Gold Standard Validation Report

Transcription

1 Gold Standard Validation Report CARBON ASSET MANAGEMENT SWEDEN AB Gold Standard Validation of the Ningxia Yinyi MW Wind-farm Project, China Report No April 2008 TÜV SÜD Industrie Service GmbH Carbon Management Service Westendstr Munich GERMANY

2 Page 1 of 10 Report No. Date of first issue Revision No. Date of this revision Certificate No Subject: Executing Operational Unit: Contact: Client: Contract approved by: Report Title: Number of pages Gold Standard Validation of a CDM Project TÜV SÜD Industrie Service GmbH Carbon Management Service Westendstr Munich Federal Republic of Germany Carbon Asset Management Sweden AB Drottninggatan 92-94, Stockholm, Sweden Werner Betzenbichler Gold Standard Validation of the Ningxia Yinyi MW Wind-farm Project, China 9 (excluding annexes and cover page) Summary: The Certification Body Climate and Energy has been ordered by Carbon Asset Management Sweden AB to perform a validation based on Gold Standard of the above mentioned project. In summary, it is TÜV SÜD s opinion that the project Ningxia Yinyi MW Wind-farm Project, China, as described in the revised annex to the project design document of January 2008, meets all relevant Gold Standard requirements for CDM projects. The project has been registered already as CDM project. Hence all the UNFCCC requirements have been met as set by the Kyoto Protocol, the Marrakech Accords and relevant guidance by the CDM Executive Board and that the project furthermore meets all relevant host country criteria and correctly applies the baseline and monitoring methodologies ACM0002 Ver 06. Hence, TÜV SÜD will recommend the project for registration as Gold Standard CDM project activity by the Gold Standard Advisory Board. Additionally the assessment team reviewed the estimation of the projected emission reductions. We can confirm that the indicated amount of emission reductions of 687,980 tonnes CO 2e over a crediting period of seven years, resulting in a calculated annual average of tonnes CO 2e represent a reasonable estimation using the assumptions given by the project documents. Work carried out by: Dr. S. Kolmetz Wang Fen Internal Quality Control Javier Castro by:

3 Page 2 of 10 Abbreviations CAR CDM CER CR DOE EIA / EA ER GHG GS KP MP PDD TÜV SÜD UNFCCC VVM Corrective Action Request Clean Development Mechanism Certified Emission Reduction Clarification Request Designated Operational Entity Environmental Impact Assessment / Environmental Assessment Emission reduction Greenhouse gas(es) Gold Standard Kyoto Protocol Monitoring Plan Project Design Document TÜV SÜD Industrie Service GmbH United Nations Framework Convention on Climate Change Validation and Verification Manual

4 Page 3 of 10 Table of Contents Page 1 INTRODUCTION Objective Scope GHG Project Description 4 2 METHODOLOGY GOLD STANDARD CRITERIA Eligibility of the project for Gold Standard Technological transfer Sustainable development screen Use of the additionality tool ODA Additionality screen Use of conservativeness Monitoring of sustainable development parameters Environmental Impacts Stakeholder consultation requirements 9 4 VALIDATION OPINION Annex 1: Information Reference List

