GOLD STANDARD PASSPORT

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1 GOLD STANDARD PASSPORT CONTENTS A. Project title B. Project description C. Proof of project eligibility D. Unique Project Identification E. Outcome stakeholder consultation process F. Outcome sustainability assessment G. Sustainability monitoring plan H. Additionality and conservativeness deviations Annex 1 ODA declaration 1

2 SECTION A. Project Title Canela Wind Farm Project Project SECTION B. Project description Canela Wind Farm is a wind park station project located in the fourth region of Chile and being developed by Endesa Eco 1. The installation has an installed capacity of MW and relies on wind energy to generate electricity for the SIC 2. The purpose of the project is to generate electricity from renewable wind resources along the coast of Chile. Additionally, the project was pioneer in the generation of electricity from wind power in the SIC as it was the first wind farm to enter the energy mix in the largest interconnected electricity system in Chile (SIC). Canela Wind Farm Project reduces greenhouse gas emissions produced by thermal electric plants using fossil fuels that are currently in operation in Chile. With an annual generation of 47,698 MWh, the Project reduced emissions by 27,251 tons of CO 2 e. In April 3 rd 2009, Canela Wind Park has achieved registration under the Clean Development Mechanism of the Kyoto Protocol. Moreover, the Project complies with environmental health and safety requirements as its certification in ISO and OHSAS shows. Endesa Eco had several goals associated with the development of the Canela Wind Farm Project. First and foremost, Endesa Eco had the goal of utilizing the vast renewable wind resources along Chile s coast, which until this point have been virtually untapped. Second, Endesa Eco aimed at advancing the use of non conventional renewable energy technologies, which are currently perceived as high risk. By developing and operating the first wind farm in Chile connected to the SIC, Endesa Eco demonstrated to energy developers the numerous benefits of wind power development in Chile. Furthermore, by building local experience in wind power, the project created a track record and reduced barriers to entry like prevailing practice and risk perception. Third, Endesa Eco had the goal of facilitating sustainable development in the region through the utilization of renewable energy, technology transfer, employment opportunities and community development. 1 EndesaEco is a subsidiary of Endesa Chile. 2 Sistema Interconectado Central 2

3 Many of the benefits of wind energy are strategic and long term, and are therefore difficult to quantify. However, the utilization of renewable energy in Chile is critical for the reduction of greenhouse gases as well as the diversification and sustainability of the energy sector. Canela Wind Farm has proven the wind technology in Chile, thereby facilitating future investments in this technology. The wind farm activity contributes to the sustainable development of Chile in several ways: By utilizing the abundant and natural wind resources in Chile the wind farm generates electricity with a technology that does not produce emissions of harmful gases or effluents. By employing a non-conventional technology, the installation contributes to technology transfer. Additionally, it creates local know-how related to the installation and operation of wind turbines. Canela Wind Farm contributes to Chile s energy independence by taking advantage of its natural and renewable wind resource. By developing experience with wind power, the wind farm reduces the barriers to development currently associated with wind. The installation generated direct and indirect jobs. Specifically during construction phase where it has employed a maximum of 300 people per month and an average of 160. From this figure, most of the unskilled workers, who make up 45% of the total labour requirements, were employed from the surrounding areas: Canela, Los Vilos and Illapel. As part of the project, a scenic viewpoint was created so that tourists and passersby are able to enjoy the view of the wind farm. In order to assure the environmental and safety performance of the project once in operation, Endesa Eco had implemented ISO and OHSAS standards with their respective certification. Accident insurance and health care for workers were a prerequisite for contractors who managed the project construction and therefore were provided to all labourers working on the project s construction. Before Endesa Eco awards a contractor a contract, they must provide proof of their insurance and health care policy. Note: As Canela Wind Farm project is applying for retrospective pre-cdm VER for the period 03/04/ /04/2009, we already know the real amount of electricity generated by the wind park which was 31,432 MWh. Therefore, using the Baseline Emission Factor with combined margin (EF = 0.57 tco2e / MWh) from the PDD, the emissions reductions for that period were 17,958 tco2e / MWh 3

4 SECTION C. Proof of project eligibility C.1. Scale of the Project Project Type Large Small X C.2. Host Country Chile 4

5 C.3. Project Type Project type Yes No Does your project activity classify as a Renewable Energy project? X Does your project activity classify as an End-use Energy Efficiency Improvement project? X The project activity is a wind sourced power generation that supplies zero-emissions renewable energy to the grid. Pre Announcement Yes No Was your project previously announced? X Explain your statement on pre announcement No public announcement has been made of Canela Wind Farm Project going ahead without CDM. 5

