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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:
45 MW Wind Energy project of Ecolutions Green Energy India Pvt. Ltd. in Maharashtra, India. Version 1 22 June 2009
A.2. Description of the project activity:
This project activity represents a 45 MW wind farm located in Beed and Ahmednagar Districts of Maharashtra state. Ecolutions Green Energy India Pvt. Ltd. is the project participant of wind farm which has 75 nos. RRB Energy make Wind Electric Generators (WEGs) of type PS-600kW. All the WEGs of this project will be commissioned simultaneously as per the contract conditions with the technology supplier i.e RRB Energy Ltd.The wind farm will harness wind energy potential in the Beed and Ahmednagar districts and intend to promote renewable energy in India by addressing the causative factors of low utilisation of renewable energy resources and encourage the individual institutions to take a stake in the development of wind energy in India.
Ecolutions Green Energy India Pvt. Ltd is registered as private company under the company’s act 1956 on 14th August 2008. Ecolutions Green Energy India Pvt. Ltd. is created to serve as the pre-eminent business-to-business resourced for companies to understand, mitigate and manage the transition to a greenhouse gas constrained economy
The Project shall be constructed, operated and maintained by M/s RRB Energy Ltd (Formerly Known as Vestas RRB India Ltd.) which is an ISO 9001:2000 and ISO 14001:2004 certified Company.The project will supply electricity to the NEWNE (North East West North-East) grid. The 45MW wind farm project has an estimated output of 86487 MWh/yr as expected by equipment supplier.
As it is a green field project, scenario existing prior to the start of the project activity (=baseline scenario) would be electricity generation from the existing grid and power plant system. Applying the simplified methodologies specified for large scale project, 45 MW wind energy project is expected to result in an annual emissions avoidance of 0.9075 tonne of CO2 per Mega Watt hour generated (tCO2e/MWh) as compared with the baseline scenario of NEWNE grid.(North-East-West-NorthEast)
This 45 MW wind farm project is expected to contribute to the sustainable development of India by improving the availability and reliability of electricity in the region from the utilization of clean wind resources.Project Proponent (PP) will share 2 % of the CERs revenues towards the sustainable development of the region.1 PP has submitted a detail action while to the National CDM Authrority, Government of India.
1 www.cdmindia.nic.in
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The proposed CDM project activity contributes in the following ways to the sustainable development as specified by the National CDM Authority, Government of India. (www.cdmindia.nic.in)
Social well being: The CDM project activity will contribute to the sustainable development as it will start the scenario of harnessing wind potential in Maharashtra thereby decreasing the gap between demand and supply. The project activity will directly contribute to the development of the area. It increases the average income of the local people and also the downstream activities associated with the Erection and commissioning (E&C) of wind power plants such as transportation, communication etc. The project activity will thus strengthen the rural economy.
Economical Well Being: The project activity will also generate direct and indirect employment opportunities for skilled/semi-skilled manpower, during the construction and operational phase of the project. Indirect employment has been generated for the equipment supplier, contractors technical consultants. The proposed project will bring in additional capital investment and indirectly supports creation of local infrastructure like roads, schools and other basic civic amenities leads to the economic development around the project area.
Environmental well-being: The project activity is displacing the grid electricity which is mostly coal based with renewable electricity the project activity is the generation of electricity through wind which is eco-friendly source of energy thus, the project activity results in reduction of GHG and other NOx, SOx emissions in the area. This will contributes to the environmental well-being.
Technological well-being: The CDM project activity should leads to increase in utilization of renewable energy resources for power generation and contributes to the energy security in the country.
The above benefits due to the proposed CDM project activity ensure that the project would contribute to the sustainable development of the region.
A.3. Project participants:
Kindly indicate if the Party Name of involved party Private and/or public entity(ies) involved wishes to be considered as ((host) indicates the host project participants project participant party) (as applicable) (Yes/No) Private entity: Ecolutions Green India (host) No Energy India Pvt. Ltd
See Annex 1 for contact information of all participants.
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
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A.4.1.1. Host Party(ies):
India
A.4.1.2. Region/State/Province etc.:
Maharashtra
A.4.1.3. City/Town/Community etc.:
Beed District (73 WEGs) & Ahmednagar district (02 WEGs)
A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page):
The project site is located at the border of Beed (spelt as ‘Bid’ in the map) and Ahmednagar Districts covering six villages in Patoda Taluka and one village (Sakat) in Jamkhed Taluka. The site is approximately 270 km east of Mumbai and about 65 kms from Beed city. A majority portion however lies in Beed district near Sautada village from N18° 46” 14.9’ to E 75° 26” 52.5’
Site Location:
45MW Wind
Location of 45 MW wind power project
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No. of WEGs situated in different villages of Beed and Ahmednagar districts.
Village/Site Taluka District No. of WEGs
Muggaon Patoda Beed 16
Burewadi Patoda Beed 15
Lambarwadi Patoda Beed 12
Kuslamb Patoda Beed 12
Sautada Patoda Beed 16
Dhangar Jawalka Patoda Beed 02
Sakat Jamkhed Ahmednagar 02
Total 75
Detail location of WEGs
Northing Easting Sr. No. Village Name Taluka District (DD MM SS) (DD MM SS) 1 Muggaon Patoda Beed 18 51 51.1 75 15 13.8 2 Muggaon Patoda Beed 18 49 49.5 75 17 09.7 3 Muggaon Patoda Beed 18 53 54.8 75 15 04.7 4 Muggaon Patoda Beed 18 49 53.9 75 16 53.5 5 Muggaon Patoda Beed 18 50 18.3 75 18 49.9 6 Muggaon Patoda Beed 18 47 47.1 75 20 29.9 7 Burewadi Patoda Beed 18 54 03.2 75 23 42.4 8 Muggaon Patoda Beed 18 52 13.3 75 14 16.2 9 Burewadi Patoda Beed 18 50 24.6 75 18 40.4 10 Muggaon Patoda Beed 18 51 35.7 75 15 13.8 11 Muggaon Patoda Beed 18 50 35.4 75 18 21.1 12 Lambarwadi Patoda Beed 18 47 42.4 75 20 06.3 13 Burewadi Patoda Beed 18 52 20.8 75 14 22.1 14 Kuslamb Patoda Beed 18 49 56.8 75 18 54.8 15 Muggaon Patoda Beed 18 51 06.9 75 15 19.7 16 Lambarwadi Patoda Beed 18 48 36.8 75 19 04.3 17 Muggaon Patoda Beed 18 48 49.1 75 19 31.0 18 Lambarwadi Patoda Beed 18 49 00.5 75 19 29.6 19 Burewadi Patoda Beed 18 50 59.8 75 18 00.7 20 Lambarwadi Patoda Beed 18 46 38.0 75 22 11.9 21 Muggaon Patoda Beed 18 54 20.5 75 24 25.9 22 Muggaon Patoda Beed 18 46 45.6 75 22 11.9 23 Burewadi Patoda Beed 18 51 45.4 75 14 12.9 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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24 Burewadi Patoda Beed 18 46 18.8 75 22 26.3 25 Burewadi Patoda Beed 18 54 03.1 75 24 30.3 26 Lambarwadi Patoda Beed 18 47 52.8 75 20 29.9 27 Sautada Patoda Beed 18 54 08.6 75 24 14.3 28 Kuslamb Patoda Beed 18 50 43.1 75 18 21.1 29 Sautada Patoda Beed 18 53 25.3 75 25 42.0 30 Sautada Patoda Beed 18 49 15.1 75 19 04.3 31 Kuslamb Patoda