EMISSION REDUCTION MONITORING REPORT

Transcription

1 VCS CLAIM EMISSION REDUCTION MONITORING REPORT QUILLECO HYDROELECTRIC POWER PROJECT CDM registration number: 1265 Sponsor: Colbún S.A. Monitoring Period: From 17/04/2007 to 8/7/2008 Consultant: Poch Ambiental S.A. Version 1.0 April, 2009

2 INDEX 1. PROJECT BACKGROUND MONITORING METHODOLOGY OPERATIONAL AND MANAGEMENT STRUCTURE CALCULATION METHODOLOGY MONITORING RESULT MONITORING PERIOD MONITORED DATA PRESENTATION OF MONITORING RESULTS Build Margin Emission Factor: Operating Margin Emission Factor: EMISSION REDUCTION CALCULATION

3 1. PROJECT BACKGROUND The objective of this verification is to claim Voluntary Carbon Units (VCUs) generated from the project operating start date to the date of CDM registration; known as pre-registration VCUs. The Quilleco Hydroelectric project has been registered as a CDM project by the UNFCCC since July 9th, The following table shows the summary of the project: Table 1: Project background CDM PROJECT DATA Project Name Chile: Quilleco Hydroelectric Project Registration CDM N 1265 Registration Date 09 th Jul. 08 Crediting Period 16 th Dec th Dec. 14 (Renewable) Sectoral scope Scope 1:RenewableEnergy, Run-of-River Hydropower Activity scale Large Methodology used AM0026 ver. 2 Methodology for zero-emissions grid-connected electricity generation from renewable sources in Chile or in countrieswith merit order based dispatch grid Project participants -Colbún S.A. in name of Hidroeléctrica Guardia Vieja S.A. -International Bank for Reconstruction and Development (IBRD) as Trustee of the Netherlands Clean Development Mechanism Facility (NCDMF) Ex-ante average annual ER estimation 172,176 tonnes of CO2 Project boundary Chile, Central Interconnected System (SIC) Installed Capacity Average annual energy generation Project Location Project Activity PROJECT DESCRIPTION 70 MW 422 GWh per year Los Angeles, 8 th Region, Chile The Quilleco Hydroelectric Project consists of a run-of-river power plant of 70 MW that uses the water discharged by the Rucúe hydropower plant (130m3/sec). The project will generate 2

4 approximately 422 GWh per year and will inject 47 MW of firm power to the Central Interconnected grid. The estimates are based on long-term observations of water conditions of the Laja River. Technology used Quilleco uses well-proven technologies for run-ofriver power generation. The project design considers a 4.4 km concrete channels, 3.2 km aqueduct tunnel, 105 m pressure penstock of 59.4 m height, a power house with two sets of 35 MW vertical Francis turbines/generators, 13.8/220 kv power transformer and 300m of a 220 kv double circuit line connected to the existing 220 kv double circuit transmission line to the high voltage Charrúa substation in the Central Interconnected System (SIC). VCS PROJECT STATUS Commissioning date 17 th April 2007 Energy generation from 04/12/2007 to 451,789 MWh 8/07/2008 Build Margin tonco2/mwh (calculated ex-post for year 2007) Operating Margin (calculated ex-ante according to PDD) Combined Margin ton CO2e/ MWh Generated ERs from 04/12/2007 to 206,417 tonnes of CO2 8/07/2008 SUSTAINABLE DEVELOPMENT PERFORMANCE Use of renewable energy resources to displace coal and natural gas thermal power generation in the SIC. Increased commercial activity through clean and renewable source of power. Employment generation in the 8th Region where the project is located, improving economic benefits it the surrounding communities such as Tucapel, Antuco and Quilleco.. Further background on this project can be found in the PDD and associated documents, which are available on the UNFCCC website: 3