6 C.4. Greenhouse gas Greenhouse Gas Carbon dioxide X Methane Nitrous oxide C.5. Project Registration Type Project Registration Type Regular Pre-feasibility assessment Retroactive projects (T.2.5.1) Preliminary evaluation (eg: Large Hydro or palm oil-related project) (T.2.5.2) Rejected by UNFCCC (T2.5.3) X If Retroactive, please indicate Start Date of Construction: 08/02/2007 6

7 SECTION D. Unique project identification D.1. GPS-coordinates of project location Vertex N-E Vertex N-W Vertex S-E Vertex S-W N E N E N E N E The wind farm is located in the Canela community, Choapa province, IV Region of Coquimbo, 80 km north of Los Vilos and 295 km north from Santiago. D.2. Map Figure 1 Geographical location of the Canela Wind Farm Project 7

8 SECTION E. GOLD STANDARD PASSPORT Outcome stakeholder consultation process E.1. Assessment of stakeholder comments As indicated in PDD, there have been no formal comments submitted by any of the stakeholders regarding this project. Many of them had questions about the benefits of the project for the local community, and they were addressed at the meeting. Overall, the stakeholder consultation was a positive event with stakeholders being informed about the project activities. All comments made by Canela residents were recorded by the consultation event organizers. Questions were answered immediately during the discussion period. Brief description how comments by local stakeholders have been invited and compiled: The consultation took place on May 29th 2007 in order to present to the project stakeholders the basic concepts related to climate change, the Kyoto Protocol and its consequences, as well as the most important features of the project undertaken by Endesa Eco. Invitations were sent to the local community, local authorities and environmental NGOs. Community members were invited individually by letter, requesting their attendance at the consultation event. In addition an open invitation for the public was posted in the community of Canela where the wind farm is now operating. The event consisted of a presentation by Endesa Eco representatives addressing climate change issues, the operation of the Clean Development Mechanism, and the main features and impacts of the Project activity. The stakeholder consultation also included a brief description of the project and its benefits by the Project Proponent, as well as presentations by the Project Developer including: technical details of the project, presentation of the DIA (the Environmental Impact Declaration) and explanation of environmental aspects; climate change and the project s contribution to greenhouse gas mitigation; and a question and answer session. Summary of the questions and comments received: To date no formal comments have been received from stakeholders. However, during the public consultation stakeholders raised various questions regarding the project activity and its potential benefits for the community of Canela The main questions posed by the participating stakeholders were related to: 1) Possible hazard to the avifauna from the installation of the aero-generators. The Project Developer explained that the wind farm site is not located near any migratory routes for bird species. As a precautionary measure to prevent potential hazards to avifauna the Project Developer indicated that the blades of the aero-generators would be painted in red colour lines. This measure draws the attention of birds and therefore prevents potential collisions. 8

9 2) The fencing of the wind generation equipment in order to separate it from surrounding pasture land. Regarding this concern the Project Developer explained that cattle would continue to have access to the surrounding pastureland, the fence would only isolate the wind generation equipment from the road, and would not impede otherwise the normal circulation of cattle in the surrounding pastures 3) Integration of the local community into tourism programs that the project promotes including a sightseeing platform. Local community members believed that the project would become a tourist attraction and saw it as an opportunity to offer local products for sale to visitors (i.e. organic produce, etc.) E.2. Stakeholder Feedback Round The Stakeholder Feedback Round will be organised following the guidance provided in the pre-feasibility assessment SECTION F. Outcome Sustainability assessment F.1. Do no harm Assessment Safeguarding principles Description of relevance to my project Assessment of my project risks breaching it (low/medium/high) Mitigation measure 1.- Anticorruption Favouritism in the allocation of contracts, jobs and proceeds from revenues paid by the project Low Merit-based contracting and employment 9

10 2.- Environmental Protection Dust generation during the construction phase of the project low - Continuous wetting of non-paved roads or Addition of CaCl 2 for dust control. - Use of covers and closed truck for transportation of materials - Speed restriction for trucks to 40 km/h (loaded) and 30 km/h (unloaded) Combustion gases from vehicles and machinery during the construction low - Periodical maintenance of vehicles and machinery according to manufacturer dispositions and conducted by authorized entities. - Compliance with national car emission levels regulations - During construction phase portable chemical toilets (approved by respective regulatory entity) were used. - During project operation, domestic waste water was collected and treated in an activated sludge waste water treatment plant. Domestic waste water generated during construction and operation low Industrial liquid waste from construction machinery and maintenance of wind generators Solid waste during project construction low - Managed according to respective regulation, including collection, treatment, storage, transportation and final disposal (D.S. Nº 148, Hazardous Waste Management Standard ) low - Managed according to respective regulation: collection, treatment, storage, transportation and final disposal And D.S. N 594 Basics Sanitary & Environmental Conditions in the Workplaces ) Domestic solid waste during Project operation low - To be collected and disposed by the local waste management company. Flora low - Few effects are observed in native flora. The area where the project is being constructed is a private property previously used for cattle grazing. Most of its vegetation is made of exotic pastures. In the case of native species, where its extraction cannot be avoided, they have been transplanted. Areas where vegetation has been removed, and whenever feasible, were replanted after project construction, 10