5 Page 4 of 10 1 INTRODUCTION 1.1 Objective Carbon Asset Management Sweden AB has commissioned TÜV SÜD Industrie Service GmbH (TÜV SÜD) to validate the Ningxia Yinyi MW Wind-farm Project, China project in relation to the Gold Standards. The purpose of a validation is to have an independent Third Party perform a compliance test against the additional requirements as set by the Gold Standard for CDM projects. 1.2 Scope The validation scope is defined as an independent and objective review of the project design document, the project s baseline study, monitoring plan and other relevant documents. The information in these documents is reviewed against the Gold Standard requirements. The audit team has been provided with a new PDD for GS in January 2007 that serves as the basis for the final assessment presented herewith. 1.3 GHG Project Description The objective of Ningxia Yinyi 49.50MW Wind-farm Project is to generate renewable electricity using wind power resources and to sell the generated output to the Ningxia Power Grid on the basis of a power purchase agreement (PPA) signed by the project owner and Ningxia Electric Power Company. The proposed project is located at Dundunliang, about 80km away from southwest Wuzhong, Midwest of Ningxia. It is about 135km away from Yinchuan, the capital of Ningxia. The proposed project will have a total installed capacity of MW. A total of 66 wind turbines will be installed with a unit capacity of 750 kw. The proposed project has been connected into the grid and tested on 22 March, The proposed project is expected to sell about 104,891 MWh power to the grid and the estimation of the annual average emission reduction is 98,283 tco2e. Project participants are Ningxia Yinyi Wind Power Generation Co., Ltd. (NYWP) and Carbon Asset Management Sweden AB., Host Party of the project activity is China. This is a bilateral project. The category of the project activity is in Scope 1 Energy industries (Electricity generation from wind power), applied baselines and monitoring methodologies are ACM0002, vers. 6.

6 Page 5 of 10 METHODOLOGY The Gold Standard (GS) validation of the project must be seen in conjunction with the validation report and protocol for the project (TÜV SÜD Report No: , dated 24 July 2007). The Gold Standard criteria could be divided in the following points: Eligibility of the project for GS Technological transfer Sustainable development screen Use of the additionality tool ODA Additionality screen Use of conservativeness Monitoring of sustainable development parameters Environmental Impacts Stakeholder consultation requirements A discussion is made for every of these points in chapter 2.

7 Page 6 of 10 2 GOLD STANDARD CRITERIA The correct application of the baseline has been confirmed by a third independent local expert in China (see CDM validation report the local expert is Feng Wan from Jiangsu TÜV Product Service Beijing Branch, Unit 918, Landmark Tower 2, No.8 North Dongsanhuan Road Beijing , P.R. China) The reference list of all the documents submitted by the project proponent and use for this validation is included in Annex Eligibility of the project for Gold Standard According to the Gold Standards all projects technologies included in the figure below are eligible. The assessed project uses a renewable energy technology namely wind energy. This project uses an ecologically sound electricity generation and the emission reductions due to replacement of electricity generated mainly by grid connected coal-fired power plants count towards the project s overall emission reductions. Hence the project is eligible under Gold Standard.

8 Page 7 of Technological transfer There is no technology transfer from an industrialized country to a developing country for the proposed project. 2.3 Sustainable development screen The project has used the sustainable development indicators matrix as required by the Gold Standards. The total score obtained is a +7 where: Local/global environment has a subtotal of +2 Social sustainability and development has a subtotal of +3 Economic and technological development has a subtotal of +2 For none of the indicator a negative score has been given. All the assumptions used to define the score values have been revised by the validator, based on submitted documentation and the on-site visit made during the validation of the project for the UNFCCC. Hence this criterion has been correctly demonstrated by the project proponents. 2.4 Use of the additionality tool (version 3) The project follows in a correct form every step of the approved additionality tool. Step 1 defines correctly all the alternative scenarios and the consistence with the laws and regulations. Step 2 is done based on option III of the investment analysis method. The calculations presented have been checked and found correct and appropriate for this specific project activity. Step 3 has also been discussed in the PDD even though is an optional step in the case that step 2 is used. The barriers given are plausible, hence accepted during the validation. Step 4 shows that there is no similar project. There was a reform of the Chinese electric power market in 2002 and all projects installed after 2002 have to compete economically. There are no other projects not applying for CDM after Hence the project has demonstrated the additionality correctly using the tool approved by the EB and confirmed by the registration of the project.

