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1 ELECTRIC POWER GENERATION FROM RENEWABLE SOURCES - BARRA DA PACIÊNCIA, NINHO DA ÁGUIA, CORRENTE GRANDE, PAIOL, SÃO GONÇALO AND VÁRZEA ALEGRE SMALL HYDROPOWER PLANTS Document Prepared By WayCarbon Soluções Ambientais e Projetos de Carbono Ltda. Project Title Electric Power Generation from Renewable Sources - Barra da Paciência, Ninho da Águia, Corrente Grande, Paiol, São Gonçalo and Várzea Alegre Small Hydropower Plants Version 4 Report ID - Date of Issue 22-July-2014 Project ID - Monitoring Period Prepared By Contact 03-January-2011 to 15-January-2013 WayCarbon Soluções Ambientais e Projetos de Carbono Ltda. Rua Professor José Vieira de Mendonça, 770/210 Belo Horizonte/MG Brazil CEP

2 Table of Contents 1 Project Details Summary Description of the Implementation Status of the Project Sectoral Scope and Project Type Project Proponent Other Entities Involved in the Project Project Start Date Project Crediting Period Project Location Title and Reference of Methodology Other Programs Implementation Status Implementation Status of the Project Activity Deviations Methodology Deviations Project Description Deviations Grouped Project Data and Parameters Data and Parameters Available at Validation Data and Parameters Monitored Monitoring Plan Quantification of GHG Emission Reductions and Removals Baseline Emissions Project Emissions Leakage Net GHG Emission Reductions and Removals

3 1 PROJECT DETAILS 1.1 Summary Description of the Implementation Status of the Project The project Electric Power Generation from Renewable Sources - Barra da Paciência, Ninho da Águia, Corrente Grande, Paiol, São Gonçalo and Várzea Alegre Small Hydropower Plants consists in the implementation of four new grid-connected small hydropower plants (SHPs) in the state of Minas Gerais, Brazil: Barra da Paciência (23 MW) and Corrente Grande (14 MW), both located in the Corrente Grande River, in the municipalities of Gonzaga and Açucena; Ninho da Águia (10 MW), located in the Grande River, in the municipality of Delfim Moreira; and Várzea Alegre (7.5 MW), located in the José Pedro River, in the municipality of Conceição de Ipanema. 1 The four SHPs have been generating electricity and dispatching it to the National Interconnected System, the Brazilian national grid, since 2011, after a construction period of 2 years for each plant. All SHPs have been continuously operating since the dates they entered into commercial operation, which are displayed in Table 1. Table 1 Date of entry into commercial operation SHP Date of entry into commercial operation Barra da Paciência 04/03/2011 Corrente Grande 02/02/2011 Ninho da Águia 03/01/2011 Várzea Alegre 02/04/2011 The project applies ACM0002 (Version ). According to this methodology, emission reductions are calculated as a difference between the baseline emissions and the project emissions. As per the ACM0002, no leakage emissions are attributed to this project type. The total GHG emission reductions generated in this monitoring period is 117,109 tco2e. 1.2 Sectoral Scope and Project Type Sectoral Scope 1 (Energy - Renewable/Non-renewable) is applicable to the project. The project is not a grouped project. 1.3 Project Proponent 1 According to the VCS Project Standard, v.3.4, Section , The approved GHG program validation [ ] shall be completed within the relevant validation deadline as set out in Section 3.7 [ ]. According to Section of the same document, Non-AFOLU projects shall complete validation within two years of the project start date [ ]. As the start dates of the small power plants Paiol (which began generating GHG emission reductions on March 23 rd, 2010) and São Gonçalo (which began generating GHG emission reductions on June 8 th, 2010), which are part of the registered CDM project activity Electric Power Generation from Renewable Sources - Barra da Paciência, Ninho da Águia, Corrente Grande, Paiol, São Gonçalo and Várzea Alegre Small Hydropower Plants are not within two years of the date of completeness of validation of the project under the CDM (October 16 th, 2012), these two plants are not part of this VCS Project Document and are not subject to a gap validation for their compliance with the VCS rules. 3