11 Fauna low - Regarding the avifauna, the main birds migration routes in Chile have been identified and the wind farm does not interfere with these routes. Additionally, the low speed and markings of the blades allows birds to identify the generators avoiding collisions. In the case of mammals, no considerable effects are observed with the exception of the rodent specie called Spalacopus cyanus cururo. Special procedures have been used in the case of interference with an active colony. Since the species are constantly migrating in search of food a process on induced migration to nearby areas, supervised by the adequate professionals, has been applied. The species are not considered as endangered species under the Chilean regulation. 3.- Human rights Potential corrosion of cultural identity Low Awareness raising activities Project activity may impact on cultural sites and land use Low Early identification and avoidance of sites, compensation for damage, no fencing off of project area Discrimination regarding access to project information and jobs Low Merit-based employment Dissemination and public access to project information 4.- Labour standards Occupational health and safety standards may not be upheld (exposure to hazardous working conditions or material) Low Health and safety training and measures (including emergency plans) in place Job security, remuneration and means for redress may not be adequate Low Adherence to international best practice (OHSAS ) 11

12 As discussed above Canela Wind Farm Project will not have considerable sustainability impacts, Those existing are adequately mitigated. Moreover, it has complied with the respective national and regional environmental regulation, as indicated in the Environmental Impact Statement (DIA) approved by the Chilean Environmental Authority (CONAMA). Additionally, as indicated in the approved DIA, Endesa Eco has engaged in additional environmental commitments, such as demanding its subcontractors the designation of a person responsible of environmental issues, and certifying the wind farm operation under ISO and OHSAS F.2. Sustainable Development matrix Indicator Gold Standard indicators of sustainable development. Mitigation measure If relevant copy mitigation measure from "do no harm" table, or include mitigation measure used to neutralise a score of Relevance to achieving MDG Check g and org Describe how your indicator is related to local MDG goals Air quality. This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability. Chosen parameter and explanation Defined by project developer Concentrations and Emissions of NOx and SOx The project has positive impacts on air quality associated with using clean energy. By replacing fossil fuel, the project contributes to air quality by decreasing SOx, NOx etc. country levels. Prelimin ary score Negative impact: score - in case negative impact is not fully mitigate score 0 in case impact is planned to be fully mitigated No change in impact: score 0 Positive impact: score

13 -Continuous damping of nonpaved roads or adding CaCl 2 for dust control. - Use of covered closed trucks for transportation of materials - Speed restriction for trucks to 40 km/h (loaded) and 30 km/h (unloaded) Concentrations and emissions of dust during the construction phase of the project 0 Water quality and quantity -During construction portable chemical toilets (approved by respective regulatory entity) were used. - During project operation, domestic waste water was collected and treated in an activated sludge waste water treatment plant. This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability, particularly with indicator 7.5 Proportion of total water resources used. This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability. Quantity of water used During operation, wind farms do not use water for electricity generation, only consumption of drinking and sanitary water. Compared to existing thermal power plants in Chile, Canela Wind Farm contributes to reduce water consumption and pollution. Level of domestic waste water generated during construction and operation

14 -Managed according to respective regulation, including collection, treatment, storage, transportation and final disposal (D.S. Nº 148, Hazardous Waste Management Standard ) Level of Industrial liquid waste from construction machinery and maintenance of generators 0 Soil condition Managed according to respective regulation: collection, treatment, storage, transportation and final disposal and D.S. N 594 Basics Sanitary & Environmental Conditions in the Workplaces This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability. Solid waste generated during project construction 0 Biodiversity - In the case of native species, where its extraction cannot be avoided, they have been transplanted - Areas where vegetation was removed, was re-planted after project construction. Natural flora habitat, alteration or destruction. 0 14

15 - The main bird migration routes in Chile have been identified and the project does not interfere with these routes. Additionally, the low speed and marking the blades allows bird to identify the generators and avoid collisions. This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability. Natural birds habitat alteration 0 - Special procedures have been used in the case of interference with an active colony. Since the species are constantly migrating in search of food a process on induced migration to nearby areas, supervision by adequate professional have been applied. The specie is not considered as endangered species under the Chilean regulation. This indicator is related with 7 MDG Goal: Ensure Environmental Sustainability. Natural Spalacopus cyanus Cururo habitat, alteration 0 Total Score Environment: + 15

