VERIFICATION REPORT for the Gold Standard Project Activity

Transcription

1 VERIFICATION REPORT for the Gold Standard Project Activity North Luzon Renewable Energy Corp. 81MW Caparispisan Wind Energy Project (GS2691) in Philippines (Gold Standard ID Number GS 2691) Monitoring Period: 17/07/2015 to 25/04/2017(inclusive both dates) Report No: CCIPL 463/GS/VER/81MWCWEP/ Revision number: 04 Report Date: 08/11/2017 Carbon Check (India) Private Ltd. Regd. Off: 2071/38, 2 nd Floor, Naiwala, Karol Bagh, New Delhi Corporate off: G 49 & 50, 3 rd Floor, Sector 3, NOIDA (Uttar Pradesh) FM 4.9 Verification Report Template VVS GS N CCIPL 463/GS/VER/81MWCWEP/

2 Team leader Acting/trainee Team Leader Local Expert Team Member (Auditor) Technical Expert Acting/TraineeTec h. Expert Trainee Auditor Technical Reviewer Expert to TR Trainee TR I. PROJECT DATA Project title: Registration No. / Date: Monitoring period: 81MW CAPARISPISAN WIND ENERGY PROJECT GS2691 Scale: Large 17/07/2015to 25/04/2017 Methodology: ACM0002 (Version 15.0) Final Monitoring Report: Average emission reductions: GHG reducing measure/technology: Version 02.2, 07/11/2017 Estimated: 272,555 tco2e (for the corresponding monitoring period) Monitoring Period Number: 1 Sectoral Scope/Technical Area: Verified: 1/ ,127 tco2e (for the monitoring period) The baseline scenario for the project activity is grid connected electricity generation in the Philippine Power Grid, which is identical to the scenario existing prior to the start of implementation of the project activity. The project activity displaces electricity generation in the baseline. Party Philippines II. VERIFICATION TEAM Project participants North Luzon Renewable Energy Corp.(formerly Northern Luzon UPC Asia Corporation) Party considered a project participant No Contract party Verification Team Role Full name Affiliation Appoint ed for Sectoral Scopes (Technic al Areas) Vikash Kumar Singh India 1.2,3.1, 4.1,13.1,13.2 Alan Silayan Philippines -- X Amit Anand India 1.2, 3.1, 8.1, 13.1, 14.1 X X X III. VERIFICATION REPORT Verification Phases and Status: Desk Review Follow up interviews, On Site Assessment Resolution of outstanding issues Corrective Actions / Clarifications Requested FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

3 Full Approval and Submission for Issuance Rejected Final Approval Date Approval Distribution Date: By: Amit Anand No distribution without permission from the Client or responsible organizational unit Limited Distribution Unrestricted distribution FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

4 Abbreviations BAU CA CDM CER CAR CCIPL CDM CER CL CO 2 CO 2e DNH DOE DVR EB EF FA FAR FVR GS GSC GHG GWh IPCC MWh MRR OSV QC/QA Registry SD TA TR UNFCCC VER VVS Business As Usual Corrective Action / Clarification Action Clean Development Mechanism Certified Emission Reduction Corrective Action Request Carbon Check (India) Private Ltd. Clean Development Mechanism Certified Emission Reduction Clarification Request Carbon Dioxide Carbon Dioxide Equivalent Do No Harm Designated Operational Entities Draft Validation Report CDM Executive Board Emission Factor Final Approval Forward Action Request Final validation Report Gold Standard Global Stakeholder Consultation Greenhouse gas(es) Giga Watt Hour Intergovernmental Panel on Climate Change Mega Watt Hour Monthly Reading Records On Site Visit Quality control/quality assurance Gold Standard/Markit Registry Sustainable Development Technical Area Technical Review United Nations Framework Convention on Climate Change Verified Emission Reductions Validation and Verification Standard FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

5 Verification Opinion summary Carbon Check (India) Private Ltd. (CCIPL) has performed 1 st periodic verification of the GS project 81MW CAPARISPISAN WIND ENERGY PROJECT having GS registry number GS 2691 for the period 17/07/2015 to 25/04/2017. The verification team assigned by the DOE concludes that the GS Project Activity as described in the registered GS PDD and the monitoring report (version 02.2, dated 07/11/2017), meets all relevant requirements of the Gold Standard, UNFCCC for CDM project activities including article 12 of the Kyoto Protocol and paragraph 56 and 62 of CDM M & P, the modalities and procedures for CDM (Marrakesh Accords) and the subsequent decisions by the COP/MOP and CDM Executive Board. The verification has been conducted in-line with the UNFCCC VVS requirements version 09.0 as well as the Gold Standard Version 2.2. Verification methodology and process The Verification team confirms the contractual relationship signed on the 03/11/2016 between the DOE, Carbon Check (India) Private Ltd. and the Project Participant, (North Luzon Renewable Energy Corp. The team assigned to the verification meets the Carbon Check (India) Private Ltd. internal procedures including the UNFCCC requirements for the team composition and competence. CCIPL has conducted a thorough contract review as per UNFCCC and Carbon Check procedures and requirements. The verification has been performed as per the requirements described in the Gold Standard Requirements; Gold Standard Toolkit and VVS and constitutes the review and completion of the following steps: - Reviewing the approved PDD including the monitoring plan and the corresponding validation report and the Gold Standard Passport, the Sustainability Matrix and monitoring data; - Confirm the monitoring report has been made available to the Gold Standard Registry - Desk review of the MR, previous verification report and other relevant documents including documents related to the projects activities in emission reductions - Review of the applied monitoring methodology; ACM0002: Grid-connected electricity generation from renewable sources (Version 15.0); - Review of any CMP and EB decisions, clarifications and guidance and the Gold Standard Secretariat; - On-site assessment (17/07/2017 to 18/07/2017) - Resolution of CARs and CLs raised during verification - Issuance of Verification Report In Carbon Check s opinion the project activity was correctly implemented according to selected monitoring methodology monitoring plan and the approved PDD. The monitoring equipment was installed, calibrated and maintained in a proper manner, while collected monitoring data allowed for the verification of the amount of achieved GHG emission reductions. Through the review and on site visit the verification team confirms that the project has resulted in the 238,127 tco2e emission reductions during the 1 st monitoring period: Year Emission Reduction (tco2) 2015 (17/07/ /12/2015) 53, (26/12/ /12/2016) 114, (26/12/ /04/2017) 69,750 Total 238,127 The GHG emission reductions and non-ghg parameters were correctly calculated/monitored on the basis of the approved monitoring methodology Grid-connected electricity generation from renewable sources (Version 15.0) and the monitoring plan contained in the Project Design Document. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

6 TABLE OF CONTENTS 1.1 Introduction Objective Scope Project Activity Description 8 2. METHODOLOGY Desk review Background documents: On-site visit and follow-up interviews with project stakeholders Resolution of outstanding issues Internal quality control Verification Team VERIFICATION FINDINGS Project implementation The actual operation of the CDM project activity Compliance of the monitoring plan with the monitoring methodology including applicable tool(s) Compliance of the Actual monitoring with monitoring plan in the PDD Monitored parameters Monitoring responsibility Deviation from and/or Revision of the registered monitoring plan Assessment of data and calculation of greenhouse gas emission reductions Assessment of actual emission reductions with the estimate emission reductions in PDD Compliance with the sustainability monitoring plan Monitoring of Gold Standard Sustainability Indicators Issues remaining from the previous verification period or during validation Quality and Management System Assurance 30 APPENDIX A APPENDIX B FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

