CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03- in effect as of: 22 December 2006 CONTENTS

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1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03- in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1

2 Revision history of this document Version Date Description and reason of revision Number January 2003 Initial adoption 02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at < December The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2

3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Title : 10 MW Bhavani Barrage-1 Small Hydroelectric Project for a Grid connected system, Tamil Nadu, India. Version : 01 Date : 19/05/2008 A.2. Description of the small-scale project activity: The 10 MW (2 5 MW) Bhavani Barrage -1 Small Hydro power project is a run-off-river project proposed by Tamil Nadu Electricity Board (TNEB) in between Pillur dam and lower Bhavani dam. The purpose of the project activity is to generate hydro power by utilizing the potential energy available in the flows of the river Bhavani, which would generate energy of kwh per annum on an average. The proposed project activity utilises the tail waters let out from the existing Pillur Powerhouse (2 50 MW) for power generation. The maximum power discharge let out from Pillur power house is 173 cumecs. The Pillur reservoir receives flows from Bhavani river, Kundah river and Niralapalam stream. The hydro potential due to the bed fall of 36 m and discharge of 173 cumecs has not been exploited so far by any agency. Hence to harness the hydro potential TNEB has proposed the 10 MW hydro project. Tamil Nadu Electricity Board (TNEB) owned by government of Tamil Nadu is responsible for power generation, transmission and distribution is exploring to tap power potential available in various forms of energy to improve access to the power in the rural areas. TNEB has proposed this project activity to improve availability of power and water in this remote region as well as to support environment by exploiting clean sources of energy. The Bhavani reservoir improves ground water levels in the surrounding areas and thus ground water can be tapped by farmers for irrigation under bore wells by utilising electricity since it is not possible to arrange for conventional irrigation canal system under the foot hills of western ghats. This project will ensure easy access to power and water to the surrounding rural people. The project operation would contribute to sustainable development, substitute fossil fuel generated power, reducing emissions of GHGs, contribute to economic development of area and reduce the dependence on fossil fuels. Thus, the power generation would be carried out in sustainable manner without causing any negative impact to the environment. The project is under implementation and started placing orders for plant and machinery. The project is expected to be commissioned during July,

4 View of project participant about the project activity s contribution to sustainable development Ministry of Environment and Forests, Govt. of India has stipulated the following indicators for sustainable development in the interim approval guidelines for CDM project. a) Social well-being b) Economic well-being c) Environmental well-being d) Technological well-being Project would contribute to the above indicators in the following manner Social well-being: Presently some of the areas in the project region do not have access to the water for irrigation and drinking. Bhavani Barrage can ensure storage of water in the river which can be used by nearby farmers for irrigation and drinking purposes. Bhavani barrage also envisages improvement of ground water in the region. Power cuts are imposed in the rural areas due to power shortage. The power generated through proposed stations would reduce power cuts in the rural areas such as proposed project region. Further, it would contribute to the creation of employment opportunities to the local people during the construction (100 members) which is expected to last for about two years and operation phase (10 members) regular employment. Creation of these opportunities would partly prevent migration of rural population to urban areas. With availability of more stable power, there would be increase in the economic activities. The infrastructure in and around the project area would also improve due to project activity being set up in a rural area, which otherwise would not have taken place. With improved infrastructure, standard of living would also improve in the local area. Economic well-being: The economy of the area is dependent on agricultural activities, in particular commercial crops and due to storage of water by building of small pond. Pond is a small water storage facility to cater to the hourly demand for power generation. The ground water around the pond is recharged so that the farmers could exploit the same to grow commercial crops in the lands surrounding the project. The project would greatly help the local farmers to supplement their water requirements for irrigation by installation of tube wells which could be operated by power generated from the project activity. Project proponents would mobilise investment in the region to an extent of about Rs millions which would not have occurred in the absence of the project activity. This is a significant investment in the region. The available power can also be utilized for growth of small industries which will boost the general economy of the area. Presently there is power shortage in the state of Tamil Nadu in the order of 6 to 7%. This causes power instability in the grid leading to power cuts in the rural areas. The power generation from the project area would stabilize the grid as well as quality of power in the local area. With rising hydro power generation 4

