Gold Standard for the Global Goals Key Project Information & Project Design Document (PDD)
Version 1.1 – August 2017
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KEY PROJECT INFORMATION
Title of Project: Nam Hong Hydropower Project Brief description of Project: The Nam Hong Hydropower project activity involves the contruction of two sub – hydropower plants, i.e. Nam Hong 1 and Nam Hong 2 hydropower plant. Each has installed capacity of 8 MW. The project’s purpose is to generate hydropower by installation of water turbines and generators from a clean and renewable source to supply to the national grid under a Power Purchase Agreement (PPA) signed with the Electricity Corporation of Vietnam (EVN). Expected Implemetation Date: Implementation date: 28/10/2010 Expected duration of Project: Expected duration of project: 39 years for the proposed project activity (38 years 0 months for Nam Hong 1 plant and 39 years 0 months for Nam Hong 2 plant). Project Developer: Nam Hong Hydropower Investment & Construction Joint Stock Company Project Representative: Vietnam Carbon Assets Ltd., Switzerland Mr. Renat Heuberger Project Participants and any communities Nam Hong Hydropower Investment & Construction involved: Joint Stock Company Energy and Environment Consultancy Joint Stock Company Vietnam Carbon Assets Ltd. Version of PDD: 3.1 Date of Version: 04/09/2020 Host Country / Location: Vietnam/ Chieng Cong commune, Muong La district, Son La province Certification Pathway (Project Certificatin/Impact Project Certification Statements & Products Activity Requirements applied: GS4GG (mark GS4GG if none relevant) Methodologies applied: ACM 0002 – Grid-connected electricity generation from renewable sources (version 20.0) Product Requirements applied: N/A Regular/Retroactive: Retroactive SDG Impacts: 1 – SDG 7 – Ensure access to affordable, reliable, sustainable and modern energy for all 2 – SDG 8 – Promote sustained, inclusive and sustaibable economic growth, full and productive employment and decent work for all 3 – SDG 13 – Take urgent action to combat climate change and its impacts Estimated amount of SDG Impact Certified 1- SDG 7 – 16 MW of clean energy 2- SDG 8 – 100% of the employees have access to training, healthycare, insurances and better income 3- SDG 13 – 58,006 tCO2e/year.
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SECTION A. Description of project
A.1. Purpose and general description of project The project’s purpose to generate hydroelectricity by installatation of water turbines and generator from a clean and renewable source to supply to the national grid under a Power Puchase Agreement (PPA) signed with the Electricity Corparation of Vietnam (EVN). The project's installed capacity and estimated annual gross power generation is 16 MW and 63,020 MWh, respectively. The net electricity generated (with an estimated annual volume of 62,390 MWh) will be supplied to the national grid via a newly constructed transmission line, which will connect between the plant and the transformer station. The project activity involves the construction of two sub-hydropower plants, i.e. Nam Hong 1 hydropower plant and Nam Hong 2 hydropower plant. Each has installed capacity of 8 MW 1. The project activity is implemented on Nam Hong stream in Chieng Cong commune, Muong La district, Son La province, Vietnam. The main structure of each sub-hydropower plant includes dams, water intake, tunnel, pressurized well, penstock, power house and discharge channel. Prior to the implementation of the project activity there is no power generation existing at the project location, Electricity in Vietnam is generated mainly from fossil fuel sources and is solely distributed to consumers via the unique national electricity grid. The baseline scenario of the project activity is the same as the scenario existing prior to the start of implementation of the project activity. The project activity will generate renewable power with negligible GHG emissions, which will displace part of the electricity otherwise supplied by fossil fuel fired power plants. The Nam Hong hydropower project involves the construction of two reservoirs with an area of 1.36 ha and 1 ha2, respectively, the Nam Hong 1 power density of 588.2 W/m2 and Nam Hong 2 power density of 800 W/m2, accordingly. As the power density of each step hydropower plant is all above 10 W/m2, GHG emissions from the reservoirs need not to be accounted in the project activity. Thus, this project activity generates GHG emission reductions up to a total expected CO2 emission reduction of 406,042 tCO2e over the second crediting period of 7 years.
A.2. Eligibility of the project under Gold Standard General Eligiblity criteria The project activity meets the eligibility criteria as per section 3.1.1 of GS4GG Principles & Requirements, version 1.2 as described below. a) Type of project: The project activity includes construction and operation of a hydropower plants to generate renewable electricity to supply the national grid. Hydropower project activity is an eligible project type according to section 2 of GS4GG Renewable energy activity requirements, version 1.2. b) Location of project: the project is located on Nam Hong stream in Chieng Cong commune, Muong La district, Son La province, Vietnam. c) Project area, project boundary and scale: the project area is 2.36 ha. According the applied ACM0002, ver 20.0, the spatial extent of the project boundary includes the Nam Hong HPP and all power plants connected physically to the national electricity grid which the proposed project is also connected. The detailed on the project boundary is presented in section B.3 of this PDD. The installed capacity of the project activity is 16 MW so it is large scale project. d) Host country requirements: the project’s contribution to the sustainable development of the local area as well as the host country are as follows:
1 FSR, General Description, page 2. 2 FSR, Environmental Impact Assessment Report, page 28
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General contributions towards national sustainable development: In recent years, Vietnam has suffered a critical electricity shortage as a consequence of rapidly increasing demand and insufficient supply, thereby imposing negative impacts on economic growth as well as on daily lives of people. This project activity will be a contribution towards balancing the supply and demand gap. By exporting electricity directly to the national grid, it will help to reduce electricity losses across the national grid and to lessen the risks of cascading national grid collapse due to overload. Reducing reliance on exhaustible fossil fuel based power sources and also reducing the import of fuels for the purpose of power generation. Modern and highly efficient turbines and generators are being used in the project and the power transmission will be at high voltage to ensure low losses. The project will accelerate the deployment of renewable energy technologies in Vietnam. Contributions towards local sustainable development: Economic well-being Once commissioning, this proposed project will increase the industrial share in the economic structure of Son La province – poor mountainous province in the Northwest of Vietnam. This proposed project will have a significant contribution to the state budget via annual taxes (i.e. corporate income tax3, resources tax4, CER tax5). By supplying a stable electricity output, this project will facilitate the industrialisation process of the province and support economic development of local villages through fostering tourism, trade and services inside the province. After commissioning, this project will supply electricity to speed up the commissioning of other large infratrucure project in the region. Social well-being This project will contribute directly to improve the low-quality infrastructure systems of Chieng Cong commune. The commune is categorised as a very poor mountainous commune with scattered population, less developed and autarky agricultural economy. The project will upgrade and improve roads that then will be integrated into the traffic system of the communes. Besides, the project will construct newly 35kV and 110 kV transmission lines together with sub-hydropower plants, which will contribute to reduce electricity losses and improve the quality of electricity supplying in the regions. The majority of local residents living in the project area are from the ethnic minorities like Mong and La Ha. They usually live in less favourable living conditions than those of Kinh ethnic – the majority of population in Vietnam. Thus, the project will contribute to improve their living standard which will fill the gap in development between different ethnic groups in Vietnam. The communication system and clean water treatment serving for workers of the project during the both construction and operation phases will be shared with local people. Besides, the project activity
3 Law on Corporate Income Tax No.14/2008/QH12 dated 03 June 2008 4 Investment Law and Law on resources tax 5 Decision No.130/2007/QD-TTg dated 02 August 2007 of the Prime Minister on some mechanisms and financial policies for the projects invested in under the Clean Development Mechanism and Joint Circular No.58/2008/TTLT-BTC-BTN&MT dated 04 July 2008 of the Ministry of Natural Resources and Environment providing for the implementation of Decision No.130/2007/QD-TTg.
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will result in the employment of the local people for the construction and operation later on. Therefore, this project activity will contribute directly to alleviate poverty in the region. This demonstrates that the project activity will contribute positively towards sustainable development and that it is consistent with the policies of the Government to encourage environment protection. e) Contact Details: The project participants include the Nam Hong hydropower Investment& construction Joint Stock Company, Energy and Environment Consultancy Joint Stock Company and Vietnam Carbon Assets Ltd. Contact details of all the Project Participants are presented in Appendix 1 of this GS PDD. f) Legal ownership and Other Rights: the project owner has full legal right to control and operate the project activity. They have got all the required permits which granted by the government like as Business Certificate, Investment Licence of the Project, certificate of land use rights, water use licence, electricity generation permit, Power Purchase Agreement. g) Official development assistance (ODA) declaration: no public funds or ODA is involved in this project activity.
Additional Eligibility Criteria for Hydropower project activity The project activity meets the additional eligibility criteria for hydropower project activity as per Annex A of GS4GG Renewable Energy Activity Requirements, version 1.2 as described below. a) The project activity is located in Chieng Cong commune, Muong La District, Son La province, Vietnam, where are not listed as High Conservation Value (HCV) areas. The information is confirmed in the Environmental Impact Assessment Report of the project. Morever, international sources of information such as the World Database on protected planets, IUCN, UNEP, the Ramsar list of wetlands, and the United Nations list of protected areas have been referred to confirm tha the project activity is not located in HCV area. b) The EIA Report of Nam Hong HPP was approved by Nam Hong Hydropwer Investment and Construction Joint Stock Company on 07/2009. c) Training courses for the hydropower plant staff shall be conducted in the monitoring and reporting plan for the GSS4GG project. d) Project also does not claim certificates from another Certification Scheme other than GS, therefore no double counting occurs and thus it is eligible under the Gold Standard. e) The installed capacity of the project activity is 16 MW greated than 15 MW. The WCD has been made and validated by GS-VVB during the first registration stage. The local stakeholder consultation has also been strictly implemented in the first registration stage. Nam Hong hydropower project was successfully validated and registered as a project under Gold Standard. In line with Annex A of Renewable Energy Activity Requirements, vesion 1.2, the impact of the project on the below critical issues identified for hydropower project are described as follows: Competing use of water resources: The proposed project is located on Nam Hong stream where there is Chieng Cong Hydropower in the upstream which is either under operation. Howerver, as provided for the provincial master plan as well as in the national master plan, these shall be in close cooperation to ensure that there is no completion in the water use. Furthermore, there are very few residents living at the project location, so that no agricultural activities which require water from the river take place. It is concluded that there are no competing uses of water resources or water diversion form current use due to the proposed project activity. Minimum ecological flow: The proposed project involves the construction of a run of river plant that does not alter the river flow. In addition, this project is small-scale project according to host country regulation. It does not change the natural water flow. Beside, the dam is designed with spillway and sand discharge gate so that the minimum flow is maintained after the dam, which guarantees habitat quality, securing the minimum water depth for aquatic creature migration during the construction and operation. According to the documents, the minimal flow shall be at
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least 1.47 m3/s for Nam Hong 1 and 2.92 m3/s for the Nam Hong 2. Therefor the minimum water depth for fish migration during the construction and operation. Groundwater level: The minal water flow is maintained at 1.47 m3/s (Nam Hong 1) and 2.92m3/s (Nam Hong 2) as per FSR, so the groundwater level is no affected by the project activity. Subsequently, the vegetation and the associated biodiversity near the river are not affected. Furthermore, as the local residents at the project area don not use under ground water for any purpose including drinking and cultivation, influence on groundwater level (if any) will not affect their living. Fish passage and screens (water intake structure): As the described above, the design of project in general guarantees habitats quality, securing the minimum water depth for aquatic creature migration during the construction and operation. The design of dam ifish passage and water intake screens is in line with Feasibility Study Report (FSR) which was approved by Nam Hong Hydropower Investment and Construction Joint Stock company dated 07/2009 and issued by People’s Committee of Son La Province Department of Industry and Trade dated 30/03/2007. The design is also in line with the Environmental Impact Assessment Report which was approved by Nam Hong Hydropower Investment and Construction Joint Stock Company dated 07/2009 issued by Muong La district People’s Committee dated 06/08/2009. Sediment management: As active flow is transformed into static form and velocity of flow decreases, sand and mud carrying ability of the rivr is significantly reduced. The amount of sand and mud from the upstream will be retained in the reservoir, which reduces water volume and project performance. The dam is designed with discharge gate that enables the sediments to pass through periodically, therefore there is no accumulaton of sediments below the dam, and subsequently typically morphological structures are sustained. After the limited amount of sediment which is passed through the plant periodically at the end of rainy season, therefore no concrete sediment management plan should be needed. Soil erosion: During the construction period, topsoil erosion may occur due to the excavatin activities. However, the project owner will fill up the excavated areas which are exploited for building materials as soon as possible to minimize negative impacts. When the project is commissioned, there are no excavation activities and the project proponents commit to conduct plantation around the project site to aoid erosion. Periodic monitoring will be conducted by a qualified party to ensure re-plantation is sufficient. During the operational period, there are no excavation activities and the vegetation cover will be restored. Therefore, the soil erosion will be monitored and controlled.
