PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
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 PDD)
CDM – Executive Board
page 2
SECTION A. General description of project activity
A.1 Title of the project activity:
Wind Park at the Orites Archimandritas, Cyprus
PDD completed: 17 June 2008
Applied Methodology: ACM 0002/Version 7
A.2. Description of the project activity:
The purpose of the Orites Wind Farm Project is to install and operate a wind farm, which will be producing renewable electricity from wind. The produced electricity will be fed into the National Grid of the Electricity Authority of Cyprus and sold on the basis of a Power Purchase Agreement to be concluded with the Transmission System Operator and the Electricity Authority of Cyprus.
The project activity will generate greenhouse gas (GHG) emission reductions by avoiding CO2 emissions from electricity generation by fossil fuel power plants that supply the National Grid.
Commissioning is planned for 01/07/2008.
The site of the Orites Wind Farm Project is located at the Southern coast in the Paphos District of the Republic of Cyprus. The project development comprises of the installation of 72 turbines with a rated capacity of 2 MW each, resulting in a total capacity 144 MW. The technical terms for the grid connection at the high voltage system are currently being investigated by the Transmission System Operator.
Wind measurements were carried out for a period of three years (from 2005 to 2008). According to an energy yield calculation based on this wind data the annual electricity production is expected to be 294,378 MWh per year.
The project will represent one of the first wind farms ever to be realized in the Republic of Cyprus. It will assist the country in establishing and promoting the use of grid connected renewable energy technologies. Hence it will contribute to a reduction of GHG emissions.
With regard to sustainable development the project contributes in several ways:
• Reduction of CO2 and other air pollutants through development of renewable technology • Contribution towards achieving the targets and objectives of the country’s policy regarding the promotion and the use of renewable energies in order to increase the contribution of electricity consumption from renewable energy sources from 0% to 6% by 2010 and 13% by 2020. • Infrastructure development in the environs of the project will also attract visitors for environmental and teaching purposes • Creation of local employment during construction and later on for maintenance and operation, thus creating and strengthening local knowledge and experience in this new technology.
PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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The construction of the Project has been approved by the Ministerial Council of Cyprus on April 2008. The EIA of the Project has been approved by the Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment, Cyprus) on 12/10/2006.
Owner of the windfarm will be D.K.Wind Supply Ltd which will be responsible for technical and commercial management.
A.3. Project participants:
Name of Party involved ((host) Private and/or public Kindly indicate if the Party indicates a host Party) entity(ies) project participants involved wishes to be (as applicable) considered as project participant (Yes/No) Cyprus (Host) Private entities: No 1) D.K.Wind Supply Ltd, and 2) C.D.M. Trading Ltd. (development, realization, operation; project participants)
A.4. Technical description of the project activity:
A.4.1. Location of the project:
The project is located close to the Pano Archimandrita and Souskiou communities in the Paphos region and Alectora community in the Limassol region in the Republic of Cyprus and is located approximately 2km northwest of the Pano Archimandrita community. The town of Paphos is at a distance of some 20 km towards the west as indicated in the following map. The land in the general area is used primarily for agricultural purposes. The land on which the wind farm will be located is government owned or administered and the required lease permits are already secured. Access to the site is very good via the Limassol-Paphos highway and the Kouklia-Archimandrita road.
PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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A.4.1.1. Host Party (ies):
The Host country is Cyprus.
A.4.1.2. Region/State/Province etc.:
The project is located in the Paphos and Limassol Districts (boarder).
A.4.1.3. City/Town/Community etc:
The project is in the environs of the village of Pano Archimandrita and at a distance of some 20 km from the town of Paphos.
A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page):
The wind farm’s terrain is mildly hilly. The highest point of the area is at an altitude circa 450m and the UTM WGS84 coordinates of 467.766 and 3,842,920 (Centre of Area). The project is located close to the Pano Archimandrita and Souskiou communities in the Paphos region and Alectora community in the Limassol region in the Republic of Cyprus and is located approximately 2km northwest of the Pano Archimandrita community. The town of Paphos is at a distance of some 20 km towards the west. The land in the general area is used primarily for agricultural purposes. The land on which the wind farm will be located is government owned or administered and the required lease permits are already secured. Access to the site is very good via the Limassol-Paphos highway and the Kouklia-Archimandrita road.
PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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A.4.2. Category (ies) of project activity:
The project is specified as “Renewable electricity generation in grid connected applications” (from wind energy) and falls within sectoral scope 1: energy industries Renewable sources).
A.4.3. Technology to be employed by the project activity:
According to the meteorological data of the Meteorological Service of Cyprus, the project side has abundant wind resource. The annual wind speed at 85m height is 5.85 m/s with stable prevailing wind direction.
The total installed capacity of the Project is 140MWwith 72 sets of V90 – 2MW turbines with a unit capacity of 2MW. The estimated electricity delivered the national Grid by the Project is 294,378 MWh per year.
According to the Application Report of the Project, the Project owner has carried out compare of technological parameters and prices of various models with different unit capacities, while taking into account of power generation, cost and benefit. As a result, the V90 – 2MW turbines manufactured by Vestas Wind Systems A/S of Denmark were finally selected for the Project. The implementation of which will be conducive to the technology transfer.
