1. Title of the Methodology Upgrading and Installation of High-Efficient Heat Only Boilers for Heat Water Supply Systems in Districts, Mongolia

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1 MRV Methodology Title: Upgrading and Installation of High-Efficient Heat Only Boilers for Heat Water Supply Systems in Districts, Mongolia (Draft Ver. 3.0) Note: This methodology is drafted as the result of the GEC s JCM Demonstration/Feasibility Study in JFY2012. Therefore, this draft methodology is not officially approved by any governments involved in JCM, and is subject to change in the future. 1. Title of the Methodology Upgrading and Installation of High-Efficient Heat Only Boilers for Heat Water Supply Systems in Districts, Mongolia 2. Summary of the Methodology This methodology is aimed at the following projects; - Switching from old type coal HOBs (of low energy efficiency) employed in existing Heat Water Supply Systems in Districts to new type ones (of high energy efficiency). - Introduction of new type coal HOBs (of high energy efficiency) in association with new construction of Heat Water Supply Systems in Districts. The project activity will lead to not only emission reductions of CO 2 but also air pollution-abatement due to reduction of coal consumptions. (The J-VER methodology No.E011 is referred for the development of this draft methodology.) 3. Eligibility Criteria This methodology is applicable to projects that fully satisfy the following cases. Case 1 Case 2 Case 3 Case 4 Case 5 The project activity is to -switch from old type coal HOBs (of low energy efficiency) to new type ones (of high energy efficiency) in existing Heat Water Supply Systems in Districts and/or -to introduce new type ones in association with new construction of Heat Water Supply Systems in Districts. (Upgrading or installation of HOBs for steam supply do not fall into the project activity) The HOB to be targeted for the project activity is defined as a boiler used for heat supply which has capacity of 0.10MW 3.15MW. Objective HOBs are limited to coal-fired boilers for hot water supply. The HOBs to be introduced shall have the performance specifications including the boiler efficiency higher than 75% as the manufacturer s catalog value. The HOBs to be introduced shall have a dust collector. In case of a HOB which dust collector is not set up, dust collector shall be additionally installed with the installed HOB for pollution-abatement measure. Check 4. Selection of Calculation Method Regarding monitoring quantity of coal consumed by project HOB Invoices of delivered coal quantity according to coal suppliers are too much unreliable (in Mongolia). Furthermore, measuring of coal consumption is difficult and too much trouble, in sharp contrast to measuring the consumption of liquid fuel and the one of gas fuel. Not only boiler operation engineers but also other project participants cannot measure consumed coal <I-5>

2 consumption at HOB site in Mongolia, because that acting stands in the way of heat supply work (in Mongolia). Monitoring Method Monitoring method for coal consumption is not included in this calculation flow, because it is not realistic according to above-mentioned reason. Therefore, default values of boiler efficiency in both scenarios of reference and project are needed to be provided by the methodology. Furthermore, since the reference scenario for New installation case (Greenfield) is thought to be same as the one for Upgrading case (Replacement), the monitoring method for New installation case is not different from the one for Upgrading case. Project participants, according to the following flowchart, refer to the estimation methods of reference emissions and project emissions, depending on project type. In case that multi-mode type feed-water pomp is employed for the HOB, the monitoring method 2-1 and 2-2 is not applied. To calculate the reference emission, the project developer must refer to the calculation method best-suited for his/her project using the flow chart below. Employed technology of the project HOB How to identify net heat quantity supplied by the project HOB? Measuring method / Estimation method of net heat quantity Monitoring Method The HOBs to be introduced shall have the performance specifications including the boiler efficiency higher than 75% as the manufacturer s catalog value, with dust collector. Actually measured according exhaustive measuring method to Actually measured by heat meter (Package system) Actually measured by temperature sensors and a flow meter (Non-package system) Identification method of volume flow rate of circulating water Monitoring Method1-1 Monitoring Method1-2 Estimated by simple method Directly estimated by non- exhaustive simple measuring method of net heat quantity By previous measurement Based on the rating capacity of the employed pomp Monitoring Method2-1 Monitoring Method2-2 Indirectly estimated from heat loss for the building in the supply destination Identification method of heat loss co-efficient for the building By characteristic value By default value Monitoring Method3-1 Monitoring Method3-2 Exhaustive measuring method of net heat quantity: Method which measures directly net heat quantities of circulating water at inlet and outlet points of the water piping of the HOB, inserting temperature sensors into inside of the water piping. For measuring of water flow rate, <I-6>

3 the exclusive use water pipe which inside cross section area/or caliber is stereotyped in advance is applied. Pipe laying work is required for setting the measuring equipment. Non-exhaustive simple measuring method of net heat quantity: Method which measures circulating water temperatures at inlet and outlet points of the water piping of the HOB from outside of the water piping of the HOB, lagging the water piping with heat insulation material to help minimize measuring error. Pipe laying work is not required for setting the measuring equipment. 5. Necessary Data for Calculation The data that requires presetting in the planning stage of the project or monitoring after the start of the project is determined below based on the calculation method selected in section 4. If the data shown below is imported, a calculation tool is provided in this methodology that will allow you to measure emission reductions Monitoring Method; 1 Monitoring Method: 1-1 /Monitoring Method: 1-2 (1) Monitoring and input after project starts Description of data Value Unit Net heat quantity supplied by the Project HOB during the monitoring period 1458 GJ/t Electricity consumption of the Project HOB during the monitoring period Total hours during the monitoring period MWh/t 5832 hours/t (2) In the planning stage, enter the data to determine the reference and the project emissions CO 2 Emission Factor of grid tco 2/MWh *Needed parameters in case that Electricity consumption of the project HOB is not monitored Description of data Value Unit Required electric performance maximum of the Project HOB: 800 W PH t is identified as a result of accumulating identified one of PH i (for hourly value). (Refer to Data for recording frequency, Daily total sheet and Monthly total sheet in calculation file.) 5.2. Monitoring Method: 2 Monitoring Method: 2-1 (1) Monitoring and input after project starts (Estimated) Net heat quantity supplied by the Project HOB during the monitoring period 1458 GJ/t Electricity consumption of the project HOB during the monitoring period Total hours during the monitoring period MWh/t 5832 hours/t (2) In the planning stage, enter the data to determine the reference and the project emissions <I-7>