A.3. Legal ownership of products generated by the project and legal rights to alter use of resources required to service the project Project owner – Nam Hong Hydropower Investment & Joint Stock Company has the legal ownership of the products that generated under Gol Standard Certification and has legal rights concerning changes in use of resources required to service the project for land use, counstruction, selling electricity license and so on, which is documented in Investment License, Power Purchase Agreement and Certificate of Land use rights.
A.4. Location of project
A.4.1. Host Country Viet Nam
A.4.2. Region/State/Province etc. Son La province
A.4.3. City/Town/Community etc. Chieng Cong commune, Muong La district
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A.4.4. Physical/Geographical location The propose project activity involves the construction of Nam Hong 1 and Nam Hong 2 sub-hydropower which is located on the Nam Hong stream. This project has co-ordinates as follows6:
Hydrpower plant Northern latitude Eastern longgitude Power house 21027’12’’ 104013’14’’ Nam Hong 1 Dam 21027’08’’ 104014’12’’ Power house 21027’24’’ 104011’36’’ Nam Hong 2 Dam 21027’36’’ 104012’30’’
The site of the project is showed in the Figure 1.
Figure 1: Map of the location of the project activity
A.5. Technologies and/or measures Prior to the implementation of the proposed project, there is no power generation existing at the project location. Electricity supplied to the national grid is generated by the operation of grid-connected power plants. Electricity in Vietnam is generated mainly by firing coal, oil or gas and is solely distributed via the unique national electricity grid. All fuel fired power plants connected to the national grid use boiler rooms, steam heating boilers and steam turbines to generate electricity. In that technology cycle, GHGs are generated. Since hydro power generation technology is a renewable electricity generation technology which displaces fossil fuel fired power generation technology to supply electricity to the grid, the implementation of this project activity will generate emission reductions.
6 Feasibility Study Report
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The project involves the construction of two sub-hydropower plants. Each plant involves the construction of dam, water intake, tunnel, pressurized well, penstock, and power house with 02 units and discharge channel in order to convert potential flowing energy from the Nam Hong stream into clean electrical energy, which will be supplied to the national grid at the connection point through the transmission line (total expected generation of 63,020 MW). The project involves the construction of two reservoirs with power density above 10 W/m2. According to Version 20.0 of ACM0002, no GHG emissions from the reservoirs need to be accounted in the project activity. At the connection point, the power meter systems will be installed. They are digital and bi-directional type to measure the export and import electricity of Nam Hong hydropower plant. The lay-out of these two sub-hydropower plants can be illustrated as follow:
Figure 1: Project lay-out The main technical parameters of the Nam Hong Hydropower Project are shown in Table 1. Table 1: Main technical parameters of the proposed project activity7 Values Main parameters Units Nam Hong 1 Nam Hong 2 1. Turbine Type Francis Francis
HLA542-LJ-120 HLA575C-LJ-105
7 Equipment Purchase Contract & Feasibility Study Report, Volume IV.6 “Technological Equipment Report”
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Diameter of runner mm 1200 1050 Number of turbine set 01 01 Rated discharge m3/s 4.6 6.37 Rated efficiency % 92 93 Rated capacity kW 8333 8333 Speed rpm 750 750 2. Generator Number set 01 01 Type 3 phase 3 phase
SFW8000-8/2600 SFW8000-8/2600 Rated voltage kV 6.3 6.3 Rated capacity kW 8000 8000 Efficiency % 96 96 3. Transformer Number set 01 01 Type 3 phases, 3 windings 3 phases, 3 windings Rated capacity MVA 10.0 10.0 4. Annual river flow8 m3/s 1.47 2.92 5. Plant load factor9 % 45.8 44.1 6. Project lifetime10 year 38 39
The main equipment utilized in this project are imported abroad. The project owner has chosen suppliers via tender. The tender documents set criteria for supplier to ensure that the turbines and alternators are state- of-the-art technology. The project owner will cooperate with the equipment supplier to provide technical services such as training courses for the operational staff of the Nam Hong hydropower plant on the monitoring procedures, operation regulations, maintenance procedures and other relevant operational knowledge before operating the power plant. Furthermore, there will be regular training courses on monitoring and operation for the staff during the operation period. Via these exchanges, the foreign technology would be transferred to the host country.
A.6. Scale of the project Nam Hong Hydropower plant is a large scale project (16MW). According to the UNFCCC and GS rules, the renewable energy project with capacity more than 15 MW is listed as a large-scale project.
A.7. Funding sources of project The project not using any ODA and public fundings as defined in the GS manual for Project Developers. Private fund sources from Nam Hong Hydropower Investment & Construction Joint Stock Company
A.8. Assessment that project complies with ‘gender sensitive’ requirements According to the Gender equality requirement guidelines version 1.1, the gender sensitive requirements includes three steps: basic context, apply gold standards safeguarding principles, and conduct stakeholder consultation, which are illustrated in the following table.
8 Feasibility Study Report, Volume “Hydro-meteorological Report”, page 12
9 The PLF is calculated as annual operational hours/8760hrs. The operational hours actually results from the ratio of the annual power generation and the installed capacity, while in the case of the proposed project activity, the power generation is calculated based on the 43 years hydrological data (1963-2006) by an independent qualified body who designed the FSR.
10 Feasibility Study Report
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Table 2: Gender sensitive assessment No Question Responding Step 1: Basic context 1. Question 1: Does the project reflect the Answer 1: Yes, it does. The project owner key issues and requirements of Gender has prepared the project activity to ensure Sensitive design and implementation as the contribution to generate livelihood outlined in the Gender policy? benefits and enable women and men to equitable contribute to the local development through the project implementation. (Ref: Policy statement by the project owner) Answer 2: Yes, it does. The project acitivity 2. Question 2: Does the project align totally complies with the Gender Equality with existing country policies, strategies and Law qpproved by the National Assembly in best practices? the 2006 and the Govement ‘s Decree No. 48/2009/ND-CP providing measures to assure gender equality Step 2: Apply gold 3. Does the project address the questions Yes, it does. The project Owner has it own standard safeguarding raised in the Gold Standard Safeguarding internal regulations including their principles Principles &Requirements document? commitments to implement the gender equality. All the GS mandatory requirements of the gender equality and women’s right are met properly (Ref. Policy statement by the project owner) Step 3: 4. Does the project apply the Gold Standard Yes. It does. The physical stakeholder Conduct stakeholder Stakeholder Consultation & Engagement consultation meeting has been organized onsultation Procedure, Requirements & Guidelines? following the GS guidelines During first rtheegistration stage. The continuous input/ grievance mechanisms for the project including comment books, telephone access and internet/ email access are always maintained by the project participants. To renew the second crediting period for the project activity, the project participants have invited stakeholders for comments electrolically11
SECTION B. Application of selected approved Gold Standard methodology
B.1. Reference of approved methodology Applied methology: ACM 0002: “Grid-connected electricity generation from renewable sources” – version 20.0 (https://cdm.unfccc.int/methodologies/DB/XP2LKUSA61DKUQC0PIWPGWDN8ED5PG)
Related tools: Tool 07 - Version 07. 0 of the “Tool to calculate the emission factor for an electricity system”. (https://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v7.0.pdf) Tool 11 – Version 3.0.1 “Assessment of the validity of the validity off the original/ current baseline and update off the baseline at the renewable of the crediting period.
11 https://eec.vn/en/blog/notice-of-renewal-of-crediting-period-for-nam-hong-hydropower-project-according-to-the-gold- standard-and-clean-development-mechanism-gs-cdm-item230.html
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(http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-11-v3.0.1.pdf)
B.2. Applicability of methodology This proposed project is a grid-connected renewable power generation that is then applicable to apply Viersion 20.0 of ACM 0002. More details of the comparison of the project’s characteristics and the applicability criteria as specified in Version 20.0 of ACM 0002 is given in Table below. Table 3: Comparison of project’s characteristics and eligibility criteria of Version 20.0 of ACM0002 No. Applicability conditions in Version 20.0 of Characteristics of the project Applicability ACM0002 activity condition met? 1 This methodology is applicable to grid- The project activity consists in Yes connected renewable energy power the installation of a new grid generation project activities that: connected renewable power (a) Install a Greenfield power plant; plants at a site where no (b) Involve a capacity addition to (an) renewable power plant was existing plant(s); operated prior to the (c) Involve a retrofit of (an) existing implementation of the project operating plant(s)/unit(s); activity (Greenfield power (d) Involve a rehabilitation of (an) existing plant) plant(s)/unit(s); or (e) Involve a replacement of (an) existing plant(s)/unit(s). 2 The methodology is applicable under the The project activity is a newly Yes following conditions: two – step hydropower plant (a) The project activity may include renewable energy power plant/unit of one of the following types: hydro power plant/unit with or without reservoir, wind power plant/unit, geothermal power plant/unit, solar power plant/unit, wave power plant/unit or tidal power plant/unit; (b) In the case of capacity additions, retrofits, Not applicable rehabilitations or replacements (except for wind, solar, wave or tidal power capacity addition projects) the existing plant/unit started commercial operation prior to the start of a minimum historical The project activity is a newly reference period of five years, used for installed 2 step hydropower the calculation of baseline emissions and plant with no capacity defined in the baseline emission section, additions, retrofits, and no capacity expansion, retrofit, or rehabilitations or replacements. rehabilitation of the plant/unit has been undertaken between the start of this minimum historical reference period and the implementation of the project activity. 3 In case of hydro power plants, one of the The project activity constructs Not applicable following conditions shall apply: two new reservoirs (a) The project activity is implemented in an existing single or multiple reservoir, with no change in the volume of any of the reservoir or (b) The project activity is implemented in The project activity constructs Not applicable existing single or multiple reservoirs, two new reservoirs where the volume of the reservoir(s) is
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No. Applicability conditions in Version 20.0 of Characteristics of the project Applicability ACM0002 activity condition met? increased and the power density, calculated using equation (7), is greater than 4 W/m2; or (c) The project activity results in new single or The project activity creates two Yes multiple reservoirs and the power new reservoirs with power density, calculated using equation (7), is density of 588.2 W/m2 and 800 greater than 4 W/m2 W/m2 respectively, which are all greater than 4 W/m2. (d) The project activity is an integrated hydro The project activity is not an Not applicable power project involving multiple integrated hydropower plant reservoirs, where the power density for any of the reservoirs, calculated using equation (7), is lower than or equal to 4 W/m2, all of the following conditions shall apply: (i) The power density calculated using the total installed capacity of the integrated project, as per equation (4), is greater than 4 W/m2; (ii) Water flow between reservoirs is not used by any other hydropower unit which is not a part of the project activity; (iii) Installed capacity of the power plant(s) with power density lower than or equal to 4 W/m2 shall be: a. Lower than or equal to 15 MW; and b. Less than 10 percent of the installed capacity of integrated hydro power project. 4 In the case of integrated hydro power projects, This project activity is not an Not applicable project proponent shall: integrated hydropower plant (a) Demonstrate that water flow from upstream power plants/units spill directly to the downstream reservoir and that collectively constitute to the generation capacity of the integrated hydro power project; or (b) Provide an analysis of the water balance covering the water fed to power units, with all possible combinations of reservoirs and without the construction of reservoirs. The purpose of water balance is to demonstrate the requirement of specific combination of reservoirs constructed under CDM project activity for the optimization of power output. This demonstration has to be carried out in the specific scenario of water availability in different seasons to optimize the water flow at the inlet of power units. Therefore, this water balance will take into account seasonal flows from river, tributaries (if any), and rainfall for minimum five years
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No. Applicability conditions in Version 20.0 of Characteristics of the project Applicability ACM0002 activity condition met? prior to implementation of CDM project activity 5 This methodology is not applicable to: It is a renewable energy project Yes (a) Project activities that involve switching with no fuel-switch and biomass from fossil fuels to renewable energy at fired power plant involved. The the site of the project activity, since in this project activity is a hydropower case the baseline may be the continued plant use of fossil fuels at the site (b) Biomass fired power plants/ units 6 In the case of retrofits, rehabilitations, The project activity is the Not applicable replacements, or capacity additions, this installation of two new methodology is only applicable if the most hydropower plants plausible baseline scenario, as a result of the identification of baseline scenario, is “the continuation of the current situation, that is 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”. This comparison shows clearly that the proposed project activity fulfils all applicability criteria to be eligible under Version 20.0 of ACM0002.