9 Page 8 of ODA Additionality screen The chapter A.4.5 clearly shows that ODA funding has not been included to realise any step of the process and even the bank s funds do not include any ODA funding. Hence the project complies with the requirements. 2.6 Use of conservativeness The PDD has been prepared in a professional way. All the assumptions and parameters used for in the PDD comply with the conservativeness criteria. To show how the PDD presents this criterion, following examples are given: For the baseline calculation instead of the grid factors published by the Chinese DNA (NDRC) in August 2007 the smaller figures are used based on the grid factors published by the NDRC in December Hence it is clear that the project proponent is aware of this criteria and applies the same where it is possible. 2.7 Monitoring of sustainable development parameters The PDD shows all the parameters to be monitored. The monitoring process of every parameter is clearly explained in the PDD. Hence the monitoring plan is plausible and verifiable if implemented as stated in the PDD. As there is no critical parameter according to the Sustainable Development Assessment Matrix no further monitoring regarding sustainability is necessary. 2.8 Environmental Impacts An environmental impact analysis is required by Chinese law and has been approved by the local Chinese authorities, the Ningxia Environment Protection Bureau, in February, According to the GS an EIA should be performed if any sustainable development indicator is scored with -1. Hence this project does not need an EIA to comply with the GS requirements. All the possible impacts caused by the project activities have been clearly explained in the PDD. The diagnostic includes all the relevant environmental issues as land use, noise, waste water and sewage, dust and air quality, ecological environment and interference with communication. Every of this aspect have been clearly described in the PDD and the complete information has been submitted to the validator. Hence the project does comply with the environmental impact criterion.

10 Page 9 of Stakeholder consultation requirements The project proponent has carried out two stakeholder consultations as required by the Gold Standard. The initial stakeholder consultation has been fulfilled by direct consultations and the distribution of questionnaires as there are only few residents in the near vicinity of the project. Hence, the consultation of the representatives can be considered to be sufficient. The second stakeholder consultation has been accomplished on 21 st of November The meeting has been well prepared by establishing a webpage, installing a hotline, bill posting and a press release. Adequate media have been used and it can be confirmed that every stakeholder had the possibility to get informed about the project activity. A video from the stakeholder meeting was available for the GS validation. Moreover, NGO s such as WWF, Greenpeace China and REEEP have been invited to participate. There were few responses to these invitations but all of them were positive. Hence the requirements have been fulfilled.

11 Page 10 of 10 3 VALIDATION OPINION The Certification Body Climate and Energy has been ordered by Carbon Asset Management Sweden AB to perform a validation based on Gold Standard of the above mentioned project. In summary, it is TÜV SÜD s opinion that the project Ningxia Yinyi MW Wind-farm Project, China, as described in the revised project design document of January 2007, meets all relevant Gold Standard requirements for CDM projects. The project has been submitted for registration already as CDM project. Hence all the UNFCCC requirements have been met as set by the Kyoto Protocol, the Marrakech Accords and relevant guidance by the CDM Executive Board and that the project furthermore meets all relevant host country criteria and correctly applies the baseline and monitoring methodologies ACM0002 Ver 06. Hence, TÜV SÜD will recommend the project for registration as Gold Standard CDM project activity by the Gold Standard Advisory Board. Additionally the assessment team reviewed the estimation of the projected emission reductions. We can confirm that the indicated amount of emission reductions of 687,980 tonnes CO 2e over a crediting period of seven years, resulting in a calculated annual average of tonnes CO 2e represent a reasonable estimation using the assumptions given by the project documents. The validation is based on the information made available to us and the engagement conditions detailed in this report. The only purpose of this report is its use during the registration process as GS-CDM project. Hence, TÜV SÜD can not be held liable by any party for decisions made or not made based on the validation opinion, which will go beyond that purpose. Munich, Munich, Javier Castro Deputy Head of certification body climate and energy Dr. Sven Kolmetz Project Manager