5 2. MONITORING METHODOLOGY 2.1 Operational and management structure During year 2005, Colbún S.A. merged with Hidroeléctrica Cenelca S.A., including the assets that belonged to this company, which considered the set of hydroelectric power plants owned by Hidroeléctrica Guardia Vieja S.A. Consequently, the administration, operation, maintenance, commercial aspects and environmental management of the Quilleco Power Plant is currently conducted by Colbún S.A. In order to fulfil the commitments established in the Quilleco Project Design Document, and the ones associated to the related Emission Reduction Purchase Agreement, Colbún S.A. has the following general management structure: Figure 1: General Management Structure General Manager Corporate Affairs Manager Organization and Human Resources Legal Manager Business Department and Energy Management Generation Department Manager Finance and Administration Department Manager Engineering and Projects Department The Generation Department Manager of Colbún S.A. is actually the General Manager of Hidroeléctrica Guardia Vieja S.A. In addition, Colbún S.A. has the following structure inside the Generation Department: 4

6 Figure 2: Generation Department structure Generation Department Manager Sustainable Development Hydroelectric Power Plants Thermoelectric Power Plants Environmental Manager Renewables Energies Manager Risk Prevention Under this structure, the Sustainable Development Manager has with the responsibility, among other things, of managing the administrative and commercial aspects of the projects related to the carbon market, as Quilleco and as other Colbún S.A. projects in different development stages, and ensuring the fulfilment of all applicable environmental and social obligations by the Quilleco power plant. Social aspects are also supported by Corporate Affairs Manager. The Hydroelectric Power Plants Manager is responsible of ensuring the operation of the Quilleco Power Plant, such as other hydroelectric power plants owned by the company, in accordance with the commitments acquired, which include the proper monitoring, data registration, audits and verifications. Besides, Colbún S.A. will continue performing the necessary training to the operators in order to fulfil the tasks in an adequate and transparent manner. 2.2 Calculation methodology The Central Interconnected System (SIC) is coordinated by an independent entity called Load Economic Dispatch Centre (CDEC-SIC). That entity was established by law (Electric Law, DFL N 1, 1982) and is ruled by the Electrical Ruling (Supreme Decree N 327, 1998). The CDEC-SIC programs the dispatch of the power units by strict economic priority, considering the river flows, the opportunity cost of the water, the operational cost of the thermal units and the filling of the hourly load curve of the demand. The outcome is the hourly generation program for each power unit and the hourly marginal cost of the whole system (that cost represents the highest operational cost of the power units generating in each hour). The CDEC must coordinate in real time the dispatch at 5

7 minimum cost of the power units according to the weekly and daily programs. The CDEC-SIC publishes daily and monthly reports of the actual operation of the SIC, including in that report the hourly generation for each power unit and the marginal cost for each hour. The information required is provided by CDEC-SIC and are available publicly through its website at a subscription fee. CNE publishes every six months the Node price report with the indicative expansion plan of the system. The information is publicly available at Project emission reductions are calculated as a combined margin emission factor (CM), consisting of the weighted average of an operating margin (OM) and a Build Margin (BM), following AM0026 (v.2) approved methodology. The OM emission factor from the project activity depends on the actual generation data from the SIC. The dispatch data, obtained from the Economic Dispatch Center (CDEC-SIC), conclusively indicates the type of generation displaced by the addition of Quilleco in the generation mix in the SIC. The monitoring and verification plan for the project uses the data provided by CDEC-SIC. The BM emission factor is determined as option (i) in AM0026, i.e., following the BM emission factor estimation process described in ACM002 (v.6) Option 2, which is calculated on an ex-post basis as the generationweighted average emission factor (tco2/mwh) of the most recent 20% capacity added to the SIC. Step 1) The emission Factor of the Operating Margin: The Emission Factor of the operating margin is calculated as follows: EF OM Where, H EFj, h Generation j, h h= 1, y = H (f1) Generation h= 1 j, h EFj,h: Operating margin Emission factor for proposed CDM project j For hour h, expressed in tco2/mwh, Generationj,h: Generation of proposed CDM project j during hour h, expressed in MWh, H: Total number of hours of the year y. 6