Beed 18 48 15.0 75 19 25.9 32 Burewadi Patoda Beed 18 46 29.6 75 22 34.3 33 Kuslamb Patoda Beed 18 48 24.6 75 19 27.1 34 Lambarwadi Patoda Beed 18 50 04.1 75 16 48.4 35 Kuslamb Patoda Beed 18 50 07.5 75 18 54.8 36 Burewadi Patoda Beed 18 46 22.6 75 23 09.7 37 Burewadi Patoda Beed 18 53 54.8 75 24 58.8 38 Sautada Patoda Beed 18 45 48.9 75 26 52.5 39 Burewadi Patoda Beed 18 47 58.4 75 20 30.9 40 Lambarwadi Patoda Beed 18 52 51.1 75 20 59.7 41 Sautada Patoda Beed 18 50 50.7 75 18 21.2 42 Kuslamb Patoda Beed 18 50 25.3 75 25 43.4 43 Sakat Jamkhed Ahemadnagar 18 48 06.1 75 20 30.9 44 Burewadi Patoda Beed 18 53 19.9 75 26 05.9 45 Kuslamb Patoda Beed 18 51 55.0 75 14 12.2 46 Lambarwadi Patoda Beed 18 46 14.9 75 23 09.6 47 Dhangar Jawalka Patoda Beed 18 50 39.9 75 16 00.3 48 Burewadi Patoda Beed 18 48 40.7 75 19 31.9 49 Kuslamb Patoda Beed 18 47 35.3 75 21 57.6 50 Sautada Patoda Beed 18 48 33.3 75 19 29.2 51 Muggaon Patoda Beed 18 50 24.6 75 16 00.3 52 Burewadi Patoda Beed 18 49 34.3 75 16 28.5 53 Sautada Patoda Beed 18 47 16.2 75 22 12.0 54 Burewadi Patoda Beed 18 45 44.7 75 23 06.3 55 Muggaon Patoda Beed 18 50 13.9 75 19 00.3 56 Muggaon Patoda Beed 18 50 56.2 75 15 19.6 57 Sautada Patoda Beed 18 45 24.9 75 25 19.5 58 Sautada Patoda Beed 18 50 00.9 75 19 04.4 59 Lambarwadi Patoda Beed 18 51 44.7 75 24 43.7 60 Sakat Jamkhed Ahmednagar 18 46 37.9 75 23 09.7 61 Lambarwadi Patoda Beed 18 53 45.2 75 24 15.7 62 Kuslamb Patoda Beed 18 45 52.0 75 23 01.9 63 Sautada Patoda Beed 18 49 45.6 75 19 04.4 64 Kuslamb Patoda Beed 18 47 31.5 75 22 12.0 65 Sautada Patoda Beed 18 49 10.4 75 23 10.4 66 Lambarwadi Patoda Beed 18 53 21.7 75 20 14.8 67 Sautada Patoda Beed 18 48 44.5 75 19 04.3 68 Sautada Patoda Beed 18 47 23.9 75 22 12.0 69 Kuslamb Patoda Beed 18 53 44.7 75 25 00.2 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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70 Sautada Patoda Beed 18 46 49.4 75 22 26.4 71 Kuslamb Patoda Beed 18 49 53.3 75 19 04.4 72 Sautada Patoda Beed 18 46 07.3 75 23 09.6 73 Lambarwadi Patoda Beed 18 50 12.1 75 25 41.5 74 Sautada Patoda Beed 18 52 03.9 75 14 12.7 75 Dhangar Jawalka Patoda Beed 18 48 04.0 75 19 18.5
A.4.2. Category(ies) of project activity:
The category of the project activity falls under the sectoral scope 01 Energy Industries (Renewable / non renewable) and applicable methodology is ACM 0002. - “Consolidated baseline methodology for grid- connected electricity generation from renewable sources.” Version 10
A.4.3. Technology to be employed by the project activity:
The principle of wind energy is the conversion of kinetic energy in the wind into mechanical power at wind rotor shaft. The rotor shaft is coupled to the generator where it would be converted to electrical energy. The 45 MW wind farm project consists of only one types of RRB Energy make WEGs i.e. PS- 600. This is a indigenously developed technology with state –of- the art, environmentally safe and sound features. The detailed technical specifications of the turbines are presented in the Table. The potential of wind energy in the state of Maharashtra could be seen in the below. The diagram indicating the project boundries and technology details is attached in section
Potential of wind energy in Maharashtra 2
The expected generation by the RRB Energy for the wind farm project is 86487 MWh and as indicated, the equipment supplier provides operation and maintenance service. The net estimated export value is 84757 at the point of commercial metering.
2 http://www.cwet.tn.nic.in/Docu/Final%20wpdmap1.pdf PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Technical details of the WEGs3
Details Pawan Shakthi – 600kW Overall Data Cut in wind speed 4 m/s Cut out wind speed 25 m/s Survival wind speed 70 m/s Tip speed 64 m/s Rotor speed 26.2 rpm Hub height 50m / 65m Nacelle tilt angle 5o Regulation Pitch Gear Box Type Planetary / Helical Gear Ratio 1:58.2 No of Steps 3 Generator Rated power output 600 kW Type Single Wound Asynchronous Voltage 690 V Revolutions 1527 rpm Frequency 50 Hz Tower Type Lattice Height (Optional) 48.1m / 63.1m Material Steel Sections 6/9 Nacelle Cover Fibreglass Reinforced Polyester Rotor No of blades 3 Diameter 47m Swept area 1735 m2 Power Regulation Pitch Regulated Brake System Aerodynamics Full feathering of blade Mechanical Disc Brake Yaw System Slewing system with gear motors yawing Controls Microprocessor based Life time of each WEG 20 Years
3 As per the technical offer of the technology provider PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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A.4.4. Estimated amount of emission reductions over the chosen crediting period:
Annual Estimation of Emission Years Reductions in tonnes of CO2e
2010 76917
2011 76917 2012 76917 2013 76917 2014 76917 2015 76917 2016 76917 2017 76917 2018 76917 2019 76917 Total estimated emission reductions 769170 (tonnes of CO2e)
Total number of crediting years 10
Annual average over the crediting period of estimated reductions (tonnes 76917 of CO2e)
A.4.5. Public funding of the project activity:
No Annex I Party public funding is directly involved in the proposed project. Please refer Annex II.
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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: ACM 0002. -“Consolidated baseline methodology for grid-connected electricity generation from renewable sources.” Version 10 Sectoral Scope 01: Energy Industries (renewable/non-renewable sources). Referred: The methodology ACM 0002 refers to the latest approved versions of the following tools:
• Tool for the demonstration and assessment of additionality, Version 05.2 • Tool to calculate emission factor for an electricity system, version 01.1
B.2. Justification of the choice of the methodology and why it is applicable to the project activity:
This methodology is applicable to grid-connected renewable power generation project activities that (a) install a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity (green field plant); (b) involve a capacity addition; (c) involve a retrofit of (an) existing plant(s); or (d) involve a replacement of (an) existing plant(s).
Project activities is installation of a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity (Greenfield project) hence as per the options (a) metholodgy is applicable.
Applicability conditions of ACM 0002 Version 10 are further described below
Criterion Applicability Conditions Justification
Criterion 1 The methodology is applicable under the Project activity involves following conditions: generation of electricity from wind The project activity is the installation Power energy. plant/unit of one of the following types: hydro power plant/unit (either with a run-of-river The project activity supplies reservoir or an accumulation reservoir), wind electricity to regional grid . power plant/unit, geothermal power plant/unit, solar power plant/unit, wave power plant/unit or tidal power Plant/unit.
In the case of capacity additions, retrofits or replacements: the existing plant started commercial operation prior to the start of a minimum historical reference period of five PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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years, used for the calculation of baseline emissions and defined in the baseline emission section, and no capacity expansion or retrofit of the plant has been undertaken between the start of this minimum historical reference period and the implementation of the project activity;
Criterion 2 In case of hydro power plants one of the Project activity involves generation following conditions must apply of electricity from wind. Hence this is not applicable The project activity is implemented in an existing reservoir, with no change in the volume of reservoir.
