Report No: /244 GS. Date:

Transcription

1 VALIDATION REPORT FOR GOLD STANDARD REGISTRATION REDAN INFRASTRUCTURE PRIVATE LIMITED 7.5 MW POULTRY LITTER PROJECT BY REDAN INFRASTRUCTURE PRIVATE LIMITED Report No: Date: TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstrasse Essen, Germany Phone: Fax: Page A-1

2 Date of first issue: Project No.: Final Approval by: Organisational unit: Kunal Rami Client: Redan Infrastructure Private Limited Swiss Carbon Assets Ltd. Client ref.: Mr. Gopi Sridhar Gurram Mr. K Kartick positive validation opinion negative validation Summary: opinion Redan Infrastructure Private Limited have commissioned the (CP) to carry out the validation for Gold Standard (GS) CDM project: 7.5 MW Poultry Litter Project by Redan Infrastructure Private limited. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the CDM validation report /VAL/. In the course of the validation for GS registration 06 Corrective Action Requests (CARs) and 01 Clarification Requests (CLs) were raised and successfully closed. No FAR has been raised. In detail the conclusions can be summarized as follows: The project meets all eligibility criteria set by the GS foundation The project involves the adaption of a new technology The project does not result in negative social, environmental and/or economic impacts The project contribution to Sustainable Development is determined The project additionality is sufficiently justified in the PDD and GS Passport The project does not result in diversion of ODA Conservative assumptions were applied in the project description The monitoring plan of SD parameters is transparent and adequate The project meets the stakeholder consultation requirements The calculated emission reductions of 977,795 tco2e are most likely to be achieved within the renewable crediting period of 7 years The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all Report No.: Subject Group: Climate Protection Indexing terms Report title: 7.5 MW Poultry Litter Project by Redan Infrastructure Private limited Work carried out by: Jimmy Sah (TL from ) Prasad Jakkaraju (TL till ) Murali Krishna (ETE) Sukanta Das (TM) Hemang Shah (TM/TE) Final technical review by: Kunal Rami Stefan Winter Local technical review by Mr. Prasad Jakkaraju Date of this revision: Rev. No.: Number of pages: Sustainable Development GS2.1 Toolkit / GS2.1 Requirement, GS Validation No distribution without permission from the client or responsible organisational unit Limited distribution Unrestricted distribution Page A-2

3 Abbreviations APERC APPCB APSPDCL AWMS BAU CA CAR CDM CER CL COD CO 2 CO 2e CP DNA DPR EB EIA FAR GHG GSD GS IPCC NREDCAP PDD PLR QC/QA RIPL SBI SCA UNFCCC VVM Andhra Pradesh Electricity Regulatory Commission Andhra Pradesh Pollution Control Board Andhra Pradesh Southern Electricity Distribution Company Limited Animal Waste Management System Business as usual Corrective Action / Clarification Action Corrective Action Request Clean Development Mechanism Certified Emission Reduction Clarification Request Commercial Date of Commissioning Carbon dioxide Carbon dioxide equivalent Certification Program Designated National Authority Detailed Project Report CDM Executive Board Environmental Impact Assessment Forward Action Request Greenhouse gas(es) Gold standard documents Gold Standard Intergovernmental Panel on Climate Change New and Renewable Energy Development Corporation of Andhra Pradesh Limited Project Design Document Prime Lending Rate Quality control/quality assurance Redan Infrastructure Private Limited State Bank of India Swiss Carbon Assets Ltd United Nations Framework Convention on Climate Change Validation and Verification Manual Page A-3

4 Table of Contents Page 1 INTRODUCTION TECHNICAL PROJECT DESCRIPTION COMMENTS BY PARTIES, STAKEHOLDERS AND NGOS METHODOLOGY AND VALIDATION SEQUENCE VALIDATION ASSESSMENT SUMMARY REFERENCES GOLD STANDARD VALIDATION FINDINGS ANNEX 1: VALIDATION PROTOCOL ANNEX 2: DO NO HARM ASSESSMENT.. 36 ANNEX 3: SUSTAINABLE DEVELOPMENT MATRIX 39 ANNEX 4: SUSTAINABILITY MONITORING PLAN 42 Page A-4

