GS VALIDATION & VERIFICATION REPORT

Transcription

1 GS VALIDATION & VERIFICATION REPORT 4.5 MW BIOMASS (LOW DENSITY CROP RESIDUES) BASED POWER GENERATION UNIT OF MALAVALLI POWER PLANT PVT LTD, INDIA REPORT NO REVISION NO. 01 DET NORSKE VERITAS

2 VALIDATION OF THE 4.5 MW BIOMASS (LOW DENSITY CROP RESIDUES) BASED POWER GENERATION UNIT OF MALAVALLI POWER PLANT PVT LTD PROJECT: DNV CERTIFICATION'S ASSESSMENT TOWARDS THE GOLD STANDARD DNV Certification Ltd (DNV) has performed a validation and verification of the 4.5 MW Biomass (low density Crop Residues) based Power Generation unit of Malavalli Power Plant Pvt Ltd, project (hereafter called the project ). This scope of this validation and verification has also included an assessment of the additional criteria presented in the Gold Standard for CDM project, as described in the additional PDD annexes provided for the project activity by Malavalli Power Plant Private Limited (MPPL). As the UNFCCC is not recognising that issues not related to specific UNFCCC requirements be included in CDM validation and verification reports, the findings and conclusions on the project s compliance with the Gold Standard is recorded in this document. However, this document must be seen in conjunction with the validation report and protocol for the project (DNV Report No: , rev. 02), verification/certification report for the project (DNV Report No: , rev. 02) as well as the final project design documentation of February The following Gold Standard criteria are assessed by DNV: Gold Standard Project Type Eligibility Screen The objective of the project is to reduce anthropogenic GHG emissions by displacing fossil fuel based electricity generation with environmentally sustainable resource such as low-density crop residues comprising primarily cane trash, toppings of plantation wood and coconut fronds. The biomass belongs to the category agro-processing and other residues and the same is not deemed to be genetically modified. It has also been confirmed by DNV that the project activity is not designed to use any fossil fuel such as coal. The project category I.D., as defined under the Simplified Modalities and Procedures for Small-Scale CDM Project Activities, is eligible under the Gold Standard activities (ecologically sound biomass, biogas and liquid biofuels). Previously announced projects screen The project proponent has confirmed that the project has not previously been announced as anything other than a CDM activity. As indicated in the validation report, MPPL visited SENTER in April 2001 and also obtained the CERUPT tender documents, but the same could not be successfully pursued on account of lack of clarity in procedural Page 2

3 approvals at that time. The late application for CDM validation though, is due to lack of institutional guidance and procedural clarity in 2000/2001 on the CDM formalities. UNFCCC Additionality Tool (EB 16 Report Annex 1, Version 02) The project proponent has applied UNFCCC s Tool for the demonstration and assessment of additionality Step 0: The construction of the project activity started in April 2000 and it has been verified by DNV that the plant has been commissioned in August MPPL pursued CDM finance possibilities in early 2001 by approaching SENTER (Dutch CDM/JI purchase program). DNV was able verify the same through the evidences of communication between MPPL and SENTER and the tender document for participation. STEP 1: Three alternatives to the project activity have been identified. Proposed project activity without CDM incentives A 8MW standard biomass power plant firing mill residues (rice husks, bagasse) / wood in place of the project activity Electricity delivered from the state grid All alternatives fully comply with all the applicable legal and regulatory requirements. STEP 2: Not chosen STEP 3: The project proponent has presented their case on the following barriers: investment and technological barriers as well as barriers due to prevailing practice. The validation report by DNV has addressed these barriers and concluded positively on these. STEP 4: Common practice analysis: It has been demonstrated that the common practice is the continued reliance of power from the state grid sourced primarily from thermal and hydro sources. STEP 5: Approval and registration of the project activity will enable: The project proponent to overcome the project funding gap and the current liquidity crisis Overcome the technological barriers Sustain the rural community initiatives through stakeholder participation, employment generation and capacity development Therefore, in the absence of CDM funds, it is apparent that MPPL would not have envisaged such a non-standard biomass plant and would not continue operation with recurring losses ODA additionality screen: No public funding is involved in the project, and the validation did not reveal any information that indicates the project to be seen as a diversion of ODA funding Page 3