The project activity is implemented in an existing reservoir, where the volume of reservoir is increased and the power density of the project activity, as per definitions given in the Project Emissions section, is greater than 4 W/m2.
The project activity results in new reservoirs and the power density of the power plant, as per definitions given in the Project Emissions section, is greater than 4 W/m2.
Criterion 3 This methodology is not applicable to: Not Applicable as the activity is totally new wind project. In the same Project activities that involve switching from context, foot note 1 is not applicable. fossil fuels to renewable energy at the site of the project activity, since in this case the baseline may be the continued use of fossil fuels at the site: Biomass fired power plants; Hydro power plants4 that result in new reservoirs or in the increase in existing reservoirs where the power density of the power plant is less than 4 W/m2.
In the case of retrofits, replacements, or capacity additions, this methodology is only applicable if the most plausible baseline scenario, as a result of
4 Project participants wishing to undertake a hydroelectric project activity that result in a new reservoir or an increase in the existing reservoir, in particular where reservoirs have no significant vegetative biomass in the catchments area, may request a revision to the approved consolidated methodology PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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the identification of baseline scenario, is “the continuation of the current situation, i.e. to use the power generation equipment that was already in use prior to the implementation of the project activity and undertaking business as usual maintenance”
Criterion 4 In addition, the applicability conditions Tools used: included in the tools referred to above apply5 1. Tool for the demonstration and assessment of additionality” : Applicability conditions are described further in section B-5 2. Tool to calculate the emission factor for an electricity system.:Applicabiliby conditions are described further in section B-6
Foot note 2 is not applicable as combined tools to identify the baseline scenario and demonstrate additionality is not referred.
So in light of the above, the applicability of this type & category of methodology to this project is justified.
B.3. Description of the sources and gases included in the project boundary:
The boundary for the project encompasses the physical, geographical sites of the wind turbines installations wherein are contained all the processes associated with the production of energy until electricity evacuated to the regional grid. A pictorial description could be seen in the Figure B1 It is understood that wind energy do not use raw material/fuel and hence there is no question of emissions from associated transportation. However the inclusions and exclusions within each of these project boundaries are as follows:
• Inclusions
¾ The GHG of focus is CO2. Firstly there are no other GHGs, if at all there is any, it is assumed that their contribution in the present context is negligible and they are eliminated from the study.
5 The condition in the “Combined tool to identify the baseline scenario and demonstrate additionality” that all potential alternative scenarios to the proposed project activity must be available options to project participants does not apply to this methodology, as this methodology only refers to some steps of this tool.
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¾ Account CO2 emissions from electricity generation in fossil fuel fired power that is displaced due to the project activity. ¾ The spatial extent of the project boundary includes the projects site and all power plants connected physically to the electricity system that the project is connected to, i.e. western regional grid.
• Exclusions ¾ Process of manufacturing the wind energy system components. ¾ Disposal procedure for the construction materials and other components that are used during the construction and operation of the projects at the end of its life cycle.
Schematic of the Project Boundary
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Sources of Emission
Source Gases Included Justification/Explanation Baseline CO2 emissions CO2 Yes Main Emission Source from electricity generation in fossil fuel fired CH4 No Minor Emission Source- power plants Excluded for that is displaced simplification. This is due to the conservative project activity. N2O No Minor Emission Source- Excluded for simplification. This is conservative
Project On site fossil fuel CO2 No This source is not required Activity consumption due to be estimated under to the ACM0002 for implementation wind energy projects. of the project CH4 No Expected not to be emitted.
N2O No Expected not to be emitted.
B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:
Baseline scenario : Like the economy growth in India, the power sector as well underwent dramatic developments. The installed capacity has grown from 1,713 MW in 1950 to 144130.7 MW by as on 31- 03-2008. . The total installed capacity of thermal power is 91906.84 MW , 3508.76 MW of hydro and 4120 MW of Nuclear, about 63% of the installed capacity is thermal power and is a major source of carbon dioxide emissions in the grid6. Sector- wise installed capacity (MW) as on 31.03.2008.
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It is evident from Table that the installed capacity is predominantly coal based and therefore, is a major source of carbon dioxide emissions in India. Hence, there exists scope for reducing the CO2 emissions in the country by way of fuel substitution, increased use of renewable energy sources, and also by improving the thermal efficiency of power generation.
Project Activity:
The emission reductions occur as the project activity generates electricity by the renewable energy, wind energy which displaces electricity generation from the fossil fuel based power plants. In the absence of the project activity the equivalent amount of electricity i.e 86487 MWh would have been generated by the operation of grid connected power plants that are predominantly GHG intensive Thermal power plants. The Project activity will thus reduce the anthropogenic emissions of greenhouse gases (GHGs) in to the atmosphere associated with the equivalent amount of electricity generation.
Hence the emissions in the baseline scenario would be the emissions from the equivalent amount of electricity generated by the prevailing generation mix of the grid.
Grid Selection
Historically, the Indian power system was divided into five independent regional grids, namely Northern, Eastern, Western, Southern, and North-Eastern. Each grid covered several states. Now days all regional grids except the Southern Grid have been integrated and are operating in synchronous mode, i.e. at same frequency. Consequently, the Northern, Eastern, Western and North-Eastern grids will be treated as a single grid and is being named as NEWNE grid in CEA report. While southern grid is treated as separately from NEWNE grid. As the large scale project activity is located at Maharashtra state, NEWNE will be an applicable grid.
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Grid Distribution
Baseline Emission factor:
Base line Emission factor details are further elaborated 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):
A CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered project activity. According to the selected methodology ACM0002, the project developer is required to establish that the GHG emission reductions due to the project activity are additional to those that would have occurred in the absence of the current project activity as per the “tool for the demonstration and assessment of additionality” (Version 05.2, EB 39)7.
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Step 1 : Identification of alternatives to the project activity consistent with current laws and regulations
Realistic and credible alternatives to the project activity(s) that can be (part of) the baseline scenario can be defined through the following sub-steps:
Substep 1a The following alternatives were available to the Define project proponents: Project Activity has crossed the alternatives to step 1 (Step 1-a and 1-b) of the project Alternative 1: Proposed project activity not additionality demonstration and activity undertaken as CDM project activity. either move to step 2 or step3 or both. In the same alternative, project proponent would have gone ahead with the implementation of project activity, generating renewable electricity and exporting the same to the state electricity grid under a power purchase agreement thereby displacing equivalent units of power generated by fossil fuel based plants in the grid but without considering CDM benefits. However there exist barriers to the implementation of the proposed project activity without CDM as explained in step 2 and step 3 below.
Alternative 2: Continuation of current situation i.e. no project activity and equivalent amount of energy would have been produced by the project grid electricity system through its currently running power plants and by new capacity addition to the grid (thermal) i.e. Continuation of current situation.
Thus, it is clear that none of the Sub-step 1 1. Electricity generation from wind farm is not legal and regulatory requirements nor a mandatory alternatives that the project (b): proponent had are restricted by choice. Consistency the Environment Regulations, With nor do they oppose any legal mandatory 2. There are, State and Sectoral policies, primarily laws and framed to encourage wind based power projects to requirement enforced. Thus the project activity is not the only regulations attract more private investment as there are many baseline scenario permitted by anticipated risks under the project and requires the regulations. good amount of equity.
3. The Indian Electricity Act of 2003 does not restrict Or empower any authority to restrict the fuel choice for power generation. In addition, it may be noted that the draft National Electricity PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Policy (revised in August 2004) asserts ‘coal would necessarily continue to remain the major fuel’.
4. Similarly, at the time of investment there was no legal restriction according to Indian Electricity Act of 1948 on fuel choice for power generation.