4 Organization name Contact person Title Address CPFL Energias Renováveis S.A. Fernanda Furlan de Gouveia Mrs. Av. Dr. Cardoso de Melo, 1184, 7 th floor Vila Olímpia São Paulo/SP Brazil CEP Telephone fernanda.gouveia@cpflrenovaveis.com.br 1.4 Other Entities Involved in the Project There are no other entities involved in the relevant project. 1.5 Project Start Date The project start date is January 3 rd, 2011, which is the date when the small hydropower plant Ninho de Águia entered into commercial operation. As it was the first plant to operate, that is the date when the project began generating GHG emission reductions. 1.6 Project Crediting Period The project has a 7-year crediting period under the Clean Development Mechanism (CDM), renewable twice. Under the Verified Carbon Standard, the project has a crediting period of 2 years and 13 days, starting on January 3 rd, 2011 and ending on January 15 th, 2013 (one day before the project was registered under the CDM), both days included. 1.7 Project Location The project consists of the implementation of four small hydropower plants, whose location is described below. Barra da Paciência SHP is located in the municipalities of Gonzaga and Açucena, state of Minas Gerais, Brazil, and uses the hydroelectric potential of the Corrente Grande River. That river is part of the Rio Doce Basin, located in the Central East Region of Minas Gerais, being a tributary of the Doce River by the left margin. The SHP is located 68 km from the river s mouth and will demand a maximum reservoir area of 0.52 km 2, with a power density of MW/km 2. 4

5 Figure 1 - Location of SHP Barra da Paciência. The left panel displays the location of the state of Minas Gerais within Brazil and of the municipalities of Gonzaga and Açucena within the state of Minas Gerais. The right panel displays the location of the SHP in the municipalities of Gonzaga and Açucena. Corrente Grande SHP is located in the municipalities of Gonzaga and Açucena, state of Minas Gerais, Brazil, and uses the hydroelectric potential of the Corrente Grande River. That river is part of the Rio Doce Basin, located in the Central East Region of Minas Gerais, being a tributary of the Doce River by the left margin. Corrente Grande SHP is located 75 km from the river s mouth and will demand a maximum reservoir area of 0.98 km 2, with a power density of MW/km 2. Figure 2 - Location of SHP Corrente Grande. The left panel displays the location of the state of Minas Gerais within Brazil and of the municipalities of Gonzaga and Açucena within the state of Minas Gerais. The right panel displays the location of the SHP in the municipalities of Gonzaga and Açucena. Ninho da Águia SHP is located in the municipality of Delfim Moreira, state of Minas Gerais, Brazil. It uses the hydroelectric potential of the Santo Antônio River, which is part of the Rio Grande Basin and a tributary of the Sapucaí River, being located 6 km from the river s mouth. The SHP will demand a maximum reservoir area of km 2, with a power density of MW/km 2. 5

6 Figure 3 - Location of SHP Ninho da Águia. The left panel displays the location of the state of Minas Gerais within Brazil and of the municipality of Delfim Moreira within the state of Minas Gerais. The right panel displays the location of the SHP in the municipality of Delfim Moreira. Várzea Alegre SHP is located in the municipality of Conceição de Ipanema, state of Minas Gerais, Brazil. The SHP uses the hydroelectric potential of the José Pedro River, which is part of the Rio Doce Basin and a tributary of the Manhuaçu River, located on its right margin. Várzea Alegre SHP is located 127 km from the river s mouth and will demand a maximum reservoir area of 0.73 km 2, with a power density of MW/km 2. 6

7 Figure 4 - Location of SHP Várzea Alegre. The left panel displays the location of the state of Minas Gerais within Brazil and of the municipality of Conceição de Ipanema within the state of Minas Gerais. The right panel displays the location of the SHP in the municipality of Conceição de Ipanema. The geographic coordinates of the four SHPs are displayed in Table 2. Table 2 - Geographic coordinates of the small hydro power plants SHP Right Margin Geographic coordinates Left Margin Barra da Paciência S, W S, W Corrente Grande S, W S, W Ninho da Águia S, W S, W Várzea Alegre S, W S, W According to section 3.10 of the VCS Project Standard (Version 3.4), project location for non- AFOLU projects shall be specified by a single geodetic coordinate. Therefore, the geographic coordinates of SHP Ninho da Águia (the first of the power plants to be implemented) at the right margin of the river was chosen as the project s geodetic coordinate to comply with the VCS Standard: S, W. 1.8 Title and Reference of Methodology The project applies the CDM approved baseline and monitoring methodology ACM0002: Consolidated baseline methodology for grid-connected electricity generation from renewable sources, version , EB 67. This methodology also refers to the following CDM tools: Tool for the demonstration and assessment of additionality, version , EB 39. Tool to calculate the emission factor for an electricity system, version , EB 63. Tool to calculate project or leakage CO2 emissions from fossil fuel combustion, version 02, EB Other Programs Emission Trading Programs and Other Binding Limits: Brazil, where the project activity is located, has neither emissions reduction mandatory programs nor binding limits on GHG emissions. Therefore, the net GHG emission reductions generated by the project will not be used for compliance with any emissions trading program or to meet binding limits on GHG emissions. 7

