for “crude oil”. NCVpetroleum “Taiwan Energy Statistical products kCal/l 9,000 Handbook 2006”

The following table summarizes fossil fuel consumption of the electricity industrial sector in Taiwan from 2004 to 2006, theses numbers can be found in the “Taiwan Energy Statistical Handbook 2006” .

25 http://www.moeaec.gov.tw/opengovinfo/Plan/all/files/EnergyStatisticalDataBook.pdf 26 Revised 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook, P1.23 and P1.24 in Chapter one. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Table 8. Fossil fuel consumption (FCi,y) of the thermal power plant of Taiwan.

Fuel Type Unit 2004 2005 2006 LNG imported 106 m3 7,034.1 7,582.1 7,805.5 Natural gas indigenous 106 m3 5.5 5.0 4.7 Coal 103 T 42,731.8 45,407.9 46,998.4 103 Petroleum products KLOE27 4,286.6 4,290.9 5,048.6

Thus we have :

EFgrid,OMsimple,y (component 2006) tCO2/MWh 0.868

EFgrid,OMsimple,y (component 2005) tCO2/MWh 0.867

EFgrid,OMsimple,y (component 2004) tCO2/MWh 0.855

EFgrid,OMsimple,y tCO2/MWh 0.863

STEP4. Identify the cohort of power units to be included in the build margin In this step, a generation-weighted average emission factor is calculated based on a sample of power plants, which have been taken into operation recently. The sample group of power plants/units m used to calculate the build margin consists of either: (a) The set of five power units that have been built most recently (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.

As we mentioned above there is no power plant level data published for Taiwan describing net generation and fossil fuel consumption. Taipower is only able to provide a list of all power plants operated by themselves and their net generation from 1997 to 2007. In Taiwan there are more than 200 different Cogeneration IPP producing less than 10% (7% in 2006) of the energy delivered to the grid. Neither Taipower, neither the Bureau of energy can provide statistics for these 200 IPPs. Hence, as per the Request for Deviations from TUEV-SUED dated the 8th November 200528,29, we restrict the calculation of the Build-in Margin to the power stations dispatched by the state operator (for which plant level data is available and which still represents more than 90% of the total generation). The list of power plant included “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” consists in all power plants installed since 1999. In 1999, two power plants were built Mailiao coal plant and 海湖, but 海湖 was commissioned earlier in the year, we therefore include only Mailiao in the BM which is enough to reach the 20% threshold.

27 KLOE : Kilo Liter Oil Equivalent 28 http://cdm.unfccc.int/UserManagement/FileStorage/WQ36099LN35UZMVLDI1WJM9L9UJ5LW 29 http://cdm.unfccc.int/UserManagement/FileStorage/AM_CLAR_M64EHVL0ORCZ63BG7HIRZYJSF 4HRZ4 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Table 9 : List of power plant inserted in the build margin. Name in English, Chinese, the year they start producing and the 2006 annual generation are provided.

% of total 2006 operation generation production 2006 Chinese Name English name start date (excluding the (in kWh) cogeneration) 麥寮 Mai Liao Jun-99 24.04% 14,076,838,639 和平 Hai Hu 2001 14.15% 6,723,145,800 新桃 Ho Ping 2001 9.43% 2,431,458,000 卓蘭 Hsin Tao 2001 7.73% 175,397,066 中屯風力 Dro Lan 2001 7.60% 18,115,256 Chung Tung Wind 烏山頭 2002 7.59% 51,126,600 Power 國光 Wu Shan Tou 2003 7.55% 1,604,366,513 嘉惠 Kuo Kuang 2003 6.43% 2,122,543,566 星彰 Chia Hui 2003 4.94% 1,673,890,771 豐德 Hsing Chang 2003 3.76% 3,346,089,468 卑南 Feng De 2004 1.41% 9,029,838 石門風力 Bei Nan 2004 1.41% 9,477,241 大潭 Shin Men Wind Power 2005 1.40% 1,754,553,133 觀音風力 Da Tan 2005 0.17% 100,165,860 大潭風力 Guang Yin Wind Power 2005 0.10% 13,335,676 恆春風力 Da Tan Wind Power 2005 0.09% 11,857,459 Infravest Heng Chun Wind Power 2005 0.08% 92,664,460 香山風力 2006 0.01% 761,690 中火風力 Shang Shan Wind Power 2006 0.01% 6,263,201 彰工風力 Chung Huo Wind Power 2006 0.01% 14,065,612

Step 5. Calculate the build margin emission factor

The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows:

" EGm,y • EFEL,m,y m (equation 3) EFgrid ,BM ,y = " EGm,y m

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) PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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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

The CO2 emission factor of each power unit m (EFEL,m,y) should be determined as per the guidance in step 3 (a) for the simple OM, using options B1, B2 or B3, using for y the most recent historical year for which power generation data is available, and using for m the power units included in the build margin.