5. The applicable Environmental Regulations do not restrict the use of wind energy for power generation.
6. There is no legal requirement on the choice of a particular technology for power generation.
Step 2 : Investment Analysis
To determine whether the proposed project activity is the economically or financially less attractive than other alternatives without the revenue from the sale of certified emission reductions (CERs). To conduct the investment analysis, following sub-step were used
Step 2a:
Appropriate Analysis Method
As the electricity generated from project activity will be sold to one of the utility companies, it will generate financial benefits in terms of revenues from the sale of electricity units. Thus simple cost analysis (option I) cannot be applied to the proposed CDM project activity.
Amongst the other two options – investment comparison analysis (option II) and benchmark analysis (option III), the benchmark analysis has been adopted wherein the Internal Rate of Return (IRR) of the project activity serves as a benchmark to assess the financial attractiveness of the project activity. Option III assesses if the project’s returns are sufficient for investors to make the initial investment and further bear the associated costs of successfully operating the project activity over the lifetime of the project
Sub-step 2b Option III. Benchmark Analysis
An investment analysis of the project activity was conducted with the post tax project internal rate of return (Project IRR) as the financial indicator. ‘Internal Rate of Return’ is one of the known financial indicators used by banks, financial institutions and project developers for making investment decisions.
As per the point not 11 -specific guidance of Tool for demonstration and assessment of additionality, local commercial lending or weighted average capital (WACC) are appropriate benchmarks for the project IRR. Other then these, Benchmarks supplied by relevant national authorities are also appropriate.
PP has not taken WACC as benchmark as the Company is a newly established and as per the guidance point no 13 past three year’s financial behavior is required to choose the WACC.
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PP has chosen the Prime Lending Rate (PLR) of Reserve Bank of India as benchmark as it as authentic source from Government of India.
Prime Lending Rate of RBI was 13.25-14.00 % during the August 2008(A month in which the Investment decision was taken) which is conservatively taken as 13.25 %8.
Sub-step 2c: Calculation and comparison of financial indicators (Only applicable to Option II & III
The base case IRR of the proposed Project Activity has been calculated considering following input assumptions:
POWER GENERATION AND NET EXPORT TO GRID CAPACITY KW KW 45000 Operating capacity KW KW 45000 Operating Period Days 365 Operating Hours Hours 8760 Plant Load Factor9 % 21.94% Gross Power generated M Wh 86487 Auxiliary power consumption in % of gross power generation % 2% Net power export to grid M Wh 84757
8 http://www.rbi.org.in/scripts/WSSViewDetail.aspx?TYPE=Basic&PARAM1=9/5/2008 9 PLF determination : As per the most conservative figure (21.94 %) out of below • As per the MERC Tariff order : 20 % http://www.mercindia.org.in/pdf/Detail_Wind_Energy_Order.pdf • As per the actual generation /historical data of Maharashtra : 16.96% http://www.mahaurja.com/Download/WindGenerationInfo.xls • As mentioned by the Manufacture’s offer : 21.94%
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PROJECT COST ESTIMATION (Amount in Million INR) Total cost of the Project INR in Million 2494
MEANS OF FINANCING Debt % %0% 70% 70 Equity %0% 30 Years Period (Including Moratorium) 12 Moratorium Year 1 Interest Rate(Long term)-During IDC % 11 Interest Rate(Long term)-After IDC % 11 REVENUE BASED ASSUMPTION Sell of electricity Rs. / kWh 3.50 Escalations in Rate INR 0.15 Tax Exemption for income from power sale Years 10 Subsidy from Govt. And other Official Assistance 0.00 0.00 FIXED OPERATING COSTS INR O & M Charges Million/year 44.63 O&M Escalation % 5 Management Expenses Million/Year 1 INR Insurance Cost Million/year 3
OTHER ASSUMPTIONS Depreciation Rate (Company's Act) E&M % 4.50 Depreciation Income Tax Act % 80.00 Minimum Alternate Tax % 11.33
RESULTS Project IRR Without CDM % 9.84
Detailed financial analysis shows that Project IRR of the project activity 9.84 % without considering the CERs revenue which is still below the benchmark 13.25 % (Prime Lending Rate of RBI).
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In summary, Investment analysis clearly confirms that post tax IRR of the project activity is lower than the bench mark and hence makes the project financial unattractive. Consideration of the CDM revenue will make some increment in the IRR which helps to reduce the hurdles of the project.
From these figures, it is clear that the CDM status of the investment is fundamental to the decision to invest, with CER revenue taking the IRR above the hurdle. The sensitivity analysis carried out on the financial performance as per sub-step 2-D of the project again highlights the relative importance of CER revenue.
All the financial data and assumptions used to arrive at the IRR of the project activity with and without CDM revenue will be made available to the DOE during the process of validation.
Sub-step 2d: Sensitivity Analysis
Sensitivity Analysis of the project activity has been carried out to analyze further the robustness of financial attractiveness of the project. In the case of wind energy projects IRR very much depends on the PLF as mentioned in the above section. Though the Project Proponent has carried out the detail financial analysis of the project, 10 % variation in PLF is assumed to analyse further the financial returns of the project.
Table shows IRR considering the sensitivity analysis based on the PLF
SENSITIVITY ANALYSIS % variation in PLF IRR without CDM % +10% 11.16 +05% 10.51 Base 9.84 -5% 9.16 -10% 8.46
As per the sensitivity analysis, if the project activity could achieve the PLF 10 % more than the base case, then IRR of the project increases from 9.84 % to 11.16 %, Hence in the best case scenario also, project IRR without CER revenue is less than benchmark and only with the CERs revenue there will increment in the IRR. Probability to get the PLF increase up to 10 % is very less due to the reasons below: • MERC tariff order study mentions 20 % PLF 10 • Actual generation as per the MEDA data is showing the PLF of 16. 96 %.11
This clearly indicates the importance of CERs value for the financial attractiveness of the project.
Another Parameter for the sensitivity analysis is rate of Electricity for the Sell of Electricity to the utility services. As per the Agreement with Utility Company, any additional revenue earned by the buyer
10 http://www.mercindia.org.in/pdf/Detail_Wind_Energy_Order.pdf 11 http://www.mahaurja.com/Download/WindGenerationInfo.xls PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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accrued over the base revenue will be shared between the company and the buyer. Increment/Variation of this 10 % is also taken in to account while doing sensitivity analysis.
Table below shows the sensitivity analysis carried out based on rate of electricity.
SENSITIVITY ANALYSIS % variation in Electricity rate IRR without CDM % +10% 10.37 +05% 10.12 Base 9.84
Above sensitivity analysis also shows that with the maximum increment of 10% in the revenue from the sell of the electricity to the utility company, project IRR is 10.37 % which is still below the benchmark.
From these figures, it is clear that the CDM status of the investment is fundamental to the decision to invest, with CER revenue taking the IRR above the hurdle. The sensitivity analysis carried out on the financial performance of the project again highlights the relative importance of CER revenue
All the financial data and assumptions used to arrive at the IRR of the project activity with and without CDM revenue will be made available to the DOE during the process of validation. Hence the financial analysis clearly demonstrates that the project activity is financially not a viable option. Although wind energy is considered as a clean and renewable energy option, significant barrier in its implementation is low financial viability.
Hence the project activity is not business as usual scenario and hence it solicits the CDM registration.
Step 3: Barrier Analysis
Herein the project proponent is required to determine whether the proposed project activity faces barriers that:
(a) Prevent the implementation of this type of proposed project activity; and (b) Do not prevent the implementation of at least one of the alternatives through the following
Sub-steps:
Sub-step 3a: Identify barriers that would prevent the implementation of the type of the proposed project activity
Establish that there are realistic and credible barriers that would prevent the implementation of the proposed project activity from being carried out if the project activity was not registered as a CDM activity. Such realistic and credible barriers may include, among others:
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(a) Investment Risk Barrier
There factors that would comes under investment barrier such as,
¾ Higher capital cost
Wind energy capital costs are higher than any other fossil fuel based power generation12. Among the renewable energy systems, wind energy is involved with the high capital cost. This 45 MW wind farm has an investment of INR 2495 million (equivalent to USD 49.913 million).