8 Other Forms of Environmental Credit: The project neither has nor intends to generate any other form of GHG-related environmental credit for GHG emission reductions claimed under the VCS program. Participation under Other GHG Programs: The project was registered under the Clean Development Mechanism (CDM) on January 16 th, The reference number of the project is As the project started generating emission reductions in January 2011, it is seeking its registration under the Verified Carbon Standard in order to account for the emission reductions occurred between the starting date and the date the project was registered under CDM. 2 IMPLEMENTATION STATUS 2.1 Implementation Status of the Project Activity The four SHPs have been generating electricity and dispatching it to the National Interconnected System, the Brazilian national grid, since 2011, after a construction period of 2 years for each plant. All SHPs have been continuously operating since the dates they entered into commercial operation, which are displayed in Table 1. The electricity generation and the emission reductions of the project can be affected by the hydrological and rainfall regime in the regions where the power plants have been implemented. The emission factor of the Brazilian national grid, which also affects the emission reductions, can be affected by the same variables, since the lack of rain can determine the activation of fossil fuel fired power plants. 2.2 Deviations Methodology Deviations No methodology deviations have been applied during this monitoring period Project Description Deviations No Project Description deviations have been applied during this monitoring period. 2.3 Grouped Project The relevant project is not a grouped project. 3 DATA AND PARAMETERS 3.1 Data and Parameters Available at Validation Data / Parameter Data unit Description EF Res KgCO 2 /MWh Default emission factor for emissions from reservoirs. 8

9 Source of data Value applied: 90 Justification of choice of data or description of measurement methods and procedures applied Purpose of the data Comments - MONITORING REPORT: VCS Version 3 Methodology ACM0002 The default value as per the Clean Development Mechanism EB23 is 90 Kg CO 2 e/mwh. Calculation of project emissions Data / Parameter SHP energy consumption Data unit Description Source of data MWh/year SHP energy consumption per year Job Engineering Project Value applied: Barra da Paciência: 1,447.6 Justification of choice of data or description of measurement methods and procedures applied Purpose of the data Comments - Corrente Grande: Ninho da Aguia: Várzea Alegre: This value is a parameter of job engineering project. Calculation of baseline emissions 3.2 Data and Parameters Monitored Data / Parameter Data unit Description Source of data Description of measurement methods and procedures to be applied EG facility,y MWh/year Quantity of net electricity generation supplied by the project plant/unit to the grid in year y. Electricity meters at project sites. Measurement of EG facility,y follows the Grid Procedures (Procedimentos de Rede), established by the National Operator of the Electric System (Operador Nacional do Sistema Elétrico - ONS) in order to regulate, inter alia, the measurements of electricity production for invoicing. For information related to this module, it is necessary to 9

10 maintain the Measurement for Invoicing System (Sistema de Medição para Faturamento SMF) according to the standard specified in the document Technical Specifications of Measurement for Invoicing (Especificação Técnica das Medições para Faturamento) to assure not only the control of energy accounting process by CCEE, but also the determination of demands by ONS. Generally, SMF is a system composed of the main and backup measurers, by the potential and current transformers, the channels of communication between energy agent/project participant and CCEE, and the system for data collection and measurement for invoicing According to the ONS Grid Procedures Submodule 12.1, the SMF should be installed in the connection of the plants with the energy grid to measure the net generation of these plants, which will be used for accounting and settlement of electricity in the CCEE. Data stored on the meters is collected by the System of Energy Data Collection (Sistema de Coleta de Dados de Energia SCDE) of CCEE, remotely and automatically through direct access to the meters of the project participant. These collected data are processed in SCDE for electricity accounting by CCEE and are available to all energy market participants to control their respective incomes. The energy meters shall be: multi-phase, 3 elements, 4 wire (for 4 wire systems), of system rated frequency, rated current according to the secondary of current transformer, nominal voltage according to the secondary of potential transformer. The meters shall have independence of elements and sequence of phases, ensuring the same performance in monophasic and three-phasic testing. The measurement systems are designed and implemented in accordance with the standards of the Brazilian Association of Technical Standards (Associação Brasileira de Normas Técnicas ABNT) or International Electrotechnical Commission - IEC, ensuring the quality of the system. In addition, the meters will have certificate of conformity of design approved and issued by the National Institute of Metrology Standardization and Industrial Quality (Instituto Nacional de Metrologia, Normalização e Qualidade Industrial INMETRO). 10