8 The emission factor for the proposed CDM project j, in a system with N CDM projects, for a hour h is based on identification of the marginal plant(s) that would be operated to meet the electricity supplied by the proposed CDM project j. The identification of marginal plant(s) displaced by proposed CDM project j is based on the first-built first served principle. Date of built is defined as the date when the plant begins the dispatch of energy to the grid. In the case of the Quilleco Hydroelectric Project, it will be the second power plant in operation in the SIC as a CDM project activity, after Chacabuquito power plant. The emission factor for any hour h for a CDM project j in system is estimated as weighted average of emission factor of the identified marginal plant(s) that would have supplied electricity to the grid in absence of the jth CDM plant. The emission factor is estimated as follows: M, h D( j, i) d i D( j, i i= 1 EFj = ) (f2) Where, D(j,i): Energy displacement of the marginal plant i due to the proposed CDM project j, expressed in MWh, di: Emission factor of the marginal plant i, expressed in tco2/mwh. M: M is the total number of marginal plants that would be dispatched if the system is operated without the N CDM projects. Energy displacement of the marginal plant i due to the proposed CDM project j, is calculated as follows: i 1 N D ( j, i) = MIN C j D( j, l);( Ai Bi ) D( k, i) (f3) l= 1 k= j+ 1 Where, Ai: Maximum energy generation of the marginal plant i expressed in MWh/h (equivalent to plant capacity in MW), Bi: Actual Energy generation of the CDM marginal plant i expressed in MWh/h, Cj: Energy generation of the CDM project j expressed in MWh/h, N: Total number of CDM projects in the system, M: Total number of additional marginal plants that should be dispatched if the system is operated without the N CDM projects. di, the emission factor for displaced marginal plant, is estimated as follows: 7

9 d i = SFC CEF, Oxid (f4) i OM i i Where, SFCi: Is the specific fuel consumption of ith marginal power plant, expressed as (ton of fuel or TJ)/MWh, CEFOM,i: is the CO2 emission factor of fuel used in ith marginal power plant, expressed as tco2/ (ton of fuel or TJ), Oxidi: is fraction of carbon in fuel, used in ith marginal plant, oxidized during combustion. The marginal plant(s) are those power plants listed in the top of the grid system dispatch order during hour h needed to meet the electricity demand at the hour h without the generation of CDM project(s). If no thermal power plants are needed to meet the demand without the CDM projects, then the emission factor of the marginal plant is zero. The generation of Quilleco power plant is obtained from the metering system which follows a national standard of 0.2% error allowance on a KWh base. Hourly energy data obtained from the metering system is submitted to CDEC-SIC every two hours as for all other generating units of the system. The Semi-annual Node Price Report and the IPCC Good Practice Guidance provide all the information to calculate the emission factors for all the power plants within the Chilean grids, including future plants projected in the expansion plan. Node Price Reports inform about the specific fuel consumption for every thermal power plant, which are used together with the carbon content of the different fuels as reported by the IPCC. Step 2) Calculation of the Build Margin BM As described in AM0026, the emission factor for the build margin for each crediting period can be calculated based on the most recent 20% of capacity added to the grid (Option 2 for Build Margin Calculation of ACM002). EF BM L EFBM, i GenBM, i, i = i= 1 L (f5) Gen i= 1 BM, i Where, L: Group of electricity generation plants that compromise 20% of the system generation (in MWh) and that have been built most recently. Power plant 8

