CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1 Revision history of this document Version Date Description and reason of revision Number 01 21 January Initial adoption 2003 02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. • As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. 03 22 December • The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: “Energocor small-scale hydro bundled project in Armenia” 02/07/2009, Version 02 A.2. Description of the small-scale project activity: The proposed project activity involves implementation and operation of 5 small hydroelectric grid connected renewable energy projects with total capacity 6.81 MW. The SHPPs will be located Gegharkunik and Vayots Dzor regions of Armenia. The projects are promoted by Energocor LTD - the bundling agent for the project. The purpose of bundling the nine project activities is to reduce transaction costs and documentation preparation costs for each of the small scale power plants. The electricity generated by the small hydropower plants will be sold to the Armenian Electricity Network (AEN). The Table 1 shows the ownership, location capacity and annual generation of Small Hydropower Plants. SHPP name Location Ownership Installed Annual generation. mln capacity. MW kWh 1. Ayrk-1 SHPP Gegharkunik Lusakunk 0.361 1.212 region. irrigation LTD canal on Ayrk river 2. Ayrk-2 SHPP Gegharkunik Lusakunk 0.311 1.898 region. irrigation LTD canal on Ayrk river 3. Avazan SHPP Gegharkunik Lusakunk 0.291 1.83 region. Avazan LTD river 4. Erik SHPP Gegharkunik Erik SHPP 3.5 15 region. Getik LTD River 5. Jermuk-2 SHPP Vayots Dzor Jermuki 2.35 10.24 region. Arpa river Hydrotech LTD Total 6.81 30.180 Purpose of the project activity The main purpose of the project activity is generation of clean hydroelectric energy and contribution to climate change mitigation efforts. Contribution to sustainable development The project will generate renewable and clean electricity and thus, contributes to sustainable development which includes: 1. Social sustainability The project activity will create jobs opportunities in the area with very high unemployment level for skilled and unskilled labor during the construction and operation of the plant (about 50). 3 The implementation of the project will benefit the Armenia through development of additional sustainable generation capacity not dependant on the imported energy sources, which will add to the independence of the energy system of the Republic as well. Implementation of the project will also contribute to development of experience and intellectual capacity among the local construction workers that will go through a set of trainings, organized by the Project Host during the project implementation, which will help them to become a skilled work force in future as well. The trainings are not contractually considered. 2. Environmental sustainability The construction of the SHPPs will not affect the quality of the river water, as well as the well being of the local population. Moreover, the project activity will have a positive impact on the environment as it will displace part of electricity generated by the conventional power plants in the national grid, thus avoid environmental pollution caused by the burning of fossil fuel and lead to an increased sustainability in the power generation sector. Total expected CO2 emission reduction from the proposed project is estimated to the amount of about 94 000 tCO2 over the ten year crediting period. 3. Economic sustainability The implementation of the project will increase funds for municipality and state budget due to tax collection. The project implementation will also generate employment possibilities for the local population which lacks available workplaces in their region. During the project implementation locally produced equipment will be used which will benefit the renewable energy technology an intellectual capacity development in Armenia. The Project complies with the Energy Strategy of Republic of Armenia which promotes the development of new renewable energy technologies and capacities. In addition, implementation of the project will also contribute to the sustainable development of Armenia through reducing the dependence on imported energy carriers, such as natural gas, thereby reducing the outflow of capital from Armenia to other countries. A.3. Project participants: Name of Party involved (*) Private and/or public Kindly indicate if the Party ((host) indicates a host Party) entity(ies) involved wishes to be project participants (*) considered as project (as applicable) participant (Yes/No) Republic of Armenia (host) Private entity: Energocor LTD, the bundling agent Republic of Armenia (host) Private entity: Lusakunk LTD No Republic of Armenia (host) Private entity: Erik SHPP LTD No Republic of Armenia (host) Private entity: Jermuki No Hydrotech LTD Germany Private entity: EnBW Trading No GmbH (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. 