4 CO 2 Emission Factor of grid Conservative value of Volume flow rate of circulating water of the project HOB identified previously before 1st monitoring period tco 2/MWh m 3 /hour *Needed parameters in case that Electricity consumption of the project HOB is not monitored Required electric performance maximum of the Project HOB *Needed parameters for identification of V min 800 W Hourly lowest value for flow rate of the project HOB s circulating water measured in hourly interval k during 120 hours for working day prior to the 1st monitoring period m 3 /hour Rating capacity of the pomp employed for the project HOB m 3 /hour PHE t is identified as a result of accumulating identified one of PHE i (for hourly value). (Refer to Data for recording frequency, Daily total sheet and Monthly total sheet in calculation file.) Monitoring Method: 2-2 (1) Monitoring and input after project starts (Estimated) Net heat quantity supplied by the Project HOB during the monitoring period 1384 GJ/t Electricity consumption of the project HOB during the monitoring period Total hours during the monitoring period MWh/t 5832 hours/t (2) In the planning stage, enter the data to determine the reference and the project emissions CO 2 Emission Factor of grid tco 2/MWh Conservative value of Volume flow rate of circulating water of the project HOB identified previously before 1st monitoring period m 3 /hour *Needed parameters in case that Electricity consumption of the project HOB is not monitored Required electric performance maximum of the Project HOB *Needed parameters for identification of VP min Discount rate of uncertainty that the circulating volume flow rate is estimation by the rating capacity of the pomp 800 W 0.1 No deimension Rating capacity of the pomp employed for the project HOB m 3 /hour PHE t is calculated as Monitoring Method2-1 or Monitoring Method2-2 (Refer to Explanation of Monitoring Method ) 5.3. Calculation method: 3 Monitoring Method: 3-1 (1) Monitoring and input after project starts <I-8>

5 (Estimated) Heat loss for the building in the supply destination during the monitoring period Electricity consumption of the project HOB during the monitoring period Total hours during the monitoring period 1458 GJ/t MWh/t (2) In the planning stage, enter the data to determine the reference and the project emissions CO 2 Emission Factor of grid 5832 hours/t tco 2/MWh *Needed parameters in case that Electricity consumption of the project HOB is not monitored Required electric performance maximum of the Project HOB 800 W *Needed parameters for identification of heat loss co-efficient for the building in the supply destination The design value of heat loss for the building in the supply destination GJ/hour Volume of the building for the supply destination 5894 m 3 The design value of indoor air temperature set according to the king/the usage of the building The design value of outdoor air temperature according to the residence city of the building Heat loss co-efficient which is identified by design value of heat quantity needed for the building in the supply destination Heat loss co-efficient for the building in the supply destination 21 C -39 C kcal/hour/m 3 / C kcal/hour/m 3 / C Qloss t is identified as a result of accumulating identified one of Qloss i (for hourly value). (Refer to Data for recording frequency, Daily total sheet and Monthly total sheet in calculation file.) Monitoring Method: 3-2 (1) Monitoring and input after project starts (Estimated) Heat loss for the building in the supply destination during the monitoring period Electricity consumption of the project HOB during the monitoring period Total hours during the monitoring period 1113 GJ/t MWh/t (2) In the planning stage, enter the data to determine the reference and the project emissions CO 2 Emission Factor of grid 5832 hours/t tco 2/MWh *Needed parameters in case that Electricity consumption of the project HOB is not monitored Required electric performance maximum of the Project HOB 800 W *Needed parameters for identification of heat loss co-efficient for the building in the supply destination The design value of heat loss for the building in the supply destination GJ/hour Volume of the building for the supply destination 5894 m 3 Heat loss co-efficient for the building in the supply destination (Default value) kcal/hour/m 3 / C Qloss t is identified as a result of accumulating identified one of Qloss i (for hourly value). (Refer to Data for recording frequency, Daily total sheet and Monthly total sheet in <I-9>