10 capacity additions registered as CDM project activities should be excluded from the sample group L, EFBM,i: Emission factor of ith electricity generation plant in the build margin, expressed in tco2/mwh, GenBM,i: projected generation for the ith electricity generation plant included in the build margin, expressed in MWh. EF BM, i = SFC BM, i CEFBM, i Oxid i (f6) Where, SFCBM,i: Specific fuel consumption of the ith electricity generation plant, expressed in ton of fuel /MWh or TJ of fuel /MWh. The data shall be taken from published data of electricity regulatory authority, CEFBM,i: CO2 content of fuel used in ith electricity generation plant, expressed as tco2/(ton of fuel or TJ of fuel), Oxidi: Fuel oxidation factor, expressed as fraction. Step 3) Project Emission Reductions The combined emission factor for the proposed Quilleco Hydroelectric Project, according to AM0026 (v.2), is calculated with the weighted average for both the Operating Margin (OM) and the Build Margin (BM) as follows: EF y wom EFOM, y + wbm EFBM, y = (f7) Where, EFOM,y: Emission factor for operating margin power generation sources, in tco2/mwh wom: 0.5 Weight for operating margin emission factor, EFBM: Emission factor for build margin power generation sources, in tco2/mwh, wbm: 0.5 Weight for build margin emission factor. The baseline emissions for the project are calculated as follows: BE y Where, = EF Generation (f8) y y EFy: Baseline emission factor, in tco2/mwh, 9

11 Generationy: Electricity generated by the proposed CDM Project in year y (in MWh). Finally, the project mainly reduces CO2 emissions through substitution of power generation supplied by the existing generation sources connected to the grid and likely future additions to the grid. The emission reduction (ERy) by the project activity during year y is equal to the Baseline Emissions. Since the Quilleco Hydroelectric Project consists of a hydro power plant, there are no Project Emissions (PEy). Additionally, as per AM0026 (v.2), no leakage was identified for this project activity (Ly=0). The emission reduction can be expressed as follows: ER = BE PE L = BE (f9) y y y y y Further information to calculate the emission factor is decrypted in the PDD of the project. A8JOEATOHAHF 3. MONITORING RESULT 3.1 Monitoring period The purpose is to verify this project under VCS, from the project starting operating date to the CDM registration date. Thus, from 17th April 2007 to 8th July The project was registered on 9th July Monitored data All the monitoring data and parameters are shown in following tables. Data / Parameter: Generationh Data unit: Energy in MWh Description: Energy Generation of the Project for each hour h Source of data to On-site metering system (same data submitted to CDEC-SIC) applied for the 451,789 MWh Electronic measurement system each 15 minutes. measurement Verification procedures shall be applied based on 10

12 Monitoring QA/QC procedures to be redundant energy meters. Hourly measurement Meter should have a maximum error of 0.2% and be calibrated periodically according to local standards fo electricity transactions in CDEC-SIC. Metering data is sent regularly to CDEC-SIC where a balance is made for energy transactions between power generators. Data / Parameter: COEFii, y Data unit: tco2 per mass or volume CO2 emission factor of each plant by fuel type used, taking Description: into account the carbon content of the fuels used by relevant power sources i and percent of oxidation of fuel in year y Source of data to IPCC Guidelines and CNE Node Price Reports applied for the Values in table 5, table 6 and table 7 of chapter 3.3. Calculation based on official data from CNE s Node Price measurement Report. Verification procedure shall be applied based on hystorical data per fuel type. Monitoring Yearly or twice a year Internal validation check should be performed contrasting QA/QC procedures historical data for existing plants. For new plants, validation to be should be accomplished through fuel type normal emission factors form similar plants. i refers to the power sources delivering electricity to the grid not including low operating cost and must run power plants and including imports to the grid. Data / Parameter: EFy 11

13 Data unit: tco2e/mwh Description: CO2e Emission factor of the displaced energy from the grid Source of data to Calculated based on formula f7 applied for the tco2e/mwh measurement Calculation based on official data from CNE s Node Price Report and AM002 procedures. Monitoring Annually QA/QC procedures Automatic to be worksheet calculation procedure through a revised Data / Parameter: EFOM,y Data unit: tco2e/mwh Description: Operating Margin Emission Factor Source of data to Calculated based on formula f1 using CDEC-SIC data applied for the tco2e/mwh measurement Calculated procedures using CDEC-SIC databases and AM0026 Monitoring Annually QA/QC procedures Automatic calculation procedure through a revised to be worksheet. Calculation should be done after CDEC-SIC energy balance to ensure data validity 12