The wind farm is expected to export 86,487 MWh for the duration of one year. Hence the capacity utilization factor is 21.94% and this result in lower rate of return on investment when compared to the conventional fossil fuel based generation. Wind power generation has a high degree of uncertainty due to unpredictable wind pattern. The Plant Load factor (PLF) is one of the important decisive factors contributing to the project feasibility. The average expected PLF for projects under this PDD is only 21.94% which is lower than that required for project viability. When this number is compared with the baseline technology option i.e. coal based power generation (which would at least have a PLF of 78.6%)14, it is much lower. The low PLF in this project highlights the investment risk associated with wind power generation.
(b) Barriers due to Prevailing practices
In the year 2007-08, the total electricity generation in Maharashtra alone is the total electricity generation in Maharashtra alone is 73,12915 million kWh and the contribution from wind energy is only 1714.316 million kWh, which is mere 2.34 This clearly shows that the share of electricity generation from wind is very low at least in the state of Maharashtra and the current practice being followed is preferential generation of electricity from fossil fuel based power plants.
This situation would have an indirect impact on the revenue generation to the project. The insurance companies agree for liquidated damage cover; however the insurance premium is prohibitively high.
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):
As stated above in sub-step 3 (a), there are several barriers which deter the implementation of wind power projects, including the proposed project activity. Identified barriers would not prevent Alternative 2 mentioned in Sub-step 1 a.
12 http://cdm.unfccc.int/UserManagement/FileStorage/ZBEFC58QMKTB9WHAKCPOOQGCZAXZT7 13 At the exchange rate of US$ 1 = INR 50.00 14 http://www.dolatcapital.com/downloads/india_electricity_2008_visit_note_190908.pdf 15 Sourced from http://www.maharashtra.gov.in/english/ecoSurvey/esmint07-08/glance.pdf 16 Sourced from http://www.mahaurja.com/PDF/InformationBookletforWind.pdf PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Step 4. Common practice analysis
Sub-step 4a. Analyze other activities similar to the proposed project activity:
The total installed electricity-generation capacity in India19 at the end of September 2008 is 145,554.97 MW. This includes 64.6 % thermal (92,892.64), 24.7% hydro (36,347.76 MW), 3% nuclear (4,120 MW) and 6.58 % wind based generation (9587 MW20). Coal based thermal power generation has been the mainstay of electricity generation (53%). To bridge India’s peak power shortage of 13-15% and average shortage of 8-10%, in the business as usual scenario, nearly 100,000 MW of fresh capacity addition would be required by 2012 of which more than 75% is likely to be coal based21.
The total installed capacity of Maharashtra at the end of financial year 2007-08 was 15,453 MW the capacity contribution from Hydro is 16% (2897 MW), Thermal (includes coal, gas and diesel) is 71% (12732 MW) and Nuclear is 1% (160 MW) and renewable energy including wind energy is 9% (1653 MW). In the year 2006-07, the total electricity generation in Maharashtra alone is 73,12922 million kWh and the contribution from wind energy is only 1714.323 million kWh, which is mere 2.34
Parameter Overall Contribution from wind % contribution of wind Installed Capacity MW 15453 1756 11.36 Electricity Generation M kWh 73129 1714.3 2.34
This clearly shows that the share of electricity generation from wind is very low at least in the state of Maharashtra and the current practice being followed is preferential generation of electricity from fossil fuel based power plants.
As the policies are different for the different states so the region under consideration is the state of Maharashtra, the location of the project activity, to ensure comparable environment with respect to regulatory framework. The statistics pertaining to wind power in Maharashtra is as follows:
20 Available at http://www.mnes.nic.in/prog-wind.htm 21 Press Information Bureau, Government of India; Sourced from http://pib.myiris.com/features/article.php3?fl=011226171733 22 Sourced from http://www.maharashtra.gov.in/english/ecoSurvey/esmint06-07/glance.pdf 23 Sourced from http://www.mahaurja.com/PDF/InformationBookletforWind.pdf PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Maharashtra Wind Energy Scenario Gross Potential : 3620 MW24 Total Capacity as on 31/03/2008 : 1756 MW25 Total Capacity as on 31/03/2008 : 1756 MW26 Total Generation as on 31/03/2008 : 2112 Million kWh
Table : Wind energy statistics : Investor wise
Capacity in MW No of Projects
up to 10 MW 711
11 MW to 25 MW 20
25 MW to 40 MW 02
41 MW to 50 MW 01
50 to 100 MW 02
More than 100 00
Table: CDM status of wind energy project in Maharashtra: More than 25 MW27
Sr. No Name of the Project Proponent Capacity 1 The Tata Power Co. Ltd.28 28.75 2 BP Energy India Private Limited29 40 3 Reliance Innoventures Pvt Ltd30 45 31
Bajaj Auto Ltd . 4 65 5 Essel Mining & Ind. Ltd.32 75
24 www.inwea.org/aboutwindenergy.htm 25 http://www.mahaurja.com/PDF/InformationBookletforWind.pdf 26 http://www.mahaurja.com/PDF/InformationBookletforWind.pdf 27 http://cdm.unfccc.int/Projects/index.html 28https://cdm.unfccc.int/Projects/Validation/DB/HT56HSU35JRCPA72BI950VBY8REB0U/view.html 29http://cdm.unfccc.int/Projects/DB/SGS-UKL1201725472.8/view 30http://cdm.unfccc.int/Projects/DB/RWTUV1218537127.82/view 31http://cdm.unfccc.int/Projects/DB/BVQI1135775559.33/view , http://cdm.unfccc.int/Projects/DB/BVQI1135690844.37/view 32 http://cdm.unfccc.int/Projects/DB/DNV-CUK1178530835.69/view PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Site wise implementation in Maharashtra
Above figure shows the site wise implementation in Maharashtra. Proposed location of the project activity is Beed (wherein 97 % of the WEGs will be implementing), Maharashtra wherein only 1 % of wind energy implementation has been done.
Above data show that nos. of large scale wind energy projects are very few in Maharashtra and there are very few investors who have invested in more than 40 MW project in India. All such projects seek CDM revenues as mentioned in the above table.
Above discussion shows that proposed project activity is not a common practice and hence it is additional.
Sub-step 4b. Discuss any similar options that are occurring:
If similar activities are widely observed and commonly carried out, it calls into question the claim that the proposed project activity is financially unattractive (as contended in Step 2) or faces barriers (as contended in Step 3). Therefore, if similar activities are identified above, then it is necessary to demonstrate why the existence of these activities does not contradict the claim that the proposed project activity is financially unattractive or subject to barriers. This can be done by comparing the proposed project activity to the other similar activities, and pointing out and explaining essential distinctions between them that explain why the similar activities enjoyed certain benefits that rendered it financially attractive (e.g., subsidies or other financial flows) or did not face the barriers to which the proposed project activity is subject.
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Essential distinctions may include a serious change in circumstances under which the proposed CDM project activity will be implemented when compared to circumstances under which similar projects where carried out. For example, new barriers may have arisen, or promotional policies may have ended, leading to a situation in which the proposed CDM project activity would not be implemented without the incentive provided by the CDM. The change must be fundamental and verifiable.
As discussed above the project activity is not a common practice being followed in the region. Due to the unattractive returns associated with the project activity, it is being carried with CDM consideration. Registration of the project activity as a CDM project would lead to additional revenues to overcome the barriers thereby improving the investment returns for the project activity and alleviating investment and regulatory policy risks.
Successful registration also provides an incentive for other investors to make investment in wind power projects and reduce the intensive generation of GHG in the western regional grid. Thus CDM revenue acts as a risk mitigation tool in overcoming barriers and imparting viability to the project.