The wind farm will be connected to the transmission system (high tension at 132kV) through a dedicated substation from where the electricity will be fed into the National Grid.
The turbines will be supplied and installed by VESTAS Wind Systems A/S of Denmark, on a turn-key basis.
Infrastructure work such as preparation of roads, building of foundations and cabling will be carried out by local companies.
A.4.4 Estimated amount of emission reductions over the chosen crediting period:
Renewable crediting period 10 years is adopted by the Project. It is expected that the project activities will generate emission reductions for about 234,148 tCO2e per year over the 10 year crediting period from 01/01/2010 to 31/12/2019.
This reduction results from the displacement of the generation of electrical energy from the fossil fuel fired plants that would otherwise have fed electricity into the national grid.
Years Annual estimation of emission PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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reductions in tonnes of CO2 2010 234,148 2011 234,148 2012 234,148 2013 234,148 2014 234,148 2015 234,148 2016 234,148 2017 234,148 2018 234,148 2019 234,148
Total estimated reductions (tCO2e) 2,341,480 Total number of crediting years 10 Annual average over the crediting period of 234,148 estimated reductions (tCO2e)
A.4.5. Public funding of the project activity:
There will be no public funding.
PROJECT DESIGN DOCUMENT FORM (CDM PDD)
CDM – Executive Board
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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:
Approved consolidated baseline methodology ACM0002 (Version 7): “Consolidated baseline methodology for grid-connected electricity generation from renewable sources” and “Consolidated monitoring methodology for grid-connected electricity generation from renewable sources”.
The Tool for the Demonstration and Assessment of Additionality ver. 03.
B.2 Justification of the choice of the methodology and why it is applicable to the project activity:
Wind power generation technology is a renewable electricity generation technology which displaces fossil fuel-fired power generation technology to supply electricity to the grid. Therefore the Project applies the consolidated baseline methodology ACM0002 approved by CDM EB to determine the project baseline and calculate GHG emission reduction achieved by wind power generation.
The project meets all applicability conditions of the consolidated baseline methodology ACM0002 as follows: o The Project involves the electricity capacity additions from wind power plant. o The Project does not involve switching from fossil fuels to renewable energy at the site of the project activity. o The geographic and system boundaries for the relevant electricity grid, the Cypriot grid, can be clearly identified and information on the characteristics of the grid is available.
According to the consolidated baseline methodology ACM0002, the consolidated baseline methodology ACM0002 is applied in compliance with the consolidated monitoring methodology ACM0002 and the additionality of the Project is demonstrated and assessed by using the Tool for the Demonstration and Assessment of Additionality ver. 03 approved by CDM EB.
Data and information used in the PDD of the Project are mainly from the Application Report of the Project and the verified emissions (under European Emission Trading Scheme) from the fossil fuel-fired power generation of Cyprus made publicly available on the Cyprus ETS Registry.
B.3. Description of how the sources and gases included in the project boundary
The area is free of any activity producing any GHG emissions or pollution. The project itself is a non emitting activity. In line with the methodology, the only greenhouse gas accounted for in the calculation of the emission reductions is CO2. System boundaries include the project site and the transmission substation.
The spatial extent of the project boundary is the Cypriot power grid, with all power plants in Cyprus connected to it, including the project site. The connection shall be at the high voltage transmission system PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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at a new transmission substation at the project site. The Cypriot power grid is not connected to any other electricity system. Therefore in line with the methodology chosen, no imports or exports need to be included in the calculation of the operating margin.
Due to the isolated location of Cyprus, the power grid is not connected to any other grids. There are no imports or exports.
Emissions sources included in or excluded from the project boundary [add/delete gases and sources as needed]
Source Gas Included? Justification/Explanation Electricity generation of CO2 Yes Main emission sources. those fossil fuel – fired CH4 No Excluded for simplification. This Baseline power plants connected is conservative. to the Cypriot power N2O No Excluded for simplification. This grid. is conservative. Project emission CO2 No The project is a wind power Project CH4 No project that the project emissions Activity N2O No should not be considered as per ACM0002.
B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:
The baseline scenario provided by the approved methodology ACM0002 is the following:
Electricity delivered to the grid by the project 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 below.
Security of supply is an important priority in Cyprus, because of the isolation and the lack of local fossil primary energy sources. Oil has so far been the only energy source. By Dec. 2005 there were three grid connected power plants in Cyprus (Dhekelia, Moni and Vasilikos) with an overall installed capacity of 1,118 MW. Oil (Heavy Fuel Oil (HFO) and Diesel) has a 100% share in electricity production.
There are no typical low cost/must run resources in Cyprus.
According to the national Transmission System Operator (TSO) the merit order of power plants is as follows: o Vasilikos Steam Plant (Units 1-3) o Dhekelia Steam Plant (Units 1-6) o Moni Steam Plant (Units 1-6) o Moni Gas Turbine (Units 1-4) o Vasilikos Gas Turbine
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Due to the isolated location of Cyprus, the power grid is not connected to any other grids. There are no imports or exports.