14 Data / Parameter: EFj,h Data unit: tco2e/mwh Description: Operating Margin Emission Factor of hour h Source of data to Calculated based on formula f2 using CDEC-SIC data applied for the Average estimation is tco2e/mwh (EFOM) measurement Calculated procedures. from CDEC-SIC databases and AM0026 Monitoring hourly QA/QC procedures Automatic calculation procedure through a revised to be worksheet. Calculation should be done after CDEC-SIC energy balance to ensure data validity Data / Parameter: D(j,i) Data unit: Energy in MWh Description: Energy displacement of the marginal plant i due to the proposed CDM project j Source of data to Calculated based on formula f3 using CDEC-SIC data applied for the Displaced energy is calculated hourly for each system unit Total energy displacement is equivalent to project generation (422 GWh per year) measurement Calculated procedures. from CDEC-SIC databases and AM

15 Monitoring QA/QC procedures to be hourly Automatic calculation procedure through a revised worksheet. Calculation should be done after CDEC-SIC energy balance to ensure data validity Data / Parameter: di Data unit: tco2e/mwh Description: Emission factor of the marginal plant i, Source of data to IPCC manual and CNE node price report Average for Coal powered units = 1.29 tco2e per MWh applied for the Average for diesel powered units = 0.81 tco2 per MWh Average for natural gas powered units = 0.55 tco2 per MWh Calculation based on official data from CNE s Node Price measurement Report. Verification procedure shall be applied based on hystorical data per fuel type. Monitoring hourly QA/QC procedures Calculation based on official data. to be Data / Parameter: SFCi Data unit: Fuel intensity in Ton/MWh or TJ/MWh Description: Specific fuel consumption per unit of electric energy produced in the i th marginal plant Source of data to CNE node price report Average for Coal powered units = 0,56 tons per MWh applied for the Average for diesel powered units = 216 m3 per MWh Average for natural gas powered units = 0.25 m3 per MWh 14

16 Calculation based on official data from CNE s Node Price measurement Report. Verification procedure shall be applied based on hystorical data per fuel type. Monitoring Twice a year QA/QC procedures to be Data is obtained from official reports. Historic comparison o each unit can provide data validation for existing and new units in the system. Data / Parameter: M Data unit: Number Description: Number of electricity generation plants on the margin, tha would supply to the system in the absence of the CDM projects in the system Source of data to Calculation based on formula 2 and CDEC-SIC data applied for the Not available measurement Calculated procedures. from CDEC-SIC databases and AM0026 Monitoring Hourly QA/QC procedures Electronic worksheet shall be implemented to delive to be automatic calculations through revised worksheet Data / Parameter: N Data unit: Number Description: List of CDM plants in the system 15

17 Source of data to applied for the measurement Monitoring QA/QC procedures to be CDEC-SIC and UNFCCC registered projects for the country 1 Determined from CDEC-SIC databases As required Data is obtained from official reports. Data / Parameter: Cj Data unit: MWh Description: Electric energy of the j th CDM project of the system (j = 1.. N) in the hour h Source of data to CDEC-SIC applied for the Since N=1, all CDM energy is equivalent to 422 GWh per year measurement Calculated procedures. from CDEC-SIC databases and AM0026 Monitoring hourly QA/QC procedures Automatic calculation procedure through a revised to be worksheet. Calculation should be done after CDEC-SIC energy balance to ensure data validity 16

18 Data / Parameter: Ai Data unit: MW Description: Generation capacity of the i th plant on the margin during hour h Source of data to CDEC-SIC applied for the Several system units are considered in the estimation. Officia CDEC-SIC data was used measurement Determined from CDEC-SIC databases Monitoring As required QA/QC procedures Data is obtained from official CDEC-SIC databases. to be Data / Parameter: Bi Data unit: MWh Description: Electric energy of the i th plant on the margin during hour h Source of data to CDEC-SIC applied for the Several system units are considered in the estimation. measurement Determined from CDEC-SIC databases Monitoring Hourly 17