B.3. Project boundary According to Version 20.0 of ACM 0002, the spatial extent of the project boundary includes the Nam Hong 1 hydropower plant, the Nam Hong 2 hydro power plant and all power plants connected physically to the national electricity grid which the proposed project is also connected. The flow diagram of the project boundary is shown in Figure 3.
Reservoirs GHGs Emission
GHGs Emission represent by EFCM Water flow
Turbines Electric Energy Fossil fuel fired power plants Generators Kinetic Energy
Viet Nam Transformer National s Electricity grid
Figure 2: Project boundary
The GHGs and emission sources included in the project boundary are shown in Table 4. Table 4: Sources and gases included in or excluded from the project boundary
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Source GHG Included? Justification/Explanation CO2 emission from electricity CO2 Yes Main emission source
generation in fossil fuel fired power CH4 No Minor emission source plants that is displaced due to the N2O No Minor emission source project activity ---
Baseline For hydro power plants, emissions of CO2 No Minor emission source CH4 from the Reservoir Main emission source. However, as the power density of all CH4 No sub-hydro power plants are greater than 10 W/m2 CH4 emissions are neglected according to ACM0002. N2O No Minor emission source ---
Project activity
B.4. Establishment and description of baseline scenario .
According to Version 20.0 of ACM0002, if the project activity is the installation of a new grid-connected renewable power plant, the baseline scenario is defined as the following:
"Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin calculations described in the “Tool to calculate the emission factor for an electricity system”".
The Vietnam national electricity grid, which is operated and monopolized by the EVN and is the unique transmission and distribution line, to which all power plants in Vietnam are physically connected is the project electricity system.
Thus the baseline scenario of the proposed project is the delivery of equivalent amount of annual power output from the Vietnam national grid to which the proposed project is also connected. In the absence of the project activity, the clean energy generated by this proposed project would have been generated through non-renewable sources from Power Plants connected to the National grid, fostering the emission of greater quantities of greenhouse gases.
The analysis and description in B.5 and B.6 will support the baseline scenario shown above.
The latest report of Emission Factor of Vietnam Electricity System, published by Department of Climate Change, Ministry of Natural Resources and Environment of Vietnam on 12/03/2020 effects the baseline GHG emission, and the reassessment of the baseline emissions by applying the data of the latest report is presented in the section B.6 below.
CDM project standard for project activities, version 02.0, item 10 - Renewal of crediting period, paragraph 282, 283, 284, 285 and 286 says that:
“282. The project participants shall demonstrate the validity of the original baseline or update it in accordance with paragraphs 283-286 below.
283. To demonstrate the validity of the original baseline or its update, the project participants are not required to re-assess the baseline scenario. Instead, the project participants shall assess the GHG
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emission reductions or net anthropogenic GHG removals that would have resulted from that scenario”;
284. The project participants shall assess and incorporate the impact of national and/or sectoral policies and circumstances, existing at the time of requesting the renewal of the crediting period, on the current baseline GHG emissions, without reassessing the baseline scenario”. 285. The requirements contained in paragraph 284 above are not applicable to a registered CDM project activity applying the valid version of an applicable approved standardized baseline that standardizes baseline scenario in accordance with paragraph 281 above. 286. If data and parameters used for determining the original baseline, that were determined ex ante and not monitored during the crediting period, are no longer valid, the project participants shall update such data and parameters in accordance with the “Methodological tool: Assessment of the validity of the original/current baseline and update of the baseline at the renewal of the crediting period”.
The stepwise procedure to assess the continued validity of the baseline and to update the baseline at the renewal of a crediting period is conducted following methodological tool "Assessment of the validity of the original/current baseline and update of the baseline at the renewal of the crediting period" (Version 03.0.1, EB 66, Annex 47). The tool consists of two steps. The first step provides an approach to evaluate whether the current baseline is still valid for the next crediting period. The second step provides an approach to update the baseline in case that the current baseline is not valid anymore for the next crediting period.
Step 1: Assess the validity of the current baseline for the next crediting period
The "Procedures for the renewal of the crediting period of a registered CDM project activity" approved by the CDM Executive Board require assessing the impact of new relevant national and/or sectoral policies and circumstances on the baseline.
The validity of the current baseline is assessed using the following sub-steps:
Step 1.1: Assess compliance of the current baseline with relevant mandatory national and/or sectoral policies
According to the registered PDD, in the absence of the project activity, electricity which will be supplied to the national grid would come from fossil fuel power plants. The generation of electricity by burning fossil fuels result in CO2 emission into the atmosphere. Hence, the baseline scenario of the project is the electricity delivered to the grid by the project activity that otherwise would have been generated by the operation of grid-connected fossil fuel power plants and by the addition of new generation sources.
Electricity Law No. 28/2004/QH11 dated on 03/12/2004 and Law No. 50/2010/QH12 on "Economical and Efficient use of energy" dated on 17/06/2010 are the main laws that govern the electricity sector in Vietnam. Their implementation is regulated under Government Decree No. 14/2014/ND-CP on "Stipulating in detail the implementation of electricity law regarding electricity safety" dated on 26/02/2014. National policy and regulation does not mandate setting up renewable power plants from existing capacity. Thus it can be concluded that the current baseline scenario is in compliance with relevant mandatory national and sectoral policies.
Step 1.2: Assess the impact of circumstances
The circumstances existing at the time of requesting renewal of crediting period are the same as existing in the validation of the PA. Furthermore, this is a greenfield project activity and the baseline at validation was not the continuation of the existing scenario. Therefore, this step is not applicable for this project.
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Step 1.3: Assess whether the continuation of use of current baseline equipment(s) or an investment is the most likely scenario for the crediting period for which renewal is requested.
This sub-step should only be applied if the baseline scenario identified at the validation of the project activity was the continuation of use of the current equipment(s) without any investment and, the projects proponents or third party (or parties) would undertake an investment later due, for example, to the end of the technical lifetime of the equipment(s) before the end of the crediting period or the availability of a new technology.
Since the baseline scenario identified during the validation of the project activity was electricity generation in power plants that are displaced due to the project activity and was not the continuation of use of the current equipment(s). This sub-step is not applicable for this project activity.
Step 1.4: Assessment of the validity of the data and parameter.
"Where emission factors, values or emission benchmarks are used and determined only once for the crediting period, they should be updated, except if the emission factors, values or emission benchmarks are based on the historical situation at the site of the project activity prior to the implementation of the project and cannot be updated because the historical situation does not exist anymore as a result of the CDM project activity".
In the registered PDD, the grid emission factor was calculated as per the combined margin approach described in the "Tool to calculate the emission factor for an electricity system" version 02.1.0 The grid emission factor was calculated as the weighted average of OM & BM; and was fixed ex-ante for the entire crediting period. Since the emission factors that were determined at the start of the first crediting period are not valid anymore, the data and parameters have been updated for the second crediting period.
The OM and BM was obtained from official data provided by DNA Vietnam on 12/03/2020. This is the most recent data available during the validation of renewal of crediting period.
Considering the guidance provided under this step, calculation of emission factor and baseline emissions are updated for the next crediting period as per step 2.
Step 2: Update the current baseline and the data and parameters
Step 2.1: Update the current baseline.
The current baseline scenario is still valid.
Step 2.2: Update the data and parameters.
As mentioned in step 1.4, all parameters regarding the grid emission factor are updated in the second crediting period.
B.5. Demonstration of additionality CDM Project Standard for Project Activities, version 02.0, item 10. Renewal of crediting period Paragraph 280 states that: “For renewal of crediting period of a registered CDM project activity, the project participants are not required to reassess the additionality of the project activity nor update the section of the PDD relating to additionality” Nam Hong Hydropower project is a registered CDM project. Therefore, the reassessment of the additionality is not required for renewing crediting period. The following sections therefore are kept the same with the registered PDD.
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According to Version 12.1.0 of ACM0002, the latest version of the “Tool for the demonstration and assessment of additionality” shall be used to demonstrate the additionality of this project activity – version 05.2 of the additionality tool includes the following steps: Step 1: Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a: Define alternatives to the project activity The following alternative scenarios to the project activity will be considered: Alternative 1: The proposed project undertaken without being registered as a CDM The construction and operation of Nam Hong 1 and Nam Hong 2 hydropower plants with total installed capacity of 16MW, without being registered as a CDM project activity. Alternative 2: Adding a new fossil fuel-fired power plant with equivalent power output The construction and operation of a new fossil fuel-fired power plant Alternative 3: Adding a new renewable energy power plant other than hydropower plant The construction and operation of another renewable power plant (e.g. solar, wind, biomass). Alternative 4: continuation of the current situation. In this case, the proposed project will not be constructed and the power will be solely supplied from the Vietnam national grid. Alternative 2 cannot be the baseline scenario because according to the Master Plan of Electricity Expansion for period of 2006-2015 with perspective to 2025 - EVN (Master Plan VI) approved by the Prime Minister in July 200712 which is the latest publicly information source listed all operated and planned power plants in Vietnam, there is not any fossil fired power plant with the equivalent and lower power output is constructed/under construction and/or planned in Vietnam or Son La province. According to the Electricity Law, the investment in electricity generation must be complied with the Master plan. However, in the point of view for electricity development by Ministry of Industry and Trade, the common capacity of thermal power unit within next 10 years is 300 MW and in the future the higher capacity (600 MW and higher) will be chosen for reducing the investment cost. It shows that the investment and operation of such thermal power plants with the capacity equal and below 16 MW is not realistic in Vietnam13. Furthermore, Nam Hong Hydropower Investment & Construction Joint Stock Company has only experience and right to invest and trade in hydroelectric power sector14. The construction of fossil fuel power plants by the project proponent is not a plausible investment option as the project participant has no know-how and experience as well as a plan for investing in a fossil fuel power plant. Alternative 3 cannot be the baseline scenario because the project location does not provide sufficient renewable resources except for the water resource15. Furthermore, the project owner has only experience and right to invest and do business in hydroelectric power sector then he cannot conduct the investment for Alternative 2 and 3. The construction of solar, wind or biomass power plants by the project proponent is not a plausible investment option as the project participant has no know-how and experience as well as a plan for investing in such these projects. Especially for solar power resource, in order to supply the same electricity
12 Decision 110/QD-TTg by the Prime Minister dated 18 July 2007 13 For a comprehensive list of thermal power plants in Vietnam in English, please also see “Environmental issues of thermal power plants” presented by Dr. Hoang Duong Tung, Vietnam Environmental Protection Agency, Ministry of Natural Resources And Environment at the “Cleaner Coal Workshop on Solutions to Asia's Growing Energy and Environmental Challenges”, 19-21 August 2008, Ha Long City, Vietnam, accessible at: http://www.egcfe.ewg.apec.org/publications/proceedings/CleanerCoal/HaLong_2008/Day%202%20Session%201C%20- %20Huang%20Duong%20Tung%20Environmental%20Issues.pdf 14 The Business Registration Certificate for Nam Hong Hydropower Investment & Construction Joint Stock Company first issued on 26/10/2007 by Department of Investment and Planning, Son La province. 15 Chapter VI - Master Plan VI
101.1 T PDD Page 17 of 54 output, the capacity of the solar power plant would be about 2.5 times in compare with the proposed project16 and the cost of investment per MW is about 6 times the cost of investment for the proposed project17, then the total investment for the solar power plant with the same electricity output will be 15 times compared with those of the proposed project. So the project owner cannot have enough the equity capital to invest in18. In fact, in Vietnam the most popular of renewable technology is hydropower due to the experience in exploiting this renewable resource in Vietnam has been accumulated since 1960. The latest comprehensive list of operated power plants in Viet Nam19 shows that the oldest operated hydropower plant namely Da Nhim was commissioned in 1964. Furthermore, the list also shows that the technologies exploiting energy from other renewable sources are not the common practices in Viet Nam at a commercial scale. At the time of making the investment decision by the project owner, there is only one sugar plant which salvages the biomass (bagasse or residue from their sugar production process) to generate electricity20. It is the only renewable source that generates electricity apart from the hydropower source up to date. For wind power resource until 21 August 2009 the first wind based generation unit with capacity of 1.5 MW was operated in Binh Thuan province21. This unit is one of the wind turbines belong to the project which was also registered as the CDM project22 The analysis shows that Alternative 2 and 3 are not realistic and credible alternatives. Sub-step 1b: Consistency with mandatory laws and regulations The alternative 2 “continuation of the current situation” does not face any barrier from the current law and regulation in Vietnam because it is the “do-nothing” alternative. The project owner of a proposed project has no obligation to build or invest in the power plant to supply electricity for the local area. Hence this alternative is consistent with mandatory laws and regulations. The Nam Hong Hydropower Project received the Investment License issued by Son La Provincial People’s Committee on 29 October 2009, which defines legal right of the project owner to invest in and construct Nam Hong hydropower project. Therefore, the alternative 1 “the proposed project is undertaken without the CDM” is consistent with mandatory laws and regulations of Vietnam. In conclusion, only Alternatives 1 and 4 are further considered as realistic and credible alternatives. Step 2: Investment analysis Sub-step 2a: Determine appropriate analysis method The proposed project activity generates financial and economic benefits other than CER revenues, so the simple cost analysis (Option I) is not applicable. Out of the two remaining options, as there are no other credible and realistic baseline scenario alternatives other than electricity supply from the grid, Option II is also not applicable. Thus, the benchmark analysis (Option III) is chosen to prove additionality. Sub-step 2b – Option III: Apply benchmark analysis In the following, Project IRR is used to demonstrate the Additionality of the project. Provided that the proposed project is financed by both equity and loan sources, the appropriate benchmark is WACC which