We choose option B2 because we only have access to fuel type and electricity generation and the emission factor should be determined based on the CO2 emission factor of the fuel type used and the efficiency of the power unit, as follows:

EFCO2,m,i,y (equation 4) EFEl,m,y = "m,y

Where :

EFEL,m,y ! CO2 emission factor of power unit m in year y (tCO2/MWh) EFCO2,m,i,y Average CO2 emission factor of fuel type i used in power unit m in year y (tCO2/MWh) ηm Average net energy conversion efficiency of power unit m

The following table summarizes the values adopted for ηm ,EGm,y, EFCO2,m,i,y and EFEL,y.

Table 10 : EGm,y, EFCO2,m,i,y and EFEL,m,y of all power plant included in the build margin (y=2006). Technology Fuel EGm,y/ηm EGm,y EFCO2,m,i,y employed efficiency EFEL,m,y english name (ηm) MWh tCO2e/MWh tCO2e Mai Liao 14,076,839 Coal 0.341 supercritical 45% 31,281,864 10,667,116 Hai Hu 6,723,146 Coal 0.341 subcritical 39% 17,238,835 5,878,443 Ho Ping 2,431,458 LNG 0.231 CC 60% 4,052,430 936,111 Hsin Tao 175,397 hydro 0 Dro Lan 18,115 wind 0 Chung Tung Wind 51,127 hydro 0 Power Wu Shan Tou 1,604,367 LNG 0.231 CC 60% 2,673,944 617,681 Kuo Kuang 2,122,544 LNG 0.231 CC 60% 3,537,573 817,179 Chia Hui 1,673,891 LNG 0.231 CC 60% 2,789,818 644,448 Hsing Chang 3,346,089 LNG 0.231 CC 60% 5,576,816 1,288,244 Feng De 9,030 hydro 0 Bei Nan 9,477 wind 0 Shin Men Wind Power 1,754,553 LNG 0.231 CC 60% 2,924,255 675,503 Da Tan 100,166 wind 0 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Guang Yin Wind Power 13,336 wind 0 Da Tan Wind Power 11,857 wind 0 Heng Chun Wind Power 92,664 wind 0 Infravest 762 wind 0 Shang Shan Wind Power 6,263 wind 0 Chung Huo Wind Power 14,066 wind 0 34,235,146 21,524,725

Therefore, EFgrid,BM,y = 21,524,725 / 34,235,146 = 0.629 tCO2e/MWh

Step 6. Calculate the combined margin emissions factor

The Baseline Emission Factor is calculated as a Combined Margin, using the weighted average of the Operating Margin and Build Margin.

EFgrid ,CM ,y = wOM " EFgrid ,OM ,y + wBM " EFgrid ,BM ,y Equation (5)

The operating margin emission factor ( EFgrid ,OM ,y ) of Taiwan is 0.863 tCO2e/MWh and the

build margin emission factor ( EFgrid ,BM ,y ) is 0.629 tCO2e/MWh. The defaults weights for wind power are used as specified in the emission factor tool: w 0.75; w 0.25 ! OM = BM =

! The result of the Baseline Emission Factor ( EFy ) calculation is 0.805 tCO2e/MWh. ! ! ! B.6.2. Data and parameters that are available at validation:

Data / Parameter: EGy Data unit: GWh Description: The net electricity generation excluding the low-cost must-run (2002- 2006) Source of data used: “Taiwan Energy statistical handbook 2006” section 12 and 13 Value applied: Table 6 page 25 Justification of the The net electricity generation excluding the low-cost must-run has been choice of data or determined by subtstracting from the total gross generation the hydro, description of nuclear, wind and “own energy sector use”. measurement methods

