CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS

Transcription

1 page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan Attachment 1 : Minutes of Stakeholders meeting

2 page 2 SECTION A. General description of project activity A.1 Title of the project activity: 20 MW biomass based power project in Maharashtra, India Version: 01 Date : 01/08/2007 A.2. Description of the project activity: The proposed project activity is undertaken by Ind Barath Energies (Maharashtra) Ltd. The Project activity involves installation of a 20 MW biomass based power generation for a grid system by utilizing surplus biomass such as cotton & Redgram Stalks, rice husk and other crop.residues available in the project region. The generated power will be exported to the state owned Power utility Maharashtra State Electricity Board (MSEB). The project is located in Maharashtra State, Western region of India. The electricity would be generated through renewable biomass residues without causing any adverse impact on the environment. The proposed project activity is a renewable (biomass) energy based power generating project. The project activity utilizes renewable biomass residues for power generation, though Rankine cycle involving high pressure boiler and turbine Since, the biomass fuel is considered as carbon neutral in nature, the electricity generation from the project activity is considered as clean form of energy. The project activity exports the generated electricity to the western region grid system, which is highly dominated by thermal energy sources, thereby reduces the equivalent amount of emissions in to the atmosphere. The total biomass requirement for the project activity is estimated at 158,400 tonnes per annum. The project activity envisages to utilize the surplus agri-residues for power generation. The project activity would protect and conserve the local environment by avoiding unintended emissions from the decay and uncontrolled burning of biomass. The project activity would also reduce pressure and high dependency on the rapidly depleting fossil fuel resources for power generation. The generated power would be evacuated to Mukhed MSEB substation located at a distance of 6 km from the project location. The surplus power input to local substation would improve the quality of power in the region and ensures the economic development of the area. The Views of project participants of the contribution of the project activity to Sustainable development Govt. of India has stipulated the following indicators for sustainable development in the interim approval guidelines for CDM projects. a) Social well being b) Economic well being c) Environmental well being d) Technological well being

3 page 3 The proposed project activity would contribute to each of the above indicators as detailed below: Social and Economic Well being: The project activity would significantly contribute to the development of the region, as it is located in a rural area, where there are no vital resources to set up industries. The implementation of project activity would lead to economic development of the region through additional investment of about Rs. 720 million, which in the absence of the project activity would not have occurred. Project would generate employment to the local populace and improves the economic conditions and standard of living of the people. The generation of employment opportunities would reduce the rural unemployment and prevent migration from rural areas for survival. The project plant would utilize locally available biomass resources, namely, Agri-residues and renewable woody biomass residues (Juliflora) for power generation. The sale of biomass residues would improve the economic levels of farmers in as much as they would earn additional revenues, which, in the absence of this project would not have been possible. In addition to direct employment, project would also generate indirect employment to the local populace in collection, transportation and handling of biomass residues. This would improve the quality of life and contribute to the economic development of the region. The implementation of power project would encourage setting up of more industries in the region due to uninterrupted power supply in the region, thereby indirectly bringing in additional investments into the region and lead to overall socio-economic development. The power generated by the project would feed the nearest substation, thereby improves the quality of power and reduce load shedding, if not all together eliminate. Uninterrupted power would leads to increase the productivity of local industries and eventually contribute to the economic development of the region. Environmental well-being: The project activity would generate power through utilization of renewable energy sources, which could be regenerated unlike fossil fuel resources. Hence, it would reduce pressure and continuous dependence on the rapidly depleting fossil fuel resources for power generation. The biomass residues are carbon neutral in nature and hence no environmental problems would arise due to implementation of power project. The project activity would avoid unintended emission from uncontrolled burning and decay of biomass in the fields and indirectly protect the local environment from air pollution. Generation of power from renewable energy sources would reduce the GHG emissions in to the atmosphere; thereby support the climate change mitigation.

4 page 4 Technological well-being The project activity would lead to increase in utilization of biomass resources for power generation and contribute to the energy security in the country. The project activity would employ the state-of-the-art technology in biomass power sector and contribute to technology development in the region. The project activity would install new air cooled condenser, which would in turn lead to ensures the technological upgradation From the foregoing, it should be evident that the project activity would contribute to the social, economic, environmental and technological well being and in turn would contribute to sustainable development of the host country. A.3. Project participants: Name of the party involved ((host) indicates a host party) India (host) Private and /or public entity (ies) project participants (as applicable) Private entity: Ind-Barath Energies (Maharashtra) Limited. If the party involved wishes to be considered as project participant (Yes/No) No A.4. Technical description of the project activity: India A.4.1. Location of the project activity: A Host Party(ies): A Region/State/Province etc.: Maharashtra state, Nanded district A City/Town/Community etc: Mukhed taluk, Karab khandgaon village A Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The project is located at survey no. 162 to 170 Kharab Khandgaon village which is located at about 10 km from Mukhed Taluk head quarters and is adjacent to the road connecting Mukhed and Gadaga. The nearest major human settlement is Mukhed. The nearest rail head is Nanded, located at a distance of 60 kms. The nearest airport is Aurangabad, located at a distance of around 275 km from the project site. The geographical co-ordinates of project are given below:

5 page 5 Latitude : 18º Longitude : 77º The geographical location of the project is furnished below. Map1: Location of Maharashtra state in India Map2: Location of Nanded District in Maharashtra Location of Biomass based power project Map 3: Location of 20 MW Biomass based power project in Nanded district of Maharashtra

6 page 6 A.4.2. Category(ies) of project activity: The project activity involves generation of electricity using renewable energy resources. Hence, the project falls under the following category. Sectoral Scope: 1 - Energy Industries (renewable / non-renewable sources) A.4.3. Technology to be employed by the project activity: Technology description The technology proposed to be employed by the project activity is Rankine cycle, where the biomass is combusted directly in the boiler to generate steam. The boiler proposed for this purpose is travelling grate, which is capable of taking multi fuels and generates steam at high pressure and temperature, which is fed to a steam turbine, which in turn would drive the generator. The power project would install various power generating and auxiliary equipment for the purpose. The equipment along with their specifications proposed to be installed by the project are provided in the following table. The technology adopted for the project is environmentally safe as the project activity is not likely to have any negative impact on the environment. The technology is also sound because the same is being practiced successfully in the biomass power sector. The capacity of the turbo generator is 20 MW, which would generate electricity at 11 kv level. It is anticipated that the plant can operate at a plant load factor of 80%, with a net power export of GWh to the grid system per annum, after accounting for auxiliary consumption. Table 1: Technical details of the project activity Boiler Type Travelling grate Combustion Boiler Boiler capacity (100 % load) / Steam Flow rate 85 tons / hour Steam pressure at super heater outlet 65 kg/cm 2 Steam temperature at super heater outlet 485 o C Water requirement 115 m 3 / hour Turbo Generator Type Reaction, extraction cum Condensing, type Steam pressure at the TG inlet 65 kg/cm 2 Steam temperature at the TG inlet 485 o C Steam inlet quantity 75 tons/hour Generator Voltage 11 kv Frequency 50 Hz Power factor 0.8 RPM 1500 Condenser type Air cooled Power evacuation Grid Voltage 110 kv MSEB Sub station Mukhed, 6 km from plant

7 page 7 Energy production Gross power 20 MW Auxiliary consumption (10%) 2 MW Net power for export 18 MW Auxiliaries Fuel handling Conveyer Demineralization plant capacity 6 m 3 / hour Bottom ash handling belt conveyer Fly ash handling Screw conveyer Cooling tower Flow induced draft cooling towers Air compressor 5-6 kg/cm 2 Technology Transfer No technology transferred is envisaged for the CDM project activity. A.4.4 Estimated amount of emission reductions over the chosen crediting period: The chosen crediting period for the project activity is 10 years. The total emission reductions estimated for the crediting period is 677,800 t CO 2 e and the average annual emission reductions are estimated at 67,780 t CO 2 e. Information on the emission reductions are indicated using the following tabular format: Years Annual estimation of emission reductions in tonnes of CO 2 e , , , , , , , , , ,780 Total estimated reductions (tonnes of CO 2 e) 677,800 Total number of crediting years 10 Annual average over the crediting period of 67,780 estimated reductions (tonnes of CO 2 e) A.4.5. Public funding of the project activity: No public funding from Annex I parties is involved in the project activity.

8 page 8 SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: Title: Consolidated methodology for electricity generation from biomass residues Reference: ACM Version 05, EB 31 The above approved methodology draws upon the following methodologies and tools - The latest version (06) of Consolidated baseline methodology for grid-connected electricity generation from renewable sources - ACM 0002 for baseline emission factor and, - The latest Version (03) of the Tool for demonstration and assessment of additionality for additionality. B.2 Justification of the choice of the methodology and why it is applicable to the project activity: The project activity involves installation of a new biomass residue fired power plant at a site, where currently no power generation occurs. The project is an independent plant generating power through biomass residues supplied from the nearby area or a market and meets the applicability criteria set in the approved consolidated baseline methodology ACM 0006 as described below. a) No other biomass types than biomass residues, as defined in the baseline methodology, are used in the project plant and these biomass residues are predominant fuel used in the project plant. The project activity may co-fire some fossil fuel when required and the same would be subjected to the guidelines of Ministry of New and Renewable Energy and other related guidelines if any. The project activity would utilise crop residues such as cotton stalks, Red gram stalks etc., and would not use any municipal waste or other waste that contain fossilized or non-biodegradable material. b) The project activity would use the available biomass residues from a production process and the implementation of project would not result in an increase in processing capacity of raw input by the respective plants or substantial change in the process, as the project would consume only the surplus biomass available in the region. c) The biomass residue used by the project facility would not be stored for more than a year, since the project would run on a continuous basis through out the year. As the project consumes the biomass residues on first come first serve basis, there is no possibility of storing the procured biomass for more than a year. d) No significant energy quantities except from transportation or mechanical treatment of the biomass residues are required to prepare the biomass residues for fuel combustion in the project activity.