12 Annex 1: Reference List

13 Final Report Annex 1 04/04/2008 Validation of the Ningxia Yingyi 49.50MW Wind-farm Project Information Reference List Page 1 of 2 Reference Document or Type of Information No. 1 Project Design Document for CDM project Ningxia Yingyi 49.50MW Wind-farm Project, version 2 2 Consolidated baseline methodology for grid-connected electricity generation from renewable sources, ACM0002, version 06 3 Tool for the demonstration and assessment of additionality, version 03 4 Participant list of on-site interview, signed on 29/03/ Validation team: Mr. Sven Kolmetz TÜV SÜD Industrie Service GmbH. Ms. Feng Wan TÜV SÜD China, Beijing branch. On-site interviews and inspection at the office conducted on 29/03/2007 by validators of TÜV SÜD. Interviewed persons: Mr. Gao Yuan Ningxia Yinyi Wind Power Generation Co., Lt General Manager Mr. Wang Jisheng Ningxia Yinyi Wind Power Generation Co., Ltd Vice GM Mr. Li Weidong Ningxia Yinyi Wind Power Generation Co., Ltd. Project manager Mr. Gao Zhisheng Ningxia Yinyi Wind Power Generation Co., Ltd. Project manager Ms. Shen Lin Ningxia CDM Service Center Engineer Ms. Zhao Ying Ningxia CDM Service Center Vice Director Mr. Zhang Jisheng Ningxia CDM Service Center Director 6 Feasibility study of Ningxia Yingyi 49.50MW Wind-farm Projec, dated on May, Xinjiang Electric Power Design & TÜV SÜD INDUSTRIE SERVICE GMBH

14 Final Report Annex 1 04/04/2008 Validation of the Ningxia Yingyi 49.50MW Wind-farm Project Information Reference List Page 2 of 2 Reference No. Document or Type of Information Research Institution, submitted on March 29, Approval of feasibility report of Ningxia Yinyi 49.5 MW Wind -farm Project, dated on July. 3, 2006, Ningxia Development and Reform Commission, submitted on March 29, Agreement for purchasing the electricity between NYWP and the grid power company 9 Evidence of starting construction, dated on 27/07/2006, Ningxia Website, submitted on 29/03/ Guidance of Purchasing Price of Ningxia Yinyi Wind-farm Project, date on 03/07/2006, Ningxia Development and Reform Commission, submitted on 29/03/ EIA of Ningxia Yinyi 49.5 MW Wind-farm Project, dated on 20/02/2006, Ningxia Dingxing Environmental Engineering Evaluation & consulting Center, submitted on 29/03/ Wind-farm Map, submitted on 29/03/ Approval of EIA, date on 28/02/2006, Ningxia Environment Protection Bureau, submitted on 29/03/ Wind turbine generator technical information, submitted on 29/03/ Bank loan Agreement, dated on 13/02/2006, Construction Bank of China, Ningxia Branch, submitted on 29/03/ Contract of purchasing equipment, dated on 10/06/2006, submitted on 29/03/ Cooperation Agreement between enduser and project developer, dated on 18/01/2006, submitted on 29/03/ Evidence of Benchmark submitted on 29/03/ Validation Audit participants list, signed and submitted on 29/03/ Evidence of CDM has been considered in the early stage of the project, submitted on 29/03/ LOA of NDRC, submitted on 29/03/ Documented paper of Stakeholders Comments TÜV SÜD INDUSTRIE SERVICE GMBH

15 Final Report Annex 1 04/04/2008 Validation of the Ningxia Yingyi 49.50MW Wind-farm Project Information Reference List Page 3 of 2 Reference Document or Type of Information No. 23 Stakeholders participant List 24 IRR and NPV calculation sheet 25 EFy and ERy calculation sheet 26 All copies of foot notes 27 The State Electric Industry Yearbook Notice on Strictly Prohibiting the Installation of Fuel-fired Generators with the Capacity of 135MW or below issued by the General Office of the State Council, decree no Interim Rules on the Installation and Management of Small-scale Fuel-fired Generators (issued in Aug. 1997) 30 Document of Ningxia Development and Reform Committee (No.[2006]404) 31 China Energy Statistical Yearbook Business Plan of NYWP 33 Revised PDD, dated 25/06/ Annex to the PDD including Gold Standard validation requirements, dated on 14/1/ Stakeholder Consultation Report, version 32; submitted on 11/2/2008 (including evidences) TÜV SÜD INDUSTRIE SERVICE GMBH