6 calculation file.) 6. Terms and Definitions Term Boiler Installation Boiler Upgrading HOB Definition Greenfield; New construction of boiler. Replacement of existing boiler due to its failure is also regarded as new installation. Replacement of existing boiler which is still workable is regarded as upgrading. HOB is a Heat Only Boiler, defined as a boiler used for heat supply which has capacity of 0.10MW 3.15MW, according to the Mongolia National Standard (MNS5043). 7. Project Boundaries The project boundary shall include the following GHG emission sources and GHG emissions. Project Boundary includes the following GHG emission sources and GHG emissions. GHG emissions are caused by coal consumption for heat supply and by electricity consumption. 8. Reference Scenario Old type HOBs (for low energy efficiency) have been practically used for heat water supply system in districts, Mongolia, with the exclusion of special cases that have been subsidized by foreign assistances. The current situation and performance will continue in the future, because that these HOBs are very cheap and convenient for boiler operation engineers. Therefore, the boiler efficiency of HOBs will continue to be the same level as that of before implementing upgrading existing HOBs during the project period. In case of new installation, such status is same as the one in case of replacement. So, the boiler efficiency in the reference scenario is set as the identical benchmark value in both cases of upgrading and new installation. 9. Reference Emissions and Calculation 3 kinds (including 2 options for each kind) of monitoring methods for Reference Emission estimation are shown. All of 6 calculation equations described in this chapter are applicable to either of Upgrading case (Replacement) and Installation case (Greenfield). Project participants can select most appropriate estimation method, considering available monitoring method / available information according to conditions in the project site and, monitoring cost after the project and benefit derived from this methodology Monitoring Method 1 This method is applied to the case that net heat quantity supplied by the project HOB is actually measured according to exhaustive measuring method. Default value of Benchmark value of Boiler efficiency in the reference scenario is needed for estimation of reference emission. Reference Emission Calculation RE1-1: Refer to Explanation of Monitoring Method. Reference Emission Calculation RE1-2: Refer to Explanation of Monitoring Method Monitoring Method: 2 This method is applied to the case that net heat quantity supplied by the project HOB is estimated by non-exhaustive simple measuring method of net heat quantity. <I-10>

7 (In case that multi-mode type feed-water pomp is employed for the HOB, this monitoring method is not applied.) Default value of Benchmark value of Boiler efficiency in the reference scenario is needed for estimation of reference emission. Reference Emission Calculation RE2-1: Refer to Explanation of Monitoring Method. Reference Emission Calculation RE2-2: Refer to Explanation of Monitoring Method. 9.3.Monitoring Method: 3 This method is applied to the case that net heat quantity supplied by the project HOB is indirectly estimated from the supply destination side by measuring both air temperatures of outdoor and indoor in the supply destination. Default values of Benchmark value of Boiler efficiency in the reference scenario is needed for estimation of project emission. Reference Emission Calculation RE3-1: Refer to Explanation of Monitoring Method. Reference Emission Calculation RE3-2: Refer to Explanation of Monitoring Method. 10. Project Emissions and Calculation 3 kinds (including 2 options for each kind) of monitoring methods for Project Emission estimation are shown. All of 6 calculation equations described in this chapter are applicable to either of Upgrading case (Replacement) and Installation case (Greenfield). Project participants can select most appropriate estimation method, considering available monitoring / available information according to conditions in the project site and, monitoring cost after the project and benefit derived from this methodology Monitoring Method: 1 This method is applied to the case that net heat quantity supplied by the project HOB is actually measured according to exhaustive measuring method. Default value of Boiler efficiency in the project HOB is needed for estimation of reference emission. Project Emission Calculation PE1-1 : Refer to Explanation of Monitoring Method. Project Emission Calculation PE1-2 : Refer to Explanation of Monitoring Method Monitoring Method: 2 This method is applied to the case that net heat quantity supplied by the project HOB is estimated by non-exhaustive simple measuring method of net heat quantity. (In case that multi-mode type feed-water pomp is employed for the HOB, this monitoring method is not applied.) Default value of Boiler efficiency in the project HOB is needed for estimation of reference emission. Project Emission Calculation PE2-1 : Refer to Explanation of Monitoring Method. Project Emission Calculation PE2-2 : Refer to Explanation of Monitoring Method. <I-11>

8 10.3.Monitoring Method: 3 This method is applied to the case that net heat quantity supplied by the project HOB is indirectly estimated from the supply destination side by measuring both air temperatures of outdoor and indoor in the supply destination. Default values of Boiler efficiency of the project HOB is needed for estimation of project emission. Project Emission Calculation PE3-1 : Refer to Explanation of Monitoring Method. Project Emission Calculation PE3-2 : Refer to Explanation of Monitoring Method. Explanation of Monitoring Method Equations for Reference Emission and Project Emission are as follows (Boiler efficiency is common for all methods); RE t = PH t /η RE BM * EF CO2,coal (RE1-1/RE1-2/RE2-1/RE2-2/RE3-1/RE3-2) PE t = PH t /η PJ HOB * EF CO2,coal + EC t * EF CO2,grid (PE1-1/PE1-2/PE2-1/PE2-2/PE3-1/PE3-2) Where; RE t PE t PH t η RE BM η PJ HOB EF CO2,coal EC t EF CO2,grid Reference Emission during the [tco 2 /t] Project Emission during the [tco 2 /t] Net heat quantity supplied by the Project HOB during the [GJ/t] Benchmark value of Boiler efficiency in the reference scenario [No dimension] Boiler efficiency of the project HOB[No dimension] CO 2 Emission Factor of the consumed coal [tco 2 /GJ] Electricity consumption of the project HOB during the [MWh/t] CO 2 emission factor of the grid consumed by the project HOB[tCO 2 /MWh] EC d EMP PJ HOB HMP t In case that EC t is measured, EC t is calculated as the following equation EC t = EC d d In case that EC t cannot be measured because of unreasonable cost, EC t is calculated as the following equation in conservative manner; EC t = EPM PJ HOB *10-6 * HMP t Where; Electricity consumption of the project HOB on the day d during the monitoring period t [MWh/day] Required electric performance maximum of the project HOB accorging to the maker s catalog [W] Total hours during the [hours/t] Hourly interval when the project HOB do not work (heat is not supplied by the project HOB 1 ) is not counted for HMP t. (Monitoring Method 1) This method is applied to the case that net heat quantity supplied by the project HOB is actually measured according to exhaustive measuring method. For high quality measuring of water temperature, temperature sensors are inserted into 1 Monitoring Method 1: in case that PH i =0.0[GJ/hour] Monitoring Method 2: in case that PHE i =0.0[GJ/hour] Monitoring Method 3: in case that Tid i <20.0 [ C], according to minimum value from Thermal performance designing for building (2010), Table 1 <I-12>