and procedures actually applied : Any comment: PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Data / Parameter: FCi,y Data unit: ton or 1000 m3 Description: Total amount of fossil fuel type i consumed by power plants/units in year y Source of data used: Taiwan Energy statistical handbook 2006, section 1, 6, 8 and 10. Value applied: Table 8 page 28 Justification of the Fuel consumption breakdown by power plant/unit is unavailable, total choice of data or consumption amounts are published annually. description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: HVi,y Data unit: kCal Description: Heating values of fuels consumed in thermal power plants by the electric utilities Source of data used: Taiwan Energy statistical handbook 2006. Page 122. Value applied: Table 7 page 27 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: NCVi,y Data unit: TJ/kt or TJ/milion m3 Description: Net calorific value of fossil fuel type i in year y Source of data used: Value applied: Table 7 page 27 Justification of the Net calorific values of fuels used for power generation are not provided choice of data or directly, but they are calculated by dividing HVi,y by FCi,y, both of which description of are officially published. measurement methods and procedures actually PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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applied : Any comment:

Data / Parameter: EFCO2,i,y

Data unit: tCO2/TJ

Description: CO2 emission factor of fossil fuel type i in year y Source of data used: The lower limits of the 95% confidence interval stated in the “2006 IPCC Guidelines for National Greenhouse Gas Inventories”, Volume 2, Chapter 1 (energy) Table 1.4. Value applied: Table 7 page 27 Justification of the Emission factors for “coal” and “petroleum products” have been choice of data or respectively and conservatively chosen as “other bituminous” and “crude description of oil”. measurement methods and procedures actually applied : Any comment:

Data / Parameter: m Data unit: - Description: Cohort of power plant to include in the build margin Source of data used: Communication from Taipower. A copy of the original excel file will be provided to the validator. Value applied: Table 9 page 29 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: EFCO2,m,i,y

Data unit: tCO2/MWh

Description: Average CO2 emission factor of fuel type i used in power unit m in year y

Source of data used: The lower limits of the 95% confidence interval stated in the “2006 IPCC PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Guidelines for National Greenhouse Gas Inventories”, Volume 2, Chapter 1 (energy) Table 1.4. Value applied: Table 8 page 30 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: EFEL,m,y

Data unit: tCO2/MWh

Description: CO2 emission factor of power unit m in year y Source of data used: Calculated. Value applied: Table 8 page 30

Justification of the EFEL,m,y is calculated according to equation 4. choice of data or description of measurement methods and procedures actually applied : Any comment:

Data / Parameter: ηm Data unit: % Description: Average net energy conversion efficiency of power unit m in year. Source of data used: “Tool to calculate the emission factor for an electricity system” (Version 01). Annex 1 Value applied: Table 8 page 30 Justification of the The tool provides some default efficiency according to the technology. choice of data or When the technology of the plant is unknown, we apply conservatively description of the highest efficiency proposed according to the construction date (“old measurement methods (before 2000)” or “New (after 2000)”). and procedures actually applied : Any comment:

Data / Parameter: EFy PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Data unit: tCO2e/MWh Description: Emission factor of Taiwan Source of data used: calculated Value applied: 0.805 Justification of the The Baseline Emission Factor is calculated as a Combined Margin, choice of data or using the weighted average of the Operating Margin and Build Margin. description of measurement methods and procedures actually applied : Any comment: The emission of the build and operating margin are calculated according to the ex-ante option.

B.6.3 Ex-ante calculation of emission reductions:

Table 11. Outcome Summery of Baseline Calculation

Parameter Definition Value unit

EFgrid,OM,y Operating Margin Emission Factor in year 0.863 tCO2e/MWh 2007

EFgrid,BM,y Build Margin Emission Factor in year 2007 0.629 tCO2e/MWh

EFgrid,CM,y Combined Margin Emission Factor in year 0.805 tCO2e/MWh 2007

Changbin Emission Reduction

Ely_ Net electricity delivered to grid by Changbin 348,000 MWh Changbin at full capacity

ERy_ Emission reduction from Changbin wind farm 280,071 tCO2e Changbin project

Taichung Emission Reduction

Net electricity delivered to grid by Taichung at 159,000 MWh Ely_Taichung full capacity

ERy_Taichun Emission reduction from Taichung wind farm 127,964 tCO2e g project

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Net electricity delivered to grid by the Project 507,000 MWh Ely at full capacity

ERy Emission reduction 405,621 tCO2e

B.6.4 Summary of the ex-ante estimation of emission reductions:

Year Estimation of Estimation of Estimation of Estimation of project baseline leakage emission activity emission (tonnes reductions emission reduction CO2e) (tonnes reductions (tonnes CO2e) (tonnes CO2e) CO2e) 2007 0 41,850 0 41,850 (1/11/2007 to 31/12/2007) 2008 0 203,615 0 203,615 (1/01/2008 to 31/12/2008) 2009 0 405,621 0 405,621 (1/01/2009 to 31/12/2009) 2010 0 405,621 0 405,621 (1/01/2010 to 31/12/2010) 2011 0 405,621 0 405,621 (1/01/2011 to 31/12/2011) 2012 0 405,621 0 405,621 (1/01/2012 to 31/12/2012) 2013 0 405,621 0 405,621 (1/01/2013 to 31/12/2013) 2014 0 338,017 0 338,017 (1/01/2014 to 31/10/2014) Total 0 2,611,586 0 2,611,586 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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

B.7.1 Data and parameters monitored:

Data / Parameter: Ely Data unit: MWh Description: Quantity of electricity supplied to the recipient plant j by the project activity during the year y in MWh Source of data to be Measurement records of the generators used: Value of data applied For Changbin El2007= 52,000 MWh; El2008= 253,000 MWh; In 2009 and the for the purpose of following year Ely= 345,000 MWh calculating expected emission reductions For Taichung: Ely= 159,000 MWh in section B.5 Description of Continuously monitored and recorded on a monthly basis. measurement methods and procedures to be applied: QA/QC procedures The energy meters will undergo maintenance/calibration to the national to be applied: standards and industry standards. Sales records and purchase receipts are used to ensure the consistency.

Any comment:

B.7.2 Description of the monitoring plan:

The proposed project applies “Approved consolidated baseline and monitoring methodology ACM0002” Version 7 for preparing the monitoring plan.

Monitoring Objective

The baseline emission factor of Taiwan is fixed during the first crediting period by ex-ante calculations. Hence, the monitoring plan does not provide further monitoring work for baseline emissions.

For project emissions, project participant will monitor the net annual electricity generation.

As per ACM0002, there is no need of leakage calculation or monitoring for this kind of activity.

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The operational and management structure of the proposed project is summarized within the table below.

Table 12 Operational and Management Structure

Name Organization Responsibility Dr. Feifel is the president of InfraVest ,Taiwan and takes the Dr. Karl Eugen Feifel InfraVest responsibility of overall project management. Mr. Casemir is the monitoring system engineer of Changbin and Taichung windfarms. He is in charge of data recording processing and reporting for the project. The data will be either Mr. Nils Casemir InfraVest automatically recorded or manually recorder by operators. All data will be imported to Excel for validation or verification. Please see Section B.7.1 for more details of procedures of monitoring and recording. Mr.Nils Casemir is the monitoring system engineer of Taichung and Changbin Mr. Nils Casemir InfraVest windfarms. Please see Section B.7.1 for more details of procedures of monitoring and recording. South Pole Carbon Asset Management Ltd. will provide review of reported data South Pole Carbon South Pole before they are submitted to DOE for validation or verification.

Monitoring equipments

The main meters will be operated by Taipower and located on the high voltage side of the substation.

The Backup meters are located in each turbine and operated by the project owner.

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Data Collection: Taipower is responsible for operation monitoring of the main meters and guarantee that the measuring equipments are in good operation and completely sealed. The electricity recorded by the main meters (ChangBin, LuGang and Taichung) alone will suffice for the purpose of billing and emission reduction verification as long as the main meter error is within the allowable tolerance. The main monitoring process is as follows: i The project owner sells the electricity to the Taipower; as the Electricity Purchase Agreement ii Taipower provides an electricity receipt confirmation to the project owner and the confirmation is stored by the project owner. iii The project owner keeps the records of the main meter’s data readings for verification by the DOE.

If inaccuracy of the reading data from the main meter exceeds the allowable tolerance, when the meter operates abnormally during a month or any other unexpected problems occur, the net amount of electricity exported to the grid shall be determined by using readings from the same month last year or average previous 3 records, when in necessary, two parties should negotiate on the result. 30

Calibration The verification and calibration of electricity meters will be carried out periodically according to relevant national electric industry standards and regulations. After verification and calibration, meters will be sealed. All meters will be jointly inspected and sealed on behalf of the project owner and Grid Company and shall not be accessible by either party except in the presence of the other party or its accredited representatives.

Data Management

The project owner will collect electricity receipts for the power delivered to the grid. At the end of each crediting year, a monitoring report will be compiled detailing the metering results backed up by sales receipts.

Physical documentation will be collected and stored by the project owner in a central place, together with the monitoring plan. In order to facilitate the auditor’s reference, monitoring results will be indexed. All data records will be kept for a period of 2 years following the end of the crediting period.