The key data used to determine the baseline scenario are provided in tables B2-1, B2-2 and B2-3.
Table B2-1: Installed capacity Year Installed capacity for Electricity Production of Cyprus (verified data) (MW) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 360 180 260 800 150 38 188 0 988 2006 360 180 260 800 150 38 188 0 988 2007 360 180 390 930 150 38 188 0 1.118
Table B2-2: Net electricity generated GENj,y Year Net electricity generated GENj,y of Cyprus (verified data) (MWh) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 1,828,667 497,348 1,735,560 4,061,575 37,768 3,141 40,909 0 4,102,484 2006 1,768,290 417,436 2,159,537 4,345,263 16,744 700 17,444 0 4,362,707 2007 1,811,943 378,464 2,284,252 4,474,659 39,919 6,895 46,814 0 4,521,473
Table B2-3: Fuel used Fi,j,y Year Fuel used Fi,j,y for Electricity Production of Cyprus (verified data) (t) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 521,039 182,075 400,128 1,103,242 14,846 1,470 16,316 0 1,119,558 2006 500,443 149,895 486,936 1,137,274 6,577 285 6,862 0 1,144,136 2007 516,637 139,462 518,557 1,174,656 13,532 2,502 16,034 0 1,190,690
The above tables show that the oil-fired electricity generation and therefore the corresponding CO2 emissions of the Cypriot Grid have increased annually between 2005 and 2007.
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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):
Application of the “Tool for the demonstration and assessment of additionality” (version 03) to demonstrate the additionality of the project activity.
The additionality of the project activity is demonstrated using the Tool for the Demonstration and Assessment of Additionality (version 03) approved by CDM EB.
It will be argued and demonstrated that: o there are several alternatives to the project activity that result in the same type of services, and that comply with all relevant regulations and policies of Cyprus, o without CDM, the project faces relevant barriers and is not commercially attractive, o the project is not common practice, o the potential of registration as a CDM project activity is expected to eliminate these barriers towards the implementation of the project sufficiently for the project to go ahead.
Step 1. Identification of alternatives to the project activity consistent with current laws and regulations
The objective of the Step 1 is to define realistic and credible alternatives to the project activity(s) that can be (part of) the baseline scenario through the following sub-steps:
Sub – step 1a. Definition of alternatives to the project activity
Realistic and credible alternatives available to the Project that provide outputs or services comparable to the proposed CDM project activity include: o the proposed project not undertaken as a CDM project activity; o the same service of power supply is provided from grid;
As electricity demand in Cyprus is expected to keep increasing for the next couple of decades, the continuation of the current situation with no project activity or other alternatives undertaken is no realistic alternative.
It will be demonstrated in Step 3 that construction of wind power plants in Cyprus without the CDM opposes barriers and is therefore not the baseline.
Consequently, the realistic and believable alternative is that the power supply is added from the Cypriot grid with be prevailing fuel mix, which is therefore the baseline of the project.
Sub – step 1b. Consistency with mandatory laws and regulations
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All alternatives identified above are in compliance with relevant Cypriot laws and regulations for environmental protection, energy conservation, sustainable development and electricity generation in Cyprus.
As either Investment Analysis (Step 2) or Barrier Analysis (Step 3) can be applied, the Barrier Analysis is chosen in this case.
Step 3: Barrier Analysis
Sub – step 3a: Identification of barrier that would prevent the implementation of the proposed project activity
The following barriers would prevent the implementation of the proposed project if it was not registered as a CDM project activity: o Barriers due to prevailing practice: The project activity is one of the “first of its kind”. No wind energy project is currently operational in Cyprus. The current electricity production in Cyprus is determined by the thermal power plants which are operated by the Electricity Authority of Cyprus (EAC). With the liberalization of the energy sector other producers of conventional (fossil) energy will enter into the market, but compared to the installed capacity of the EAC they will only play a minor role. The proposed wind farm will be one of the first large-scale ones to be realized.
There are also regulatory difficulties due to a lack of regulation and process definitions. The proposed project has been initiated in 2002 by D.K.Wind Supply Ltd. However, the final regulations referring to town planning/ building laws for wind farms have only recently been issued and are still being followed as guiding principle only. Hence obtaining permits is still a lengthy process. o Technological barriers: The lack of installed wind power capacity and respective infrastructure and experiences also means technological barriers (e.g. AM0005 (p.4) claims technological barriers if technology penetration rate is less than 5% within the sector; in Cyprus electricity generation from wind power plants currently is 0%). There is no experience in the country regarding the implementation and the operation of such electricity plants. Major efforts need to be made regarding the proper realization of the infrastructure. The project introduces technology and equipment from abroad. All materials and even crane facilities for erection of the turbines will have to be imported, leading to higher installation costs. The relevant infrastructure and competencies are not readily available in Cyprus and need to be developed. o Investment barriers: The barriers described above contribute to the financial institutions perceived risks associated with the operation and maintenance of the equipment. There are also uncertainties concerning the sales prices: For the first five years the operator will receive 9.18 €ct/kWh. But for the next ten years the price will partly be set based on the average of the Annual Operating Duration Reports of the first 5 years. Besides, the island of Cyprus is not known for excellent wind conditions.