5 and improving efficiencies in distribution of electricity, the project activity would be offering energy at stable prices for economic development in the remote rural areas. The present project activity will be operated as peak load station. The storage envisaged for the project is on daily basis. The storage is utilized to run the project to the rated capacity during peak load hours in the morning and evening. Thus the project activity would result in stabilization of the local area during peak time. The project would attract investments for developing agro based industries in the region. Environmental well-being: The proposed project activity is small hydro project which utilise the discharges available from Pillur power house. The project is environment friendly with least disturbance to natural eco-system and the submergence of fertile lands will be avoided by construction of afflux bunds (these are flood banks at higher elevation to prevent submergence of near by agricultural lands during larger inflows at the location). For the purpose of encouraging the agricultural production in the region optimal submergence is maintained. During construction phase pollution levels such as particulate matter, SO2, NOx and CO would likely to increase to a negligible extent and would not have any effect on the environment. The energy generated from the project activity would be clean energy as it is a small hydro based project, which would not involve any GHG emissions and in the process support the global climate change programme. Thus, the project activity would not cause any negative impact on the environment. As the project activity is a small hydro electric project, it would not alter any environmental or biological attributes of the area. The project would generate real, measurable and long-term emission reductions. Further the project activity would not result in degradation of any natural resources, health standards, etc at the project area. Technological well-being: The project activity is the first small hydro project in the region. The project would utilise environmentally safe and sound technology in small-scale hydro-electric power sector. Further the project would demonstrate the feasibility of harnessing water discharges in the river under low head and encourage setting of similar projects in future. The above benefits due to the project activity would ensure the project contributes to the sustainable development of the region. A.3. Project participants: Name of the party involved ((Host) indicates a host party) India (Host) Private and/or public entity(ies) project participants Public Entity: Tamil Nadu Electricity Board ( TNEB) Whether party involved wishes to be considered as project participant No 5

6 A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: India A Host Party (ies): A State: Tamil Nadu Region/State/Province etc.: District: Taluk : Village: A Coimbatore Mettupalayam Samayapuram City/Town/Community etc: A Details of physical location, including information allowing the unique identification of this small-scale project activity : The project Bhavani Barrage-1 is located on the barrage developed across river Bhavani, a tributary of river Cauvery. The project is situated at Samayapuram village, Mettupalayam Taluk and Coimbatore Dist. The location is a distance of 6Km from Metttupalaym and 42km from Coimbatore. The nearest railhead is Mettupalayam (6km). The nearest airport is Coimbatore. The project is located between Latitude to N and Longitude to76 55 E. Physical location of the project is marked in the maps below. Location of Coimbatore District in Tamil Nadu 6

7 Map1: Location of Coimbatore district of Tamil Nadu State Location of Bhavani Barrage-1 (2 X 5 MW) small hydro project in Coimbatore District Map2: Physical location of Project site in Coimbatore district, Tamil Nadu State Physical location /address Tamil Nadu Electricity Board, Bhavani Barrage-1 Small Hydro Electric Project Survey. No: 241 to 243,272to 274,282,322,875,884,886 Samayapuram Village, Mettupalayam Taluk,Coimbatore District. A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: According to Appendix B to the simplified modalities and procedures for small-scale CDM project activities, the proposed project activity falls under the following type and category. Project Type: Category I.D: Type I Renewable Energy Projects Grid connected renewable electricity generation The project activity utilizes renewable hydro potential for power generation and exports the generated power to the regional grid system. Accordingly, the applicable methodology for the project activity shall be AMS I.D/ Version 13, EB 36, which includes hydro electricity generation for a grid system. Since, the capacity of the CDM project is 10 MW, which is less than the qualifying capacity of 15 MW, the project activity is a small-scale CDM project activity and UNFCCC indicative simplified modalities and procedures are applied. 7

8 Application of environmentally sound and safe technology The technology of power generation process using hydro resources is by conversion of the energy available in the water flow into mechanical energy using hydro turbines and then to electrical energy using alternators. The generated power will be transformed to match the voltage of nearest grid substation for proper interconnection and smooth evacuation of power. In this process there would be no greenhouse gas emissions or burning of any fossil fuels. Thus, electricity would be generated through sustainable means without causing any negative impact on the environment. Therefore, the technology is environmentally safe and sound. Technical Details: Hydrology Design Discharge Gross Head Design Head Energy Expected annual generation Auxiliary consumption Expected annual export : 85m 3 /s (per machine) : 9 m : 7 m : kwh : kwh : kwh Plant Equipment Hydro Turbine : Bulb Type No. of generating units : 2 Generator type : Synchronous Capacity of each generating unit: 5MW Generation voltage : 6.6 kv, 3 phase Grid transmission voltage : 22 kv Frequency : 50 Hz Diesel Generator Set : 2 x 63.5 kva Technology transfer No technology transfer from other countries is involved in the project. A.4.3 Estimated amount of emission reductions over the chosen crediting period: The crediting period chosen for the proposed project activity is 10 years and the crediting period commences from the date of registration of the project activity. Year wise estimation of emission reductions as well as total emission reductions during the crediting period is shown in the following tabular form. 8