11 Regarding the class of accuracy of energy meters, they will meet all relevant metrological requirements prescribed in Metrological Technical Regulation (Regulamento Técnico Metrológico RMT) for Class 0.2 of energy meters, approved by INMETRO. Class 0.2 of energy meter, also identified as index D energy meters admits error in measurements of up to ±0.2% Besides electricity measurements performed by the project owners, all the electricity dispatched to the grid by the project activity will be monitored online by CCEE. This entity is responsible for the monthly readings and keeping the records of the energy generated. If any problem happens at the local meter level, the reading lecture corresponding to the amount of energy during the time of the problem will not be lost due to online reading performed by CCEE. Frequency of monitoring/recording Value monitored: Monitoring equipment Data are continuously measured and recorded on an hourly basis, filed in electronic format. Data are consolidated in a worksheet monthly (from 03/01 on): 155, MWh 2012: 222, MWh 2013 (until 15/01): 17, MWh Each SHP has two meters (main and backup), all of them manufactured by Schneider Electric. Besides, substations Engenheiro Caldas (where SHPs Barra da Paciência and Corrente Grande delivers their electricity to the national grid) and Lajinha (where SHPs Várzea Alegre and Varginha not included in this project deliver their electricity to the grid) also have two meters (main and backup). The meters model is ION 8600 and the accuracy class is D. The serial numbers of the equipment are: SHP Barra da Paciência: PT-0909A and PT-0912A SHP Corrente Grande: PT-0910A and PT-0910A SHP Ninho da Águia (Substation Maria da Fé): PT-100A and PT-100A SHP Várzea Alegre: PT-0905A and PT-0905A Substation Engenheiro Caldas: PT-0909A and PT-0909A Substation Lajinha: PT-0905A and PT-0909A

12 QA/QC procedures to be applied Purpose of the data Calculation method In order to ensure the effectiveness operation of SMF, preventive maintenance must be carried out and, where necessary, also corrective maintenance. Inspections are also conducted in order to verify the correct operation of meters. The frequency for preventive maintenance of the SMF is a maximum of two years. This schedule may be changed based on the historical occurrence observed in all plants, considering the schedule of stops. The meter that after calibration displays errors outside the range specified by the standard must be replaced. The calibration of meters shall be conducted by a qualified organization that must comply with national standards and industrial regulations to ensure the accuracy. After calibration, the meters must be sealed to assure the safety and the calibration certificates must be archived with the other monitoring records. The deadline for meter s calibration follows, therefore, the Grid Procedures from the ONS Module 12, Submodule The frequency of calibration is currently a maximum of two years, but in the case of any changes occurred in the ONS Grid Procedures, the project owner shall follow the rules from the relevant sector organizations (e.g. ONS, ANEEL, CCEE, etc). All the meters installed will be tested and calibrated in accordance with regulations provided by CCEE. Moreover if any errors are detected in the measuring device, it will be immediately replaced by the backup meter, which will be previously calibrated. The damaged measuring device will be repaired, recalibrated and will return to the monitoring system. Calculation of baseline emissions For SHP Ninho da Águia, the meters located in Susbstation Maria da Fé measure the net electricity supplied to the grid by this single power plant. Therefore, no calculations are necessary for this SHP. For SHPs Barra da Paciência and Corrente Grande, the meters located in Substation Engenheiro Caldas measure the net electricity supplied to the grid by both power plants together. The same is valid for SHPs Várzea Alegre and Varginha (not included in this project), whose electricity is measured by meters located in Substation Lajinha. As, in both cases, electricity generated by these SHPs is dispatched through one 12

13 Comments - MONITORING REPORT: VCS Version 3 single transmission line, it would not be possible to measure net electricity supplied by each of these units to the grid, separately. Therefore, the separation of the quantity of net electricity delivered by each plant to the grid for invoicing purposes and for the calculation of emission reductions is performed by CCEE through a prorating calculation method, which takes into account the gross electricity generation of each plant and the distance between the power plants and the interconnection point with the grid. Data / Parameter EF grid,cm,y Data unit tco 2 /MWh Description Combined margin emission factor of CO 2 for gridconnected power generation in year y calculated using the latest version of the Tool to calculate the emission factor for an electricity system. Source of data Description of measurement methods and procedures to be applied Frequency of monitoring/recording Value monitored: Monitoring equipment QA/QC procedures to be applied Purpose of the data Calculation method Ministry of Science, Technology and Innovation (MCTI) website: This parameter is obtained from the values published by MCTI. Annually Comments : tco 2 /MWh 2012: tco 2 /MWh 2013: tco 2 /MWh As per the Tool to calculate the emission factor for an electricity system. As per the Tool to calculate the emission factor for an electricity system. Calculation of baseline emissions As per the Tool to calculate the emission factor for an electricity system. EF grid,cm,y is calculated as the sum of EF grid,bm,y and EF grid,om,y, each one of them weighted by the factors w BM and w OM. 13