16 The average load factor of solar power plant is about 17.5% according to http://www.renewableenergyfocus.com/view/8359/wind- and-solar-power-cost-sensitive-to-load-factors/ 17 The investment cost of solar power plant is about 7060 USD/MW according to “Technical and Economic Assessment of Grid, Mini- Grid and Off-Grade Electrification Technologies” by The World Bank Group Energy Unit, Energy, Transport and Water Department 18 According to the decision 30/2006/QD-BCN, the investors' capital must account for least 30% of the total capital. 19 List of operated power plants supplied by Institute of Energy 20 http://www.bourbontn.com/vn/?content=sbook&view=14#book_27 and data supplied by the Institute of Energy 21 http://english.vietnamnet.vn/tech/2009/08/865677/ 22 http://cdm.unfccc.int/Projects/DB/KEMCO1219986182.6/view
101.1 T PDD Page 18 of 54 represents the weighted average of the costs of various sources of financing in the financing structure. This benchmark represents the minimal required FIRR of the project to be economically attractive. The WACC benchmark is indicated in paragraph 12, EB 62, Annex 5 “Guidance on Assessment of Investment Analysis, Version 05”, “Local commercial lending rates or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR”. Thus the project participant applies the following WACC equation to estimate the required return on capital as a benchmark for this project IRR:
WACCERDRT***(1)(1)edc Where: Re : cost of equity Rd : cost of debt E : Amount of equity in the project D : Amount of debt in the project Tc : average enterprise tax rate This WACC is the “the cost of financing and required return on capital” which is “based on private equity investors/fund” required return on comparable projects” as presented in Option III, Item (6)(b) of “Tool for the demonstration and assessment of additionality” version 5.2. And it also reflects a common-practice approach in investment decision-making in Viet Nam as this approach was also introduced by the Ministry of Industry to conduct the financial analysis of IPP projects in Viet Nam23. Determine the cost of debt The cost of debt is the interest rate for a long-term loan prevailed at the time of making the investment decision. The project participant chooses the lowest value of the range from 12% to 12.75% of the interest rates for long-term credit published in the Annual Report of the State Bank of Viet Nam 2008. This report is published at the website of the State Bank annually (www.sbv.gov.vn). So the cost of debt used for benchmark derivation is conservative and standard value. The applied cost of debt is 12%24 at the date of making the investment decision. Determine the cost of equity To derive an appropriate cost of equity for electricity generation project type in Vietnam, the following well- known CAPM25 standard formula, which describes the relationship between risk and expected return, is employed:
Re = Rf + β *(Rm, - Rf) (2) Where: Re, cost of equity for electricity generation project type Rf Risk free rate return β Beta of the security for electricity generation project type Rm, - Rf, Market risk premium
23 Decision No. 2014/QĐ – BCN issued by the Ministry of Industry provides temporary guidelines for conducting the economic, financial and investment analysis and providing the purchasing-selling price frame for power generation projects. 24 Annual Report of State Bank of Vietnam 2008, page 30 25 In finance, the Capital Asset Pricing Model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified portfolio, given that asset's non-diversifiable risk. The model takes into account the asset's sensitivity to non-diversifiable risk (also known as systemic risk or market risk), often represented by the quantity beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.
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Risk free rate: The risk free rate is understood as the rate of return on an asset that is theoretically free of any risks, therefore the rate of interest on government bonds are considered as risk free rates. Accordingly the risk free rate has been taken from long term Vietnamese government bond rates available at the date of making the investment decision. The data on government bond rates is published on Asia Commercial Bank securities company website. The risk free rate applied is 15% for 15 years term26. Beta: Beta (β) indicates the sensitivity of the company to market risk factors. Beta represents the market risk for an asset and is calculated as the statistical measure of volatility of a specific asset/investment relative to the movement of a market group. The conventional approach for estimating beta of an investment is a regression of returns on investment against returns on a market index. For companies that are not publicly listed like Nam Hong Hydropower Investment & Construction Joint Stock Company, the beta is determined by referring to beta values of publicly listed companies that are engaged in similar types of business. The project activity type is power generation; therefore the applied beta for this project should be based on the beta values of listed power generation companies in Vietnam. Due to the difference in capital structure (Dept/Equity) between these companies and Nam Hong Hydropower Investment & Construction Joint Stock Company, the Beta applied for this CDM project has to be adjusted according to the following steps: 1. Step 1 – It is obtained the Levered Betas of hydropower companies published in stock market with its own capital structures; 2. Step 2 – The Beta is Unlevered according the average capital structure of the companies; the unlevered beta is the beta of a company without any debt. Unlevering a beta removes the financial effects from leverage27. 3. Step 3 – The Unlevered Beta is levered again according to the capital structure of the Nam Hong Hydropower project. This Levered Beta was used for calculation of cost of equity of the Nam Hong Hydropower Project. Table 4: Betas of similar companies in hydro power generation28 Company name Levered Beta of D/E Unlevered Levered Beta for similar projects Beta CDM project
Vinh Son Song Hinh Hydropower 0.98 0.12 0.90 2.48 Company Ry Ninh II Hydropower JSC 0.64 0.79 0.40 1.11 Thac Ba Hydropower Company 1.06 0.06 1.02 2.80 Naloi Hydropower JSC 1.13 0.31 0.92 2.52 Nam Mu Hydropower JSC 0.93 3.89 0.24 0.65 Can Don Hydropower JSC 0.84 1.58 0.39 1.06 Thac Mo Hydropower JSC 0.71 0.93 0.42 1.15 Mien Trung Power Investment and 0.74 1.61 0.34 0.93 Development JSC
26 http://research.acbs.com.vn/BondInfo.aspx?LangId=2 27 http://www.investopedia.com/terms/u/unleveredbeta.asp 28 The betas of these companies have been calculated by the project developer based on the published daily data. The link of sources are included in the attached excel sheet
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Average Beta 1.59
Risk Premium: The most common approach for estimating the risk premium is to base it on historical data, in the CAPM model, the premium is estimated by looking at the difference between average return on stocks and the risk free rate return. The average return on stocks is defined as the compound annual growth rate (CARG)29. Table 5: Market expected return calculation Market index (VN Index) as of 28-Jul-2000 100.00 Market index (VN Index) as of 25 Dec 2009 479.10 No. of years 9.41 Compound annual growth rate (CARG) or Rm 18.11% Substituting Rf = 15%; Rm = 18.11%; β = 1.59 in (2), we get the cost of equity for power generation projects in Viet Nam at the date of decision making of the proposed project as follows: Re = 19.94% This rate of the cost of equity for power generation sector meets the EB rules because it reflects a sector specific approach. It is calculated based on similar companies operating in power generation sector in Viet Nam therefore it reflects “standard in the market, considering the specific characteristics of the project type (…)” as stipulated in the guidance given in the latest additionality tool under sub-step 2b (5). Another survey by a securities company in Viet Nam recommends the range of 25% to 30% for cost of equity for power generation companies in Vietnam market30. Therefore, the rate of 19.94% is conservatively applied as the cost of equity for power generation projects in Viet Nam at the date of decision making of the proposed project is the most conservative value. The table below presents key assumption to calculate the benchmark - WACC according to formula (1) Table 6: Key assumptions to calculate the benchmark No Parameter Unit Value Total project Nam Hong 1 Nam Hong 2 1 Total investment cost31 1000 VND 339,402,771 175,645,713 163,757,058 2 Project equity32 1000 VND 101,820,831 52,693,714 49,127,117 3 Required return on equity % 19.94 19.94 19.94 rate 4 Debt Total 1000 VND 237,581,940 122,951,998 114,629,941 Interest rate33 % 12 12 12
29 CAGR is a standard growth rate of an investment over a certain period of time, details and formula can be found at http://www.stanford.edu/~mikefan/metrics/cagr.html or http://www.investopedia.com/terms/c/cagr.asp 30 The report by Alpha Securities Company has been submitted to the DOE 31 Total Investment Cost as amended 32 Decision No.30/2006/QD-BCN issued on 31 August 2006 by Ministry of Industry regulates that the investment capital of project owner (equity) in an IPP project must be accounted for at least 30% 33 Annual report of State bank of Vietnam 2008, page 30
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5 Average business revenue % 17.05 17.05 17.05 tax during the life time34 6 WACC (Benchmark) % 12.95 12.95 12.95
Sub-step 2c: Calculation and comparison of financial indicators The key assumptions used to calculate the project IRR of the proposed project are presented in Table 7: Table 7: Key assumption for investment analysis No Parameter Unit Value Total project Nam Hong 1 Nam Hong 2 1 Gross capacity35 MW 16.0 8.0 8.0 2 Annual net electricity MWh 62,389.8 31,798.8 30,591 generation36 3 Total investment cost37 1000 339,402,771 175,645,713 163,757,058 VND 4 Total annual O&M cost38 % 1 1 1 5 Preparation and construction year 2.5 2.5 2.5 period39 6 Financial project lifetime40 year 39 38 39 7 Electricity price41 VND/kWh 666 666 666 8 Resources tax42 % 2 2 2 9 Enterprise revenue tax43 % For the first 4 years 0 0 0 For the next 9 years 5 5 5 For the next 2 years 10 10 10 For the 25 25 25 remaining years 10 Project IRR % 8.86 8.68 9.03 This table shows that the project IRR of the project was lower than the benchmark at the time of decision making which is defined as the date of issuing the Investment Decision by the Board of Management. All financial data are available to the DOE for Validation. Sub-step 2d: Sensitivity analysis A sensitivity analysis of the project activity has been conducted to test the robustness of the above calculations. According to Annex 5 “Guidelines on the Assessment of Investment Analysis” Version 05, EB 62
34 Decree No.124/2008/ND-CP dated 11 December 2008 of the Government providing detailed regulations and guidance for the implementation of a number of articles of Law on Enterprise Income Tax, Chapter II, Article 10, Item 1; Chapter IV, Article 15,Item 1, Article 16, Item 1(a). 35 FSR, Volume “General Description”, page 2 36 The gross power generation subtracts 1% for parasitic and loss load 37 Total investment cost as amended 38 Decision No. 2014/QD – BCN dated 13 June 2007 of the Ministry of Industry. The O&M cost of the power plant with capacity lower than 30MW is 1% to 2%. 39 Project feasibility study report 40 Feasibility Study Report 41 Tariff calculated according to host country laws on avoided cost tariff Decision No.74/QD-BTC dated 24 December 2008 of the Ministry of Finance 42 Circular No 42/2007/TT-BTC issued by Ministry of Finance on 27 April 2007 regulating the resource tax that will be calculated as the net electricity outputs supplied to the national electricity grid x 750 VND x 2% 43 Decree No.124/2008/ND-CP dated 11 December 2008 of the Government providing detailed regulations and guidance for the implementation of a number of articles of Law on Enterprise Income Tax, Chapter II, Article 10, Item 1; Chapter IV, Article 15, Item 1, Article 16, Item 1(a)
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Report, page 5, paragraph 20, “Only variables, including the initial investment cost, that constitute more than 20% of either total project costs or total project revenues should be subjected to reasonable variation (all parameters varied need not necessarily be subjected to both negative and positive variations of the same magnitude),...”; therefore, the following parameters are used in the sensitivity analysis of the project activity: 4. Annual amount of electricity exported to the national grid
5. Investment cost
6. Feed-in price set by EVN
Table below shows the impact of variations in key factors on the project IRR considering a ±10% variation in the parameters. Table 8: Sensitivity analysis No. Parameter Variation44 Project IRR Total project Nam Hong 1 Nam Hong 2 Annual amount of +10% 9.86% 9.68% 10.04% 1 electricity exported to the -10% 7.83% 7.65% 7.98% national grid 2 Investment costs +10% 7.99% 7.82% 8.15% -10% 9.87% 9.70% 10.06% 3 Electricity price +10% 9.88% 9.70% 10.06% -10% 7.80% 7.62% 7.96% The sensitivity analysis shows that the project IRR of the project was considerably lower than the benchmark in all cases. In conclusion, the proposed CDM project activity is unlikely to be financially attractive. On going financial need: During the first crediting period, the PPs has conducted 2 times of verification for the monitoring periods as follows: 1st monitoring period: 01/07/2012 – 30/04/2014 – 29,992 CERs (issued) 2nd monitoring period: 01/05/2014 – 31/03/2016 – 56,287 CERs (issued) The total 86,279 CERs have been issued for 2 monitoring periods with the total revenue from CERs is about 58,322 EURs without deducting the third party cost. As mentioned above, the IRR of project without CDM is 8.86%. After receiving financial supporting from CER selling in the 1st crediting periods, the IRR of project increase insignificantly to 10.00% and it is still lower than benchmark which is set of 12.95%. During the 2nd crediting period, the project is expected to generate 58,006 GS-CERs annually. With the expected GS-CERs price of around 8 EUR/GS-CER, the total revenue from GS-CER can achieve 464,048 EUR/year. The IRR of project without GS/CDM in the 2nd crediting period is 8.86%. After receiving financial supporting from GS CER selling, the IRR of project increase to 10.00%, still lower than benchmark. Therefore, the ongoing financial need derived from GS certification is necessary to reduce unattractiveness of the project and enhance the project’s operation in the 2nd crediting period. This GS finance helps to maintain
44 ±10% is selected according to the Decision No. 2014/QD – NLDK dated 13 April 2004 of the Ministry of Industry providing temporary guidance for conducting the economic, financial and investment analysis and providing the purchasing-selling price frame for power generation projects. It is also in line with the Guidelines on the Assessment of Investment Analysis, Annex 5, EB 51 Report, page 4, paragraph 18, i.e. “the sensitivity analysis should at least cover a range of +10% and -10%”. Furthermore, ±10% is also a common practice rate for sensitivity analysis of a CDM project.