9 Estimation of annual emission Years reductions in tonnes of CO 2 e , , , , , , , , ,999 Total estimated reductions (tones of CO 2 e) , ,990 Total number of crediting years 10 Annual average of the estimated reductions over the crediting period (t CO 2 e) 11,999 In the above table, the year 2009 corresponds to the period starting from 1/07/2009 to 31/06/2010 or from the date of registration to the successive 365 days which ever occurs later. Similar interpretation shall apply for the remaining years. A.4.4. Public funding of the small-scale project activity: No public funding from Annex I Party is involved in this project activity. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: In accordance with Appendix C 1 of the Simplified Modalities and Procedures for Small-Scale CDM project activities DETERMINING THE OCCURANCE OF DEBUNDLING, it can be confirmed that 10 MW Bhavani Barrage-1 small hydel project is not a debundled component of a larger CDM project Accordingly, a proposed small scale project activity would be deemed to be a debundled component of a large project activity, if there is a registered small scale project activity or an application to register another small scale project activity: - With the same project participants; - in the same project category and technology / measure; and - registered within the previous 2 years; and - Whose boundary is within 1 km of the project boundary of the proposed small scale activity at the closest point 1 9

10 The project proponent is proposing to register two more project activities on the same river. However, their physical boundary is not with in 1 km of the present project activity. Hence this project activity is not a debundled component of a large project activity. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Title: Type I, Renewable Energy projects, Reference: AMS I.D, Grid connected renewable electricity generation Version 13, EB 36 B.2 Justification of the choice of the project category: The proposed project activity is a 10 MW small hydro power project established as a run-of-the river project. The project activity is eligible to use the methodology indicated, since ; - the project activity generates and exports renewable electricity to a grid system, dominated by thermal energy sources. - the capacity of the project activity is well below the qualifying limit - the power generation is from utilising the available water resources and not falls under combined heat and power systems category - the project activity is a new project and it does not involve any addition of generation units to the existing power generation facility - the project activity does not seek to retrofit or modify an existing facility for renewable energy generation Based on the water and power studies carried out for this project and by keeping main parameters in view, such as, head and discharge available in the river, the project participants declare that the project would be within the limits of the small scale project activity throughout the crediting period. In addition, the design parameters of turbine and generator reveal that the project would be within the small scale limit throughout the crediting period. B.3. Description of the project boundary: In accordance with AMS I.D Version 13, EB 36, the project boundary encompasses the physical, geographical site of the renewable generation source. The project boundary of the project activity will consist of diversion structure, penstock, powerhouse, DG Set, tail race channel and the transmission system till the evacuation point at the Marudur substation. 10

11 B.4. Description of baseline and its development: As per paragraph 9 of AMS I.D, the baseline is the kwh produced by the renewable generating unit multiplied by an emission coefficient (measured in kg CO 2 e/kwh) calculated in a transparent and conservative manner as: a) A Combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the Tool to calculate the emission factor for an electricity system OR b) The weighted average emissions (in kg CO2e/kWh) of the current generation mix. The project proponent has selected approach a i.e. combined margin emission factor with ex-ante approach. The baseline emissions are calculated based on the net energy provided to the grid (in kwh /year) by renewable generating units, and an emission factor for the displaced grid electricity (in kg CO 2 e/kwh). The Emission factor for southern region is taken from the Grid Emission Factors for Indian grid systems, which are calculated by CEA and available on their website (the CO 2 Baseline Database ). The Emission factors are calculated according to the guidelines of CDM UNFCCC website. Data source for the key parameters used to calculate emission reductions is furnished below: Key Parameter Value Data Source Website EF Baseline emission factor for the southern region grid CEA published baseline emission factor for southern region grid (CM) EGy Net power export to the grid per annum From Plant and TNEB Records. Ex post determination The most recent emission factor published by CEA for the Southern grid kg CO 2 /kwh is for the year calculated based on the combined margin approach. Actual emission reductions will be calculated ex post based records and data which are reliable and verifiable. The emission factor for the grid is calculated by ex-ante approach as explained at Sec.B.6.1. B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: UNFCCC simplified modalities seek to establish additionality of the project activity as per Attachment A to Appendix B, which listed various barriers, out of which, at least one barrier shall be identified due to which the project would not have occurred any way. The methodology lists out four barriers. a) Investment barrier wherein it has to be established that a financially more viable alternative to the project activity would have led to higher emissions; b) technological barrier wherein it has to be established that a less technologically advanced alternative 11