What is more the contract length for the power purchase agreement is 15 years only. Although the law allows an extension of further 5 years, the price level is not clear.
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Sub – step 3b: Demonstration that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity)
The alternative being the further development of the Cypriot generation mix as described in step 1 it would not be prevented by either one of the above barriers. The technology which is used in current electricity generation has no such innovative and therefore risky character as the proposed project activity. The barriers to the implementation of the proposed project basically result from its special status as one of the “first of its kind” in Cyprus.
Step 4: Common practice analysis
Sub – step 4a: Analyze other activities similar to the project activity To date there is no wind power generation capacity installed in Cyprus. However two other wind farm projects, at Mari and Alexigros (12 and 43.5 MW respectively) have passed the verification stage (TUV 2006).
A several other wind farms are in preparation. However, it is not known at the moment if and when they will be implemented. The only wind farms project which is expected to start operation in 2008 is Alexigros Wind Farm Project, which is also carried out as a CDM project activity.
It has to be concluded that wind farms are not ‘widely observed’ and ‘commonly carried out’ in Cyprus.
Sub – step 4b: Discuss any similar options that are occurring:
If the Project fails to be registered as a CDM project, without CERs sales revenues, the high cost of the Project can not be compensated and the loan payback can not be guaranteed. Being registered as a CDM project, CERs sales revenues can alleviate the identified barriers, therefore the Project is additional.
Realizing that the CERs sales revenues can alleviate the investment barriers faced by the Project, CDM had been taken into consideration seriously when the Project was in stage of planning. The fact that the CERs sales revenues are the basis of the investment decisions made by the project owner has been explicitly demonstrated in the project application report.
To summarize the CDM registration will have the following impacts: o Creation of an additional income stream from the sale of CERs, substantially increasing the economic attractiveness of the project. All the barriers discussed in step 3 reduce the attractiveness of the project to investors. Creation of the additional income stream is expected to help in securing the finance of the project at all and on better terms than otherwise would have been possible; o Raising interest of foreign participants in the project, expecting it to be successfully registered as a CDM project activity in order to buy the CERs. If the project is registered as a CDM project activity, the emission reduction is about 234,148 tCO2/a. Assuming a CER forward price of e.g. 8 €/CER the anticipated income will be in the range of 1,873,184 €/year. This would be sufficient to make the proposed project a reasonably attractive proposition for the investors, even considering the risks related to the project. The risk of financing (banks and investors) would be mitigated and reduced from uncertainties concerning sales prices and contract length;
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Based on the above one can state that there are technological as well as relevant commercial risks for this project. Without the CDM the proposed project does not present an economically attractive investment opportunity. Taking into consideration the significant technological and investment barriers and barriers due to prevailing practice in conjunction with renewable energies and specifically with wind energy in Cyprus, investors will be reluctant to invest in the project in the absence of carbon finance. The emission reductions from the proposed project are therefore additional to what would have occurred in the absence of the CDM project activity.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
The consolidated methodology ACM0002 is applied in the context of the Project in the following steps:
• Calculate the baseline GHG emissions; • Calculate the project GHG emissions; • Calculate the project leakage; • Calculate the emissions reductions.
I. Calculate the baseline GHG emissions
The Operating Margin (OM) emission factor EFOM,y can not be calculated based on dispatch data analysis as the relevant hourly data are not available. Also it has to be considered that the fuels used in base, intermediate and peak load are nearly similar, therefore a more detailed calculation with much more effort could not lead to a much different result.
Therefore the OM emission factor EFOM,y [tCO2/MWh] is calculated as the Simple OM, i.e. as the generation-weighted average emissions per electricity unit of all generating sources serving the system, not including low-operating cost and must-run power plants:
∑ F ,, yji ⋅COEF , ji , ji EF , yOM = (1) ∑GEN , yj j
with o Fi,j,y the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in year(s) y. o j the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants, and including imports to the grid. o COEFi,j,y the CO2 emission coefficient of fuel i (tCO2/mass or volume unit of the fuel), taking into account the carbon content of the fuels used by relevant power sources j and the percent oxidation of the fuel in year(s) y. o GENj,y the electricity [MWh] delivered to the grid by source j. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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The CO2 emission coefficient COEFi is obtained as
COEFi EFNCV ,2 iCOi ⋅⋅= OXIDi (2)
with o NCVi the net calorific value (energy content) per mass or volume unit of a fuel i. o OXIDi the oxidation factor of the fuel i. o EFCO2,i the CO2 emission factor per unit of energy of the fuel i.
The emission coefficients for HFO and gas oil are calculated and presented in Table B6-1.
Table B6-1: Calculation of emission coefficients Fuel i NCVi OXIDi EFCO2,i COEFi [GJ/t] [tCO2/TJ] [tCO2/t]
HFO 41.3 0.995 75.47 3.101 Gas oil 42.5 0.995 73.34 3.101
Note: The values for NCVi, OXIDi and EFCO2,i are default values for liquid fuels in the currently valid Monitoring and Reporting Guidelines4 for the EU Emissions Trading Scheme. The data can therefore be assumed to be realistic and conservative. The above values have also been used in the Emission Reports of the Electricity Authority of Cyprus (EAC), the only electricity producer in Cyprus, for its installations covered by the EU Emissions Trading Scheme. This has been confirmed by the responsible Environmental Department of the Ministry of Agriculture, Natural Resources and Environment and also by the relevant Verification Report.