5 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 1 INTRODUCTION Redan Infrastructure Private Limited have commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM project: 7.5 MW Poultry Litter. The purpose of this validation is to have an independent third party assess the project s compliance with the GS requirements as described in the Gold Standard Documentation and supporting documents by Redan Infrastructure Private Limited and Swiss Carbon Assets Ltd. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes /GSD/. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the validation report /VAL/. Relevant Gold Standard criteria to be covered during this validation are: Eligibility of the project with relevant GS criteria Technological transfer Do No Harm Assessment Contribution to Sustainable Development Compliance with GS requirements w.r.t. the additionality screen Application of conservative assumptions Monitoring of sustainable development parameters Environmental Impacts Stakeholder consultation requirements The validation is based on the information made available to TÜV NORD JI/CDM CP and on the contract conditions. TÜV NORD JI/CDM CP can not be held liable by any entities for making its validation opinion based on any false or misleading information supplied to it in the course of validation. The validation is not meant to provide any consulting to the project participants. However, stated requests for clarifications and/or corrective actions may provide input for improvement of the project design. Page A-5

6 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 2 TECHNICAL PROJECT DESCRIPTION The proposed project will generate 7.5 MW of electricity from a renewable source (Poultry litter and biomass) and will supply electricity to the Southern grid. The technology to be employed in the power generation is standard direct combustion of fuel in a boiler and a steam turbine technology. The proposed project is based on utilizing poultry litter waste currently being dumped in anaerobic lagoons. The project aims at adding electricity to the state grid as well as to find productive disposal solution to the huge quantity of poultry litter that otherwise leads to emission of Methane which is a Green House Gas. Poultry litter is mixed with about 15% of biomass (mango waste, groundnut shell, coconut coir, etc.), in order to achieve stable combustion of the fuel. Poultry litter will be collected from the surrounding farms and brought to the plant where it will be used as fuel directly and fed to the boilers. The following technical equipment forms a part of the project activity; STEAM GENERATOR a) Type of Boiler (Steam Generator) : Travel Grate Bed Boiler b) Capacity : 40 tonnes / Hr GENERATOR a) Generator Capacity : 7500 kw TURBINE a) Type : Condensing (Fully) b) Output (Net) : 7.5 MW c) Heat Rate : 3700 kcal/ kwh d) Type of Governing : Throttle Expected electricity generation from the plant is 52,560 MWh for the first crediting period, which will avoid GHG emission from emission intensive power plants connected to the Southern grid, further the emissions reductions caused due to usage of poultry litter as a fuel which in the baseline would have been dumped in anaerobic lagoons causing release of methane emissions. The total emission reductions likely to be achieved by the project for first crediting period is 977,795 tco 2e. The project has opted for Renewable crediting period. Further key parameters of the project are given in the Validation Report /VAL/. Page A-6

7 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 3 COMMENTS BY PARTIES, STAKEHOLDERS AND NGOS According to the modalities for the validation of CDM projects, TÜV NORD JI/CDM CP published the draft PDD on the dedicated UNFCCC website /view.html on and invited comments within 30 days, until by parties, stakeholders and UNFCCC accredited non-governmental organisations. Apart from UNFCCC requirements /unfccc/. The project was web-hosted second time applying two methodologies on the dedicated UNFCCC Website W/view.html jkfsjfsd from to Further the documents like GS Stakeholder consultation report, GS Passport, PDD, are all published on the website: with project ID GS 1022, further the above documents are also available to the public on the Project Proponent website (South Pole Website), ions Comment has been received from UNFCCC and has been addressed in the CDM FVR, further no comments were received on GS website /unfccc/, /gs/. Moreover, FAR requests from GS to the DOE in the GS LSC review for project listing are described as follows: The DOE is requested to check the scoring of following SD indicators with the help of reference document provided by the PP. o Water quality and quantity o Biodiversity The DOE is requested to check the documentary evidences for the justification of scoring of SD indicators. Based on the feedback received from GS, the DOE has reviewed the SD indicators and a detailed assessment is provided in Annex 3 and Annex 4 of this report. The site visit for the project was carried out from to which included visits to project location, Gangavaram village and nearby poultry farms. The stakeholders identified by the project participant were local villagers who are the major population of the particular area, local communities, Non Government Organizations, equipment supplier, project proponent representatives, O&M Team and other people involved in the project. The validation team verified the list of participants from whom the comments were invited further, during the onsite visit a discussion was carried out with the stakeholders who were part of the initial stakeholder meeting as well as visit to other poultry farms. Page A-7