4 Conservative Approach As indicated in the validation report the project applies one of the simplified baseline methodologies proposed for the small-scale project activity category I.D, i.e., for renewable energy that displaces electricity, the simplified baseline is the electricity consumption times the relevant emission factor calculated as the kwh produced by the renewable generating unit multiplied by an emission coefficient (measured in kgco 2 /kwh). As addressed under the Tool for the demonstration and assessment of additionality, it has been established that the most plausible baseline scenario is the continued reliance of power from the state grid. As the project activity is feeding power to Karnataka state electricity grid, which is a part of southern region electricity board, the baseline for this project activity is the function of the generation mix of southern region grid. Using the methodology available for smallscale project activities as applicable for category I.D, the simple weighted average of current generation mix (in kgco 2 equ/kwh) of southern grid of India has been used for the calculation of the baseline. The generation data for the year 2001 (the year in which the present project started its generation) is considered as the basis for designing the baseline and has been estimated to be kg CO 2 e / kwh (fixed ex-ante). Technology transfer and knowledge innovation DNV has been able to confirm that the project activity has resulted in technology and knowledge innovation, primarily through creation of a not for profit society Grameena Abhivrudhi Mandali which is responsible for managing the biomass supply chain, organic fertiliser distribution as well as provide sub-contract services to MESCOM (local electricity distribution utility) implementation of a 100% ash utilization scheme involving the production of organic fertilizer and distribution to farmers from whose fields the crop residues were collected training of skilled labour to operate and maintain the power plant with emphasis on avoiding slagging and corrosion problems caused by the fuel properties of lowdensity crop residues in the boiler. Sustainable Development Assessment The sustainable development assessment conducted for the project activity has been based on C. Sutter s case study in 2003 ( Using data from Sutter (2003) MPPL has conducted additional analysis and presented the Gold Standard sustainable development assessment matrix. Page 4

5 DNV has been able to validate the indicators through active interaction with members of the Grameena Abhivrudhi Mandali. This is a not for profit society that has been created by the project proponents involving the village panchayat and the local populace. Through the Grameena Abhivrudhi Mandali the local population become the direct beneficiaries of the project. The society is responsible for managing the biomass supply chain, organic fertiliser distribution as well as provides sub-contract services to MESCOM (local Electricity Distribution Utility). The supervisory/governing boards of Grameena Abhivrudhi Mandali have nominated members from the Taluka Panchayat and Grama Panchayat. Interaction with the members revealed that due to the project activity there has been no displacement of local population there has been increased job opportunities there has been reliable power supply in the area. The Gold Standard sustainable development matrix addresses the development indicators as relevant for the project activity. MPPL s determination that none of the indicators have a score of -2, there is no negative sub-total, and that the total score is positive is at 17 is deemed appropriate. The project is clearly contributing to sustainable development and the criteria identified are sufficiently substantiated. In DNV s opinion, the sustainable development criteria identification process and the subsequent results are in full compliance with the Gold Standard criteria. There is no requirement for an EIA for this project. Gold Standard Initial Stakeholder Consultation Under Indian Legislation, local stakeholder consultation process for such biomass based power projects is not warranted. MPPL has organised meetings and direct consultation through an independent consultant on 11 November 2005, with identified stakeholders as per the Gold Standard initial stakeholder consultation requirements. Identified representatives have been the power plant management workforce, biomass suppliers, local panchayat (government) representatives, consumers of electricity from the industry and households and members of the Grameena Abhivrudhi Mandali. From the presented documentation to DNV it is clear that the stakeholders identified and the procedures and outcomes are adequate. All identified stakeholders have welcomed the project and no adverse comments have been received. Gold Standard Monitoring Criteria Only particulate emission levels need to be monitored additionally, to what has already been indicated in the monitoring plan of the registered PDD. The project has otherwise all the necessary approvals from the Karnataka state pollution control board. Page 5

6 GS Verification It is been confirmed through scrutiny of records that the particulate emission levels from the stack are well within the stipulated levels of 150 micrograms/nm 3, monitored and analysed by a third party laboratory on a monthly basis. Det Norske Veritas Certification Ltd. is able to certify that the emission reductions from the 4.5 MW biomass (low density crop residues) based power generation unit of Malavalli Power Plant Pvt Ltd. for the period 01 August 2001 to 30 June 2006 amount to tco 2 equivalent. Einar Telnes Director Climate Change Services DNV Certification Page 6