Emission Reduction Monitoring Report Second Monitoring Period Puck Wind Power Plant, Poland January 1, 2008 December 31, 2008

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1 Emission Reduction Monitoring Report Second Monitoring Period Puck Wind Power Plant, Poland January 1, 2008 December 31, 2008 April 15, 2009 Project Description: The Puck Project consists of 11 new wind generators of 2.0 MW each located in a wind farm northwest of Puck in the Pomerania Province in northwestern Poland. Construction was completed and the wind power plant complex brought on line early in The wind farm will generate electric energy estimated at an annual average rate of 51,000 MWh per year over the 20 year expected life of the turbines. The sole output of the project will be electricity sold to the Polish grid through the Energa electric distribution company. Coal is the dominant fuel in the Polish power sector with more than 92 percent of gross production in 2003 coming from public thermal power plants and 98 percent of that energy coming from plants fired with hard or brown coal. The Project will generate an estimated 254,300 tons of carbon dioxide equivalent (tco2e) emission reductions during the five year Kyoto Protocol commitment period 2008 to 2012, or ca. 305,160 tco2e between start of operations in 2007 and December 31, 2012 through generation of about 51.5 GWh of electricity annually. This report covers the year 2008, which was the second year of operation of the project. Dipol sp. z o.o., a newly formed project company owned by Polish Energy Partners SA (PEP), has the primary responsibility for collecting and reporting all necessary data for project monitoring and performance according to the Monitoring Plan. The Monitoring Plan is available in both English and Polish. Forward Action Requests from previous verification are addressed in revised Monitoring Plan. Methodology: Calculations for emission reductions from this project are based on ACM0002 Version 6.0 Consolidated monitoring methodology for zero emissions grid-connected electricity generation from renewable sources explicitly declares that it is applicable to grid-connected renewable power generation activities and lists wind generation as one of those activities. The baseline and related monitoring plan are governed to the maximum extent possible by ACM0002. The project activity will reduce grid generation of electricity, as zero emissions of CO2 are associated with the proposed wind generators. Wind generation varies significantly over the year due to variation in seasonal wind regimes. Consequently, the displaced mix of grid generation could potentially vary by season. Therefore, seasonal or monthly analysis was preferred over annual analysis. For this project, wind generation has been modeled on a quarterly basis. Therefore, emission reductions for year y and quarter q (ERyq) are calculated as follows: ER yq = ES yq * EF yq *(GG ExPlant y /GD 110kV y ) Where ESyq represents electricity sales to the local distribution utility 1 ; EFyq is the CO2 emission factor for grid generators (tco2/gross MWh); GG is gross generation for grid plants in MWh and GD is grid delivery in MWh at 110 kv delivery points on the grid. 1 Invoices for electricity sales to Energa do not take into account electricity consumed from the grid by the Wind Farm. To establish the NET AMOUNT of electricity delivered to the grid, invoices from electricty consumption via the 110kV and 15kV meters is taken inot account and subtracted from the total amount of electricty supplied (see cells G70:J70 in the worksheet OM No New CCGT PPs ). 1

2 GG and GD differ by the amount of parasitic power used by grid generation plants, and transformation and line losses between the grid generator and the 110 kv delivery points. Annual ERy are simply obtained by summing over the four quarters in each year. The loss adjustments reflected in the GG/GD ratio will not change quickly over time and can be adequately represented at annual levels of resolution. Monitoring Results: Table 1 shows the total net electricity sales for each month and highlights the seasonal variation in wind power production which is highest in the winter and lowest in the summer. Since the wind project will not generate any emissions, the monitoring plan focuses on the displacement of emissions based on Polish power sector data for 18 hard coal-fired power plants. In 2008, 47,546 MWh of electric energy was generated and 46,630 MWh of net electric energy was sent to the grid, which was ca 8.2% below the estimate for the year. Table 2 presents a summary of the data collected during the 2008 monitoring period. All of the data collected for the monitoring period are included in the annex to this report. The total emission reductions for 2008 are 45,822. The total cumulative emissions (2007-8) from the project thus far as indicated in Table 3 are 94,939. The detailed Monitoring Workbook is provided in the annex to this report. Table 1. Summary of Monitoring Results Electricity (MWh) Month/year Bought from grid Generated Sold to grid Tariff A 23 Tariff B 11 Net January 7, , ,084.3 February 6, , ,339.4 March 4, , ,719.5 April 2, , ,111.0 May 1, , ,375.6 June 3, , ,086.7 July 1, , ,728.0 August 3, , ,550.8 September 2, , ,784.6 October 4, , ,337.6 November 6, , ,296.1 December 3, , ,216.7 Total , , ,630.4 During project preparation two potential environmental issues were identified and relate to bird fatalities and noise generation from the wind farm. Both issues were addressed in the Monitoring Plan. A report on noise was produced after the first year of operations and no negative impacts were identified. Per the terms of the Monitoring Plan, no further analysis of this issue is required. Regarding bird fatalities, a report for 2008 has been completed and submitted to the World Bank. The report is currently under review by the World Bank s Europe and Central Asia Region and does not require additional review by the Independent Entity verifying emission reductions from the project. 2

3 Table 2: Summary of Data from 2008 Monitoring Period Item Source Units Annual Q1 Q2 Q3 Q4 Coal Carbon Content Polish National Inventory tc02/tj Coal Carbon Content Calculated tco2/gj Percent Combustion Generic Ex-Ante Assumption Percent 98.0% Coal Carbon Content Calculated tco2/mwh Gross Efficiency Line 41 Percent 39.3% 41.7% 37.8% 36.8% 40.8% Grid Generator Calculated Wgted Average Grid Generator Fixed Based On Historic Analysis Grid Generator tco2/gross MWh tco2/gross MWh Weighted Average of OM and BM CEFs tco2/gross MWh Electric Sales to Energa Paid Invoices GWh kv Quarterly Shares Calculated Percent 100.0% 38.9% 14.1% 17.3% 29.7% Item Source Units Annual Gross Gen/Net Gen EWK Calc Lines 28 & 29 Multiplier Transformation Losses Stipulated Ex Ante Assumption Percent 3.00% Transmission Line Loss Stipulated Ex Ante Assumption Percent 2.00% Gross Gen/110 kv Del Calc Multiplier CMCEF At Sale Point Calc tco2/mwh Item Source Units Annual Project Output Sold Line 70 GWh Sale Point Line 78 tco2/mwh Baseline CO2 Emissions Calc t CO2 45,822 3

4 Table 3: ER Summary for Crediting Period Year ERs Source Ref Date No Monitoring Report ,117 First Periodic Monitoring Report 27/10/ ,822 Second Periodic Monitoring Report 30/3/ TOTAL 94,939 4

5 Annex, Monitoring Workbook 5