8 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: The topics of discussion of interviews with the stakeholders during the site visit were as follows; Process of Land purchased for the project activity, Compensation for the land by the project owner Environmental effects of the project Possibility of employment generation in the project activity and current level of local employment in the project implementation Electricity supply scenario in the local Chittor district The baseline practice for disposal of poultry waste, Acceptability of poultry farm owners to supply poultry litter to the project Estimated Pricing for the poultry waste Acceptability of village farmers to take the poultry ash as fertilizers Transport arrangements for poultry waste during the project scenario and Overall impact of the project activity During the discussions with the stakeholders (List of stakeholder is described in Table 6-4) it was observed that the overall view for the project is positive which was assessed based on the below observations. The purchase of land for the project was based on mutual discussions and the original land owners were satisfactorily compensated. The project being a renewable energy project using poultry litter and biomass thus the requirement of manpower in fuel transportation and handling is huge for which the project proponent has agreed to provide two-third of the employment to the locals. The villagers and poultry farm owners were happy for the fact that the poultry litter would be treated by being used as source of energy rather than being treated in baseline which led to an increase in mosquitoes and insects in the area apart from spreading odor in the local area. The locals are also hopeful that w.r.t the power produced in the project, the local area would have better supply and reliability of electricity. Further, there were no negative comments received from the local stakeholders for the project which is in-line with the discussions as mentioned in the registered PDD of the project. The DOE thus confirms that the local stakeholders have a positive impact due to the project and the associated progress/development in the local area. Moreover, the project has received the host country approval letter dated 22 nd April 2011 which confirms that the project fulfills the sustainable development criteria in the host country (India). Page A-8

9 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 4 METHODOLOGY AND VALIDATION SEQUENCE The GS validation of the project encompasses the following Validation Steps: Contract review Appointment of team members and technical reviewers Publication of the project documentation A desk review of the PDD /PDD/ and Gold Standard Documents /GSD/ submitted by the client and additional supporting documents with the use of customised validation protocol /CPM/ according to the Validation and Verification Manual /VVM/ and Gold Standard Requirements /GSR/, Validation planning, On-Site assessment, Background investigation and follow-up interviews with personnel of the project developer and its contractors, Draft validation reporting Resolution of corrective actions (if any) Final validation reporting Technical review Final approval of the validation. Further details to the methodology and validation sequence is given in the Validation Report /VAL/. Page A-9

10 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 5 VALIDATION ASSESSMENT SUMMARY Redan Infrastructure Private Limited have commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM project: 7.5 MW Poultry Litter. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes /GSD/. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the validation report /VAL/. In the course of the validation for GS registration 06 Corrective Action Requests (CARs) and 01 Clarification Requests (CLs) were raised and successfully closed. No FAR has been raised. In detail the conclusions can be summarised as follows: The project meets all eligibility criteria set by the GS foundation The project involves the adaption of a new technology The project does not result in negative social, environmental and/or economic impacts The project contribution to Sustainable Development is determined The project additionality is sufficiently justified in the PDD and GSPP There is no Official Development Assistance (ODA) in this project Conservative assumptions were applied in the project description The monitoring plan of SD parameters is transparent and adequate The project meets the stakeholder consultation requirements The calculated emission reductions of 977,795 tco2e are most likely to be achieved within the renewable crediting period of 7 years. The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all criteria applicable for the validation. Mumbai, Essen, Mr. Jimmy Sah TÜV India Private Limited Validation Team Leader Kunal Rami Senior Assessor Page A-10

11 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 6 REFERENCES Table 6-1: Reference Documents provided by the project participant Document /ADD/ Letter from Thermodyne Technologies Private Ltd. dt. 2011/09/13 Letter from Paharpur Cooling Towers Ltd. dt. nil Letter addressed to Vennar Organic Fertislizers (P) Ltd. dt. 2010/08/02 Letter from Vennar Organic Fertilizers (P) Ltd. dt. 2010/08/06 State Bank of India Loan sanction letter dated 2011/05/02 Programme on Recovery of Energy from Industrial Waste for the year dt. 2010/04/26 Power Purchase Agreement with Southern Power Distribution Company of Andhra Pradesh Ltd. dt. 2010/08/11 /CON-DOE/ Validation contract between Project Proponent and DOE dated /BAR/ /DPR/ /ERPA/ /HCA/ /IRR/ /LOAN/ Fuel availability and local practices assessment report prepared by M/s Saisireesha Consultancy Services dt. Jan Detailed Project Report prepared by M/s Saisireesha Consultancy Services dt. Jan Emission Reductions Purchase Agreement between Redan Infrastructure Private Limited and Swiss Carbon Assets Limited dated Approval from Government of India by Ministry of Environment and Forests (MoEF) of India on CDM dated 25/04/2011 vide letter no. 4/22/2011-CCC received for the project activity. Financial calculation sheet Bank loan agreement- Loan application dated Loan Sanction letter from SBI dated /LSHC/ Stakeholder comments invited dated 22/04/2011 /MD/ /PDD/ Board meeting resolution to initiate the implementation and CDM status dated Project Design Document version MW Poultry Litter Project by Redan Infrastructure Private limited dated Project Design Document version MW Poultry Litter Project by Redan Infrastructure Private limited dated Page A-11