9 inside of the water piping. For high quality measuring of water flow rate, the exclusive use water pipe which inside cross section area/or caliber is stereotyped in advance is applied. Monitoring Method 1-1 Monitoring Method 1-2 () Net heat quantity supplied by the project HOB is directly measured by a heat meter (Package system). PH t = i Where; PH i PH i Net heat quantity supplied by the project HOB is measured by two temperature sensors and a flow meter (Package system). PH t = PH i i PH i = {V i *(Tout i Tin i )}*10-3 * Net heat quantity supplied by the Project HOB in hourly interval i during the [GJ/hour] Tout i Temperature of the circulating water supplied by the project HOB (outlet) in hourly interval i during the [ C] Tin i Temperature of heat water supplied to the project HOB (inlet) in hourly interval i during the [ C] V i Volume flow rate of circulating water of the project HOB in hourly interval i during the [m 3 /hour] Energy conversion factor from Calorie to Joule (Monitoring Method 2) This method is applied to the case that net heat quantity supplied by the project HOB is <I-13>

10 estimated by non-exhaustive simple measuring method of net heat quantity. Circulating water temperatures at inlet and outlet points of the water piping of the HOB are measured from outside of the water piping of the HOB, lagging the water piping with heat insulation material to help minimize measuring error. (In case that circulating water pump of multi-mode type is employed for the HOB, this monitoring method is not applied.) Monitoring Method 2-1 Monitoring Method 2-2 Volume flow rate of circulating water of the project HOB is identified by previous measurement (during 5 working days) before 1 st monitoring period. Since volume flow rate of circulating water is measured from outside of the water piping of the HOB, inside cross section area/or caliber for the water piping is estimated form the one for outside area of the water piping PH t = (1 φ PH )*PHE t (φ PH =0.1 for conservative default value) PHE t = PHE i i PHE i = {VP min *(Tout i Tin i )}*10-3 * VP min =Min[{Min(VP k, k=1,120)}, RCAP HOB pomp ] (for characteristic value) Where; φ PH <I-14> Volume flow rate of circulating water of the project HOB is identified previously based on the rating capacity of the employed pomp. VP min =(1 φ VP)*RCAP HOB pomp (φ VP =0.1 for conservative default value) Discount rate according to uncertainty of measuring method from outside of the water piping of the HOB [No dimension] PHE t (Estimated) Net heat quantity supplied by the Project HOB during the monitoring period t [GJ/t] PHE i (Estimated) Net heat quantity supplied by the Project HOB in hourly interval i during the [GJ/hour] Tout i Temperature of the circulating water supplied by the project HOB (outlet) in hourly interval i during the [ C] Tin i Temperature of heat water supplied to the project HOB (inlet) in hourly interval i during the [ C] VP min Conservative value of Volume flow rate of circulating water of the project HOB identified previously before 1 st monitoring period [m 3 /hour] VP k Flow rate of the project HOB s circulating water measured in hourly interval k during 120 hours (5 working days) prior to the 1 st monitoring period [m 3 /hour] RCAP HOB pomp Rating capacity of the pomp employed for the project HOB [m 3 /hour] φ VP Discount rate of uncertainty that the circulating volume flow rate is estimation by the rating capacity of the pomp [No dimension] Energy conversion factor from Calorie to Joule (Monitoring Method 3) This method is applied to the case that net heat quantity supplied by the project HOB is indirectly estimated from the supply destination side by measuring both air temperatures of outdoor and indoor in the supply destination. (In case that the cubic capacity of the building for the supply destination cannot be identified, this monitoring method is not applied.) Monitoring Method 3-1 Monitoring Method 3-2 (Estimated) Heat loss co-efficient for the building in the supply destination is identified according to the design value of heat quantity needed for it. (In only case that the design value of heat quantity needed The default value for (estimated) heat loss co-efficient for the building in the supply destination is applied.