14 Data / Parameter A PJ Data unit m 2 Description Source of data Description of measurement methods and procedures to be applied Area of the single or multiple reservoirs measured in the water surface, after the implementation of project activity, when the reservoir is full. Measurements at the project sites. It is recorded annually by collecting photographic evidence of the surface level when the project becomes operational. This photographic evidence is then compared with the design reservoir dimensions to confirm whether or not the actual surface area substantially deviates from the design surface area. Yearly the data is consolidated in a worksheet. Besides, area of the reservoirs is calculated from satellite pictures obtained during the monitoring period. This area is crosschecked with the data. To allow for conservativeness of the project, the largest value is used to calculate the SHP s power density. Frequency of monitoring/recording Annually Value monitored: Barra da Paciência: 520,000 m 2 Corrente Grande: 980,000 m 2 Ninho da Águia: 20,700 m 2 Várzea Alegre: 730,000 m 2 Monitoring equipment Monitoring is performed through the collection of photography and satellite images. QA/QC procedures to be applied - Purpose of the data Calculation of project emissions Calculation method - Comments - Data / Parameter Data unit Description Source of data Description of measurement methods and procedures to be applied Cap PJ MW Installed capacity of the small hydropower plant after the implementation of project activity. Project site It will be recorded yearly by collecting photographic evidence of the equipment nameplate capacity. Data will be consolidated in a worksheet annually. 14

15 Frequency of monitoring/recording Annually Value monitored: Barra da Paciência: 23 MW Corrente Grande: 14 MW Ninho da Águia: 10 MW Várzea Alegre: 7.5 MW Monitoring equipment - QA/QC procedures to be applied - Purpose of the data Calculation of project emissions Calculation method - Comments - Data / Parameter TEG y Data unit Description Source of data Description of measurement methods and procedures to be applied Frequency of monitoring/recording MWh/year Total energy produced by project activity, including the energy supplied to the grid an the energy consumed by internal loads, in year y. Directly measured by meters. It will be recorded hourly and filed in electronic format. Data will be consolidated in a worksheet monthly. Monthly Value monitored: Barra da Paciência: 129,648 Monitoring equipment - QA/QC procedures to be applied - Purpose of the data Calculation method - Comments - Corrente Grande: 74,460 Ninho da Águia: 53,436 Várzea Alegre: 40,296 Calculation of project emissions 3.3 Monitoring Plan The objective of the monitoring plan is to insure the complete, consistent, clear, and accurate monitoring and calculation of the emissions reductions during the whole crediting period. The project owner is responsible for the implementation of the monitoring plan. 1. Monitoring Purpose 15

16 The main monitoring data are the total power energy supplied to the grid (EG y ); the emission factor of the grid (EF grid,cm,y ), which will be annually provided by the Brazilian Ministry of Science, Techonology and Innovation (MCTI); the area of the reservoir (A PJ ); the installed capacity of the SHPs (Cap PJ ) and the total energy produced by the project, including the energy supplied to the grid and the energy consumed by internal loads (TEG y ). 2. Monitoring Organization A CDM Manager appointed by the project owner is responsible for supervising and verifying metering and recording, collecting data (meter s data reading, sales/billing invoices), calculating emission reductions and preparing monitoring reports. Clear roles and responsibilities are detailed below: Sustainability Director/CDM Manager: Supervises and verifies metering and recording: the CDM Manager s actions are coordinated with the CDM Supervisor s to ensure and verify adequate metering and recording of data, including of the power delivered to the grid. Environmental Analyst/CDM Supervisor: Responsible for collecting at a monthly basis all the monitored data and recording them in a specific folder. Once a year a CD is generated gathering all the monitoring results in accordance with the monitoring plan. Each SHP has a CD with all the information regarding the monitoring plan. The CDM Supervisor is also responsible for: Calculation of emission reductions: the CDM Supervisor calculates the annual emission reductions on the basis of net power supply to the grid, as per meters readings. Preparation of monitoring report: the CDM Supervisor annually prepares a monitoring report, which includes, among others, a summary of daily and/or monthly operations, metering values of power supplied to and received from the grid, copies of sales/billing invoices, a report on calibration and a calculation of emission reductions. Collection of additional data, sales/purchasing invoices: the CDM Manager collects sales invoices for power delivered to the grid, billing invoices for power delivered from the grid to the hydropower stations and additional data such as the daily operational reports of the SHPs. Calibration: the CDM Manager coordinates his actions with the staff of CPFL Energias Renováveis S.A. to ensure that calibration of the metering instruments is carried out periodically in accordance with regulations of the grid company. O&M Management/CDM Chief Engineer: Daily receives the monitored data. The chief engineer is responsible for sending worksheets with all the monitored data to the supervisor at the end of every month. A Monthly Monitoring Worksheet is generated for each SHPs; O&M Supervisor/CDM Field Staff: Responsible for verifying that the monitored information are being appropriately sent to the Electric Power Commercialization Chamber (Câmara de Comercialização de Energia Elétrica - CCEE). 16