4 A.4. Technical description of the small-scale project activity: 1. Ayrk-1 SHPP is planned for construction in Gegharkunik region of Armenia, on the irrigation canal on Ayrk River. The hydro-energy characteristics of “Ayrk”1 SHPP are as follows: • Gross head – 90,4 m • Designed outflow – 0,50 m3/sec. • Design capacity –0,361 MW • Average annual energy production – 1.212 million kWh • The number of units – 2 2. Ayrk-2 SHPP is planned for the construction on the irrigation channel of Ayrk river and will use the energy potential of water released from Ayrk-1 SHPP. The hydro-energy characteristics of Ayrk-2 SHPP are as follows: • Gross head –77,7 m • Designed outflow – 0,50 m3/sec. • Design capacity –0,311 MW • Average annual energy production – 1,47 million kWh • The number of units – 2 3. Avazan SHPP is planned for construction in Gegharkunik region on Avazan River. The hydro-energy characteristics of “Avazan”1-2 SHPPs are as follows: • Gross head – 72.8 m • Designed outflow – 0.5 m3/sec, • Design capacity – 0,291 MW, • Average annual energy generation – 1.83 million kWh, • The number of units – 2. 4. Erik SHPP is planned for construction in Gegharqunik region of Armenia on the Getik river. The hydro-energy characteristics of “Erik ” SHPPs are as follows: • Gross head – 102.3 m • Designed outflow – 3.0 m3/sec • Generation capacity – 3.5 MW • Average annual power generation – 15 million kWh • The number of units – 3. 5. Jermuk-2 SHPP is Small Hydropower Plant (SHPP) is planned for construction on Arpa River in Vayots Dzor region of Armenia. The main characteristics of the Jermuk-2 SHPP are: • Gross head – 81.95 m, • Design outflow – 4.8 m3/sec, • Generation capacity – 2.35 MW, • Average annual electric energy generation – 10.2 million kWh, • The number of units – 2. A.4.1. Location of the small-scale project activity: A.4.1.1. Host Party(ies): Republic of Armenia A.4.1.2. Region/State/Province etc.: Ayrk 1-2 SHPPs - Gegharkunik Marz Avazan SHPP - Gegharkunik Marz 5 Erik SHPP - Gegharkunik Marz Jermuk-2 SHPP – Vayots Dzor Marz A.4.1.3. City/Town/Community etc: Ayrk 1-2 SHPPs – Vardenis community Avazan SHPP - Avazan village Erik SHPP – Martuni village Jermuk-2 SHPP – Jermuk City A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : Ayrk-1,2 and Avazan SHPPs Erik SHPP 6 Jermuk SHPP 7 A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: The project activity utilizes the hydro potential of for power generation and exports the generated power to the grid. According to small-scale CDM modalities the project activity falls under Type – I – Renewable Energy Projects and Category I-D – Grid connected renewable electricity generation. The project uses run-of-river hydropower technology which converts mechanical energy available in the water flow into electrical energy using hydro turbines and generators. This kind of technology is standard for the small scale hydropower and widely used in the world for many years The equipment used in the project will be developed and manufactured locally as well as imported from China. A.4.3 Estimated amount of emission reductions over the chosen crediting period: Table A4. Ayrk-1 SHPP Year Estimation of emission reductions (tones of CO2) 01/09/2009-30/09/2010 377,33 8 01/09/2010-30/09/2011 377,33 01/09/2011-30/09/2012 377,33 01/09/2012-30/09/2013 377,33 01/09/2013-30/09/2014 377,33 01/09/2014-30/09/2015 377,33 01/09/2015-30/09/2016 377,33 01/09/2016-30/09/2017 377,33 01/09/2017-30/09/2018 377,33 01/09/2017-30/09/2019 377,33 Total estimated reductions (tonnes of CO2) 3773,3 Total number of crediting years 10 Annual average over the crediting period 377,33 of estimated reductions (tonnes of CO2) Table A5.