12 to the project activity which involves lower risks due to performance uncertainty or low market share of the new technology adopted for the project activity and hence would have led to higher emissions; c) barrier due to prevailing practice wherein it has to be established that the prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions and d) other barriers wherein it should be established that without the project activity, for another specific reasons identified by the project participant, such as institutional barriers or limited information, managerial resources, organisational capacity, financial resources or capacity to absorb new technologies, emission would have been higher. The following barriers have been identified for the project activity during the time of the decision to establish the additionality of the project. c) Barrier due to Prevailing practice The PP has chosen for the purpose of demonstration of prevailing practice barrier data sources of as the real action on project activity (commencement of civil construction) commenced in the first quarter of year Small-scale hydro 2 projects make a nearly negligible contribution to installed grid-based electricity supply capacity in India in general, and in the southern region and the State of Tamil Nadu in particular. As of December, 2005, small-scale hydro represented 1.38 percent of installed capacity nationally and 1.72 percent in the southern region. 3 There were only 10 small-scale hydro projects in operation in Tamil Nadu State as on March The installed capacity of these small projects ranged from as low as 0.7 MW to as high as 8 MW. The total installed capacity of these ten projects was about 39 MW, or about 0.38 percent of the total installed capacity of power plants in Tamil Nadu 4. In Tamil Nadu, the minimal and shrinking role of small-scale hydro in the electricity supply mix is illuminated even more clearly by examining its share of actual power generation. Here, the share of small-scale hydro is smaller than is the case for installed capacity, because the plant load factors (PLF) achieved in small-scale hydropower projects is invariably lower than their thermal counterparts. Small-scale hydro accounted for 0.25% of the total power generated by the Tamil Nadu Electricity Board (TNEB) in indicating that more emphasis on thermal sources for power generation. 2 Plants with an installed capacity up to 15MW, in keeping with the UNFCCC delineation between small- and largescale power-supply projects. 3 Calculated based on data from the following sources: Ministry of Power, Annual Report , Chapter 25, Statement-I, All India Installed Capacity, Page No.165; and Statement-III, Installed Capacity in Southern Region, Page No Tamil Nadu Electricity Board, Statistics At A Glance , Installed Capacity and Generation , Page 12 5 Tamil Nadu Electricity Board, Statistics at a Glance , Page 12 (Installed capacity and generation) 12

13 With the exception of one large scale plant (Pykara Ultimate stage 3 x 50MW) and one small-scale plant (the Aliyar Small -2.5MW), all the hydropower projects in Tamil Nadu were built prior to the year The expansion of electricity-generation capacity through hydropower projects is not a common practice in Tamil Nadu and this is likely to remain the case in the future. In proportion the total expected addition to the installed capacity of power generation during the 11 th Plan period (3270 MW) the share of small hydro power projects would remain at only 1.98% 7. For State utilities like TNEB, investment in small hydro power projects is not a preferred investment as the capacities of these projects are always small and with lower capacity utilization: interest lies mainly in thermal power generation. Generation of power through thermal sources is preferred because: a) The feasibility of uninterrupted generation, b) Availability of infrastructure for procuring indigenous as well as imported fossil fuel, c) Relatively less time taken for executing of thermal projects and d) The feasibility of achieving scale economies unlike small hydro power projects, which are entirely dependent on the vagaries of monsoon. e) Bigger scale thermal units can be built This project activity is being undertaken purely from the social angle and not from the economic angle as the local population would get more stable power and groundwater recharging. Hence the project would contribute to the local and backward area development and also to reduce the T & D losses due to regionalisation of generation and utilization of power. As per the policy of Govt. of Tamil Nadu the power is being supplied to agricultural consumers at free of cost. The revenue realisation from agricultural community is Nil. The tariff for domestic consumption is in the order of 1.25 cents to 2.5 cents per unit which is very low when compared with cost of generation (7.10 cents) worked out from the project cost. Revenue realisation in this case is also negligible. The government cannot escape from the social obligations for betterment of the poor living standards. It cannot trade the power generation from the project activity to out side at higher price. This is the major barrier for the project. To offset the cost, CDM revenues would greatly help for this project activity which will further encourage new such projects in the rural areas to achieve minimum living standards in the disadvantaged areas like the project region. This will increase the access to the power for agricultural activity and drinking water. Though the project is being taken up more from the social benefit angle, the CDM revenue would go to enhance the sustainability of it in the long run and also lead to a demonstration effect, in the sense that more such projects could be taken up in the future serving a larger populace. From the foregoing, it should be evident that small hydro power generation in Tamil Nadu face the common practice barrier due to preference for thermal generation because of higher capacity utilization and availability of fossil fuel sources in the state. 6 Tamil Nadu Electricity Board, Statistics at a Glance , Page 15, Date of commissioning of power stations 7 Data furnished by Tamil Nadu Electricity Board on specific request available for verification 13