11 for the building can be gotten, this option is applied.) PH t = (1 φ QLOSS )* Qloss t (φ QLOSS =0.2) Qloss t = Qloss i i Qloss,i = (Tid i Tod i )* Vbuilding* q 0 *4.1868*10-6 q 0 = q 0,design q 0,design =Qloss design /Vbuilding/(Tid design Tod design )/ *10 6 (for characteristic value) Where; φ Qloss supply destination [No dimension] Qloss t Qloss,i Tid i Tod i [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] q 0 =0.2 (for conservative default value) Discount rate according to uncertainty identified from estimation heat loss in the (Estimated) Heat loss for the building in the supply destination during the monitoring period t [GJ/t] (Estimated) Heat loss for the building in the supply destination in hourly interval i during the [GJ/hour] In case that Tid i <20.0[ C] Oloss i =0 Average indoor air temperature in the supply destination in hourly interval i during the [ C] Tid i shall be identified by the average value of at least thrre measring points in the building. The verifier will judge wheteher selected measring points are appropriate set or not. Outdoor air temperature in hourly interval i during the [ C] Vbuilding Volume of the building for the supply destination [m 3 ] q 0 Heat loss co-efficient for the building in the supply destination [kcal/hour/m 3 / C] q 0,design Heat loss co-efficient which is identified by design value of heat quantity needed for the building in the supply destination [kcal/hour/m 3 / C] Qloss design The design value of heat loss for the building in the supply destination [GJ/hour] Tid design The design value of indoor air temperature set according to the king/the usage of the building [ C] Tod design The design value of outdoor air temperature according to the residence city of the building [ C] Energy conversion factor from Calorie to Joule 11. Leakage emissions and Calculation For example, CO 2 emission due to increasing transport distance of coal may be listed as leakage. However, for the project activity, leakage is not needed to consider, because coal consumption will be reduced by the project activity. 12. Calculation of Emission Reduction Emission reductions are calculated from specific reference emissions and project emissions. ER y = RE y - PE y (- L y ) ER y Emission reductions in year y [tco 2 /y] RE y Reference emissions in year y [tco 2 /y] PE y Project emissions in year y [tco 2 /y] Leakage emissions in year y [tco 2 /y] L y 13. Monitoring The project developers must monitor the parameters described in the table below based on the calculation method of the selected GHG emission reductions. <I-15>

12 13.1. Reference Emission/Project Emission (Monitoring Method: 1) Monitoring Method: 1-1 and 1-2 in common [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] Parameters Description Measurement Method PH t Net heat quantity Ex-post parameter: Monitoring pattern C supplied by the Project HOB The parameter is calculated as follows; during the PH t = monitoring period PH i i t [GJ/t] Calculation frequency Aggregated daily, monthly and during the Monitoring Method: 1-1 Parameters Description Measurement Method PH i (Measured) Net Ex-post parameter: Monitoring pattern C heat quantity Measuring method For high quality measuring of water temperature, supplied by the temperature sensors are inserted into inside of the Project HOB in water piping. hourly interval i For high quality measuring of water flow rate, the during the exclusive use water pipe which inside cross section monitoring period area/or caliber is stereotyped in advance is applied. t [GJ/t] Measuring equipment Heat meter (Package system) (Refer to Measuring equipment and QA/QC QA/QC procedures (Refer to Measuring equipment and QA/QC Source Electronic logged data Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB (Water temperatures) On circulating water pipe at both of just inlet and outlet points of the HOB (Water flow rate) On circulating water pipe at either of just inlet or outlet point of the HOB Monitoring frequency Measuring frequency: Continuously Recording frequency: Hourly Trouble shooting Completed by the hourly minimum value procedure of missing data (excluding abnormal value) of available recorded data during the. Monitoring Method: 1-2 Parameters Description Measurement Method PH i (Calculated) Net Ex-post parameter: Monitoring pattern C (Calculated by measured heat supply directly measured by heat parameters) The parameter is calculated as follows; meter in hourly PH i = {V i *(Tout i Tin i )}* 10-3 * interval i during the [GJ/hour] <I-16>

13 V i Tout i Volume flow rate of circulating water of the project HOB in hourly interval i during the [m 3 /hour] Temperature of the circulating water supplied by the project HOB (outlet) in hourly interval i during the [ C] [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] Ex-post parameter: Monitoring pattern C Measuring method For high quality measuring of water flow rate, the exclusive use water pipe which inside cross section area/or caliber is stereotyped in advance is applied. Measuring equipment Volume flow meter (Refer to Measuring equipment and QA/QC QA/QC procedures (Refer to Measuring equipment and QA/QC Source Electronic logged data Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB (Water temperatures) On circulating water pipe at both of just inlet and outlet points of the HOB (Water flow rate) On circulating water pipe at either of just inlet or outlet point of the HOB Monitoring frequency Measuring frequency: Continuously Recording frequency: Hourly Trouble shooting Completed by the hourly minimum value procedure of missing data (excluding abnormal value) of available recorded data during the preliminary monitoring period Trouble shooting procedure in case higher than the maximum value of the authorized measuring range. Completed by the maximum value of the authorized measuring range. Ex-post parameter: Monitoring pattern C Measuring method Measured from outside of the water piping of the HOB, lagging the water piping with heat insulation material to help minimize measuring error. Measuring equipment Temperature sensor (Refer to Measuring equipment and QA/QC QA/QC procedures (Refer to Measuring equipment and QA/QC Source Electronic logged data Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB On circulating water pipe at both of just outlet point of the HOB Monitoring frequency Measuring frequency: Continuously Recording frequency: Hourly Trouble shooting Completed by the hourly minimum value procedure of missing data (excluding abnormal value) of available recorded data during the. Trouble shooting Completed by the maximum value of the procedure in case authorized measuring range. higher than the maximum value of the authorized measuring range. <I-17>