12 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: Reference Document /PL/ /PO/ /PPA/ Project layout drawing Purchase orders released for Boiler with Thermodyne Technologies Pvt. Ltd. dated Power Purchase Agreement signed with Southern Power Distribution Company of Andhra Pradesh Limited dated /Prior-CDM/ Notification to and EB on the project intention to seek CDM benefits dated /SC/ Consent to establish received from APPCB dated /TR/ Laboratory test report of poultry litter dt. 2011/09/06 Laboratory test report of Coconut coir dt. 2010/10/29 Laboratory test report of Coconut stems dt. 2011/09/06 Laboratory test report of Groundnut shell dt. 2002/05/30 Laboratory test report of Mango stone dt. 2010/01/29 /TS/ /XLS/ Equipment technical specification Emission reduction calculation spreadsheet Table 6-2: Background investigation and assessment documents Reference /ACM0010/ /APERC/ Document Consolidated baseline methodology for GHG emission reductions from manure management systems (version 05) APERC Tariff Order for Purchase of Power from Non-conventional Energy projects dt. 2004/03/20 APERC Tariff Order for Purchase of Power from Non-conventional Energy projects dt. 2009/03/31 /AMS I.D/ Grid connected renewable electricity generation (Version 17.0) /CPM/ /GS-PPT/ TÜV NORD JI / CDM CP Manual (incl. CP procedures and forms) Gold Standard Passport Template Page A-12

13 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: Reference Document /GSR/ /IPCC-GP/ /IPCC/ Gold Standard Requirements IPCC Good Practice Guidance & Uncertainty Management in National Greenhouse Gas Inventories, 2000 Revised 2006 IPCC Guidelines for National Greenhouse Gas Inventories: /KP/ Kyoto Protocol (1997) /MA/ Decision 3/CMP. 1 (Marrakesh Accords & Annex to decision (17/CP.7)) /TA/ Tool for the demonstration and assessment of additionality (Ver ). Tool to determine remaining lifetime of equipment Ver. 01 Guidelines for the reporting and validation of plant load factors- Ver. 01 (Annex 11, EB 48) Version 2 Tool to calculate project or leakage CO2 emissions from fossil fuel combustion Version 1 -Tool to calculate baseline, project and/or leakage emissions from electricity consumption Tool to calculate the emission factor for an electricity system, ver /VAL/ TÜV NORD Validation Report for the Project with CDM NO : 7018 /VVM/ Validation and Verification Manual (Version 01.2, Annex 1, EB 55) /EB62 Annex 13/ /EB62 Annex 5/ /EB 48 Annex 11/ Guidelines on the Demonstration and Assessment of Prior Consideration of the CDM (version 04) Guidance on Investment Analysis version 05 Guidelines for the reporting and validation of plant load factors- Ver. 01 Table 6-3: Websites used Reference Link Organisation /APERC/ Andhra Pradesh Electricity Regulatory Commission /cd4cdm/ UNEP Riso Centre Page A-13

14 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: Reference Link Organisation /CEA/ Central Electricity Authority of India /CERC/ Central Electricity Regulatory Commission /IPCC/ IPCC publications /MNRE/ Ministry of New & Renewable Energy /MoEF/ MoEF, DNA India /UNFCCC/ UNFCCC Table 6-4: List of interviewed persons Reference MoI 1 Name Organisation / Function /IM01/ V Mr. Ms /IM02/ V Mr. Ms. Gopi Sridhar Gurram Tanushree Bagh MD, Redan Infrastructure Private Limited Business Developement Manager, South Pole Carbon Asset Management Ltd. /IM02/ V Mr. Ms. K. Kartick Carbon Manager, South Pole Carbon Asset Management Ltd. /IM03/ V Mr. Ms. Prakash Babu Local Villager /IM03/ V Mr. Ms. Y. Srinivasalli Local Villager /IM03/ V Mr. Ms. Rajesh Khanna Local Villager /IM03/ V Mr. Ms. S. Rajeev Local Villager /IM03/ V Mr. Ms. D Gopi Krishna Local Villager 1) Means of Interview: (Telephone, , Visit) Page A-14