9 page 9 The project activity, therefore, satisfies all the applicable criteria described above. Hence, the methodology ACM 0006 is applicable to the project activity. B.3. Description of the sources and gases included in the project boundary The project boundary is depicted in the following figure. Geographical boundary: Fig. 1: Project Boundary The geographical boundary considered for the project activity is District of Nanded, which falls with in a radius of about 75 Kms from the power plant location. The geographical boundary is the maximum possible distance for collection of biomass residues for power generation. The project boundary encompasses the power plant at the project site, the transportation of biomass to the project site and all power plants connected physically to the electricity system that the project activity is connected to. Gases and sources As per the above baseline grid and project boundaries, the greenhouse gases generated and gases considered within the project boundary are given in the following table. Some of them are negligible and some are CO 2 neutral. The gases and sources related to both baseline and project activities are summarised below.

10 page 10 Baseline Project Source Gas Included or Justification/Explanation excluded? CO 2 Included Main emission source Grid electricity generation CH 4 Excluded Excluded for simplification N 2 O Excluded Excluded for simplification Uncontrolled burning or decay of surplus biomass CO 2 Excluded It is assumed that CO 2 emissions from surplus biomass residues do not lead to changes of carbon pools in the LULUCF sector. residues CH 4 Excluded Excluded for simplification N 2 O Excluded Excluded for simplification Onsite fossil fuel consumption due to the project activity (Stationery or mobile) Combustion of biomass residues for electricity generation Off-site transportation of biomass residues Storage of biomass residues CO 2 Included Important emission source CH 4 Excluded Excluded for simplification N 2 O Excluded Excluded for simplification CO 2 Excluded It is assumed that CO 2 emissions from surplus biomass residues do not lead to changes of carbon pools in the LULUCF sector. CH 4 Excluded Excluded for simplification N 2 O Excluded Excluded for simplification CO 2 Included Important emission source. N 2 O Excluded Excluded for simplification CH 4 Excluded Excluded for simplification CO 2 Excluded It is assumed that CO 2 emissions from surplus biomass residues do not lead to changes of carbon pools in the LULUCF sector. CH 4 Excluded Excluded for simplification N 2 O Excluded Excluded for simplification For the purpose of determining the baseline electricity emission factors, spatial extent includes all plants connected to the western region grid system. B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: The application of the methodology involves identification of a baseline scenario, demonstration of additionality and estimation of baseline emissions, project emissions and leakage as per the guidelines set out in the ACM According to the Baseline Methodology of ACM 0006 (version 05) realistic and credible alternatives should be separately determined regarding:

11 page 11 o How power would be generated in the absence of the CDM project activity; (power baseline) o What would happen to the biomass residues in the absence of the project activity; and (Biomass baseline) o In case of cogeneration projects: how the heat would be generated in the absence of the project activity. (Heat baseline) The project activity is an independent biomass based power generation plant. Hence, the heat baseline in the absence of the project activity is not applicable. The baseline alternatives for the remaining scenarios (power and biomass) are identified as below. The methodology ACM 0006 provides the following eight baseline alternatives for power generation. Alternative P1 P2 P3 P4 P5 P6 P7 P8 Description of alternative The proposed project activity not undertaken as a CDM project activity The continuation of power generation in an existing biomass residue fired power plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as (co-) fired in the project activity The generation of power in an existing captive power plant using only fossil fuels The generation of power in the grid The installation of a new biomass residue fired power plant fired with the same type and with the same annual amount of biomass residues as the project activity, but with a lower efficiency of electricity generation (e.g. an efficiency that is common practice in the relevant industry sector) than the project plant and there fore with a lower power output than in the project case. The installation of a new biomass residue fired power plant that is fired with the same type but with a higher annual amount of biomass residues as the project activity and that has a lower efficiency of electricity generation (e.g. an efficiency that is common practice in the relevant industry sector) than the project activity. Therefore, the power output is the same as in the project case. The retrofitting of an existing biomass residue fired power, fired with the same type and with the same annual amount of biomass residues as the project activity, but with a lower efficiency of electricity generation (e.g. an efficiency that is common practice in the relevant industry sector) than the project plant and there fore with a lower power output than tin the project case. The retrofitting of an existing biomass residue fired power that is fired with the same type but with a higher annual amount of biomass residues as the project activity and that has a lower efficiency of electricity generation (e.g. an efficiency that is common practice in the relevant industry sector) than the project activity. The baseline alternatives P8, P7 and P2 are not realistic alternatives to the project activity, as the new biomass residue fired power plant is not retrofitting or continuation of an existing biomass residue fired power plant. Alternatives P6 and P5 are not considered as credible alternatives since, the generation of electricity with same out put but with a higher annual amount of biomass residues and generation of electricity with a lower out put but with the same annual amount of biomass residues as the project activity are unattractive propositions for a power generation plant. In addition, the proposed project activity is designed and implemented with an efficiency i.e common practice in the relevant industrial

12 page 12 sector. Hence, the baseline alternatives P6 and P5 are excluded from further consideration. The alternatives P1 is not a credible baseline alternative, since without the registration of the project as a CDM project, it would not occur and the same is demonstrated in Section B.5. Alternative P3 is not considered as a realistic alternative to the project activity since the proposed project activity is an independent power project fired with biomass residues and is not a captive power plant to meet any captive electricity requirements of the project proponent. Alternative P4 is considered as credible and realistic alternative to the project activity since the project activity is exporting and displacing the equivalent amount of electricity in the carbon intensive grid system. In the absence of the present activity, the equivalent amount of electricity would have been generated in the grid. Hence, alternative P4 is considered as the realistic and credible alternative to the project activity, the same is analyzed for demonstration of additionality using Tools for demonstration and assessment of additionality. More details on demonstration of additionality are provided in section B.5. The following are the Biomass baseline alternatives listed in the methodology: B1 B2 B3 B4 B5 B6 B7 B8 The biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields. The biomass residues are dumped or left to decay under clearly anaerobic conditions. This applies, for example, to deep landfills with more than 5 meters. This does not apply to biomass residues that are stock-piled or left to decay on fields. The biomass residues are burnt in an uncontrolled manner without utilizing it for energy purposes. The biomass residues are used for heat and/or electricity generation at the project site The biomass residues are used for power generation, including cogeneration, in other existing or new grid-connected power plants The biomass residues are used for heat generation in other existing or new boilers at other sites The biomass residues are used for other energy purposes, such as the generation of biofuels The biomass residues are used for non-energy purposes, e.g. as fertilizer or as feedstock in processes (e.g. in the pulp and paper industry) From the above listed alternatives B8 can be ruled out since the project activity would utilize only surplus biomass available in the region,i.e., after accounting for all types of consumption in the region. B7 and B6 could be ruled out since in the project region, where power project is proposed to be located, biomass residues are not utilized in existing or new boilers (for heat generation) or for other energy purposes,. B4 and B5 are also not credible alternatives as biomass residues are not utilized at the project site either for cogeneration purposes or in other new grid-connected power plants, as there are no cogeneration and new grid connected power plants existing in the project region. The alternative B2 is not realistic as the practice of land filling and other planned dumping of biomass residues in anaerobic conditions in the rural area is highly unrealistic. The alternatives B1 and B3 are more realistic and credible baseline alternatives for the project activity, which is common practice in the project region. The Scenario 2 provided under Table 2 of the Consolidated methodology for electricity generation from biomass residues ACM0006 /Version 05. is identified as the most plausible baseline scenario for the project activity. The specific situation under the scenario 2 in the combination of power and biomass alternatives, shows the appropriate baseline situation of the project activity as demonstrated below:

13 page 13 Baseline scenario Scenario Power Biomass Description of the situation 2 P4 B1 & B3 The project activity involves the installation of a new biomass residue fired power plant at a site where no power was generated prior to the implementation of the project activity. The power generated by the project plant is fed into the grid. The biomass residues would in the absence of the project activity be dumped or left to decay or burnt in an uncontrolled manner without utilizing it for energy purposes. Table 2: Data sources for the baseline calculation Key Parameter Description Data Source Website EF Baseline emission factor for the western region grid CEA published baseline emission factor for western region grid (CM) Ex-ante determination EF co2,i Emission factors for fuels India s initial national communication (INC) and IPCC values, ex-ante determination. Oxid i Oxidation factor of fuels 2006 IPCC values, ex-ante EF km,co2 EGy Average CO 2 emission factor of trucks Net power export to the grid per annum determination. India Road transport efficiency study published by world bank South Asia From Plant and MSEB Records. Ex post determination. Since, the project is connected to Maharashtra state electricity grid system, which falls under the western regional grid system, the baseline emission factor is considered for the western region grid system. Baseline emission factor is estimated using the approved consolidated methodology for renewable electricity project activities, ACM

14 page 14 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): The additionality of the project activity has been demonstrated using the latest version of Tools for demonstration and assessment of additionality version 03, EB 29. Step 1. Identification of alternatives to the project activity consistent with current laws and regulations Step 1a. Define alternatives to the project activity: The Tools for the demonstration and assessment of additionality (version 03) requires the Project Proponent to identify realistic and credible alternatives available to the project participants or similar project developers that provide outputs or services comparable with the proposed CDM project activity. The realistic and credible baseline alternatives to the project activity are identified in accordance with the scenario 2 of ACM 0006 (version 05). The realistic and credible alternatives regarding power and biomass baseline are determined in section B4 of the PDD, by providing justification to each alternative identified and eliminated. The following alternatives are identified as the realistic and credible alternatives to the project activity for both power and biomass. Power Biomass P4 The generation of power in the grid B1 The biomass residues are dumped or left to decay under mainly aerobic conditions. B3 The biomass residues are burnt in an uncontrolled manner without utilizing it for energy purposes. Therefore, the project activity passes Step 1a. Step 1b: Consistency with mandatory laws and regulations: The alternatives identified above are in compliance with all mandatory applicable legal and regulatory requirements. The implementation of project activity is not restricted by any law. Hence, it passes Step 1b. Since, the project activity is not the only alternative and the identified alternatives are in compliance with all mandatory regulations and law, step 1 is passed. Step 2. Investment analysis Sub-step 2a. Determine appropriate analysis method