In terms of the Cypriot electricity sector the 3-year vintage OM was calculated using the verified data of all operational power plants providing electricity to the grid for the years 2005, 2006 and 2007. The data of the plants used in the Operating Margin are provided in the tables presented in Annex 3.
The BM emission factor EFBM,y is calculated as the generation-weighted average emission factor (tCO2/MWh) of a sample of power plants m, as follows:
∑ F ,, ymi ⋅COEF ,mi ,mi EF , yBM = (3) ∑GEN , ym m with Fi,m,y, COEFi,m and GENm,y analogous to the variables in equation D.1 except for the fact that the index m is over specific power plants rather than types of power plants, and that low-cost / must-run sources are not excluded. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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The sample group of power plants are selected by taking the power plant capacity additions that comprise 20% of the system generation (in MWh) and that have been built most recently. This is Vasilikos power plant which comprises an average of 50.7% of electricity generation in 2007. An overview of the data on the performance of Vasilikos power plant is presented in Annex 3. According to the methodology the sample group could also consist of the five power plants that have been built most recently. However in the case of Cyprus this option does not make sense, as there is only a total of three power plants in Cyprus. The baseline emissions factor EFy is calculated as the weighted average of the Operating Margin emission factor (EFOM,y) and the Build Margin emissions factor (EFBM,y):
EFy ωOM EF ,yOM ωBM ⋅+⋅= EF , yBM (4) with o the default weights are as follows: w OM =0,75 and w BM =0,25 (owing to their intermittent and non dispatchable nature).
Baseline emissions BEy are calculated as follows:
y ⋅= EFEGBE yy (5) with o BEy [tCO2] the baseline emission of Cypriot grid in year y. o EGy [MWh] the amount of power supplied to the grid by the project activity. o EFy [tCO2/MWh] the emission factor in year y, calculated according to formulas (1)-(4).
II. Calculate the baseline GHG emissions
The project is a wind power project that the project emissions should not be considered as per ACM0002, i.e. PEy = 0tCO2e.
III. Calculate the project leakage GHG emissions
According to the consolidated baseline methodology ACM0002, the main indirect emissions potentially giving rise to leakage in the context of electric sector projects result from activities such as power plant construction, fuel handling (mining, processing, and transportation), and land inundation (for hydroelectric projects). The project developer does not need to consider such indirect emissions when applying the methodology. Therefore the Project can take no account of such leakages, Ly = 0tCO2e.
IV. Calculate the emissions reductions
The emission reduction ERy by the project activity during a given year y is the difference between baseline emissions BEy, project emissions PEy and emissions due to leakage Ly, as follows: PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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y y −= − LPEBEER yy (6)
Since PEy = 0 and Ly = 0, the emission reductions due to the project are equal to the baseline emissions.
y = BEER y
(7) B.6.2. Data and parameters that are available at validation:
Data / Parameter: EFOM,y Data unit: tCO2/MWh Description: The OM emission factor Source of data used: Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under ETS. Value applied: Justification of the These are verified emission data choice of data or description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: EFBM,y Data unit: tCO2/MWh Description: The BM emission factor Source of data used: Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under ETS. Value applied: Justification of the These are verified emission data choice of data or description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: NCVi Data unit: GJ/t Description: Net caloric value of fuel i Source of data used: Monitoring and Reporting Guidelines for the EU Emissions Trading Scheme. Value applied: 41.3 for HFO and 42.5 for Gas oil Justification of the This is default value for liquid fuels in the currently valid Monitoring and choice of data or Reporting Guidelines for the EU Emissions Trading Scheme. description of measurement methods PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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and procedures actually applied : Any comment: None
Data / Parameter: OXIDi Data unit: - Description: Oxidation factor of the fuel i Source of data used: Monitoring and Reporting Guidelines for the EU Emissions Trading Scheme. Value applied: 0.995 Justification of the This is default value for liquid fuels in the currently valid Monitoring and choice of data or Reporting Guidelines for the EU Emissions Trading Scheme. description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: EFCO2,i Data unit: tCO2/TJ Description: CO2 emission factor per unit of energy of the fuel i Source of data used: Monitoring and Reporting Guidelines for the EU Emissions Trading Scheme. Value applied: 75.47 for HFO and 73.34 for Gas oil Justification of the This is default value for liquid fuels in the currently valid Monitoring and choice of data or Reporting Guidelines for the EU Emissions Trading Scheme. description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: Fuel consumption for Electricity production of Cyprus Data unit: t Description: Tonnes of fuel consumption for Electricity production Source of data used: Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under ETS. Value applied: HFO: 1,103,242 t for 2005, 1,137,274 t for 2006, 1,174,656 t for 2007, Gas Oil: 16,316 t for 2005, 6,862 t for 2006, 16,034 t for 2007,
Justification of the These are verified data choice of data or description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: Installed capacity for Electricity production of Cyprus PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Data unit: MW Description: Installed capacity for Electricity production Source of data used: Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under ETS. Value applied: HFO: 800MW for 2005, 800MW for 2006, 930MW for 2007. Gas Oil: 188MW for 2005, 188MW for 2006, 188MW for 2007.