101.1 T PDD Page 23 of 54 project activity contributing to the development of local communities in terms of income and employment creation, worker quality increase and emission reduction. Currently, there are no change of policy/market which may impact on the project finance. The impacts of electricity tariff, O&M cost, investment cost and annual electricity export to the national grid have been analyzed in Sub-step 2d above: Sensitivity analysis.
Step 3: Barrier analysis Not applied. Step 4: Common practice analysis Sub-step 4a: Analyse other activities similar to the proposed project activity Government Decree No. 45/2001/ND-CP providing for power activities and use, which was issued on 02 August 2001 and was entered into force 15 days after the issuance date, created a legal basis to allow other entities to invest in and generate electricity rather than only state-owned entities as previously regulated. Before that time, all power plants have been invested from the state budget sources and operated by state owned companies. Hence, any hydropower projects that have started the construction activities before August 2001 are not subject to this analysis. To classify the projects listed against the criteria: similar scale, and take place in a comparable environment with respect to regulatory framework, investment climate , the most relevant regulations which regulate the legal entities, the investment management procedures, and the technical designs and construction standards for hydropower projects in different scales (No.3454/QĐ-BCN, Vietnam Construction Code - TCXDVN 285:2002). According to Vietnam Construction Code - TCXDVN 285:2002 "Irrigation projects - Major standards on designing"45 which regulates the criteria for construction contractors, design steps and warranty period for construction works activities, hydropower projects are categorized as follows. Table 9: Groups of hydropower projects according to Vietnam Construction Code - TCXDVN 285:2002 Group Installed capacity I equal and larger 300 MW II equal and larger 50 MW but smaller 300 MW III smaller 50 MW but equal and larger 5MW IV smaller 5 MW but equal and larger 0.2MW V up to 0.2MW
Furthermore, according to the Decision of Ministry of Industry – No.3454/QĐ-BCN dated 18 October 2005 defining the jurisdictions to approve the Master Plans and management hierarchy for small scale hydropower projects, hydropower projects having installed capacity within the range 1 MW to 30 MW are categorised as small scale projects. To serve the purpose of this analysis and in order to categorise hydropower projects in correspondence with the existing regulations mentioned above, hydropower projects are categorised into groups as follows: Table 10: Groups of hydropower projects serving for common practice analysis Group Installed capacity Referred regulations A equal and larger 300 MW Vietnam Construction Code - TCXDVN 285:2002 B equal and larger 50 MW and Vietnam Construction Code - TCXDVN 285:2002 equal and smaller 300 MW C smaller 50 MW and larger Vietnam Construction Code - TCXDVN 285:2002 and 30MW Decision of Ministry of Industry - No: 3454/QD-BCN,
45 Construction Code regulates the basic technical standards that are mandatory for construction activities in Vietnam
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D equal and smaller 30 MW Vietnam Construction Code - TCXDVN 285:2002 and and larger 5MW Decision of Ministry of Industry - No: 3454/QD-BCN, E up to 5MW Vietnam Construction Code - TCXDVN 285:2002 and Decision of Ministry of Industry - No: 3454/QD-BCN, According to Table above, this proposed project activity falls into Group D. Table below provides the projects belong to Group D which are similar scale and take place in a comparable environment to the proposed project activity. Table 11: Hydropower plants in group D46 No Name Capacity Construction Commissioning Developed as CDM MW starting year year project 1 Nam Mu 12 2002 2004 No 2 Ea Krong Rou 28 2003 2007 No 3 Suoi Sap 14.4 2004 2007 No 4 Nam Tha 6 6.0 2006 2007 Yes 5 Ngoi Xan 1 8.1 2006 2007 Yes 6 Na Loi 9.3 2000 2003 No Because the Na Loi hydropower project started construction from 200047, it is excluded from this common practise analysis. Exclusion is also applied to Nam Tha 648 and Ngoi Xan 149 as they are developed as CDM projects. Thus, only 3 projects are relevant in this analysis. The comparison of the three remaining hydropower plants and the proposed project activity is presented in Table below. Table 12: Hydropower plants which belong to group D (5 – ≤ 30 MW) were developed in Vietnam No Name Capacity Elec. Load Construc Commi- Investor during the MW outputs factor -tion ssioning investment and construction 103 MWh % starting year period year 0 The 16 63,02 45.0 2010 2011 Nam Hong Hydropower proposed Investment & Construction project Joint Stock Company (private owned company) A. Invested and constructed by state-owned companies or joint stock companies which are either state-owned or whose major shares held by the government 1 Nam Mu 12 55.7 53.0 Jan. 2002 2004 Song Da Construction Corporation - one of the largest state-owned construction corporation belongs to Ministry of Construction (Nam Mu Hydropower JSC was set up on 29 May 2003 to take over the continuing construction and to
46 List of project supplied by Institute of Energy 47 http://www.naloi.com.vn/?et=news&page=introduce 48 http://cdm.unfccc.int/UserManagement/FileStorage/HWAFNGZRTMU51V86XDB2LP40I79KJE 49 http://cdm.unfccc.int/UserManagement/FileStorage/ZTSNIRG1O4E8YX3H2WFJD0LBA5KM7Q
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operate the Nam Mu plant)50
2 Ea Krong 28 110.7 45.1 Otc. 2003 2007 Mien Trung Power Rou Investment and Development Joint Stock Company (Song Da Construction Corporation and Power Company No.3 hold majority of shares. Power Company No.3 belongs to EVN) 51 . In addition, this project had received 4 million USD from India’s ODA loan52. B. Invested and constructed by private companies 3 Suoi Sap 14.4 65.7 52.1 Jul. 2004 2007 Truong Thanh Construction Company Limited
Sub-step 4b: Discuss any similar options that are occurring The existence of these hydropower plants does not contradict the result of the benchmark analysis stating that the proposed project is financially unattractive, because of the following reasons: For projects 1 - 2: As described in the Table above, these projects have been invested in by either large state- owned corporations or joint stock companies whose majority shares held by large state- owned corporations. These projects do not face the barriers that the proposed project faces because: 1. The state-owned corporations mentioned above are among the largest state-owned power and construction corporations in Vietnam. They are financed by the state budget as well as their investment activities. In 1990s, Song Da Construction Corporation have been constructing many national hydropower plants like Hoa Binh (1920 MW), Yaly (720 MW), Tri An (400 MW), Thac Ba (108 MW)…And from 2000, Song Da Corporation had been studying and investing in a series of hydropower plants like: Ry Ninh 2, Na Loi, Can Don, Se San 3A…53Therefore, they have substantial experiences in designing, investing, constructing and operating hydropower plants.
2. The state-owned corporations mentioned above were established according to the Prime Minister's Decisions No 90/TTg and 91/TTg dated 07 March 1994. The formulation of these corporations is to aim at developing power and construction industries in order to meet national socio-economic development goals and strategies and to implement development tasks assigned by their ministries and/or Prime Minister in certain development periods. Therefore, the key target of these
50 Prospectus of Nam Mu Hydropower Joint Stock Company http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/Ban%20Cao%20Bach/HJS_BCB.doc 51 http://www.mientrungpid.com.vn/?page=7 52 http://songda.com.vn/info/News/tabid/65/ItemID/1/View/Details/Default.aspx 53 http://songda.com.vn/info/News/tabid/65/ItemID/1/View/Details/Default.aspx
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corporations is to serve as the governmental tool for macroeconomic interferences rather than profit making54.
3. Project 3: The initial main objective of this project by the government was to invest in an irrigation project to provide water for 700 ha commercial plantation and rice fields in order to alleviate poverty and to develop local agriculture and rural communes in Phu Yen District, Son La Province. Then the project owner decided to synergise this objective with the construction of a hydropower plant. According to the Government Decree No. 17/2001/NĐ-CP, this project was given priorities to access ODA. Therefore, this project has borrowed ODA soft-loan from India at a very favourable interest rate55 while the proposed project has to take loans from domestic banks without such a favourable condition. The circumstances of this project thus clearly show that this project has not been facing a similar barrier as the proposed project.
As can be seen from the above analysis, no similar projects facing the same barriers as the proposed project have been developed without the aid of CDM. Implementation timeline of the proposed project activity For the purpose of CDM project implementation, the Project owner invited local people and local authorities to discuss the social and environmental impacts potentially caused by the implementation of the project as the CDM project via the meeting with local stakeholders on 20 December 2009 in Chieng Cong commune, Muong La district. The Management Board made a decision on developing the proposed project under CDM via the issuance of Decision No.16/QD-HDQT dated 25 December 2009. In order to secure the CDM status the project owner sent official letters to the People's Committee of Son La Province (the highest provincial authority) and DNA to notify the CDM project activity and request for their support in developing the proposed project as a CDM project activity on 26 November 2009 and 17 December 2009 respectively. This was prior to the starting date of the proposed project activity which is defined as the date of signing the earliest contract – the construction contract (October 2010). The proposed project was notified to the EB on 02 November 2010. Since then the project owner has been spending continuously efforts in pursuing the CDM, i.e. submitting the project to the DNA for their official approval and looking and negotiating with buyers for CERs generated in parallel with the implementation of the investment project. The below table indicate the major milestones in developing the investment project and CDM application: Table 13: Major milestones in developing the investment project and CDM application
Development of the hydropower Events and actions taken to Time Implication on CDM project achieve CDM registration Finalizing Feasibility Study Report Jul. 09 of the project Issuing Investment license 29 Oct. 09 Submitting official letter to CDM early Son La People's Committee by consideration the project owner to obtain 26 Nov. 09 the verification and support for CDM project
54 http://vi.wikipedia.org/wiki/Tổng_công_ty_91 55 Source: Interview with Truong Thanh Construction Company Limited and confidential documentation provided to DOE
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Signing the CDM consulting CDM early contract with a CDM 28 Nov. 09 consideration consultant
Submitting the official letter CDM early to DNA Vietnam by Son La consideration Provincial People’s Committee 15 Dec. 09 to obtain the verification and support for CDM project Submitting the official letter CDM early to DNA Vietnam by the consideration project owner to obtain the 17 Dec. 09 verification and support for CDM project Organized stakeholders CDM early consultation meetings to consideration inform of CDM project and consult opinions of the local people and authorities on 20 Dec. 09 social and environmental impacts of the project. Minutes of meetings was produced. Issued the Decision on implementing the investment project 25 Dec. 09 Date of making under Clean Development Mechanism by the Management decision Board Starting date of the Signing the first construction contract 28 Oct. 10 project activity
Notification of CDM project to Executive Board 02 Nov. 10
Signing the equipment contract 25 Feb. 11
Signing the contract for the construction of Nam Hong 2 02 Mar. 11 power house In conclusion, the proposed project is additional.