14 Other Barriers: Hydrology risks: The monsoon characteristics of the Kerala play a dominant role in determining water availability for the project, as the catchment area lies in the Kerala. The Bhavani Barrage-1 small Hydel Scheme is a run-ofriver project. As such, it is dependent upon the availability of water in the river which is controlled by the Pillur power house located in Kerala, upstream for generating electricity. The existing Pillur Power House (2x50MW) is a peak load station. As such, the hydrological study of water availability for this project is determined exclusively by the discharges into the river from the Pillur power house. Gauged data for the flow at the tailrace of the existing Pillur powerhouse (2 x 50 MW) is available for the years , which is considered for estimating the power potential at the proposed project site. The proposed project is also a peak load station. The net flows after meeting the irrigation requirements, at the proposed project site are available for power generation. As the project activity is depending on the flows from the catchments area located in the State of Kerala, any change in the governmental policies or any other barrage upstream will weaken the project and result in a significant risk of seasonal disruptions in power generation from the plant. Probability of cost escalation: The project proponent has to invest around Rs millions for the establishment of the 10 MW Bhavani Barrage-1 small hydroelectric project. Since the project estimates were made in 2004 and since then the price of cement and steel have gone up, the possibility of an escalation in the investment is likely to be high. B.6. Emission reductions: B.6.1. Explanation of methodological choices: The project activity is generation of electricity using hydro potential and exporting the same to the grid system, which is also fed by other fuel sources such as fossil and non-fossil types. Emission reductions due to the project activity are considered to be equivalent to the emissions avoided in the baseline scenario by displacing the grid electricity. Emission reductions are related to the electricity exported by the project and the actual generation mix in the grid system. Baseline As the project activity does not modify or retrofit an existing electricity generation facility, the baseline scenario is electricity delivered to the grid by the project that would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources. As indicated at Section B.4, the project proponent has selected approach a i.e. combined margin emission factor with ex-ante approach to calculate the baseline emissions. The baseline emissions are calculated based on the net energy supplied to the grid (in kwh/year), and an emission factor for the displaced grid electricity (in kg CO 2 e/kwh). BE y = EG y * EF y 14

15 where EG y = the net electricity exported to the grid system during the year y EF y = the emission factor of the grid to which the project exports electricity Central Electricity Authority (CEA) (which is an official source of Ministry of Power, Government of India) have calculated baseline emission factors for various grids in India and made them publicly available i.e. CO 2 Baseline Database at The emission factor of the grid for the ex-ante approach is calculated in the following way: In accordance with the Tool to calculate the emission factor for an electricity system, the grid emission factor is calculated using Combined Margin (CM), comprised of an Operating Margin (OM) emission factor and a Build Margin (BM) emission factor. The following procedure was adopted for estimating the grid electricity emission factor: Step 1. Identify the relevant electric power system. Step 2. Select on operating margin (OM) method. Step 3. Calculate the operating margin emission factor according to the selected method. Step 4. Identify the cohort of power units to be included in the build margin (BM). Step 5. Calculate the build margin emission factor. Step 6 Calculate the combined margin (CM) emission factor. Step 1 Identify the relevant electric power system The CEA of the host country has published a delineation of the project electricity system and connected electricity systems. According to data published by the CEA of India the project activity falls under southern regional grid. Step 2 Select an operating margin (OM) method The approved methodological tool recommends the use of one of the following for the calculation of the operating margin emission factor (EF grid,om,y ): a) Simple OM, or b) Simple adjusted OM; or c) Dispatch data analysis OM; or d) Average OM. The methodological tool recommends the use of dispatch data analysis as the first methodological choice. However, in India availability of accurate data on grid system dispatch order for each power plant in the system and the amount of power dispatched from all plants in the system during each hour is practically not possible. Also, still the merit order dispatch system has not become applicable and is unlikely to be so during the crediting period. 15

16 In view of this it is proposed to apply other choices as suggested in the METHODOLOGICAL TOOL. Since the power supplied by low cost must run power plants 8 to the Southern grid during is clearly below 50%, the CEA has applied the Simple OM method. The data vintage option selected is the ex-ante approach, where a 3 year average OM is calculated. The most recent three year CEA data published on the emission factor of southern region is considered. Step 3 Calculate the operating margin emission factor according to the selected method. a) Simple OM In the Simple OM method, the emission factor is calculated as generation weighted average CO 2 emissions per unit net electricity generation (tco 2 /MWh) of all generating sources serving the system, not including low-operating cost and must-run power plants. Simple OM can be calculated using any of the three available methods. Option A has been selected where the data on fuel consumption and net electricity generation of each power plant/ unit is available. The CEA baseline is derived using the following formulae to calculate simple OM EF grid, OMsimple, y = i, m FC i, m, y * NCV m EG i, y my * EF CO2, i, y (1) Where: EF grid, OM,simple,y is simple operating margin CO2 emission factor in year y (tco2/mwh) FC i, m,y is amount of fossil fuel type i consumed by power plant / unit m in year y (mass or volume unit) NCV i, y is net calorific value (energy content) of fossil fuel type i in year y (GJ /mass or volume unit) EFco 2,I,y is CO2 emission factor of fossil fuel type i in year y (tco2/gj) EG m, y is net electricity generated and delivered to the grid by power plant / unit m in year y (MWh) m is all power plants / units serving the grid in year y except low-cost / must-run power plants / units i is all fossil fuel types combusted in power plant /unit m in year y y is either the three most recent years for which data is available at the time of submission of the CDM-PDD to the DOE for validation (ex-ante) The CEA data published on Baseline emission factor for different regions in Indian electricity system are provided in Annex 3. 8 Defined as Hydro, geothermal, wind, low cost biomass, nuclear and solar generation plants in the METHODOLOGICAL TOOL. 16