Justification of the These are verified data choice of data or description of measurement methods and procedures actually applied : Any comment: None
Data / Parameter: Electricity generated of Cyprus Data unit: MWh Description: Electricity generated Source of data used: Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under ETS. Value applied: HFO: 4061575MWh for 2005, 4345263MWh for 2006, 4474659MWh for 2007, Gas Oil: 40909MWh for 2005, 17444MWh for 2006, 46814MWh for 2007,
Justification of the These are verified data choice of data or description of measurement methods and procedures actually applied : Any comment: None
B.6.3 Ex-ante calculation of emission reductions:
1. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:
According to the Application Report of the Project, the annual power generation is estimated to be 294,378 MWh. According to the data obtained from the Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification report under the EU Emissions Trading Scheme, the baseline emission factor for the Project is 0.7954 tCO2/MWh and the annual baseline emission of the Project is 234,148 tCO2e.
Operating and build margin are calculated as follows (for specific data and detailed calculations see Annex 3):
EFOM,2005 = 0.8463 tCO2/MWh EFOM,2006 = 0.8132 tCO2/MWh PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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EFOM,2007 = 0.8166 tCO2/MWh
EFOM,average = 0.8254 tCO2/MWh
EFBM,2007 = 0.7052 tCO2/MWh
Note: The sample group of power plants are selected by taking the power plant capacity additions that comprise 20% of the system generation (in MWh) and that have been built most recently. This is Vasilikos power plant which comprises an average of 50.7% of electricity generation in 2007. An overview of the data on the performance of Vasilikos power plant is presented in Annex 3. According to the methodology the sample group could also consist of the five power plants that have been built most recently. However in the case of Cyprus this option does not make sense, as there is only a total of three power plants in Cyprus.
Therefore the Baseline Emission Factor for the Cypriot grid is calculated to be:
EF = 0.7954 tCO2/MWh
II. Estimated project activity emissions:
The Project is a wind power project that the project emissions should not be considered as per ACM0002, i.e. PEy = 0 tCO2e.
III. Estimated project leakage emissions:
As above the ACM0002, the leakage of the Project is not considered, i.e. Ly = 0 tCO2e.
II. Estimated emission reductions:
As per formula, the annual emission reductions of the Project are 234,148 tCO2e.
B.6.4 Summary of the ex-ante estimation of emission reductions:
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Renewable crediting period 10 years is adopted by the Project. It is expected that the project activities will generate emission reductions for about 234,148 tCO2/year over the 10 year crediting period from 01/01/2010 to 31/12/2019.
Year Estimation of Estimation of Estimation of Estimation of project activity baseline leakage emission emissions emissions (tCO2e) reductions (tCO2e) (tCO2e) (tCO2e) 2010 0 234,148 0 234,148 2011 0 234,148 0 234,148 2012 0 234,148 0 234,148 2013 0 234,148 0 234,148 2014 0 234,148 0 234,148 2015 0 234,148 0 234,148 2016 0 234,148 0 234,148 2017 0 234,148 0 234,148 2018 0 234,148 0 234,148 2019 0 234,148 0 234,148 Total 0 2,341,480 0 2,341,480
B.7 Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored: (Copy this table for each data and parameter)
Data / Parameter: EGY Data unit: MWh Description: Electricity delivered by the Project to the grid in year y Source of data to be The application report of the Project used: Value of data applied 294,378 MWh for the purpose of calculating expected emission reductions in section B.5 Description of The electric net power generated by the wind park will be measured with energy measurement methods meters with a precision of 0.5%. Net electricity means produced energy less and procedures to be imported supply. The data are obtained by the grid operating company TSO who applied: reports monthly to the project proponent in writing and stores the data permanently in its data system.
The metering details are regulated in the national metering regulation of TSO who is also the owner of the metering equipment and therefore responsible for calibration and maintenance. Measures will be consolidated per month and per year. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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QA/QC procedures to This data will be directly used for calculation of emission reductions. The be applied: metering equipment will be properly calibrated and checked periodically for accuracy, to ensure that any error resulting from such equipment shall not exceed 0.5% of full-scale rating. To guarantee QC/QA, it will be double checked by receipts for electricity sales. Any comment: No other comment
B.7.2 Description of the monitoring plan:
1. Monitoring system organization chart PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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The monitoring system organization chart is shown in Figure 1, in which the authority and the responsibility of project management are defined.
Data handling Staff 1 Data report
Project manager 1 QA & QC Staff 1
Training Staff 1
CDM administration Staff 1
Figure 1: Monitoring system flowchart of Project for CDM
2. Monitoring of the Electricity Delivered to the National Grid by the Project
Baseline emission factor of the Project is determined ex ante. Therefore the electricity delivered by the Project to the national grid is defined as the key data to be monitored. The monitoring plan is drafted to focus on monitoring the electricity delivered by the Project to the national grid.