B.6. Sustainable Development Goals (SDG) outcomes
B.6.1. Relevant target for each of the three SDGs SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all Indicator 7.2.1 – Renewable energy share in the total final energy consumption Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Indicator 8.5.1 – Average hourly earnings of female and male employees, by occupation, age and persons with disabilities
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Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value SDG 13: Take urgent action to combat climate change and its impacts Indicator 13: Climate action Target 13.2: Integrate climate change measures into national policies, strategies and planning
B.6.2. Explanation of methodological choices/approaches for estimating the SDG outcome
SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all This SDG outcome is measured in accordance with ACM 0002 “Grid-connected electricity generation from renewable sources” version 20.0 for the net electricity supplied to the national grid by the project, EGfacility,y (MWh)56. Baseline emission: Prior to the implementation of the project activity, electricity in Viet Nam is generated mainly from fossil fuel sources and is solely distributed to consumers via the unique national electricity grid. Project’s outcome: This project annually supplements 62,390 MWh of clean and sustainable electricity to the national grid, thereby contributing to the Target 7.2: - By 2030, increase substantially the share of renewable energy in the global energy mix.
SDG 8: Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all Baseline emission: The project activity is located in Son La province. The average monthly income per capita of Son La province in 2018 is 1.483 million VND This information is published by General Statistics Office of Vietnam (GSO) (https://www.gso.gov.vn/default_en.aspx?tabid=783) Project’s outcome: The project leads to employment opportunities, which would not have been possible in the baseline scenario. During the construction and operation phase, some job opportunities were provided to local people to work impermanent for technicians qualified and unskilled workers. , 40 local employees in 41 permanent jobs57 have been created with approximate average monthly salary of 8.1 million VND. The average salary of Nam Hong staffs is higher than the local level58. The project contributes to the Target 8.5 - By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
SDG 13: Take urgent action to combat climate change and its impacts
For the climate combat action, this project directly reduces 58,006 tons of CO2 equivalent/year, thereby the project contributes to the National SDG 13 - Target 13.2 – Integrate climate change measures into national policies, strategies and planning.
56 Please refer to the CDM registered Project Design Document (CDM PDD) for further details 57 This information was confirmed by PO through interview on-site; List of operating worker for Nam Hong hydropower plant
58 Company payroll is available upon the verification
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This SDG outcome is measured in accordance with ACM0002 “Grid-connected electricity generation from renewable sources” version 20.0 for the emission reductions generated by the project, ERy (tCO2e). Baseline emission:
Baseline emissions include only CO2 emissions from electricity generation from fossil fuel fired power plants that are displaced due to the project activity, calculated as follows: BEy = EGPJ,y x 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 a 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”.
Calculation of EGPJ,y Because 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 = EGfacility,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) Therefore, the baseline emissions are calculated as follows:
BEy = EGfacility,y x EFgrid,CM,y Project emission: According to the ACM0002 Version 20.0, the project emission for the most renewable energy power generation project activities is calculated using the following equation:
푃퐸푦 = 푃퐸퐹퐹,푦 + 푃퐸퐺푃,푦 + 푃퐸퐻푃,푦 Where:
푃퐸푦 = Project emissions in year y (t CO2e/yr)
푃퐸퐹퐹,푦 = Project emissions from fossil fuel consumption in year y (t CO2/yr)
푃퐸퐺푃,푦 = Project emissions from the operation of dry, flash steam or binary geothermal power plants in year y (t CO2e/yr)
푃퐸퐻푃,푦 = Project emissions from water reservoirs of hydro power plants in year y (t CO2e/yr)
Project emissions from fossil fuel consumption in year y (PEFF,y) According to the Version 20.0 – ACM0002, Paragraph 33 “For all renewable energy power generation project activities, emissions due to the use of fossil fuels for the backup generator can be neglected”. The project activity is a hydro power plant, therefore the emissions from fossil fuel combustion of the Nam Hong HPP is considered as zero. PEFF,y = 0
Project emissions from the operation of dry, flash steam or binary geothermal power plants in year y (PEGP,y) These emissions only apply for geothermal project activities. The proposed project is a hydro power plant that does not operate geothermal power plants, therefore, PEGP,y = 0
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The above project emission calculation equation therefore can be shortened as follows:
PEy = PEHP,y
Project emissions from water reservoirs of hydro power plants in year y (PEHP,y): For hydropower project activity that results in new reservoirs and/or the increase of existing reservoirs, the power density (PD) of the project activity shall be calculated as follows: CapCap PD PJBL AA PJ BL (Equation 1) Where: PD Power density of the project activity, in W/m2.
CapPJ Installed capacity of the hydro power plant after the implementation of the project activity (W).
CapBL Installed capacity of the hydro power plant before the implementation of the project activity (W). For new hydro power plants, this value is zero.
APJ Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (m2).
ABL Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (m2). For new reservoirs, this value is zero.
(a) If the power density of the project activity is greater than 4 W/m2 and less than or equal to 10 W/m2:
퐸퐹푅푒푠 × 푇퐸퐺푦 (Equation 2) 푃퐸 = 퐻푃,푦 1000 Where:
PEy Project emission from water reservoirs (tCO2e/year)
EFRes Default emission factor for emissions from reservoirs of hydropower plant, and (the default value as per EB23 is 90 Kg CO2e /MWh).
TEGy Total electricity produced by the project activity, including the electricity supplied to the grid and the electricity supplied to internal loads, in year y (MWh).
(b) If the power density of the project activity is greater than 10 W/m2:
푃퐸퐻푃,푦 = 0 (Equation 3) Leakage: The main emissions potentially arising due to activities such as power plant construction and upstream emissions from fossil fuel use (e.g. extraction, processing, and transport) are neglected. According to ACM0002 Version 20.0, these emissions sources do not need to be considered as leakage, therefor leakage is neglected.
Emission reductions: Emission reductions are calculated as follows:
퐸푅푦 = 퐵퐸푦 – 푃퐸y
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Where:
ERy Emission reductions in year y (tCO2e/y).
BEy Baseline emissions in year y (tCO2e/y).
PEy Project emissions in year y (tCO2e/y).
B.6.3. Data and parameters fixed ex ante for monitoring contribution to each of the three SDGs
Relevant SDG Indicator SDG 7 - Indicator 7.2.1 – Renewable energy share in the total final energy consumption
Data/parameter CapPJ Unit MW Description Installed capacity of Nam Hong hydropower plant Source of data Equipment specifications Value(s) applied 16 Choice of data or N/A Measurement methods and procedures Purpose of data Calculation of Baseline emissions Additional comment N/A
Relevant SDG Indicator SDG 13 – Climate action
Data/parameter EFgrid,CM,y
Unit tCO2/MWh
Description Combined margin CO2 emission factor for grid connected power generation in year y calculated using the latest version of “Tool to calculate the emission factor for an electricity system”. Source of data Data published by DNA Viet Nam Value(s) applied 0.92975 Choice of data or As per version 07.0 of the “Tool to calculate the emission factor for an Measurement methods electricity system”. and procedures Purpose of data Calculation of Baseline emissions Additional comment N/A
B.6.4. Ex ante estimation of outcomes linked to each of the three SDGs
Calculation of project emissions (PEy) The proposed project activity involves the construction of a new two - step hydropower plant with total capacity (CapPJ) of 16 MW and a new reservoir, thus ABL = 0 and CapBL = 0. Thus sub – power plant have installed capacity and reservoir area are listed as detailed in table below: Table 15: Installed capacity and respective reservoir area of sub-hydropower plants
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Sub – hydropower plant Nam Hong 1 Nam Hong 2 Installed capacity (MW) 8 8 Reservoir (m2) 13,600 10,000
The power density of each sub – project plant is derived as follows: 6 퐶푎푝푃퐽 − 퐶푎푝퐵퐿 8 × 10 − 0 푊 푃퐷 = = 4 = 588.2 ( 2) 퐴푃퐽 − 퐴퐵퐿 1.36 × 10 − 0 푚 6 퐶푎푝푃퐽 − 퐶푎푝퐵퐿 8 × 10 − 0 푊 푃퐷 = = 4 = 800 ( 2) 퐴푃퐽 − 퐴퐵퐿 1.0 × 10 − 0 푚
It is greater than 10 W/m2, thus the project emission is zero: PEy = 0. So the monitoring of total electricity generation TEGy was not included in the monitoring section. PEy = PEHP,y = 0 (tCO2/year) Calculation of the emission factor (EF) of the national electricity grid For this renewal crediting period, the emission factor is calculated using: Latest national data: The published data by the host country DNA of Vietnam, Department of Climate Change, Ministry of Natural Resources and Environment of Viet Nam on 12/03/2020; and
The Version 07.0 of “Tool to calculate the emission factor for an electricity system” valid from 31/08/2018 onward.
The Emission Factor of Vietnam Electricity System for year 2018 was calculated and published by DNA of Vietnam, Department of Climate Change, Ministry of Natural Resources and Environment of Viet Nam on 12/03/2020 using Version 07.0 of “Tool to calculate the emission factor for an electricity system”, including:
The operating margin emission factor: EFgrid,OM,y = 0.8795 tCO2/MWh
And build margin emission factor: EFgrid,BM,y = 0.9465 tCO2/MWh The combined emission factor is calculated as follows: EFgrid,CM,y = EFgrid,OM,y × wOM + EFgrid,BM,y × wBM Where:
wOM: Weighting of OM emission factor (%)
wBM: Weighting of BM emission factor (%) However, the DNA report applied the weighting factors of both OM and BM emission are 0.5, which is not applicable for the second and third crediting period. According to the Version 07.0 of “Tool to calculate the emission factor for an electricity system”, the following default values are used in the renewal crediting period:
wOM = 0.25 and wBM = 0.75 So in the renewal crediting period, the CM emissions factor is derived as follows:
EFgrid,CM,y = 0.25 × 0.8795 + 0.75 × 0.9465 = 0.92975 tCO2/MWh The CM emission factor shall be fixed for the second crediting period. Calculation of baseline emissions (BEy) Baseline emissions include only CO2 emissions from electricity generation by fossil fuel fired power plants that are displaced due to the project activity. It is calculated as follows:
퐵퐸푦 = 퐸퐺푃퐽,푦 × 퐸퐹푔푟푖푑,퐶푀,푦 = 퐸퐺푓푎푐푖푙푖푡푦 × 퐸퐹푔푟푖푑,퐶푀,푦 Where:
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EGfacility,y: = Electricity supplied by the Nam Hong hydropower plant to the grid
EFgrid,CM,y = Combined margin CO2 emission factor for grid connected power generation in year y
Therefore: For Nam Hong 1 sub – hydropower plant EGy, NH1 = 31,798 MWh therefore: BEy,NH1 = 31,798 × 0.92975= 29,564 tCO2/yr For Nam Hong 2 sub-hydropower plant: EGy, NH2 = 30,591 MWh therefore: BEy, NH2 = 30,591 × 0.92975 = 28,442 tCO2/yr For whole project (Nam Hong hydropower project) BEy = BEy,NH1 + BEy, NH2 = 58,006 tCO2/yr Leakage (Ly) As it is stated in ACM0002 Version 20.0, this emission is considered as zero: Ly = 0 Emission reductions (ERy) Emission reductions are calculated as follows: ERy = BEy - PEy - Ly = 58,006 tCO2/year
B.6.5. Summary of ex ante estimates of each SDG outcome The estimated emission reduction of the project activity is provided in Table below: SDG 7 – Ensure access to affordable, reliable, sustainable and modern energy for all
Table 15: Net electricity supplied to national grid Year Baseline estimate Project estimate Net benefit (MWh) (MWh) 2019 (01/07/2019 – 0 31,451.3 31,451.3 31/12/2019) 2020 0 62,389.8 62,389.8 2021 0 62,389.8 62,389.8 2022 0 62,389.8 62,389.8 2023 0 62,389.8 62,389.8 2024 0 62,389.8 62,389.8 2025 0 62,389.8 62,389.8 2026 (01/01/2026- 0 30,938.5 30,938.5 30/06/2026) Total 0 436,728.6 436,728.6 Total number of 7 crediting years Annual average over 0 62,389.8 62,389.8 the crediting period
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SDG 8 - Promote inclusive and sustainable economic growth, employment and decent work for all The project leads to employment opportunities which would not have been possible in the baseline scenario. The project provides permanent employment to 41 people. A hydro project in general does not expose workers to unsafe or unhealthy work environments interms of toxins or chemicals. In addition the project follows national safety rules under (Host Country) Law that covers work safety. The project owner will cooperate with the equipment supplier to provide technical services such as training courses for the operational staff of the Nam Hong hydropower plant on the monitoring procedures, operation regulations, maintenance procedure and other relevant operational knowledge before operationg the power plant. After the course, staffs passed the examination have been issued the certificate. Then internal trainings on plant operation have been conducted annually for plant staffs. The project proponent also creates good labor condition for the plant staffs. Every year, all the employees are checked-up at the medical centers for free using their health insurance via insurance card.