17 Table 1: Operating Margin 9 Most recent three years 2004/ / /07 Operating Margin* (OM) in kg CO 2 e/ kwh Average of 3 years * including imports Source: CDM Carbon Dioxide Baseline Data base, Version3, December 2007( Step 4 Identify the cohort of power units to be included in the build margin The tool to calculate the emission factor for an electricity system offers two options for determination of build margin emission factor: ex ante and ex post determination of the Build Margin (BM). Option 1 is selected wherein the build margin emission factor is calculated ex- ante based on most recent information available on plants already built for sample group m in southern region. This simplifies the monitoring procedures, but also offers a conservative approach of BM calculation. The sample group m shall be the one having higher power generation between (a) five power plants that have been built most recently and (b) the capacity additions in the electricity system that comprises 20% of the system generation built most recently. It is found that the option (b) has higher generation compared to option (a). Hence option (b) is selected. Step 5 Calculate the build margin emission factor The build margin emissions factor is the generation of weighted average emission factor (tco 2 /MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows: EF grid, BM, y Where: EF grid,bm,y EG m,y EF EL,m,y m y = EGm, y EF m m EG m, y EL, m, y Build margin CO 2 emission factor in year y (tco 2 /MWh) Net quantity of electricity generated and delivered to the grid by power unit m in year y (MWh) CO 2 emission factor of power unit m in year y (tco 2 /MWh) Power units included in the build margin Most recent historical year for which power generation data is available 9 CEA published CO2 data base, 17

18 Build Margin emission factor is determined as below: Build Margin (BM) kgco 2 e/ kwh Step 6 Calculation of the baseline emission factor (Combined Margin) The baseline emission factor in year y is calculated as the simple average of the OM and BM emission factors, i.e. OM and BM are each weighted with 50% for the first crediting period. As noted above, the resulting Combined Margin is fixed ex ante for the duration of the crediting period: EF grid, CM,y = w OM EFgrid,OM,y + wbm EFgrid,BM,y Where: EF grid,bm,y EF grid,om,y w OM w BM Build margin CO 2 emission factor in year y (tco 2 /MWh) Operating margin CO 2 emission factor in year y (tco 2 /MWh) Weighting of operating margin emissions factor(%) Weighting of build margin emissions factor(%) As the proposed project activity is Hydro, the weighting of operating margin emission factor and weighting of build margin emission factor is considered as 0.5 and 0.5 respectively and calculated combined margin as under: Combined Margin (CM) Simple average of OM and BM kg CO 2 e/ kwh Project emissions As part of the project activity a backup diesel generator (2 x 63.5 kva) to meet the emergency requirements of power house will be installed. Emissions resulting from usage of diesel backup generator will be accounted as project emissions based on the following equation as provided in the approved consolidated methodology. PE diesel,y = F d,y * Density * NCV * EF CO2 * OXID / 10^6 Where F d,y is the quantity of diesel used during the year (Ltrs) Density of diesel (0.82 kg/ltr. as per Society of Indian Automobile Mfgs.) NCV is the calorific value of diesel (43 TJ/Gg as per IPCC 2006 default value) EF CO2 is the CO 2 emission factor of Diesel (74.1 t CO 2 /TJ as per IPCC 2006) OXID is the oxidation factor of the coal (1 as per IPCC 2006 default value) 18

