PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03.1 - in effect as of: 28 July 2006 CONTENTS A. General description of project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 2 SECTION A. General description of project activity A.1 Title of the project activity : Huadian Laizhou Wind Farm Project Version 01 Date: March 11, 2008 A.2. Description of the project activity : Huadian Laizhou Wind Farm Project (hereinafter referred to as the proposed project) is located in the southwest of Hutouya Town, Laizhou City, Shandong Province, P.R.China. It is a grid-connected renewable energy project to generate zero-emission electricity by using advanced wind power generation technology to avoid CO 2 emissions from the business-as-usual scenario of electricity generation. The construction and operation of the proposed project will be implemented by Huadian Power International CO., LTD. The proposed project is to install 27 sets of wind turbine with a unit capacity of 1500kW, providing a total installed capacity of 40.5MW. The proposed project is expected to deliver 77,320 MWh electricity annually to the North China Grid (NCG), transmitted through the Shandong Grid, with an annual average available operating hour estimated as 1909.2h. By providing electricity equivalent to the net generation of the project activity that would be sold to the North China Grid which is currently dominated by fossil fuel , an annual CO 2 emission reduction of approximately 83,160 tCO 2e is expected to be achieved. The proposed project will not only provide renewable electricity to grid but also contribute to sustainable development of the host country by means of: Providing reliable, zero-emitting renewable energy to the North China Grid Contributing to local economic development through employment creation Decrease the GHG emission by reducing the electricity generation from the fossil-fuel fired power plants, particularly the emission of SO x, NO x and dust. A.3. Project participants : >> The parties involved in the project are shown in Table A-1: Table A-1 Project participants Name of Party involved Private and/or public entity(ies) Kindly indicate if the Party (*)((host) indicates a host project participants (*) (as involved wishes to be considered Party) applicable) as project participant (Yes/No) P. R. China (host) Huadian Power International No CO., LTD Germany KfW No See Annex 1 for details A.4. Technical description of the project activity: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 3 A.4.1. Location of the project activity : A.4.1.1. Host Party (ies): >> P. R. China A.4.1.2. Region/State/Province etc.: >> Shandong Province A.4.1.3. City/Town/Community etc: >> Hutouya Town, Laizhou City A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The proposed project is located in the southwest of Hutouya Town, Laizhou City, Shandong Province, P.R.China. Laizhou City is located in the northwest of Jiaodong peninsula. The exact location is at the north latitude of 37°10′24-37°11 ′31N and the east longitude of 119°48′20-119°50 ′06E. Figure A.1 illustrates the location of the project. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 4 Huadian Laizhou Wind Farm Project Site Figure A.1 The location of Huadian Laizhou Wind Farm Project A.4.2. Category(ies) of project activity : The proposed project falls into: Sectoral Scope 1: energy industries (renewable - / non-renewable sources) Project Activity: Electricity generation from wind power PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 5 A.4.3. Technology to be employed by the project activity : The proposed project is to install 27 sets of wind turbine with a capacity of 1500kW per unit, adding up to a total installed capacity of 40.5MW. Theses turbines are domestically manufactured by Sinovel Wind Co.Ltd, which will be arranged according to the wind resource conditions as well as the geographical characteristics of the site. Table A-2 Turbine specifications Specification of Wind Turbine Rotor Diameter 77.4 m Area swept 4657 m 2 Number of blades 3 Rotor Speed 9.7-19 rpm Operational data Cut-in wind speed 3.0 m/s Nominal wind speed 11 m/s Cut-out wind speed 20 m/s Generator Nominal output 1500 kW Rated voltage 690 V The average wind speed in the height of 70m is 6.6m/s and the intensity of wind power is 342.6W/m 2. The wind direction is relatively stable in the whole year, guaranteeing high turbine operation efficiency. The proposed project will adopt ‘Unit Connection’ method. Each wind turbine is connected with one 0.69/35kV transformer by a 35kV cable line, then linked through 35kV cable lines into one 110/35kV boosting transformer substation, The generated electricity will be transmitted through local Lu Su 220kV transformer substation to the Shandong Grid and finally to the North China Grid. The proposed project activity will provide training to the construction team. The staff of the project entity will receive training in the operation of the wind farm. All technologies utilized in the project activity are domestic technologies and no technology will be transferred to China through this project activity. A.4.4 Estimated amount of emission reductions over the chosen crediting period : >> 7×3 year renewable crediting period is chosen for the proposed project. Annual emission reduction of the proposed project is estimated to be 83,160 tCO 2e and the total reduction will be 582,120 tCO 2e during the first crediting period (from January 1 st , 2009 to December 31 st , 2015). The estimation of the emission reductions in the crediting period is presented in Table A-3. Table A-3 Estimation of emission reduction over the first crediting period Annual estimation of emission Years reductions in tones of CO 2 e 2009 83,160 2010 83,160 2011 83,160 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 6 2012 83,160 2013 83,160 2014 83,160 2015 83,160 Total estimated reductions 582,120 (tones of CO 2 e) Total number of crediting years in 1 st crediting 7 period Annual average over the crediting period of 83,160 estimated reductions (tones of CO 2e) A.4.5. Public funding of the project activity : >> No public funding from Annex I Parties is involved in this project activity. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline methodology applied to the project activity : >> 1. ACM0002: “Consolidated baseline methodology for grid-connected electricity generation from renewable sources”, version 07, EB36; 2. “Tool to calculate the emission factor for an electricity system ”, version 01, EB35; 3. “Tool for the demonstration and assessment of additionality ”, version 04, EB36; For more information regarding the methodology, please refer to the link: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html B.2 Justification of the choice of the methodology and why it is applicable to the project activity: >> As a grid-connected wind farm project, the proposed project meets all the applicability criteria of ACM0002 as following: The project is a new wind power plant with the electricity capacity additions in Grid; The project does not involve switching from fossil fuels to a renewable energy source at the proposed site; The geographic and system boundaries for the electricity grid (NCG) to which the proposed project will be connected can be clearly identified and information on the characteristics of the grid is available. Therefore, ACM0002 is applicable to the proposed project. B.3. Description of how the sources and gases included in the project boundary >> The spatial extent of the project boundary includes the project site and all power plants connected physically to the North China Grid. The electricity system of the proposed project is the North China Grid which covers two cities, three PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Board page 7 provinces and one autonomous region (Beijing Municipality, Tianjin Municipality, Hebei Province, Shanxi Province, Shandong Province and Inner Mongolia Autonomous Region)1. According to the methodology ACM0002, the emission source and the category of GHG are described as in table B-1: Table B-1 The emission source and the category of GHG Source Gas Included? Justification / Explanation CO 2 emissions CO 2 Yes Main emission source from the North Minor emission source. Excluded for CH No China Grid’s 4 simplification. This is conservative . electricity generation in Baseline fossil fuel fired power plants Minor emission source. Excluded for N O No that are 2 simplification. This is conservative . displaced due to the project activity. Excluded by the methodology for wind farm CO No 2 projects. Project The proposed Excluded by the methodology for wind farm Activity CH No project 4 projects . Excluded by the methodology for wind farm N O No 2 projects . B.4 . Description of how the baseline scenario is identified and description of the identified baseline scenario: 1. Identification of alternatives to the project activity consistent with current laws and regulations Under the current circumstances of the Chinese power sector there are four plausible alternatives to the project activity.