Table 16. Net electricity supplied to national grid Year Baseline Project estimate Net benefit estimate 2019 (01/07/2019 – 31/12/2019) 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2020 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2021 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2022 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2023 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2024 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2025 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs 2026 (01/01/2026- 30/06/2026) 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs Total 0 training, 0 job 14 training, 41 14 training, 41 jobs jobs Total number of crediting years 7 Annual average over the crediting period 0 training, 0 job 2 training, 41 jobs 2 training, 41 jobs
SDG 13 - Take urgent action to combat climate change and its impacts
Table 17: Expected emission reduction in the 2nd crediting period Baseline estimate Project estimate Year Net benefit (tCO2e) (tCO2e) (tCO2e) 2019 (01/07/2019 – 29,241 0 29,241 31/12/2019) 2020 58,006 0 58,006 2021 58,006 0 58,006 2022 58,006 0 58,006 2023 58,006 0 58,006 2024 58,006 0 58,006 2025 58,006 0 58,006 2026 (01/01/2026- 28,765 0 28,765 30/06/2026) Total 406,042 0 406,042
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Total number of crediting 7 years Annual average over the 58,006 0 58,006 crediting period
B.7. Monitoring plan
B.7.1. Data and parameters to be monitored (Include specific information on how the data and parameters that need to be monitored in the selected methodology(ies) or proposed approaches or as per mitigation measures from safeguarding principles assessment or as per feedback from stakeholder consultations would actually be collected during monitoring. Copy this table for each piece of data and parameter.) Relevant SDG Indicator SDG7 Indicator 7.2.1 – Renewable energy share in the total final energy consumption
Data / Parameter EGfacility,y Unit MWh Description Net electricity supplied by the proposed hydropower plant to the national grid Source of data Direct measurement at the project connection point Value(s) applied 62,389.8
Measurement methods Calculating by subtracting EGy, import from EGy,export. Data will be archived within the and procedures crediting period and 2 years after the end of the crediting period. Monitoring frequency Continuously measurement and at least monthly recording QA/QC procedures The uncertainty level of this data is low. The measurement/monitoring equipment should be complied with national standard and technology. These equipment and systems should be calibrated periodically accordance with the local regulation. Purpose of data For CERs calculation Additional comment The data will be provided in the CDM Monitoring Report of the Project
Relevant SDG Indicator SDG8 Indicator 8.5.1 – Average hourly earnings of female and male employees, by occupation, age and persons with disabilities Data / Parameter - Quality of employment - Quantitative employment and income generation Unit - Number of employees (for data on quantitative employment) - Income in VND (for data on income generation) Description The project will create employment opportunities, involving various jobs for technicians, qualified and unskilled workers. Labour contract is made in accordance with host country laws. The employees are provided with trainings and higher income compared to the average level of Son La province (1.483 million VND/month in 2018). Source of data Training records, labor contracts, salary records Value(s) applied 100% of the employees will be trained on technical aspects relating to the operation of the hydropower plant, 100% of the employees will be provided with labour contracts, social and medical insurance. 100% of the employees will be paid higher than the average monthly income per capita of Son La province in 2018 of 1.483 million VND. Measurement methods Checking documents and procedures Monitoring frequency Yearly
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QA/QC procedures Cross-checking by interviews Purpose of data Contribution of the project to provide full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value Additional comment N/A
Relevant SDG Indicator SDG13 – Climate action Data / Parameter Annual emission reductions
Unit tCO2e/year Description The project will generate renewable power, which will displace part of the electricity otherwise supplied by fossil fuel fired power plants, thus GHG emission reductions are achieved via the proposed project.
Source of data Parameter ERy in the CDM PDD Value(s) applied 58,006 Measurement methods Calculated according to ACM0002 version 20.0 and procedures Monitoring frequency Monthly QA/QC procedures Cross-checking with electricity data Purpose of data Direct emission reductions of the Project over the Baseline Additional comment Actual emission reductions will be provided in the CDM Monitoring Report of the Project
B.7.2. Sampling plan Not applicable
B.7.3. Other elements of monitoring plan Not applicable SECTION C. Duration and crediting period
C.1. Duration of project
C.1.1. Start date of project 28/10/2010 This the date when the first construction contract (contract for construction of tunnel) was signed.
C.1.2. Expected operational lifetime of project 39 years 0 months for the proposed project activity 38 years 0 months for Nam Hong 1 plant 39 years 0 months for Nam Hong 2 plant
C.2. Crediting period of project
C.2.1. Start date of crediting period 01/07/2019 (the second crediting period)
C.2.2. Total length of crediting period 07 years 0 months
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SECTION D. Safeguarding principles assessment
D.1. Analysis of social, economic and environmental impacts
Safeguarding Assessment Assessment of Justification Mitigation principles questions relevance to the measure (if project required) (Yes/potentially/ no) 1. Human rights a.The Project No Viet Nam ratified No mitigation Developer and the “International measure is Project shall respect Convention on the required for this internationally Elimination of all Form indicator. The proclaimed human of Racial project is rights and shall not be Discrimination” on implemented in complicit in violence 09/06/1981; compliance with or human rights “International regulations. abuses of any kind as Covenant on Civil and defined in the Political Rights” and Universal Declaration “International of Human Rights Covenant on Economic, Social and Cultural Rights” on 24/09/1982; “Convention on the Elimination of all Forms of Discrimination against Women” on 27/11/1981. Therefore, the project developer and the project do respect nationally and internationally proclaimed human rights and shall not be complicit in violence or human rights abuses of any kind b. The Project shall No Viet Nam ratified N/A not discriminate with “International regards to Convention on the participation and Elimination of all Form inclusion of Racial Discrimination” on 09/06/1981; “Convention on the Elimination of all Forms of Discrimination against Women” on
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27/11/1981. Therefore, the project will not discriminate with regards to participation and inclusion. 2. Gender Equality 1. The project shall No The project does not N/A and Women’s Rights not directly or reduce or put at risk indirectly reinforce women’s access to or control of resources, gender-based entitlements and discrimination and benefits because the shall not lead to/ project developer contribute to adverse comply with the Labor impacts on đển Code (Chapter X – Separate provision for equality and/ or the female employees). situation of women. Ref. Viet Nam Labor Specifically, this shall Code and policy include: statement by the project owner 1a.Sexual harassment No The project activity is to N/A and/or any forms of supply clean energy violence against from the hydropower plant to the national women – address the grid. Thus it does not multiple risks of involve any forms of gender-based violence against violence, including women. sexual exploitation or (Ref: Policy statement by the project owner) human trafficking 1b.Slavery, No The project developer N/A imprisonment, complies with physical and mental regulations of Viet Nam law. It does not involve drudgery, any form of slavery, punishment or imprisonment, physical coercion of women and mental drudgery, and girls punishment or coercion of women and girls. (Ref: Policy statement by the project owner) 1c. Restriction of No The project activity is to N/A women’s rights or generate electricity access to resources from renewable resources. Its (natural or economic) implementation follows the regulations of Viet Nam law and under management of People Committee. Thus, it does not involve in the restriction of women’s rights or access to
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resources (natural or economic). 1d.Recognise No The project does not N/A women’s ownership has any scope which rights regardless of needs to recognize the women’s ownership marital status – adopt rights. The project project measures replaces part of the where possible to electricity supplied by support to women’s fossil fuel fired power access to inherit and plants with hydropower plant. own land, homes, and other assets or natural resources. 2. The project shall apply the principles of non – discrimination, equal treatment, and equal pay for equal work, specifically: 2a.Where No The project involves N/A appropriate for the construction of one implementation of a hydropower plant. Trained labours are Project, paid, used, local people are volunteer work or engaged for the same. community No discrimination contributions will be either in gender or any organised to provide other forms is followed to engage local people. the conditions for equitable participation of men and women in the identified tasks/activities 2b.Introduce No The project owner N/A conditions that follows regulations of ensure the Labour Code of Viet Nam. Thus they always participation of ensures the women or men in participation of women project activities and and men in project benefits based on activities and benefits pregnancy, based on pregnancy, maternity/paternity maternity/paternity leave or marital status. leave, or marital status 2c.Ensure that these No The project developer N/A conditions do not does not limit the limit the access of access of women or men, as the case may
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women or men, as be, to project the case may be, to participation and project participation benefits as the project developer complies and benefits with Labour Code of Viet Nam. 3.The project shall No The project does not N/A refer to the country’s have any scope to apply national gender gender strategy as such. Although the strategy or project positively equivalent national contributes towards commitment to aid in the national mission for assessing gender empowerment of risks women through improvement of health and attaining vision for empowerment of women under Law on Gender Equality 2006 3. The project shall No The project leads to N/A Community Health, avoid community safe working condition Safety and Working exposure to and improvement in Conditions health as it will replace increased health risks coal as fuel with hydro and shall not which is clean and safe. adversely affect the Further, periodic health of the workers maintenance by and the community implementing agency ensure prevention of any unsafe working condition. A hydroproject general does not expose workers to unsafe or unhealthy work environments in terms of toxins or chemicals. In addition the project follows national safety rules under (Host Country) Law that covers work safety. Ref. Labour code of Vietnam, Article 7 4. Sub-principle 4.1 – No The project site are N/A Cultural Heritage, Sites of Cultural and located in mostly Indigenous Peoples, Historical Heritage unused land along Displacement and stream and rocky Does the project Area mountain without any Resettlement include sites, cultural or historical structures, or objects heritage. with historical, cultural, artistic, The project does not involve and is not traditional or complicit in the religious values or alteration, damage or intangible forms of removal of any critical
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culture (e.g., cultural heritage. knowledge, According to the EIA innovations, or report of Nam Hong hydropower project, practices)? the proposed project is The project shall not constructed far from incolve or be any cultural heritage complicit in the Ref. Environment alteration, damage or Impact Assessment Report removal of any sites, objects or structures of significant cultural heritage. Sub-principle 4.2 – No Most of land area N/A Forced Eviction and occupied by the project Displacement Does activity is unused land along stream and rocky the Project require or mountain, no cause the physical or agricultural and economic relocation cultivated land. There is of peoples only a very small area (temporary or of agricultural land occupied by this project permanent, full or activity. Therefore, the partial)? project does not require or cause the physical or economic relocation of local people. Sub-principle 4.3 – No Most of land area N/A Land Tenure and occupied by the project Other Rights activity is unused land along stream and rocky a.Does the Project mountain, no require any change to agricultural and land tenure cultivated land. There is arrangements and/or only a very small area other rights? of agricultural land occupied by this project activity. The compensation expenditure was validated and approved by the Provincial People’s Committee.
The implementation of b. For Projects the project only poses involving land-use impacts on the land tenure, are there any reclaimed for construction of the uncertainties with project. Project Owner regards land tenure, is authorized legally to access rights, usage use the land. rights or land ownership?
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Sub-principle 4.4- No Most of land area N/A Indigenous People occupied by the project Are indigenous activity is unused land along stream and rocky peoples present in or mountain, no within the area of agricultural and influence of the cultivated land. There is Project and/ or is the only a very small area Project located on of agricultural land occupied by this project land/ territory activity. claimed by indigenous people? 5. Corruption The project shall not No Vietnam has ratified N/A involve, be complicit the Convention against in or inadvertently Corruption. All permits that are required contribute to or legally have been reinforce corruption attained following or corrupt projects applicable laws 59 . Furthermore, the project is owned by a private equity company, and there is no governmental subsidy disbursed to the project. Therefore, the project does not involve and is not complicit in corruption and is not prone to entrusted power abuse nor corruption.