14 Tin i Temperature of heat water supplied to the project HOB (inlet) in hourly interval i during the [ C] [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] Ex-post parameter: Monitoring pattern C Measuring method (Same as Tout i ) Measuring equipment (Same as Tout i ) QA/QC procedures (Same as Tout i ) Source (Same as Tout i ) Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB On circulating water pipe at both of just inlet point of the HOB Monitoring frequency (Same as Tout i ) Trouble shooting procedure of missing data Trouble shooting procedure in case lower than the minimum value of the authorized measuring range. Completed by the hourly maximum value (excluding abnormal value) of available recorded data during the. Completed by the minimum value of the authorized measuring range Reference Emission/Project Emission (Monitoring Method: 2) Monitoring Method: 2-1 and 2-2 in common Parameters Description Measurement Method PH t Net heat quantity Ex-post parameter: Monitoring pattern C supplied by the The parameter is calculated as follows; Project HOB PH t = (1 φ PH )*PHE t during the monitoring period Calculation frequency Aggregated daily, monthly and during the t [GJ/t] φ PH Discount rate according to uncertainty of measuring method from outside of the water piping of the HOB [No dimension] PHE t (Estimated) Net heat quantity supplied (measured for heat) by the Project HOB during the monitoring period t [GJ/hour] PHE i (Estimated)Net heat supply directly measured by heat meter in hourly interval i during the monitoring period t [GJ/hour] VP min Conservative value of Volume flow rate of circulating Ex-ante parameter: Default value provided by MRV methodology (φ PH =0.1 for conservative default value) Ex-post parameter: Monitoring pattern C The parameter is calculated as follows; PHE t = PHE i i Calculation frequency Ex-post parameter: Monitoring pattern C The parameter is calculated as follows; PHE i = {VP min *(Tout i Tin i )}*10-3 * According to Monitoring Method <I-18> Aggregated daily, monthly and during the Ex-post parameter (Fixed before 1 st monitoring period): Monitoring

15 Tout i water of the project HOB identified previously before 1 st monitoring period [m 3 /hour] Temperature of the circulating water supplied by the project HOB (outlet) in hourly interval i during the monitoring period t [ C] Tin i Temperature of heat water supplied to the project HOB (inlet) in hourly interval i during the monitoring period t [ C] pattern C Refer to the monitoring parameter table in Monitoring Method: 2-1 Ex-ante parameter: Characteristic value according to the project Refer to the monitoring parameter table in Monitoring Method: 2-2 Ex-post parameter: Monitoring pattern C Measuring method Measured from outside of the water piping of the HOB, lagging the water piping with heat insulation material to help minimize measuring error. Measuring equipment Temperature sensor (such as thermo-couple) (Refer to Measuring equipment and QA/QC QA/QC procedures (Refer to Measuring equipment and QA/QC Source Electronic logged data Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB On circulating water pipe at both of just outlet point of the HOB Monitoring frequency Measuring frequency: Continuously Recording frequency: Hourly Trouble shooting Completed by the hourly minimum value procedure of missing data (excluding abnormal value) of available recorded data during the. Trouble shooting Completed by the maximum value of the procedure in case authorized measuring range. higher than the maximum value of the authorized measuring range. Ex-post parameter: Monitoring pattern C Measuring method (Same as Tout i ) Measuring equipment (Same as Tout i ) QA/QC procedures (Same as Tout i ) Source (Same as Tout i ) Measuring point Appropriate points where can measure only net heat quantity supplied by the HOB On circulating water pipe at both of just inlet point of the HOB Monitoring frequency (Same as Tout i ) Trouble shooting procedure of missing data data during the. Trouble shooting procedure in case lower than the minimum value of the authorized measuring range. Completed by the hourly maximum value (excluding abnormal value) of available recorded Completed by the minimum value of the authorized measuring range. <I-19>

16 Monitoring Method: 2-1 Monitoring Method: 2-2 [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] Parameters Description Measurement Method VP min Conservative value Ex-post parameter (Fixed before 1 st monitoring period): Monitoring of Volume flow rate of circulating water pattern C of the project HOB identified previously The parameter is calculated as follows; VP min =Min[{Min(VP k, k=1,120)}, RCAP HOB pomp ] before 1 st monitoring period [m 3 /hour] VP k RCAP HOB pomp Flow rate of the project HOB s circulating water measured in hourly interval k during 120 hours for working day prior to the 1 st monitoring period [m 3 /hour] Rating capacity of the pomp employed for the project HOB [m 3 /hour] Ex-post parameter (Fixed before 1 st monitoring period): Monitoring pattern C Measuring method Measuring equipment QA/QC procedures Source Measuring point Monitoring frequency Trouble shooting procedure of missing data Since volume flow rate of circulating water is measured from outside of the water piping of the HOB, inside cross section area/or caliber for the water piping is estimated form the one for outside area of the water piping Volume flow meter (such as ultra sonic type flow meter) (Refer to Measuring equipment and QA/QC (Refer to Measuring equipment and QA/QC Electronic logged data Appropriate points where can measure only net heat quantity supplied by the HOB (Water temperatures) On circulating water pipe at both of just inlet and outlet points of the HOB (Water flow rate) On circulating water pipe at either of just inlet or outlet point of the HOB Measuring frequency: Continuously Recording frequency: Hourly Completed by the hourly minimum value (excluding abnormal value) of available recorded data during the preliminary monitoring period Trouble shooting Completed by the maximum value of the procedure in case authorized measuring range. higher than the maximum value of the authorized measuring range. Ex-ante parameter: Characteristic value according to the project Source Name plate of the pomp or catalog value according to the vendor Parameters Description Measurement Method VP min Conservative value Ex-ante parameter: Characteristic value according to the project of Volume flow rate of circulating water The parameter is calculated as follows; of the project HOB VP min =(1 φ VP)*RCAP HOB pomp identified previously before 1 st monitoring period [m 3 /hour] <I-20>