19 QA/QC procedures to be Data is obtained from official CDEC-SIC databases. Data / Parameter: EF BM,y Data unit: tco2e/mwh Description: Build Margin Emission Factor of the grid for the year y Source of data to Calculated based on formula f5. based on CNE Node Price Report and IPCC manual applied for the 0,397 tco2e/mwh measurement Calculated procedures using CDEC-SIC databases and AM0026 Monitoring Annually QA/QC procedures to be Automatic calculation through a revised worksheet using CDEC-SIC and official databases and CNE Node Price repor values. Data / Parameter: EFBM,,i Data unit: tco2e/mwh Description: Emission Factor for the i th plant in the Build Margin Cohort for the year y Source of data to Calculated based on formula f6. CNE Node Price Report, IPCC manual, CDEC-SIC applied for the Average estimation is 0,397 tco2e/mwh (EFOM) Calculated from CDEC-SIC databases and AM

20 measurement Monitoring QA/QC procedures to be procedures. Annually Official data is used Data / Parameter: GenBM,,i Data unit: MWh Description: Energy generation of the i th plan on the Build Margin cohort Source of data to CDEC-SIC (for ex-post calculation) applied for the Several system units are considered in the estimation. Values in table 3 of chapter 3.3. measurement Determined from CDEC-SIC databases Monitoring Annually QA/QC procedures to be Automatic calculation through a revised worksheet using CDEC-SIC data Data / Parameter: Plant name Data unit: text Description: Plant name. Identification of power sources Source of data to CDEC-SIC applied for the Several system units are considered in the estimation. Several system units in table 2 of chapter

21 measurement Monitoring QA/QC procedures to be Determined from CDEC-SIC databases As new power plants are available in the system Data / Parameter: CEFi Data unit: TonCO2 per ton of fuel or TJ Description: tco2/(ton of fuel or TJ of fuel tco2/(ton of fuel or TJ of fuel Carbon emission factor of fuel used in the i th plant of the Build Margin cohort Estimated based on official data form CNE node price report Source of data to and IPCC default values applied for the Values in table 6 of chapter 3.3. measurement Determined from IPCCC guidelines Monitoring Annually QA/QC procedures to be Data / Parameter: Oxidi Data unit: % Description: Fraction of fuel oxidized on combustion Source of data to IPCC Guidelines 20

22 applied for the measurement Monitoring QA/QC procedures to be Values in table 7 of chapter 3.3. Determined from IPCCC guidelines As required Data / Parameter: SFCBM,i Data unit: ton of fuel /MWh or TJ of fuel /MWh Description: Specific fuel consumption of the i th electricity generation plant Source of data to CNE node price report and CDEC-SIC applied for the Values in table 4, table 5 of chapter 3.3. Determined from IPCCC guidelines and official data form CN measurement node price reports Monitoring Yearly or twice a year Internal validation check should be performed contrasting QA/QC procedures historical data for existing plants. For new plants, validation to be should be accomplished through fuel type normal emission factors for similar plants. 21

23 Data / Parameter: wbm Data unit: % Description: Weight for Build Margin emission factor Source of data to AM0026 default value = 50% applied for the 50% measurement AM0026 procedures Monitoring Annually QA/QC procedures to be Data / Parameter: WOM Data unit: % Description: Weight for Operating Margin emission factor Source of data to AM0026 default value = 50% applied for the 50% purpose Expected emission measurement AM0026 procedures Monitoring Annually QA/QC procedures to be 22