15 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: 7 GOLD STANDARD VALIDATION FINDINGS In the following table the findings from the desk review of the published GS passport, GS stakeholder consultation report, visits, interviews and supporting documents are summarised:. Project Eligibility CAR C1 Classification CAR CL FAR Description of finding The project implementation was not publicly announced Describe the finding in unambiguous style; address the context without registration under the CDM. Prior notification to (e.g. section) UNFCCC was duly submitted with the stipulated timeline. However the Passport does not provide the details w.r.t to the dates of the same. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Please refer to the section C.3. of the revised Gold Standard Passport, version 03 submitted to the validator for details on the prior CDM consideration notifications to UNFCCC and the host country DNA for the project activity under consideration. Changes in Passport Section(s): C.3 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The details for the notification to UNFCCC and DNA have already been confirmed as per the registered PDD, further the information is now provided in the GS Passport too. Thus CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Project Sustainability Assessment CAR F 1 Classification CAR CL FAR Description of finding The GS Passport provides relevant reference of MDG Describe the finding in unambiguous style; address the context without identifying the actual applicable sub-section which (e.g. section) leads to information being ambiguous and non-transparent. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective The applicable sub-section, i.e., specific target under the MDG that that may be of relevance has been provided for each indicator in section F.2. of the revised Gold Standard Page A-15

16 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Passport, version 03 submitted to the validator. Changes in Passport Section(s): F.2 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The relevant target under the each MDG target has now been described which provides a clear and transparent information. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Project Sustainability Assessment Describe the finding in unambiguous style; address the context (e.g. section) CAR F2 Classification CAR CL FAR Description of finding The Impacts on the following indicators have not been detailed; The impacts on water quality The impacts described on biodiversity has no relevance to the MDG. For Quality of Employment: The mitigation measure the details in the mitigation, relevance to MDG and explanation provided are unrelated. Human and institutional capacity: no information is provided, thus it is not clear how the indicator is not applicable to the project. Technology transfer and technological self reliance: no information is provided, thus it is not clear how the indicator is not applicable to the project. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. Please refer to the section F.2. of the revised Gold Standard Passport, version 03 submitted to the validator for: Impacts on water quality have been provided: lower release of coliforms (bacteria from animal waste) Impacts on biodiversity have been revised in line with the Millennium Development Goals (MDG): lower Page A-16

17 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox depletion level of renewable stocks like water Quality of Employment MDG and explanation provided have been revised: Goal 8 (Develop a global partnership for development) has been applied and reference has been drawn to training of permanent employees in the project. Human and institutional capacity has been revised to explain why it has been considered that the project activity does not have a significant impact on human and institutional capacity: difficult to measure the positive changes in the project scenario compared to the baseline Technology transfer and technological self reliance has been revised to explain why it has been considered that the project activity does not have a significant impact on technology transfer and technological self reliance: constant monitoring involves complexities Changes in Passport Section(s): F.2 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The revised Gold Standard Passport, version 03 under section F.2. mentions the following details; Impacts on water quality the project leads to lower release of coliforms (bacteria from animal waste) as waste is treated in form of use as a fuel Impacts on biodiversity low water consumption as compared to the baseline Quality of Employment the project shall lead to improvement of the technical knowledge of the people employed. Human and institutional capacity does not have any relevance to the project. Technology transfer and technological self reliance mentions to not have any impact. The above information has been checked and is acceptable. CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Page A-17

18 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: Project Sustainability Assessment Describe the finding in unambiguous style; address the context (e.g. section) CAR F3 Classification CAR CL FAR Description of finding The GS Passport and LSC report does not provide any information about how the indicators and impacts were discussed with the stakeholders. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox During the Local Stakeholder Consultation meeting on 05/06/2011, a blind stakeholder consultation exercise was carried out by the project proponent. There was first an introduction of the categories of sustainable development and their possible indicators in a non-technical language using local context examples for better understanding. The indicators listed were brought up one by one and the audience was asked which they think are relevant to the project and to score them positive neutral or negative, along with relevant reasons for their opinions. In the Local Stakeholder Consultation Report, the minutes of meeting in section C.3. mentions that the blind stakeholder consultation exercise was conducted, along with a summarisation of some comments, whereas section D.2. covers the results of the said exercise in details in the form of a sustainable development matrix. In order to throw more light on how the indicators and impacts were discussed with the stakeholders, the above information has also been provided in section E.1. of the revised Gold Standard Passport, version 03 submitted to the validator. Changes in Passport Section(s): E.1, C.3 and D.2 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The local stakeholder discussion process is described in a clear and transparent manner. Further the details have been confirmed during discussions with the stakeholders at site. CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Project Sustainability Assessment CAR F4 Classification CAR CL FAR Page A-18