Demonstration of Prior Consideration of CDM:
With reference to EB 41, Annex 46, project activities with a starting date on or after 02 August 2008, the project participant must inform a Host Party DNA and/or the UNFCCC secretariat in writing of the commencement of the project activity and of their intention to seek CDM status. Such notification must be made within six months of the project activity start date and shall contain the precise geographical location and a brief description of the proposed project activity. Such notification is not necessary if a PDD has been published for global stakeholder consultation or a new methodology proposed to the Executive Board before the project activity start date.
For this large scale project activity, PP has submitted the project for the Host country approval and appointed the DoE prior to the start date of the project activity. This shows the serious consideration of CDM.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
As per the latest version of the ACM 0002, Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power plants that are displaced due to the project activity. The methodology assumes that all project electricity generation above baseline levels would have been generated by existing grid-connected power plants and the addition of new grid-connected power plants. The baseline emissions are to be calculated as follows:
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BEy = EGPJ,y * EFgrid,CM,y
Where: BEy = Baseline emissions in year y (tCO2/yr)
EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as result of the implementation of the CDM project activity in year y (MWh/yr) EFgrid,CM,y = Combined margin CO2 emission factor for grid connected power generation in year y calculated using the latest version of the “Tool to calculate the emission factor for an electricity system” (tCO2/MWh)
Calculation of EGPJ,y
The calculation of EGPJ,y is different for (a) greenfield plants, (b) retrofits and replacements, and (capacity additions.)
Project activity is green field project
For Greenfield renewable energy power plants If the project activity is the installation of a new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to the implementation of the project activity, then:
EGPJ,y = EG facility,y Where: EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr) EGfacility,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr)
According to the tool the baseline emission coefficient will be determined using the following steps:
Calculation of Baseline Emission Factor
In the absence of the project activity, electricity would be generated from the fossil fuel based power plants. The baseline for all those systems wherein electricity is generated from the renewable energy systems is net electrify generated multiplied by an emission factor (measured in tCO2/MWh) as per ACM 0002 , Version 10. According to the methodology, one could go for the use of Combined Margin (CM) approach or Weighted Average Emissions (WAE).
(a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the “Tool to calculate the emission factor for an electricity system”. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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There are four methods suggested in calculating the Operating Margin; however there are restrictions to use the Simple OM and the Average OM. Or (b) The weighted average emissions (in kg CO2e/kWh) of the current generation mix. The data of the year in which project generation occurs must be used.
The project opted to choose for the option (a) i.e. CM approach and the choice of ex-ante approach has been adopted for the calculation of the Grid Emission Factor, which will remain the same during the entire crediting period. The data are considered from Appendix C, Table B of “CO2 Baseline Database for the Indian Power Sector, User Guide, and Version 4.0”.
) STEP - 1. Calculate the Operating Margin Emission Factor(s) (EFOM,y
In the western region, power generation is dominated by fossil fuel sources and the power generation by low cost/must run resources constitute less than 50% of total grid generation in the average of the five most recent years. Hence Simple OM method is used for EFOM,y calculation.
The Simple OM emission factor (EFOM, y) is calculated as the generation-weighted average emissions per electricity unit (tCO2 / MWh) of all generating sources serving the system, excluding zero- or low- operating cost power plants, using the following equation:
Where,
F i, j ,y- Amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in Year (s) y, and j refers to the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants, and including imports to the grid.
COEF i, y is 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
COEF i, y is obtained as COEFi = NCVi· EFCO2,i · OXIDi
where:
NCVi is the net calorific value (energy content) per mass or volume unit of a fuel i,
OXIDi is the oxidation factor of the fuel, EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.
GEN j,y - is the electricity (MWh) delivered to the grid by source j.
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EFOM,y is calculated, as indicated in the annexure 3, using full generation weighted average, ex-ante, for the most recent 3 years as the data is available from the official sources5 and is publicly available.
EFOM,y 1= 1.0
STEP - 2. Calculate the Build Margin Emission Factor (EFBM,y)
EFBM,y is computed as the generation weighted average emission factor of as the generation-weighted average emission factor (tCO2/MWh) of a sample of power plants m using the following equation.
Where the sample group m consists of either the five power plants that have been built most recently, or the power plant capacity additions in the electricity system comprising of 20% of the system generation (in MWh terms) and those have been built most recently.
In accordance with ACM 0002, EFBM,y is calculated as the average emission intensity of the 20% of the most recent capacity additions in the gird based on the net generation. Computed EFBM,y is0.60 tCO2 / MWh..
STEP - 3. Calculate the Baseline Emission Factor (EF)
The combined margin emission factor is calculated as follows (data has been sourced from CEA as mentioned above):
Simple OM BM Year (tCO2/MWh) (tCO2/MWh) 2005-06 1.02 2006-07 1.01 2007-08 1.00 0.60 Average operating margin during 1.00 the last 3 years
The baseline emission factor EFy is calculated as combination of the Operating Margin emission factor (EFOM) and the Build Margin emission factor (EFBM):
Where:
EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM = Weighting of operating margin emissions factor (%)
wBM = Weighting of build margin emissions factor (%)
The following default values should be used for wOM and wBM:
Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25 (owing to their intermittent and non-dispatchable nature) for the first crediting period and for subsequent crediting periods.
EFgrid,CM,y = 0.75 * EFgrid,OM,y + 0.25 X EFgrid,BM,y = 0.75 x 1.01 + 0.25 X 0.60
= 0.9075 tCO2/MWh
Leakage The project activity involves installation of Wind Turbine Generators which is renewable energy technology to generate electrical energy from the renewable wind energy. As per methodology ACM 0002 Version 10. No leakage emissions are considered. The main emissions potentially giving rise to leakage in the context of electric sector projects are emissions arising due to activities such as power plant construction and upstream emissions from fossil fuel use (e.g. extraction, processing, and transport). These emissions sources are neglected.
B.6.2. Data and parameters that are available at validation:
Data / Parameter: Operating margin CO2 emission factor in year y - EFgrid,OM, y Data unit: tCO2/MWh Description: Secondary data Source of data to be CO2 Baseline Database for the Indian Power Sector, User Guide, Version 4.0 used: dated October 2008 – from Central Electricity Authority (CEA) Value of data 1.01 Description of As mentioned CEA has developed a database to help the CDM project measurement methods developers in India and is being revised based on the latest data that is available. and procedures to be Hence the latest version of CM EF has been considered into account on ex-ante applied: basis. QA/QC procedures to The data would be archived and made available until two years after the last be applied: issuance of CERs for the project Any comment:
Data / Parameter: Build margin CO2 emission factor in year y – EF grid,BM, y Data unit: tCO2/MWh Description: Secondary data
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Source of data to be CO2 Baseline Database for the Indian Power Sector, User Guide, Version 4.0 used: dated October 2008 – from Central Electricity Authority (CEA) Value of data 0.60 Description of As mentioned CEA has developed a database to help the CDM project measurement methods developers in India and is being revised based on the latest data that is available. and procedures to be Hence the latest version of CM EF has been considered into account on ex-ante applied: basis. QA/QC procedures to The data would be archived and made available until two years after the last be applied: issuance of CERs for the project Any comment:
B.6.3. Ex-ante calculation of emission reductions:
The project activity involves one component that is grid connected electricity generation. By applying approved methodology ACM 0002, emission reduction calculations due to the implementation of the project activity are as follows. ERy = BEy – PEy
Where, ERy - Net Emission Reduction in tCO2 in year y BEy- Baseline emissions in tCO2 in year y PEy - Project emissions in tCO2 in year y
This project activity is grid connected wind power generation. Hence there is no project emission from the project activity. There is no GHG emission within the project boundary.