16 Quality employment of This indicator is related with MDG Goal 1 Eradicate Extreme Poverty and Hunger, particularly with Target 1.B: Achieve full and productive employment and decent work for all, including women and young people. OHSAS certification Increasing quality of employment in the area because the Canela Wind Farm is certified by OHSAS ( (Occupational Health and Safety Management Systems) + Livelihood of the poor This indicator is related with MDG Goal 1 Eradicate Extreme Poverty and Hunger, particularly with Targets 1.A: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day and 1.B: Achieve full and productive employment and decent work for all, including women and young people. Poverty alleviation The Project has created household income for the local residents by creating employment opportunities in two ways: - Directly, during the construction and operation of the wind farm. - Indirectly, because Canela Wind farm has generated economic activity, increasing the tourism rate in the area around the plant (a viewing point was created). + The project contributes to diminish the percentage of 14% of poor households in the Commune of Canela. Access to affordable and clean energy services Change in traditional fuel consumption Canela Wind Farm leads to increased availability of energy from renewable sources reducing Chilean dependence on fossil fuels. + 16

17 Human and institutional capacity GOLD STANDARD PASSPORT This indicator is related with MDG Goal 2: Achieve Universal Primary Education particularly with Target 2.A: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling Net enrolment ratio in education The Energía para la Educación Program supports, among others, the development of five educational establishments in the Canela commune. Canela Project is involved in the scholastic management, through monetary supports for professors and delivering material and services (libraries, sport implementation, laboratories, etc.) + Total Score Social Development: + Quantitative employment and income generation This indicator is related with MDG Goal 1: Eradicate Extreme Hunger and Poverty particularly with Target 1.B : Achieve full and productive employment and decent work for all, including women and young people Household Income generated from the project The project generated direct and indirect jobs increasing households income. Specifically, during the construction, the project used a maximum of 300 people per month with an average of 160. From this figure, most of the unskilled workers, who make up 45% of the total labour requirements, were employed from the surrounding areas: Canela, Los Vilos and Illapel. + 17

18 Balance payments investment of and Amount of domestic investment Canela Wind Farm contributes to reduce the consumption and imports of fossil fuel to Chile. At the same time, it implies direct national and bilateral investment in new technologies such as renewable energy. + Technology transfer and technological self-reliance This indicator is related with MDG Goal 8: Develop a Global Partnership for Development particularly with Target 8.F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Number of workshops, seminars organized, and training related opportunities held. Increase of the transference of new technologies, and improvement of the local know how regarding the use of the equipment, which leads to technological selfreliance.. + Total Score Economic and Technological Development: + Justification choices, data source and provision of references Air quality Water quality and quantity Soil condition Other pollutants Biodiversity PDD of Canela Wind Farm Project Project, Version 2, 24th of September, 2007 and Environmental Impact Statement of Canela Wind Farm. Environmental Impact Statement of Canela Wind Farm Environmental Impact Statement of Canela Wind Farm. Environmental Impact Statement of Canela Wind Farm. Environmental Impact Statement of Canela Wind Farm. 18

19 Quality of employment Livelihood of the poor Access to affordable and clean energy services Human and institutional capacity Quantitative employment and income generation Balance of payments and investment Technology transfer and technological self-reliance PDD of Canela Wind Farm Project Project, Version 2, 24th of September, 2007 and Endesa s Corporate Social Responsibility Statement PDD of Canela Wind Farm Project Project, Version 2, 24th of September, 2007 and Endesa s Corporate Social Responsibility Statement Endesa s Corporate Social Responsibility Statement, Endesa s Corporate Social Responsibility Statement. PDD of Canela Wind Farm Project Project, Version 2, 24th of September, Endesa s Corporate Social Responsibility Statement, Environmental Impact Statement of Canela Wind Farm Endesa s Corporate Social Responsibility Statement, contracts of sale and purchase, contracts of equipment, construction, services. PDD of Canela Wind Farm Project Project, Version 2, 24th of September, Endesa s Corporate Social Responsibility Statement, contracts of sale and purchase, contracts of equipment, construction, services. SECTION G. Sustainability Monitoring Plan No Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Way of monitoring How When By who Additional remarks monitoring 19

20 SECTION H. Additionality and conservativeness H.1. Additionality Compliance with the Tool for the Demonstration and Assessment of Additionality of the UNFCCC (version 3, EB 29) provides evidence that the project is additional. (see point B.1 and B.5 of PDD: More information about the tool can be found on the website: Identification of alternative scenarios, barrier analysis, investment analysis and common practice analysis have all been conducted as part of the PDD, to show that the project is additional.. H.2. Conservativeness The project follows CDM guidance in regards to conservativeness, through applying a CDM approved baseline and monitoring methodology and a conservative appraisal of greenhouse gas emission reduction estimates: ACM0002 (version 06, ): Consolidated baseline and monitoring methodology for grid connected electricity generation from renewable sources. More information about the methodology can be found on the website: 20

21 ANNEX 1 GOLD STANDARD PASSPORT ODA declaration This Project has not received and is not seeking any ODA funding Please find enclosed the signed ODA Declaration. 21

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