15 page 15 Option I: The simple cost analysis is not applicable since the project activity has additional revenue from sale of power. Option II: The investment comparison analysis is not applicable since no appropriate alternative is available for investment comparison. Option III: Hence, the benchmark analysis has been selected Sub-step 2b. Option III, Bench mark analysis For the purpose of this analysis, Weighted Average Cost of Capital (WACC) has been taken as the benchmark. The project should yield a return which should be commensurate with the benchmark rate. The most common financial indicator relied upon by the lenders/investors, viz., project IRR has been used to arrive at the return from the project. Additionality Tool (03) defines the benchmark to be represented as the standard return in the market considering the specific risk of the project type, but not linked to subjective profitability expectation or risk profile of a particular project developer. Accordingly, WACC has been computed on post tax basis taking into account the post tax rates of interest on term loan and working capital and required rate of return to be earned on the equity to declare a dividend of 16% on the equity as permitted by the Maharastra Electricity Regulatory Commission. Based on the methodology the WACC works out to %. Sub-step 2c: Calculation and comparison of financial indicators. The total cost of the project has been estimated at Rs million. The project investment is envisaged to be financed through a term loan of Rs million and equity share capital of Rs million. The following are the broad assumptions made in estimating the IRR of the project : Project Cost (Rs.in million) Means of Finance (Rs.in million) - Share Capital - Term Loan Plant Capacity (MW) 20 Plant Load Factor (%) 80 Auxiliary consumption (%) 10 Anticipated energy export (GWh/annum) Tariff Rs/kWh 3.18 Tariff Escalation / annually As per MERC tariff order Type of fuel Agri residues and coal Quantity of fuel required (in tonnes/annum) 158,400 Biomass price (Rs. Per tonne) 1200 Escalation of biomass price (%/annum) 5 Operating & Maint. expenses (%/annum) 4 Book Depreciation( SLM) (Rs. in million) 50.87

16 page 16 Power purchase tariff (Rs.per kwh) 3.18 Incentives : Central subsidy (%) Tax holiday (years) 10 MAT (%) The IRR for the project activity, based on the above assumptions and taking into consideration all incentives available to the project activity, works out to 8.53 % without CDM benefit. This is in contrast to the benchmark rate of 13.07%. This proves that the project activity is not financially attractive. However, with CDM revenues, the IRR of the project goes up to %. Thus, it is evident from the benchmark analysis that CDM revenues are imperative for the project to become financially attractive. Sub-step 2d. Sensitivity analysis: A sensitivity analysis has been carried out to identify the attractiveness of the project activity to reasonable variations in the critical assumptions. The scenarios considered for the purpose of sensitivity analysis are 5% variation on either side in the fuel cost and a 5% variation on either direction in the power generation. The impact of such variations on the project s financial attractiveness is summarised below: Scenario Without CDM IRR *BMR With CDM IRR-BMR Baseline 8.53% -4.54% 13.88% 0.81% 5% increase in fuel cost 6.33% -6.74% 11.92% -1.15% 5% decrease in fuel cost 10.61% -2.46% 15.75% 2.68% 5% increase in power generation 11.92% -1.15% 16.99% 3.92% 5% decrease in power generation 4.87% -8.20% 10.59% *B.M.R refer to bench mark return From the foregoing data, it should be evident that the project would not earn a return commensurate with the benchmark return even under the most optimistic condition of either the fuel cost coming down by 5% or power generation going up by 5%. These are most unlikely scenrios. The project would become financially attractive only with CDM benefits, in as much as the IRR crosses the benchmark marginally by about 0.81% with CDM benefits. Hence, the project activity passes step 2 of additionality demonstration. Step 3. Barrier analysis Sub-step 3a. Identify barriers that would prevent the implementation of the proposed CDM project activity: The following barrier has been identified that could prevent the implementation of the proposed CDM project activity

17 page 17 Risk related to biomass price: The project proponents initiated efforts to proceed with the project activity in the year When the project was at conceptualization stage (DPR stage), the cost of biomass prevailing in the project region was around Rs However, the project proponent was aware of the risk associated with the biomass where the prices experienced a hike of around 100% to 150% in other states. Thus, to overcome the risk related to fuel cost, the project proponents have considered the CDM revenues at the project conceptualization stage for the sustainable operation of the biomass project. The resolution passed for Consideration of CDM revenues for the project during the Board of Directors meeting, would be provided to DOE for verification. The biomass price is tend to increase further once the project commences operation as a commercial value is created with the establishment of the project. Hence, the project would be subjected to high risk of unregulated price of biomass residues. In the view of above, the project is not same as baseline scenario and the above barrier would prevent the implementation of this type of project activity in the absence of CDM. Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one of the alternatives The barriers identified in sub-step 3a would have no effect on the alternative P4. The barrier identified would prevent the implementation of only this type of project activity as it is dependent on the biomass residues, which is not the same case for alternative scenario P4. In the view of the above, the project activity passes step 3 Step 4. Common practice analysis Sub-step 4a. Analyse other activities similar to the proposed project activity: In the state of Maharashtra, the total potential for grid connected power supply from surplus biomass residues is 781 MW, where as, according to the data published by Maharashtra Energy Development Agency (MEDA), only one independent biomass based power project with a capacity of 8 MW was established and another project with a capacity of 7.5 MW is in the final stage of implementation. The proposed project activity is the third independent biomass based power project to be established in the State of Maharashtra. The total installed capacity of biomass based power projects is negligible compared to the total potential available in the state, i.e., 781 MW. Further, the contribution of the biomass based power projects when compared to total installed capacity of Maharashtra (16,062 MW 1 ) is only 0.08%, which is a miniscule proportion. Hence, the establishment of biomass based power projects is not a common practice in the state of Maharashtra. 1 Pg.no. 35, power scenario at a glance April 06, CEA

18 page 18 Sub-step 4b. Discuss similar options that are occurring As discussed in sub-step 4a, in the State of Maharashtra the total installed capacity of biomass based power projects is only 13.5 MW. The two projects established in the State (with capacities of 6 and 7.5 MW), are much smaller in size compared to the proposed project activity. Nevertheless, according to the data published by MEDA, in Maharashtra, no biomass based power project is planned with similar size to the proposed project activity. Based on the above analysis, it could be concluded that the establishment of biomass based power project is not a common practice in the state of Maharashtra. Therefore, the project activity passes step 4 also. Thus, the project activity satisfies all the four steps of Tools for demonstration and assessment of Additionality. Hence, the proposed project activity is not same as baseline scenario, would not have occurred in the absence of CDM and hence is additional. B.6. Emission reductions: B.6.1. Explanation of methodological choices: BASELINE EMISSIONS (ER electricity or Emission Reductions due to displacement of electricity) Emission reductions due to displacement of electricity (Baseline emissions) comprise emissions due to grid electricity generation that is displaced by the project activity. Baseline emissions have been estimated using the equation provided by the methodology considering IPCC default values and as well as local values. Equation used to estimate emission reductions is given below and estimated quantity of emission reductions are furnished in Section B.6.4. ER electricity, y = EGy EFelectricity, y Where ER electricity,y = Emission reductions due to displacement of electricity during the year y (t CO 2 /y) EG y = Net quantity of increased electricity generation as a result of the project activity during the year y (net quantity of electricity exported from the project activity to grid (GWh)) EF electricity,y = CO 2 emission factor for the electricity displaced due to the project activity during the year y (CO 2 /GWh) The Emission reductions from the project activity due to displacement of grid electricity has been calculated based on the net quantity of electricity exported by the project activity times the baseline emission factor of the grid. The project electricity system is defined by the spatial extent of the western regional grid electricity system and power plants connected to the grid system and the same have been considered for estimation of baseline emissions. The power flows within the region take place without

19 page 19 any transmission constraints. Therefore, the western regional grid system is appropriate for the project activity. Western regional grid consists of independent state level electricity systems including public sector undertakings that exchange significant power within the region depending on the demand. The overall power flows are managed by the WRLDC. Other regions, viz., Northern, Western, Eastern and North Eastern are connected with the Western grid. The power inflows from and outflows to these regions would constitute imports and exports. The Western region has considerable amount of imports into the grid. The baseline Emission factor (including Imports) of western region published by CEA is considered for calculation of Emission reductions due to displacement of electricity in accordance with the Baseline of ACM According to the ACM 0002, grid emission factor is calculated as Combined Margin (CM), comprising the Operating Margin (OM) emission factor and the Build Margin (BM) emission factor. The following procedure was adopted for estimating the grid electricity emission factor: Step 1 Calculation of the Operating Margin Step 2 Calculation of the Build Margin Step 3 Calculation of the grid emission factor (Combined Margin) Step 1 Calculation of the Operating Margin The approved consolidated methodology ACM 0002 recommends the use of dispatch data analysis as the first methodological choice. However, in India availability of accurate data on grid system dispatch order for each power plant in the system and the amount of power dispatched from all plants in the system during each hour is practically not possible. Also, still the merit order dispatch system has not become applicable and is not likely to be so during the crediting period. In view of this, it is proposed to apply other choices as suggested in the ACM Since the power supplied by low-cost-must-run power plants 2 to the western grid during is clearly below 50%, it was decided to apply the Simple OM method. In the Simple OM method, the emission factor is calculated as generation weighted average emissions per electricity unit (tco 2 /MWh) of all generating sources serving the system, not including low-operating cost and must-run power plants. The data vintage option selected is the ex-ante approach, where a 3 year average OM is calculated. The most recent three year CEA data published on the emission factor of western region is considered. The CEA baseline is derived using the following equation to calculate simple OM. EF OM Where: EF OM,simple,y F i,j,y Fi, j, y COEFi, j, simple, y = (1) GENj, y is emission factor of the Operating Margin by Simple method, in tco 2 /MWh is the quantity of fuel i consumed by plant j in year y in tonnes of fuel i 2 Defined as Hydro, geothermal, wind, low cost biomass, nuclear and solar generation plants in the ACM (ref foot note 3 page 4).