7 Introduction The Project Participant, North Luzon Renewable Energy Corp., has commissioned the Carbon Check (India) Private Ltd. to perform an independent verification of the Project Activity 81MW Caparispisan Wind Energy Project (GS2691) in Philippines (hereafter referred to as project activity ). This report summarises the findings of the verification of the project, performed on the basis of Gold Standard requirements and toolkit and paragraph 62 of the CDM M & P, as well as criteria given to provide for consistent project operations, monitoring and reporting and the subsequent decisions by the CDM Executive Board and Gold Standard Secretariat. Verification is required for all registered GS project activities intending to confirm their achieved emission reductions and proceed with request for issuance of VERs. This report contains the findings and resolutions from the verification and a certification statement for the certified emission reductions. 1.2 Objective Verification is the periodic independent review and ex post determination of both quantitative and qualitative information by a Designated Operational Entity (DOE) of the monitored reductions in GHG emissions that have occurred as a result of the registered GS project activity during a defined monitoring period. Certification is the written assurance by a DOE that, during a specific period in time, a project activity achieved the emission reductions as verified. The objective of this verification was to verify and certify emission reductions reported for the 81MW Caparispisan Wind Energy Project (GS2691) in Philippines for the period 17/07/2015 to 25/04/2017. The purpose of verification is to review the monitoring results and verify that the monitoring methodology was implemented according to the monitoring plan and monitoring data, and used to confirm the reductions in anthropogenic emissions by sources, is sufficient, definitive and presented in a concise and transparent manner. Other non-ghg parameters shall also be assessed as per the requirement of GS. Verification of emission reductions for Gold Standard crediting is only for eligible gases. In particular the, monitoring plan, monitoring report and the project s compliance with relevant UNFCCC and host Party criteria are verified in order to confirm that the project has been implemented in accordance with the previously registered project design and conservative assumptions, as documented. It is also to confirm that the monitoring plan is in compliance with the registered PDD and approved monitoring methodology. 1.3 Scope The scope of the verification is: To verify the project implementation and operation with respect to the registered PDD or approved revised PDD To verify the implemented monitoring plan with the registered PDD or approved revised PDD and applied baseline and monitoring methodology. To verify that the actual monitoring systems and procedures are in compliance with the monitoring systems and procedures described in the monitoring plan. To evaluate the GHG emission reduction data / and express a conclusion with a reasonable level of assurance about whether the reported GHG emission reduction data is free from material misstatement. To verify that reported GHG emission data and other non-ghg parameters as per the requirement of GS is sufficiently supported by evidence. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

8 Carbon Check s scope of verification as a third party verifier is to verify project s emission reductions and sustainable development impacts against the requirements set out by the Gold Standard. The verification shall ensure that the reported emission reductions are complete and accurate in order to be certified. The verification comprises a review of the monitoring report over the monitoring period from 17/07/2015 to 25/04/2017 and based on the registered PDD in part of the monitoring parameters and monitoring plan, emission reduction calculation spreadsheet, monitoring methodology and all related evidence provided by project participant. On-site visit and stakeholders interviews are also performed as part of the verification process. 1.4 Project Activity Description The project involves implementation and operation of 27 WTGs of 3 MW individual capacity totaling to a capacity of 81 MW; as verified during the OSV and review of registered PDD. The project is developed by North Luzon Renewable Energy Corp (formerly Northern Luzon UPC Asia Corporation) or UPC. The implemented project is located in Pagudpud, Ilocos Norte on the northern tip of Luzon, Philippines. The purpose of the project is to utilize wind resources for electricity generation through the construction of a wind farm. The electricity generated from the project is being supplied to the National Grid Corporation of the Philippines (NGCP) via 62 km 115kV transmission line from the farm to the NGCP substation in Laoag City. The metering /measurement of electricity generated from the project is being done at the NGCP substation in Laoag. Verification team has visited the NGCP substation in Laoag City and found that there are two meters installed at the substation and the same is under the custody of National Grid Corporation of the Philippines (NGCP). As verified during the on site inspection, the meters are calibrated annually. The calibration is being done by the testing division of National Grid Corporation of the Philippines (NGCP). The GHG offset during this monitoring period are 238,127 tco2e. All 27 WTGs of the project were commissioned on 11/11/2014, checked and confirmed by the verification team by reviewing commissioning certificates /13/. Verification team confirms that all the turbines were operational during this monitoring period. The creding period of the project starts was from 09/11/2014 and the same has been verified from the regsistered PDD and Validation report. However, the crediting period has been forward shifted to 17/07/2015 as per directive (dated 06/11/2017) from Gold Standard which proposes to postpone the start of the crediting period to 17/07/2015 (i.e. two years prior to the site visit date, which is 17/07/2017) as a solution to situation where the first mandatory site visit was not conducted within 2 years of start of crediting period. As per the validation report the expected operational lifetime of the project is 20 years. The verification team confirm that the project is implemented as per the registered PDD /B16/. Apart from reduction in greenhouse gases, the project offering co-benefit to the commuinity. There is no change observed from the registered monitoring plan of the registered PDD /B16/. The verification team has verified the following websites & confirmed that there are no double counting: 1. UNFCCC website: 2. Voluntary Carbon Standard website: 3. Gold Standard website: 4. Joint Crediting Mechanism website: FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

9 Web-research of verification team reveals, no other REC registry for the country where the project is located i.e. Philippines. Furthermore, a declaration has been provided in MR by the PP which explicitly confirms that project is not under any REC mechanism. 2. METHODOLOGY The verification consists of the following four phases: 1. Completeness check of the Emission Reductions Monitoring report and Gold Standard Sustainability Monitoring Report, and submission to the Gold Standard Registry and Project Administration System; 2. Review of project documentation (monitoring plan, monitoring report, monitoring methodology, project design document, applicable tools in particular attention to the frequency of measurements, quality of metering equipment s including calibration requirements, QA/QC procedures and other relevant documents and regulations); 3. On-site visit (including follow-up interviews with project stakeholders, when deemed necessary). The on-site assignment includes the following; An assignment of implementation and operation of project activity with respect to registered PDD or approved revised PDD; Review of information flows for generating, aggregating and reporting the monitoring parameters; Interview with relevant personals to determine whether the operational and data collection procedures are implemented and in accordance with monitoring plan of the PDD; Cross check of information and data provided in the monitoring report with plant logbooks, inventories, purchase records or similar data sources; Check of monitoring equipment s, calibration frequency and monitoring practice inline with methodology and PDD; Review of assumptions made in calculating the emission reduction; Implementation of QA/QC procedure in-line with the PDD and methodology requirement. 4. Resolution of outstanding issues and the issuance of the final Verification report and Certification statement. The following sections outline each step in more detail. Duration of Verification: Signing of Letter of Engagement: 03/11/2016 On Site Visit 17/07/2017 to 18/07/2017 Issuance of DVR 28/07/2017 Reporting/Calculations/Technical Review and QA/QC-15/08/2017 & 08/11/ Desk review During the desk review, Carbon Check applied the standard auditing techniques to assess the quality of information provided. The following table outlines the documentation reviewed during the verification: No. /01/ /02/ Title a) Monitoring Report version 01, dated 02/06/2017 and Monitoring Report version 02, dated 02/08/2017 b) Monitoring Report version 02.1, dated 15/09/2017 c) Monitoring Report version 02.2, dated 07/11/2017 a) Emission Reduction spread-sheet corresponding to /01-a/ b) Emission Reduction spread-sheet corresponding to /01-b/ c) Emission Reduction spread-sheet corresponding to /01-c/ FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