The electricity delivered by the Project to the national grid will be monitored through metering equipment at the substation (interconnection facility connecting the Project to the grid). And the data should be cross-checked against relevant electricity transaction notes.
3. Data Management System
Specific staff will be appointed by the project owner to take the overall responsibility for monitoring of greenhouse gas emission reductions and keeping all the data and information for emission reductions verification.
4. Calibration of Meters & Metering
Calibration of Meters & Metering should be implemented according to national standards and rules. All records should be documented and maintained by the project owner for DOE’s verification.
5. Quality Assurance and Quality Control
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The quality assurance and quality control procedures for recording, maintaining and archiving data shall be imported as part of this CDM project activity according to EB rules and real practice in terms of the need for verification of the emission reduction on an annual basis according to this PDD.
6. Verification
It is expected that the verification of emission reductions generated from the Project will be done annually.
Monitoring information can also be provided as described in Annex 4.
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 completion: 30/04/2008 Name/ Organization Project participation Yes/ No Mr. Theodoulos Mesimeris No Environment Officer A Competent Authority of Cyprus Environment Service Ministry of Agriculture, Natural Resources and Environment Tel: ++357 22 408948 Fax: ++357 22 774945
Email: [email protected] Detailed baseline information in included in Annex 3.
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:
01.01.2010
C.1.2. Expected operational lifetime of the project activity:
21 years ( min)
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:
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Not applicable
C.2.1.2. Length of the first crediting period:
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
01.01.2010
C.2.2.2. Length:
10 years
SECTION D. Environmental impacts
D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:
The Environmental Impact Assessment for the wind farm was carried out by Messrs. Aeoliki Ltd in June 2006 on behalf of the project developer D.K. Wind Supply Ltd. according to law 140(I)/2005. The study concludes that the proposed project is characterized by its intensive ecological status as well as its educational value as a means of shaping and developing the consciousness of the citizens and the public opinion in general, towards the RES and that it is fully compatible with the Government’s policy concerning its international and European obligations and commitments. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Generally speaking there can only be positive consequences from the development of wind parks in Cyprus. Hence the country will be in a position to present compliance towards its major international and European commitments, through a large scale project and to take advantage from the international positive publicity which will be gained as far as RES are concerned , the education of the public and the new generation and the tourist promotion that might come about. The issues of aesthetics and noise have been dealt with in the study and the conclusion can be extracted that no negative consequences exist. The same can be said also for the general issue of the transportation of the various parts of the wind park during the construction period. The distance from residential areas safeguards that there can be no other negative consequence. The loss of agricultural land from this development is negligible as the land is not in agricultural use but also because the affected land is very small. As far as wild life is concerned no negative consequence is envisaged. On the contrary if the area is permanently restricted from the hunting zones, as recommended, there will be a positive consequence on the game and wild life in general. Further specific conclusions on various issues are: No negative consequences to the natural environment Once the final positions of the towers have been identified, a careful geotechnical study must be carried out No complaints are expected due to visual interference with the ambience even though this can not be addressed right now with absolute certainly.
The study concludes that there are no important environmental aspects that can not be dealt with in this project. The general conclusion is that there will be long term positive consequences and that this development must be encouraged.
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:
The project use clean renewable energy to generate electricity. The environmental impacts comply with relevant national and EU regulations. Therefore, environmental impacts are considered not significant.
SECTION E. Stakeholders’ comments
E.1. Brief description how comments by local stakeholders have been invited and compiled:
In 2006 the EIA was made publicity available. The study was submitted to the Department of Environment of the Ministry of Agriculture, Natural Resources & Environment in August 2006. The Environment Department forwarded the EIA to relevant stakeholders, among other several government departments as well as the communities affected. The stakeholders have also been invited to the session of the Technical Committee consisting of various Government Departments, where they could submit comments or objections. The EIA together with the conclusions from the session of the Committee forms the Environmental Permit. Unsettled issues and recommendations have to be considered at application and issuance of the Town Planning Permit. The Town Planning Department also involves the PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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communities and demands their approval. Therefore the project and the EIA have also been considered in community council sessions where local stakeholders could submit comments.
With the announcement in two local newspapers on 08/06/2006 the study could be viewed at the Environment Department and comments could be submitted during a period of 30 days of the date of the announcement. Another stakeholder process has been performed according to the requirements by the Cyprus Energy Regulatory Authority (CERA). It also foresees public announcements during the process. With each publication the public has been invited to comment.
04/10/2005 Submission of application to the Energy Regulator 11/11/2005 Approval for the use of forest land in the Archimandrita area 01/05/2006 Land leased in Fasoula, Kouklia, Suskiou 16/05/2006 Announcement in the press in relation to the approval by the Energy Regulator 19/05/2006 Land leased in Alectora 08/06/2006 Announcement in the press 27/07/2006 Receipt of approval from the Energy Regulator 03/08/2006 Submission of application to Town Planning (final official decision pending) 18/08/2006 Submission of application to The Environment Service 19/08/2006 Presentation of the project to the communities of Fasoula, Kouklia, Alectora, Suskiou and Arcimandrita. 19/08/2006 Consent for the project by the communities of Fasoula, Kouklia, Alectora, Suskiou and Arcimandrita. 18/09/2006 Comments on the project received from the communities of Fasoula, Kouklia, Alectora, Suskiou and Arcimandrita. 12/10/2006 Evaluation by the Environmental Impact Assessment Committee
Compensation measures for the communities are expected to follow the new regulations of the Town Planning (2% of the income from electricity sales), which are not yet in force.