17 In order to ensure accuracy of the monitored data, the CDM Manager receives training on monitoring methodologies, procedures and archiving. Then, the CDM Manager trains the project staff in charge of the CDM monitoring. The training course covers an initial training on CDM, monitoring methodology, monitoring procedures and requirements and archiving. 3. Monitoring Equipment and program The electric energy metering equipment was properly configured and checked against the relevant regulation by both the project owner and the grid company (CCEE) before the project was in operation. Figure 5 presents the measurement topology service and specifies the location of the measuring device for assured energy and the measuring device for the energy supplied to the grid. Figure 5: Simplified wiring diagram It should be noted that EG y corresponds to the quantity of net electricity supplied by the project to the grid in year y, as monitored by the electricity meters located in the interconnection point of the plants with the national grid. As it is possible to see in Figure 5, monitoring of this parameter is performed differently for each SHP: 17

18 For SHP Ninho da Águia, the meters located in Susbstation Maria da Fé measure the net electricity supplied to the grid by this single power plant. For SHPs Barra da Paciência and Corrente Grande, the meters located in Substation Engenheiro Caldas measure the net electricity supplied to the grid by both power plants together. As electricity generated by these two SHPs is dispatched through one single transmission line, it would not be possible to measure net electricity supplied by each of these units to the grid, separately. Therefore, the separation of the quantity of net electricity delivered by each plant to the grid for invoicing purposes and for the calculation of emission reductions is performed by CCEE through a prorating calculation method, which takes into account the gross electricity generation of each plant and the distance between the power plants and the interconnection point with the grid. For SHP Várzea Alegre, the meters located in Substation Lajinha measure the net electricity supplied to the grid by both this power plant and the SHP Varginha (which is not part of this project), together. Similarly, as electricity generated by these two SHPs is dispatched through one single transmission line, it would not be possible to measure net electricity supplied by each of these units to the grid, separately. Therefore, the determination of the quantity of net electricity delivered by SHP Várzea Alegre to the grid for invoicing purposes and for the calculation of emission reductions is performed by CCEE through a prorating calculation method, which takes into account the gross electricity generation of each plant and the distance between the power plants and the interconnection point with the grid. 4. Data Collection: 4.1 Electric data collection In order to guarantee the quality of data from the four SHPs, the measurement configuration follows the Measurement for Invoicing System that is based on regulations of the national electric sector. Monitored data are consolidated by the Chief Engineer monthly. He elaborates a summary worksheet with the monitored data and provides it to the Supervisor, who also verifies the execution of the operational procedures in the monitoring plan. All data should be approved by the Manager before it is accepted and stored. The worksheet containing the monitored data is checked against the sales receipts in order to assure the consistency of the generated energy data. The main monitoring process is as follows: i. CPFL Energias Renováveis S.A. and CCEE read and check the backup meters and the main meters and record the data on the last day of every month; ii. iii. CCEE supplies its readings of the main meters to CPFL Energias Renováveis S.A.. In case there are no significant discrepancies, the steps described below are followed. CPFL Energias Renováveis S.A. records the net electricity supplied to the grid; 18

19 iv. CPFL Energias Renováveis S.A. keeps and stores the records of the main meters data readings for verification by the VVB; The meter reading will be readily accessible to the VVB. Calibration test records are maintained for verification. 4.2 The surface area at full reservoir level data collection The project owner monitors the surface areas of the reservoirs by collecting photographic evidence of the surface level since the project became operational. This photographic evidence is compared with the design reservoir dimensions to confirm whether or not the actual surface area substantially deviates from the design surface area. The surface level of the reservoir was recorded and will be readily accessible to the VVB. The photographic evidence will be maintained for verification. 5. Calibration For approval of the enterprise along with the National Operating System, it is required the presentation of the calibration reports of the measurement devices that comprise the system where each measurement point presents two measurement devices: (i) main measurement device and (ii) first backup measurement device. This first backup is installed in order to guarantee the safety of the system in case the main measurement device fails to operate. This first backup device will automatically substitute the main device and will already be calibrated. The calibration process occurs in two different stages: (i) the equipments are previously calibrated by the manufacturer; (ii) after this when the plant is being tested the measurement devices are once again calibrated on site. The calibration reports are archived together with the monitored data. All the meters installed were tested and calibrated in accordance with regulations provided by CCEE and all the requirements were fulfilled. Moreover if any errors are detected in the main measuring devices, they will be immediately replaced by the backup meter that will be previously calibrated. The damaged measuring device will be repaired, recalibrated and will return to the monitoring system. The calibration certificates of the main and backup meters installed in the interconnection point with the National grid covering the monitored period have been provided to the VVB, as displayed in Table 3. Table 3 Meters calibration certificates during the monitored period Metering Point Meter ID Calibration Certificate Calibration Date SHP Barra da Paciência PT-0909A MW04213/ /Apr/13 SHP Barra da Paciência PT-0912A MW04214/ /Apr/13 SHP Corrente Grande PT-0910A MW04215/ /Apr/13 SHP Corrente Grande PT-0910A MW04216/ /Apr/13 19