10 /03/ Data source (downloaded password protected excel sheet from National Grid Corporation of The Philippines) for the parameter Quantity of net electricity generation supplied by the project plant/unit to the grid in year y : The quantity of electricity supplied by the project/unit to the grid (EGexport,y); and The quantity of electricity delivered to the project plant/unit from the grid (EGimport,y). /04/ 1. Copy of invoice raised by North Luzon Renewable Energy Corp. to National Grid Corporation of The Philippines for each month during the monitoring period to cross check the data of the quantity of electricity supplied by the project/unit to the grid (EGexport,y); 2. Sample Copy of invoice raised by National Grid Corporation of The Philippines to North Luzon Renewable Energy Corp during the monitoring period to cross check the data of The quantity of electricity delivered to the project plant/unit from the grid (EGimport,y) 1. Evidence of Specification (including accuracy class) of electricity meter used to monitor electricity export and import. 2. Records of annual calibration of electricity meter used to monitor electricity export and import. /05/ a) Calibration certificate dated 04/09/2014 for meter S. No and dated Meters were again tested on 09/10/2014 as a part of precommissioning. b) Calibration certificate dated 30/07/2015 for meter S. No and S. No c) Calibration certificate dated 01/10/2015 for meter S. No and S. No The old meter S. No was replaced by Meter S. No which was pre-calibrated on 07/08/2015 (certificated attached) d) Calibration certificate dated 21/09/2016 for meter S. No and S. No /06/ Data source of the parameter Water quality parameter- sediment loads and conventional water quality parameters 1. Water quality monitoring report for the Creek and River Systems prepared by CRL Environmental Corporation for North Luzon Renewable Energy Corp. report dated 12 th August SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 1, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 2, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 3, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 4, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 1, ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) First Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) Second Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) First Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) Second Semi-annual FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

11 /07/ /08/ /09/ /10/ /11/ /12/ Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) Second Semi-annual Report 2014 Data source of the parameter Precaution measures to minimize impact towards plants and birds : 1. Wind Farm Turbine Collision and Mortality Risk Assessment for Birds and Bats Reeprt (2017) prepared by group of experts based on a comprehensive survey and analysis done for The North Luzon Renewable Energy Corp. 2. Avifauna and Volant Mammals Study done by GEOSPHERE Technologies Inc. in 2013 Data source of the parameter Solid/liquid wastes from construction and operation. 1. Hazardous waste generator registration certificate dated 06/12/2016 issued by Environmental Management Bureau for SIEMENS INC (Caparispisan Wind Farm). 2. Certificate of Treatment issued by Environmental Management Bureau dated 17/12/2016 which certifies treatment & disposal of oil contaminated materials (1.2 Tons) by ALL WASTE SERVICES INC for SIEMENS. 3. Self monitoring report prepared by North Luzon Renewable Energy Corp. and submitted to Environmental Management Bureau for Quarter which specifies quantity of Hazardous waste generated and treated. Data source of the parameter Quality of employment Training of staff 1. HUMAN RESOURCES MANUAL for training & development of North Luzon Renewable Energy Corp. 2. Office Memorandum sent to all employees for the implementation of procedure ( manual) of training & development of North Luzon Renewable Energy Corp HR 7 -C Exhibit 1 Training Request Form.xlsx- Template document for identifying training need and request HR 7-C_Exhibit 2 Training Evaluation Report- Template document for evaluation of training. 5. Training Calendar for Training register (2015 onwards until April 2017 covering the entire monitoring period) contains information on topic of training, dates, attendees, hours of training etc. Data source of the parameter Quantitative employment and income generation- Number of job opportunities created/income generation : 1. Link of public data about minimum local salary 2. Summary on latest minimum wage requirement issued by Department of labor and employment (National Wages and Productivity Commission). 3. Template Employment Agreement of North Luzon Renewable Energy Corp. (annex A of this template agreement specifies the minimum wages for the contracted personnel. 4. Declaration by Human Resource Manager of North Luzon Renewable Energy Corp. on the number of direct and indirect employment created by the project during construction and operations of the project. Data source of the parameter Technology transfer and technological self-reliance-number of trainings and/or seminars, and/or site visits for masons and/or external audience: 1. Training register for external stakeholders (2014 onwards until April 2017 covering the entire monitoring period) contains information on topic of training, dates, attendees, venue etc. 1. North Luzon Renewable Energy Corp. s Policy on Community Grievance including the exhibits: CSR 2_Exhibit 1 Special Power of Attorney CSR 2_Exhibit 2 Community Grievance Report Form CSR 2_Exhibit 3 Release Waiver and Quitclaim FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

12 2. Grievance Register (from construction till April 2017) of North Luzon Renewable Energy Corp. which includes summary of grievance received/recorded during the monitoring period including the action taken by the project proponent. 3. Sample Grievance handled during the monitoring report includes the report on the Grievance, redressal process, result and communication and compensation. /13/ Commissioning certificates of all 27 WTGs of the project. directive (dated 06/11/2017) from Gold Standard which proposes to postpone the start of the crediting period to 17/07/2015 (i.e. two years prior to the site visit date, which is 17/07/2017) /14/ as a solution to situation where the first mandatory site visit was not conducted within 2 years of start of crediting period. 2.2 Background documents: Ref no. /B01/ /B02/ /B03/ /B04/ /B05/ /B06/ /B07/ Reference Document a) CDM Validation and Verification Standard version 09 b) CDM Project Standard version 09 a) Gold Standard Toolkit Version 2.2 dated 01/06/2012 b) Gold Standard Requirements Version 2.2 dated 01/06/2012 Applied baseline and monitoring methodology, ACM0002 (Version ): Gridconnected electricity generation from renewable sources a) Guideline: Completing the Monitoring Report. b) Template of Monitoring Report available on UNFCCC website. UNFCCC website ( Markit Project Registry page for project titled 81MW CAPARISPISAN WIND ENERGY PROJECT (GS 2691) Registered PDD Version 1.4 dated 05/05/2016, GS Passport version 1.5 dated 25/07/2016 and corresponding validation report. 2.3 On-site visit and follow-up interviews with project stakeholders An OSV was performed by the members of the validation/verification team of Carbon Check from 17/07/2017 to 18/07/2017 at CAPARISPISAN wind power site, Pagudpud, Ilocos Norte on the northern tip of Luzon, Philippines and it aims to the following: i. An assessment of the implementation and operation of the registered project activity as per the registered PDD or any approved revised PDD; ii. A review of information flows for generating, aggregating and reporting the monitoring parameters; iii. Interviews with relevant personnel to determine whether the operational and data collection procedures are implemented in accordance with the monitoring plan in the PDD; iv. A cross check between information provided in the monitoring report and data from other sources such as plant logbooks, inventories, purchase records or similar data sources; v. A check of the monitoring equipment including calibration performance and observations of monitoring practices against the requirements of the PDD and the selected methodology and corresponding tool(s), where applicable; vi. A review of calculations and assumptions made in determining the GHG data and emission reductions; vii. An identification of quality control and quality assurance procedures in place to prevent or identify and correct any errors or omissions in the reported monitoring parameters. viii. Verification of the monitoring of sustainable development indicators The project representatives and stakeholders interviewed: Name Organization Topic /i/ Pham Tra Giang Consultant Discussion on project design FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

13 /ii/ /iii/ /iv/ /v/ /vi/ /vii/ MARIA MELIZA T. TUBA-PRINCIPE Arnulfo Almeniana Elec Costales Heinrich Sarian Lea Iglesias Abrumel Loong- Mananes /viii/ Archie Pedronan /ix/ Raymond Sesuca North Luzon Renewable Energy Corp. North Luzon Renewable Energy Corp. North Luzon Renewable Energy Corp. North Luzon Renewable Energy Corp. North Luzon Renewable Energy Corp. North Luzon Renewable Energy Corp. Stakeholder North Luzon Renewable Energy Corp. /x/ Cleo Abian Stakeholder /xi/ Alwin Reyes /xii/ Ronald Samiano /xiii/ John Paulo Pedronan /xiv/ Jovanie Domingo Stakeholder Stakeholder Stakeholder Stakeholder (implementation and operation) and monitoring data. Discussion on the contents of the Monitoring Report Discussion on DNH, SD monitoring and Grievance Mechanism Handling of Grievances Discussion on DNH, SD monitoring and Grievance Mechanism Handling of Grievances Discussion on project design (implementation and operation) and monitoring data. Discussion on DNH, SD monitoring and Grievance Mechanism Handling of Grievances Discussion on project design (implementation and operation) and monitoring data. Discussion on DNH, SD monitoring and Grievance Mechanism Handling of Grievances Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Discussion on DNH, SD monitoring and Grievance Mechanism Handling of Grievances Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Feedback on the project, employment generation, training imparted to community, complain and Grievance process, benefits to people Through the above-mentioned activities the verification team confirmed the following Gold Standard project aspects in relation to the project activity: The implementation and operation of the project activity is as described in the monitoring plan in the registered PDD. The operational and data collection procedures are implemented as per the monitoring plan in the PDD FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