17 φ VP Discount rate of uncertainty that the circulating volume flow rate is estimation by the rating capacity of the pomp [No dimension] RCAP HOB Rating capacity of pomp the pomp employed for the project HOB [m 3 /hour] Ex-ante parameter: Default value provided by MRV methodology (φ PH =0.1 for conservative default value) Ex-ante parameter: Characteristic value according to the project Same as RCAP HOB pomp in Monitoring Method: Reference Emission/Project Emission (Monitoring Method: 3) Monitoring Method: 3-1 and 3-2 in common Parameters Description Measurement Method PH t Net heat quantity Ex-post parameter: Monitoring pattern C and D supplied by the The parameter is calculated as follows; Project HOB during PH t = (1 φ QLOSS )* Qloss t *4.1868*10-6 the monitoring period t [GJ/t] Calculation frequency Aggregated daily, monthly and during the φ Qloss Discount rate according to uncertainty identified from estimation heat loss in the supply destination [No dimension] Qloss,t (Estimated) Heat loss for the building in the supply destination during the monitoring period t [GJ/t] Qloss,i (Estimated) Heat loss for the building in the supply destination in hourly interval i during the [GJ/hour] Vbuilding Volume of the building for the supply destination [m 3 ] Ex-ante parameter: Default value provided by MRV methodology (φ Qloss =0.2 for conservative default value) Ex-post parameter: Monitoring pattern C and D The parameter is calculated as follows; Qloss t = Qloss i i Calculation frequency Aggregated daily, monthly and during the Ex-post parameter: Monitoring pattern C and D The parameter is calculated as follows; Qloss,i = (Tid i Tod i )* Vbuilding* q 0* *10-6 In case that the volume will not be changed in the future Ex-ante parameter: Characteristic value according to the project In case that the volume may be changed such as expansion or rebuilding of the building in the future Ex-post parameter: Monitoring pattern or D The value will be changed just after construction Source The building design document (building passport) for the supply destination <I-21>

18 Tid i Average indoor air temperature in the supply destination in hourly interval i during the [ C] Tod i Outdoor air temperature in hourly interval i during the [ C] Ex-post parameter: Monitoring pattern C Measuring method Tid i shall be identified by the average value of at least three measring points in the building. Measuring equipment Temperature sensor (Refer to Measuring equipment and QA/QC QA/QC procedures (Refer to Measuring equipment and QA/QC Source Electronic logged data Measuring point Points (at least three points) where can appropriately evaluate as the representative indoor temperature for the building (The verifier will judge wheteher selected measring points are appropriate set or not.) Monitoring frequency Measuring frequency: Continuously Trouble shooting procedure of missing data Trouble shooting procedure in case higher than the maximum value of the authorized measuring range. Recording frequency: Hourly Completed by the hourly minimum value (excluding abnormal value) of available recorded data during the. Completed by the maximum value of the authorized measuring range. Ex-post parameter: Identified by either method of the following two options; (1) Monitoring pattern A (Application of published data) Source Meteorological Observatory Data of the City Measuring point Height above sea level: Within less than 100m for elevation difference from the supply destination Measuring position: Within less than 3km from the supply destination Monitoring frequency Hourly (2) Monitoring pattern C Measuring method (Same as Tin i ) Measuring equipment (Same as Tin i ) QA/QC procedures (Same as Tin i ) Source (Same as Tin i ) Measuring point Appropriate point in shade throughout the day around the supply destination Monitoring frequency (Same as Tout i ) Trouble shooting procedure of missing data Trouble shooting procedure in case lower than the minimum value of the authorized measuring range. Completed by the hourly minimum value (excluding abnormal value) of available recorded data during the. Completed by the minimum value of the authorized measuring range. <I-22>

19 q 0 Heat loss co-efficient for the building in the supply destination [kcal/hour/m 3 / C] According to Monitoring Method Ex-ante parameter: Characteristic value according to the project Refer to the monitoring parameter table in Monitoring Method: 3-1 Ex-ante parameter: Default value provided by MRV methodology Refer to the monitoring parameter table in Monitoring Method: 3-2 Monitoring Method: 3-1 Parameters Description Measurement Method q 0 Heat loss Ex-ante parameter: Characteristic value according to the project co-efficient for the The parameter is identified as follows; building in the q 0 =q 0,design supply destination [kcal/hour/m 3 / C] q 0,design Heat loss co-efficient which is identified by design value of heat quantity needed for the building in the supply destination [kcal/hour/m 3 / C] Qloss design The design value of heat loss for the building in the supply destination [GJ/hour] Tid design Tod design The design value of indoor air temperature set according to the king/the usage of the building [ C] The design value of lowest outdoor air temperature according to the residence city of the building [ C] Monitoring Method: 3-2 Ex-ante parameter: Characteristic value according to the project The parameter is calculated as follows; q 0,design = Qloss design /Vbuilding/( Tid design Tod design )/ *10 6 Source Source Ex-ante parameter: Characteristic value according to the project The building design document (building passport) for the supply destination Ex-ante parameter: Characteristic value according to the project Mongolian Building construction norms and rules BNbD *In Ulaanbaatar, 21[ C ]is set as the value. Source Ex-ante parameter: Characteristic value according to the project Mongolian Building construction norms and rules BNbD *In Ulaanbaatar, 39[ C ]is set as the value. Parameters Description Measurement Method q 0 Heat loss Ex-ante parameter: Default value provided by MRV methodology co-efficient for the building in the q 0 =0.2 (for conservative default value) supply destination [kcal/hour/m 3 / C] 13.4.Reference Emission/Project Emission (for all Monitoring Methods in common) Parameters Description Measurement Method (example) η RE BM Benchmark value of Boiler efficiency in Ex-ante parameter: Default value provided by MRV methodology the reference *In Mongolia, 0.50 is set as the value. scenario [No dimension] η PJ HOB Boiler efficiency of Ex-ante parameter: Default value provided by MRV methodology <I-23>