20 SHP Ninho da Águia (Substation Maria da Fé) SHP Ninho da Águia (Substation Maria da Fé) 6. Emergency Service Plan MONITORING REPORT: VCS Version 3 Each SHP has an Emergency Service Plan (Plano de Atendimento a Emergências - PEA) that has all emergency procedures related to the operation of the project. The goal of the Plan is to define the actions, the orientations and rights to be met by the sectors involved when any emergency situation or sinister happen, aiming to control the situation and minimize the consequences. Moreover, the Plan also has as a goal the establishment of procedures to care for potential victims of accidents and to provide conditions for their rapid rescue. This plan includes definitions of preventive and emergency actions in various sectors, such as Fire Brigade, Property Surveillance, Control of Operation of the Power Plant and Substation, the Transportation Sector, Safety at Work and Staff in general. To meet these objectives the plan defines the members of the Emergency Brigade and the preventive and emergency actions of each member. For the proper implementation of the Plan, training to all members of the Emergency Brigade is set and simulated exercises are applied. Moreover, the resources needed to maintain this Plan are identified. 7. Data Management PT100A MW05341/ /May/12 PT100A MW05342/ /May/12 SHP Várzea Alegre PT-0905A MW06434/ /jun/13 SHP Várzea Alegre PT-0905A MW06435/ /jun/13 Substation Engenheiro Caldas Substation Engenheiro Caldas PT-0909A MW04198 / /Apr/13 PT-0909A MW04199 / /Apr/13 Substation Lajinha PT-0905A MW06436 / /jun/13 Substation Lajinha PT-0909A MW06437 / /jun/13 Data are archived at the end of each month using electronic spreadsheets. The electronic files are stored on hard disk and CD-ROM. In addition, a hard copy printout is archived. CPFL Energias Renováveis S.A. saves the CCEE monitoring data regarding the power delivered to the grid. At the end of each crediting year, a monitoring report is compiled detailing the metering results and evidence. Physical documentation, such as paper-based maps, diagrams and environmental assessment, are collected in a central place together with the monitoring plan. In order to facilitate the auditor s reference, monitoring results will be indexed. All paper-based information will be stored by the project owner. All data records will be kept for a period of 2 years following the end of the crediting period. 20

21 8. Monitoring Plan The data monitoring is performed by a remote monitoring system, through which all parameters are monitored in real time by the CDM O&M Management in CPFL Energias Renováveis S.A. office, located in São Paulo. At the end of each month, the Chief Engineer sends to the Supervisor a worksheet containing the summary of monitoring data, which is monitored every month. The Supervisor records the worksheet in a specific file. At the end of each year, the Supervisor produces a CD containing the 12 worksheets referent to each month of the year. The emissions reductions are calculated based on values from these worksheets. The monthly worksheets will be archived every month in a specific folder for each SHP and then at the end of every year CDs will be generated compiling all this information (Monitored Data CDs). These CDs will compile 12 Monthly Monitoring Worksheets and will be stored at the headquarters of CPFL Energias Renováveis S.A. in São Paulo by the Supervisor of the Plan in the Sustainability Board. All the monitored information will be stored for a period of two years after each crediting period of the CDM project. 4 QUANTIFICATION OF GHG EMISSION REDUCTIONS AND REMOVALS 4.1 Baseline Emissions Baseline emissions include only CO 2 emissions from electricity generation in fossil fuel fired power plants that are displaced due to the project activity. The methodology ACM0002, version , assumes that all project electricity generation above baseline levels would have been generated by existing grid-connected power plants and the addition of new grid-connected power plants. The baseline emissions are to be calculated as follows: BE y = EG PJ,y * EF grid,cm,y Where: BE y = Baseline emissions in year y (tco 2 /yr); EG PJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr); EF grid,cm,y = Combined margin CO 2 emission factor for grid connected power generation in year y calculated using the latest version of the Tool to calculate the emission factor for an electricity system (tco 2 /MWh). I. Calculation of EG PJ,y : The calculation of EG PJ,y is different for (a) greenfield plants, (b) retrofits and replacements, and (c) capacity additions. Since this relevant project comprises four Greenfield plants, the parameter is calculated as described next: Greenfield renewable energy power plants: 21