14 The information flow for generating, grouping and reporting of the monitored parameters Procedures to avoid double counting are in place. 2.4 Resolution of outstanding issues The objective of this phase of the verification is to resolve any outstanding issues (issues that require further elaboration, research or expansion) which have to be clarified/corrective action done prior to final DOE s conclusions on the project implementation, monitoring practices and achieved emission reductions. In order to ensure transparency a verification protocol is completed for the project activity. The protocol shows in transparent manner criteria (requirements), means of verification and resulting statements on verification actual project activity against identified criteria. The verification protocol serves the following purposes: It organises in a table form, details and clarifies the requirements, which the GS project is expected to meet GS requirements; It ensures a transparent verification process where the DOE will document how a particular requirement has been verified and the result of the verification. It ensures that the issues are accurately identified, formulated, discussed and concluded in the validation report. It ensures the determination of achieving credible emission reductions from the project activity. The verification protocol consists of two tables. Table 1 reflects the verification requirements and reference to the materials used to verify the project activity against those requirements, as well as means of verification, reference to Table 2 (i.e. tables of findings) and preliminary and final opinion of the DOE on every particular requirement listed in table 1. Verification Protocol Table 1: Requirement checklist Checklist question Verification Team Comment/MoV Reference Findings comments references, data source / Draft Conclusion Final Conclusion The checklist items in Table 1 are linked to the various requirements the project should meet. The checklist is organised in various sections. Each section is then further subdivided as per the requirements of the topic and the individual project activity. The section is used to elaborate and discuss the checklist item in detail. It includes the assessment of the Verification team and how the assessment was carried out. The reporting requirements of the VVS and Project Standard shall be covered in this section. Gives reference to the information source on which the assessment is based on Assessment based on evidence provided if the criterion is fulfilled (OK), or a CAR, CL or FAR is raised (see below). The assessment refers to the draft verification stage. In case a corrective action or a clarification request the final assessment at the final verification stage is given. The findings of verification process are summarized in the tables below. Finding (reference section of table 1) Classification CAR CL FAR Description of finding (DOE) FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

15 Finding (reference section of table 1) Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed In Table 2 FAR, shall reflect the forward actions initiated by the verification team if the monitoring and reporting require attention and/or adjustment for the next verification period. The completed verification protocol for this project is enclosed in Appendix A to this report. Findings during the verification can be interpreted as a non-compliance with CDM criteria or a risk to the compliance. Corrective action requests (CARs) are raised, in case: (a) Non-conformities with the monitoring plan or methodology are found in monitoring and reporting and has not been sufficiently documented by the project participants, or if the evidence provided to prove conformity is insufficient; (b) Modifications to the implementation, operation and monitoring of the registered project activity has not been sufficiently documented by the project participants; (c) Mistakes have been made in applying assumptions, data or calculations of emission reductions which will impair the estimate of emission reductions; (d) Issues identified in a FAR during validation/previous verification(s) that are not been resolved by the project participant(s) to be verified during current verification. Requests for clarification (CLs) are raised, if information is insufficient or not clear enough to determine whether the applicable CDM requirements have been met. A forward action request (FAR) is raised during verification to highlight issues related to project implementation/monitoring that require review during the subsequent verification of the project activity. FARs shall not relate to the CDM requirements for issuance. 2.5 Internal quality control The final verification report has passed a technical review before being submitted to the project participant. A technical reviewer qualified in accordance with CCIPL s qualification scheme for CDM validation and verification performed the technical review. 2.6 Verification Team A competent team has been appointed by CCIPL in accordance with the Accreditation Standard and Carbon Check s internal procedures. The team is outlined below: Verification Team Role FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

16 Team leader Acting/trainee Team Leader Local Expert Team Member (Auditor) Technical Expert Acting/TraineeTec h. Expert Trainee Auditor Technical Reviewer Expert to TR Trainee TR Full name Affiliation Appoint ed for Sectoral Scopes (Technic al Areas) Vikash Kumar Singh India 1.2,3.1, 4.1,13.1,13.2 Alan Silayan Philippines X Amit Anand India 1.2, 3.1, 8.1, 13.1, 14.1 X X X The team composition is linked to the methodology and local experience in the host country. Vikash Kumar Singh: Qualified lead assessor and internal technical reviewer for offset projects validations and verifications under CDM, VCS and Gold Standard (GS) and actively been involved in the validation and verification or internal technical review of more than 200 GHG offset projects. He is qualified as technical expert for TA 1.2, 3.1,4.1,13.1 and 13.2 under CDM SS categorisation. He has undergone extensive training in the validation and verification of carbon offset projects including the accreditation requirements for the VVBs. He has also received accreditation from the California Air Resources Board (ARB) under Executive Order H as a GHG offset lead verifier for carbon offsets projects and is a specialist for the livestock protocol. Currently, he is employed with Carbon Check in the capacity of Compliance Officer. He holds a Bachelor of Science degree in Environment & Water Management and Master of Science degree in Environmental Management. He has been involved in number of GS validation and verification projects (as internal technical reviewer and team leader) in the following Gold Standard Projects: GS 1078, GS 1044, GS 976, GS 850, GS 916 PoA (GS 1231 (VPA 01) GS 1029 (VPA 02), GS 1030(VPA 03), GS 1031(VPA 04) and GS He has also attended Several Gold Standard DOE webinar training. Alan Silayan: is an appointed local assessor/expert for Philippines and has extensive experience in Philippines. Amit Anand: Qualified lead assessor and internal technical reviewer for offset projects validations and verifications under CDM, VCS and Gold Standard (GS) and actively been involved in the validation and verification or internal technical review of more than 20 offset projects. He is qualified as technical expert for TA 1.2 and 13.1 under CDM Sectoral Scope categorisation He holds a Masters in Environment Management from Forest Research Institute, Dehradun and B.Sc. Environmental Sciences from Ramjas College, in University of Delhi. He also has attended training in ISO 14001: Lead Auditor Training Course and for Social Carbon Standard Training. He was involved in the following Projects submitted to UNFCCC for Request for Registration and issuance: UNFCCC Project Reference Numbers: 7484, 7820, 7821, 7849, 7881, 7889, 8350, 9489, 0925, 6864, and He was also involved as validation and verification assessor in the following Gold Standard Projects: GS 1078, GS 976, GS 850, and GS 916 PoA (GS 1231 (VPA 01) GS 1029 (VPA 02), GS 1030(VPA 03), GS 1031(VPA 04)). He was also involved on the following GS project as consultant: Biogas based power project in Punjab (ID: ) Biomass based power project in Punjab (ID: ) Biomass based power project in Punjab (Birpind & Manuke Gill) (ID: ) FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