Therefore the above equation is simplified to
ERy = BEy
Baseline emissions (BEy) BEy is calculated by multiplying the net quantity of electricity supplied by this project activity (EGy) with the CO2 baseline emission factor for the electricity displaced due to the project (EFy,) as follows:
BE y = EGy * EF
Where:
EFy= Baseline emission factor in tCO2/MWh = 0.9075 tCO2/MWh
EGy = Net electricity supplied to the western regional grid in year y Gross Generation = Rated capacity (MW) * Plant Load Factor (%) * Operational hours per year (hours) = 45 MW (Capacity) * 21.94 % (PLF) * 8,760 (hours) MWh = 86487 MWh PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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EGy [Net electricity supplied to the western regional grid in year y (MWh/y)]
= Gross generation- transmission loss = 86487 – 1729.74 = 84757.26 ~ 84757s Putting EGy and EFy in formula
BEy = 84757 MWh/year X 0.9075 tCO2
=76916.98 tonnes of CO2/yr ~76917 tonnes of CO2/yr
B.6.4 Summary of the ex-ante estimation of emission reductions:
Overall emission reduction through 45 MW wind farm project
Estimation of Estimation of Estimation of Estimation of project activity baseline leakage overall emission Year emission (tonnes of emissions (tonnes of reductions (tonnes CO2e) (tonnes of CO2e) CO2e) of CO2e) 2009 0 76917 0 76917 2010 0 76917 0 76917 2011 0 76917 0 76917 2012 0 76917 0 76917 2013 0 76917 0 76917 2014 0 76917 0 76917 2015 0 76917 0 76917 2016 0 76917 0 76917 2017 0 76917 0 76917 2018 0 76917 0 76917 Total (tonnes of 769170 CO2e)
B.7. Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: EGfacility,y Data unit: MWh Description: Quantity of Net metered electricity generation supplied by the project PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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plant/unit to the grid in year y Source of data to be Calculated from EGexport and EGimport (EGexport – EGimport) used: Measurement Net electricity supplied to grid will be calculated on the basis of measured Procedure values of “export” and “import” of electricity through the energy meter installed. Joint meter readings will be taken jointly by representatives of SEB and representative of PP. The joint meter readings will be recorded once in a month.
Monitoring Frequency Continuous measurement and at least monthly recording QA/QC procedures to Cross Check Measurement results with records of sold electricity. be applied: Any comment: • Data will be aggregated monthly and annually • Energy meter will be calibrated by the MSEB at least once in 12 months with a calibration report kept by project owner. • Detailed monitoring plan is given in Annex 4
Data / Parameter: EGexport
Data unit: MWh Description: Electricity exported to the grid by the Project activity in year y
Source of data to be Joint meter readings used: Measurement The export of electricity will be measured by the energy meter installed at Procedure common metering point. Joint meter readings will be taken jointly by representatives of SEB . The joint meter readings will be recorded once in a month. Monitoring Frequency Continuous measurement and at least monthly recording QA/QC procedures to The energy meters will be checked for accuracy as per SEB guidelines on a be applied: regular basis and are subject to periodic calibrations.
Any comment: • Data will be aggregated monthly and annually • Energy meter will be calibrated by the MSEB at least once in 12 months with a calibration report kept by project owner. • Detailed monitoring plan is given in Annex 4
Data / Parameter: EGimport
Data unit: MWh Description: Electricity imported by the Project activity in year y Source of data to be used: Joint meter readings
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Measurement Procedure The export of electricity will be measured by the energy meter installed at common metering point. Joint meter readings will be taken jointly by representatives of SEB . The joint meter readings will be recorded once in a month . Monitoring Frequency Continuous measurement and at least monthly recording QA/QC procedures to be The energy meters will be checked for accuracy as per SEB guidelines on a applied: regular basis and are subject to periodic calibrations.
Any comment: • Data will be aggregated monthly and annually • Energy meter will be calibrated by the MSEB at least once in 12 months with a calibration report kept by project owner. • Detailed monitoring plan is given in Annex 4
B.7.2. Description of the monitoring plan:
RRB Energy Ltd is a supplier of the WEGs and the project proponent will sign an operation and maintenance agreement with them. The performance of the turbines, safety in operation and scheduled/breakdown maintenance is the responsibility of RRB Energy Ltd. The electricity generation measurements are required by the utility and the project developer to assess electricity sales and revenue.
The project activity has two meters. One from the installed and owned by MSEDCL and the other is from the project developer is Control Panel as check meter for measuring the generated electricity from the wind turbines; Parameters monitored ex-post are electricity export (EGexport) and electricity import (EGimport) from the project activity. The same are used to calculate the net electricity export which is taken as the basis for emission reduction calculations.
¾ The same are used to calculate emission reduction calculations.The parameters that requires monthly monitoring, recording will be logged by plant operator(s) allocated in shifts round the clock;
¾ Site in-charge is responsible for monthly recording and reporting of generated electricity to main service office of RRB Energy at Beed and site in-charge as well.
¾ Monthly compilation of all parameters and archiving will be responsibility of site in-charge;
¾ Once in a month the energy supplied to the grid will be carried out jointly in the presence of both the parties (the developer’s representative and officials of the EB). The metering equipments are maintained in accordance with electricity standards.
¾ The archived data will be used by PP in calculating the results related to GHG emissions. This data will be internally audited as per the company’s internal procedures. ¾ The recorded data would be stored and made available (both forms hard copies as well softcopy) until two years after the last issuance of CERs for the project
Further, monitoring information is detailed under Annex 4. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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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 baseline and monitoring methodology: 22/06/2009
The baseline was developed by Jayshri Jamliya, Manager- CDM ,M/s Ecolutions Carbon India Private Limited-Mumbai, India.
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:
Starting date of the project activity will be 20th August 2009
C.1.2. Expected operational lifetime of the project activity:
Expected operational life of the project is 20 years
C.2. Choice of the crediting period and related information:
Fixed crediting period
C.2.1. Renewable crediting period:
C.2.1.1. Starting date of the first crediting period:
C.2.1.2. Length of the first crediting period:
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
Starting date of the fixed crediting period is 1st January 2010 (10/01/2010) or the date of registration whichever is later.
C.2.2.2. Length:
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SECTION D. Environmental impacts
D.1. Documentation on the analysis of the environmental impacts, including trans boundary impacts:
Though, As per the Ministry of Environment and Forest (MoEF) India, Environment Impact Notification S.O. 153333, dated 14th September 2006, wind power projects are not covered under Schedule and thus EIA is not required, Project Proponent has carried out the Environmental Impact Assessment of the project activities as part of Socio- Environmental concerned of the PP. Detail project report will be made available to the DOE at the time of Validation.34 Major Points of the same are as mentioned below:
One of the most prominent positive impacts of a wind power project is the avoidance of fossil fuel burning and subsequent carbon emissions as against the conventional power generation using coal, fuel oil or gas. Based on the projected capacity of the WEGs being installed in this project, it is estimated that carbon emissions to the tune of 76917 tons per year will be saved, thus eliminating adverse environmental impacts of such emissions.
The impacts on the environmental components air, water, ambient noise levels, land and ecology of the area are described in the EIA report.
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:
As the project is clean technology based project, hence there is no significant impact due this project.
SECTION E. Stakeholders’ comment
E.1. Brief description how comments by local stakeholders have been invited and compiled:
M/s Ecolutions Green Energy Ltd. had organized a consultation meeting with the local stakeholders on 23rd January, 2009. Public notice regarding the same was published on 7th January 09 in SAKAL (Local news paper). An invitation was also displayed at the Village Panchayat offices of the affected villages. The meeting was organized at local hotel in Jamkhed that was centrally located and easily accessible in the affected area.
The meeting was attended by about 40 persons, who comprised of the Sarpanch of the affected villages, Villagers, the land procurement consultant, officials of RRB Energy besides the representatives of M/s Ecolutions Green Energy Ltd. The meeting was jointly addressed by Ecolutions and RRB Energy.