B.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completing the final draft of this baseline section : July 25, 2008

The baseline has been prepared by South Pole Carbon Asset Management Ltd. in

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consultation with InfraVest GmbH.

Name and contact details of the person responsible for the baseline section:

François Beaurain South Pole Carbon Asset Management Ltd. Technoparkstrasse 1 8005 Zurich Switzerland Phone: +41 44 633 78 70 Fax: +41 44 633 14 23 [email protected]

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:

The start date of the project activity is chosen as the earliest date financial closure date of the two windfarm i.e. 21 September 2006.

C.1.2. Expected operational lifetime of the project activity:

The grid tariff is only guaranteed for 15 years, the operational lifetime of the project activity is therefore chosen as fifteen 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:

01/11/2007

C.2.1.2. Length of the first crediting period:

7 years

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

Not applicable

C.2.2.2. Length:

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Not applicable

SECTION D. Environmental impacts

D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:

The assessment of Environmental Impacts (EIA) of both windfarms was carried out by InfraVest and was supervised by the Environmental Protection Agency (EPA). Both EIA reports are available on the website of the Ministry of Environment and Natural Resources of Taiwan (http://www.epa.gov.tw/).

For Changbin wind farm, the EPA organised the first examination meeting of the Environmental Impact Assessment of Phase I the 21st September 2004 and the site visit later the 8th December 2004. The visit of phase II was held Later, on the 17th January 2005.

On the 29th November 2004, the EPA concluded to offer the conditional approval to the Taichung project.

All requirement made by the EPA were completed for both projects, and therefore the project activity has started to work. Both EIA have similar structure and conclusions that are summarised below :

Table 12 : Requirements and main conclusions of the EIA Requirement of the EPA Conclusion Actions to take Physics and 1. Terrain, Because the west coast faces Breakwind is further to Chemical Geology and directly the wind blow, although be planted. Environment Earth the turbines are proved to lower Assessment the speed of the wind, additional breakwind are recommended for this area to stop the thick sands from the wind. 2. Water Quality No negative effects are reported. The project is not in the water quality protection area and is in a safe distance of any source of drinking water. 3. Waste from No projects

4. Noise and Wind turbines produce low Vibration frequency noises; the impact is thus considered limited 5. Weather and Air Concerns over dust that might fly InfraVest responded Quality in the air during the construction that they will water the phase are raised. land (dust is emitted when moisture content Another impact on the air quality of land is insufficient) might be the sulphur emissions. during construction to PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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minimize the impact on Impact on weather is limited. the air quality

InfraVest commits to adopt low sulphur diesel engines to reduce the pollution during construction.

Ecology 6. Animal Life on Concerns regarding the impact of Bird watching points Environment the land the wind farm on birds activity is are set to monitor the raised. wind farm impact on the birds activity.

7. Research on The wind park will be Birds lightened during night to reduce accidents of birds flying at night.

Sociology 8. Residents The project activity will make the and Characteristics second industry (manufacturing) Economy and third industry (services) more prosperous by bringing almost 50 job opportunities 9. Economic Job opportunities are increased Environment and the service industry and income of the local residents will be promoted as well 10. Industry The windfarm is expected to Structure promote tourist activities in the area and give some opportunities to the local industries. Farming will not be influenced by the project activity. 11. Usage of Land Concerns over the usage of land arise from Taiwan’s mountainous geographical characteristic which limited the human’s activity space and agrarian lands. However, the project is to develop in terms of dots not facets, meaning the distance between every turbine is considered significant and there is plenty of room for other purpose of land, if any. Basically there will be no severe impact on the usage of land. Because the turbines are built on public land, managing by the government, that are not of agrarian or residential purposes. 12. Infrastructure There will be 10 staffs during construction period in average time while 30 in peak time; PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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employment will be mainly offered to local residents that there wouldn’t be extra demand for existing infrastructure. 13. Transportation: Impact on traffic depends on the overview and service quality of the road during traffic analysis the transportation of staff, machine and material; The project derived one way traffic is 29 p.c.u31/hr, the construction period is short and the transportation will avoid the heavy hours that in general the overall impact on traffic is limited Tourism 14. Scenery Study Concerns over construction that it Impact and might devastate the scenery of Entertainment the area. However, the Study Breakwind would cover the construction scene during the construction period Cultural 15. Excavation No excavation found. Environment 16. Ancient No ancient buildings in the Buildings designated site for the wind farm have been reported. 17. Cultural No impact on close cultural Customs and customs and religions activities Religions