E.2. Summary of the comments received:
No negative comments have been received.
E.3. Report on how due account was taken of any comments received:
Not applicable as no negative comments have been received. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: D.K. WIND SUPPLY LTD Street/P.O.Box: Corner of Manoli Kalomiri & Marikas Kotopouli str, POB 50514 Building: Visionhire Building, Suite 201 City: Limassol State/Region: Limassol Postfix/ZIP: 3030 Country: Cyprus Telephone: +357 25331099 FAX: +357 25343044 E-Mail: [email protected] URL: www.ellinas-energy.com Represented by: Mr Kleanthis Ellinas Title: President Salutation: Mr Last Name: Ellinas Middle Name: First Name: Kleanthis (Akis) Department: Mobile: +357 99377088 Direct FAX: +357 25343044 Direct tel: +357 99377088 Personal E-Mail:
Organization: C.D.M. Trading Ltd. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Street/P.O.Box: Corner of Manoli Kalomiri & Marikas Kotopouli str, POB 50514 Building: Visionhire Building, Suite 201 City: Limassol State/Region: Limassol Postfix/ZIP: 3030 Country: Cyprus Telephone: +357 25331099 FAX: +357 25343044 E-Mail: [email protected] URL: www.ellinas-energy.com Represented by: Mr Kleanthis Ellinas Title: President Salutation: Mr Last Name: Ellinas Middle Name: First Name: Kleanthis (Akis) Department: Mobile: +357 99377088 Direct FAX: +357 25343044 Direct tel: +357 99377088 Personal E-Mail: PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
There is no public funding for the proposed project activity. PROJECT DESIGN DOCUMENT FORM (CDM PDD)
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Annex 3
BASELINE INFORMATION
Data from Cyprus Competent Authority (Environment Service, Ministry of Agriculture, Natural Resources and Environment) and verification reports under EU Emission Trading Scheme.
The following tables summarise the numerical results from the equations listed in the approved methodology ACM0002 (version 6). The information provided by the tables includes data and the underlying calculations.
Table Annex3-1: Installed capacity Year Installed capacity for Electricity Production of Cyprus (verified data) (MW) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 360 180 260 800 150 38 188 0 988 2006 360 180 260 800 150 38 188 0 988 2007 360 180 390 930 150 38 188 0 1.118
Table Annex3-2: Net electricity generated GENj,y Year Net electricity generated GENj,y of Cyprus (verified data) (MWh) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 1,828,667 497,348 1,735,560 4,061,575 37,768 3,141 40,909 0 4,102,484 2006 1,768,290 417,436 2,159,537 4,345,263 16,744 700 17,444 0 4,362,707 2007 1,811,943 378,464 2,284,252 4,474,659 39,919 6,895 46,814 0 4,521,473
Table Annex3-3: Fuel used Fi,j,y
Year Fuel used Fi,j,y for Electricity Production of Cyprus (verified data) (t) HFO Gas oil Other Total Dhekelia Moni Vasiliko Total Moni Vasiliko Total Power P. Power P. s Power P. s Power P. Power P. 2005 521,039 182,075 400,128 1,103,242 14,846 1,470 16,316 0 1,119,558 2006 500,443 149,895 486,936 1,137,274 6,577 285 6,862 0 1,144,136 2007 516,637 139,462 518,557 1,174,656 13,532 2,502 16,034 0 1,190,690
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Table Annex3-4: Estimated emission reductions ERy Net electricity Estimation of Estimated of supplied to the grid baseline emissions emission reductions EGy BEy ERy Year (MWh) (tCO2e) (tCO2e) 1 294,378 234,148 234,148 2 294,378 234,148 234,148 3 294,378 234,148 234,148 4 294,378 234,148 234,148 5 294,378 234,148 234,148 6 294,378 234,148 234,148 7 294,378 234,148 234,148 8 294,378 234,148 234,148 9 294,378 234,148 234,148 10 294,378 234,148 234,148 11 294,378 234,148 234,148 12 294,378 234,148 234,148 13 294,378 234,148 234,148 14 294,378 234,148 234,148 15 294,378 234,148 234,148 16 294,378 234,148 234,148 17 294,378 234,148 234,148 18 294,378 234,148 234,148 19 294,378 234,148 234,148 20 294,378 234,148 234,148 21 294,378 234,148 234,148 Total 6,181,938 4,917,108 4,917,108
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Annex 4
MONITORING INFORMATION
Monitoring information can be provided from Competent Authority as per approved Monitoring and Reporting Method prepared by the Electricity Authority of Cyprus (EAC) (required under the EU ETS), the only current energy producer in Cyprus.