20 page 20 COEF i,j GEN j,y is the CO 2 emission coefficient of fuel i for relevant power plant j in the year in tco 2 /tonnes and is the generation from power plant j in the year in MWh The CEA data published on Baseline emission factor for different regions in Indian electricity system are provided in Annex 3. Table 3: Operating Margin 3 Most recent three years 2003/ / /06 Operating Margin* (OM) in t CO 2 / GWh Average of 3 years * including imports Source: CDM Carbon Dioxide Baseline Data base, Version2, June 2007 ( Step 2 Calculation of the Build Margin ACM 0002 offers two options for determination of build margin emission factor: ex ante and ex post determination of the Build Margin (BM). Option 1 is selected wherein the build margin emission factor is calculated ex- ante based on most recent information available on plants already built for sample group m in western Region. This simplifies the monitoring procedures. The sample group m is the one having higher power generation between (a) five power plants that have been built most recently and (b) the capacity additions in the electricity system that comprise 20% of the system generation built most recently. It is found that the option (b) has higher generation compared to option (a). Hence option (b) has been selected. Build Margin emission factor 4 is determined as below: Build Margin (BM) tco 2 / GWh Step 3 Calculation of the baseline emission factor (Combined Margin) The baseline emission factor in year y is calculated as the simple average of the OM and BM emission factors, i.e. OM and BM are each weighted with 50%. As noted above, the resulting Combined Margin is fixed ex ante for the duration of the crediting period: EF y = w OM EFOM, y + wbm EF BM, y 3 CEA published CO2 data base,

21 page 21 Combined Margin (CM) Simple average of OM and BM 814 tco 2 / GWh PROJECT EMISSIONS Project activity emissions comprise of emissions due to transportation of biomass residues to the project plant, onsite use of fossil fuels for co-firing and CO 2 emissions from electricity consumption. Where available, local data (India s Initial National Communication) has been used for estimation of project emissions and IPCC default values have been used where local / national data is not available. The following equation has been provided in the methodology ACM 0006, for the calculation of project emissions: PE = PET + PEFF + PEEC + GWP PE, y y y y CH 4 Biomass, CH 4 y a) Carbon dioxide emissions from combustion of fossil fuels for transportation of biomass residues to the project plant (PET y ) Project participants selected Option 1 for the purpose of calculating emissions due to transportation of biomass residues to the project plant. The approach is derived based on the distance, average truck load and no. of trips for biomass transportation. PET y k BFk, y / TLy AVDy EFkm, CO2, y = where: BF k,y = Quantity of biomass residue type k combusted in the project plant during the year y (dry) TL y = Average truck load of the trucks used (tons) during the year y AVD y = Average round trip distance between the biomass residue fuel supply sites and the site of the project plant during the year y (km) EF km.co2,y = Average CO 2 Emission factor for the trucks measured during the year y (t CO 2 /km) b) Carbon dioxide emissions from on-site consumption of fossil fuels (PEFF y ) The project activity may utilize fossil fuels for co-firing in boiler to an extent of 10% of the total annual fuel consumption. The project adopts following equation to calculate CO 2 emissions from combustion of respective fossil fuels. PEFF y = ( FFproject plant, i,y + FFproject site,i,y ) NCVi EFCO 2, FF, i Where: FF project plant,i,y FF project site,i,y is the quantity of fossil fuel type i combusted in the plant during the year y (tons) is the quantity of fossil fuel type i combusted at the project site for other purposes that are attributable to the project activity during the year y (tons)

22 page 22 NCV i,y EF co2,ff,,i Net Calorific value of fossil fuel type i during the year y (kcal) CO 2 Emission Factor of fossil fuel type i (tco 2 /TJ) c) CO 2 emissions from electricity consumption (PE EC,y ) The electricity imports to the power plant have been considered as zero as the emission reductions due to electricity have been calculated based on net electricity exported to the grid which is the difference of gross generation and power imported and auxiliary consumptions. However, emissions due to the actual imports would be monitored ex-post and emissions would be calculated based on the following equation. PE EC, y = ECPJ, y EFgrid, y EC PJ,y EF grid,y On-site electricity consumption attributable to the project activity during the year y CO 2 Emission Factor for grid electricity during the year y d) Methane emissions from combustion of biomass residues (PE Biomass,CH4,y ) This emission Source has been excluded from the project boundary for simplification. In addition, project proponents are not claiming for CH 4 Emissions from uncontrolled burning or decay of biomass residues in the baseline scenario and hence can be excluded in the project activity. Leakage Project participants anticipate no leakage due to the implementation of the project activity. The project activity uses only the surplus biomass residues available in the project region. Hence, diversion of biomass residues from other uses would not occur as a result of project implementation. Leakage due to changes in carbon stocks in the LULUCF would not occur as the project activity utilizes only renewable biomass residues for power generation. The baseline scenario for the project activity is that the biomass residues are dumped or left decay or burnt in uncontrolled manner without utilizing it for energy purposes (Scenario 2). As required by the methodology to demonstrate the leakage effect, the project participants adopted option L 2 to demonstrate that the project activity would not increase the fossil fuel consumption else where in the region of the project activity. If it is found that the surplus availability of certain type of biomass residue k used in the project activity is below 25% during any year of the crediting period, leakage emissions due to the project activity shall be calculated using the following equation provided in the methodology. Ly = EFCO 2, LE BFPFJ, k, Where: k y NCV L y = Leakage emission during the year y (tco 2 /yr) k

23 page 23 EF CO2,LE = CO 2 emission factor of the most carbon intensive fuel used in the country (tco 2 /GJ) BF PJ,k,y = Incremental quantity of biomass residue type k used as a result of the project activity in the project plant during the year y (tonnes of dry matter) k = Types of biomass residues for which leakage effects could not be ruled out with the approach L2 NCV k = Net calorific value of the biomass residue type k (GJ/ton of dry matter) Emission reductions Emission reductions have been estimated as the difference in baseline emissions and project emissions taking into account leakage, if applicable. The emission reductions have been calculated as per the following equation as specified in ACM ER y = ER electricity PE y L y B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: EF electricity,y t CO 2 /GWh CO 2 emission factor for the electricity displaced (grid) due to the project activity during the year y in t CO 2 /GWh CEA published value. (Average of Simple operating margin (3 years) and Build margin ) Value applied: 814 ( ) Justification of the The CEA is the prime authority of Indian power sector for determining the choice of data or guidelines and norms. The authority publishes all data relevant to the Indian description of power sector. The CO 2 data base for Indian power sector published by CEA is measurement methods made available publicly and established in accordance with the guidelines of and procedures UNFCCC. Hence, the application of data published by CEA is transparent and actually applied : conservative. Any comment: EF co2,ff,i Data / Parameter: Data unit: tco 2 /TJ Description: CO 2 emission factor of each fuel type i Source of data used: IPCC default values / India s Initial National Communication to UNFCCC (INC) Value applied: Coal : 95.8 tco 2 /TJ (Source: INC) Diesel : 74.1 (Source: IPCC) Justification of the IPCC values have been used for diesel since no country specific data is

24 page 24 choice of data or description of measurement methods and procedures actually applied : Any comment: available. EF CO2,LE Data / Parameter: Data unit: tco 2 /TJ Description: CO 2 emission factor of the most carbon intensive fuel used in the country Source of data used: India s Initial National Communication to UNFCCC (INC) Value applied: Lignite : tco 2 /TJ (Source: INC) Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: The data published in India s initial national communication (INC) is the authenticated and represents the national average values. Hence, the emission factor value is considered from INC. The above value would be applied only if the leakage found in the project region during the crediting period. Data / Parameter: Oxid i Data unit: Not applicable (constant) Description: Oxidation Factor of each fuel type i Source of data used: 2006 IPCC default values Value applied: Coal : 1 Diesel : 1 Justification of the choice of data or IPCC values have been used for both fuel types since no country specific oxidation factors are available description of measurement methods and procedures actually applied : Any comment: B.6.3 Ex-ante calculation of emission reductions: Baseline Emissions (Emission Reductions due to displacement of electricity or ER electricity,y ) The Basic assumptions for calculating baseline emissions of the project activity is displacement of grid electricity. Hence, the following equation has been applied for estimation of baseline emissions. ER electricity, y = EGy EFelectricity, y