Prior to EIA, InfraVest conducted a survey using questionnaire to serve the purpose of stakeholder consultation, which constituted as part of the EIA report. On 4 May, 2005, InfraVest received the conditional offer from the Environmental Protection Bureau. Before construction in 2006, InfraVest organized the public hearing according to the Environment Impact Assessment Law, Article 732 “For those circumstances in which the competent authority deems in the review conclusion in the foregoing paragraph that it is not required that a phase Ⅱ environmental impact assessment be conducted and for which permission is received, the developer shall hold a public explanation meeting.” Issues addressed in the meeting are summarized in Section G.2.

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:

See table in section D1.

31 Passenger car unit 32 http://law.epa.gov.tw/en/laws/379692190.html#art08 PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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SECTION E. Stakeholders’ comments

E.1. Brief description how comments by local stakeholders have been invited and compiled:

Concerning the interests of the local stakeholders, the project owner collected opinions from them in various occasions and forms.

Public Consultation in EIA According to Environment Impact Assessment, public hearing to the local residence is necessary before the construction (see Environment Impact Assessment Law, Article 7). The public hearing was arranged on 18th July 2006 for Changbin and on 19th June 2006 for Taichung.

For Changbin, the invited attendants include Industrial Development Bureau, Bureau of Energy, Environmental Protection Agency, Taipower, Changhua County, Changhua County Environmental Protection Bureau, Shangsi Township, Lugang Township, Shangsi representative of residents, Lugang representative of residents and local residents.

For Taichung, the invited attendants include Bureau of Energy, Environmental Protection Agency, , Taichung County, Environmental Protection Bureau Taichung County, Tachia Township, Taan Township, Tachia representative of resident, Daan representative of resident, and local residents.

19th June, 2006 Public hearing required by the Environment EIA33 Impact Assessment of Taichung windfarm was held at Tachia township government

18th July, 2006 Public hearing required by the Environment EIA34 Impact Assessment of Changbin’s windfarm was held at the Service Center of Industrial Technology Research Institute, Changbin Industrial District.

Email and Web Stakeholder Consultation (23rd may 2008) Two separate email and web consultations have been organized: one for the Changbin wind farm and one for the Taichung wind farm. They were started on 23rd May 2008 separetely for both projects.

South Pole Carbon Asset Management Co., Ltd. Invited international stakeholders through emails. Recipients of invitation included Gold Standard, local supporters of Gold Standard, Greenpeace and WWF in China; and HongKong, academic researchers and local NPOs for Taichung project.

33 The EIA is more than 300 pages. It has not been attached to the document, but a copy will be provided to the DOE during validation upon request. 34 The EIA is more than 300 pages. It has not been attached to the document, but a copy will be provided to the DOE during validation upon request. PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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South Pole Carbon Asset Management Co., Ltd. made public the non-technical descriptions of the project design document and potential environmental impacts through the website of “http://www.southpolecarbon.com/goldstandard_consultations.htm”. Comments from stakeholders over the internet were invited.

GS Main Stakeholder Consultation (to be conducted in 2008) South Pole Carbon Asset Management Co., Ltd. made public the non-technical descriptions of the project design document and potential environmental impacts through the website of “http://www.southpolecarbon.com/goldstandard_consultations.htm”. Comments from stakeholders over the internet were invited.

E.2. Summary of the comments received:

Two separate public consultations have been organized: one for the Changbin wind farm and one for the Taichung wind farm.

Public Consultation in EIA for Changbin wind farm The public hearing required by the Environment Impact Assessment was held at the Service Center of Industrial Technology Research Institute, Changbin Industrial District, on 18th July, 2006. The goal of the public hearing is to communicate with the local residence and to solve their concerns over the project.

List of people invited to the meeting : 20 days before the meeting, Invitations were sent by letter (see annex 6). The 18th of July 2006, 30 people, excluding the staff from project owner attended the meeting. Attendee’s presence list is annex 7. Local press came to report this event as well. 1. IDB (Industrial Development Bureau) 2. BOE (Bureau Of Energy) 3. EPA (Environmental Protection Agency) 4. TPC (Taiwan Power Company) 5. ZhangHwa County 6. ZhangHwa County EPB (Environmental Protection Bureau) 7. ShangSi Township 8. Lugang Township 9. ShangSi representative of resident 10. Lugang representative of resident 11. Local resident

Program of the meeting : 1. Presentation: the host, Ms, Yuni Wang, VP of InfraVest made a 30-minute briefing on the company introduction, background of building the wind farm and reasons to initiate the consultation. She appreciated the attendees’ participation on behalf of the project owner and sincerely invited comments from these people. 2. Discussion: the VP of InfraVest, Yuni Wang is the moderator during the 90-minute discussion.