19 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox An initial stakeholder consultation has been conducted however the dates are missing in the GS Passport. Please refer to the section E.1. of the revised Gold Standard Passport, version 03 submitted to the validator mentioning the date of the initial stakeholder consultation (05/06/2011). Changes in Passport Section(s): E.1 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The revised document provides the details for initial stakeholder consultation process. CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Project Sustainability Assessment Page A-19 CAR F5 Classification CAR CL FAR Description of finding The GS LSC has been checked, however it does not Describe the finding in unambiguous style; address the context provide any details how the project address the (e.g. section) environmental and social impacts. Appropriate correction is required. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. During the Local Stakeholder Consultation meeting on 05/06/2011, a blind stakeholder consultation exercise was carried out by the project proponent. There was first an introduction of the categories of sustainable development and their possible indicators in a non-technical language using local context examples for better understanding. The indicators listed were brought up one by one and the audience was asked which they think are relevant to the project and to score them positive neutral or negative, along with relevant reasons for their opinions. In the Local Stakeholder Consultation Report, the minutes of meeting in section C.3. mentions that the blind stakeholder consultation exercise was conducted, along with a summarisation of some comments, whereas section D.2. covers the results of the said exercise in details in the form of a sustainable development matrix. In order to throw more light on how the indicators and impacts were discussed with the stakeholders, the above

20 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox information has also been provided in section E.1. of the revised Gold Standard Passport, version 03 submitted to the validator. Changes in Passport Section(s): E.1 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The revised documents describes the environmental and social impacts in a clear and transparent manner. The project being a waste to energy project leads to improvement in the social and environmental impacts. Thus CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Project Sustainability Assessment CL F 6 Classification CAR CL FAR Description of finding The stakeholders feedback round was conducted as Describe the finding in unambiguous style; address the context described in the GS Passport by electronic mails. (e.g. section) In this regard, it needs to be clarified how the stakeholder feedback has been conducted for the stakeholders who do not have access to s. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the PDD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox In order to encourage participation from stakeholders without internet access or unfamiliar with electronic mails, copies of the project procedural documents and a nontechnical project summary in the local language Telugu were made available to the local stakeholders at an accessible location for them to go through and provide their comments. The stakeholders were also intimated of this setup by means of notices in English and Telugu displayed at public places. This information and copies of the notices have been provided in section E.2. of the revised Gold Standard Passport, version 03 submitted to the validator. Changes in Passport Section(s): E.2 New version No.: 03 Changes in XLS Worksheet(s): New version No.: The GS passport has been revised to provide the details of the stakeholder consultation process in a clear and transparent manner. The information has been confirmed during discussions with the stakeholders. CAR is closed. To be checked during the first periodic verification Additional action should be taken (finding remains open) Page A-20

21 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: The finding is closed Page A-21

22 Validation Report for Gold Standard Registration: : 7.5 MW Poultry Litter TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: ANNEX A1: Validation Protocol Page A-22

23 ANNEX 1: VALIDATION PROTOCOL Gold Standard requirements checklist for CDM projects Checklist items w.r.t. major aspects of project eligibility, additionality and SD A. Project Eligibility Screen The project type is assessed COMMENTS Ref. Draft Concl. Final Concl. A.1.1. Is the Project activity a renewable energy or End use energy efficiency improvement project? A.1.2. Has the host country a quantitative reduction target under the Kyoto Protocol? The proposed project involves generation of 7.5 MW of electricity from renewable source (poultry litter and partially with biomass) at Gangavaram village, Chitoor district in Andhra Pradesh. The project type is categorised as renewable energy project. This is an eligible project type under the Gold Standard regulation. The host country is India, which has no quantitative reduction target under the Kyoto protocol /PDD/ /GSD/ /IM01/ /UNFCCC/ A.1.3. Which size has the project per definition of the GS requirements (Micro-, Small-, Large Scale)? The project has used a large scale (ACM0010) and a small scale (AMS I.D) methodology. Along with the methane avoidance, project is generating 7.5 MW of electricity and exporting the same to the grid. The total capacity of the electricity generation is 7.5 MW which is less than the maximum qualifying limit of Type-I (15 MW) project. Thus, the project activity is eligible to apply Type-I small scale project activity. /UNFCCC/ /PDD/ /ER/ /GSD/ /AMS ID/ /EIA/ Further, to generate electricity, poultry litter mixed with biomass (mango waste, groundnut shell, coconut coir, etc.) (about 15%) is used in order to achieve stable Page A-23