25 page 25 The anticipated electricity export from the project activity during the year y is , multiplied with CEA published emission factor (Combined Margin) for western region grid 814 tco 2 /GWh. The resultant baseline emissions have been estimated and tabulated as below. ER electricity,y = * 814 = 92,835 t CO 2 Baseline Emissions (tco2) Gross Net Export Emission Factor Baseline S.no year Generation Emissions GWh GWh tco2/gwh tco , , , , , , , , , ,835 Toatal Baseline emissions 928,350 Project Emissions (PE y ) The emissions from the project activity have been estimated based on various assumptions, which are project specific. The project emissions from electricity consumption have been considered zero as the quantity of electricity considered is net electricity exported, and the amount of coal co-fired in the project plant per year for through out the crediting period is anticipated at 10% of the total annual fuel consumption of power plant. On-site fuel consumption, other than co-firing, have not been considered in ex-ante calculations of emission reductions for simplification. However, all the above would be monitored ex-post and actual monitored data would be obtained during the crediting period to derive project emissions. The estimation of CO 2 emissions from the project activity have been furnished below. PE y = PETy + PEFFy + PEEC y + GWPCH 4 PEBiomass, CH 4, y a) Carbon dioxide emissions from combustion of fossil fuels for transportation of biomass residues to the project plant (PET y ) PET y k BFk, y / TLy AVDy EFkm, CO2, y = PET y (biomass) = ((158400/10) X 100) X = 927 tco 2 PET y (Ash) = ((12672/10) X 30) X = 22 tco 2 PET y = = 949 tco 2

26 page 26 Project emissions (off-site transport) Total fuel Total ash Average S.no year generation from the return trip distance for Average return trip distance for Average consumption project * biomass Ash capacity travelled truck for trucks Emissions tons tons km km tons km km/lit tco2/km tco , , , , , , , , , , Total Proejct Emissions (off-site transport) 9,490 truck Total distance Consumption of diesel by Emission factor * Ash generation is anticipated at 8% of total fuel consumption based on the composition of biomass and fossil fuels assumed to use in the boiler. Total off-site transport b) Carbon dioxide emissions from on-site consumption of fossil fuels (PEFF y ) The project activity may utilize coal for co-firing in boiler to an extent of 10% of the total annual fuel consumption. The corresponding amount of fossil fuel is considered to calculate the project emissions on a conservative basis, as shown below. The project activity may utilize other fossil fuels (diesel) for handling of biomass residues (by trucks) with in the premises of the power plant (mobile). Since, the same are being negligible, excluded from ex-ante calculations of emissions reduction for simplification. However, the same have been included in the (FF project site,i,y ) monitoring, will be estimated and deducted during each year of crediting period. PEFF y = ( FFproject plant, i,y + FFproject site,i,y ) NCVi EFCO 2, FF, i PEFF y = ( ) X 3800 X = 24,106 Project Emissions (co-firing) No. Year Biomass consumed Coal Consumption Total fuel consumption coal consumption NCV for Coal (NCV) Emission factor coal (EF CO2,y ) Oxidation factor (OXID i ) Project Emissions Reference tons tons tons % kcal/kg tco 2 /TJ - tco 2 lab analysis Intial national communication of Inda values 1996 revised IPCC guidelines ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , , ,560 15, , ,106 Total Project Emissions (co-firing) 241,060

27 page 27 c) CO 2 emissions from electricity consumption (PE EC,y ) The project activity would implement the necessary equipment to import the electricity from grid system. Since, the project activity is a power generation plant; the project would import the electricity from grid system only during emergency situations. However, the amount of electricity imports from the grid system would be minimum and are not accurately predictable during implementation stage. Hence, for the purpose of calculating ex-ante calculation of emissions reductions, the electricity imports from the grid system are considered zero, which would simplify the emission reduction calculations. The corresponding amount of emissions from the grid electricity consumption will be calculated every year during the crediting period and accounted for project emissions. PE EC, y = ECPJ, y EFgrid, y PE EC,y = 0 X 814 = 0 tco 2 Total project emissions PE y = , PE y = 25,055 t CO 2.Leakage (L y ) No leakage emissions would occur due to the implementation of project activity, as the quantity of available biomass residues in the region is 25% larger than the quantity of biomass residues that are utilized, including the project activity. Hence, the leakage emissions due to implementation of project activity would be negligible and not considered. Since the available quantity of each type of biomass residue k used in the project activity, is larger than 25% of the total quantity of respective type of biomass residue k utilized in the project region, including the project plant, the leakage emissions due to increased fossil fuel consumption in the region, as a result of project implementation is considered negligible. Ly = EFCO 2, LE BFPFJ, k, k y NCV L y = X 0 X 3000 (average) k L y = 0 tco 2

28 page 28 Net Emission Reduction (ER y ) The net emission reductions from project activity are derived as difference between emission reductions due to the displacement of electricity (baseline emissions), project emissions and leakage as shown in the below table. ER y = ER electricity PE y L y ER y = 92,835-25,055 0 = 67,780 t CO 2 e Emission reductions (tco2) No. Year Baseline Emissions Project Emissions Leakage Emission Reductions tco 2 tco 2 tco 2 tco ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, , ,835 25, ,780 Total Emission Reductions 677,800 B.6.4 Summary of the ex-ante estimation of emission reductions: Summery of the ex ante estimation of emission reductions are furnished below. Year Estimation of project activity emissions (tco 2 e) Estimation of baseline emissions (tco 2 e) Estimation of leakage (tco 2 e) Estimation of overall emission Reductions (tco 2 e) ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, , ,055 92, ,780 Total 250, , ,800

29 page 29 In the above table, the year 2008 corresponds to the period starting from to or from the date of registration of project activity to successive 365 days. Similar interpretation shall apply for subsequent years. B.7 Application of the monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Project emission parameters Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: F procured,y Tons Quantity of biomass residues and fossil fuel types procured for the project activity during year y On-site measurements 158,400 tons (anticipated value) The trucks carrying fuel (biomass residues and fossil fuel) weighted by a calibrated weighbridge twice upon entry and exit to arrive net quantity of fuel procured. Weigh bridge undergoes maintenance as per defined industry standards. This data will be cross checked against purchase receipts and inventory data. The data on quantity of fuel purchased will be collected, recorded and archived separately for all types of fuels. BFk,y Tons Quantity of biomass residue type k combusted in the project plant during year y On-site measurements 142,560 tons (anticipated value) The total quantity of biomass fuel procured for the project purpose would be completely combusted in the project plant. Hence, the total quantity of biomass fuel procured and quantity of biomass fuel combusted is considered as same for the project activity. The weigh bridge meter under goes calibration/maintenance as per the industrial standards of India. The data recorded at weigh bridge in log books can be cross checked against the purchase receipts. The data on quantity of biomass residues procured would be collected separately for all types of biomass residues.

30 page 30 Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: FF project plant,i,y Tons Quantity of fossil fuel type i combusted in the project plant during year y On-site measurements 15,840 tons (anticipated) The total quantity of fossil fuel procured for the project purpose would be completely combusted in the power plant. Hence, the total quantity of fossil fuel procured and quantity of fossil fuel combusted is considered as same for the project activity. The weigh bridge meter would under go calibration/maintenance subject to appropriate industrial standards. The data recorded can be cross checked against the fuel purchase receipts. The data on quantity of fossil fuel procured would be collected separately for all types of fossil fuels (if any). FF project site,i,y Tons Quantity of fossil fuel type i combusted in the project site for other purposes that are attributable to the project activity during year y On-site measurements and fuel issuance log books 0 (since the consumption (for other purposes) and resultant emissions would be very low, the value is considered 0 for simplification of emission reduction calculations. However, the parameter would be monitored ex-post and used to determine the emission reductions every year during the crediting period) The stock and issuance records maintained at fuel storage yard. The fuel issue records can be cross checked with purchased quantities and billings. EF km,co2,y t CO 2 /km Average CO 2 emission factor for the trucks measured during the year y Calculated value derived from onsite measurements & IPCC values The emission factor is calculated based on average consumption of diesel by truck at 4.5 km/lit diesel, which have been taken from India Road transport efficiency study. However, the parameter is measured every year during the

31 page 31 QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating crediting period. The average mileage of the truck would be noted at the project entrance based on the interaction with truck drivers. The parameter is recorded based on the information obtained from truck driver. However, the data can be cross checked with other Indian standard values for truck transport. ASH Gen,y Tons Quantity of ash generated from project plant during year y On-site measurements 12,672 tons (anticipated at 8% of total fuel consumption) Trucks carrying ash would be weighed twice upon entry and exit. Meters at weigh bridge would under go calibration/maintenance subject to appropriate industrial standards. This can be cross checked against the purchase receipts and inventory records and also based on the ash content of fuels obtained from lab analysis. NCV k,y Kcal Net calorific value of biomass residue type k Determined values from Lab analysis Biomass residues : 3000 (avg anticipated) Samples of each fuel type would be colleted from the plant according to the procedures of sample collection for analysis and would be sent for analysis to reputed Laboratories. Project participants have no control on the parameter. Hence, No QA/QC procedures are applicable The net calorific value would be determined separately for each fuel type of biomass residues. NCV i,y Kcal Net calorific value of fossil fuel type i Determined values from Lab analysis Coal : 3800 kcal/kg (anticipated)

32 page 32 expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Samples of each fossil fuel type would be colleted from the plant according to the procedures of sample collection for analysis and would be sent for analysis to reputed Laboratories. Project participants have no control on the parameter. Hence, No QA/QC procedures are applicable The net calorific value will be determined separately for each fossil fuel type. AVD y Km Average return trip distance between biomass fuel supply sites and the project site On site records maintained at project site (log books) 100 km (projected value) The data is recorded at the plant premises based on the information given by the truck driver about the biomass supply site and distance form the project. The data on distance of fuel supply site from the plant can be verified by cross checking data records on the distances available with information from other sources (Ex: maps, revenue department or other official sources) If the biomass residues are supplied from different sites, this parameter would be taken from the mean value of km travelled by trucks that supply the biomass fuel to the plant ASH AVD y Km Average return trip distance between project site and ash disposal site during the year y On site records maintained at project (log books) 30 km (Projected value) The data is recorded at the plant premises based on the information given by the truck driver about the disposal or utilization site (ash bricks) distance form the project site. The data on distance of ash disposal site from the plant can be verified by cross checking data records on the distances available with information from other sources (Ex: maps, revenue department or other official sources) If the ash is disposed off at different sites, this parameter will be taken from the mean value of km travelled by trucks

33 page 33 Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: TL y Tones Average truck load of the trucks used for transportation of biomass during the year y On site measurement at weigh bridge of plant 10 tons/truck (project specific) This data would be obtained from the weigh bridge measurements on-site twice upon truck entry and exit. The weigh bridge would under go calibration /maintenance subject to appropriate industrial standards of the host country. ASH TL y Tones Average truck load of the trucks used for disposal of Ash during year y On site measurement at weigh bridge of plant 10 tons/truck (project specific) This data would be obtained from the weigh bridge measurements on-site twice upon truck entry and exit. The weigh bridge would under go calibration /maintenance subject to appropriate industrial standards of the host country. EC PJ,y GWh Onsite electricity consumption attributable to the project activity during the year y On-site measurements and monthly bills 0 GWh (projected) Measured monthly using calibrated meters and aggregated annually. The Meters used for reading the electricity imports would be calibrated as per industry standards of host country (India). The electricity bills raised by MSEB can be used to ensure consistency.