24 Data / Parameter: Changes in the regulatory framework that could affect the methodology Data unit: Text Description: Changes in the regulatory framework that could affect the methodology Source of data to Official Gazette applied for the - measurement - Monitoring As required QA/QC procedures - to be 3.3 Presentation of monitoring results Build Margin Emission Factor: Selection of the set of power capacity additions in the SIC that comprise 20% of the system generation and that have been built most recently. Energy Generation of every power plant included for the year representing the most recent information available: provided by the CDEC-SIC. Specific Fuel Consumption for every power plant included: Node Price Report by CNE. Fuel Net Calorific values: National Energy Commission (CNE) Annual Energy Balance and 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Gas Inventories. Fuel CO2 Emission Factor: 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Gas Inventories. 23

25 Oxidation factor: 1996 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Gas Inventories. Table 2: Power capacity additions that comprise 20% and built most recently Power Plant Fuel Operation Date Campanario Natural Gas/Diesel 2007 Canela Wind 2007 Cañete Diesel 2007 Casablanca 1 Diesel 2007 Casablanca 2 Diesel 2007 Chiburgo Hydroelectric 2007 Chufken Diesel 2007 Concon Diesel 2007 Constitucion 1 Diesel 2007 Curacautin Diesel 2007 Curauma Diesel 2007 Degan Diesel 2007 Esperanza 1 Diesel 2007 Esperanza 2 Diesel 2007 Esperanza TG Diesel 2007 Eyzaguirre Hydroelectric 2007 Fopaco Biomass 2007 Hornito Hydroelectric 2007 Las Vegas Diesel 2007 Lebu Diesel 2007 Los Sauces Diesel 2007 Los Vientos Diesel 2007 Malleco Diesel 2007 Montepatria Diesel 2007 Palmucho Hydroelectric 2007 Punitaqui Diesel 2007 Quilleco Hydroelectric 2007 Rincon Hydroelectric 2007 San Isidro 2 Natural Gas/Diesel 2007 Ancud Diesel 2006 Nueva Aldea 2 Diesel 2006 Quellon Diesel 2006 Antilhue TG Diesel

26 Power Plant Fuel Operation Date Candelaria Natural Gas/Diesel 2005 Coronel Natural Gas/Diesel 2005 Horcones Natural Gas/Diesel 2004 Laguna Verde TG Diesel 2004 Licanten Biomass 2004 Ralco Hydroelectric 2004 Valdivia Biomass 2004 Florida Hydroelectric 2003 Nehuenco 2 Natural Gas/Diesel 2003 Nehuenco 9B Natural Gas/Diesel 2002 San Francisco Mostazal Diesel 2002 Constitucion Biomass 2001 Laja Biomass 2001 Mampil Hydroelectric 2000 Peuchen Hydroelectric 2000 Source: Project Participant and CDEC-SIC Table 3: 2007 Energy Generation of every power plant included Power Plant 2007 Energy Generated [MWh] Campanario 287,029 Canela 2,827 Cañete 5,369 Casablanca 1 1,472 Casablanca 2 1,397 Chiburgo 39,340 Chufken 4,362 Concon 7,873 Constitucion 1 3,743 Curacautin 7,579 Curauma 4,528 Degan 77,482 25

27 Power Plant 2007 Energy Generated [MWh] Esperanza 1 2,128 Esperanza 2 2,399 Esperanza TG 367 Eyzaguirre 6,357 Fopaco 46,491 Hornito 4,813 Las Vegas 6,814 Lebu 5,603 Los Sauces 4,930 Los Vientos 418,872 Malleco 5,755 Montepatria 1,561 Palmucho 23,327 Punitaqui 863 Quilleco 282,099 Rincon 1 San Isidro 2 766,303 Ancud 7,176 Nueva Aldea 2 9,977 Quellon 14,138 Antilhue TG 348,924 Candelaria 546,095 Coronel 188,126 Horcones 61,133 Laguna Verde TG 39,946 Licanten 9,620 Ralco 1,918,469 Valdivia 248,395 Florida 149,516 Nehuenco 2 2,269,199 Nehuenco 9B 148,798 San Francisco Mostazal 24,313 Constitucion 56,886 26