20 the project HOB [No dimension] EF CO2,coal CO 2 Emission Factor of the consumed coal [tco 2 /GJ] *In Mongolia, 0.67 is set as the value. Ex-ante parameter: Characteristic value according to the project The best option of the following thre ones shall be selected for the default value in conservative manner. (1) The value set based on componential analysis result by authoruzed laboratory in the host country according to industrial standard (in the host country or in the investment country),or international standard (2) The national standard value of area of production in the host country (3) The value according to the coal species 2006 IPCC Guidelines for National Greenhouse Gas Inventories EC t Electricity consumption of the project HOB during the monitoring period t [MWh/t] *In Mongolia, the following values are recomennded to apply to the parameter [tCO2/GJ] according to the average value of survey based on laboratory analysis of consumed coal [tCO2/GJ] according to default value for Lignite shown by 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Ex-post parameter: Monitoring pattern C Identified by either method of the following two options; (1) In case that EC t is measured EC t is calculated as the following equation; EC t = d EC d EC d Electricity consumption of the project HOB on the day d during the [MWh/day] (2) In case that EC t cannot be measured because of unreasonable cost EC t is calculated as the following equation; EC t = EPM PJ HOB * HMP t Ex-post parameter: Monitoring pattern C Measuring equipment QA/QC procedures Source Measuring point Monitoring frequency Trouble shooting procedure of missing data Power meter (Refer to Measuring equipment and QA/QC (Refer to Measuring equipment and QA/QC Electronic logged data Appropriate point in the HOB room Measuring frequency: Continuously Recording frequency: Daily (Aggregated monthly and during the monitoring period t) Completed by the daily maximum value (excluding abnormal value) of available recorded data during the. EMP PJ HOB Required electric performance maximum of the project HOB [W] Ex-ante parameter: Characteristic value according to the project Source The maker s catalog value <I-24>

21 HMP t EF CO2,grid Total hours during the monitoring period t [hours/t] Hourly interval CO 2 emission factor of the grid consumed by the project HOB[tCO 2 /MWh] [Attachment to GEC s Demonstration/Feasibility Study Report JFY2012] Ex-post parameter: Monitoring pattern C Calculation frequency Aggregated daily, monthly and during the In case that the project HOB do not work (heat is not supplied by the project HOB) is not counted for HMP t. Monitoring Method 1: in case that PH i =0.0[GJ/hour] Monitoring Method 2: in case that PHE i =0.0[GJ/hour] Monitoring Method 3: in case that Tid i <20.0 [ C] according to the lowest temperature value on Table1(allowable indoor temperature/ relative humidity for indoor in the building against outdoor frost) in Mongolian Building construction norms and rules BNbD Ex-ante parameter: Characteristic value according to the project Identified by either method of the following two options; (1) Public and default values prepared by the government or electric utility companies. (2) Emission factor calculated in accordance with latest version of CDM Methodological Tool, Tool to calculate the emission factor for an electricity system *In Mongolia, Combined Margin emission factor (CM) for central grid is calculated as [tco 2 /MWh] by average of Operating Margin emission factor (OM) and Build Margin one (BM) according to CDM National Bureau (DNA) in Mongolia. 2 Measuring equipment and QA/QC procedure for the equipment It is recommended to install an equipment of Serial number certified in accordance with industrial standard (in the host country or in the investment country)/or international standard. Although QA/QC procedure is according to requirements by the standard/or the vendor, project participants should confirm that the verification validity for the equipment does not expire till the last date of the. Adjustment method of the value recorded by measuring equipment (How to identify adjustment factor) (In case that the uncertainty of the recorded value can be identified as a fraction of the measured physical amount.) 3 In accordance with requirements by industrial standard (in the host country or in the investment country), or international standard)? Is the serial number of the installed measuring equipment certified by the required standard? QA/QC procedure Is the measuring day before the expiration date (within the verification validity of the equipment)? Identified uncertainty level of the measured value (Monitoring Method1-1) PH i (Monitoring Method1-2) V i, Tout i (Monitoring Method2-1/2-2) VP k, Tout i (Monitoring Method3-1/3-2) Tid i Yes Yes IV=MV Yes No UNC_MV AAC (Monitoring Method1-2) Tin i (Monitoring Method2-1/2-2) Tin i (Monitoring Method3-1/3-2) Tod i (Monitoring Methods in common) EC d UNC_MV >AAC IV=MV*{1 (UNC_MV AAC)} IV=MV*{1+(UNC_MV AAC)} No Yes IV=MV*{1 (UNC_MV )} IV=MV*{1+(UNC_MV)} No No. IV=MV*[1 Max{UNC_MV,0.05}] IV=MV*[1+Max{UNC_MV,0.05}] 2 In Mongolia, the published value is available according to CDM National Bureau (DNA) ( 3 In case that the uncertainty of the recorded value cannot be identified as a fraction of the measured physical amount, the uncertainty should be identified in a unit of the parameter. <I-25>