34 page 34 Baseline Emission parameters Data / Parameter: EG project plant,y Data unit: GWh Description: Net quantity of Electricity generated (exported) in the project plant during the year y Source of data to be used: On-site measurements Value of data applied for the purpose of calculating GWh (anticipated) expected emission reductions in section B.5 Description of measurement methods Measured monthly using calibrated meters and aggregated annually. and procedures to be applied: QA/QC procedures to be The consistency of metered electricity generation would be cross-checked applied: with the quantity of Biomass fuel and Fossil fuel (if any) fired. The Meters used for reading the net electricity generation would be calibrated as per industry standards of host country. Sales records to the MSEB grid and other records are used to ensure consistency. Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating EG Gross,y GWh Total quantity of Electricity generated form the project activity during the year y On-site measurements GWh (anticipated) Measured monthly using calibrated meters and aggregated annually. The consistency of metered electricity generation would be cross-checked with the quantity of Biomass fuel and Fossil fuel (if any) fired. The Meters used for reading the Gross electricity generation would be calibrated as per industry standards of host country (India). EG Aux,y GWh Total quantity of auxiliary consumption of the project activity during the year y On-site measurements (anticipated)

35 page 35 expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Measured monthly using calibrated meters and aggregated annually. The difference between gross electricity generation and energy export can also gives the quantity of auxiliary consumption of the project activity. The Meters used for reading the Gross generation, auxiliary consumption and net export will be calibrated as per industry standards of host country (India). Leakage Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 BF surplys,y % (percentage) Surplus quantity of available biomass residue type k (tons) used in the plant, upon the total quantity of consumption of respective biomass type k (tons) in the project region including the project activity, during the year y Public survey documentation in the region, if not available, project participants shall voluntarily appoint a third party to conduct the assessment study. The percentage of surplus availability of each type of biomass residue (k) utilized in the project activity has been demonstrated in section B.6.3. Surplus availability of each type of biomass residues used in the project activity is in larger than 25% of the total consumption of the region. The project participants shall asses the surplus availability of each type of biomass residue (k) during each year of the crediting period, based on the public survey documentations available in the project region. If no such survey/assessment available during a particular year, the project participants shall voluntarily appoint a third party to asses the surplus availability of each type of biomass residues (k) in the project region. Since the project participants have no control on the parameter, no QA/QC procedures applicable. The assessment would be carried out for all types of biomass residues available in the project region. However, the percentage of surplus available of biomass residue shall be estimated only for the type of biomass residues used in the project activity. ε el.project plant,y Not applicable (constant) Average net energy efficiency of electricity generation in the project plant Calculated value The parameter is not used to calculate the emission reductions. However, the parameter is useful to cross check the performance of the Renewable energy project. Since, the parameter is not used for ex-ante calculations of emission reductions, no value is specified here. The data value would be monitored

36 page 36 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: during the operational period of the project. The parameters used to determine the parameter are Net quantity of electricity generated, amount of biomass residues used, fossil fuels used and calorific values of biomass residues and fossil fuels used during the year y. However, the measurement methods and procedures applicable for each of the above parameter are already detailed in the respective tables above. Hence, no measurements and procedures are mentioned here. The parameter would be measured using the equatione provided in the methodology. The parameter is derived from the values which are already subjected to QA/AC procedures. Hence, no QA/QC procedures are provided here. B.7.2 Description of the monitoring plan: This monitoring plan is designed for the 20 MW biomass power project implemented by Ind-Barath Energies (Maharashtra) Ltd. in Maharashtra, India. This monitoring plan, which would be registered with the CDM - EB as a part of the Project Design Document, describes the operation and management structure, responsibilities and institutional arrangements, parameters and variables, monitoring practices, QA and QC procedures, data storage and archiving etc. Project participants would implement this monitoring plan from the start date of the operation of the project. Operational and management structure The proposed operational and management structure for the project activity for the purpose of monitoring of emission reductions, leakage effects etc., is shown below (may under go changes if situation demands): Chairman Board of directors Managing director Director - technical GM - technical Plant Manager Shift in charge (boiler and fuel) Shift in charge (Generation)

37 page 37 Institutional arrangement and responsibilities Personnel /authority Operational/Shift In charge Plant Manager GM technical Director - Technical Managing Director Board of Directors Chairman Responsibility Boiler - Operates and controls the boiler parameters, regulates the quantity of biomass supply to the boiler. The quantity of biomass utilized in the boiler will be recorded and the recorded information will be sent to the plant manager on the daily basis. Generation/electricity - Collection of meter reading for electricity generation, auxiliary and export by the project activity. Report will be sent to the plant manager on daily basis Reviewing the monitored parameters for correctness, corrective measures in case of minor errors in the monitored data and preparing a daily summary on project operation and electricity generation to the General manager technical on daily basis Summarization of data on monthly basis based on the daily reports provided by plant manager, comparing the export data with monthly bills raised to MSEDCL and making necessary corrections and modifications before reporting to Director technical. Reviewing the monthly reports submitted by GM technical and preparing a quarterly report on operational conditions of plant and also compiling the data on electricity export to the grid system on a quarterly basis for submission to the board of directors. The responsibility of Director technical also includes suggesting and modifying the structure of monitoring reports and data recording formats as and when required Reviewing the reports submitted by director technical and preparing the brief summary of information on important aspects, such as, plant operational conditions, total power export and fuel consumption during the monitored period, before submitting to the board of directors. Review the quarterly reports submitted by Managing Director, suggesting necessary corrective actions to the person responsible and approving the quarterly reports to compile further as annual report which will be made available to the DoE for verification. Chairman authorises to approve and pass any resolutions during the board of directors meeting. The company will introduce an internal audit system for the purpose of preparation of GHG audit reports at regular intervals. The internal auditor appointed for the purpose will be an individual with necessary experience exclusively in GHG audits. The person so appointed as an internal auditor will be given clear

38 page 38 instructions about his scope of work and reporting requirements. The person will carry out the work on monthly basis or as required by the monitoring plan. The audit report will indicate the compliance requirements and achievements. The person will work directly under the control of the Board of Directors and all the reports will be addressed to the Board directly. The internal auditor in particular will report to the management any non-compliance of monitoring requirements and corrective actions by the operating staff. Parameters Requiring Monitoring The following parameters / variables would be monitored under this monitoring protocol. I. Project Emissions: The following are the various parameters/sub parameters required to be monitored under project emissions Emissions due to combustion of fossil fuels for transportation of biomass, coal and ash Total quantity of biomass procurement/consumption during the year (tonnes) The quantity of biomass fuel purchased would be measured, recorded and monitored at the entry of the project premises. The truck information would also be noted as mentioned in the monitoring table formats. Such as details of truck, distance fuel collection site from project and mileage of truck etc,. The plant would have a computerized weighing system through which each truck of the fuel would pass through, upon entry and exit. No truck with biomass fuel would be able to enter the plant without weighing the fuel. The weighing system would be calibrated and sealed regularly as per the regulatory requirement of India. Total quantity of ash generation during the year (tonnes) The total quantity of ash generation would be monitored in the project premises. The trucks/vehicles carry ash for brick manufacturing units or disposal would be weighted at computerized weighbridge system. The details of vehicle, purpose of carrying the ash and the distance of brick manufacturing unit/disposal site would be noted in the records maintained at the weighbridge meter. No truck/vehicle carry ash from the project site would be able to leave the plant without weighing the ash content. The weighing system would be calibrated and sealed regularly as per the regulatory requirement of India. Total quantity of coal procurement/consumption during the year (tonnes) (if any) The quantity of coal would be monitored in the project premises, at the computerized weighing system. The trucks information would be recorded at the weighing system in the standard monitoring formats such as quantity of coal, types or grade of coal, distance of coal mine/source from the project site and mileage of truck. No truck with coal would be able to enter the plant without weighing the quantity. The quantity of coal entered in to the project premises can be cross checked with the purchase bills made to the fuel supplier. The weighing system would be calibrated and sealed regularly as per the regulatory requirement of India.