6. Sub-principle 6.1 – No a.All the employment N/A Economic Impacts Labour Rights in the project activity is a. The project in compliance with national labour and developer shall health and safety and ensure that there is other relevant laws.. no forced labour and Therefore, no forced that all employment labour is involved in the is in compliance with project. No child labour is involved. national labour and b. No child labour is occupational health involved in the project and safety laws, with activity. obligations under international law, and consistency with the principles and standards embodied
59 http://vi.wikipedia.org/wiki/C%C3%B4ng_%C6%B0%E1%BB%9Bc_ph%C3%B2ng_ch%E1%BB%91ng_th am_nh%C5%A9ng
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in the International Labour Organization fundamental conventions. Where these are contradictory and a breach of one or other cannot be avoided, then guidance shall be sought from Gold Standard b.Child labour, as defined by the ILO Minimum Age Convention is not allowed. Sub-principle 6.2 – No The main investment of N/A Negative Economic the project activity is Consequences the initial construction cost of the hydropower a.Do the project plant and it will be cause negatie covered by the project economic developer. Once consequences during commissioning, the and after project project will increase the industrial share in implementation,e.g., the economic structure for vulnerable and of Son La province and marginalised social lever the performance groups in targeted of traditional trade communities? villages as well as tourism industry and b.The project services inside the developer shall province. There are not consider economic expected any direct impacts and economic impact or demonstrate a potential risks to the local economy. consideration of potential risks to the local economy and how these have been taken into account in project design, implementation, operation and after the project. Particular focus shall be given to vulnerable and marginalized social groups in targeted
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communities and that benefits are socially-inclusive and sustainable 7. Climate and Energy Sub- principle 7.1- No The Project will reduce N/A Emissions the emission of 58,006 Will the Project tCO2e/year compared to the Baseline increase greenhouse Scenario as it replaces gas emissions over electricity generated the Baseline from fossil fuel fired Scenario? power plants with zero emissions electricity from the hydro power plant. Ref. GS-PDD, pages 2 Sub-principle 7.2 – No The Project’s purpose is N/A Energy Supply to supply clean energy Will the Project use from the hydro power plant to the national energy from a local grid. It does not use grid or power supply energy from a local grid (i.e., not connected or power supply or fuel to a national or resource that provides regional grid) or fuel for other local users. Ref. GS-PDD, pages 3 resource (such as wood, biomass) that provides for other local users? 8. Water Sub-principle 8.1 – No The proposed project Impact on Natural involves the Water patterns and construction of a run of river plant that does flows not alter the river flow. Will the Project affect In addition, this project the natural or pre- is small-scale project existing pattern of according to host watercourses, country regulation. It does not change the ground-water and/or natural water flow. the watershed(s) Beside, the dam is such as high seasonal designed with spillway flow variability, and sand discharge flooding potential, gate so that the minimum flow is lack of aquatic maintained after the connectivity or water dam, which guarantees scarcity? habitat quality, securing the minimum water depth for aquatic creature migration during the construction and operation. Ref: FSR
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Sub-principle 8.2 – No - During the N/A Erosion and/ or water construction period, body stability topsoil erosion may occur due to the a. Could the Project excavation activities. directly or indirectly However, the project cause additional owner will fill up the erosion and/or water excavated areas which body instability or are exploited for building materials as disrupt the natural soon as possible to pattern of erosion? minimize negative impacts. - When the project is commissioned, there are no excavation activities and the project proponents commit to conduct plantation around the project site to avoid erosion. - Periodic monitoring will be conducted by a qualified party to ensure re-plantation is sufficient. During the operational period, there are no excavation activities and the vegetation cover will be restored. Therefore, the soil erosion will be monitored and controlled. Besides, the formation of reservoir results in inundation of a part of natural land. However, the areas are small for small scale hydro projects and the major part of inundated land is uncultivated or hilly. Impacts are fully mitigated. Hence,the project regligibly affects the soil quality.
b.Is the Project's area No During the construction N/A of influence period, topsoil erosion susceptible to may occur due to the excavation activities. excessive erosion However, the project and/or water body owner will fill up the instability? excavated areas which are exploited for
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building materials as soon as possible to minimize negative impacts. - When the project is commissioned, there are no excavation activities and the project proponents commit to conduct plantation around the project site to avoid erosion. - Periodic monitoring will be conducted by a qualified party to ensure re-plantation is sufficient. During the operational period, there are no excavation activities and the vegetation cover will be restored. Therefore, the soil erosion will be monitored and controlled. Besides, the formation of reservoir results in inundation of a part of natural land. However, the areas are small for small scale hydro projects and the major part of inundated land is uncultivated or hilly. Impacts are fully mitigated. Hence,the project regligibly affects the soil quality. 9. Environment, Sub-principle 9.1 – No The project activity is to N/A Ecology and Land Use Landscape generate electricity Modification and Soil from hydro. It does not involve the use of land Does the Project and soil for production involve the use of of crops or other land and soil for products. Before the production of crops operation, the project or other products? site is located partly on agricultural land. All the households who cultivated on the land had been compensated satisfactorily. Sub- principle 9.2 – No The Project’s purpose is N/A Vulnerability to to supply clean energy natural disaster from the hydro power plant to the national
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Will the Project be grid. Therefore the susceptible to or lead Project is not to increased susceptible to and does not lead to increased vulnerability to wind, vulnerability to wind, earthquakes, earthquakes, subsidence, subsidence, landslides, landslides, erosion, erosion, flooding, flooding, drought or drought or other extreme climatic other extreme conditions. climatic conditions? Sub- principle 9.3 – No The Project’s purpose is N/A Genetic Resources to supply clean energy Could the Project and from the hydro power plant to the national the outside be grid. Therefore, the negatively impacted Project does not by the use of involve use of GMOs. genetically modified organisms or risk of GMOs (e.g., contamination, collection and/or harvesting, commercial development)? Sub- principle 9.4 – No Construction phase: N/A Release of pollutants The project is a hydro Could the Project power project, so the impact on air quality is potentially result in only temporary during the release of construction period pollutants to the and not significant. environment? Besides, the Project owner has applied the following measures: - Spraying water on the road and covering material trucks’ body to avoid dust. - Utilizing modern execution means to reduce exhaust gases and noise - Making no operation of noisy machinery during the rest time of local residents. - Restoring green cover around the project site to balance ratio O2/CO2 and evaporation. (Ref. EIA, page 46) Operation phase:
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The proposed project operates using water energy replaces other conventional souces of energy, and directly reducing emissions other than GHG such as SOx and NOx, which contributes to air quality improvement to a certain extent. Therefore, there is no gas pollutants emitted into the atmosphere during the operation. Sub- principle 9.5 – No The Project’s purpose is N/A Hazardous and Non- to supply clean energy hazardous waste from the hydro power plant to the national Will the Project grid. Therefore the involve the Project does not manufacture, trade, involve the release, and/ or use manufacture, trade, of hazardous and release, and/or use of hazardous and non- non-hazardous hazardous chemicals chemicals and/or and/or materials. materials? Sub- principle 9.6 – No The Project’s purpose is N/A Pesticides and to supply clean energy fertilizers from the hydro power plant to the national Will the Project grid. Therefore the involve the Project does not application of involve the application pesticides and/or of pesticides and/or fertilisers? fertilizers. Sub- principle 9.7 – No Most of land area N/A Harvesting of forests occupied by the project Will the Project activity is unused land along stream and rocky involve the mountain, with deep harvesting of forests? slope and very big rocks, there is limited species settled prior to the project activity. Therefore, the project does not involve the harvesting of forests. Sub- principle 9.8 – No The Project’s purpose is N/A Food to supply clean energy Does the Project from the hydro power plant to the national modify the quantity grid. Therefore the or nutritional quality Project does not
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of food available such modify the quantity or as through crop nutritional quality of regime alteration or food available such as through crop regime export or economic alteration or export or incentives? economic incentives. Sub- principle 9.9 – No The Project’s purpose is N/A Animal Husbandry to supply clean energy Will the Project from the hydro power plant to the national involve animal grid. Therefore the husbandry? Project does not involve animal husbandry. Sub- principle 9.10 – No The project is not N/A High Conservation located in an area value areas and within a high conservation value critical habitats area or within critical Does the project natural habitats. physically affect or Ref. EIA report, page alter largely intact or 38, 46 High Conservation Value (HCV) ecosystems, critical habitats, landscapes, key biodiversity areas or sites identified? Sub- principle 9.11 – No The physical location of N/A Endangered Species the project is described a. Are there any in Section A.4. above. There are no endangered species endangered species identified as identified as potentially potentially being being present the present within the project boundary. project boundary Ref. EIA report, page 36, 46 (including those that may rout through the area)? b. Does the project No The project activity is N/A potentially impact not expected either other areas where potentially impact other areas where endangered species endangered species may be present may be present through through transboundary transboundary affects. affects?
SECTION E. Local stakeholder consultation
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E.1. Solicitation of comments from stakeholders
The Gold Standard Procedures for the Renewal of a Crediting Period, Section II “Preparation of the revised project documentation” reads that “Project proponents shall discuss if and why there is or not a need to conduct a complementary stakeholder consultation for the renewal of the crediting period. Project proponents can choose to invite relevant stakeholders for comments electronically or over a physical meeting, but will be required to justify the same. To the extent possible, project proponents shall conduct the complementary consultation prior to the submission of the request for a renewal of crediting period.” In case of this project activity, it was registered and successfully validated and verified as a project under Gold Standard. And so far the operation of the plants has run smoothly without any technical problems or social safeguards problems. Nam Hong HPP has successfully validated and registrated as a project under Gold Standard in 2012 and the latest on site visit for the second GS verification in 2016, representatives of local authorities, NGOs and people also attended the meeting with Project Owner and DOE. The indigenous people were asked about their opinions and all confirmed their continued support to the implementation of the project activity. The continuous input/ grievance mechanisms for the project including comment books, telephone access and internet/ email access are always maintained by the project participants. To renew the second crediting period for the project activity, the project participants have invited stakeholders for comments electronically60. So far, the operation of the plants has run smoothly without any technical problems or social safeguards problems so the project participants have not got any negative comments for this project activity. Therefore, it is not necessary to conduct a physical complementary stakeholder consultation for the renewal of the crediting period of this project activity.
E.2. Summary of comments received Not applicable
E.3. Report on consideration of comments received Not applicable
60 https://eec.vn/en/blog/notice-of-renewal-of-crediting-period-for-nam-hong-hydropower-project-according-to-the-gold- standard-and-clean-development-mechanism-gs-cdm-item230.html
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Appendix 1. Contact information of project participants
Organization name Nam Hong Hydropower Investment & Construction Joint Stock Company Registration number with 5500427021 relevant authority Street/P.O. Box Lane 8, Chu Van Thinh street Building No. 234 City Son La State/Region Son La Postcode 10000 Country Vietnam Telephone + 84 22 3856160 Fax + 84 22 3858320 E-mail [email protected] Website N/A Contact person Hoang Van Hoan Title Director Salutation Mr Last name Hoan Middle name Van First name Hoang Department Mobile Direct fax Direct tel. Personal e-mail
Organization name Energy and Environement Consultancy Joint Stock Company (VNEEC) Registration number with 0102042143 relevant authority Street/P.O. Box No.48, Le Van Luong street Building Diamond Flower Tower City Ha Noi State/Region Ha Noi Postcode 10000 Country Vietnam Telephone + 84 4 22148810 Fax + 84 4 35579755 E-mail [email protected] Website www.eec.vn Contact person Dang Thi Hong Hanh Title Deputy Director Salutation Ms Last name Hanh
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Middle name Thi Hong First name Dang Department Mobile Direct fax Direct tel. Personal e-mail [email protected]
Organization name Vietnam Carbon Assets Ltd. Registration number with CH-02030336384 relevant authority Street/P.O. Box Technoarkstr.1 Building City Zurich State/Region Zurich Postcode Country Switzerland Telephone +41 43 501 35 50 Fax +41 43 501 35 99 E-mail [email protected] Website www.southpolecarbon.com Contact person Renat Alber Heuberger Title Chairman Salutation Mr Last name Heuberger Middle name Albert First name Renat Department Mobile Direct fax Direct tel. Personal e-mail [email protected]
Appendix 2. Summary of post registration design changes
Not applicable
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Revision History
Version Date Remarks 1.1 24 August 2017 Updated to include section A.8 on ‘gender sensitive’ requirements 1 10 July 2017 Initial adoption
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