17 Biomass based power project in Punjab (Ramiana) (ID: ) Biomass based power project in Punjab (Talwandi Rai) (ID: ) Grid connected biogas based power project in Punjab (ID: ). 3. VERIFICATION FINDINGS The findings of the verification are described in the following sections. The verification criteria (requirements), the means of verification and the results of verification are documented in detail in the verification protocol in Appendix A. 3.1 Project implementation The implementation of the project activity /B16/: Project Participants: North Luzon Renewable Energy Corp.(formerly Northern Luzon UPC Asia Corporation) Title of project activity: 81MW Caparispisan Wind Energy Project GS registration No: GS 2691 Applied Baseline and monitoring methodology: ACM0002: Grid-connected electricity generation from renewable sources (version 15.0) Project Scale: Large Scale Location of the project activity: The proposed project is located in Pagudpud, Ilocos Norte on the northern tip of Luzon, Philippines. Project s crediting period: 17/07/ /07/ Reported monitoring Period 17/07/2015 to 25/04/2017 (inclusive of both the dates) verified in this verification: As part of the site visit the verification team was able to confirm that the project implementation is in accordance with the project description contained in the registered PDD /B16/. The project involves implementation and operation of 27 WTGs of 3 MW individual capacity (make Siemens SWT ) totaling to a capacity of 81 MW; as verified during the OSV and review of registered PDD. The project is developed by North Luzon Renewable Energy Corp (formerly Northern Luzon UPC Asia Corporation) or UPC. The implemented project is located in Pagudpud, Ilocos Norte on the northern tip of Luzon, Philippines. The purpose of the project is to utilize wind resources for electricity generation through the construction of a wind farm. The electricity generated from the project is being supplied to the Project physical National Grid Corporation of the Philippines (NGCP) via 62 km features (technology, 115kV transmission line from the farm to the NGCP substation in project equipment, Laoag City. The metering /measurement of electricity generated monitoring and from the project is being done at the NGCP substation in Laoag. metering equipment) Verification team has visited the NGCP substation in Laoag City and found that there are two meters installed at the substation and the same is under the custody of National Grid Corporation of the Philippines (NGCP). As verified during the on site inspection, the meters are calibrated annually. The calibration is being done by the testing division of National Grid Corporation of the Philippines (NGCP). The GHG offset during this monitoring period are 238,127 tco2e. The creding period of the project starts from17/07/2015. As per the validation report, the expected operational lifetime of the 1 As per /14/ directive received from Gold Standard. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

18 project is 20 years. The verification team confirm that the project is implemented as per the registered PDD /B16/. Any Project Design Change been sought and approved by EB for the project? Apart from reduction in greenhouse gases, the project offering cobenefit to the commuinity. There is no change observed from the registered monitoring plan of the registered PDD /B16/. Yes No No change sought The project activity was implemented and components installed as described in the registered PDD /B16/. The verification team has also assessed the monitoring and impact on the sustainable development indicators by the project implementation and found to be appropriate as per the registered PDD /B16/. 3.2 The actual operation of the CDM project activity Operation of the project activity is confirmed during the site visit by the verification team. Followings were verified at the project site: The WTGs are Siemen make and supply and erected by Siemen. As confirmed during the OSV the Operation and maintenance of the project is being carried out by Siemen for 5 years from the commissioning. During the reported monitoring period, the WTGs of the project are operated as per the registered monitoring period and supplied 430, MWh of electricity to the grid. The supplied electricity is being measured continuously and recorded monthly by National Grid Corporation of the Philippines (NGCP). There bi-directional meter (to measure the export and import of electricity) at NGCP substation at Laoag City. As verified during the on site inspection, the meters are calibrated annually. The calibration is being done by the testing division of National Grid Corporation of the Philippines (NGCP). The recorded electricity export and import is being downloaded by NGCP on monthly basis from the meters and being shared with PO through a which contains password protected excel sheet. Basis of this excel sheet as shared by NGCP, the PO raises invoices for the export of electricity where as the grid company (i.e. National Grid Corporation of the Philippines (NGCP) raises a separate invoice to PO for the electricity import. Verification team has reviewed all monthly password protected excel sheet as shared by NGCP as a part of review of project operation to check the electricity exported an imported by the project. Furthermore, the invoices (as raised by PO and NGCP as referred above) are also verified to cross the data of electricity export and import. Verification team based on interview with the representative of PO during the OSV confirms that there were no major during the reported monitoring report and the lesser electricity generation as compare to the estimate value in PDD is a result of low plant load factor. The monitoring report has been submitted for the first monitoring period (from 17/07/2015 to 25/04/2017). In summary, the monitoring period is reasonable and the operation of the project activity is in accordance with the registered PDD. The verification took cognizance of 244, 245 and 246 of CDM Project Standard and 262 b (i), 270 (a), 271 (a), (b) and 273 (b) and (c) of VVS (version 09.0) /B01/. 3.3 Compliance of the monitoring plan with the monitoring methodology including applicable tool(s) FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

19 Verification Requirements Any Revision in Monitoring plan is sought and approved by EB for the project? Criteria fulfilled Yes No Assessment by the verification team No revision in Monitoring Plan is sought. The verification team determined against all the information provided in MR, whether in-line with the applied monitoring methodology. Verification Requirements Any Deviation been sought and approved by EB for the project. Is complete set of data for the specified monitoring period is available Is the required information provided in the monitoring report has been cross-checked with other sources (ex plant logbooks, inventories, purchase records, laboratory analysis) Is the calculation of baseline emissions and project activity emissions and leakage been in accordance with the formulae and methods described in monitoring plan and the applied methodology? Is all assumptions used for emission calculation have been justified Is appropriate emission factors, IPCC default values and other reference values have been correctly applied Does the monitoring methodology provides any provision of verification for parameters other than monitoring of GHG data and shall be specific to the applicability criteria of applied methodology. Criteria fulfilled Yes No Yes No Yes No Yes No Yes No Yes No Yes No Assessment by the verification team No deviation from methodology is found. Complete set of data for the specified monitoring period i.e. 17/07/2015 to 25/04/2017 was provided by the PP, which was verified by the verification team and found to be appropriate. Verification team has verified the data submitted by PP during onsite inspection and document review. The main parameter (i.e. net electricity supplied by the project) based on which the ERs are accrued during this applied monitoring period and verified to be accurate by the verification team. The formulae and methods used in calculation of emission reduction are consistent with the registered PDD /B07/ and the applied CDM methodology /B03/. All the assumptions used for emission calculation were justified in the MR and are inline with the requirements of the registered PDD /B07/. Ex-ante fixed value of emission factor has been taken in the calculation of ERs are cross-verified from the registered PDD and found to be appropriate. NA Based on above, the verification team confirms that the monitoring plan contained in the registered PDD /B07/ is appropriately followed in the monitoring report by the project activity and also in accordance with the applied approved monitoring methodology, i.e. Applied baseline and monitoring methodology, ACM0002: Grid-connected electricity generation from renewable sources, version 15 /B03/. During the verification all relevant monitoring parameters (as listed in the PDD) have been verified with regard to the appropriateness of the applied measurement / determination FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

20 method, the correctness of the values applied for ER calculation /4/, the accuracy, and applied QA/QC measures. The verification took cognizance of 249 of CDM Project Standard and 274 to 277of VVS version 09 /B01/. 3.4 Compliance of the Actual monitoring with monitoring plan in the PDD Verification Requirements Any Revision in Monitoring plan is sought and approved by EB for the project? Does the monitoring report provide line diagram showing all relevant monitoring points? Criteria fulfilled Yes No Yes No Assessment by the verification team No revision in Monitoring Plan is sought. Line diagram for monitoring point has been provided in the Monitoring report and cross checked during the OSV by the verification team. The monitoring has been carried out in accordance with the monitoring plan contained in the registered PDD /B07/ and applied approved CDM methodology /B03/. During the course of verification, all relevant monitoring parameters have been verified with regard to the appropriateness of the applied measurement / determination method, and applied QA/QC procedures. The verification team reviewed the monitoring plan in the PDD /B16/ and compared it against the requirements of the applied methodology /B03/ and confirms that appropriate provisions are included for the monitoring and reporting procedures, data management, and QA/QC procedures and found in line with the 271 of the VVS version 09 /B01/. CCIPL confirms that the monitoring plan has been properly implemented by the PP in accordance with the registered PDD /B07/ and applied methodology. 3.5 Monitored parameters The monitoring plan is done according to the applied methodology ACM0002 (version 15.0) and the applicable tools. EX-Post Parameters: The monitored parameters of the project are in line with the approved revised PDD /B07/ and the applied CDM methodology /B03/. Brief descriptions of the monitored parameters are listed below: Data / Parameter: Unit: Description: Measured/ Calculated / Default: EG facility,y MWh/Year Quantity of net electricity generation supplied by the project plant/unit to the grid in year y Measured and calculated FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