39 page 39 Average return trip distance of biomass supply (km) The trucks with biomass fuels would be monitored at the weigh bridge system in the project premises. The distance of biomass collection site from the project for each biomass fuel truck would be recorded as part of monitoring. For this, information would be collected based on the interaction with each truck driver carrying biomass fuel. The average return trip distance of biomass would be calculated based on the annual data recorded. Average return trip distance for ash disposal and coal(km) The trucks/vehicles carry ash would be monitored at the weigh bridge system in the project premises. The distance of brick manufacturing units/disposal site from the project for each truck/vehicle would be recorded as part of monitoring, based on the interaction with each truck/vehicle driver carrying ash. The average return trip distance of ash would be calculated based on the annual data recorded. The trucks/vehicles carry coal would be monitored at weigh bridge system. The distance of coal supply site/mines from the project location would be recorded based on the interaction with the truck drivers. The same can be cross checked with the coal purchase bills and records. The average return trip distance of coal would be calculated based on the annual data recorded. Average truck load capacity of biomass during the year(tonnes)/average truck load capacity of ash during the year (tonnes)/average truck load capacity of coal during the year (tonnes) (if any) The trucks/vehicle carrying biomass/coal/ash would be weighed at computerized weighing system, twice upon entry and exit. The capacity of truck/vehicle carry biomass/ash/coal would be recorded at the weigh bridge system in the project premises. The average truck load capacity of biomass during the year would be calculated based on the recorded data, separately for biomass, coal and ash. Average diesel consumption of truck during the year (km/lit) The mileage of trucks carrying biomass, coal and ash would be recorded at the weigh bridge system as part of monitoring. The mileage of truck i.e. km/liters would be noted based on the information obtained from truck drivers, once in a month. The average mileage would be calculated based on the annual recorded data. Emissions from on-site consumption of fossil fuels including co firing of coal and other purposes Total quantity of coal procured/consumed during the year (tonnes) As provided in the above under Emissions due to combustion of fossil fuels for transportation of biomass, coal and ash Average net calorific value of coal during the year (kcal) The net calorific value of coal would be monitored under regular time intervals. The samples of coal would be collected from the project site and tested at reputed laboratories, either batch wise for coal or

40 page 40 once in a quarter year. The data archived for the year would be considered to calculate the average calorific value of coal. Average net calorific value of biomass during the year (kcal) The net calorific value of each type of biomass residues would be monitored under regular time intervals. The samples of each type of biomass residues would be collected from the project site and tested at reputed laboratories, either on the basis of arrival different biomass residues to the project site or once in a quarter year for each type of biomass residues used. The data archived for the year would be considered to calculate the average calorific value of biomass. Diesel consumption by DG set during the year (liters/tonnes) The quantity of diesel consumption during the operation of DG set would be recorded in log books maintained at diesel generator room. The log book records include the period of operation (hrs) and quantity of diesel consumption (liters), whenever the DG set would be operated. Diesel consumption for other purposes such as onsite transportation of biomass and for preparation of biomass (liters/tonnes) The diesel issuance records would be maintained at diesel storage yard/room. The data records include the quantity of diesel issues, registration no. of vehicle and date of issuance. The consolidated monthly and yearly data would be considered to calculate the project emissions. Emissions from grid electricity consumption Electricity import from the grid system (kwh/gwh) The project activity imports electricity during emergencies and during plant shut downs. The import energy meter would be installed at the project site to record quantity of electricity consumption by the project activity. The bills raised by MSEDCL would form evidence for the electricity imports on monthly basis. The monthly records would be consolidated to estimate project emissions. II. Baseline Emissions: The following are the various parameters/sub parameters required to be monitored under baseline emissions Gross electricity generation (kwh/gwh) The total power generated by the project activity would be measured in the plant premises to the best accuracy and would be recorded, monitored on a continuous basis through DCS. The gross generation would be recorded on daily basis; the same would be consolidated as monthly and yearly data for the application. All instruments would be calibrated at regular intervals as per the industrial standards of India.

41 page 41 Auxiliary power consumption (kwh/gwh) The power consumed by plant auxiliaries would be recorded in the project premises to the best accuracy. This would be recorded and monitored on a continuous basis through DCS. The auxiliary consumption would be recorded on daily basis; the same would be consolidated as monthly and yearly data for the application. Relevant instruments would be calibrated at regular intervals. Exported power (kwh/gwh) The project participant would install all necessary main and check meter facilities in the State Electricity Board Substation, where exported power is connected to the grid. This would be recorded and monitored on a continuous basis and certified the monthly bills by both State Electricity Board and the project participants would form evidence for the data. III. Leakage: The following are the parameters required to be monitored under leakage. Surplus availability of each type of biomass residues The project participants would voluntarily appoint a third party to conduct a biomass assessment survey in the project region every year during the crediting period. The biomass survey would include all the types of biomass residues used in the project activity. The biomass assessment report includes total generation of each type of biomass residues in the region, total quantity of each type of biomass residues consumption the region by various users and surplus available quantity of each type of biomass residue. Based on the annual assessment report, leakage effect in the region as a result of implementation of project activity would be estimated. If leakage found, the leakage emission would be calculated as per the equation provided in section B.6.1. QA AND QC PROCEDURES The project would employ latest state of art microprocessor based high accuracy monitoring and control equipment that measure, record, report, monitor and control various key parameters like generation by the project, auxiliary consumption and net energy exported to the grid. The monitoring and controls would be the part of the Distributed Control System (DCS) of the entire plant. Necessary standby meters or check meters would be installed, to operate in standby mode when the main meters are not working. All meters would be calibrated and sealed as per the industry practices at regular intervals. Hence, high quality is ensured with the above parameters. Sales records would be used and kept for checking consistency of the recorded data. The baseline emission factor is taken from CEA published data. Hence, quality control of the data is not under the control of project proponent and no QA/QC procedures are applicable. DATA STORAGE AND ARCHIVING All of the above parameters monitored under the monitoring plan would be kept for 2 years after the end of the crediting period or the last issuance of CERs for this project activity, whichever is later.

42 page 42 The monitored data would be presented to the verification agency or DOE to whom verification of emission reductions is assigned. Necessary formats / tables / log sheets etc. would be developed by the project participants for monitoring and recording of the data and would be made part of the registered monitoring protocol. B.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion of the baseline study and monitoring methodology: 25/07/2007 Name of the entity: Zenith Energy Services (P) Ltd. Contact information is provided below. Organization: Zenith Energy Services (P) Limited Street/P.O. Box, Building: /B, My Home Plaza, Masabtank, City: Hyderabad State/Region: Andhra Pradesh Postfix/ZIP: Country: India Telephone: , FAX: zenith@zenithenergy.com URL: Represented by: Title: Director Salutation: Mr. Last Name: Reddy Middle Name: Mohan First Name: Attipalli Mobile Direct Fax Direct Telephone Personal E.mail mohan@zenithenergy.com The project proponent has appointed the above-mentioned as the CDM official contact entity and the same is not the project participant. SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: 25/03/2006

43 page 43 C.1.2. Expected operational lifetime of the project activity: C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C Starting date of the first crediting period: C Length of the first crediting period: C.2.2. Fixed crediting period: C Starting date: 01/01/2008 or from the date of registration of project activity, which ever is later. 10y - 0m C Length: SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: As required, the project participants have conducted a Environmental Impact Assessment (EIA) with the objective to review the current environmental status of the plant site, its surrounding areas and the impact of the project on the environment, to plan for environmental management plan which would also meet the requirements of local pollution control board. The environmental impact assessment has concluded that no negative impacts are possible on the environment with the implementation of following environmental management plan. Management during project construction The impact during construction phase on the local environment would be temporary in nature and the effect would reduce gradually on completion of the construction activities. Site preparation: Dust generated during construction activity would be suppressed by sprinkling water Water: The employees and workers at the project site would be provided with necessary drinking water supply and sanitation facilities. The hygienic conditions would be maintained at the project site by providing proper toilet system and septic tank. Noise: The noise effect on the local environment is negligible. However, the workers working at noise generating equipment would be provided with noise protection equipment.

44 page 44 Land: The effect of project on land environment is not significant. The surplus earth would be utilized to fill up low lying areas. Management during operation Air quality management: Major pollutants envisaged from the biomass power plant are particulates, sulphur dioxide, oxides of nitrogen and fugitive dust. The project proponent would adopt the following methods of abatement for the control of air pollution. - Particulate matter would be controlled by providing highly efficient electrostatic precipitator. - Sulphur dioxide emissions would be controlled by dispersing the emissions by providing adequate stalk height. - Green belt would be developed - Water would be sprinkled frequently at all dust generating areas Water and waste water management - The water requirement would be restricted and conserved by recycling treated water to the maximum extent. - The waste water generated by the project would be treated in the Effluent treatment plant and the treated water would be used in a sustainable manner for ash conditioning and green belt development. - Sanitary waste water would be treated in septic tank followed by soak pit. Solid waste management - The main solid waste generated from the biomass power plant would be fly ash and bottom ash. The fly ash generated would be collected in a dry form from ESP and stored in silos. The ash would be supplied to potential entrepreneurs free of cost for brick manufacturing and cement. Green belt development - Green belt development would be undertaken all-round the factory. Plantations contribute towards environmental improvement so as to prevent spreading of particulate and other atmospheric pollutants to nearby areas, providing vegetative cover, increasing the aesthetics and ecological aspects of the surrounding. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: Not applicable, since, no negative environmental impacts are anticipated due to the proposed project activity.