24 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS combustion of the fuel. Thus, 99,700 tco 2 methane has been avoided (which is greater than 60 ktco2). Thus, the project activity also qualifies under Type-III of large scale project activity and is eligible to apply ACM0010. Ref. Draft Concl. Final Concl. Thus the project is a large scale project activity. A.1.4. Is the project activity a bundle and are all project activities that are part of this bundle eligible under GS? No, the project activity is not a bundle. /PDD/ /GSD/ /IM01/ B. Additionality Screen B.1 Public Announcement Check B.1.1. Has the project, in its current design, previously been publicly announced to go ahead without the CDM, prior to any payment being need for the implementation of the project? The project implementation was not publicly announced without registration under the CDM. Prior notification to UNFCCC was duly submitted with the stipulated timeline. However the Passport does not provide the details w.r.t to the dates of the same. /PDD/ /GSD/ CAR C1 B.1.2. If the project is a Micro Scale project, is a written statement included, that the project has not been announced for implementation without seeking carbon finance during the last 3 years? Not applicable, as the project is a large scale project. /PDD/ /GSD/ B.2 Additionality tool Check B.2.1. Is the Tool for the demonstration and The additionality argumentation is based on the Tool for /PDD/ Page A-24

25 Checklist items w.r.t. major aspects of project eligibility, additionality and SD assessment of additionality of the UNFCCC used in its currently available version? B.2.2. Is the tool in its totally used and are the additionality documents satisfactory? B.2.3. Are the main arguments reasonable and evidenced? B.2.4. Are all references up-to date and reliable? B.2.5. Is the project activity compared to the normal practice in the region? COMMENTS the demonstration and assessment of additionality version 6. As per the additionality tool, the project activity has demonstrated the investment analysis to prove additionality. Benchmark analysis has been chosen and calculated project IRR as 9.81% which is less than the benchmark 12.75% (Prime Lending Rate). All the references and sources referred in the registered PDD (CDM registered) for additionality demonstration were checked again and found to be valid. The main argument proving the additionality is the investment analysis through benchmark analysis approach showing that the IRR 9.81% is less than the benchmark 12.75% which is the commercial lending interest rate in India.Thus the project in absence of CDM is financially non-feasible. Hence the project is additional. All the evidences supporting the investment analysis and the benchmark were checked again and found to be valid. All the evidences supporting the investment analysis and the benchmark were checked again and found to be upto date and valid. Yes, the project activity is compared to the common practice in the region. The prevailing practice in Andhra Pradesh state of India has been demonstrated in the registered PDD. Ref. /UNFCCC/ /PDD/ /PDD/ /UNFCCC/ /IRR/ Draft Concl. Final Concl. /PDD/ /PDD/ /PDD/ /GSD/ /IM01/ Page A-25

26 Checklist items w.r.t. major aspects of project eligibility, additionality and SD B.2.6. Are all assumptions (quantitative or qualitative) used to demonstrate the additionality conservative? B.3 ODA Additionality check B.3.1. Is a clear and transparent financing plan submitted which allows an assessment of whether the project financing includes ODA? COMMENTS The assumptions used to demonstrate additionality through investment analysis were verified to be appropriate and conservative. There is no Official Development Assistance (ODA) in this project and the project will not receive any public funding from Parties included in Annex I. Ref. Draft Concl. Final Concl. /PDD/ /PDD/ /GSD/ B.3.2. Is ODA used for the project activity and if yes is the funding eligible for the GS? B.4 Conservative Approach Check Refer B.1.9 /PDD/ /GSD/ B.4.1. Is the baseline methodology described and the choice of the baseline scenario substantiated? The project activity applies the small scale methodology AMS ID version 16. The selection of the baseline scenario was verified already in the course of CDM validation. The baseline under the applied methodology AMS I.D is calculated by multiplying the combined margin (kgco 2 /kwh) and the net electricity exported (in kwh) /PDD/ /GSD/ Thus the identified baseline scenario of electricity grid supplying equivalent amount of electricity emerges as the most likely scenario. As the project activity is supplying power to the southern regional grid, the baseline for this project activity is the function of the generation mix of southern regional grid of India. Page A-26