19 Leakage: No leakage emissions are considered for the proposed project activity since no energy generating equipment will be transferred from another activity and no existing equipment will be transferred to another activity. Emission Reductions: Because no leakage is anticipated, the emission reductions are equal to the baseline emissions less any project emissions that occur. Baseline emissions are calculated based on the monitored net amount of electricity supplied to the grid, and the baseline emission factor. ER y = BE y - PE y B.6.2. Data and parameters that are available at validation: Data / Parameter: EF y Data unit: kg CO 2 e/kwh Description: CO 2 emission factor for the regional grid system Source of data used: CEA published grid emission factors Value applied: Average of 3 years( ) Combined (OM and BM) margin Justification of the choice With a view to obtain uniformity of approach in the country towards a of data or description of common objective, Central Electricity Authority (CEA) values have been measurement methods and used, which are authentic and are made available publicly by Govt of procedures actually India. applied : Any comment: Data / Parameter: EFco 2, i Data unit: t CO 2 /TJ Description: CO 2 emission coefficient of fuel type i Source of data used: IPCC 2006 default values Value applied: 74.1 Justification of the choice IPCC values have been used for diesel because no country specific data is of data or description of available. measurement methods and procedures actually applied : Any comment: The project activity may combust only one type of fossil fuel i.e., diesel during the project operation to meet the emergency power requirement of the project. Hence only emission factor of diesel is provided in the parameter 19

20 Data / Parameter: OXID Data unit: Not applicable (constant) Description: Oxidation Factor of Diesel Source of data used: IPCC 2006 default values Value applied: 1 Justification of the choice of data or description of IPCC value have been used for the fuel type since no country specific oxidation factor is available measurement methods and procedures actually applied : Any comment: B.6.3 Ex-ante calculation of emission reductions: Baseline emissions Baseline emissions calculated as explained in section B.6.1 above are summarised as below. BE y = kwh * kg tco 2 e/kwh / 1000 BE y = 11,999 tco 2 e Project emissions The project emissions due to the combustion of diesel are considered as zero for estimating ex-ante emission reductions. The quantity of diesel consumed for operating the DG set during emergency situations is expected to be negligible. However the quantity of diesel combusted in the project activity will be monitored during each year of crediting period (B.7.1) and project emissions will be deducted from baseline emissions. Provisions have been provided in Section B.6.1 for calculating project emissions. Since the quantity of diesel that will be consumed is unpredictable before actual operation of the project, and also to simplify the ex-ante calculations of emission reductions, excluding project emissions is considered reasonable. PE diesel,y = F d,y * Density * NCV * EF CO2 * OXID / 10^6 PE y = 0 x 0.82 x 43 x 74.1 x 1 / 10^6 = 0 tco 2 e Leakage No applicable Emission reductions ER y = BE y - PE y 20

21 ER y = 11,999-0 ER y = 11,999 tco 2 (ER y = BE y ) B.6.4 Summary of the ex-ante estimation of emission reductions: Summary of the ex ante estimation of emission reductions are furnished below. Year Estimation of project activity emissions (t CO 2 e) Estimation of baseline emissions (t CO 2 e) Estimation of leakage (t CO 2 e) Estimation of overall emission reductions (t CO 2 e) , , , , , , , , , , , , , , , , , , , ,999 Total (tonnes of CO 2 e) 0 119, ,990 In the above table, the year 2009 corresponds to the period starting from 01/07/2009 to 03/06/2010 or from the date of registration to the successive 365 days which ever occurs later. Similar interpretation shall apply for the remaining years. B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: EG y Data unit: kwh Description: Electricity supplied to the grid by the project during the year, y Source of data to be used: On-site measurements Value of data Description of measurement Measured monthly using calibrated meters and aggregated annually. methods and procedures to be applied: QA/QC procedures to be applied: Meters will be calibrated as per industry standards. Supply records to the grid and other records are used to ensure consistency. Any comment: Electric power delivered to the grid will be measured by 0.2 Class 21

22 accuracy meter at project switch yard by TNEB as specified in the PPA and records maintained. The data will be cross-checked with monthly invoices or receipts of payments. EG grossy Data / Parameter: Data unit: kwh Description: Total electricity generated by the project during the year y Source of data to be used: On-site measurements Value of data Description of measurement Measured monthly using calibrated meters and aggregated annually. methods and procedures to be applied: QA/QC procedures to be Meters will be calibrated as per industry standards/ppa. Sales records applied: to the grid and other records are used to ensure consistency. Any comment: Electric power imported from grid will be measured by 0.2 Class accuracy meter at project switch yard by TNEB as specified in the PPA and records maintained. The data will be cross-checked with monthly invoices or receipts of payments. Data / Parameter: EG import, y Data unit: kwh Description: Grid electricity import to the project activity during the year y Source of data to be used: On-site measurements Value of data 0 Description of measurement Measured monthly using calibrated meters and aggregated annually. methods and procedures to be applied: QA/QC procedures to be Meters will be calibrated as per industry standards/ppa. Sales records applied: to the grid and other records are used to ensure consistency. Any comment: Electric power imported from grid will be measured by 0.2 Class accuracy meter at project switch yard by TNEB as specified in the PPA and records maintained. The data will be cross-checked with monthly invoices or receipts of payments. Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: F di,y Litres Quantity of diesel used in DG set for plant lighting in case of grid failure during year y On-site measurements / store issues 0 (projected) The total number of operating hours of DG set and the corresponding quantity of diesel consumed for the purpose will be recorded in the log book maintained at the DG set room. The operating hours and the quantity of diesel consumption will be recorded. The weigh bridge meter will under go calibration/maintenance subject to appropriate industrial standards. The data recorded can be cross checked against the fuel purchase receipts. 22