21 Verified Source of data: The supplied electricity are being measured continuously and recorded monthly by National Grid Corporation of the Philippines (NGCP). There bi-directional meter (to measure the export and import of electricity) at NGCP substation at Laoag City. The recorded electricity export and import is being downloaded by NGCP on monthly basis from the meters and being shared with PO through a which contains password protected excel sheet. Basis of this excel sheet as shared by NGCP, the PO raises invoices for the export of electricity where as the grid company (i.e. National Grid Corporation of the Philippines (NGCP) raises a separate invoice to PO for the electricity import. Verification team has reviewed all monthly password protected excel sheet /03/ as shared by NGCP as a part of review of project operation to check the electricity exported an imported by the project. Furthermore, the invoices (as raised by PO /04-1/ and NGCP /04-2/) are also verified to cross the data of electricity export and import. Value(s) of monitored parameter: CAR-01 has been raised for the monitoring of this parameter and satisfactorily closed. 430, (for the entire monitoring report) CAR-01 has been raised for the monitoring of this parameter satisfactorily closed. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

22 Type Electricity meter Accuracy class Class 0.2 Serial Number ( Meter 1) Serial Number ( Meter 2) Old Meter ( replaced on 01/10/2015) Calibration Dates As verified during the on site inspection, /05-2/ the meters are calibrated annually. The calibration is being done by the testing division of National Grid Corporation of the Philippines (NGCP). Monitoring equipment: a) Calibration certificate dated 04/09/2014 for meter S. No and dated Meters were again tested on 09/10/2014 as a part of pre-commissioning. b) Calibration certificate dated 30/07/2015 for meter S. No and S. No c) Calibration certificate dated 01/10/2015 for meter S. No and S. No The old meter S. No was replaced by Meter S. No which was pre-calibrated on 07/08/2015 (certificated attached) d) Calibration certificate dated 21/09/2016 for meter S. No and S. No Measuring/ Reading/ Recording frequency: Continuous measurement and at least monthly recording Data / Parameter: EF grid,cm,y Unit: tco 2 /MWh Description: Measured/ Calculated / Default: 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. Calculated FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

23 Verified Source of data: Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: As per the registered PDD/ Data published by DNA Philippines As per the Tool to calculate the emission factor for an electricity system. As verified from the registered PDD, the value is fixed and ex-ante for the entire crediting period Ex-ante Parameters: Parameter: Default values used: Purpose of data Source and Verification of the source EF grid,om,y tco 2 /MWh Calculation of baseline emission As per the registered PDD/ Data published by DNA Philippines Parameter: Default values used: Purpose of data Source and Verification of the source EF grid,bm,y tco 2 /MWh Calculation of baseline emission As per the registered PDD/ Data published by DNA Philippines Parameter: Default values used: Purpose of data Source and Verification of the source EF grid,cm,y tco 2 /MWh Calculation of baseline emission As per the registered PDD/ Data published by DNA Philippines In summary, the verification team confirms that all the ex-ante and ex-post parameters are monitored in accordance with the registered monitoring plan /B16/ and applied methodology /B03/. The verification took cognizance of 260, 268 to 281 of VVS version Monitoring responsibility Verification team evaluated the management systems in place to implement the monitoring of the project activity. The monitoring of the emission reductions has been be carried out according to the scheme shown in Figure B of the registered PDD. The manager of the project company hold the overall responsibility for the monitoring process. The manager appoints a monitoring officer who is responsible for verification of the measurement, collection of electricity notes and the calculation of the emissions reductions. The monitoring officer prepares operational reports of the project activity, recording the daily operation of the wind power plant, including operating FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

24 interval, power generation, power delivered to the grid, equipment defects, etc. Finally, the monitoring reports is reviewed by the manager. Following the operational and management structure that the project participant implemented in order to monitor emission reductions generated by the project activity, indicating the responsibilities and institutional arrangements for data collection and archiving. Carbon Check can confirm that the responsibilities and authorities for monitoring and reporting are appropriate and effective for the project type and hence in accordance with monitoring plant of the registered PDD and applied monitoring methodology Accuracy of equipment Verification team checked the calibration certificates of all the monitoring equipments and found to be valid for the monitoring period, please refer to section 3.5 above for details on the calbration of the monitoring equipment. 3.7 Deviation from and/or Revision of the registered monitoring plan There are no deviations from and/or revisions to the monitoring plan during the monitoring period. 3.8 Assessment of data and calculation of greenhouse gas emission reductions The Project Proponent submitted all the relevant data and parameters required to be monitored to the verification team along with the monitoring report. All the parameters required to monitored are as per the approved revised PDD /B07/ have been monitored and reported in the monitoring report. CCIPL reviewed the calculation worksheet /2/ for the emission reduction calculation for the monitoring period 17/07/2015 to 25/04/2017. CCIPL confirms that the formulas, conversions, aggregations and factors are consistent with the monitoring plan in the PDD. The reported data was checked as follows: All the necessary data and all the parameters required to be monitored in the registered PDD /B07/ were reviewed to ensure accuracy; The overall GHG reductions achieved by the project activity in year y are calculated as follows: ER y = BE y PE y Baseline emissions Baseline emissions (BE y ) Baseline emissions are calculated as follows: BE y = EG facility,y *EF grid,cm,y Where: Parameter Description Value EG facility,y Quantity of net electricity generation supplied by the project In the first monitoring period (17/07/ /04/2017), the quantity of net electricity FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

25 EF grid,cm,y plant/unit to the grid in year y (MWh/yr) The combined margin CO 2 emission factor for grid connected power generation in year y. generation is 430, MWh EF grid,cm,y = tco 2 /MWh. Therefore, the baseline emission (BE y ) can be calculated as below: BE y = 430, * = 238,127 tco 2 Total verified Baseline emission (emission reduction) during the reported monitoring period (i.e. 17/07/2015 to 25/04/2017) is 238,127 tco2e Project emissions According to the methodology ACM002, for most renewable power generation project activities, PEy = 0. However, some project activities may involve project emissions that can be significant. As the project which is a wind energy project, does not involve either geothermal or solar thermal or hydropower aspects, hence the three sources mentioned above do not apply for the project. Hence PE y = Leakage emissions As per ACM0002, no leakage emissions are considered. The main emissions potentially giving rise to leakage in the context of electric sector projects are emissions arising due to activities such as power plant construction and upstream emissions from fossil fuel use (e.g. extraction, processing, transport). These emissions sources are neglected. 3.9 Assessment of actual emission reductions with the estimate emission reductions in PDD Estimated emission reductions in the PDD and actual accrued emission reduction in the MR over the applied monitoring period was comprehensively assessed by the verification team, through documents review; onsite visit of project technology. The comparison of estimated/ex-ante value with monitored value of the parameters for emission reductions covering the applied monitoring period from 17/07/2015 to 25/04/2017: Parameter Emission Reduction Ex-ante value 272,555 tco2e Monitored actual value 238,127 tco2e Change (Yes/No) Yes Conclusion Difference in the actual GHG emission reductions achieved during this monitoring period, from estimated value in the registered PDD. The lower emission reduction is due to the lower Plant Load factor (PLF) achieved during the monitoring period. In summary, verification team confirms the actual emission reduction is lower than the estimate of the registered PDD for the current monitoring period. Based on above, verification team concludes that, the cause for the decrease of accrued CER s for the current monitoring FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