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The full report is attached in annex in Chinese and a short summary in English is as following.

The general outcome of the meeting was positive; the stakeholders are in favour of the project. The key concerns addressed in the stakeholders’ meeting regarding Changbin Wind Project can be summarized as following:  The job opportunities to the locals created by the project  Project owner’s contribution to the neighbourhood, especially the monetary return  The possibility of developing the wind farm as a tourist spot

The habitants emphasised the importance of the job opportunities created by the project. InfraVest GmbH stated that it is their will to have the locals hired for the construction, operation and maintenance in the hope to bring this area to a prosperous future. InfraVest GmbH is willing to cooperate with local governments on the relevant job training, environmental education activities and tourist spot development.

InfraVest GmbH also committed to provide the neighbourhood with the cash reward totalled €8,511/MW35, paid in 20 years once the wind farm begins its operation.

During the consultation, the following concerns were raised by the public. The following table summarizes the concerns and the response made by InfraVest :

Concerns raised Response Noise evaluation and the lines to In terms of the noise evaluation, InfraVest GmbH connect the national grid might answered that the low frequency noise is less than devastate the view 35 dB(A) and the turbines are erected in areas far from the factory and residence district, therefore the noise nuisance is not perceived as a problem. And to the concerns that whether the lines to connect the national grid might devastate the view, InfraVest GmbH said all the lines will be constructed underground which won’t have impact on the view To build the wind farm one might InfraVest further explained that the turbines are to have to cut down trees in the be set up at the border of the windbreak forest or windbreak forest the empty field and that they won’t have to cut down the trees. Plants will be planted around the area to make the area greener.

The project owner is not the There was a minor issue raised that why the wind national electricity utility but IPP farm developer is an independent power provider. To this, InfraVest GmbH replied that it requires both public and private sector’s effort to achieve the governmental goal of installing 2,159 MW of wind

35 €/NT$=47 from Taiwan First Bank on 2008/2/20 (http://nb1.firstbank.com.tw/bbs/index.asp)

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power by 2010

Public Consultation in EIA for Taichung wind farm

The public hearing required by the Environment Impact Assessment was held at the first meeting room in Tachia township government, Taichung County, on 19th June, 2006. The goal of the public hearing is to communicate with the local residence and to solve their concerns over the project.

List of people invited to the meeting : Before the meeting, invitations were sent by letter. On the 19th of June 2006, more than 40 people, excluding the staff from project owner attended the meeting. Attendee’s presence list is annex 7. 1. BOE (Bureau Of Energy) 2. EPA (Environmental Protection Agency) 3. TPC (Taiwan Power Company) 4. Taichung County 5. Taichung County EPB (Environmental Protection Bureau) 6. Tachia Township 7. Taan Township 8. Tachia representative of resident 9. Taan representative of resident 10. Local resident

Program of the meeting : 1. Presentation: the host, Ms, Yuni Wang, VP of InfraVest made a 30-minute briefing on the company introduction, background of building the wind farm and reasons to initiate the consultation. She appreciated the attendees’ participation on behalf of the project owner and sincerely invited comments from these people. 2. Discussion: the VP of InfraVest, Yuni Wang is the moderator during the 90-minute discussion.

Short summary of the meeting

The full report is attached in annex in Chinese. We present here only a short summary in English.

The general outcome of the meeting was positive; the stakeholders are in favour of the project. The key concerns addressed in the stakeholders’ meeting regarding Taichung Wind Project can be summarized as following:  The job opportunities to the locals created by the project  Project owner’s contribution to the neighbourhood, especially the monetary return  The possibility of developing the wind farm as a tourist spot

The habitants emphasised the importance of the job opportunities created by the project. InfraVest GmbH stated that it is their will to have the locals hired for the construction, operation and maintenance in the hope to bring this area to a prosperous future. InfraVest PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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GmbH is willing to cooperate with local governments on the relevant job training, environmental education activities and tourist spot development.

InfraVest GmbH also committed to provide the neighbourhood with the cash reward totalled €2,960/MW36, paid in 20 years once the wind farm begins its operation.