27 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Concl. Final Concl. B.4.2. Are there any legally binding regulatory instruments? NO. /PDD/ /GSD/ B.4.3. Are evidences provided to assess whether the project activity is not considered as normal practice? The sections B.2, B.4 and B.5 in the PDD are addressing the normal practice in the country. Sufficient references were given in the PDD to assess that the prevailing practice in India is the continuous use of power from grid which is dominated by fossil fuels. /PDD/ /IM01/ /EF/ B.4.4. Is leakage to be considered? As per the methodology AMS ID, leakage is not considered. /PDD/ /IM01/ /AMS ID/ B.4.5. Is the most convincing and conservative baseline scenario selected? The only one possible baseline scenario which would have likely happened in absence of project activity is the production of equivalent amount of electricity from power plants that are connected to Southern Regional grid of India which has been cross verified during interviews with site personnel. /PDD/ /GSD/ IM01/ /EF/ The Calculation of emission factor (EF) for the Indian power grid is based on the published document CEA named CO 2 Baseline Database for the Indian Power Sector - Version 6.0. The same was checked from the website B.5 Technology Transfer and/or Technology Innovation Check Page A-27

28 Checklist items w.r.t. major aspects of project eligibility, additionality and SD B.5.1. Will there be any transfer of knowledge or innovation of technology in the host country of project implementation and are the benefits of the transfer substantiated? COMMENTS There are benefits for the project activity due to knowledge innovation in the project technology. However there is no technology transfer involved. The project technology is available in the host country. Benefits results from - The technology transfer to rural area - Intensive qualification and training of the local staff of the plant. - Exchange of information with other poultry based power plant developers in the private sector and promotion of development in renewable energy sector. Ref. /PDD/ /GSD/ /IM01/ Draft Concl. Final Concl. C. Sustainable Development Screen The project s contribution to sustainable development is assessed C Sustainable Development Assessment C.1.1. Does the project activity clearly demonstrate benefits in terms of SD, based on Local / global environment sustainability Social sustainability and development Economic and technological development? Yes, in section A.2 and A.4 of the PDD as well as in the GS passport the benefits of local, global, social economical and technological development are described. The project contributes to better air quality, access to affordable and clean energy services and quantitative employment Since the project is renewable energy project. It leads to /PDD/ /GSD/ Page A-28

29 Checklist items w.r.t. major aspects of project eligibility, additionality and SD C.1.2. Are all statements in the SD Assessment Matrix based on existing sources and referenced? COMMENTS lower GHG emissions by producing electricity with a renewable source thus substituting electricity produced in country to a large extent by fossil fuel. The validation team has assessed the selection of sustainability indicators as appropriate The SD matrix has been developed based on existing sources of information, which includes data from existing reports and results from stakeholder consultations. The sources such as EIA, DPR were checked in respect to the justifications provided. Stakeholders comments were also checked in respect to the same. However following issues are identified; The relevant reference of MGD has been given without identifying the actual applicable sub-section which lead to information being non-transparent The Impacts on the following indicators needs to be detailed; Ref. /GSD/ Draft Concl. CAR F1 CAR F2 Final Concl. CAR F1, CAR F2 closed The explanation for air quality The impacts on water quality The impacts described on biodiversity has no relevance to the MDG. For Quality of Employment: The mitigation measure the details in the mitigation, relevance to MDG and explanation provided are unrelated. Human and institutional capacity: no information is provided, thus it is not clear how the indicator is not Page A-29

30 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS applicable to the project. Technology transfer and technological self reliance: no information is provided, thus it is not clear how the indicator is not applicable to the project. Ref. Draft Concl. Final Concl. C.1.3. Is the scoring transparent and verifiable? The scoring as mentioned in the SD matrix was justified with supporting documents such as FSR and other legal documents. Moreover the scoring done by stakeholders against each indicator of sustainable development was checked from the LSC documents. Thus the scoring was assessed to be transparent and verifiable except for air quality which is not transparently demonstrated, pending CAR F2 /GSD/ /DPR/ /BAR/ /MoM/ /SC/ Pendi ng CAR F2 CAR F2 closed C.1.4. Are all SD indicators discussed during stakeholder consultation? The GS Passport and LSC report does not provide any information about how the indicators and impacts were discussed with the stakeholders. /GSD/ CAR F3 CAR F3 closed C.1.5. Are all points considered relative to the baseline scenario? All considered changes are relative to the baseline situation /GSD/ C.1.6. Scoring requirements: Have all components a non-negative subtotal score? Is the total score positive? No negative impacts are expected during the normal operation of the project. The scoring of the SD matrix meets eligibility requirements for GS projects. No negative scoring is determined. /GSD/ Page A-30