33 Available at http://envfor.nic.in/legis/eia/so1533.pdf (accessed in October 2007) 34 EIA report (EIA carried out by Environment Management Centre, Mumbai) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Figure : Pictures of Local stakeholder’s consultation meeting.
The stakeholder meeting commenced with welcome address made by Mr. Vilas Khadse (Project Manager-ecolutions Green Energy Private Limited). He also briefed about the agenda of the meeting. Mr. Khadse proposed the name of Mr. N. K. Gupta (Project Advisor) as the chairman of the meeting. The stakeholders comprised of the local villagers, the operators of the Wind Mill, employees of RRB energy ; contract labor; the site in charge of the wind mill and the land owners of the wind mill sites.
After a brief introduction of the dignitaries present by Mr. Khadse, Mr. Alok Vijayvergiya (CDM consultant-ecolutions Carbon India Pvt. Ltd.) started with the presentation. The presentation was made in English and subsequently translated to Marathi Language by Mr. Shrinivas Tukdeo (CDM Consultant, ecolutions Carbon India Limited) for the better understanding of the stakeholders present.
Mr. Vijayvergiya started the presentation with a brief introduction of ecolutions green energy private limited their activities and the initiative taken by them in the field of CDM. This was followed by a brief introduction on climate change, global warming, Kyoto protocol and the CDM process. Mr. Tukdeo briefed on the working of the Windmill and its positive impacts on the environment.
After the presentation was completed, the Mr. Khadse opened the session for stakeholders to articulate their queries, comments and suggestions. The participants sought clarifications on Kyoto Protocol and Clean Development Mechanisms process.
Mr. Gupta, the Chairman, in summarizing the discussion lauded the management of ecolutions green energy private limited for their efforts in generating electricity using the renewable energy source, namely Wind. He emphasized the importance and advantage of WEGs production.
Finally, Mr. Vijayvergiya proposed the vote of thanks and the meeting concluded with thanks to the chair. He mentioned that for further information the stakeholders could directly contact Mr. Khadse in writing and that Mr. Khadse would clarify all issues related to the CDM initiatives. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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The Project proponents had prepared a questionnaire which was distributed among the stakeholders. The questionnaire had the questions in Marathi as well as in English. The questionnaire included questions that would help analyzing the socio-economic benefits of the Project to the villages and address any concerns that they had regarding it. A question and answer session was conducted after the project information disclosure.
E.2. Summary of the comments received:
Sr. Questions Answers No. 1 Benefit of the wind farm to the As the villages in the area have a minimum of 12 hrs farmers? load shedding; the generation of clean energy would help bridge the gap in the supply and demand of energy 2 Would the educated unemployed persons The Project proponent assured that persons from of the families whose land has been affected families would definitely be employed in procured for the project, be given the project. The project requires a approx.100 employment in the project? persons of which 50 person for semi-skilled work are required. Also about 15 security Personnel are required at the project sites. 3. Would the running of the turbines alter The Project Proponent explained that the WEGs the wind speed and pressure and change reach a maximum height of 56 m and cloud the direction of the clouds thus causing formation takes place at about 1000m. The WEG draught in these villages would cause local changes in wind speed and pressure and cause wake effect along a tubular section. They clarified that WEGs will not affect cloud formation and rainfall patterns in the region. 4 Would the local roads used by the project The up gradation of internal roads used for be improved? accessing the project area is provided in the policy and would be improved as part of project. 5 Could trees be planted in the areas Project proponent said that they would give a between the WEGs thought to this suggestion.
E.3. Report on how due account was taken of any comments received:
The stakeholders have given positive feedback and thus no measures are required to be taken. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Ecolutions Green Energy India Pvt. Ltd. Street/P.O.Box: 15, Mahinder Chambers Building: W.T Patil Marg, Opp Dukes Factory, Chembur City: Mumbai State/Region: Maharashtra Postcode/ZIP: 400 071 Country: India Telephone: +91 22 25201742 FAX: +91 22 25201744 E-Mail: [email protected] URL: http://www.ecolutions.in Represented by: Mr. Kiran Patil Title: Director Salutation: Mr. Last name: Kiran Middle name: First name: Patil Department: Mobile: Direct FAX: +91 2225201744 Direct tel: Personal e-mail: [email protected]
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No Public funding is incorporated in the project activity PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Annex 2
BASELINE INFORMATION
The combined margin emission factor is calculated as follows (data has been sourced from CEA as mentioned above):
Simple OM BM Year (tCO2/MWh) (tCO2/MWh) 2005-06 1.02 2006-07 1.01 2007-08 1.00 0.60 Average operating margin during 1.00 the last 3 years
Where:
EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh)
EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM = Weighting of operating margin emissions factor (%)
wBM = Weighting of build margin emissions factor (%)
The following default values should be used for wOM and wBM:
Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25 (owing to their intermittent and non-dispatchable nature) for the first crediting period and for subsequent crediting periods.
EFgrid, CM, y = 0.75 * EFgrid,OM, y + 0.25 X EFgrid,BM,y = 0.75 x 1.01 + 0.25 X 0.60 = 0.9075 tCO2/MWh
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Annex 4
MONITORING INFORMATION
The monitoring plan proposed for the project activity will be centrally executed by RRB Energy Ltd.
Operational and Maintenance Structure:
The monitoring activity will be executed under the operational and maintenance contract with the project proponent by RRB Energy Ltd.
The service in-charge of site office of RRB Energy Ltd. is responsible for operation and maintenance of WEGs. Each site has service in-charge under site In-charge, who is responsible for record keeping of generation details, operation and maintenance details with the help of site supervisor or operators. The service in-charge is also responsible for reporting all the details of site to main service office of RRB Energy at Beed and site in-charge as well. One operator or site supervisor looks after 10 machines in the shift of 8 hours. So, each machine has 3 operators/site supervisors. Each WEG is under continued observation of security person round the clock, who can inform any fault to operator / site office. The 75 WEGs of this project activity are operated and maintained from site in-charges of respective site offices of Vestas RRB.
Service office at Beed-VRRB
Site In-Charge
Service In-Charge
Customer Representative Site Supervisor / Operators (optional)
Security
Operational and maintenance structure
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Monitoring:
There are two meters called main meter, installed and owned by MSEB and check meter (Local Control System (LCS) – Control Panel) in control panel room at site, installed by the owner of the project and maintained by plant operator / site supervisor / qualified. Daily energy meter reading for all WEGs will be taken by the plant operators / supervisor from service provider and/or qualified operator recruited by machine owner, and will be recorded in the generation log, in a controlled format. The Daily Generation information will be sent to client on a daily / monthly basis to service in-charge of site office and eventually to main service office via service in-charge. The monthly meter reading (both main and check meter) is being taken jointly by the Parties (MSEB), service department of Manufacturer and/or Owner) on the fixed day of the month. Emission reduction calculation is based on monthly joint meter reading.
All main and check energy meters (export and import) and all associated instruments, transformer installed at the project shall be of 0.2% accuracy class. MSEB (main) meter shall be jointly inspected sealed on behalf of the parties and shall not be interfered with by either Party except in the presence of the other party or its accredited representatives. The metering equipment is maintained accordance with electricity standards and has the capability of recording hourly and monthly reading.
The consumption registered by the main meter alone will hold for the purpose of billing. MSEDCL meter will calibrate at least once in a year by MSEDCL officials. If during the daily reading, the variation will find between readings from main meter and check meter, then check meter shall be calibrated by O & M contractor immediately according to inspection record form. However, all the parameters of check meter (LCS) are tested after 3 months from the date of commission of WEG and then at the time interval of 6 months by RRB as mentioned in the inspection record form for control system.
Adequate fire fighting and safety equipment are installed along with safety instructions displayed at the control room of each WEG. Also safety precautions are taken by Vestas RRB according to the safety regulations described in Operation and Maintenance Manual. The service in-charge and site in-charge are responsible for the upkeep of the safety and fire fighting necessary record.