During the consultation, the following concerns were raised by the public. The following table summarizes the concerns and the response made by InfraVest :

Concerns raised Response The availability of job opportunity to InfraVest emphasized that they will make the jobs the local neighbourhood. available whenever possible.

Threat to preserved species of birds After detail survey, there is not preserved species living in the project site. Potential of wind farm becomes InfraVest expresses their interest and willingness to tourist spot assist and help such goal being met.

Email and Web Stakeholder Consultation South Pole Carbon sent the email invitation on 23rd May 2008, to Gold Standard , Gold Standard supporting organizations in Hong Kong, local non profit organizations (NPOs) and academic researchers. The NPOs we sent the invitation to are Taiwan Environmental Information Center (TEIA)37 and Delta Foundation38. They are chosen because their websites are catered to communicate with the popularity; transforming the knowledge or environmental issues to a daily language that makes the topic easier to access. Considering these, the project participants think they might be able to provide comments represent the majority of the stakeholders. The academic researchers chosen are specialists from the Environmental Science and Engineering area. • Professor Cheng served in the UNEP based in Kenya before he accepted the teaching profession in Tonghai university. Now the director of environmental science and engineering department, he is often invited to participate in the public/ private project evaluation from the environmental point of view. • Dr. Shen works closely with the Industrial Technology Research Institute (ITRI) to promote the industrial carbon reduction project. He has good knowledge on CDM, and global carbon trading mechanism.

Therefore, we believe these two experts would be able to give the neutral feedbacks from their experiences and knowledge.

36 €/NT$=47 from Taiwan First Bank on 2008/2/20 (http://nb1.firstbank.com.tw/bbs/index.asp) 37 Website of TEIA: http://teia.e-info.org.tw/ 38 Website of Low Carbon Life Blog, Delta Foundation http://lowestc.blogspot.com/ PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Simultaneously, the invitations together with all documents were uploaded to the website of South Pole Carbon Asset Management Ltd, at address of: http://www.southpolecarbon.com/goldstandard_consultations.htm.

Documentation prepared in Mandarin (Chinese official language). These documents are available as hardcopies and will be handed over to the Designated Operational Entity (DOE) conducting the Gold Standard validation process.

Comments from the Consultation

Two emails have been received during the email consultation (see annex ?)

Response 1 : TEIA apologized for not being able to provide any comments on the project because of the limited time and human resources in the organization. They appreciated our invitation but addressed that reviewing the project is beyond their capability at the moment39.

Response 2 : Professor Cheng, didn’t comment on the project nor state any major concerns in the questionnaire.

Comments from the Internet No comment was received from the Internet.

GS Main Stakeholder Consultation To be elaborated later on during validation.

E.3. Report on how due account was taken of any comments received:

No negative comments received up to the date of the completion of this PDD.

Comments after the email/web and main stakeholder consultations will be added after completion.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: InfraVest GmbH Street/P.O.Box: 10-2F, No. 9, Sec. 2, Roosevelt Rd., Building: City: Taipei State/Region: Postfix/ZIP: 100 Country: Taiwan Telephone: +886 2 2395 4886 FAX: +886 2 2395 1580 E-Mail: [email protected] URL: http://www.infra-vest.com/ Represented by: Karl Eugen Feifel Title: President Salutation: Dr. Last Name: Feifel Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: [email protected]

Organization: South Pole Carbon Asset Management Ltd. Street/P.O.Box: Technoparkstr. 1 Building: / City: Zurich State/Region: Zurich Postfix/ZIP: 8005 Country: Switzerland Telephone: +41 44 633 78 70 FAX: +41 44 633 14 23 E-Mail: [email protected] URL: www.southpolecarbon.com Represented by: Renat Heuberger Title: / Salutation: Mr. Last Name: Heuberger Middle Name: / First Name: Renat Department: / Mobile: / PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

There is no public funding from Annex I countries involved in the project activity.

Annex 3

BASELINE INFORMATION - - - - -

Annex 4

MONITORING INFORMATION - - - - -

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Early Consideration for Gold Standard

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Annex 6

OFFICIAL DOCUMENT AS INVITATION FOR STAKEHOLDER CONSULTATION

(JUNE 28TH 2006)

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Annex 7

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Attendee’s list of Taichung’s public hearing (July 18th 2006) : PROJECT DESIGN DOCUMENT FORM (CDM- SSC- PDD) - Version 03

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Attendee’s list of Changbin’s public hearing (July 18th 2006) :

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