23 Any comment: The data on quantity of diesel procured would be collected separately. Data archived: Crediting period + two years. Instruments : Level gauge B.7.2 Description of the monitoring plan: This monitoring plan is developed in accordance with the modalities and procedures for small-scale CDM project activities and is proposed to be used for grid-connected small hydroelectric project being implemented in Tamil Nadu State, India. The monitoring plan, which would be implemented by the project proponent, describes about the monitoring organisation, parameters to be monitored, monitoring practices, QA and QC procedures, data storage and archiving. Procedures for training of monitoring personnel The project would employ qualified and experienced persons for plant operation. Basic personnel to deal with monitoring of parameters are Assistant Executive Engineers. The project would maintain standard log sheets and formats to record the monitoring parameters. The persons would be given proper training to maintain the plant records. The Executive Engineer would be the designated person to verify, compile and archive all the monitored data. The parameters to be monitored during the crediting period would be provided in a tabular format to the designated person. The person would be provided necessary training with respect to maintenance of the relevant monitoring records to enable him/her to deal the monitoring independently. The training would be provided to the monitoring personnel for monitoring of the following parameters: Electricity Export Electricity Import Gross electricity generated Periodical calibration of monitoring equipment Diesel consumption Further, uncertainties in monitoring procedure if any would be handled by external GHG experts. Procedures for documentation and storage: The Assistant Executive Engineers would record the parameters every day during the operation of the plant. Since the project is a hydel power project, only the following energy related data needs to be monitored. Gross Electricity generation, Energy Export and import and diesel consumption for the DG set: The Energy meter readings would be taken during a particular time of every day to ensure constant recording frequency of parameter. The recorded parameters would be documented every day in the standard log books maintained at the plant. The day to day records would be verified by Executive Engineer, compiled and documented for preparation of internal audit reports. 23

24 The company will introduce an internal audit system for documentation and safe storage of data. Internal auditing would be carried out as per the monitoring plan and whenever necessary. An internal audit report would be prepared for review by the higher authorities not less than the rank of Chief Engineer specified by TNEB. The internal auditor could be an outside entity or one of the senior Engineers of TNEB. The internal auditor would be required to verify the records independently with reference to the power exported and imported. The reports would be submitted periodically to the Chief Engineer designated. Internal audit reports are the basic documents for the monitoring and storage of plant operational data. Procedures for Corrective actions The parameters to be monitored during a crediting period would be compiled as internal audit report for every quarter of each crediting year and submitted to the specified higher authorities of the Board for review. The parameters include the Gross generation, Auxiliary consumption, Energy export, import and diesel consumption for the DG set. Based on the audit report submitted by plant manager, the Chief Engineer would asses the performance of plant. The Chief Engineer would discuss and recommend necessary mechanism to improve the operational efficiency of the plant and directs the respective person to rectify the problem. The report would also cover comments on variations in the records with reference to the above parameters compared to the bills submitted to the utility or records maintained. The specified authorities in the Board would consider these variations in their review meeting and instruct the concerned personnel of the plant to rectify the variations and report the action taken in the next review meeting. Monitoring Organisation The authority and responsibility for registration, monitoring, measurement, reporting and reviewing of the data would rest with the Chairman of the Board or the member authorised by him. A team of experienced personnel in various disciplines will assist the Superintending Engineer with experience in plant operation, measurements and management. The primary responsibilities of the team is to measure, monitor, record and report the information on various data items to the Chief Engineer, in accordance with the applicable standards. The responsibility of review, storage and archiving of information in good condition would lie with the Chief Engineer. The Chief Engineer would undertake periodic verifications and onsite inspections to ensure the quality of the data collected by the team and initiate steps in case of any abnormal conditions. The Chief Engineer would review the data collected by the team and suggest corrective actions wherever required. An internal audit report would be prepared for review by the specified authorities in the Board which would be later submitted for verification by an independent entity (DOE). The Chairman of the Board or the member authorised by him would examine the internal audit reports and would in particular take note of any deviations in data over the norms and monitor that the corrective actions have resulted in adherence to the standards. The team including the Chief Engineer would be appointed by the Chairman of the Board or the member authorised by him, in advance before the start of project operations. The Chief Engineer would report to the Chairman of the Board or the member authorised by him and seeks guidance in case of conflicts or difficulties in order to maintain the monitoring organisation in good spirit. 24