45 page 45 SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: Requirement of Stakeholder Comments Comments from local stake holders are obtained by approaching all the stake holders and obtained necessary clearances. Further a local stake holder meeting is conducted by giving proper notice in the local news papers. During the meeting, the project participant informed them about the project and solicited their comments. The detailed minutes of local stakeholders meeting, including their comments is provided as attachment 1 to the PDD. No negative comments have been received and all have welcomed the project. Identification of Stakeholders The stakeholders identified for the project are the local populace, which is represented by the Village Panchayat. Village Panchayat is an elected body of representatives administering the local area, and it is competent to issue No-Objection Certificate and permission to implement the project. The project proponents also conducted discussions with members of the local population. The local population welcomed the project due to various benefits, such as development of infrastructure in the area, increase of income due to the supply of biomass residues and improvement in their standards of living. Since the project is a biomass power project, which utilizes only surplus biomass residues available in the region, the project would not cause any negative socio-economic impacts on the local populace. Since the project utilizes no other resources like water, there would be no impact on natural resources. Since the project participants have proposed all measures to mitigate environmental impacts and the project is located away from the habitation, there would be no negative impact on stakeholders. Since the project utilizes only surplus biomass residues available in the region, the scarcity of biomass residues to other users would not arise. In addition, the project would not cause displacement of any local populace. The following statutory bodies / stakeholders identified by the Government of Maharashtra have examined and studied all the above aspects and issued necessary clearances / approvals to implement the project: The Maharashtra Pollution Control Board (MPCB) and the Environment Department of Govt. of Maharashtra State takes care the environmental angle and prescribes standards and monitor adherence to standards. The Maharashtra Energy Development Agency (MEDA) is the policy implementation body in respect of biomass power projects in Maharashtra. The Ground water department of the Govt. of Maharashtra state controls the drawl of underground water. Since this project water required for general purpose, the promoters are obtaining clearance from ground water department.

46 page 46 The Maharashtra Electricity Board (MSEB) has given clearance for evacuation of power from the project to the grid and would purchase the exported power at a predetermined tariff. This is regulated through Energy Purchase Agreement. The project participants have already signed Energy Purchase Agreement with MSEB. Stakeholders Involvement The project participants have already approached various stakeholders and obtained their consent as detailed above. The project has obtained Environmental Clearance (EC) from Maharashtra state Environmental Department vide letter no. Env (NOC) 2007/144/CR.21/TC-2 dated 21/03/2007. Govt. of Maharashtra: The Govt. of Maharashtra has issued its approval for setting up of the project activity with Ref. No. SEA/Sec-2/Sec.Engr-3/311/ dated 27/03/06. Energy Purchase Agreement: The Energy Purchase Agreement (EPA) has been made between project proponent (IBE(M)L) and MAHADISCOM for sale of power from the 20MW biomass power plant dated 06/10/2006. MEDA: Maharashtra Energy Development Agency (MEDA) has issued written approval for establishment of project vide letter No.BPP-005/01-02/2282 dated 06/06/2001 and permission for enhancement of capacity in its letter no. PGN/PG-II/BPP-005/ /5646 dated 11/11/2005. MPCB: The Maharashtra Pollution Control Board (MPCB) has issued consent for establishment under AIR (prevention and control of pollution) Act and WATER (prevention and control of pollution) Act with vide letter No. BO/PCI-II/ROAD/EICNO AD /E/CC-277 dated 27/04/2006. Local Village Panchayat: The local Village Panchayat of Karab Khandgaon has issued NO OBJECTION CERTIFICATE (NOC) for setting up of plant at the village dated 19/01/2006. E.2. Summary of the comments received: All stakeholders have issued their approvals and consents for setting up the project and no comments have been received. E.3. Report on how due account was taken of any comments received: No comments received; hence, no actions are applicable.

47 page 47 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Ind-Barath Energies (Maharashtra) Limited. Street/P.O.Box: Plot No. 30A, Road No.1, Film Nagar, Jubilee Hills, Building: City: Hyderabad State/Region: Andhra Pradesh Postfix/ZIP: Country: India Telephone: +91 (40) , FAX: +91 (40) raghu@raghurama.com URL: Represented by: Title: Managing Director Salutation: Mr. Last Name: Raghu Middle Name: First Name: Kanumuri Department: Mobile: Direct FAX: +91 (40) Direct tel: +91 (40) , Personal

48 page 48 Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding is involved in the project activity.

49 page 49 Annex 3 BASELINE INFORMATION This project uses grid emission factor calculations officially published by the Central Electricity Authority (CEA) of India, following the approaches and rules defined in ACM0002. For details and further information on data please see CEA CO 2 data base from the following web link: CDM Carbon Dioxide Baseline Database, Version 2.0 (June 2007)

50 page 50 Annex 4 MONITORING INFORMATION As provided in section B.7.2 of the PDD

51 page 51 Attachment 1 MINUTES OF THE STAKEHODLERS MEETING WITH RESPECT TO 20MW BIOMASS BASED POWER PROJECT OF IND-BHARAT ENERGIES (MAHARASHTRA) LTD. HELD AT PROJECT SITE OF KARAB KHANDGOAN VILLAGE, MUKHED TAHSIL, NANDED DISTRICT OF MAHARASHTRA STATE. IND - BHARAT ENERGIES (MAHARASHTRA) LTD., the project proponent of 20 MW Biomass based power project have conducted a public meeting with the farmers and panchayath members of Karab Khandgoan village on 27 th December 2006 at 11:30 AM to ascertain the views of the stakeholders with respect to setting up of the biomass based power generating station. In response to the notice from the project proponent, panchayath members and number of farmers have participated in the public meeting and expressed their views on the project. Proceedings of the meeting are summarized below. The following members have attended the meeting. Officials 1. Hanumanth Govir Khambavi Gram Panchayath Sarpanch (village president) 2. P.N.Biradhar - Ass. Engineer, MSEB 3. S.S.Dhola - Serveyor, land acquation department 4. Khosla rao patil - Taluka president, congress party 5. Bhansaheb - Advocate and social activist 6. Dr. S.N. Kodgre - Doctor and social activist Farmers 1. Narayan venkatrao jadhav 2. Vittalral syam sundhar rao 3. Shaik Alimuddhin 4. Balaji Madhav rao Jadhav 5. Magdhum 6. Govindrao Bhimrao patil 7. Gangadharrao Athamram 8. Devrao Shivling rao 9. Baburao Nagorao 10. Prabhu Kashiram 11. Mallu Kehrwa Kullawad 12. Jadhav Hanumanth rao 13. Shivaji Ganapathirao Kamble 14. Jadhav Dadharao 15. Datta devarao 16. Baburao kamble 17. Tulairam kamble 18. Gangadhra maruthi 19. Hanumanth sambaji kamble 20. Balaji venkatrao jadhav 21. Raju Eknath kamble 22. peiraji bable

52 page Gangadhar Ullewad Representatives of Project proponent Mr. Satyanarayana (GM) and Mr. Saleem (plant manager) Consultants Mr. Vijay Kumar. M, Zenith Energy Services (P) Ltd. The company General Manager Mr. satyanarayana initiated the meeting, addressing all the stakeholders with a thank note in Hindi. He explained the purpose of meeting and brieft about the company profile. Mr. Satyanarayana also explained about the likely benefits, which will be availed and being availed to the local populace. He informed the attendees about the local people employed for the project activity for various works like construction and supply of materials. He explained about the basic purpose of the project i.e. generation of power from renewable energy sources. Mr. Satyanarayana informed the attendees that the power load in the region will be improved after the establishment of the project, for which the attendees expressed their happiness. Mr. Satyanarayana also elaborated the direct benefits to local people such as direct employment during plant operation, revenues from the sale of agri residues and environmental friendly nature of the project. Mr. Satyanarayana explained the pollution control measures proposed for project activity such as electro static precipitator for precipitating all the suspended particulate matter in the flue gas with 99% efficiency, recommended stalk height for easy dispersal of stalk emissions to ensure the air quality at stipulated standards, effluent treatment plant to treat the waste water generated by project on-site and proposed green belt development in the project premises. Further Mr. Satyanarayana informed that all the pollution control measures proposed will protect the local environment from pollution and keep the project premises pollution free. After the completion of Mr. satyanarayana s speech, other govt. officials and local social activists expressed their views regarding the contribution of the project to the local development such as employment generation, additional revenues and power supply improvement in local language. Subsequntly, Mr. Satyanarayana invited the all the attendees to give their comments and suggestions. All the attendees expressed their enthusiasm on coming up of the power project in their locality. The members inquired about how the project generating mechanism using waste biomass residues. Mr. Satyanarayana gave a clear explanation to the attendees by taking assistance from the plant manager Mr. Saleem. Attendees further inquired the commercial date of Operation and the cost of procurement of biomass. Mr. Satyanarayana informed that the project will likely to be commissioned by January Regarding procurement and cost of biomass Mr. Satyanarayana informed that it will be decided at appropriate time by discussing with higher administratives of the company. One of the attendees asked about the requirement of the biomass for the project activity and how much will be purchased from the local villages? Mr. Satyanarayana explained that the plant requirement would be around 1,50,000 tonnes. He explained that the most of excess biomass residues generated from the local villages will be purchased for the project. He explained that project is planned to procure the biomass with in a radius of 50 km from the project location. Mr. Satyanarayana assured the attendees that the biomass residues generated locally will be given first priority in terms of the purchase of the raw materials. One of the attendees asked about the pollution from the ash generated by the project activity and risk related to the nearby agriculture fields due to disposal of Ash? Mr. Satyanarayana explained that the project uses only biomass residues for plant operation, hence, the amount of ash generated by the project will be comparatively less from the conventional thermal power plant, which uses coal for its operation. However, appropriate precautionary measures will be taken by the company to store the ash in closed premises in the project site to avoid escaping in to the atmosphere. Mr. Satyanarayana also noted that ash will be supplied to brick manufacture and cement units at free of cost. Hence, ash generation from the project activity will not have any affect on the project surroundings.

53 page 53 The meeting was completed at 1:00 PM (IST) with Mr. Saleem giving vote of thanks on behalf of the company to all the participants of the meeting for their presence. All members were satisfied and expressed happiness for conducting the meeting and wished for commissioning of project at the earliest. The president of gram Panchayat has given a letter bout his view on the implementation of proposed project activity and likely benefits for the local area development.

54 page 54

55 page 55