26 period (17/07/2015 to 25/04/2017) is appropriately justified by the PP, which has, been verified and accepted by the Verification team. The verification took cognizance of 263 (c) of VVS version 09.0 /B01/ Compliance with the sustainability monitoring plan Sustainability monitoring plan in the GS passport is completely followed by the PP and the same is followed in the Monitoring report. No changes are found from the sustainabilitymonitoring plan of GS passport. The same was assessed and verified by the verification team during on site visit. All the non-neutral indicators were monitored and verified by the verification team which were found to be in line with onsite observation Monitoring of Gold Standard Sustainability Indicators Indicator Water quality Monitoring Source Use existing standards for drainage sedimentation or compare with rivers reputed as having none or minimal erosion. Water quality parametersediment loads and conventional water quality parameters (e.g. ph, dissolved oxygen, specific conductance, turbidity) Variables, Unit and Frequenc y of measure ment At least thrice a year per river during constructi on & operation one during after storm one during dry season & one during ordinary rain Assessment Verification team has reviewed the data source /06/, the following documents during the site visit: 1. Water quality monitoring report for the Creek and River Systems prepared by CRL Environmental Corporation for North Luzon Renewable Energy Corp. report dated 12 th August SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 1, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 2, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 3, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 4, SELF-MONITORING REPORT prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) for Quarter 1, ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) First Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

27 Management Bureau) Second Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) First Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) Second Semi-annual Report ECC Compliance Monitoring prepared by North Luzon Renewable Energy Corp. and submitted to authority (Environmental Management Bureau) Second Semi-annual Report 2014 Based on review of above documents and interview, verification team confirms that the water quality has been monitored (during the construction as well as operation of the project) as referred in the GS Passport. Biodivers ity Other pollutant s (temporar y) Precaution measures to minimize impact towards plants and birds Photographs will be kept as a record for continuous existence of measures. Provision of appropriate storage area for hazardous waste generated, particularly used oil. The area is Data will be compiled and monitored annually. Checking document ary records Once during the constructi CL-01 has been raised for the monitoring of this parameter and satisfactorily closed. For the parameter under consideration, verification team noted that PO has conducted several studies to determine the risk in order to formulate effective mitigation measures. Verification team has reviewed the following documents /07/: 1. Wind Farm Turbine Collision and Mortality Risk Assessment for Birds and Bats Report (2017) prepared by group of experts based on a comprehensive survey and analysis done for The North Luzon Renewable Energy Corp 2. Avifauna and Volant Mammals Study done by GEOSPHERE Technologies Inc. in 2013 During the OSV interview with the PO, it was clarified that although there has been continuous monitoring and risk analysis (on the birds and bat) has been carried out however the formulation of mitigation measure cab be finalized only after the finalization of the detailed risk assessment (on flora and fauna) which is ongoing. CL-02 has been raised for the monitoring of this parameter and satisfactorily closed. Verification team has verified the following documents /08/ for the parameter: 1. Hazardous waste generator registration certificate dated 06/12/2016 issued by Environmental Management Bureau for SIEMENS INC (Caparispisan Wind Farm). 2. Certificate of Treatment issued by Environmental Management Bureau dated 17/12/2016 which certifies treatment & FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

28 properly secured to prevent unauthorized access, with concreted flooring to prevent direct contact of oil drippings to the ground. Storage area is equipped with bunds and drainage leading to an oil- water separator. Spill kits are provided and placed on site to manage any spills that may occur. Drums of fuel, oil and chemicals of significant quantity are stored properly and will be treated prior to disposal by an accredited company of Department of Environment and Natural Resources. on period disposal of oil contaminated materials (1.2 Tons) by ALL WASTE SERVICES INC for SIEMENS. 3. Self monitoring report prepared by North Luzon Renewable Energy Corp. and submitted to Environmental Management Bureau for Quarter which specifies quantity of Hazardous waste generated and treated. Based on review of above documents and interview, verification team confirms that the parameter has been monitored (during the construction as well as operation of the project). CAR-03 has been raised for the monitoring of this parameter and satisfactorily closed. Verification team has verified the following documents /09/ for the parameter: Quality of employm ent The training records for all the employees Once for each monitoring period 1. HUMAN RESOURCES MANUAL for training & development of North Luzon Renewable Energy Corp. 2. Office Memorandum sent to all employees for the implementation of procedure ( manual) of training & development of North Luzon Renewable Energy Corp HR 7 -C Exhibit 1 Training Request Form.xlsx- Template document for identifying training need and request HR 7-C_Exhibit 2 Training Evaluation Report- Template document for evaluation of training. 5. Training Calendar for Training register (2015 onwards until April 2017 covering the entire monitoring period) FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

29 contains information on topic of training, dates, attendees, hours of training etc. Based on review of above documents and interview, verification team confirms that the parameter has been monitored as per the registered Passport. CAR-04 has been raised for the monitoring of this parameter and satisfactorily closed. Verification team has verified the following documents /10/ for the parameter: 1. Link of public data about minimum local salary tics/latest_wo.html Quantitati ve employm ent and income generatio n Human Resource (HR) records or report. The public available data about the local salary if available. Once for each monitoring period 2. Summary on latest minimum wage requirement issued by Department of labor and employment (National Wages and Productivity Commission). 3. Template Employment Agreement of North Luzon Renewable Energy Corp. (annex A of this template agreement specifies the minimum wages for the contracted personnel. 4. Declaration by Human Resource Manager of North Luzon Renewable Energy Corp. on the number of direct and indirect employment created by the project during construction and operations of the project. Based on review of above documents and interview, verification team confirms that the parameter has been monitored as per the registered Passport. Technolo gy transfer and technolo gical selfreliance Number of trainings and/or seminars, and/or site visits for masons and/or external audience (such as local guests, outsiders, etc.) Once for each monitoring period CAR-05 has been raised for the monitoring of this parameter and satisfactorily closed. Verification team has verified the following documents /11/ for the parameter: 1. Training register for external stakeholders (2014 onwards until April 2017 covering the entire monitoring period) contains information on topic of training, dates, attendees, venue etc. Based on review of above documents and interview, verification team confirms that the parameter has been monitored as per the registered Passport. The CAR-04 has been raised for the monitoring of this parameter and satisfactorily closed. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

30 training/semin ar/site visit records. Apart from the above sustainability monitoring parameters, verification team of CCIPL has also reviewed the following documents /12/ which confirms that a robust and effective grievance addresal menchanism is in place and the same was followed by the PO during the reported monitoring period : 1. North Luzon Renewable Energy Corp. s Policy on Community Grievance including the exhibits: CSR 2_Exhibit 1 Special Power of Attorney CSR 2_Exhibit 2 Community Grievance Report Form CSR 2_Exhibit 3 Release Waiver and Quitclaim 2. Grievance Register (from construction till April 2017) of North Luzon Renewable Energy Corp. which includes summary of grievance received/recorded during the monitoring period including the action taken by the project proponent. 3. Sample Grievance handled during the monitoring report includes the report on the Grievance, readdressal process, result and communication and compensation Issues remaining from the previous verification period or during validation This is the 1 st periodic verification of the project. There is no FAR during the validation stage Quality and Management System Assurance The project s management system was reviewed to determine the effectiveness of its implementation. The monitoring plan has clearly prescribed the management and operational procedures for monitoring, recording, data management, and training in accordance with the registered PDD /B16/. CCIPL verified the same through document reviews and site visit interviews the management system and quality assurance procedures and has found them to be appropriate and effective. The verification team confirms that the management system of the project is in place; with the responsibilities properly identified and in place. The same was confirmed during on-site visit and the verification team found it sufficient in order to achieve quality management system in place for this project type. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