22 If the project activity is the installation of a new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to the implementation of the project activity, then: EG PJ,y = EG facility,y Where: EG PJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr); EG facility,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr). II. Calculation of EF grid,cm,y : With the objective of stimulating the contribution, in terms of reduction of CO 2 emissions, of projects that generate energy to the grid, the Brazilian Ministry of Science, Technology and Innovation MCTI calculates the combined margin CO 2 emission factor for grid-connected power generation in year y using the latest version of the Tool to calculate the emission factor for an electricity system, as ACM0002 methodology requires. Briefly, the emission factor of the grid for CDM is a combination of emission factor of operating margin, which reflects the intensity of CO 2 emissions from energy dispatched at the margin, with the emission factor of the margin of construction, which reflects the intensity of CO 2 emissions of the last plants built. It is a widely used algorithm to quantify the contribution of a future power plant that will generate electric power to the grid in terms of reducing CO 2 emissions comparing to a baseline scenario. All the documentation of the calculation method used by MCT as well as the values for the published Emission Factors can be found at MCT webpage: EF grid,cm,y is calculated using the latest version of the Tool to calculate the emission factor for an electricity system. The formula applied follows: EF grid,cm,y = EF grid,om,y * w OM + EF grid,bm,y * w BM Where: EF grid,om,y = EF grid,om-dd,y = CO 2 emission factor determined by the dispatch analysis data of the operating margin in year y (tco 2 /MWh); EF grid,bm,y = build margin CO 2 emission factor in year y (tco 2 /MWh); w OM = weighting of operating margin emission factor (%). w BM = weighting of build margin emission factor (%). Values of parameters used to calculate baseline emissions and the results of the calculations above are displayed in Table 4. 22

23 Table 4 Parameters used to calculate baseline emissions Year EF grid,om,y (tco 2 /MWh) EF grid,bm,y (tco 2 /MWh) w OM w BM EF grid,cm,y (tco 2 /MWh) EG y (MWh/yr) BE y (tco 2 /yr) , , , , , ,376 Total , , Project Emissions For hydro power project activities that result in new single or multiple reservoirs and hydro power project activities that result in the increase of single or multiple existing reservoirs, project proponents shall account for CH 4 and CO 2 emissions from the reservoirs, estimated as follows: (a) if the power density of the single or multiple resorvoirs (PD) is greater than 4W/m 2 and less than or equal to 10W/m 2 : PE!",! = EF!"# TEG! 1000 Where: PE HP,y = emission from the reservoir expressed as tco 2 e/year; EF Res = default emission factor for emissions from the reservoirs, and the default value as per EB23 is 90Kg CO 2 e/mwh; TEG y = Total power produced by project activity, including the energy supplied to the grid and the energy consumed by internal loads, in year y (MWh). (b) If the power density of the project activity (PD) is greater than 10W/m 2 : PE HP,y = 0 The power density of the project activity (PD) is calculated as follows: Cap PD = A PJ PJ Cap A BL BL Where: PD = Power density of the project activity (W/m 2 ) 23

24 Cap PJ = Installed capacity of the hydropower plants after the implementation of project activity (W) Cap BL = Installed capacity of the hydropower plants before the implementation of project activity (W). For new hydro power plants, this value is zero. A PJ = Area of the reservoirs measured in the surface of the water, after the implementation of project activity, when the reservoirs are full (m 2 ) A BL = Area of the reservoirs measured in the surface of the water, before the implementation of project activity, when the reservoirs are full (m 2 ). For new reservoirs, this value is zero. Values of parameters used to calculate the power density during the monitored period and the results of the calculations above are displayed in Table 5. Table 5 Parameters used to calculate project emissions SHP Cap PJ (W) Cap BL (W) A PJ (m 2 ) A BL (m 2 ) PD (W/m 2 ) PE Barra da Paciência 23, , Corrente Grande 14, , Ninho da Águia 10, , Várzea Alegre 7, , Leakage As per ACM0002, no leakage emissions are considered for this project. 4.4 Net GHG Emission Reductions and Removals Emission reductions are calculated as follows: ER y = BE y - LE y - PE y Where: ER y = Emission reductions in year y (tco 2 e/yr) BE y = Baseline emissions in year y (tco 2 e/yr) LE y = Leakage emissions in year y (tco 2 e/yr) PE y = Project emissions in year y (tco 2 e/yr) Table 6 Summary of baseline emissions, project emissions and emission reductions 24

25 Year Baseline emissions or removals (tco 2 e) MONITORING REPORT: VCS Version 3 Project emissions or removals (tco 2 e) Leakage emissions (tco 2 e) Net GHG emission reductions or removals (tco 2 e) , , , , , ,376 Total 106, ,863 25