28 Power Plant 2007 Energy Generated [MWh] Laja 47,289 Mampil 121,255 Peuchen 177,246 Source: Project Participant and CDEC-SIC Table 4: Annual Fuel Consumption of Power Plants in ton/mwh Included in Build Margin for 2007 Power Plant Specific Fuel Specific Fuel Consumption Consumption Units Natural Gas Diesel Campanario 10,88 [Mbtu/MWh] Campanario 0,246 [Ton/MWh] Cañete 0 Casablanca 1 0,215 [Ton/MWh] Casablanca 2 0,296 [Ton/MWh] Chufken 0 Concon 0,276 [m3/mwh] Constitucion 1 0,282 [Ton/MWh] Curacautin 0 Curauma 0,208 [Ton/MWh] Degan 0,219 [Ton/MWh] Esperanza 1 0,260 [m3/mwh] Esperanza 2 0,269 [m3/mwh] Esperanza TG 0,406 [m3/mwh] Las Vegas 0,275 [m3/mwh] Lebu 0 Los Sauces 0 Los vientos 0,255 [Ton/MWh] Malleco 0 Montepatria 0 Punitaqui 0 San Isidro 2 0,195 [dam3/mwh] San Isidro 2 0,170 [Ton/MWh] Ancud 0,242 [Ton/MWh] Nueva Aldea 2 0,345 [m3/mwh] Quellon 0,242 [Ton/MWh] Antilhue TG 0,274 [Ton/MWh] Candelaria 10,89 [Mbtu/MWh] Candelaria 0,322 [Ton/MWh] Coronel 0,256 [dam3/mwh] Coronel 0,216 [Ton/MWh] Horcones 15,55 [Mbtu/MWh] Horcones 0,408 [m3/mwh] 27

29 Laguna Verde TG 0,264 [Ton/MWh] Nehuenco 2 0,189 [m3/mwh] Nehuenco 2 6,687 [Mbtu/MWh] Nehuenco 9B 0,327 [m3/mwh] Nehuenco 9B 11,736 [Mbtu/MWh] San Fco Mostazal 0 Source: CNE, Node Price Report. The following table shows the Net Calorific Values used for estimating the Build Margin emission factor. The power fossil fuel plants included only consider diesel and/or Natural gas. Tabla 5: Fuel Net Calorific Values Gross Calorific Value GCV to NCT Conversion Net Calorific Value [GJ/kg] & [GJ/m 3 ] [GJ/kg] & [GJ/m 3 ] Diesel 0, ,95 0, Natural Gas 0, ,9 0, Tabla 6: Fuel CO2 Emission Factor CO 2 Emission Factor [Ton CO 2 /GJ] Diesel 0, Natural Gas 0, Coal 0, Petcoke 0, Tabla 7: Fuel Oxidation Factor Fuel Oxidation Factor Diesel Natural Gas Coal Petcoke Source: IPCC 1996, 28

30 3.3.2 Operating Margin Emission Factor: The Operating Margin used in this monitoring report was calculated ex-ante in Quilleco`s PDD. The value of BM 2007 is been calculated and analysed, and it will be shown as soon as possible. 3.4 Emission reduction calculation The value ex-post of the Build margin obtained by using the complete information shown in the tables above is: Build Margin Emission Factor EFgrid,BM,2007 [tco2/mwh] For estimation purposes within the PDD, the information of CDEC-SIC real dispatch data from 2002 to 2006 has been used in order to determine the real emission factor of each year and average emission factor of the period: SIC Baseline Emission Reductions in Tonnes CO2e/GWh Avg. EF_OMy Source: Chile: Quilleco Hydroelectric Project PDD. The combined margin emission factor EFy is: EFOMy (tonco2e/mwh) From EFBM (tonco2e/mwh) 2007 EFy (tonco2e/mwh) The project emission reduction ERy is: Quilleco Generation (MWh) EFy (tonco2e/mwh) BEy (tonco2e) Ly(tonCO2e) ERy (tonco2e) 29

31 From 4/12/2007 to 8/07/ , , ,417 30