31 APPENDIX A CARBON CHECK Certification statement for the Verification Report CCIPL 463/GS/VER/81MWCWEP/ Carbon Check India Private Ltd., the DOE, has performed the verification of the registered GS project activity GS Registration Number GS2691, 81MW Caparispisan Wind Energy Project. The project involves implementation and operation of 27 WTGs of 3 MW individual capacity (make Siemens SWT ) totaling to a capacity of 81 MW; as verified during the OSV and review of registered PDD. The baseline scenario for the project activity is grid connected electricity generation in the Philippine Power Grid, which is identical to the scenario existing prior to the start of implementation of the project activity. The project activity displaces electricity generation in the baseline. The project participants are responsible for the collection of data in accordance with the monitoring plan and the reporting of GHG emissions reductions from the project. It is DOE s responsibility to express an independent verification statement on the reported GHG emission reductions from the project. The verification is carried out in-line with the VVS and Gold Standard requirements. The verification was performed to identify the compliance of the project activity with implementation and monitoring requirements, and to verify the actual amount of achieved emission reductions, through obtaining evidence and information on-site that included i) checking whether the provisions of the monitoring methodology and the monitoring plan were consistently and appropriately applied and ii) the collection of evidence supporting the reported data. This statement covers verification period between 17/07/2015 and 25/04/2017 (including both the dates). The DOE has raised 02 clarification and 05 corrective action requests, all of which are closed. One (01) FAR have been raised. The DOE considers it necessary to give reasonable assurance that reported GHG emission reductions were calculated correctly on the basis of the approved baseline and monitoring methodology and the monitoring plan in the registered PDD are fairly stated. The DOE, hereby certifies that the project activity, achieved emission reductions by sources of GHG equal to 238,127 tco2 equivalent and all monitoring requirements have been fulfilled and is substantiated by an audit trail that contains evidence and records. Carbon Check is of FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

32 the opinion that the project activities is in line with the Gold Standard principles and certify 294,798 tco2e emission reductions: Year Emission Reduction (tco2) 2015 (17/07/ /12/2015) 53, (26/12/ /12/2016) 114, (26/12/ /04/2017) 69,750 Total 238, Date Date Vikash Kumar Singh Amit Anand Team Leader Technical Reviewer & Final Approver Carbon Check (India) Private Ltd. Carbon Check (India) Private Ltd. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

33 Table : List of findings Finding CL 01 Classification CAR CL FAR Description of finding (DOE) For the parameter Water quality, it is unclear from the MR that how the monitoring has been carried out for the parameter. The description has been directly taken from the GS passport. PP is requested to provide specific information including listing any document for the monitoring period. Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. The monitoring activities for water quality have been updated in the monitoring report as per actual situation of the project. Required revision has been made in the revised Monitoring report; checked and confirmed by the verification team. Finding is closed. Conclusion Tick the appropriate checkbox To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CL 02 Classification CAR CL FAR Description of finding (DOE) For the parameter Biodiversity, it is unclear from the MR that how the monitoring has been carried out for the parameter. The description has been directly taken from the GS passport. PP is requested to provide specific information including listing any document for the monitoring period. Corrective Action or clarification #1 The description of how the monitoring has been carried out for parameter Biodiversity has (PP shall write a detailed and clear corrective action or further been revised in the monitoring report. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

34 Finding CL 02 information for clarification as per finding) DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. The revision is monitoring report and OSV interview /observation reveals that the mitigation measures for this parameter can not be verified during this verification. Finding is closed and FAR-01 is raised. Conclusion Tick the appropriate checkbox To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CAR 01 Classification CAR CL FAR Description of finding (DOE) As per the registered PDD and validation report, the crediting period of the project starts from 09/11/2014. The billing cycle for the electricity is of each month. Review of ER spread sheet reveals the PP has taken a daily average of generation of the billing cycle (26/10/ /11/2014) to extrapolate generation data from 09/11/2014 to 25/11/2014. Simple average to derive the data appears to be incorrect and not a conservative approach. Furthermore, the commissioning of the WTGs of the project as per the provided documents /13/ is from 11/11/2014 and thus accounting electricity generation from 09/11/2014 is incorrect. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

35 Finding CAR 01 Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) The electricity generation from 11/11/2014 to 25/11/2014 (15 days) has been chosen more conservatively that is lower number between the sum of daily average of generation of billing cycle (26/10/ /11/2014) and the sum of daily meter reading record from 11/11/2014 to 25/11/2014. The result shows that the conservative value is the sum of daily average of generation as shown in the ER spreadsheet. DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. As per the revised Monitoring report (version 02.2 dated 07/11/2017), The start date of crediting period of the project has been changed from 09/11/2014 to 17/07/2015. Following GS requirement, the first mandatory verification site visit shall be in the first two years of the crediting period. Since the first site visit of the project was carried out on 17/07/2015, hence the GS VERs can be claimed for a maximum of only two years prior to the site visit date, i.e. from 17/07/2015 instead of 09/11/2014. The finding and the response above PP has different dates however a conservative approach has been taken for the revised period as well. Conclusion Tick the appropriate checkbox Based on review of revised ER spread sheet which reveals that conservative value of electricity generation ( and thus emission reduction) has been considered for the period 17/07/2015 to 25/07/2015, the finding is closed. To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CAR 02 Classification CAR CL FAR FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

36 Finding CAR 02 Description of finding (DOE) Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) Details of metering equipment and calibration of the monitoring equipment has not been provided for the monitoring parameter EG facility,y. Furthermore, review of calibration certificate also reveals that there was meter change during the calibration carried out on 31/10/2016. The change of meter is required to be provided in the Monitoring report transparently. Furthermore, the value of EG facility,y for the entire monitoring is incorrect in the parameter table. Details of metering equipment and calibration of the monitoring equipment have been updated in the monitoring report. The value of EG facility,y for the entire monitoring has been corrected in the parameter table. DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Required revision has been made in the revised Monitoring report; checked and confirmed by the verification team. Finding is closed. To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CAR 03 Classification CAR CL FAR FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

37 Finding CAR 03 Description of finding (DOE) Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) For parameter Other pollutants (temporary) PP is requested to provide specific information on the monitoring of hazardous waste during the construction phase. The monitoring frequency of the parameter is also incorrectly stated in the monitoring report. The specific information on the monitoring of hazardous waste during the construction and operation periods has been updated in the monitoring report. DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Required revision has been made in the revised Monitoring report; checked and confirmed by the verification team. Finding is closed. To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CAR 04 Classification CAR CL FAR Description of finding (DOE) For parameter Quality of employment, PP is requested to provide number of trainings imparted during the monitoring period. The same is required for the parameter Technology transfer and technological self-reliance FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

38 Finding CAR 04 Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) The number of trainings conducted by PP during the monitoring period has been provided in the monitoring report as per requested. DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Required revision has been made in the revised Monitoring report; checked and confirmed by the verification team. Finding is closed. To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding CAR 05 Classification CAR CL FAR Description of finding (DOE) For parameter Quantitative employment and income generation PP is requested to provide number of job creations for the monitoring period while doing so please also provide information on the minimal wage in the region of project and demonstrate how the project comply with the minimal wage requirement and thus effectively ensures income generation in the region. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

39 Finding CAR 05 Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) Number of job creations for the monitoring period with information on the minimal wage in the region of the project has been provided in the monitoring report to demonstrate how the project comply with the minimal wage requirement and effectively ensures income generation in the region. DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Required revision has been made in the revised Monitoring report; checked and confirmed by the verification team. Finding is closed. To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed Finding FAR 01 Classification CAR CL FAR Description of finding (DOE) For the parameter Biodiversity, the mitigation measures (based on the on-going detailed study) implemented by the project shall be checked during the next periodic verification. Corrective Action or clarification #1 (PP shall write a detailed and clear corrective action or further information for clarification as per finding) DOE Assessment #1 The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

40 Finding FAR 01 Conclusion Tick the appropriate checkbox To be checked during the next periodic verification Outstanding finding (not closed) The finding is closed FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

41 APPENDIX B Certificates of Competence FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

42 FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/

43 FM 4.9 Verification Report Template VVS GS N 463/GS/VER/81MWCWEP/